logo

Truist reports second quarter 2025 results

Cision Canada2 days ago
CHARLOTTE, N.C., July 18, 2025 /CNW/ -- Truist Financial Corporation (NYSE: TFC) reported its second quarter 2025 results today. Investors can access the live second quarter 2025 earnings call at 8 a.m. ET today by webcast or dial-in as follows:
The earnings release, investor presentation, including an appendix reconciling non-GAAP disclosures, and Truist's Second Quarter 2025 Quarterly Performance Summary, which contains detailed financial schedules, are available at Truist's Investor Relations website at https://ir.truist.com/earnings. A replay of the call will be available on the website for 30 days.
About Truist
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Headquartered in Charlotte, North Carolina, Truist has leading market share in many of the high-growth markets in the U.S. and offers a wide range of products and services through wholesale and consumer businesses, including consumer and small business banking, commercial and corporate banking, investment banking and capital markets, wealth management, payments, and specialized lending businesses. Truist is a top-10 commercial bank with total assets of $544 billion as of June 30, 2025. Truist Bank, Member FDIC. Learn more at Truist.com.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

U.S. Bancorp Posts 14% Q2 EPS Growth
U.S. Bancorp Posts 14% Q2 EPS Growth

Globe and Mail

time5 hours ago

  • Globe and Mail

U.S. Bancorp Posts 14% Q2 EPS Growth

Key Points - GAAP earnings per share of $1.11 topped the analyst estimate of $1.07 in Q2 2025, a 3.7% GAAP beat. - Revenue (GAAP) came in at $7.004 billion, slightly under the $7.05 billion GAAP estimate. - The company posted positive year-over-year operating leverage in the second quarter, increased fee income, and steady credit quality. These 10 stocks could mint the next wave of millionaires › U.S. Bancorp (NYSE:USB), a national banking institution offering a broad range of financial services, released its second quarter 2025 results on July 17, 2025. The company reported GAAP earnings per share of $1.11, outperforming the analyst consensus of $1.07. However, revenue (GAAP) was $7.004 billion, marginally below expectations of $7.05 billion (GAAP) revenue. The quarter demonstrated higher-than-expected profitability, due mainly to cost discipline and a mix of higher fee-based income, while overall revenue growth remained modest compared to the prior year. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (GAAP, Diluted) $1.11 $1.07 $0.97 14.4% Revenue (GAAP) $7.00 billion $7.05 billion $6.87 billion 1.9% Net Interest Income (Taxable-Equivalent Basis) $4.08 billion $4.05 billion 0.7% Noninterest Expense $4.18 billion $4.214 billion (0.8%) Return on Tangible Common Equity (%) 18.0 18.4 (0.4) pp Source: Analyst estimates for the quarter provided by FactSet. Business Overview and Recent Strategic Focus U.S. Bancorp is a diversified financial services company with operations spanning consumer and business banking, wealth management, payment services, and corporate banking. It serves consumers, businesses, and institutions across the United States, offering everything from standard checking accounts to treasury services for large companies. Recently, the company has focused on improving operational efficiency, investing in digital banking, and expanding its payments and wealth management services. These efforts are shaped by changing customer expectations, regulatory requirements, and rapid shifts in technology that impact banking and payments activities. Core success factors for the company include maintaining strong risk and capital controls, growing noninterest (fee) income, and investing in technology to stay ahead of both traditional and new financial technology competitors. Notable Developments and Drivers in the Quarter During the quarter, U.S. Bancorp showed improvement in several financial performance areas, most notably in earnings per share and efficiency. Net income (GAAP) rose to $1.815 billion, an increase of 13.2% compared to the same period last year. Fee income businesses—including payment services, trust and investment management fees, and treasury management fees—now represent approximately 42% of company-wide revenue. This broad-based growth in fees was driven by merchant processing services (up 4.4%), card revenue (up 3.3%), and trust and investment management fees (up 8.3%). Net interest income, which measures the difference between what a bank earns on loans and pays out on deposits, increased by 0.7%. However, the net interest margin—a key ratio showing profitability on banking assets—edged down to 2.66%. This drop was caused by higher competition for customer deposits and shifts toward products with higher yields. The bank also benefited from tight expense control, cutting its noninterest expenses by 0.8% year-over-year. This was achieved while making investments in technology and digital service platforms. Return on tangible common equity, a non-GAAP measure of shareholder profitability, was relatively stable at 18.0%. Looking at loan and deposit balances, average total loans grew by 1.0% year over year, while deposits declined by 2.1%. Growth in commercial and card loans partially offset ongoing weakness in commercial real estate and residential mortgage portfolios. Deposit declines were most pronounced in wealth and corporate banking, showing a challenging deposit-gathering environment. Credit quality metrics remained stable. Provisions for credit losses fell slightly as nonperforming assets declined to 0.44% of loans and other real estate. The allowance for credit losses was $7.86 billion, or 2.07% of loans. Although the ratio of net charge-offs—a measure of bad loans written off—remained flat at 0.59%, management noted a rise in loans past due by over 90 days, mostly due to administrative factors and disaster-related delays rather than underlying credit deterioration. Products, Segment Results, and Key Initiatives The Payment Services segment, covering merchant processing and card payment solutions, was a highlight this quarter. Merchant processing—services that enable businesses to accept card payments—handled $576 billion in annual global transaction volume, as reported by Elavon, U.S. Bank's merchant services payment provider, solidifying its role as a top-five merchant acquirer in the country. Initiatives included expanding Elavon, the company's payment processing unit, and integrating new card services through industry partnerships. The Consumer & Business Banking segment, providing checking, lending, and savings products, saw net income decrease 6.9% (GAAP), but achieved a sequential gain. Business banking, corporate, and institutional clients are served through products such as corporate lending and treasury management. Profit from these operations declined 7.2% compared to Q2 2024. The Payment Services segment delivered a 12.5% increase in net income. Treasury and Corporate Support, which houses activities not attributed to other segments, reported a reduced net loss from the previous year. The company also highlighted the first fully digital, blockchain-based trade finance transaction by a U.S. bank, indicating growing investment in digital-first banking. From a balance-sheet perspective, the Common Equity Tier 1 (CET1) capital ratio remained strong at 10.7%. This is a regulatory metric that measures the bank's core capital strength, important for navigating potential stress in financial markets. Management continued limited share buybacks and maintained share dividends, with a declared quarterly dividend of $0.50 per share, compared to $0.49 per share in Q2 2024. The company continues to prioritize prudent capital management due to evolving regulations and market risks. The quarter contained no material one-time items, but ongoing cost optimization—including real estate, automation, and back-office structure—remained a priority as revenue growth remains moderate. Looking Ahead: Management Guidance and Areas to Watch For FY2025, management reiterated guidance of 3% to 5% adjusted net revenue growth, with positive operating leverage of more than 200 basis points for the full year, as adjusted. Leadership projects mid-single-digit fee income growth. The company aims to achieve a medium-term net interest margin above 3% by 2026 or 2027, depending on market conditions. Leadership cautioned that revenue growth may lean heavily on stabilization or improvement of net interest margins and loan growth as the interest rate environment evolves. Key watch points for upcoming quarters include the trajectory of deposit and loan balances, success of fee-generating businesses like payment services, and the impact of ongoing investments in technology. Management's disciplined expense approach gives it flexibility to match costs with any future shifts in revenue. While dividend payouts and share repurchases remain part of the long-term plan, immediate increases in capital return depend on regulatory outcomes and the broader economic outlook. The quarterly dividend was $0.50 per share, compared to $0.49 per share in Q2 2024. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,048%* — a market-crushing outperformance compared to 180% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of July 14, 2025

1 Incredible Reason to Buy UPS Stock Before July 29
1 Incredible Reason to Buy UPS Stock Before July 29

Globe and Mail

time13 hours ago

  • Globe and Mail

1 Incredible Reason to Buy UPS Stock Before July 29

Key Points Based on the company's existing guidance (pre-tariff announcements), its free cash flow in 2025 will barely cover its dividend payment. The market appears to be implying considerable doubt about the sustainability of the dividend. Cutting the dividend could be a catalyst for stock outperformance. 10 stocks we like better than United Parcel Service › Should you buy stock in a company with a good chance of missing its full-year guidance and one that could cut its much-admired dividend (currently yielding 6.6%)? Usually, that's the last thing investors should want to do. But in the case of UPS (NYSE: UPS) and its upcoming second-quarter earnings announcement on July 29, it makes sense. Here's why. The market doesn't believe UPS will sustain the dividend UPS's dividend yield is 6.6%, and the 10-Year Treasury yield is about 4.5%. Outside of the COVID-19-led crash in 2020, there's never been a period when the spread between UPS yield and the risk-free rate was this high. Data by YCharts This is the market's way of indicating that it believes the dividend is at risk and may well be cut. A silver lining But here's the thing: A dividend cut might just be what the company needs. As previously articulated, UPS has excellent underlying growth prospects from investing in its healthcare, and small and medium-sized business revenue. In addition, the plan to reduce low or even negative margin deliveries for Amazon by 50% from the start of 2025 to mid-2026 makes perfect sense for a company focused on maximizing profitability in its network. It would free up cash for investment in these activities, as well as ongoing investments in technology to improve its network -- they could even be accelerated. It would also reduce the uncertainty surrounding the stock and encourage investors to focus on its growth opportunities, rather than stressing about the sustainability of its dividend. As counterintuitive as it may sound, if UPS is forced to cut its full-year guidance over concerns about raised tariffs and trade conflicts, then reducing the dividend could be a positive move; and investors should, at the least, monitor events closely even if they don't plan on buying in before the earnings report. Should you invest $1,000 in United Parcel Service right now? Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and United Parcel Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025

US Bancorp (USB) Receives a Rating Update from a Top Analyst
US Bancorp (USB) Receives a Rating Update from a Top Analyst

Globe and Mail

time16 hours ago

  • Globe and Mail

US Bancorp (USB) Receives a Rating Update from a Top Analyst

RBC Capital analyst Gerard Cassidy maintained a Buy rating on US Bancorp yesterday and set a price target of $50.00. The company's shares closed yesterday at $45.21. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Cassidy is a top 25 analyst with an average return of 21.0% and a 71.60% success rate. Cassidy covers the Financial sector, focusing on stocks such as JPMorgan Chase, M&T Bank, and Morgan Stanley. In addition to RBC Capital, US Bancorp also received a Buy from Piper Sandler's Scott Siefers in a report issued today. However, on the same day, KBW maintained a Hold rating on US Bancorp (NYSE: USB). USB market cap is currently $71.17B and has a P/E ratio of 10.82. Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of USB in relation to earlier this year.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store