Truist Financial (NYSE:TFC) Announces Earnings Results

Truist Financial (NYSE:TFC) posted its earnings results on Friday. The insurance provider reported $1.16 earnings per share for the quarter, missing the consensus estimate of $1.17 by ($0.01), FiscalAI reports. Truist Financial had a net margin of 19.13% and a return on equity of 10.06%. The firm had revenue of $5.30 billion for the quarter, compared to analysts’ expectations of $5.35 billion. During the same period last year, the firm earned $1.04 earnings per share. Truist Financial’s revenue for the quarter was up 1.3% compared to the same quarter last year.

Here are the key takeaways from Truist Financial’s conference call:

• Adjusted third-quarter EPS rose 12% year over year to $1.16, while adjusted ROTCE improved 100 basis points to 14.6%. Deposit growth, wealth management performance and expense control exceeded or met expectations.
• Truist completed the $5.5 billion RAC auto-loan sale and agreed to sell $7.7 billion of LightStream loans, reducing credit risk and wholesale funding needs. Management said the transactions are expected to improve capital efficiency, tangible book value and future EPS/ROTCE, although they will reduce near-term net interest income.
• CEO Mike Lyons outlined a strategy centered on relationship-based consumer and wholesale banking, including stronger branch, digital, payments, treasury management, wealth and commercial-lending capabilities. Truist is conducting a company-wide review to redirect capital and expenses toward strategic businesses, with further details expected in early 2027.
• Average loans declined 1.1% sequentially as Truist reduced lower-return lending and experienced higher paydowns, while investment banking revenue was delayed by market volatility. The bank expects fourth-quarter net interest income of $3.65 billion to $3.7 billion, including a roughly $125 million impact from the RAC sale.
• Management reiterated its target for 15% ROTCE in 2027 and 16%–18% over the long term, alongside expectations for 3%–4% 2026 average loan growth excluding the RAC and LightStream sales. Truist also plans approximately $1 billion of fourth-quarter share repurchases while preserving a strong through-the-cycle capital position.

Truist Financial Stock Up 1.3%

TFC stock opened at $47.17 on Friday. The firm has a 50 day simple moving average of $49.17 and a 200-day simple moving average of $49.61. Truist Financial has a twelve month low of $41.60 and a twelve month high of $56.19. The company has a market capitalization of $57.62 billion, a P/E ratio of 10.40, a PEG ratio of 1.03 and a beta of 0.92. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.73.

Truist Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Friday, August 14th were given a dividend of $0.52 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $2.08 annualized dividend and a yield of 4.4%. Truist Financial’s payout ratio is 47.71%.

Insider Activity

In other Truist Financial news, Director K. Boyer, Jr. sold 3,986 shares of the business’s stock in a transaction dated Thursday, July 23rd. The shares were sold at an average price of $50.70, for a total transaction of $202,090.20. Following the sale, the director directly owned 10,270 shares in the company, valued at approximately $520,689. The trade was a 27.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Michael Lyons bought 21,000 shares of Truist Financial stock in a transaction that occurred on Thursday, September 17th. The shares were acquired at an average price of $48.36 per share, with a total value of $1,015,560.00. Following the completion of the acquisition, the chief executive officer directly owned 21,000 shares of the company’s stock, valued at $1,015,560. This represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders sold 30,516 shares of company stock worth $1,584,428. 0.15% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. HSBC initiated coverage on shares of Truist Financial in a report on Monday, September 28th. They set a “buy” rating and a $61.00 target price for the company. TD Cowen initiated coverage on Truist Financial in a report on Thursday, October 8th. They set a “hold” rating and a $52.00 price target for the company. Citigroup lowered Truist Financial from a “buy” rating to a “neutral” rating and decreased their target price for the stock from $63.00 to $54.00 in a research note on Tuesday, June 30th. UBS Group cut their price objective on shares of Truist Financial from $55.00 to $50.00 and set a “neutral” rating on the stock in a report on Monday, October 5th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Truist Financial in a research report on Wednesday, July 29th. Seven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $54.39.

About Truist Financial

Truist Financial Corporation (NYSE:TFC) is a financial services company headquartered in Charlotte, North Carolina. Through its principal banking subsidiary, Truist Bank, the company provides a broad range of financial products and services to consumers, small businesses, commercial clients, and institutional customers.

Its offerings include deposit accounts, consumer and small-business lending, mortgages, credit cards, payments, treasury management, commercial and corporate banking, investment banking, wealth management, and asset management.