JPMorgan vs. Truist Financial: Which Bank Stock is the Better Buy Now?

By Swayta Shah | November 14, 2025, 7:03 AM

JPMorgan JPM is the largest U.S. bank, while Truist Financial TFC is a prominent regional bank. JPM leverages its massive global presence, branch expansion strategy and diversified financial services, while TFC is blending its targeted regional branch expansion with cutting-edge digital banking.

As the Federal Reserve has started an interest rate cut cycle, it is important to understand how these two large banks navigate the evolving operating environment. Let’s analyze JPMorgan and Truist Financial’s business models to determine which one presents a solid investment opportunity.

The Case for JPMorgan

JPMorgan’s balance sheet is highly asset-sensitive. Therefore, rate cuts are likely to adversely impact the company’s net interest income (NII). Lower rates will lead to reduced asset yields on variable-rate loans and securities, compressing margins unless deposits or funding costs are repriced more quickly.

JPMorgan expects the near-term impact of rate cuts to be manageable, driven by robust loan demand and deposit growth. Following the strong performance so far, management raised its 2025 NII forecast to $95.8 billion from the prior $95.5 billion target. This implies almost 3% year-over-year growth. Further, the company projects 2026 NII (excluding Markets) to be nearly $95 billion, driven by balance sheet growth and mix, partially offset by the impact of lower rates.

The shift toward easier monetary policy is expected to support client activity, deal flow and asset values. Thus, JPMorgan’s non-interest income streams will likely see robust improvement.

Additionally, JPM continues to invest in brick-and-mortar to strengthen its competitive edge in relationship banking, having a presence in all 48 contiguous states. In 2024, JPMorgan opened nearly 150 branches and plans to add 500 more by 2027 to deepen relationships and boost cross-selling across mortgages, loans, investments and credit cards. The company has also expanded through strategic acquisitions, including a larger stake in Brazil’s C6 Bank, partnerships with Cleareye.ai and Aumni, and the 2023 purchase of First Republic Bank.

Lower rates will likely support JPMorgan's asset quality, as declining rates will ease debt-service burdens and improve borrower solvency. The company lowered its 2025 card charge-off rate to approximately 3.3% from the previously expected 3.6% “on favorable delinquency trends.”

The Case for Truist Financial

Unlike JPM, Truist Financial is less sensitive to interest rate cycles. Since the divestiture of its insurance subsidiary in 2024, the company has been trying to strengthen its balance sheet through repositioning and making efforts to enhance its non-interest revenue sources.

In August, TFC announced a growth plan – opening 100 new branches and renovating more than 300 existing locations in high-growth opportunity cities in the next five years and investing in its business banking ecosystem -- to capitalize on growth opportunities in dynamic U.S. markets while strengthening its digital capabilities.

Also, the company is focusing on wealth management and expects a broad-based recovery in trading and investment banking businesses to drive non-interest income higher. This will also help alleviate Truist’s dependence on spread income to sustain top-line growth as rates come down.

For the fourth quarter of 2025, TFC anticipates NII to be up almost 2% sequentially, primarily driven by continued loan growth, higher client deposits and lower deposit costs amid rate cut expectations. Management expects to reprice nearly $14 billion of fixed-rate loans and securities in the fourth quarter.

Like JPM, the company’s asset quality is expected to benefit as interest rates decline. As Truist gets on with its branch expansion plan, upgrade technology and hire personnel to drive commercial banking business, operating expenses will likely remain high. The company expects adjusted non-interest expenses to rise approximately 1% this year.