Fifth Third Bancorp vykázala za čtvrtletí zisk na akcii (EPS) ve výši 1,13 USD, což překonalo odhad 1,09 USD, zatímco tržby ve výši 3,28 mld. USD zaostaly za konsensem o 1,74 %.
Fifth Third Bancorp (FITB - Free Report) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $1.09 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.67%. A quarter ago, it was expected that this company would post earnings of $0.98 per share when it actually produced earnings of $1.02, delivering a surprise of +4.08%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Fifth Third Bancorp, which belongs to the Zacks Banks - Major Regional industry, posted revenues of $3.28 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 1.74%. This compares to year-ago revenues of $2.3 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Fifth Third Bancorp shares have added about 7.6% since the beginning of the year versus the S&P 500's gain of 11.9%.
What's Next for Fifth Third Bancorp?While Fifth Third Bancorp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Fifth Third Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.20 on $3.41 billion in revenues for the coming quarter and $4.16 on $12.87 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Major Regional is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
KeyCorp (KEY - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 20.
This company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +12.2%. The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level.
KeyCorp's revenues are expected to be $2.03 billion, up 7.6% from the year-ago quarter.
Key Takeaways FITB is set to report Q3'26 results on Oct. 19, with EPS likely to be $1.09, suggesting y/y rise of 17.2%.FITB expects Q3'26 NII to increase 2-2.5% sequentially, supported by loan growth and stable funding costs.FITB expects adjusted expenses to fall 1-2% sequentially, aided by Comerica integration synergies. Fifth Third Bancorp (FITB - Free Report) is scheduled to report third-quarter 2026 results on Oct. 19, before the opening bell. Quarterly earnings and revenues are expected to have registered year-over-year growth in the to-be-reported quarter.
In the last reported quarter, the bank’s earnings surpassed the Zacks Consensus Estimate. Results benefited from growth in net interest income (NII) and fee income. Higher loan and deposit balances were also encouraging. However, increased expenses and higher provisions for credit losses acted as headwinds.
This Cincinnati, OH-based lender has an impressive earnings surprise history. Its earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 4.18%.
Factors Likely to Impact FITB’s Q3 PerformanceLoans & NII: After strong lending activity in the first half of 2026, loan growth momentum likely moderated in the to-be-reported quarter. According to the Federal Reserve’s latest data, commercial and industrial lending demand remained healthy during the third quarter, while consumer and real estate lending held steady. Decent loan demand, along with stable deposit and funding costs, is expected to have supported growth in average interest-earning assets. Management expects average loans and leases to increase 1% sequentially in the third quarter of 2026.
The Zacks Consensus Estimate for average interest-earning assets of $269.8 billion for the third quarter indicates an 1.8% rise from the prior quarter’s actual.
In September 2026, the Fed raised interest rates by 25 basis points to 3.75–4.00%, citing persistently elevated inflation. As rates remained unchanged for most of the third quarter, its impact on NII is likely to have been limited. Meanwhile, growth in interest-earning assets, disciplined deposit pricing and stable funding costs are expected to have supported FITB’s NII in the to-be-reported quarter.
Fifth Third expects NII to increase at the upper end of its 2–2.5% range on a sequential basis in the third quarter of 2026.
The Zacks Consensus Estimate for NII is pegged at $1.93 billion, indicating a 25.8% sequential increase.
Non-Interest Revenues: Global mergers and acquisitions (M&A) activity moderated in the third quarter of 2026 as geopolitical uncertainty, elevated inflation, a persistent backlog of private equity exits and higher interest rates continued to weigh on deal-making. Despite these challenges, strategic buyers continued to pursue transactions to expand scale and strengthen operational resilience, supporting advisory activity.
Continued demand for M&A advisory services is expected to have supported FITB’s advisory and capital markets fees, contributing to growth in commercial banking revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for commercial banking revenues is pegged at $127.2 million, indicating a 1.8% sequential rise.
Mortgage activity remained challenging in the third quarter of 2026, with mortgage rates hovering near 7% and affordability constraints weighing on both purchase and refinancing activity. Nevertheless, FITB’s strategic focus on expanding its mortgage lending business, increasing market share and deepening customer relationships may have provided some support to its mortgage banking income in the to-be-reported quarter.
The Zacks Consensus Estimate for mortgage banking income is pegged at $44.2 million, indicating a 13.3% increase from the prior quarter’s reported figure.
The Zacks Consensus Estimate for wealth and asset management revenues is pegged at $263.2 million, indicating a 2.8% increase from the prior quarter’s actual level.
Management expects non-interest income to increase at the upper end of the 1-3% sequential growth range in the third quarter of 2026.
The Zacks Consensus Estimate for non-interest income is pegged at $1.1 billion, which indicates a nearly 1% sequential rise.
Expenses: The company’s continued investments in technology, branch expansion and the Comerica integration are likely to have kept expenses elevated in the to-be-reported quarter. However, ongoing expense-management efforts and the expense synergies from the Comerica integration are likely to have provided some relief during the quarter to be reported.
Management expects adjusted expenses to decline at the lower end of its prior guidance range of 1–2% sequentially.
Asset Quality: Ongoing inflationary pressures and elevated borrowing costs may have strained borrowers’ repayment capacity in the third quarter of 2026. Still, favorable credit trends and continued loan demand are likely to have supported Fifth Third’s asset quality. As such, the company is less likely to have maintained elevated reserves during the quarter.
The Zacks Consensus Estimate for non-performing assets is pegged at $1.1 billion, representing an 14.5% decline from the prior quarter's reported figure.
What the Zacks Model Reveals for FITBOur proven model predicts an earnings beat for Fifth Third this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.
FITB’s Earnings ESP: The Earnings ESP for Fifth Third is +0.89%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank of Fifth Third: The company currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for FITB’s third-quarter earnings has remained unchanged at $1.09 per share over the past seven days. The figure indicates an increase of 17.20% from the year-ago quarter.
The consensus estimate for third-quarter revenues is pegged at $3.34 billion, suggesting a rise of 45.23% from the year-ago reported figure.
Stocks That Warrant a LookHere are a couple of other bank stocks that you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this time around.
The Earnings ESP for BOK Financial Corporation (BOKF - Free Report) is +0.59% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is slated to report its third-quarter 2026 results on Oct. 19, 2026. Over the past seven days, the Zacks Consensus Estimate for BOKF’s quarterly earnings has remained unchanged at $2.54 per share.
KeyCorp (KEY - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 20. The company has an Earnings ESP of +0.44% and a Zacks Rank #3 at present.
Quarterly earnings estimates for KEY have remained unchanged at 46 cents per share over the past week.
Fifth Third Bancorp očekává za čtvrtletí zisk na akcii (EPS) ve výši 1,09 USD, což představuje meziroční nárůst o 17,2 %, a tržby ve výši 3,34 miliardy USD, tedy růst o 45,2 %.
Fifth Third Bancorp (FITB - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on October 19, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $1.09 per share in its upcoming report, which represents a year-over-year change of +17.2%.
Revenues are expected to be $3.34 billion, up 45.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.73% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Fifth Third Bancorp?For Fifth Third Bancorp, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.89%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Fifth Third Bancorp will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Fifth Third Bancorp would post earnings of $0.98 per share when it actually produced earnings of $1.02, delivering a surprise of +4.08%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Fifth Third Bancorp appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerM&T Bank Corporation (MTB - Free Report) , another stock in the Zacks Banks - Major Regional industry, is expected to report earnings per share of $4.98 for the quarter ended September 2026. This estimate points to a year-over-year change of +2.3%. Revenues for the quarter are expected to be $2.54 billion, up 1% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for M&T Bank has been revised 1.2% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.73%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that M&T Bank will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Fifth Third Bancorp (NYSE:FITB) will release its third-quarter earnings report before the opening bell on Monday, Oct. 19.
Analysts expect the Cincinnati, Ohio-based company to report quarterly earnings of 81 cents per share, down from 91 cents per share in the year-ago period. The consensus estimate for FITB’s quarterly revenue is $3.34 billion. It reported $2.31 billion last year, according to Benzinga Pro.
On Sept. 17, Fifth Third Bancorp increased its quarterly dividend from 40 cents to 42 cents per share.
Fifth Third Bancorp shares gained 1.2% to close at $50.70 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
UBS analyst Erika Najarian maintained a Buy rating and cut the price target from $65 to $63 on Oct. 5, 2026. This analyst has an accuracy rate of 63%. JP Morgan analyst Vivek Juneja maintained an Overweight rating and cut the price target from $62 to $58 on Oct. 2, 2026. This analyst has an accuracy rate of 57%. Evercore ISI Group analyst John Pancari maintained an In-Line rating and slashed the price target from $61 to $57 on Oct. 1, 2026. This analyst has an accuracy rate of 61%. Truist Securities analyst Brian Foran maintained the stock with a Buy rating and lowered the price target from $64 to $63 on Sept. 23, 2026. This analyst has an accuracy rate of 61%. B of A Securities analyst Ebrahim Poonawala maintained a Buy rating and raised the price target from $63 to $65 on July 20, 2026. This analyst has an accuracy rate of 67%. Considering buying FITB stock? Here’s what analysts think:
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Fifth Third Bancorp oznámila předčasné splacení všech nesplacených seniorních dluhopisů s pevnou/plovoucí sazbou 1,707 % splatných v roce 2027 v objemu 500 milionů USD. Splacení proběhne 1. listopadu 2026 za 100 % jistiny plus naběhlý a neuhrazený úrok.
CINCINNATI--(BUSINESS WIRE)--Fifth Third Bancorp (NYSE: FITB) today announced that it has submitted a redemption notice to the trustee for redemption of all of its outstanding 1.707% Fixed Rate/Floating Rate Senior Notes due 2027 (CUSIP 316773 DD9) issued in the principal amount of $500 million. The notes will be redeemed on November 1, 2026 pursuant to their terms and conditions for an amount equal to 100% of the principal amount plus accrued and unpaid interest thereon to, but excluding, the redemption date. The redemption price will become due and payable on the redemption date.
About Fifth Third
Fifth Third is a bank that's as long on innovation as it is on history. Since 1858, we've been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it's one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere's World's Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is to be the one bank people most value and trust.
Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank, and its common stock is traded on the New York Stock Exchange under the symbol "FITB." Investor information and press releases can be viewed at www.53.com. Deposit and credit products provided by Fifth Third Bank, National Association. Member FDIC.
Fifth Third Bancorp čeká ve 3. čtvrtletí NII i neúrokové výnosy na horní hraně dřívějšího výhledu. Marže má zůstat v pásmu středních 3,30 %, s prostorem téměř ke 3,40 %.
Key Takeaways Fifth Third expects Q3'26 NII and non-interest income near the high end of prior guidance.FITB sees NIM in the mid-3.30% range, with room to approach 3.40% as cash moves into earning assets.Wealth management, commercial payments and capital markets are expanding FITB's fee revenue mix. Fifth Third Bancorp (FITB - Free Report) is tracking toward a strong third quarter, with management expecting net interest income (NII) and non-interest income at the upper end of its prior guidance ranges, while expenses are trending toward the lower end. At the Barclays 24th Annual Global Financial Services Conference, CFO Bryan Preston said that the quarter was “coming together nicely,” with loan growth tracking as expected and deposit growth coming in stronger than anticipated.
For the third quarter, FITB had guided for NII to increase 2-2.5% sequentially from the second-quarter baseline of $2.22 billion, while non-interest income was expected to rise 1-3% from $1.04 billion. Its non-interest expenses were projected to decline 1-2% from $1.86 billion.
The improved NII outlook reflects continued earning-asset growth, fixed-rate asset repricing and strong deposit generation. Following the Comerica acquisition, FITB deliberately shifted toward a more asset-sensitive balance sheet. Preston described the bank as “fairly well positioned” for a higher-rate environment, while continued growth in earning assets is providing an additional lift to NII. Management expects third-quarter net interest margin (NIM) to remain in the mid-3.30% range, with room to reach nearly 3.40% as cash accumulated during the Comerica conversion is redeployed into earning assets.
Fee income is adding another layer to revenue growth. Management noted that wealth management and commercial payments have reached more than $1 billion in annualized revenue, with both businesses likely to sustain high-single-digit growth in the near term. Capital markets are also generating nearly $600 million on an annualized basis, with an opportunity to grow toward a $1 billion business over time.
With the Comerica conversion largely complete, FITB can focus on acquiring new customers and deepening existing relationships across lending, deposits and capital markets, further diversifying its revenue mix. The strength in these businesses, along with the expected improvement in NII, is likely to drive higher revenue in the third quarter. Reflecting this momentum, the Zacks Consensus Estimate of FITB’s 2026 revenue indicates a year-over-year rise of 42.5%.
Revenue Estimates
Image Source: Zacks Investment Research
Outlook Updates From Other Banks at Barclays ConferenceOther banks that updated their outlooks around the same conference include KeyCorp (KEY - Free Report) and Huntington Bancshares (HBAN - Free Report) .
KeyCorp’s outlook has improved, with 2026 revenues now expected to increase approximately 8%, up from the prior guidance of 7-8%. The increase is being driven by higher fee income, with non-interest income now projected to grow 4-5%, compared with the previous 3-4% outlook. KeyCorp continues to expect NII to increase 9-11%, supported by loan growth, deposit trends and the repricing of fixed-rate assets.
In contrast, Huntington Bancshares lowered its 2026 NII growth outlook to approximately 35% from 39-43%, which could weigh on revenue growth amid higher deposit costs, competitive pricing and weaker loan volumes. However, stronger noninterest income is expected to partly offset the NII pressure, with Huntington now projecting fee income growth toward the upper end of its previous 31-33% range.
FITB’s Price Performance & Zacks RankIn the past six months, Fifth Third’s shares have gained 16.3% compared with the industry’s growth of 18.1%.
Price Performance
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fifth Third Bancorp po dokončení konverze Comerica o víkendu Labor Day očekává, že třetí čtvrtletí uzavře na horní hraně výhledu úrokových výnosů i poplatkových příjmů a na spodní hraně výhledu nákladů. Banka zároveň hlásí silnější růst vkladů a nižší odliv klientů.
Wintrust: A Quiet Regional Bank Posting Loud ResultsFifth Third Bancorp NASDAQ: FITB said it is tracking toward the favorable ends of its third-quarter guidance ranges following the completion of its Comerica conversion over Labor Day weekend, with executives citing stronger deposit growth, stable customer retention and expense savings that are arriving faster than initially expected.
Speaking at Barclays’ Global Financial Services Conference, Chief Financial Officer Bryan Preston said the bank expects to finish the quarter at the upper end of its net interest income and fee-income guidance, at the lower end of its expense guidance and near the middle of its expected charge-off range.
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MarketBeat Week in Review – 06/01 - 06/05“Quarter’s coming together nicely,” Preston said. “Loans are coming in as expected, and we’ve seen quite a strong quarter from a deposit growth perspective as well.”
Preston said the company remains positioned to meet the financial objectives associated with the Comerica transaction, including a return on tangible common equity above 19% and a run-rate efficiency ratio of 53% by 2027.
Comerica conversion completed Fifth Third’s Big Bet Is OnChief Operating Officer Jamie Leonard called the Labor Day conversion the most complicated and largest transaction in Fifth Third’s history, but said the system migration was completed successfully. About 600,000 customers and nearly 300 branches were moved onto Fifth Third’s platform, according to the discussion.
Leonard said the conversion included core systems and employee infrastructure, while the wealth conversion is scheduled for Halloween and the human-resources systems conversion is planned for Jan. 1.
“I think this conversion was as close to perfect as I have seen at Fifth Third,” Leonard said, noting he has participated in nine bank conversions during his 27-year career. He said a lightning strike that damaged circuitry at one branch was among the limited operational issues encountered.
Customer activity following the conversion has been encouraging, Leonard said. The bank recorded 15% fewer inbound calls on the first Friday after the Comerica conversion than it received during the comparable period following its MB conversion in 2019, despite having a larger customer base and longer call-center hours.
Customer attrition has also remained below expectations. Preston said gross commercial attrition continues to run below 1%, while consumer and small-business attrition has been stable and muted. On a net basis, both the commercial and consumer businesses acquired through Comerica have grown over the past year, he said.
Expense savings and growth investment Fifth Third reaffirmed its target for $850 million of annual run-rate expense synergies from Comerica by 2027. Leonard said the bank expects to achieve that amount and indicated gross expense savings are likely to exceed the stated target. Preston later said gross savings are “probably north of $900 million” at this point.
Rather than directing all incremental savings to the bottom line, management said it plans to reinvest in expansion opportunities, particularly in Texas, California and the broader Southwest. Those investments could include branches, marketing, middle-market and wealth bankers, capital-markets personnel and treasury-management capabilities.
Preston said the 53% efficiency ratio remains an appropriate long-term target because it provides capacity for continued investment while supporting industry-leading returns. If growth opportunities do not materialize as expected, more savings could flow to earnings, he added.
Revenue opportunities in deposits, lending and consumer banking Management reiterated its expectation for more than $500 million in revenue synergies over three to five years. Preston said near-term opportunities include deposit campaigns, middle-market lending, asset-based lending, equipment finance and capital-markets services. Longer-term opportunities include wealth-management expansion and development of an innovation-banking business built on Comerica’s technology and life-sciences foundation.
Leonard said the most immediate consumer revenue opportunities are mortgage lending, home equity, investment services and preferred banking. Fifth Third expects to generate roughly five times the mortgage volume Comerica produced in 2025, supported by the hiring of 40 mortgage loan officers, he said.
The company is also accelerating its de novo branch strategy. Leonard said Fifth Third plans to open 55 branches in the Southeast this year, followed by 100 branches next year, split evenly between the Southeast and Southwest. The first Southwest wave is expected to include 150 locations, with 60 each in Dallas and Houston and the remaining locations in Austin.
Fifth Third’s existing Florida network has reached 218 branches and $13 billion in deposits, Leonard said, and the company views the state as a continuing growth opportunity. The bank’s de novo branches opened from 2018 through the end of 2025 have reached 125% of their deposit goal, he added.
Balance sheet, credit and capital outlook Preston said net interest margin should remain in the mid-3.30% range during the third quarter before moving toward the 3.40% exit-rate target previously discussed by management. Strong deposit growth has temporarily increased cash balances, including approximately $2 billion of Comerica sweep balances added during the transition, he said.
Management described credit conditions as broadly healthy. Preston said commercial customers remain liquid and that Fifth Third’s prime and super-prime consumer lending focus has limited consumer credit pressure. The bank continues to avoid meaningful participation in non-depository financial institution lending and AI data-center lending, citing concerns about leverage, transparency and concentration risk.
On capital allocation, Preston said Fifth Third’s priorities remain a stable dividend and investment in organic growth. He said the company expects to return to a more normalized share-repurchase program in the fourth quarter.
Executives also said future acquisitions would need to accelerate the company’s existing strategy and be financially compelling. “M&A is not a strategy,” Preston said. “M&A has to accelerate the strategy.”
About Fifth Third Bancorp (NASDAQ:FITB)Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. Through its principal subsidiary, Fifth Third Bank, the company provides banking and financial services to individuals, businesses, governments and institutional clients.
Its offerings include checking and savings accounts, mortgages, home equity loans, consumer lending, credit cards, commercial loans, treasury management and other business banking services. Fifth Third also provides wealth management, investment advisory, brokerage, trust and asset-management services, as well as capital markets and investment banking capabilities for corporate and institutional customers.
Fifth Third Bank operates through a branch and digital banking network primarily serving communities across the Midwest and Southeast, including markets in Ohio, Michigan, Florida, Georgia, Illinois, Indiana, Kentucky, North Carolina, South Carolina, Tennessee and West Virginia.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Fifth Third Bancorp (FITB) zvýšila čtvrtletní dividendu o 5 % na 42 centů na akcii, už pojedenácté v řadě. Odkupy akcií zůstávají kvůli integraci Comerica pozastavené.
Key Takeaways Fifth Third raised its quarterly dividend 5% to 42 cents per share, marking 11 straight annual increases.FITB's buybacks remain paused during the Comerica integration, with repurchases expected to resume in Q4'26.FITB's 9.93% CET1 ratio and $23.7 billion liquidity support dividends, growth and future buybacks. Fifth Third Bancorp (FITB - Free Report) declared a quarterly cash dividend of 42 cents per share for the third quarter of 2026, representing a 5% increase from the prior payout. The dividend will be paid on Oct. 15, 2026, to shareholders of record as of Sept. 30, 2026.
The increase marks FITB’s 11th consecutive annual increase in its common dividend, extending its consistent record of shareholder distributions. Prior to this, the company raised its dividend by 8.1% to 40 cents per share in September 2025. Overall, the dividend has grown at an annualized rate of 6.9%.
The company currently has a payout ratio of nearly 41%. Based on yesterday’s closing price of $53.27, its dividend yield stands at around 3%, above the industry average of 2.8%. The higher dividend is supported by a solid capital position. As of June 30, 2026, FITB’s common equity Tier 1 (CET1) ratio stood at 9.93%, providing a strong capital base to support business growth and shareholder distributions.
Dividend Yield
Image Source: Zacks Investment Research
While the dividend continues to grow, share repurchases remain on hold as FITB focuses on integrating Comerica, which it acquired in February 2026. The company’s board authorized a $100 million share repurchase plan in June 2025, of which approximately $93.1 million remained available as of June 30, 2026.
Management views the pause as temporary, with share repurchases serving as a residual use of capital after funding the dividend and organic growth. At the recent Barclays 24th Annual Global Financial Services Conference, COO Jamie C. Leonard said that FITB expects to return to a more normalized repurchase program in the fourth quarter. With the Comerica technology and brand conversion now complete and the bank on track to achieve an $850 million annualized expense-synergy run-rate by the fourth quarter, lower integration-related demands could provide greater capacity for repurchases.
The company’s solid liquidity position adds another layer of financial flexibility. As of June 30, 2026, the company’s total debt stood at $22.3 billion, including $4.6 billion of short-term borrowings, while liquidity (including cash and due from banks and other short-term investments) totaled $23.7 billion. This provides an additional buffer as the company balances integration needs, organic investment and capital distributions.
Overall, FITB’s latest dividend increase reinforces its commitment to a steadily growing payout, while the buyback pause reflects the near-term demands of the Comerica integration. If integration savings materialize as planned, the expected return to a more normalized repurchase program in the fourth quarter could provide an additional avenue for capital returns.
How Do Other Banks Compare in Terms of Dividend Payouts?Similar to FITB, other banks, such as U.S. Bancorp (USB - Free Report) and Wells Fargo (WFC - Free Report) , have also increased their dividends while maintaining share repurchase programs as part of their capital allocation strategies.
U.S. Bancorp raised its quarterly common stock dividend by 3.8% to 54 cents per share in September 2026. The bank has also maintained a $5-billion share repurchase authorization, with nearly $3.9 billion remaining as of June 30, 2026. U.S. Bancorp’s CET1 ratio stood at 10.8% at the end of the second quarter, above management’s pro forma target of around 10%, supporting its ability to balance shareholder distributions with investments in business growth.
Wells Fargo also increased its third-quarter 2026 common stock dividend by 11% to 50 cents per share in July 2026. In April 2025, its board authorized an additional $40 billion share repurchase program, with approximately $22.7 billion remaining under the authorization as of June 30, 2026. Further, Wells Fargo’s CET1 ratio stood at 10.3%, within management’s target range, supporting its capacity to return capital to shareholders while continuing to invest in its business.
FITB’s Price Performance & Zacks RankIn the past six months, Fifth Third’s shares have gained 22% compared with the industry’s growth of 21.3%.
Price Performance
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fifth Third je na cestě k ročním nákladovým synergiím ve výši 850 milionů USD do 4. čtvrtletí 2026. Zároveň očekává více než 500 milionů USD ve výnosových synergiích z úvěrů, vkladů a cross-sellingu.
Key Takeaways Fifth Third remains on track for $850 million in annualized expense synergies by Q4'26.FITB plans to accelerate branch openings and invest in the Southwest and California to deepen relationships.More than $500 million in revenue synergies could come from lending, deposits and cross-selling. Fifth Third Bancorp (FITB - Free Report) is moving into the next phase of its Comerica integration, with management now focused on converting cost savings into growth opportunities. Speaking at the Barclays 24th Annual Global Financial Services Conference, CFO Bryan Preston reaffirmed that FITB remains on track to deliver $850 million in annualized expense synergies by the fourth quarter of 2026, with the savings expected to support earnings in 2027.
Rather than allowing the full benefit to flow through earnings, Fifth Third plans to reinvest a portion in branches, marketing and sales, particularly across the Southwest and California. Management plans to accelerate branch openings to roughly 100 annually from about 50. This investment is intended to deepen customer relationships and strengthen the bank's presence in key growth markets. Fifth Third plans to open 150 new financial centers in Texas by 2029 and is also targeting approximately 1,750 branches by 2030.
The update comes shortly after the completion of the Comerica technology and brand conversion of approximately 600,000 Comerica customer accounts and 293 banking centers on Sept. 8. With the conversion complete, FITB now has a unified platform supporting more than $300 billion in assets, nearly 1,500 branches and operations across 17 of the 20 fastest-growing large U.S. metropolitan areas. This expanded footprint gives the bank greater scope to deepen relationships with former Comerica customers by offering its broader consumer, commercial, payments and wealth-management capabilities.
Beyond cost savings, management expects more than $500 million in revenue synergies over the next three to five years. The opportunities span commercial and consumer businesses, with the Comerica franchise adding a commercial loan portfolio that represents nearly 40% of FITB’s total commercial loan book. The bank expects to leverage this expanded franchise to drive deposit growth and increase middle-market lending, asset-based lending, equipment finance and capital markets activity. In the consumer business, the company sees opportunities to cross-sell mortgage, home-equity and wealth-management products to the expanded customer base.
With the major integration milestone complete and expense synergies running ahead of the original target, Comerica is becoming a broader growth platform for Fifth Third. The combination of cost savings, reinvestment in key markets and expanded cross-selling opportunities could strengthen the bank’s earnings capacity over time. The key factor to monitor will be how effectively FITB converts these investments into sustained deposits, loans, fee income and operating leverage.
How Other Banks Are Expanding Their U.S. Footprint
PNC Financial (PNC - Free Report) and Banco Santander (SAN - Free Report) are also expanding their U.S. banking franchises through strategic acquisitions, strengthening scale, geographic reach and product capabilities.
PNC Financial completed its acquisition of FirstBank in January 2026 and converted approximately 780,000 customers, more than 1,600 employees and all 95 branches in June 2026. The deal added $26 billion of assets, $16 billion of loans and $23 billion of deposits at closing, while more than tripling PNC Financial’s branch network in Colorado and expanding its Arizona presence to more than 70 locations.
Banco Santander completed its $12.3 billion acquisition of Webster Financial in August 2026, creating a combined U.S. franchise with $327 billion of assets, $185 billion of loans and $172 billion of deposits. The transaction strengthens Banco Santander’s Northeast presence and adds Webster’s commercial banking and healthcare financial services capabilities, while it expects about $800 million in annual pre-tax cost synergies and 7-8% earnings per share accretion by 2028.
FITB’s Price Performance & Zacks RankIn the past six months, Fifth Third’s shares have gained 19.4% compared with the industry’s growth of 21.4%.
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fifth Third Bancorp (FITB) plánuje v Texasu investovat téměř 1 miliardu USD během příštích pěti let a do roku 2029 otevřít 150 nových finančních center. Po akvizici Comerica tak chce posílit vklady, úvěry i dlouhodobé výnosy.
Key Takeaways FITB plans to invest nearly $1 billion in Texas and open 150 new financial centers by 2029.The Comerica acquisition expanded FITB's footprint across Texas and other high-growth U.S. markets.A larger Texas network will likely aid deposit growth, lending, cross-selling and long-term revenue growth. Fifth Third Bancorp (FITB - Free Report) is intensifying its expansion in Texas, with plans to invest nearly $1 billion in the state over the next five years. The move reflects the bank’s broader strategy of expanding its presence in high-growth U.S. markets to drive long-term growth.
Texas has emerged as a key market for FITB given its strong business activity, population growth and investment potential. The bank gained an important foothold in the state through its February 2026 acquisition of Comerica. This expanded the company’s presence across Texas, the Southeast and California and gave it access to 17 of the 20 fastest-growing large U.S. markets.
Fifth Third is now building on that footprint through an aggressive branch expansion. The bank plans to open 150 new financial centers across Texas by 2029, while 106 existing Comerica financial centers will convert to the Fifth Third brand on Sept. 8. Together, these locations will create a network of more than 250 financial centers and position it among the top four banks by location share in Dallas, Houston and Austin.
The latest dual listing on NYSE Texas also complements FITB’s growth in the state. Following the move of its primary listing from Nasdaq to the New York Stock Exchange (NYSE) in June 2026, the bank will also begin trading on NYSE Texas under the same FITB ticker. While the listing itself is not a direct earnings catalyst, it could increase the bank’s visibility among Texas-based investors and businesses, underscoring its growing commitment to the state.
The larger branch network in Texas could help Fifth Third attract deposits and expand lending relationships, while its commercial banking presence could create additional cross-selling opportunities. The bank opened its first Texas financial center in Frisco in April 2026 and plans to establish its Texas regional headquarters in Dallas. These efforts also align with the company’s broader branch strategy, which targets approximately 1,750 locations by 2030 across 17 of the 20 fastest-growing large U.S. markets.
Overall, Texas is becoming an increasingly important growth opportunity for FITB, supported by its established Comerica footprint, significant new investment and branch expansion. The larger presence in Dallas, Houston and Austin could help the company to deepen customer relationships and support long-term deposit, lending and revenue growth.
How Are Other Banks Scaling in Texas?Similar to FITB, other banks like Huntington Bancshares (HBAN - Free Report) and Prosperity Bancshares (PB - Free Report) are expanding their presence in Texas through acquisitions and branch expansion.
Huntington Bancshares strengthened its Texas franchise through the October 2025 acquisition of Veritex Holdings and the February 2026 merger with Cadence Bank, expanding its presence in Dallas/Fort Worth, Houston and other Southern markets. The transactions also increased its branch network to nearly 1,400 locations across 21 states. Huntington Bancshares expects the Cadence and Veritex integrations to support loan and deposit growth, while cost synergies are expected to bolster profitability.
Prosperity Bancshares has similarly expanded its Texas footprint through acquisitions. It completed its merger with Stellar Bancorp on July 1, 2026, strengthening its presence in Houston, Beaumont, East Texas and Dallas. Earlier, Prosperity Bancshares acquired American Bank Holding Corporation in January 2026 and Southwest Bancshares in February 2026, adding deposits, loans and banking offices in key Texas markets. The combined franchise is expected to enhance scale and create additional revenue and cost synergies.
FITB’s Price Performance & Zacks RankIn the past six months, FITB shares have gained 10.6% compared with the industry’s growth of 18.1%.
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fifth Third začala převádět účty Comerica na své produkty a dokončení migrace plánuje na 8. září. Po únorovém uzavření fúze jde o další krok integrace.
Fifth Third Bank sent personalized welcome packages to Comerica customers this week and plans to complete the transition of current Comerica accounts to comparable Fifth Third products on Sept. 8, the bank said in a Thursday (July 30) press release.
These moves follow Fifth Third’s February announcement that its $10.9 million merger with Comerica closed, establishing the ninth-largest U.S. bank by assets.
Fifth Third’s welcome packages explain the transition, which in many cases will provide Comerica customers with opportunities to save money, access funds sooner and gain greater flexibility in how they manage their finances, according to the release.
For example, Fifth Third’s Momentum Checking account has no monthly maintenance fee and no minimum balance requirement, while several Comerica checking products charged monthly fees to customers who didn’tmeet certain balance or activity requirements, the release said.
In addition, Fifth Third offers tools designed to help customers avoid unnecessary overdraft charges, a free checking feature that allows eligible direct deposits to arrive up to two days early and eligible federal tax refunds to arrive up to five days early, a branch network that will span 15 states, more than 21,000 in-network ATMs, and an award-winning mobile banking experience, per the release.
“As customers receive their welcome package, we want them to understand that this transition is about receiving greater value in their everyday banking experience,” Ben Mendelsohn, director of product management at Fifth Third, said in the release.
Fifth Third Chairman, CEO and President Tim Spence said during a July 17 earnings call that the bank is seeing early results of its merger with Comerica, is making progress on the integration and is set to launch its system conversion over Labor Day weekend.
When Fifth Third announced in October 2025 that it planned to acquire Comerica, the bank said the merger would help with its expansion plans. Fifth Third said it anticipated that more than half its branches will be based in the Southeast, Texas, Arizona and California by 2030.
Fifth Third announced in June that it was rolling out Fifth Third for Business, a small business banking experience that combines digital lending, faster payments and local banker support.
Fifth Third Bancorp (FITB) Q2 2026 Earnings Call July 17, 2026 9:00 AM EDT
Company Participants
Matt Curoe - Senior Director of Investor Relations
Timothy Spence - Chairman, CEO & President
Bryan Preston - Executive VP & CFO
Conference Call Participants
Ebrahim Poonawala - BofA Securities, Research Division
Manan Gosalia - Morgan Stanley, Research Division
Ryan Nash - Goldman Sachs Group, Inc., Research Division
L. Erika Penala - UBS Investment Bank, Research Division
Gerard Cassidy - RBC Capital Markets, Research Division
Michael Mayo - Wells Fargo Securities, LLC, Research Division
John Pancari - Evercore ISI Institutional Equities, Research Division
Brian Foran - Truist Securities, Inc., Research Division
Benjamin Gerlinger - Citigroup Inc., Research Division
Kenneth Usdin - Bernstein Autonomous LLP
Christopher McGratty - Keefe, Bruyette, & Woods, Inc., Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to the Fifth Third's Second Quarter Earnings Call. [Operator Instructions]
I will now hand the conference over to Matt Curoe, Director of Investor Relations. Please go ahead.
Matt Curoe
Senior Director of Investor Relations
Good morning, everyone. Welcome to Fifth Third's Second Quarter 2026 Earnings Call. This morning, our Chairman, CEO and President, Tim Spence; and CFO, Bryan Preston, will provide an overview of our second quarter results and outlook.
Please review the cautionary statements in our materials, which can be found in our earnings release and presentation. These materials contain information regarding the use of non-GAAP measures and reconciliations to the GAAP results as well as forward-looking statements about Fifth Third's performance. These statements speak only as of July 17, 2026, and Fifth Third undertakes no obligation to update them. Following prepared remarks by Tim and Bryan, we will open up the call for questions.
With that, let me turn it over to Tim.
Timothy Spence
Chairman, CEO & President
Good morning, everyone, and thank you for joining us. At Fifth
Fifth Third Bancorp (FITB - Free Report) reported $3.28 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 46.1%. EPS of $1.02 for the same period compares to $0.90 a year ago.
The reported revenue represents a surprise of +0.88% over the Zacks Consensus Estimate of $3.25 billion. With the consensus EPS estimate being $0.98, the EPS surprise was +4.08%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Fifth Third Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio (FTE): 64.3% versus the three-analyst average estimate of 57.5%.Net interest margin (FTE): 3.4% versus the three-analyst average estimate of 3.4%.Total nonperforming assets: $1.24 billion compared to the $1.01 billion average estimate based on two analysts.Regulatory Capital Ratios - Tier 1 risk-based Capital: 10.8% versus 10.9% estimated by two analysts on average.Return on average common equity: 9.5% compared to the 10.5% average estimate based on two analysts.Book value per share: $35.56 versus $35.79 estimated by two analysts on average.Average Balance - Total interest-earning assets: $264.99 billion versus $266.2 billion estimated by two analysts on average.Regulatory Capital Ratios - Leverage: 9.2% versus the two-analyst average estimate of 9.3%.Tangible book value per share (including AOCI): $23.15 versus the two-analyst average estimate of $24.17.Return on average assets: 1.1% compared to the 1.2% average estimate based on two analysts.Tangible common equity (including AOCI): 7.3% compared to the 7.4% average estimate based on two analysts.Net charge-off ratio (NCO ratio): 0.3% compared to the 0.3% average estimate based on two analysts.View all Key Company Metrics for Fifth Third Bancorp here>>>
Shares of Fifth Third Bancorp have returned +12.6% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Fifth Third Bancorp oznámila za 2. čtvrtletí vyšší zisk, růst vkladů a pokrok v integraci Comerica. Zároveň zvýšila celoroční výhled čistého úrokového příjmu na 8,74 až 8,8 miliardy USD.
MarketBeat Week in Review – 06/01 - 06/05Fifth Third Bancorp NASDAQ: FITB reported second-quarter 2026 earnings that management said showed early benefits from its merger with Comerica, with executives pointing to stronger profitability, deposit growth in newer markets and progress toward planned cost savings.
The Cincinnati-based bank reported earnings per share of $0.83, or $1.02 excluding certain items outlined in its earnings release, Chairman, CEO and President Tim Spence said on the company’s earnings call. Spence said Fifth Third’s tangible book value per share increased 10% year-over-year, 1% sequentially and 7% since the Comerica transaction was announced nine months ago.
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Fifth Third’s Big Bet Is On“While we are still in the middle of integration and not every metric is yet where it will be, our trajectory and long-term potential are visible in this quarter’s results,” Spence said.
Profitability Improves as Comerica Integration Advances Fifth Third said adjusted return on tangible common equity improved to 19%, adjusted return on assets rose to 1.3% and the adjusted efficiency ratio improved to 57%. Spence said those results came even though most of the expected expense synergies from the Comerica deal have not yet been captured.
MarketBeat Week in Review – 01/19 - 01/23CFO Bryan Preston said second-quarter net interest income was $2.22 billion, while net interest margin expanded six basis points sequentially to 3.36%. Preston attributed three basis points of the margin expansion to the additional month of Comerica results, with the remainder coming from fixed-rate asset repricing, loan growth and deposit performance.
Preston said total adjusted non-interest expense was $1.86 billion, better than the company expected, as Fifth Third realized synergy benefits ahead of schedule. The quarter included $203 million in merger-related charges. The bank remains on track to deliver $850 million of annualized run-rate expense synergies in the fourth quarter, with systems conversion scheduled for Labor Day weekend.
Spence said in response to an analyst question that the company is “running a good bit ahead” of the $850 million synergy target, but added that management’s current plan is to redeploy savings above that level into revenue growth opportunities if the operating environment remains supportive.
Deposit Growth Led by Consumer and Southwest Markets Management highlighted deposit growth as a key theme in the quarter. Spence said end-of-period consumer and small business deposits increased 4% sequentially, driven by new customer acquisition. In the Southeast, consumer checking households grew 7% year-over-year, which Spence said was about four times the rate of underlying market growth.
In Comerica’s Texas, Arizona and California markets, checking households grew 4%, which Spence said marked the first net new household growth in several years. Those markets added $2.5 billion in deposits, more than double the $1 billion expectation management discussed on the prior earnings call.
Preston said average core deposits were $229 billion in the quarter, while period-end core deposits were $231 billion. Consumer deposits grew nearly $5 billion, offsetting an intentional reduction in higher-cost non-relationship deposits and normal commercial seasonality. Average non-interest-bearing balances were 28% of core deposits, up from 25% a year earlier.
Deposit costs declined during the quarter. Preston said total deposit costs fell four basis points sequentially to 1.54%, while interest-bearing deposit costs declined two basis points. He described the consumer deposit market as competitive and said it is becoming more expensive to grow deposits, but said Fifth Third continues to manage overall deposit costs through pricing and mix.
Loan Growth Broad-Based, Credit Trends Improve Period-end portfolio loans totaled $179 billion, up 1% sequentially. Preston said commercial loans rose $2 billion, or 2%, with production across middle market and corporate banking. Commercial line utilization was stable at 40.8%.
Spence said C&I loan growth was supported by both legacy Fifth Third and Comerica markets, with growth in Texas, California, Michigan and several specialty verticals, including environmental services, dealer services, and tech and life sciences. He said confidence among commercial clients improved broadly during the quarter, with demand stable and, in some cases, improving.
Consumer loan growth was led by home equity. Preston said home equity balances rose 3% sequentially, and Fifth Third was the No. 1 originator of home equity lines across its legacy footprint. He said the product maintained disciplined credit characteristics, with an average FICO score of 774 and a loan-to-value ratio of 63%.
Credit trends improved during the quarter. Preston said the net charge-off ratio fell seven basis points sequentially to 30 basis points, the lowest level since the second quarter of 2023. Commercial net charge-offs were 21 basis points, while consumer net charge-offs were 53 basis points. Non-performing assets were relatively stable, and commercial criticized assets declined during the quarter.
Fee Businesses Reach Milestones Fifth Third reported adjusted non-interest income of $1.04 billion, excluding security gains and other items. Management emphasized strength across wealth and asset management, commercial payments and capital markets.
Wealth and asset management revenue was $256 million, with total assets under management of $128 billion. Commercial payments revenue was $254 million, led by NewLine and core treasury services. NewLine fee revenue increased 35% year-over-year. Capital markets fees were $154 million, an annualized pace of about $600 million. Spence said commercial payments and wealth and asset management each reached a more than $1 billion annualized fee run rate during the quarter. He also said Fifth Third shipped the first Direct Express cards on its new platform, with 66,000 new beneficiaries and all participating federal agencies now live.
Guidance Raised for Net Interest Income and Fees Fifth Third raised its full-year net interest income guidance to a range of $8.74 billion to $8.8 billion. Preston said the outlook reflects the forward curve at the end of June, which assumed a 25-basis-point rate hike in September, as well as securities repositioning and new forward-starting received fixed swaps.
The company refined its average loan guidance to $174 billion to $176 billion, noting that the full-year average will include only 11 months of Comerica. Fifth Third also raised and narrowed full-year non-interest income guidance to $4.06 billion to $4.16 billion and lowered and narrowed full-year non-interest expense guidance to $7.22 billion to $7.26 billion, excluding acquisition-related charges.
For the third quarter, Fifth Third expects net interest income to grow 2% to 2.5% from the second quarter, average loans to rise about 1%, adjusted non-interest income to increase 1% to 3% and adjusted non-interest expense to decline 1% to 2%.
Preston said the bank’s common equity Tier 1 ratio ended the quarter at 9.93%, up four basis points sequentially. He said Fifth Third expects to resume regular quarterly share repurchases in the second half of the year, with a smaller amount in the third quarter and a more normalized pace of $200 million to $300 million per quarter in the fourth quarter.
“The second quarter turned the integration thesis into results,” Preston said. “The earnings power of the combined company isn’t a forecast anymore.”
About Fifth Third Bancorp (NASDAQ:FITB)Fifth Third Bancorp is a Cincinnati, Ohio–based bank holding company whose primary banking subsidiary operates as Fifth Third Bank. The company provides a broad range of financial services to individual consumers, small businesses, middle-market companies and large corporations. Its business mix includes retail and commercial banking, lending, payment and card services, treasury and cash management, and wealth management and investment advisory services delivered through a combination of branch locations, commercial offices and digital platforms.
On the consumer side, Fifth Third offers deposit accounts, consumer loans, mortgages, auto financing and credit card products, along with digital banking and mobile services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Fifth Third Bancorp (NYSE:FITB) will release its second quarter earnings report before the opening bell on Friday, July 17.
Analysts expect the Cincinnati, Ohio-based company to report quarterly earnings of 84 cents per share, down from 88 cents per share in the year-ago period. The consensus estimate for Fifth Third Bancorp’s quarterly revenue is $3.25 billion. It reported $2.25 billion last year, according to Benzinga Pro.
On June 17, Fifth Third announced the launch of an AI‑powered experience within its mobile app.
Shares of Fifth Third Bancorp fell 0.2% to close at $57.05 on Tuesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
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