Fifth Third(US:FITB) ZACKS·2025-10-13 18:21Core Viewpoint - Fifth Third Bancorp (FITB) is expected to report year-over-year growth in earnings and revenues for the third quarter of 2025, with results influenced by net interest income, fee income, and loan balances, despite challenges from rising expenses and weak asset quality [1][9]. Group 1: Earnings and Revenue Expectations - The Zacks Consensus Estimate for third-quarter earnings is 87 cents, reflecting a 2.4% increase from the prior year [15]. - The consensus estimate for revenues is $2.29 billion, indicating a 7.4% rise from the year-ago figure [15]. - Non-interest income is projected to rise by 5-7% compared to the second quarter, with the Zacks Consensus Estimate at $769.4 million, a 2.6% sequential increase [10]. Group 2: Loan and Interest Income - Overall loan demand remained strong in Q3 2025, contributing to FITB's expected loan growth, with total average loans and leases anticipated to grow nearly 1% from the previous quarter, estimated at $124.9 billion [3]. - The adjusted net interest income (NII) is expected to rise 1% sequentially, with the Zacks Consensus Estimate at $1.52 billion, a 1.9% increase [5]. Group 3: Non-Interest Revenues - Advisory revenues are expected to improve due to a rebound in global mergers and acquisitions, supporting FITB's commercial banking revenues [6]. - The Zacks Consensus Estimate for commercial banking revenues is $91.5 million, indicating a 15.8% sequential rise [7]. - Mortgage banking income is projected to decline, with the estimate at $53.4 million, a 4.7% decrease from the prior quarter [8]. Group 4: Expenses and Asset Quality - FITB's expenses are expected to remain elevated due to investments in technology and customer experience initiatives, with adjusted non-interest expenses anticipated to rise 1% sequentially to approximately $1.3 billion [11][12]. - The Zacks Consensus Estimate for non-performing assets is $892.6 million, reflecting a 2.2% decline from the previous quarter [13].