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Investing.com -- On Friday, Truist Financial Corporation (NYSE:TFC) reported third quarter 2025 earnings that exceeded analyst expectations, driven by robust fee income growth and healthy loan expansion.
The bank’s shares gained 4.41% in pre-market trading after the announcement.
The Charlotte-based bank reported net income available to common shareholders of $1.35 billion, or $1.04 per diluted share, compared to the analyst estimate of $0.99 per share. Total revenue increased to $5.24 billion on a taxable-equivalent basis, up 4.0% from the previous quarter.
Noninterest income surged 11.3% quarter-over-quarter to $1.56 billion, primarily due to a 57.6% jump in investment banking and trading income and a 7.5% increase in wealth management income. This strong fee performance helped offset relatively flat net interest income, which increased just 1.2% to $3.68 billion.
"Truist delivered strong third-quarter results, underscored by robust fee income growth in investment banking and trading and wealth, healthy loan expansion, and continued expense and credit discipline," said Bill Rogers, Truist Chairman & CEO.
Average loans held for investment grew $7.9 billion, or 2.5%, compared to the previous quarter, reflecting broad-based loan growth across commercial and consumer portfolios. The bank’s asset quality remained solid, with the net charge-off ratio improving to 0.48% from 0.51% in the prior quarter.
Truist maintained its strong capital position with a CET1 ratio of 11.0%. During the quarter, the bank repurchased $500 million in common shares and declared a quarterly dividend of $0.52 per share, resulting in a dividend payout ratio of 50% and a total payout ratio of 87%.
The bank’s efficiency ratio improved to 55.7% on an adjusted basis, down from 57.1% in the second quarter, as expense management initiatives continued to yield results despite a 0.9% increase in noninterest expense.
Looking ahead, Truist emphasized its focus on executing its growth strategy, supported by its strong capital position and investments in talent and technology.