Truist reports Q2 2026 EPS of $1.23, up 37% YoY; returns $1.8B to shareholders

Truist disclosed its second quarter 2026 financial results through a press release and accompanying materials posted to its website. The filing does not provide specific financial metrics or performance details in the 8-K body itself; those details are contained in the attached exhibits.

During the second quarter of 2026, Truist returned $1.8 billion to shareholders through dividends and share repurchases. The company repurchased $1.2 billion of common stock and declared dividends of $0.52 per share, resulting in a dividend payout ratio of 42% and a total payout ratio of 121%.

Truist announced a CEO transition, with Mike Lyons set to become the company's next Chief Executive Officer in September 2026. Current Chairman and CEO Bill Rogers described Lyons as a dynamic and highly respected financial services leader who shares a common vision for building on the company's momentum and improving performance.

Truist's total revenue on a taxable-equivalent basis increased 5.5% year-over-year to $5.31 billion, driven by higher investment banking and trading income (up 71.7% to $352 million) and wealth management income (up 7.8% to $375 million). Net interest income on a taxable-equivalent basis was $3.67 billion, up 0.9% year-over-year.

Truist reported Q2 2026 net income of $1.55 billion, or $1.23 per diluted share, compared to $0.0M and $0.90 per share in Q2 2025. Year-to-date net income reached $3.03 billion versus $2.50 billion in the prior-year period. The improvement reflects higher net interest income and noninterest income, partially offset by increased expenses and provision for credit losses.

Net interest income on a taxable-equivalent basis was $3.67 billion in Q2 2026, up from $3.64 billion in Q2 2025, with a net interest margin of 2.98% versus 3.02% a year earlier. Year-to-date net interest income-TE rose to $7.31 billion from $7.19 billion, while the margin held at 3.00% versus 3.02%. The sequential margin compression from 3.02% in Q1 2026 reflects ongoing deposit and funding cost pressures.

Noninterest income totaled $1.64 billion in Q2 2026, up 17% from $1.40 billion in Q2 2025, driven primarily by investment banking and trading income of $352 million versus $205 million a year earlier. Year-to-date noninterest income reached $3.20 billion, up 15% from $2.79 billion, reflecting stronger capital markets activity.

Truist recorded a $395 million provision for credit losses in Q2 2026, down from $488 million in Q2 2025. Nonperforming loans rose to 0.51% of loans held for investment from 0.39% a year earlier, while net charge-offs were 0.50% of average loans versus 0.51% in Q2 2025. The allowance for loan and lease losses stood at 1.51% of loans, down from 1.54% a year ago, reflecting stable credit trends.

Truist's common equity tier 1 ratio was 10.9% at June 30, 2026, down from 11.0% a year earlier, as the company reduced shares outstanding to 1.22 billion from 1.29 billion through repurchases. The quarterly dividend remained $0.52 per share. The lower CET1 ratio reflects capital returned to shareholders while maintaining regulatory buffers.

Truist reported Q2 2026 net income available to common shareholders of $1.519 billion, or $1.23 per diluted share, up 37% from Q2 2025. The company delivered 320 basis points of positive operating leverage and improved return on average tangible common equity to 15.4%, up 310 basis points year-over-year.

Truist updated full-year 2026 guidance, projecting taxable-equivalent revenue growth of 3.5% to 4% and noninterest expense growth of approximately 1.75%, implying continued positive operating leverage. The net charge-off ratio is expected to remain stable at around 55 basis points, consistent with strong asset quality.

The company highlighted expected prepayments of investment securities and fixed-rate loans that will be reinvested at higher rates.

Truist reaffirmed its return on average tangible common equity targets: approximately 14% for 2025, approximately 15% for 2026, and 16% to 18% for 2027 and beyond. The company stated it is on track to achieve these targets through business growth, positive operating leverage, balance sheet optimization, and capital returns.