During this morning's call, they will discuss Truist's Second Quarter results, share their perspectives on current business conditions, and provide an outlook for 2025. The company presentation, as well as our earnings release and supplemental financial information, are available on the Truist Investor Relations website, ir.truist.com. These leaders were attracted to our purpose-driven culture and are already making a meaningful impact, strengthening our presence in key growth markets and expanding our capabilities across high-potential verticals. These initiatives include accelerating growth through the addition of new clients and deepening existing client relationships in areas like payments, wealth, and premier banking.
We're executing our plan while maintaining our expense and credit discipline and returning capital to shareholders. Growth was broad-based across our consumer and wholesale segments and driven by increased loan production and new client acquisition. Growth should also benefit from our expansion efforts in markets where we have a smaller but growing share and from many of the new teammates that have joined our company. This quarter's loan growth helped offset the equity and debt market volatility that occurred early in the quarter.
This volatility impacted trading, capital markets, and M&A activity for the industry, resulting in lower revenue for investment banking and trading businesses. We believe that our investment banking and trading business is well-positioned for a second-half recovery, as we saw steady improvement in overall investment banking revenue in each month during the quarter. Adjusted expenses did come in at the high end of the expected range, but we remain confident in our ability to deliver our 1% expense growth target and positive operating leverage in this year. We also maintain strong asset quality metrics, as both non-performing loans and net charge-offs were down nine basis points late quarter.
| Metric | Period | Current guidance |
|---|---|---|
| Share repurchases | Q3 2025 | approximately $500 million (down) |
| Interest-bearing deposit beta | End of 2025 | mid-40% area (assuming two rate cuts) (up) |
| Fixed rate asset repricing | Remainder of 2025 | approximately $27 billion of fixed rate loans and securities to reprice (n/a) |
| Net interest margin | Over time | three-teens area achievable (up) |
| Expense growth | Full year 2025 | 1% expense growth target with positive operating leverage (reaffirmed) |
| Metric | YoY | Note |
|---|---|---|
| Adjusted revenue | up 2.1% linked quarter | 2.3% growth in net interest income and 1.8% growth in non-interest income |
| Taxable equivalent net interest income | up 2.3% linked quarter ($80 million) | loan growth, fixed rate asset repricing, and one additional day in the quarter |
| Net charge-offs | down 7 basis points versus Q2 2024 to 51 basis points | lower consumer and CRE losses |
| Adjusted non-interest income | down 1.4% versus Q2 2024 | lower investment banking and trading income and lower wealth management income from the sale of Sterling Capital Management |
| Average deposits | up 2.1% sequentially | growth in interest checking, time deposits, and non-interest-bearing demand, plus $10.9 billion of short-term client deposits |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Investment banking and trading recovery | trading losses and weak banking in April | May improved, June and July normalized; optimistic on second-half recovery | Improving |
| Merger integration | longer and deeper J-curve than anticipated | integration fully behind the company; on the accelerant part of the J-curve | Improving |
| Deposit beta | 43% cumulative interest-bearing beta | declined to 37% on a linked-quarter basis | Improving |
| Capital position and CET1 | n/a | 11% stated, 9.3% adjusted for AOCI; gliding toward 10% target area | Stable |