Truist Financial Corporation reduced its prime lending rate from 7.00% to 6.75%, a change that took effect on December 11, 2025 after the bank announced the move on December 10.
The rate cut is a deliberate pricing strategy designed to keep Truist competitive in a crowded regional‑banking market. By lowering the benchmark rate, the bank can offer more attractive mortgage, auto‑loan, and line‑of‑credit rates, which should help attract new borrowers and retain existing ones.
Net interest margin (NIM) was 3.01% in the third quarter of 2025, down 11 basis points from the same period in 2024. While the lower prime rate may compress margins in the short term, management expects net interest income to rise 2% in the fourth quarter, driven by loan growth and lower deposit costs.
The bank’s third‑quarter results were buoyed by strong performance in investment banking, trading, and wealth‑management segments. Consumer banking remained solid, and commercial banking growth was supported by regional expansion and digital initiatives.
Bill Rogers, chairman and CEO, reiterated the company’s target of a 15% return on tangible common equity by 2027. CFO Mike Maguire projected 1‑2% revenue growth in the fourth quarter and a 2% increase in net interest income, underscoring confidence in the bank’s pricing and cost‑control strategy.
Baird downgraded Truist to “Neutral” on December 11, citing valuation concerns despite the bank’s operational improvements. The downgrade reflects investors’ focus on the bank’s multiples rather than its recent pricing move.
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