Diversified Banks Stocks Q2 Recap: Benchmarking Truist Financial (NYSE:TFC)

July 30, 2025 at 23:31 PM EDT

TFC Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at diversified banks stocks, starting with Truist Financial (NYSE: TFC).

At their core, diversified banks take in deposits and engage in various forms of lending, which means revenue is generated through interest rate spreads (difference between loan and deposit rates) and fees. Other revenue comes from adjacent services such as wealth management, card and account fees, and products such as annuities. These institutions benefit from rising interest rates that improve NIMs (net interest margins), digital transformation reducing operational costs, and expanding wealth management services as populations age. However, they face headwinds including fintech competition disrupting traditional models (how disruptive is crypto?), stringent regulatory requirements increasing compliance costs, and cybersecurity threats requiring substantial technology investments. Economic downturns also pose risks through potential loan defaults and compressed margins during accommodative monetary policy periods.

The 7 diversified banks stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.1%.

In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.

Truist Financial (NYSE: TFC)

Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE: TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.

Truist Financial reported revenues of $4.99 billion, up 396% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ EPS estimates and net interest income in line with analysts’ estimates.

Truist Financial pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 8.8% since reporting and currently trades at $43.92.

Read our full report on Truist Financial here, it’s free.

Best Q2: Citigroup (NYSE: C)

With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE: C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments.

Citigroup reported revenues of $21.67 billion, up 8% year on year, outperforming analysts’ expectations by 3.5%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates.

Citigroup delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.8% since reporting. It currently trades at $95.17.

Is now the time to buy Citigroup? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: U.S. Bancorp (NYSE: USB)

With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE: USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.

U.S. Bancorp reported revenues of $6.98 billion, up 2% year on year, falling short of analysts’ expectations by 0.7%. It was a slower quarter as it posted a miss of analysts’ net interest income estimates and a miss of analysts’ tangible book value per share estimates.

U.S. Bancorp delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $45.54.

Read our full analysis of U.S. Bancorp’s results here.

PNC Financial Services Group (NYSE: PNC)

Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE: PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.

PNC Financial Services Group reported revenues of $5.66 billion, up 6.7% year on year. This print beat analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ tangible book value per share estimates and a decent beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $191.55.

Read our full, actionable report on PNC Financial Services Group here, it’s free.

Bank of America (NYSE: BAC)

Tracing its roots back to 1784 and now serving approximately 67 million consumer and small business clients, Bank of America (NYSE: BAC) is a global financial institution that provides banking, investing, asset management, and risk management products and services to individuals, businesses, and governments.

Bank of America reported revenues of $26.46 billion, up 4.3% year on year. This result met analysts’ expectations. More broadly, it was a slower quarter as it logged a slight miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.

The stock is up 3.4% since reporting and currently trades at $47.70.

Read our full, actionable report on Bank of America here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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