Fifth Third Bancorp (NASDAQ:FITB) Announces Earnings Results, Beats Estimates By $0.20 EPS

Fifth Third Bancorp (NASDAQ:FITB) announced its earnings results on Friday, April 17th. The financial services provider reported $0.83 earnings per share for the quarter, topping analysts’ consensus estimates of $0.63 by $0.20, FiscalAI reports. The company had revenue of $2.83 billion for the quarter, compared to analyst estimates of $2.91 billion. Fifth Third Bancorp had a return on equity of 12.39% and a net margin of 15.89%.During the same quarter last year, the company earned $0.71 earnings per share.

Here are the key takeaways from Fifth Third Bancorp’s conference call:

• Management closed the Comerica acquisition (Feb 1), says the Labor Day systems conversion remains on track, and forecasts $360M of net cost savings in 2026 rising to an $850M annual run rate by Q4 while reporting early revenue wins in payments, capital markets and lending — execution risk on the tech conversion is acknowledged.
• Reported Q1 adjusted EPS of $0.83 (GAAP $0.15), revenue $2.9B (+33% YoY) and adjusted net income $734M (+38%), with adjusted ROTCE 13.7% and tangible book value per share up 1% sequentially, results management says validate the combined company’s earnings power despite acquisition-related comparison distortion.
• Net interest income beat expectations at $1.94B and NIM expanded 17 bps to 330 bps; management updated full?year NII guidance to $8.7–8.8B and expects further NIM improvement as Comerica’s impacts fully flow through, while core deposit mix improved (non?interest DDAs 28%).
• Credit metrics were stable with net charge?offs 37 bps and NPAs improving (57 bps), ACL at 1.79% (316% coverage of NPAs) and full?year NCO guidance 30–40 bps, but management notes macro/geopolitical commodity risks and made a day?one ACL build tied to the merger that affect reserve levels.

Fifth Third Bancorp Stock Down 1.2%

Shares of NASDAQ:FITB traded down $0.60 during mid-day trading on Wednesday, hitting $49.71. 2,197,613 shares of the company traded hands, compared to its average volume of 9,954,188. The stock has a 50-day moving average price of $48.63 and a two-hundred day moving average price of $48.28. Fifth Third Bancorp has a 12-month low of $37.86 and a 12-month high of $55.44. The stock has a market cap of $45.05 billion, a P/E ratio of 16.68, a P/E/G ratio of 0.99 and a beta of 0.92. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.59.

Fifth Third Bancorp Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were given a $0.40 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $1.60 annualized dividend and a yield of 3.2%. Fifth Third Bancorp’s dividend payout ratio (DPR) is presently 53.69%.

Analysts Set New Price Targets

Several research firms recently weighed in on FITB. Zacks Research lowered Fifth Third Bancorp from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 11th. Weiss Ratings upgraded shares of Fifth Third Bancorp from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday. Piper Sandler reaffirmed an “overweight” rating and set a $54.00 price target (down from $57.00) on shares of Fifth Third Bancorp in a report on Monday, March 30th. Wall Street Zen upgraded shares of Fifth Third Bancorp from a “strong sell” rating to a “sell” rating in a research report on Sunday, May 10th. Finally, JPMorgan Chase & Co. raised their target price on shares of Fifth Third Bancorp from $53.00 to $54.50 and gave the company an “overweight” rating in a research report on Thursday, April 30th. Seventeen investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $57.19.

Insider Activity

In related news, EVP Kevin J. Khanna sold 6,000 shares of the stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $50.77, for a total transaction of $304,620.00. Following the completion of the sale, the executive vice president directly owned 76,299 shares of the company’s stock, valued at approximately $3,873,700.23. This trade represents a 7.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Peter L. Sefzik sold 20,000 shares of the company’s stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $50.46, for a total value of $1,009,200.00. Following the completion of the transaction, the executive vice president owned 189,382 shares of the company’s stock, valued at $9,556,215.72. This trade represents a 9.55% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.51% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. Price T Rowe Associates Inc. MD raised its position in shares of Fifth Third Bancorp by 41.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 35,548,204 shares of the financial services provider’s stock worth $1,664,013,000 after buying an additional 10,444,799 shares in the last quarter. State Street Corp grew its stake in Fifth Third Bancorp by 0.3% in the 4th quarter. State Street Corp now owns 31,437,600 shares of the financial services provider’s stock worth $1,484,021,000 after buying an additional 101,245 shares in the last quarter. Charles Schwab Investment Management Inc. increased its holdings in shares of Fifth Third Bancorp by 2.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 23,939,023 shares of the financial services provider’s stock worth $1,120,586,000 after buying an additional 530,489 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Fifth Third Bancorp by 2.6% in the 3rd quarter. Invesco Ltd. now owns 21,224,600 shares of the financial services provider’s stock worth $945,556,000 after buying an additional 546,914 shares during the last quarter. Finally, Nuveen LLC raised its position in shares of Fifth Third Bancorp by 25.3% during the 4th quarter. Nuveen LLC now owns 10,874,010 shares of the financial services provider’s stock valued at $509,012,000 after buying an additional 2,196,388 shares in the last quarter. 83.79% of the stock is owned by institutional investors.

About Fifth Third Bancorp

Fifth Third Bancorp is a Cincinnati, Ohio–based bank holding company whose primary banking subsidiary operates as Fifth Third Bank. The company provides a broad range of financial services to individual consumers, small businesses, middle-market companies and large corporations. Its business mix includes retail and commercial banking, lending, payment and card services, treasury and cash management, and wealth management and investment advisory services delivered through a combination of branch locations, commercial offices and digital platforms.

On the consumer side, Fifth Third offers deposit accounts, consumer loans, mortgages, auto financing and credit card products, along with digital banking and mobile services.