Truist Financial Corporation

Truist reported Q2 2026 GAAP net income available to common shareholders of $1.5 billion, or $1.23 per diluted share, up 37% versus Q2 2025 and up 13% versus Q1 2026. Revenue increased 5.5% year over year and 2.2% sequentially, while non-interest expense rose 2.3% year over year and 2.4% sequentially. Return on tangible common equity was 15.4%, up 310 basis points year over year, and CET1 was 10.9%, up 10 basis points sequentially. For Q3 2026, management expects revenue up about 1% versus Q2 revenue of $5.3 billion, NII up about 1.5%, non-interest income roughly stable, and expense up about 2%. For full-year 2026, management now expects revenue growth of 3.5%-4%, NII growth of 1%-1.5%, non-interest income growth of about 10%, GAAP expense growth of 1.75%, net charge-offs of 55 basis points, an effective tax rate of 14.5%, and about $5 billion of share buybacks.

Bill Rogers framed the quarter as evidence that Truist’s strategy is working: the bank is intentionally shifting away from lower-return businesses and toward more efficient growth, stronger profitability, and better capital allocation. He emphasized that the company is making trade-offs in some loan categories, but said those choices are improving earnings efficiency and setting the stage for higher-quality growth over time. His tone was confident and forward-looking, and he repeatedly tied the results to the planned leadership transition to Mike Lyons.

Mike Maguire focused on the mechanics behind the updated outlook. He said the NII guide was lowered because of three main headwinds: lower loan spreads from portfolio remixing and market compression, a less favorable deposit mix with more rate-seeking behavior, and reduced production in less strategic consumer portfolios; offsetting that is some benefit from higher medium- and long-term rates. He cited average loans of $329 billion, average deposits up 1.5% linked-quarter, net interest margin of 2.98%, net charge-offs of 50 basis points, provision for credit losses of $395 million, and allowance for loan losses of 1.51% of total loans. He also noted $1.2 billion of Q2 buybacks, a CET1 ratio of 10.9%, and a continued target of roughly $5 billion of repurchases in 2026.

Analysts pressed on the trade-off between loan growth and return optimization, asking how much portfolio rationalization is embedded in guidance and whether more could follow. Management said the current outlook already reflects the exit of marine/recreation vehicle lending and the lower production in prime auto and other consumer portfolios, but also stressed that additional capital optimization remains possible across both consumer and wholesale. Questions also centered on deposit competition, loan spread pressure, swap timing, and whether the new CEO would drive a larger strategic shift; management answered that the deposit issue is more about client behavior than pure competition, that spreads are likely down 5-10 basis points year over year, and that Mike Lyons is expected to add intensity rather than overturn the company’s direction.