Fifth Third(US:FITB) ZACKS·2026-01-15 16:40Core Viewpoint - Fifth Third Bancorp (FITB) is expected to report year-over-year growth in earnings and revenues for the fourth quarter and full year of 2025, with key drivers including net interest income (NII), fee income, and loan balances, although rising expenses and weak asset quality present challenges [1][10]. Group 1: Earnings and Revenue Expectations - FITB has a strong earnings surprise history, beating estimates in the last four quarters with an average surprise of 4.52% [2]. - The Zacks Consensus Estimate for fourth-quarter earnings is $1.01 per share, reflecting a 12.2% increase from the previous year [15]. - The consensus estimate for fourth-quarter revenues is $2.33 billion, indicating a 7.3% rise from the year-ago figure [15]. Group 2: Loan Growth and Net Interest Income - Overall loan demand remained resilient in Q4 2025, supporting FITB's loan growth, with expectations of a nearly 1% increase in total average loans and leases from the prior quarter [3]. - The Zacks Consensus Estimate for average interest-earning assets is $194.9 billion, suggesting a nearly 1% rise from the previous quarter [4]. - FITB anticipates fourth-quarter adjusted NII to be stable to up 1% sequentially, with a consensus estimate of $1.54 billion, indicating a nearly 1% increase [5]. Group 3: Non-Interest Revenues - Global mergers and acquisitions (M&As) rebounded in Q4 2025, likely boosting FITB's advisory revenues within commercial banking [6]. - The Zacks Consensus Estimate for commercial banking revenues is $97.7 million, reflecting a 12.3% sequential rise [7]. - The consensus estimate for mortgage banking income is $55.1 million, indicating a 5.1% decrease from the prior quarter [8]. Group 4: Expenses and Asset Quality - FITB's expenses are expected to rise due to investments in technology and customer experience initiatives, with adjusted non-interest expenses projected to increase by 2% sequentially [11]. - The net charge-off (NCO) rate is expected to be around 40 basis points, a decrease from 1.09% in the previous quarter [12]. - The Zacks Consensus Estimate for non-performing assets is $843.3 million, indicating a 4.7% rise from the prior quarter [13]. Group 5: 2025 Outlook - For the full year 2025, FITB expects adjusted NII to grow by 5.5%–6.5% year-over-year from $5.66 billion reported in 2024 [16]. - Average loans and leases are anticipated to increase by about 5% year-over-year [16]. - Non-interest income is projected to grow by 1%–2% year-over-year from $2.97 billion reported in 2024 [16].