Truist reports 3Q26 GAAP EPS of $0.56 and adjusted EPS of $1.16 as balance sheet restructuring drags on revenue
Total revenue fell to $3.75 billion due to a $1.4 billion pre-tax loss on AFS securities repositioning, while adjusted net income reached $1.42 billion.
What they reported
- GAAP net income fell to $0.80 billion for the quarter ended September 30, 2026, down from $1.55 billion in the prior quarter and $1.45 billion a year ago.
- Diluted EPS was $0.56, down from $1.04 in 3Q25, primarily due to a $1.4 billion pre-tax loss on the sale of available-for-sale (AFS) securities.
- Adjusted diluted EPS, which excludes the securities sale loss and other one-off restructuring impacts, rose 12% year-over-year to $1.16.
- Total revenue fell to $3.75 billion from $5.19 billion in 3Q25, heavily impacted by the securities repositioning and the Regional Acceptance Corporation (RAC) loan sale.
Against the forecast and a year ago
- A direct comparison to consensus forecasts is not available as consensus data was not provided.
- Net interest income (taxable-equivalent) rose 0.7% year-over-year to $3.71 billion, driven by fixed asset and liability repricing, despite lower loan balances.
- Noninterest income fell sharply to $0.08 billion from $1.56 billion a year ago, dragged down by the $1.4 billion securities loss and RAC loan sale impacts.
- Wealth management income grew 8.8% year-over-year to a record $407 million, while mortgage banking income declined 4.2% to $113 million.
What management said
CEO Mike Lyons stated that the bank took decisive actions during the quarter to simplify the company, strengthen its risk, liquidity, and funding profile, and reallocate resources to drive stronger growth and returns.
What to watch next
- The execution and financial impact of the agreement signed on October 14, 2026, to sell $7.7 billion of unsecured consumer loans from the LightStream platform to Carlyle Group.
- Net interest margin (taxable-equivalent), which rose two basis points sequentially to 3.00% but remains slightly below the 3.01% reported in 3Q25.
- Asset quality and credit metrics, as the net charge-off (NCO) ratio rose to 0.77% (including 39 basis points from the RAC sale) from 0.50% in the prior quarter.