Truist Financial Corporation’s board approved a new common‑stock repurchase program of up to $10 billion on December 16, 2025, immediately replacing the prior program that had roughly $1.5 billion of authority left. The move expands the bank’s ability to return capital to shareholders while preserving the capital strength that has underpinned its post‑merger integration and growth initiatives.
The authorization is effective right away and allows Truist to buy back shares through open‑market purchases, private negotiations, or other mechanisms. The program is subject to the company’s capital and liquidity positions, regulatory requirements, and other internal considerations, ensuring that the bank can maintain a robust capital buffer while deploying excess capital.
Truist’s decision reflects confidence in its capital position. The bank’s Common Equity Tier 1 ratio stood at 11.3 percent as of March 31, 2025, well above the regulatory minimum, and its stress capital buffer for the 2025‑2026 period is 2.5 percent. The sale of Truist Insurance Holdings in 2024 injected additional capital, and the bank’s disciplined capital‑allocation philosophy—prioritizing core operations, dividends, and M&A before buybacks—provides a framework for this new authority.
The program comes after a mixed earnings picture. In Q3 2025, Truist reported non‑GAAP EPS of $1.04, beating the consensus estimate of $1.0088, while revenue of $5.187 billion fell short of the $5.250 billion estimate. Management attributed the EPS beat to strict cost controls and operational leverage, while the revenue miss was driven by weaker demand in legacy lending segments. CEO Bill Rogers highlighted the bank’s continued investment in core banking and technology, underscoring the confidence that underlies the buyback authorization.
Market reaction to the announcement was largely positive. The bank’s shares stabilized after earlier declines, and Morgan Stanley raised its price target for Truist from $55.00 to $56.00, citing the expanded buyback authority as a sign of capital discipline. Analysts noted that while the authorization is sizable—about 15.7 percent of Truist’s market cap—the bank’s exposure to commercial real‑estate loans and the need to preserve liquidity will likely pace the execution of the program.
The new authority gives Truist flexibility to deploy capital opportunistically, potentially boosting earnings per share and reducing the share count. However, the bank will balance buyback activity against its capital‑buffer goals, regulatory constraints, and the need to support growth in its core banking and technology investments. The move signals a continued commitment to shareholder returns while maintaining a conservative capital stance in a competitive regional‑bank landscape.
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