Truist Financial (TFC) Q2 2026 earnings summary

Executive summary

• Net income available to common shareholders was $1.5 billion, with EPS of $1.23, up 37% year-over-year, driven by higher fee income, strong credit performance, and capital return to shareholders.

• Announced leadership transition: Mike Lyons to become CEO on September 1, with Bill Rogers moving to executive chair until April 2027 retirement.

• Returned $1.8 billion to shareholders via dividends and share repurchases; payout ratios were 42% (dividend) and 121% (total).

• Strategic focus on profitability, efficiency, and capital allocation, with deliberate trade-offs in growth for higher returns.

• Strong progress in building a more earnings- and capital-efficient company, with improved profitability and returns.

Financial highlights

• Q2 2026 net income available to common shareholders was $1.5 billion, or $1.23 per diluted share, up 37% year-over-year.

• Revenue increased 5.5% year-over-year and 2.2% sequentially, driven by higher non-interest income.

• Noninterest income rose 17% year-over-year, led by investment banking, trading, and wealth management.

• Noninterest expense increased 2.3% year-over-year, mainly due to higher personnel costs.

• Asset quality remained strong: NPLs at 0.51% of loans, ALLL at 1.51% of loans.

Outlook and guidance

• 2026 revenue growth outlook revised to 3.5%-4%, with net interest income growth now expected at 1%-1.5%.

• Non-interest income growth outlook raised to ~10% for 2026.

• Non-interest expense growth expected at 1.75%, net charge-offs at 55 basis points, and effective tax rate at 14.5%.

• Share buybacks targeted at $5 billion for 2026.

• ROTCE expected to reach or exceed 15% for 2026 and 16–18% long-term.