Truist Financial Corp Q1 EPS Up 25% with Record Trading Revenue, NII Outlook Cut
Truist Financial Corp reported Q1 EPS rose 25% year-over-year driven by consumer and wholesale loan growth and record investment banking and trading revenue, the highest since 2021. The bank cut its 2026 net interest income growth outlook to 2-3% from 3-4% and saw 9% loan and 2% deposit growth.
1. Q1 Earnings Performance
Truist Financial Corp posted Q1 EPS growth of 25% year-over-year, driven by broad-based non-interest income and record quarterly investment banking and trading revenue, the highest since 2021. Digital share of new-to-bank clients increased to 45%, with Gen-Z and millennials accounting for over half of new customer growth.
2. Net Interest Income Outlook
The bank lowered its 2026 net interest income growth forecast to 2-3% from 3-4%, reflecting expectations of a stable federal funds rate and liability-sensitive positioning on short-term deposits. Competitive deposit pricing also pressured the outlook.
3. Loan, Deposit Growth and Credit Quality
Average loan balances in the wholesale segment rose 9% year-over-year while deposits grew 2%, led by diversified expansion across industry banking, middle market, and commercial real estate teams. Non-performing loans held for investment increased due to a change in non-accrual criteria rather than underlying credit deterioration.
4. Capital Management and Future Targets
Truist raised its 2026 share repurchase authorization to $5 billion to support capital return while targeting a 10% Common Equity Tier 1 ratio by 2027. Management also set long-term ROTCE targets of 16-18% and expects ROA to approach 1.20% by 2027.