TFC Q3 Deep Dive: Strategic Investments, Digital Expansion, and Capital Return Shape Outlook

Financial services company Truist Financial (NYSE:TFC) reported Q3 CY2025 results exceeding the market’s revenue expectations, but sales were flat year on year at $5.19 billion. Its non-GAAP profit of $1.35 per share was 35.9% above analysts’ consensus estimates.

Is now the time to buy TFC? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Truist Financial’s third quarter results were well received by the market, reflecting steady execution across its core businesses and meaningful progress on strategic priorities. Management credited positive momentum to broad-based loan growth in both consumer and wholesale segments, strong non-interest income led by investment banking and wealth management, and disciplined expense control. CEO William Rogers Jr. highlighted the impact of new client acquisition and deepened relationships—particularly among younger, higher-income clients—and noted that technology investments, including AI-driven digital tools, are beginning to accelerate client engagement and operational efficiency.

Looking ahead, Truist Financial’s management is focused on accelerating revenue and profitability through continued investment in branch modernization, digital capabilities, and premier advisory talent. The company anticipates higher revenue growth in 2026, driven by momentum in loan and deposit balances, enhanced fee income, and positive operating leverage. CFO Mike Maguire emphasized the importance of fixed-rate asset repricing and prudent cost management as ongoing tailwinds, while Rogers stated, “Much of our profitability improvement and growth potential is rooted in deepening relationships with existing clients, particularly in wealth management, payments, premier banking, investment banking and trading, and corporate and commercial banking.”

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to investments in client growth, digital transformation, and operational discipline, alongside strong fee-generating businesses and targeted market expansion.

• Loan and deposit growth: Truist saw broad-based increases in both commercial and consumer loans, supported by strong production and new client acquisition across diverse markets, particularly among younger, higher-income clients.
• Digital channel acceleration: The rollout of AI-enabled digital tools such as Truist Assist led to a 7% year-over-year increase in digital transactions, with digital channels accounting for 40% of new client acquisitions. Gen Z and Millennials made up 63% of new digital clients, aligning with the bank’s strategy to engage the next generation of customers.
• Wealth and payments momentum: Wealth management assets under management from wholesale and premier clients grew 27% year-over-year, with notable gains in advisor productivity and client trust. The payments business also expanded, driving an 11% increase in treasury management revenue.
• Strong non-interest income: Investment banking and trading income rebounded, delivering the strongest non-interest income quarter since a prior divestiture. This was supported by robust pipelines in debt capital markets and trading, underpinning management’s optimism for continued fee income strength.
• Expense discipline and capital return: Adjusted expenses grew modestly, primarily reflecting strategic hiring and incentives. Truist also returned $1.2 billion to shareholders through dividends and share repurchases, and signaled plans for further buybacks in subsequent quarters.

Drivers of Future Performance

Truist Financial expects continued progress in revenue and profitability, driven by loan and deposit growth, digital engagement, and disciplined cost management, though macroeconomic and credit conditions remain important variables.

• Deposit and loan momentum: Management projects sustained loan and deposit growth, especially in high-growth markets like Texas and Pennsylvania, as well as among younger and premier clients. Strategic branch investments and enhanced marketing are expected to further support core deposit expansion.
• Fee income and digital strategy: The company anticipates ongoing strength in fee-generating segments—particularly wealth management, payments, and investment banking—supported by digital enhancements and targeted talent acquisition. Management believes AI-driven capabilities will continue to fuel efficiency and client engagement.
• Credit quality vigilance: While credit metrics remain solid, management is closely monitoring exposures, including nonbank financial institutions and specific borrowers. Continued discipline in underwriting, portfolio diversification, and risk management is expected to help mitigate potential credit deterioration.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will focus on (1) Truist’s ability to sustain loan and core deposit growth across key markets and younger demographics, (2) continued expansion and monetization of digital and AI-driven banking solutions, and (3) resilience in credit quality as macroeconomic conditions evolve. Progress on branch modernization and scaling fee income businesses will also be important markers of execution.

Truist Financial currently trades at $42.44, up from $41.07 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

Our Favorite Stocks Right Now

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.