During this morning's call, they will discuss Truist First Quarter 2026 results, share their perspectives on current business conditions, and provide an updated outlook for 2026. The accompanying presentation, as well as our earnings release and supplemental financial information, are available on the Truist Investor Relations website, ir.truist.com. Our relationships with these clients have led to broad-based franchise engagement, which includes deposits, payments, and lead roles in capital market transactions. A meaningful portion of this benefit is realized through reductions to our tax provision rather than reported revenue.
Our performance was driven by continued execution against strategic priorities, including growth in both consumer and wholesale loans, along with strong non-interest income growth led by our investment banking and wealth management businesses. Together, those factors, along with our expense and credit discipline, contributed to 250 basis points of year-over-year positive operating leverage in the quarter. With continued execution against our strategic priorities, continued capital return, and the benefit of expected changes to the capital framework, we're establishing a long-term ROTCE target of 16%-18%. Average loans declined modestly for the fourth quarter, which is consistent with normal seasonality and our goal of emphasizing growth in categories offering the most attractive risk-adjusted returns.
Digital share of new-to-bank clients increased to 45%, with Gen Z and Millennials representing more than half of the growth. Active digital users grew year-over-year and digital transaction volumes remained strong, reflecting sustained client engagement with our platforms. Overall, our disciplined focus on capital allocation, pricing, productivity, and digital execution is translating into strong underlying performance and positions Consumer and Small Business Banking well as we progress through the year. In wholesale, we delivered a strong start to 2026 with continued momentum across loans, deposits, and fees while maintaining a disciplined focus on relationship returns and capital efficiency.
| Metric | Period | Current guidance |
|---|---|---|
| Net interest income growth | Full year 2026 | 2%-3% (down) |
| Fed funds rate | 2026 | unchanged throughout 2026 (down) |
| Average loan growth | 2026 | approximately 3%-4% (in line) |
| Net interest margin | Full year 2026 average | exceed 2025 average of 3.03%, but 3% exit unlikely in 2026 (reach 3% in 2027) (down) |
| Investment banking and trading growth | 2026 | high teens, maybe even 20% (up) |
| Long-term ROTCE target | Next three to five years | 16%-18% (new) |
| Other consumer loan growth | 2026 | mid- to high-single-digit pace (n/a) |
| Average deposit growth | 2026 | low single digits year-over-year (n/a) |
| Metric | YoY | Note |
|---|---|---|
| Earnings per share | up 25% versus Q1 2025, up 9% versus Q4 2025 | strong loan growth, non-interest income growth, expense and credit discipline, and lower tax rate |
| Revenue | up 5.1% versus Q1 2025, down 1.9% linked quarter | higher net interest income from loan growth and higher non-interest income year-over-year; linked-quarter decline from day count |
| Investment banking and trading income | up 36% versus Q1 2025, up 11% linked quarter to $372 million | stronger trading income and capital markets activity, partially offset by lower M&A fees |
| Effective tax rate | 12.4% versus 17.9% in Q1 2025 | approximately half the decline from increased client transaction activity in the project finance business |
| Non-interest expense | up 2.6% versus Q1 2025, down 5.9% linked quarter | higher personnel expense year-over-year; linked-quarter decline from lower other expense and lower incentive compensation |
| Wealth management income | up 7.6% versus Q1 2025 | strong wholesale and premier client activity |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| ROTCE target | 15% in 2027 as endpoint | 15% in 2027 reframed as a milestone, new 16%-18% long-term target | Raised |
| Rate path / NII | two cuts assumed, 3%-4% NII growth | no cuts assumed, NII growth lowered to 2%-3% | Weakening |
| Deposit competition | rationally competitive | more yield-seeking and rate awareness with rates higher for longer | Intensifying |
| Investment banking | back to sustainable level, broad-based | highest quarterly revenue since 2021, full-year growth raised to high teens / 20% | Improving |
| Loan mix | commercial-led with selective consumer | wholesale up 9% YoY, throttling back lower-return indirect auto, emphasizing risk-adjusted returns | Shifting |
| Deposit beta | 45% cumulative interest-bearing | increased to 46%; total beta to 31% | Rising |