Truist Financial (TFC) AI Stock Analysis

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Truist Financial

(NYSE:TFC)

Rating:69Neutral

Price Target:

$48.00

▲(10.55% Upside)

Truist Financial's overall stock score of 69 reflects solid cash flow and technical momentum, which are key strengths. While the company faces revenue and profitability challenges, its strong digital expansion and stable capital returns provide a positive outlook. The stock is reasonably valued with an attractive dividend yield, making it an appealing choice for income-focused investors.

Positive Factors

Capital Return

Capital return remained strong with a payout above 100%.

Loan Growth

The total average loan increased by 2% quarter over quarter, driven by both commercial and consumer sectors.

Share Buybacks

The ability to increase share buybacks, thanks to a strong capital position and cheap share price, is seen as a positive tailwind.

Negative Factors

Credit Costs

Higher credit costs mostly offset the slight beat in pre-provision net revenue, impacting the stock's performance negatively.

Revenue Outlook

The revenue outlook has weakened, leading to the first negative revision for a bank this earnings season, and a reduction in the price objective.

Stock Performance

The stock underperformed peers by approximately 210 basis points after reporting slightly lower than expected core earnings per share.

Truist Financial (TFC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$55.99B

Dividend Yield4.79%

Average Volume (3M)7.65M

Price to Earnings (P/E)11.8

Beta (1Y)1.24

Revenue Growth18.31%

EPS GrowthN/A

CountryUS

Employees37,529

SectorFinancial

Sector Strength64

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.90

Shares Outstanding1,289,435,200

10 Day Avg. Volume6,833,431

30 Day Avg. Volume7,645,249

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.13

Enterprise Value/Revenue4.97

Enterprise Value/Gross Profit10.34

Enterprise Value/Ebitda240.83

Forecast

1Y Price Target

$48.50

Price Target Upside11.70% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering13

Truist Financial Business Overview & Revenue Model

Company DescriptionTruist Financial Corporation (TFC) is a prominent American banking and financial services company that emerged from the merger of BB&T and SunTrust Banks in 2019. Headquartered in Charlotte, North Carolina, Truist operates across several segments, including retail and commercial banking, wealth management, and insurance. The company offers a comprehensive range of financial products and services, such as deposit accounts, loans, credit cards, investment services, and insurance solutions, catering to individuals, businesses, and institutions.

How the Company Makes MoneyTruist Financial Corporation generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from fees and commissions associated with various financial services. Key revenue streams include retail and commercial banking services, where the company earns interest on loans extended to individuals and businesses. In addition, Truist derives income from wealth management and investment services, which involve managing assets and providing financial advisory services for clients. Insurance services also contribute significantly to the company's earnings, with Truist offering a variety of insurance products through its subsidiaries. Strategic partnerships and acquisitions further bolster its revenue, enabling the company to expand its market presence and service offerings.

Truist Financial Key Performance Indicators (KPIs)

Any

Assets Under Management

Assets Under Management
Shows the total value of assets managed on behalf of clients, reflecting the firm's scale, client trust, and potential fee income.

Chart InsightsTruist Financial's Assets Under Management have shown a declining trend since late 2023, with a slight recovery in early 2025. This decline aligns with challenges in investment banking and trading revenue, as highlighted in the earnings call. Despite this, the company is experiencing strong loan growth and digital expansion, which may help stabilize AUM in the future. The focus on digital channels and robust capital returns indicate strategic shifts that could mitigate current pressures and support long-term growth.

Data provided by:

Main Street Data

Truist Financial Earnings Call Summary

Earnings Call Date:Jul 18, 2025

(Q2-2025)

% Change Since: -3.53%|

Next Earnings Date:Oct 17, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong performance in loan growth and digital expansion, with a robust return of capital to shareholders. Despite these positives, challenges in investment banking and trading revenue, alongside increased operating expenses, were notable. Overall, the highlights outweigh the lowlights, reflecting a positive sentiment.

Q2-2025 Updates

Positive Updates

Strong Loan Growth

Average loan balances increased 2% and end-of-period loans increased 3.3% linked quarter. Growth was broad-based across consumer and wholesale segments.

Net Income and Shareholder Returns

Net income available to common shareholders was $1.2 billion or $0.90 per share. $1.4 billion of capital was returned to shareholders through common stock dividends and repurchase of $750 million of common stock.

Digital and Client Growth

Digital account production rose 17% year over year, with 43% of new clients joining through digital channels. Net new checking accounts grew by nearly 37,000.

Asset Quality Improvement

Nonperforming loans and net charge-offs were down nine basis points linked quarter. Consumer net charge-offs reached their lowest levels since Q3 2023.

Treasury Management and Payments Growth

Treasury management penetration rates increased, driving a 14% increase in revenue compared to the second quarter of last year.

Negative Updates

Investment Banking and Trading Revenue Decline

Investment banking and trading income declined 25% linked quarter, reflecting weaker trading results and lower capital markets activity.

Higher Operating Expenses

Adjusted expenses increased 3.1% linked quarter primarily due to higher personnel expenses related to annual merit increases and strategic hiring efforts.

Deposit Volatility

Average deposit balances were affected by $10.9 billion of short-term client deposits that have since been withdrawn, impacting the stability of deposit growth.

Company Guidance

During the Truist Financial Corporation Second Quarter 2025 Earnings Conference Call, the guidance provided highlighted several key metrics. The company reported net income available to common shareholders of $1.2 billion or $0.90 per share, which included $0.02 of restructuring charges and $0.01 of losses from the sale of certain investment securities. Average loan balances increased by 2%, and end-of-period loans grew by 3.3% linked quarter, driven by new client acquisitions and broad-based growth across consumer and wholesale segments. Truist also saw a notable 43% of new clients joining through digital channels, contributing to a 17% increase in digital account production year over year. Asset quality remained strong with nonperforming loans and net charge-offs both down nine basis points linked quarter. The company returned $1.4 billion to shareholders through dividends and share repurchases, maintaining a strong capital position with a CET1 ratio of 11%. For the full year, Truist expects revenue growth between 1.5% and 2.5%, net interest income to increase by 3%, and adjusted expenses to grow by approximately 1%, aiming for positive operating leverage.

Truist Financial Financial Statement Overview

Summary

Truist Financial demonstrates strong cash flow management and a moderate balance sheet, but faces challenges in revenue and profitability. The robust cash flow position supports liquidity and operational efficiency, providing a buffer against income statement pressures.

Income Statement

Neutral

Truist Financial shows signs of instability in its income statement with a negative EBIT and declining revenue over recent periods. The gross profit margin remains reasonable, but the net profit margin has seen fluctuations due to varying net income levels. Despite these challenges, the company has managed to maintain positive EBITDA, which indicates some operational resilience.

Balance Sheet

Positive

The balance sheet reflects a moderate level of financial stability with a reasonable debt-to-equity ratio. However, the decreasing trend in stockholder's equity and fluctuating total assets raise concerns. The equity ratio shows the company maintains a decent proportion of equity financing, suggesting potential for leveraging equity for growth.

Cash Flow

Positive

Cash flow analysis reveals a positive trajectory with a significant increase in operating and free cash flow over recent periods. The company has managed to convert operating performance into cash effectively, showcasing a strong cash flow to net income ratio. This cash generation capability offers a buffer against earnings volatility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.25B	29.95B	22.29B	23.06B	24.43B
Gross Profit	11.41B	17.91B	19.20B	23.11B	20.37B
EBITDA	378.00M	450.00M	8.39B	9.38B	7.08B
Net Income	4.82B	-1.09B	6.26B	6.44B	4.48B
Balance Sheet
Total Assets	531.18B	535.35B	555.25B	541.24B	509.23B
Cash, Cash Equivalents and Short-Term Investments	44.32B	97.60B	93.22B	173.42B	139.66B
Total Debt	62.27B	62.12B	65.07B	40.89B	45.30B
Total Liabilities	467.50B	476.10B	494.72B	471.97B	438.32B
Stockholders Equity	63.68B	59.10B	60.51B	69.27B	70.81B
Cash Flow
Free Cash Flow	2.16B	8.63B	10.52B	7.45B	6.62B
Operating Cash Flow	2.16B	8.63B	11.08B	7.89B	7.44B
Investing Cash Flow	18.60B	22.86B	-29.97B	-32.06B	-43.65B
Financing Cash Flow	-11.64B	-22.27B	20.02B	25.59B	36.02B

Truist Financial Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price43.42

Price Trends

50DMA

42.54

Positive

100DMA

40.60

Positive

200DMA

42.39

Positive

Market Momentum

MACD

0.20

Positive

RSI

45.96

Neutral

STOCH

30.92

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TFC, the sentiment is Neutral. The current price of 43.42 is below the 20-day moving average (MA) of 44.71, above the 50-day MA of 42.54, and above the 200-day MA of 42.39, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 30.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TFC.

Truist Financial Risk Analysis

Truist Financial disclosed 11 risk factors in its most recent earnings report. Truist Financial reported the most risks in the "Macro & Political" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Truist Financial Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNC	80 Outperform	$74.43B	12.91	11.19%	3.50%	3.60%	22.68%
FITB	78 Outperform	$27.59B	12.87	11.58%	3.62%	2.08%	2.87%
RF	77 Outperform	$22.64B	11.74	11.59%	3.97%	2.83%	20.85%
MTB	77 Outperform	$29.39B	12.18	9.47%	2.92%	0.62%	14.75%
TFC	69 Neutral	$55.99B	11.80	8.13%	4.79%	18.31%	―
USB	69 Neutral	$69.42B	10.66	11.66%	4.49%	0.84%	32.55%
Sector *	66 Neutral	€20.23B	11.80	9.35%	5.13%	3.81%	-11.93%

* Financial Sector Average

Performance Comparison

TFC

Truist Financial

43.42

3.33

8.31%

FITB

Fifth Third Bancorp

41.34

3.08

8.05%

MTB

M&T Bank

188.04

30.43

19.31%

PNC

PNC Financial

188.99

24.66

15.01%

Regions Financial

25.18

5.21

26.09%

USB

US Bancorp

44.56

4.61

11.54%

Truist Financial Corporate Events

Executive/Board ChangesBusiness Operations and StrategyRegulatory Filings and Compliance

Truist Financial Updates Bylaws for Enhanced Governance

Neutral

Aug 1, 2025

On July 29, 2025, Truist Financial Corporation’s Board of Directors approved amendments to the company’s Bylaws. These changes primarily focus on enhancing procedural and disclosure requirements for shareholder proposals and director nominations, including age limits for director nominations, and providing more flexibility in board committee structures. The amendments also align the Bylaws with the North Carolina Business Corporation Act and include various clarifying updates.

The most recent analyst rating on (TFC) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Truist Financial stock, see the TFC Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy

Truist Financial Appoints Jonathan Pruzan to Board

Positive

May 29, 2025

On May 27, 2025, Truist Financial Corporation appointed Jonathan Pruzan as a director of the company and a member of the Board of Directors of its subsidiary, Truist Bank. Pruzan, who brings 35 years of financial services experience, will serve on the Joint Risk Committee of the Boards. His extensive background includes roles at Morgan Stanley and Pretium, providing him with a wealth of knowledge in technology, operations, finance, and corporate strategy, which is expected to benefit Truist’s strategic direction and operations.

The most recent analyst rating on (TFC) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Truist Financial stock, see the TFC Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025