Truist — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported diluted EPS of $0.56, down from $1.04 in 3Q25 and $1.23 in 2Q26; adjusted diluted EPS was $1.16, up 12% compared to 3Q25.
• Total revenue was $3.75 billion, down from $5.19 billion in 3Q25 and $5.27 billion in 2Q26; adjusted revenue (TE) was $5.3 billion, stable compared to 2Q26.
• Net interest income was $3.66 billion, up 1% from 3Q25 and up 1% from 2Q26; net interest income (TE) was $3.71 billion.
• Net interest margin (TE) was 3.00%, up two basis points from 2Q26 and stable compared to 3Q25.
• Noninterest income was $0.08 billion, significantly impacted by a $1.4 billion loss on AFS securities sales and $66 million loss on RAC loan sale; adjusted noninterest income was $1.597 billion.
• Noninterest expense was $3.11 billion, up from $3.01 billion in 3Q25 and $3.06 billion in 2Q26; adjusted noninterest expense was $3.065 billion.
• Net income was $0.80 billion, down from $1.45 billion in 3Q25 and $1.55 billion in 2Q26; adjusted net income available to common shareholders was $1.42 billion.
• Provision for credit losses was a benefit of $253 million, compared to a provision of $395 million in 2Q26 and $436 million in 3Q25, driven by a $581 million reserve recapture related to the RAC loan sale.
• Net charge-offs were $629 million, up from $385 million in 3Q25 and $414 million in 2Q26; NCO ratio was 0.77%, up from 0.48% in 3Q25.
• Return on average common equity (ROCE) was 4.7%, down from 9.0% in 3Q25 and 10.4% in 2Q26; adjusted ROTCE was 14.6%.
• Efficiency ratio was 82.9%, up from 58.1% in 3Q25 and 58.0% in 2Q26.
• Average assets were $550 billion; average loans and leases were $325.5 billion, down 1.1% from 2Q26.
• Average deposits were $410.7 billion, up 1.4% from 2Q26; end-of-period deposits were $413.2 billion, up 0.9% from June 30, 2026.
• Allowance for loan and lease losses (ALLL) ratio was 1.25%, down 26 basis points from 1.51% in 2Q26.
• Common Equity Tier 1 (CET1) ratio was 10.7%, down 20 basis points from 10.9% in 2Q26; leverage ratio was 9.6%.

Guidance and Future Outlook

• Management expressed confidence in delivering against near- and long-term ROTCE targets.
• Stated commitment to simplifying the company and reallocating resources to drive stronger growth, profitability, and returns.
• No specific numerical forward guidance for revenue, EPS, or capital ratios was provided in the release.

Business Segments and Product Lines

• Completed the sale of Regional Acceptance Corporation (RAC) loans and subsequent AFS securities repositioning.
• Signed an agreement on October 14, 2026, to sell $7.7 billion of unsecured consumer loans representing substantially all assets of LightStream to Carlyle Group Inc.
• Wealth management income increased to $407 million, up 8.5% from 2Q26 and 8.8% from 3Q25, reflecting favorable market performance.
• Investment banking and trading income decreased to $324 million, down 8.0% from 2Q26, primarily due to lower trading income.
• Average commercial loans decreased 1.1%, driven by a decline in the commercial and industrial portfolio.
• Average consumer loans decreased 1.1%, driven by a decline in the indirect auto portfolio impacted by the RAC loan sale, partially offset by an increase in residential mortgages.
• End-of-period loans and leases held for investment (HFI) were $323.9 billion, down $5.9 billion from June 30, 2026.

Market and Competitive Landscape

• Truist is a top-10 commercial bank with total assets of $554 billion as of September 30, 2026.
• The company maintains leading market share in many high-growth U.S. markets.
• Asset quality improved following the RAC loan sale, with nonperforming loans to total loans HFI at 0.40%, down 11 basis points from 2Q26.
• Nonperforming assets totaled $1.3 billion, down $410 million from June 30, 2026.

Risks and Challenges

• Significant one-time losses impacted results: $1.4 billion pre-tax loss on AFS securities sales and $66 million pre-tax loss on RAC loan sale.
• Net charge-offs increased to $629 million, including $251 million in charge-offs upon transfer of RAC loans to loans held for sale.
• The release cites numerous forward-looking risks including changes in monetary/fiscal policies, economic deterioration, cybersecurity threats, regulatory changes, and the ability to manage credit risk and funding costs.

Management Commentary and Tone

• Mike Lyons, President & CEO, stated the quarter was "solid" and highlighted decisive actions to better position Truist for the future.
• Management emphasized simplifying the company and focusing resources on businesses that will help become the "most important financial partner to our clients."
• The tone was confident regarding the franchise's strength and the ability to deliver sustainable growth and stronger returns.

Other Key Points

• Declared common dividends of $0.52 per share for the third quarter of 2026.
• Repurchased $1.2 billion of common stock during the quarter.
• Average consolidated Liquidity Coverage Ratio (LCR) was 110% for the three months ended September 30, 2026.
• Effective tax rate was 10.7%, down from 16.4% in 3Q25, primarily driven by lower income before tax from AFS securities repositioning.
• The release includes reconciliations for non-GAAP measures such as adjusted net income, adjusted EPS, and adjusted ROTCE.