Fifth Third Bancorp beats earnings estimates on Comerica integration

Investing.com -- On Monday, Fifth Third Bancorp (NYSE: FITB) reported third quarter adjusted earnings per share of $1.13, exceeding analyst estimates of $0.83 by $0.30.

Shares of the bank were mostly flat, edging down just 0.79% in pre-market trading following the results.

The bank posted reported EPS of $0.90 for the quarter ended September 30, 2026.

Net interest income increased 3% sequentially to $2.28 billion on a fully taxable-equivalent basis, driven by higher market rates, fixed-rate asset repricing and loan growth. Revenue rose 49% YoY to $3.28 billion, reflecting the addition of Comerica following the acquisition completed earlier this year. Net income available to common shareholders reached $828 million, up 36% from $608 million in the year-ago quarter.

"Fifth Third’s third quarter reflected the earnings power of the combined company," said CEO Tim Spence. "Even while integrating Comerica, our adjusted return on tangible common equity and efficiency ratio improved from the second quarter, and credit performance remained stable."

The bank completed the Comerica systems conversion with strong client and banker retention. FDIC data showed sustained deposit share gains in the Southeast and new gains in Comerica’s Michigan, Texas and California markets. Core deposits increased 3% sequentially to $236 billion, with the loan-to-core deposit ratio improving to 76% from 77% last quarter.

Credit quality remained resilient with net charge-offs of 0.31% of average portfolio loans, compared to 0.30% in the prior quarter and 1.09% in the year-ago period. The allowance for credit losses stood at 1.74% of total portfolio loans.

Average portfolio loans and leases totaled $179 billion, up 1% sequentially and 45% YoY, with the year-over-year growth primarily reflecting the Comerica acquisition. Commercial loans increased approximately $1.5 billion sequentially, while consumer loans remained broadly stable.

Noninterest expense of $2.05 billion decreased 3% from the prior quarter. Excluding certain items and non-qualified deferred compensation, adjusted noninterest expense declined 2% to $1.82 billion. The adjusted efficiency ratio improved to 54.6% from 57.1% in the second quarter.

The bank’s CET1 capital ratio increased to 10.02% from 9.93% in the prior quarter. Fifth Third did not repurchase common shares during the quarter.

Original Article

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