Fifth Third to Report Q2 Earnings: What's in Store for the Stock?

Core Viewpoint - Fifth Third Bancorp (FITB) is expected to report year-over-year growth in earnings and revenues for the second quarter of 2025, with key drivers being net interest income (NII) and loan balances, despite challenges in fee income and asset quality [1][10]. Financial Performance - The bank's earnings have consistently beaten estimates, with an average surprise of 3.45% over the last four quarters [2]. - Total average loans and leases are projected to increase by 1% from the previous quarter, estimated at $123 billion, supporting interest-earning assets [3]. - The Zacks Consensus Estimate for average interest-earning assets is $194.7 billion, indicating nearly 1% growth from the prior quarter [4]. Interest Income - Adjusted NII is expected to rise by 2-3% compared to the first quarter of 2025, with the Zacks Consensus Estimate for NII at $1.48 billion, reflecting a 3% sequential increase [5]. Non-Interest Revenues - Advisory revenues are anticipated to improve due to increased M&A activity, with commercial banking revenues estimated at $90.7 million, a 13.3% sequential rise [7]. - Mortgage banking income is expected to reach $59.7 million, suggesting a 4.7% increase from the previous quarter [8]. - Wealth and asset management revenues are projected at $171.2 million, indicating a slight decline from the prior quarter [9]. Expense Management - FITB expects adjusted non-interest expenses to decline by 5% sequentially, reflecting disciplined expense management [12]. Asset Quality - The bank is likely to maintain a modest reserve for potential delinquent loans, with the Zacks Consensus Estimate for non-performing assets at $920.7 million, a 9.5% decline from the previous quarter [13]. Earnings Estimates - The consensus estimate for earnings in the upcoming quarter is 87 cents, representing a 1.2% rise from the prior-year quarter, while revenues are expected to be $2.21 billion, a 6.4% increase year-over-year [15].