Truist Accelerates Push Into Digital Lending

Amid macro uncertainty, shifting interest rate dynamics and a skeptical market, mitigating risk while unlocking new growth is the name of the game for lenders as they search for relevance in a rapidly transforming banking landscape.

That was the theme of the executive commentary during Truist’s Friday (July 18) second-quarter 2025 earnings call, where company leaders told investors that they were determined to stare down headwinds, in part by leaning on strategic digital innovation to drive performance.

“We delivered strong second-quarter results, driven by strategic loan growth and higher net interest income,” said CEO Bill Rogers, emphasizing the company’s resilience and consistency.

And while the bank’s fee income for the quarter lagged, and credit remained stable, Truist was able to score wins elsewhere — particularly in consumer banking and digital engagement. The bank added roughly 37,000 new checking accounts in Q2, marking the fifth straight quarter of net growth. Its digital acquisition channel now accounts for 43% of new accounts, up from 34% a year ago.

“We’re seeing real momentum in client primacy and digital activation,” said Rogers.

Read more: Truist Says 80% of Transactions Self-Service as Mobile Banking Surges

Chasing Stability in a Rising-Risk Environment

During Friday’s call, Rogers and CFO Mike Maguire repeatedly stressed their 2025 goals: digital modernization, loan growth, stable expenses and strategic reinvestment.

At the core of Truist’s performance was its net interest income (NII), which increased by 2.3% to $3.64 billion quarter over quarter. The bank managed to maintain a net interest margin of 3.02%, up a single basis point sequentially — largely stable despite volatile rate expectations and slowing Fed policy.

Loan growth drove the expansion. Average loans and leases rose $6.2 billion, or 2.0%, over Q1, boosted by new originations in consumer lending, residential mortgages, and commercial and industrial (C&I) segments.

But margins were under pressure. Deposit costs rose to 1.85%, up 6 basis points sequentially, while the yield on total loans increased only 4 basis point

This was balanced on a growth roadmap basis by the fact that Truist’s digital usage was up across the board. Over 1.8 million clients used digital financial management tools, a 40% year-over-year increase, while the lender’s new Plan & Track dashboard helped drive a 30% boost in digital engagement.

At the same time, Truist’s LightStream platform has now been fully integrated into its broader digital ecosystem — rebranded “LightStream by Truist” — to push further into the prime digital lending space.

According to research from PYMNTS Intelligence and i2c, small and medioum-sized businesses (SMBs) want fewer fees and better service, and that’s where community banks can shine compared to larger, legacy financial institutions.

See also: OCC Finds Outdated Core Systems Threaten Future of US Regional Banks

Looking Ahead While Betting on the Back Half

Despite the solid results, investor sentiment was muted. Truist shares dipped following the announcement, with analysts pointing to weak fee income and rising provisions as dampers.

Truist management offered cautious optimism for the second half of 2025. Investment banking and trading, while soft now, are “positioned for recovery,” the bank said. Net interest income is expected to grow approximately 3% for the full year, aided by modest loan growth and fixed asset repricing.

That said, the environment remains uncertain. Pressure on deposit costs, unpredictable capital markets, and potential regulatory shifts are all in play. Truist’s forecast assumes two 25-basis-point Fed rate cuts in the back half of the year.

Still, the tone from leadership was confident. “We’re staying on offense,” said Rogers, “with a clear strategic focus, a strong balance sheet, and an unwavering commitment to purpose.”

Findings from the “Credit Union Innovation Readiness Index: The Smallest Credit Unions Step It Up,” a PYMNTS Intelligence and Velera collaboration, reveal that, when it comes to innovation, smaller lenders aren’t standing still, and one of the advantages of smaller banks is their ability to adopt collaborative models.