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Truist shares tumble 5% as bank misses Q4 EPS but unveils $10b buyback and 2027 ROTCE goal
Source: Cryptonews Original Title: Truist shares tumble 5% as bank misses Q4 EPS but unveils $10b buyback and 2027 ROTCE goal Original Link:
Q4 2025 Results Overview
Truist Financial Corporation (TFC) reported fourth-quarter 2025 diluted earnings per share of $1.00, missing analyst expectations of $1.09. The Charlotte, North Carolina-based bank posted total revenue of $5.25 billion for the quarter, falling short of the anticipated $5.31 billion. The company attributed the shortfall to an incremental legal accrual and severance charges, which reduced earnings per share by $0.12.
Financial Performance Details
Net interest income increased 1.9% from the previous quarter, driven by loan and deposit growth. Noninterest income remained stable compared to the third quarter, with declines in some categories offset by gains in investment banking and trading income.
Noninterest expenses rose 5.2% due to higher personnel expenses and the legal accrual.
Capital Allocation and Strategic Targets
Truist announced a share repurchase authorization of up to $10 billion with no expiration date as part of its capital distribution strategy. The company’s Common Equity Tier 1 ratio stood at 10.8%, down slightly from the previous quarter.
Future Strategy
The bank outlined strategic guidance focused on enhancing client relationships, operational efficiency, and capital returns. Truist set a target of achieving a 15% return on tangible common equity by 2027.
The company stated it plans to invest in talent and technology while emphasizing risk management and governance practices. Truist Ventures has invested in fintechs focused on digital asset integration and enterprise blockchain solutions, positioning digital assets as part of its core strategy in embedded banking, alongside APIs and real-time payments infrastructure.