Key financial results
- Net Income: Truist reported GAAP net income available to common shareholders of $684 million, or $0.56 per diluted share, for the third quarter of 2026.
- Strategic Items: Reported earnings per share were impacted by a net $0.60 per share from strategic actions, including $0.90 per share of losses from an AFS securities repositioning and $0.06 per share of RAC-related costs and losses, partially offset by a $0.36 per share benefit from a RAC-related reserve release.
- Adjusted EPS: Excluding strategic items, adjusted EPS was $1.16 per share, representing a 12% increase versus the third quarter of 2025.
Excluding these items, adjusted EPS was $1.16 per share, which is up 12% versus the third quarter of 2025.
- ROTCE: Adjusted ROTCE was 14.6%, representing a 100 basis point improvement from the third quarter of 2025, driven by higher earnings and continued capital return.
- Net Interest Income: Taxable equivalent net interest income increased $40 million or 1.1% linked quarter to $3.7 billion, driven by fixed rate asset repricing and one additional day, offset by lower loan balances.
- Net Interest Margin: Net interest margin increased 2 basis points linked quarter to 3%, driven by fixed rate asset repricing and a slightly smaller balance sheet.
Business segment results
- Wealth Management: Wealth Management performed ahead of plan, delivering $407 million in wealth management income, representing the best quarter ever in wealth, driven by favorable equity market performance.
Third quarter wealth management income of $407 million represents our best quarter ever in wealth.
- Investment Banking: Investment banking and trading income declined by $28 million due to lower trading and M&A activity, which was partially offset by stronger equity and debt capital markets activity.
- Card and Treasury Management: Card and treasury management fees declined modestly linked quarter, primarily reflecting weakness in merchant services where management recently launched a new partnership aimed at improving performance.
- Wholesale Banking: Wholesale banking average loans and volumes were impacted by management's sharper focus on risk-adjusted returns and elevated paydowns in certain industry portfolios.
- Consumer Lending: Consumer lending volumes reflected deliberate reductions in prime auto and marine/RV originations as part of the strategic portfolio reshaping.
- Segment Profit: Management did not give detailed segment profit figures for all individual operating units on the call.
Capital allocation
- RAC Sale: Truist completed the sale of its $5.5 billion RAC auto loan portfolio at the end of the third quarter, receiving net proceeds of $5.2 billion that were used to reduce borrowings.
We completed the previously announced sale of our $5.5 billion RAC auto loan portfolio at the end of the third quarter and have exited that business.
- AFS Repositioning: The RAC sale generated approximately $1 billion or 23 basis points of CET1 capital, which was utilized to reposition a portion of the AFS securities portfolio by selling $8.6 billion of lower-yielding Agency MBS and purchasing $7.2 billion of investment securities yielding approximately 5.6%.
- LightStream Sale: Truist signed an agreement to sell $7.7 billion of loans representing substantially all of the assets of LightStream, a national provider of direct unsecured personal loans, expected to close in the fourth quarter and generate $850 million of CET1 capital.
We have signed an agreement to sell $7.7 billion of loans representing substantially all of the assets of LightStream
- Capital Return: The company returned $1.8 billion of capital to shareholders during the quarter through a $632 million common dividend and $1.2 billion in share repurchases.
- CET1 Ratio: The CET1 ratio declined 20 basis points linked quarter to 10.7%, driven by capital returns and the AFS securities repositioning, partially offset by earnings and the RAC loan sale.
Industry trends and dynamics
- Market Conditions: Management observed broader market volatility that caused some investment banking revenue to be pushed out late in the quarter.
- Deposit Trends: Client deposit growth remained strong across the industry and within Truist, driven by client deposit balances, particularly in the wholesale segment.
Competitive landscape
- Competitive Position: Management stated that Truist has all the raw materials to become one of the country's top-performing banks but has fallen short of its potential and merger financial goals over the last several years.
We have all the raw materials to become one of the country's top-performing bank, and this is our overwhelming #1 objective.
- Wholesale Franchise: Wholesale banking benefits from an exceptional full-service franchise offering Wall Street capabilities, industry vertical expertise, and a top 10 balance sheet combined through a community-based model.
Macroeconomic environment
- Interest Rates: The interest rate environment and market conditions influenced fourth-quarter capital return plans and securities repositioning strategies.
- Volatility: Management noted general market volatility affecting deal flow and advisory pipelines late in the third quarter.
Growth opportunities and strategies
- Strategy Framework: The strategic framework focuses on simplifying, focusing, executing, and growing by narrowing attention to relationship-based businesses where Truist is competitively advantaged.
Going forward, we are clear on and committed to a strategy which narrows our focus to relationship-based businesses where we are competitively advantaged
- CSBB Growth: In Consumer and Small Business Banking (CSBB), the strategy prioritizes winning the demand deposit account (DDA) of every client across the branch footprint through enhanced service, technology, and trusted advice.
- Wholesale Growth: In wholesale, growth opportunities include expanding sales teams in middle market banking, rates and FX, brokerage, wealth advisory, and treasury management.
- Talent Addition: Truist added over 40 bankers to its commercial middle market business as part of its investment-led growth strategy in wholesale.
Financial guidance and outlook
- Q4 Revenue Guidance: For the fourth quarter of 2026, Truist expects total revenue of approximately $5.35 billion, reflecting net interest income of $3.65 billion to $3.7 billion and 5% linked-quarter growth in adjusted noninterest income.
- Q4 Expense Guidance: Reported noninterest expense is expected to increase approximately 2.5% linked quarter compared to the reported third-quarter expense of $3.1 billion.
- Q4 Credit Guidance: Net charge-offs are expected to be 45 basis points in the fourth quarter, reflecting normal seasonal trends.
- Q4 Tax and Buyback Guidance: The fourth-quarter outlook assumes an effective tax rate of 13.5%, an FTE tax rate of 15.5%, and share repurchases of approximately $1 billion.
- Long-Term Targets: Management reaffirmed its commitment to deliver on return on tangible common equity (ROTCE) targets of 15% in 2027 and 16% to 18% over the long term.
We remain committed to delivering on our ROCE targets which includes 15% in 2027 and 16% to 18% over the long term.
Leadership changes and organizational structure
- Steve Boland Appointment: Steve Boland will join Truist as Vice Chair, bringing more than 3 decades of consumer banking experience, including as former President of Retail Banking at Bank of America.
- Shim Samir Appointment: Shim Samir will move from leading Wealth Management to become Chief Consumer Banking Officer to focus on growing deposits and managing large-scale consumer operations.
- Jeff Warner Appointment: Jeff Warner will join Truist to lead small business banking, bringing over 25 years of business and corporate banking experience.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Diluted EPS (GAAP) | $0.56 per share | Not stated |
| Adjusted EPS | $1.16 per share | Up 12% versus Q3 2025 |
| Adjusted ROTCE | 14.6% | Up 100 bps versus Q3 2025 |
| Taxable Equivalent Net Interest Income | $3.7 billion | Up 1.1% linked quarter |
| Net Interest Margin | 3% | Up 2 bps linked quarter |
| Adjusted Noninterest Expense | $3.1 billion | Up 0.3% linked quarter |
How management sounded
Cautious (+5 on our -100 to +100 scale). Management expressed optimism about the long-term opportunity and a great foundation, but acknowledged historical underperformance and the need for significant strategic review and restructuring. Management sounded more upbeat than on 1% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- The closing of the LightStream loan portfolio sale expected during the fourth quarter.
- The completion of the strategic review by the end of the year and the updated 2027 outlook in early 2027.
- Execution of branch network modernizations and deposit growth initiatives.
Earlier calls
- Q2 2026 (Jul 17, 2026), tone Balanced: Truist reported net income of $1.5 billion or $1.23 per share for the second quarter of 2026, driven by higher fee income and strict expense discipline.
