- Price
- $47.07
- Fair value
- $55.40
- Discount
- 15.0%
- Uncertainty
- Medium
- LSEG rating
- 2.86
- Moat
- None
- Next earnings
- 2027-01-19
- Next earnings is estimate
- Yes
- Company name
- Truist Financial
- Sector
- Regional bank
- About
- Truist Financial is a large US bank holding company based in Charlotte, North Carolina, formed in 2019 by the merger of BB&T and SunTrust. It had total assets of $554 billion at September 30, 2026, and it is a top-10 US commercial bank. Most of its branches are in the Southeast and Mid-Atlantic, where it has leading market share in many fast-growing markets. Its businesses are consumer and small business banking, commercial and corporate banking, investment banking and capital markets, wealth management, payments and specialized lending. Most of its income is net interest income on loans and securities, and the rest is fees. In 2026, it sold its Regional Acceptance auto loans and agreed to sell its LightStream unsecured consumer loans, so that it can focus on its core client businesses.
- Thesis
- The market prices Truist for returns that have been lower than those of its best peers and for the uncertainty of a new strategy. Its net interest margin was 3.00% in Q3 2026, and loans fell in the quarter. A new CEO, Mike Lyons, took over on September 1, 2026, and he started a review of its loan books and businesses. The first steps cost money: in Q3 2026, the sale of low-yield securities caused a pre-tax loss of $1.4 billion, and diluted EPS fell to $0.56. Adjusted EPS, without these actions, rose 12% to $1.16 and adjusted ROTCE was 14.6%. For the gap to close, three things must be true. The sale of LightStream loans to Carlyle must close in Q4 2026 as planned. The money from the sales and the new securities at higher yields must lift net interest income and returns, as Truist expects. Truist must meet its ROTCE targets while it keeps its CET1 ratio near 10.7% and buys back about $1 billion of shares each quarter. The Q4 2026 report, estimated for about January 19, 2027, is the next test. The full results of the strategic review in 2027 are the main test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is weak loan growth, which would keep returns below those of its peers.
- Risks
- The strategic review can bring more sales of assets or restructuring charges. The sale of securities in Q3 2026 caused a pre-tax loss of $1.4 billion, and new actions can lower reported earnings again.
Commercial real estate and other business loans can have higher losses in a weaker economy. The net charge-off ratio was 0.38% in Q3 2026 without the Regional Acceptance sale.
Lower interest rates or more competition for deposits can lower the net interest margin, which was 3.00% in Q3 2026.
A new CEO and changes in the leadership team can bring changes in strategy, and new plans can take time to show results.
- Balance sheet
- Truist funds itself mostly with deposits. At September 30, 2026, total assets were $554.2 billion and deposits were $413.2 billion. Loans and leases held for investment were $323.9 billion, with an allowance for loan and lease losses of 1.25% of loans. Short-term borrowings fell to $12.4 billion from $26.9 billion at June 30, 2026, and long-term debt was $53.4 billion. Interest-bearing deposits with banks were $41.2 billion and the liquidity coverage ratio was 110%. Total shareholders' equity was $61.5 billion. The preliminary CET1 ratio was 10.7%. Book value per share was $46.78 and tangible book value per share was $31.90. In Q3 2026, Truist returned $1.8 billion to shareholders, and for Q4 2026 it expects buybacks of about $1 billion. The LightStream sale is expected to add about $850 million of CET1 capital when it closes.
As of 2026-09-30.
- Checkpoints
- Q4 2026 (estimate): LightStream sale closes. Pending. Watch: A close in Q4 2026 with about $7.2 billion of net proceeds passes; a delay or a lower price fails.
Jan 19, 2027 (estimate): Q4 2026 earnings and the 2027 outlook. Pending. Watch: Revenue near the $5.35 billion outlook, steady buybacks and a 2027 plan toward the ROTCE targets pass; lower revenue or new large charges fail.
- Recent events
- 2026-10-16: Truist reported Q3 2026 results. Diluted EPS was $0.56 after a $1.4 billion pre-tax loss on the sale of securities. Adjusted EPS rose 12% to $1.16 and adjusted ROTCE was 14.6%. The net interest margin was 3.00% and deposits rose 0.9% to $413.2 billion. Truist bought back $1.2 billion of shares, and the CET1 ratio was 10.7%. It also said that Dontá Wilson, the head of consumer and small business banking, will leave on December 31, 2026.
2026-10-14: Truist agreed to sell $7.7 billion of unsecured consumer loans, nearly all the assets of LightStream, to Carlyle. It expects net proceeds of $7.2 billion and about $850 million of new CET1 capital, and it plans to close the sale in Q4 2026.
2026-09-15: Truist said that it had agreed to sell $5.5 billion of auto loans, nearly all the assets of Regional Acceptance, to exit near-prime auto lending. It kept its 2026 share buyback target of $5 billion. The sale closed in Q3 2026 for $5.2 billion, and Truist used the money to repay borrowings. It also sold $8.6 billion of securities with a 2.67% yield and bought $7.2 billion of securities with a 5.60% yield.
2026-09-01: Mike Lyons, the former CEO of Fiserv and former president of PNC, became CEO of Truist. Bill Rogers, the former CEO, became executive chair until the 2027 annual meeting.
2026-07-17: Truist reported Q2 2026 results. Diluted EPS was $1.23, ROTCE was 15.4% and the net interest margin was 2.98%.