Truist Q3 Adjusted EPS Rises 12% to $1.16 as Bank Completes $5.5 Billion Auto-Loan Sale
Truist Financial (NYSE: TFC) on October 16 reported third-quarter 2026 results, with adjusted earnings per share of $1.16, up 12% from a year earlier but a penny below the consensus estimate of $1.17. Total revenue was $5.30 billion, up 1.3% year over year and slightly below expectations of $5.35 billion. Adjusted return on tangible common equity improved 100 basis points year over year to 14.6%, and management said deposit growth, wealth management performance and expense control met or exceeded expectations.
Balance-sheet reshaping was the quarter's main theme. Truist completed the $5.5 billion sale of its RAC auto-loan portfolio and agreed to sell $7.7 billion of LightStream loans, moves intended to reduce credit risk and wholesale funding needs. Management said the transactions should improve capital efficiency, tangible book value and future EPS and ROTCE, although they will reduce near-term net interest income. Average loans declined 1.1% sequentially as the bank reduced lower-return lending and saw higher paydowns, and investment banking revenue was delayed by market volatility. The bank expects fourth-quarter net interest income of $3.65 billion to $3.7 billion, including a roughly $125 million impact from the RAC sale.
CEO Mike Lyons outlined a strategy centered on relationship-based consumer and wholesale banking, spanning branches, digital channels, payments, treasury management, wealth and commercial lending. Truist is conducting a company-wide review to redirect capital and expenses toward strategic businesses, with further details expected in early 2027. The bank reiterated its target of 15% ROTCE in 2027 and 16% to 18% over the long term, and plans roughly $1 billion of share repurchases in the fourth quarter. (GSM, based on Truist's earnings release and conference call)
Published by GSM · USA (original Chinese edition)
Photo: 图：北卡罗来纳州夏洛特市中心天际线，其中包括Truist总部大楼Truist Center。图片来源：Kiran891，Wikimedia Commons，CC BY-SA 4.0。Photo: The downtown Charlotte, North Carolina skyline, including Truist Center, the bank's headquarters tower. Source: Kiran891, via Wikimedia Commons, CC BY-SA 4.0.
