Key Takeaways First Horizon posted Q2 EPS of 45 cents, topping estimates and rising from 36 cents a year earlier. Revenues rose 1.8% to $830M as NII grew nearly 2% and expenses declined 1.8% y/y. FHN loans rose 1.7% and deposits grew 2.1%, while credit loss provisions dropped 45% y/y.First Horizon Corporation’s (FHN) second-quarter 2025 adjusted earnings per share (excluding notable items) of 45 cents surpassed the Zacks Consensus Estimate of 41 cents. This compares favorably with 36 cents in the year-ago ...

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].

Core Viewpoint - Citizens Financial Group (CFG) reported strong adjusted earnings per share of 77 cents for Q1 2025, exceeding estimates and reflecting an 18.4% year-over-year increase, driven by higher non-interest income and reduced expenses, despite challenges from lower net interest income and declining loan balances [1][2][10] Financial Performance - Net income on a GAAP basis was $373 million, a 12% increase from the prior year [2] - Total revenues for the quarter were $1.94 billion, slightly missing estimates by 0.3% and showing a 1.2% decline year-over-year [2] - Net interest income (NII) decreased by 4% year-over-year to $1.39 billion, attributed to a lower net interest margin and a decline in average interest-earning assets [3] - The net interest margin (NIM) shrank by 1 basis point to 2.90% [3] - Non-interest income rose by 5% year-over-year to $544 million, driven by increased service charges, wealth fees, and mortgage banking income [4] - Non-interest expenses decreased by 3% to $1.31 billion, reflecting lower costs in outside services and occupancy [5] Loan and Deposit Trends - Total loans and leases as of March 31, 2025, were $137.6 billion, down 1.1% from the prior year [6] - Total deposits increased by 1.6% to $177.6 billion [6] Credit Quality - Provision for credit losses was $153 million, down 10.5% year-over-year [7] - The allowance for credit losses decreased by 4% to $2.21 billion [7] - Net charge-offs increased by 10% to $200 million [7] - Non-accrual loans and leases rose by 8% to $1.58 billion [7] Capital Position - The tier 1 leverage ratio improved to 9.4%, up from 9.3% in the prior year [8] - The common equity tier 1 capital ratio remained stable at 10.6% [8] - The total capital ratio increased to 13.9%, compared to 13.8% in the prior year [8] Shareholder Returns - In Q1 2025, CFG repurchased $200 million of common shares and paid out $186 million in common dividends [9] Strategic Outlook - CFG's focus on strategic initiatives and efficiency improvements supports its financial performance, while a solid liquidity position allows for sustainable capital distributions [10]