Fifth Third Bancorp Reports Third Quarter 2026 Earnings
FIFTH THIRD BANCORP (FITB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Fifth Third Bancorp Reports Third Quarter 2026 Earnings Organic momentum and successful integration advance the earnings power of the combined company Reported EPS of $0.90; adjusted EPS (a) of $1.13 excludes $0.23 of certain items on page 2 Key Financial Data Key Highlights $ in
How this was made
The 30-second read
Why it matters
The earnings beat and deposit growth are likely to drive short‑term buying interest in FITB.
Market read
First‑report earnings for a mid‑cap regional bank with material financial metrics; actionable for traders.
What to watch
Potential headwinds from higher deposit costs and integration risks with Comerica could temper upside.
Fifth Third Bancorp Reports Third Quarter 2026 Earnings Organic momentum and successful integration advance the earnings power of the combined company
GAAP net income available to common shareholders increased 9% sequentially and 36% year-over-year, supported by 3% sequential FTE net interest income growth, lower reported expenses and stable credit quality. Reported diluted EPS was down 1% year-over-year because average diluted shares increased 37%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net interest incomeGAAP | $2.27B | 3% | 49% |
| Net interest income (FTE)non-GAAP | $2.28B | 3% | 49% |
| Total revenue (FTE)non-GAAP | $3.28B | — | 42% |
| Provision for credit lossesGAAP | $122M | (5%) | (38%) |
| Noninterest incomeGAAP | $1.01B | (5%) | 29% |
| Wealth and asset management revenueGAAP | $259M | 1% | 43% |
| Commercial payments revenueGAAP | $256M | 1% | 63% |
| Consumer banking revenueGAAP | $158M | (2%) | 10% |
| Capital markets feesGAAP | $147M | (5%) | 28% |
| Commercial banking revenueGAAP | $128M | 2% | 47% |
| Mortgage banking net revenueGAAP | $47M | 21% | (19%) |
| Other noninterest incomeGAAP | $18M | (64%) | (38%) |
| Securities gains (losses), netGAAP | −$5M | NM | NM |
| Adjusted noninterest income, excluding certain items and securities lossesnon-GAAP | $1.05B | 1% | 33% |
| Noninterest expenseGAAP | $2.05B | (3%) | 62% |
| Adjusted noninterest expense, excluding certain items and non-qualified deferred compensationnon-GAAP | $1.82B | (2%) | 45% |
| Income before income taxesGAAP | $1.11B | 7% | 32% |
| Income before income taxes (FTE)non-GAAP | $1.11B | 7% | 32% |
| Net incomeGAAP | $866M | 8% | 33% |
| Net income available to common shareholdersGAAP | $828M | 9% | 36% |
| Adjusted net incomenon-GAAP | $1.08B | – | – |
| Earnings per share, basicGAAP | $0.91 | 8% | — |
| Earnings per share, dilutedGAAP | $0.90 | 8% | (1%) |
| Adjusted earnings per sharenon-GAAP | $1.13 | – | – |
| Net interest margin (FTE)non-GAAP | 3.34 % | (2) | 21 |
| Efficiency ratio (FTE)non-GAAP | 62.4 % | (190) | 750 |
| Adjusted efficiency rationon-GAAP | 54.6 % | – | – |
| Adjusted pre-provision net revenue (PPNR)non-GAAP | $1.51B | – | – |
| Return on average assetsGAAP | 1.14 % | 6 | (7) |
| Adjusted return on average assetsnon-GAAP | 1.41 % | – | – |
| Return on average tangible common equitynon-GAAP | 16.6 % | 100 | (70) |
| Adjusted return on average tangible common equity, including AOCInon-GAAP | 20.6 % | – | – |
| Average portfolio loans and leasesother | $179.2B | 1% | 45% |
| Average depositsother | $238.3B | 3% | 45% |
| Total depositsother | $239.5B | 2% | 44% |
| Portfolio loans and leasesother | $180.3B | 1% | 46% |
| Net charge-off ratioother | 0.31 % | 1 | (78) |
| Allowance for credit losses as a percent of portfolio loans and leasesother | 1.74 % | (2) | (22) |
| Nonperforming portfolio assets as a percent of portfolio loans and leases and OREOother | 0.64 % | 4 | (1) |
| CET1 capitalother | 10.02 % | 9 | (55) |
| Effective tax rateGAAP | 21.8 % | (90) | (80) |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commercial Banking noninterest incomeSegment net interest income was $1,147 million and average loans and leases were $114,568 million. | $512M | – | – |
| Consumer and Small Business Banking noninterest incomeSegment net interest income was $1,274 million and average core deposits were $121,371 million. | $326M | – | – |
| Wealth and Asset Management noninterest incomeSegment net interest income was $112 million. | $183M | – | – |
Capital returns
- Cash dividends per common share: $0.42.
- Cash dividends declared on common stock: $388 million.
- Fifth Third did not repurchase common shares during the quarter or year-to-date.
What drove it
- FTE net interest income increased 3% sequentially, reflecting higher market rates, continued fixed-rate asset repricing, active investment portfolio management and loan growth.
- Higher mortgage banking, commercial banking and wealth and asset management revenue more than offset lower capital markets and consumer banking revenue.
- Average core deposits increased 3% sequentially, reflecting operational deposit growth, the Southwest retail deposit campaign and migration of former off-balance-sheet Comerica investment sweep balances onto the balance sheet.
- Average wholesale funding decreased 10% sequentially to $23 billion, driven primarily by decreases of $1.3 billion in long-term debt and $1.1 billion in FHLB advances.
- Reported noninterest expense decreased 3% sequentially, driven primarily by lower compensation and benefits expense.
- The provision for credit losses declined to $122 million from $129 million in the prior quarter, and the ACL ratio declined to 1.74% from 1.76%.
Concerns
- Reported diluted EPS was $0.90, down 1% year-over-year, while average diluted shares outstanding increased 37%.
- Noninterest income decreased 5% sequentially, with capital markets fees down 5%, consumer banking revenue down 2%, other noninterest income down 64% and securities losses of $(5) million.
- Net interest margin (FTE) declined 2 bps sequentially to 3.34 %, as higher deposit costs and migration of former off-balance-sheet Comerica investment sweep balances into interest-bearing deposits partly offset asset repricing benefits.
- Noninterest expense increased 62% year-over-year, and adjusted noninterest expense increased 45% year-over-year.
- Accumulated other comprehensive loss increased to $(4,919) million from $(3,286) million in the prior quarter.
- OREO increased to $81 million from $24 million in the prior quarter and included $74 million of branch-related real estate no longer intended to be used for banking purposes primarily driven by the Comerica acquisition.
What to watch
- The durability of FTE net interest income growth and the 3.34 % FTE net interest margin amid higher deposit costs.
- Commercial loan growth, which drove approximately $1.5 billion of sequential average commercial loans and leases growth.
- Deposit retention and growth following Comerica systems conversion, including the migration of former off-balance-sheet investment sweep balances.
- Capital markets fees after late-quarter market volatility slowed M&A advisory and loan syndication activity.
- Merger-related charges, which totaled approximately 1.04 billion year-to-date in noninterest expense.
- Credit trends in commercial and consumer portfolios, including the commercial net charge-off ratio of 0.22 % and consumer net charge-off ratio of 0.52 %.
Balance sheet and cash flow
- Total assets: $301,224 million.
- Cash and due from banks: $4,086 million.
- Other short-term investments: $16,520 million.
- Total deposits: $239,486 million.
- Short-term borrowings: $1,200 million.
- Long-term debt: $16,938 million.
- Total equity: $33,315 million.
- Accumulated other comprehensive loss: $(4,919) million.
- Operating cash flow and free cash flow were not reported.
Analysis
Fifth Third reported a stronger sequential quarter on core profitability. GAAP net income available to common shareholders was $828 million, up 9% from $763 million in 2Q26, while GAAP diluted EPS rose to $0.90 from $0.83. FTE net interest income increased 3% sequentially to $2,276 million and FTE total revenue was $3,284 million. Adjusted PPNR increased to $1,512 million from $1,399 million, while adjusted ROTCE including AOCI increased to 20.6 % from 19.0 % and the adjusted efficiency ratio improved to 54.6 % from 57.1 %.
Balance-sheet momentum supported the results. Average portfolio loans and leases increased 1% sequentially to $179,244 million, with approximately $1.5 billion of growth in commercial loans and leases. Average deposits increased 3% to $238,344 million, driven by operational deposit growth, the Southwest retail deposit campaign and migration of former off-balance-sheet Comerica investment sweep balances onto the balance sheet. Period-end total deposits rose 2% to $239,486 million, while period-end portfolio loans and leases grew 1% to $180,272 million. Strong deposits supported a 10% sequential decrease in average wholesale funding to $23,252 million.
The revenue mix was uneven outside net interest income. GAAP noninterest income fell 5% sequentially to $1,008 million, although adjusted noninterest income excluding certain items and securities losses increased 1% to $1,052 million. Mortgage banking net revenue rose 21%, commercial banking revenue rose 2%, and wealth and asset management revenue rose 1%. These gains were offset by a 5% decline in capital markets fees as late-quarter market volatility slowed M&A advisory and loan syndication activity, a 2% decline in consumer banking revenue and a 64% decline in other noninterest income.
Expenses improved sequentially but remain elevated from the integration and larger combined company. Reported noninterest expense decreased 3% to $2,049 million, driven primarily by lower compensation and benefits expense. Adjusted noninterest expense excluding certain items and non-qualified deferred compensation declined 2% to $1,816 million. The quarter included $225 million of pre-tax merger-related charges, $34 million of interchange litigation matters and $19 million of technology-related asset impairments. Merger-related charges recognized in noninterest expense totaled approximately 1.04 billion year-to-date.
Credit metrics remained stable. The provision for credit losses declined to $122 million from $129 million, the ACL ratio declined to 1.74 % from 1.76 %, and the NPA ratio was 0.64 % compared with 0.60 %. Net charge-offs were $139 million, or 0.31 % of average portfolio loans and leases, compared with $135 million, or 0.30 %, in the prior quarter. CET1 capital increased to 10.02 % from 9.93 % as earnings generation was partially offset by RWA growth. The company paid a $0.42 common dividend per share and did not repurchase common shares during the quarter or year-to-date.
The release did not provide forward financial guidance. Management emphasized successful Comerica systems conversion, strong client and banker retention, deposit-share gains, and flexibility from multiple low-cost deposit sources and limited exposure to borrowers most sensitive to higher rates. The key reported execution items are preserving deposit and loan growth, sustaining the margin while deposit costs rise, realizing integration benefits as merger charges continue, and maintaining stable credit performance.
Management, verbatim
Fifth Third's third quarter reflected the earnings power of the combined company.
Tim Spence, Fifth Third Chairman, CEO and President
Even while integrating Comerica, our adjusted return on tangible common equity and efficiency ratio improved from the second quarter, and credit performance remained stable.
Tim Spence, Fifth Third Chairman, CEO and President
We are building a Fifth Third that is better and not just bigger.
Tim Spence, Fifth Third Chairman, CEO and President
Not in the filing
stated, not guessed- Forward guidance for revenue, net interest income, net interest margin, expenses, tax rate, credit costs, capital actions or other metrics was not provided.
- Previous-period outlook was not provided, so comparison with prior guidance is unavailable.
- GAAP total revenue was not reported as a line item; total revenue was reported on an FTE non-GAAP basis.
- GAAP operating income was not reported.
- Operating cash flow and free cash flow were not reported.
- Cash repurchases were not reported because the company did not repurchase common shares during the quarter or year-to-date.
- Adjusted EPS prior-year and prior-quarter comparative figures were not reported.
- Year-over-year and sequential percentage changes for adjusted net income, adjusted PPNR, adjusted ROTCE, adjusted ROA and adjusted efficiency ratio were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a Form 8‑K filing with the SEC, providing the first public disclosure of Fifth Third's Q3 2026 results.
Ticker impact
Fifth Third Bancorp reported Q3 2026 earnings, posting $0.90 diluted EPS and $828 M net income, with sequential deposit growth and improved efficiency.
likely modest upside as the market prices in better-than-expected earnings and deposit gains
The report shows sequential revenue growth, higher net interest income and improved efficiency, which typically support a positive price reaction.
Market effects
Banking sector may see broader support as regional banks report strong deposit inflows and credit stability.
Midwest and Southeast U.S. markets could benefit from Fifth Third's deposit share gains.
Limited; primarily a U.S. regional bank earnings story.
Counterpoint
If the market had already priced in strong deposit growth, the earnings may be a disappointment, leading to a pullback.
Key entities
- ExecutiveTim Spence
Chairman, CEO and President of Fifth Third Bancorp, quoted in the release.
