Truist Financial Corporation (NYSE: TFC) shares rose about 4% in intra-day trading on Friday after the bank reported third-quarter 2025 results that exceeded Wall Street expectations, driven by solid fee income growth and healthy loan expansion.
The Charlotte-based lender posted net income available to common shareholders of $1.35 billion, or $1.04 per diluted share, surpassing analyst estimates of $0.99. Total revenue climbed 4% sequentially to $5.24 billion on a taxable-equivalent basis.
Noninterest income jumped 11.3% from the prior quarter to $1.56 billion, supported by a 57.6% surge in investment banking and trading income and a 7.5% rise in wealth management revenue. The gains offset relatively modest growth in net interest income, which increased 1.2% to $3.68 billion.
Average loans held for investment rose $7.9 billion, or 2.5% from the previous quarter, reflecting broad-based strength across commercial and consumer lending portfolios. Asset quality also improved, with the net charge-off ratio easing to 0.48% from 0.51%.
Truist ended the quarter with a Common Equity Tier 1 (CET1) ratio of 11.0%. The bank repurchased $500 million in common stock and declared a quarterly dividend of $0.52 per share, representing a 50% payout ratio and a total capital return ratio of 87%.
