10-Q · August 4, 2026
Fifth Third delivered a sharp Q2 rebound from its acquisition-affected first quarter, with FTE revenue of $3.279 billion, net income of $801 million, and diluted EPS of $0.83. Year-over-year revenue, margin, fee income,…
Earnings analysis · 10-Q
FITB earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Fifth Third's third-quarter results showed strong acquisition-driven scale benefits: FTE revenue rose 42% to $3.284 billion, net interest margin expanded to 3.34%, and net income increased 33% to $866 million. However,…
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Fifth Third's third-quarter results showed strong acquisition-driven scale benefits: FTE revenue rose 42% to $3.284 billion, net interest margin expanded to 3.34%, and net income increased 33% to $866 million. However, diluted EPS fell to $0.90 from $0.91 because of the materially higher share count, while noninterest expense rose 62% to $2.049 billion and merger-related charges totaled $215 million. Commercial Banking and Wealth and Asset Management grew strongly, but Consumer and Small Business Banking declined modestly, and higher nonperforming assets, capital pressure and elevated integration costs keep the overall outlook balanced.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.9
- Segment
- Commercial Banking income before taxes: $818 million vs. $251 million, up $567 million or 226% year over year.
- Segment
- Consumer and Small Business Banking income before taxes: $656 million vs. $665 million, down $9 million or 1% year over year.
- Segment
- Wealth and Asset Management income before taxes: $106 million vs. $71 million, up $35 million or 49% year over year.
What stood out
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Revenue and net interest margin expanded
Third-quarter FTE revenue was $3.284 billion, up $978 million or 42% from $2.306 billion a year earlier, driven substantially by the Comerica acquisition. Net interest income on an FTE basis rose 49% to $2.276 billion, while net interest margin increased to 3.34% from 3.13%.
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Net income grew, but EPS was diluted
Diluted EPS was $0.90 versus $0.91 in the prior-year quarter, despite net income increasing 33% to $866 million from $649 million. The larger share count following the Comerica transaction offset much of the earnings growth.
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Commercial Banking drove segment growth
Commercial Banking income before taxes increased to $818 million from $251 million, or 226% year over year. The segment benefited from $1.147 billion of FTE net interest income, $512 million of noninterest income and provision expense declining to $80 million from $246 million.
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Fee income growth was broad-based
Noninterest income increased 29% to $1.008 billion, led by commercial payments revenue of $256 million, wealth and asset management revenue of $259 million and capital markets fees of $147 million. Commercial payments revenue increased 63% year over year.
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Cash generation remained positive
Operating cash flow was $2.525 billion for the first nine months of 2026, compared with $3.585 billion in the prior-year period. Investing cash outflow was $1.563 billion, including $504 million of bank-premises and equipment purchases and $19.866 billion of AFS and HTM securities purchases.
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Acquisition materially expanded the balance sheet
Core deposits increased to $236.951 billion from $169.841 billion at December 31, 2025, while total loans and leases rose to $181.000 billion from $123.384 billion. Management attributed most of the increase to the Comerica acquisition, which added $65.191 billion of deposits and $50.540 billion of loans and leases.
What to watch
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Integration costs remain elevated
Noninterest expense increased 62% year over year to $2.049 billion, including $215 million of direct Comerica merger-related expense in the quarter and $1.043 billion for the first nine months. The efficiency ratio worsened to 62.4% from 54.9%.
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Nonperforming assets increased
Total nonperforming assets increased to $1.322 billion from $867 million at December 31, 2025, while nonaccrual portfolio loans and leases rose to $1.070 billion from $767 million. Commercial mortgage nonaccrual loans increased to $141 million from $34 million.
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Credit reserves remain economically sensitive
Management's downside sensitivity indicates that applying a 100% probability weighting to the Downside economic scenario would increase quantitative ACL by approximately $1.9 billion. The reported ACL ratio was 1.74%, down from 1.96% at December 31, 2025, after the balance-sheet expansion from Comerica.
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Capital and AOCI remain pressured
CET1 risk-based capital declined to 10.03% from 10.57% at December 31, 2025, and accumulated other comprehensive loss widened to $4.938 billion from $3.110 billion. The proposed capital framework would imply an estimated CET1 ratio of approximately 9.2% as of September 30, 2026.
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Mortgage profitability weakened
Mortgage banking net revenue declined 19% to $47 million from $58 million, despite residential mortgage originations increasing to $2.3 billion from $1.9 billion. Net valuation adjustments on residential MSRs and related hedges were negative $40 million in the quarter.
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No formal risk-factor changes; legal exposure remains
The filing states that no material changes were made during the third quarter of 2026 to the risk factors disclosed in the 2025 Form 10-K. Nevertheless, legal and regulatory proceedings carried estimated reasonably possible losses of up to approximately $76 million in excess of accrued amounts.
Management's outlook
No explicit quantitative EPS or revenue guidance was provided in the 10-Q. Management provided risk sensitivities rather than operating guidance, including estimated NII changes of 0.18% to 2.37% under a +200-basis-point ramp and (2.26%) to (8.30%) under a -200-basis-point ramp over 12 months and 13–24 months.
Earlier filings 4
10-Q · May 5, 2026
Fifth Third Bancorp reported Q1 2026 results with EPS of $0.83, significantly exceeding the consensus estimate of $0.47, while revenue slightly missed expectations at $2.83 billion compared to an estimate of $2.84…
10-K · February 24, 2026
Fifth Third positions itself as a diversified regional bank operating three businesses (Commercial Banking; Consumer and Small Business Banking; Wealth and Asset Management) with scale — $214 billion in assets, 1,130…
10-Q · November 4, 2025
Fifth Third reported a quarter of modest revenue growth and margin expansion but highlighted material merger-related risk tied to the recently executed Comerica merger agreement. Revenue for the quarter was $3.30…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.