Truist Financial Corp. (NYSE:TFC) shares are climbing Friday. The Charlotte-based bank delivered second-quarter earnings beat that showed broad-based improvement across fee income and capital returns. Here’s what you should know.
- Truist Financial shares are trending higher. Why are TFC shares climbing?
Truist Tops Estimates as Earnings Jump 35% Year-Over-Year
The bank earned $1.23 per diluted share in the second quarter, clearing the analyst consensus of $1.08 by nearly 14% and representing a 35% improvement from the 90 cents per share delivered in the same period last year. Revenue of $5.27 billion edged past the $5.24 billion consensus estimate and came in 4.67% above the year-ago figure.
Fee Income and Loan Growth Drive the Outperformance
Total noninterest income climbed to $1.64 billion, a 17% jump from the second quarter of 2025, driven by a surge in investment banking and trading revenue which more than doubled year-over-year to $352 million.
Wealth management income grew 7.8% from a year ago to $375 million as assets under management continued to expand. Average loans and leases held for investment grew to $329.2 billion, up $2.1 billion from the prior quarter, fueled primarily by commercial and industrial loan growth. Average deposits expanded $5.9 billion, or 1.5%, from the first quarter reflecting gains in interest checking accounts.
Capital Returns Remain Strong
Truist returned $1.8 billion to shareholders during the quarter through a combination of $1.2 billion in common stock repurchases and 52 cents per share in dividends. The common equity tier 1 ratio rose 10 basis points to 10.9% as earnings generation and a reduction in risk-weighted assets more than offset the capital returned. Return on average tangible common equity improved to 15.4% from 13.8% in the first quarter and 12.3% a year earlier.
The bank also announced that Mike Lyons will take over as chief executive in September.
Guidance and Outlook
For the third quarter Truist is guiding for revenue of approximately $5.35 billion, just below the analyst estimate of $5.38 billion. For the full year the bank widened its revenue outlook to a range of $21.22 billion to $21.32 billion, bracketing the prior consensus estimate of $21.28 billion.
TFC Shares Are Rising
TFC Price Action: Truist shares were up 0.56% at $53.55 at the time of publication on Friday, according to Benzinga Pro.
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