Securities sale losses cut Truist’s reported earnings per share to 0.56 dollars
Truist’s reported third-quarter earnings per share fell to 0.56 dollars from 1.04 dollars a year earlier, as securities sales generated substantial losses. Adjusted earnings per share rose to 1.16 dollars but missed the Zacks consensus forecast. A completed consumer-loan sale also affected the results through a loss, expenses and the release of previously established credit-loss reserves.
Economics & Markets··Morning
Sales losses pull down reported earnings
Truist Financial, a banking group, reported diluted earnings per share of 0.56 dollars for the third quarter of 2026. The October 16 results compared with 1.04 dollars a year earlier and 1.23 dollars in the preceding quarter. Adjusted earnings per share reached 1.16 dollars, below the 1.17 dollar analyst consensus compiled by Zacks.[1], [2]
The bank completed the sale of loans from Regional Acceptance Corporation, its consumer-lending business, and repositioned securities available for sale. Securities sales generated a pretax loss of 1.447 billion dollars. The loan sale added a 66 million dollar loss in other income and 40 million dollars of expenses, while releasing 581 million dollars of credit-loss reserves.[1]
Adjusted income and services show a different direction
The total credit-loss provision line showed a net benefit of 253 million dollars. Adjusted common-shareholder income was 1.42 billion dollars, with adjusted earnings per share increasing 12 per cent annually on the bank’s rounded comparison. These adjusted results exclude selected items, including the securities and loan-sale effects, so they use a different earnings measure from reported income.[1]
Taxable-equivalent net interest income rose 1.1 per cent from the preceding quarter to 3.707 billion dollars. The margin on the same basis increased two basis points to 3.00 per cent. Wealth management income reached a record 407 million dollars. Card and cash-management fees were 347 million dollars, while lending-related fees reached 120 million dollars during the quarter.[1], [2]
Deposits rise as the loan sale reduces balances
Period-end loans held for investment declined to 323.9 billion dollars. The loan sale accounted for 5.5 billion dollars of the 5.9 billion dollar sequential reduction. Period-end deposits increased by 3.9 billion dollars to 413.2 billion dollars. Average deposits, a separate balance measure, reached 410.70 billion dollars against 396.60 billion dollars a year earlier.[1], [2]
Total noninterest expenses were 3.105 billion dollars. Adjusted expenses excluding the loan-sale costs were 3.065 billion dollars. Higher personnel spending, professional fees and outside processing costs contributed to the annual expense increase. Truist returned 600 million dollars through common dividends and 1.2 billion dollars through share repurchases. Its preliminary common equity capital ratio was 10.7 per cent at quarter-end.[1], [2]
