By Manya Saini
April 17 (Reuters) – U.S. bank Truist Financial topped first-quarter profit estimates on Friday, thanks to solid growth in investment banking fees and trading, as well as higher interest income.
Investment banking fees have climbed across the industry as companies continue to pursue dealmaking plans, betting that bouts of market volatility will be short-lived and unlikely to derail strategic transactions.
Those choppy conditions in global markets, driven by an artificial intelligence-led selloff in tech stocks and turmoil in the Middle East, have lifted trading desks, which have seen a surge in client activity as investors reposition portfolios and hedge against new risks.
Truist reported a 36.3% rise in investment banking and trading income for the quarter, and expects it to be up 20% year-over-year in 2026.
“Our debt capital markets has been a strong contributer for a long time. I think M&A will be a bigger part of the growth going forward, we’ve invested a lot in that area,” Truist CEO Bill Rogers said in a call with analysts.
Shares of the ninth-largest U.S. bank by assets were up 1.5%.
Meanwhile, a pickup in borrowing by both companies and consumers is lifting loan demand across the industry, supporting lending margins that remain a key driver of profits at U.S. banks.
Truist reported a 2.5% rise in net interest income to $3.64 billion during the first quarter.
Earnings per share came in at $1.09 during the three months ended March 31. Analysts on average expected 99 cents, according to data compiled by LSEG.
“The uplift in the full-year 2026 share repurchase program to $5 billion from $4 billion, and the establishment of a long-term ROTCE target of 16% to 18% should favorably impact investor sentiment in 2026,” RBC Capital Markets analysts said in a note.
The results mirror trends at Wall Street heavyweights JPMorgan Chase, Bank of America and Citigroup.
(Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar)
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