Core Viewpoint - Fifth Third Bancorp (FITB) has shown strong performance over the past year, with shares increasing by over 13% [1] Group 1 - The company has successfully recovered from market turmoil experienced in late summer and early fall [1] - The analyst emphasizes a strategy of making contrarian bets based on macro views and stock-specific turnaround stories to achieve favorable risk/reward profiles [1]

Core Insights - Fifth Third Bancorp reported an earnings per share (EPS) of $1.04, exceeding the estimated $1.01, and revenue of approximately $2.34 billion, slightly above forecasts [1][6] Financial Performance - The bank's fourth-quarter profit increased due to a rise in interest income driven by stronger loan demand, contributing to the ability to exceed earnings expectations [2][6] - The company has consistently surpassed earnings estimates in the last four quarters with an average surprise of 4.52% [2] Financial Stability - Fifth Third Bancorp's net charge-off rate is recorded at 40 basis points, with commercial net charge-offs at 27 basis points [3] - The loan-to-core deposit ratio is 72%, and demand deposits grew by 4% year-over-year [3] - The Common Equity Tier 1 (CET1) ratio increased by 20 basis points to reach 10.77% [3][6] Valuation Metrics - The bank's price-to-earnings (P/E) ratio is approximately 13.58, and the price-to-sales ratio is about 2.53 [4] - The enterprise value to sales ratio is around 3.79, while the enterprise value to operating cash flow ratio is approximately 13.93 [4] Investment Indicators - Fifth Third Bancorp's earnings yield is about 7.36%, indicating the percentage of each dollar invested in equity that was earned by the company [5] - The debt-to-equity ratio is approximately 0.90, showing the proportion of debt used to finance the company's assets relative to shareholders' equity [5] - The current ratio is around 0.35, indicating the company's ability to cover its short-term liabilities with its short-term assets [5]

Core Insights - The company reported strong profitability metrics, including an adjusted return on assets of 1.41%, the highest since 2022, and an adjusted return on equity of 14.5% [1][2][7] - The bank returned $1.6 billion of capital to shareholders in 2025 and achieved a 21% year-over-year growth in tangible book value per share [1][7] - The merger with Comerica is set to close on February 1, 2026, with management targeting significant synergies and a robust financial outlook for 2026 [3][5][17] Financial Performance - Adjusted pre-provision and pre-tax earnings exceeded $1 billion, reflecting a 6% increase from the previous year [1] - Earnings per share were reported at $1.04, or $1.08 excluding certain items, with adjusted efficiency ratio at 54.3% [2][7] - Fourth-quarter net interest income reached $1.5 billion, up 6% year over year, with a net interest margin of 3.13%, an increase of 16 basis points [6][9] Growth and Expansion - The company highlighted branch expansion in the Southeast and continued investment in digital capabilities, alongside growth in commercial payments and wealth management [3][4] - Average loans grew by 5% year over year, with notable increases in middle market loans and consumer lending [9][12] - Wealth management fees increased by 13% year over year, driven by $11 billion in assets under management growth [19] Merger and Integration - The Comerica merger has received all necessary regulatory and shareholder approvals, with a focus on achieving $850 million in expense synergies and $500 million in revenue synergies over five years [5][17] - Systems conversion is anticipated around Labor Day 2026, with management indicating potential for exceeding initial synergy targets [18] Credit and Deposits - Net charge-offs were reported at 40 basis points, the lowest in seven quarters, with non-performing assets declining for three consecutive quarters [16] - Average core deposits rose by 1% year over year, driven by a 4% increase in demand deposit accounts [13] - Interest-bearing deposit costs decreased to 2.28%, down 40 basis points year over year, reflecting effective funding cost management [13] 2026 Outlook - The company expects net interest income for 2026 to be between $8.6 billion and $8.8 billion, with a projected increase in net interest margin of about 15 basis points [23] - Capital ratios are expected to remain strong, with CET1 at 10.8% at the end of 2025, and regular share repurchases anticipated to resume in the second half of 2026 [20]

Core Viewpoint - Fifth Third Bancorp is experiencing growing analyst confidence, reflected in an upward trend in its stock price target, and is expected to perform well in its upcoming financial results due to various positive factors [2][3][4]. Group 1: Company Overview - Fifth Third Bancorp is a financial services company based in Cincinnati, Ohio, offering services such as commercial banking, consumer lending, and wealth management [1]. Group 2: Stock Performance and Analyst Confidence - The consensus price target for Fifth Third Bancorp's stock has increased from $53.15 a year ago to $56, indicating a positive outlook among analysts [2]. - Analyst Erika Najarian from UBS has set a price target of $56, reflecting confidence in the company's potential performance [3][4]. Group 3: Upcoming Financial Results - The company is set to announce its fourth-quarter and full-year 2025 financial results on January 20, with expectations of benefiting from loan growth, stable funding costs, and increased fee income [3][6]. - There is a strong track record of Fifth Third Bancorp surpassing earnings expectations, suggesting it may exceed estimates in the upcoming report [4]. Group 4: Market Context and Challenges - Despite potential challenges from U.S. government funding strategies, Fifth Third Bancorp remains a strong contender in the financial sector [5][6].

Company Earnings Reports - 3M (MMM) reported Q4 earnings of $1.83 per share, slightly beating the Zacks consensus by $0.01, but revenues of $6.0 billion fell short of estimates of $6.08 billion, marking the 12th consecutive earnings beat, with both earnings and sales up year over year, yet shares are down -3.75% [4] - D.R. Horton (DHI) reported earnings of $2.03 per share, exceeding expectations of $1.95, and revenues of $6.89 billion surpassed estimates of $6.71 billion, indicating positive signs for the U.S. housing market, although shares are down -5.5% [5] - Fifth Third Bank (FITB) reported earnings of $1.12 per share and revenues of $2.34 billion, both outperforming expectations of $1.00 per share and $2.32 billion, marking 12 consecutive earnings beats, with shares down -1.5% but up +9% over the past year [6] Market Overview - Pre-market futures are declining due to global economic concerns, with the Dow down -700 points, S&P 500 down -106 points, and Nasdaq down -460 points, while bond yields have risen to +4.3% on the 10-year and +3.6% on the 2-year [3] - The upcoming earnings reports from Netflix (NFLX) and United Airlines (UAL) are anticipated, with NFLX expected to show +27.9% earnings growth year over year and UAL expected to report -8.6% earnings growth [7]

Core Insights - Fifth Third Bancorp (FITB) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.08, exceeding the Zacks Consensus Estimate of $1.01, and up from 90 cents in the prior-year quarter [1][2][8] - The company's net income available to common shareholders (GAAP basis) was $699 million, reflecting a 20% year-over-year increase [2] - Total quarterly revenues (FTE) reached $2.34 billion, an 8% increase year over year, surpassing the Zacks Consensus Estimate of $2.32 billion [3] Financial Performance - For 2025, total revenues (FTE) were $9.04 billion, a 6% increase year over year, also exceeding the Zacks Consensus Estimate of $9.01 billion [3] - Net interest income (NII) for the fourth quarter was $1.53 billion, up 6% year over year, driven by proactive deposit and wholesale funding management [4] - Non-interest income rose 11% year over year to $811 million, primarily due to increases in wealth and asset management, commercial payment, and consumer banking revenues [5] Expenses and Efficiency - Non-interest expenses increased 7% year over year to $1.31 billion, attributed to rising costs across all components [5] - The efficiency ratio improved to 55.8%, down from 56.4% in the year-ago quarter, indicating enhanced profitability [5] Loan and Deposit Trends - As of December 31, 2025, portfolio loans and leases slightly declined to $122.6 billion, while total deposits increased by 3% to $171.8 billion [6] - The provision for credit losses was reported at $119 million, down 34% from the previous year [7] Credit Quality - The total non-performing portfolio loans and leases decreased to $797 million, a 6.6% decline year over year [9] - Net charge-offs in the fourth quarter fell to $125 million, or 0.40% of average loans and leases, down from 0.46% in the prior-year quarter [9] Capital Position - The Tier 1 risk-based capital ratio was 11.82%, slightly down from 11.86% in the prior-year quarter, while the CET1 capital ratio increased to 10.77% from 10.57% [10] Strategic Outlook - The company anticipates closing its merger with Comerica on February 1, 2026, which is expected to enhance scale, profitability, and geographic reach [11]

Fifth Third Bancorp (NasdaqGS:FITB) Q4 2025 Earnings call January 20, 2026 10:00 AM ET Company ParticipantsMatt Curoe - Senior Director of Investor RelationsTim Spence - Chairman, CEO, and PresidentBryan Preston - CFOConference Call ParticipantsKen Usdin - Former AnalystEbrahim Poonawala - AnalystErika Najarian - AnalystMike Mayo - AnalystGerard Cassidy - AnalystManan Gosalia - AnalystScott Siefers - AnalystJohn Pancari - AnalystChristopher McGratty - AnalystOperatorThank you for standing by, and welcome to ...

Fifth Third Bancorp (NasdaqGS:FITB) Q4 2025 Earnings call January 20, 2026 10:00 AM ET Company ParticipantsMatt Curoe - Senior Director of Investor RelationsTim Spence - Chairman, CEO, and PresidentBryan Preston - CFOConference Call ParticipantsKen Usdin - Former AnalystEbrahim Poonawala - AnalystErika Najarian - AnalystMike Mayo - AnalystGerard Cassidy - AnalystManan Gosalia - AnalystScott Siefers - AnalystJohn Pancari - AnalystChristopher McGratty - AnalystOperatorThank you for standing by, and welcome to ...

Financial Data and Key Metrics Changes - The company reported earnings per share of $1.04, or $1.08 excluding certain items, with an adjusted return on equity of 14.5% and an adjusted return on assets of 1.41% [3][4] - Adjusted fourth quarter revenues rose 5% year over year, driven by a 6% increase in net interest income and a 13% increase in wealth and asset management fees [4][15] - The CET1 ratio increased to 10.8%, and tangible book value per share grew 21% year over year [4][25] Business Line Data and Key Metrics Changes - Average loans increased by 5% year over year, with consumer loans and middle market C&I loans both growing by 7% [4][15] - Wealth and asset management fees increased by 13%, with assets under management reaching $80 billion [9][20] - Commercial payments fees grew by 8% year over year, driven by core treasury management activity [20] Market Data and Key Metrics Changes - In the Southeast, the company opened 50 new branches, contributing to a 2.5% growth in net new consumer households year over year [5][19] - The Southeast consumer deposits increased by 4% sequentially, accounting for over 50% of total consumer deposit growth for the quarter [19][20] - The company achieved the number two origination market share in HELOC within its footprint, up from number four in the prior year [17] Company Strategy and Development Direction - The company is focused on stability, profitability, and growth, with a disciplined approach to operations and long-term investments [3] - The merger with Comerica is expected to close on February 1, 2026, with anticipated expense synergies of $850 million and revenue synergies of over $500 million over the next five years [10][11] - The company aims to accelerate retail deposit growth and improve the combined company's funding profile through targeted marketing [27][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertain environments and deliver strong shareholder returns [3][26] - The outlook for 2026 includes expectations for full-year net interest income to range between $8.6 billion and $8.8 billion, with a focus on improving the balance sheet [27][29] - Management noted that while 2025 was eventful, the company is pleased with its disciplined operating performance and ability to meet financial commitments [26] Other Important Information - The company shipped over 400 updates to its consumer mobile app in 2025, which was recognized as the top mobile banking app for user satisfaction among regional banks [5][6] - The net charge-off ratio was 40 basis points for the quarter, the lowest level in the past seven quarters, indicating improved asset quality [4][23] Q&A Session Summary Question: What are the biggest opportunities with Comerica? - Management highlighted immediate opportunities in leveraging Comerica's existing customer base and expanding into Texas markets, with a focus on innovation banking as a long-term opportunity [33][34] Question: How is the integration of Comerica progressing? - The integration is ahead of schedule, with the conversion date moved up to Labor Day from mid-October, allowing for earlier realization of revenue and expense synergies [41][43] Question: What is the outlook for C&I loan growth? - Management noted that while utilization dipped during the government shutdown, there has been a rebound, and C&I loan balances have increased since January 1 [45][46]

4Q25 Earnings Presentation Management does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Bancorp's control or cannot be reasonably predicted. For the same reas ...