We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fifth Third Q2 Earnings Top Estimates on Higher NII & Fee Income
Read MoreHide Full Article
Key Takeaways
FITB Q2 EPS of 9 cents surpassed estimates despite rising provisions and credit concerns.
Revenue rose 7.7% YoY to $2.25B, driven by $1.5B NII and 7.9% growth in fee income from banking and wealth.
Provision for credit losses jumped 78% and non-performing loans rose 37.8%, reflecting weaker asset quality.
Fifth Third Bancorp (FITB - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of 9 cents, surpassing the Zacks Consensus Estimate of 87 cents. In the prior-year quarter, the company posted an EPS of 86 cents.
Results benefited from a rise in net interest income (NII), fee income and loan balances. However, higher expenses and weak asset quality were headwinds.
Results included a negative 2-cent impact of certain items. After considering this, the company has reported net income available to common shareholders (GAAP basis) of $591 million, down 5.3% year over year.
FITB’s Quarterly Revenues & Expenses Rise
Total quarterly revenues in the reported quarter were $2.25 billion, which increased 7.7% year over year. Further, the top line surpassed the Zacks Consensus Estimate by 1.8%.
Fifth Third’s NII (on an FTE basis) was $1.5 billion, up 7.6% year over year. Our estimate for NII was pegged at $1.48 billion.
The net interest margin (on an FTE basis) increased year over year to 3.12% from 2.88%. Our estimate for net interest margin was 3.05%.
Non-interest income rose 7.9% year over year to $750 million. This rise was primarily due to an increase in revenues from wealth and asset management and consumer banking fees. Our estimate for non-interest income was pinned at $721.6 million.
Non-interest expenses increased 3.5% year over year to $1.26 billion. The increase was primarily due to a rise in all cost components except occupancy and other non-interest income. Our estimate for the metric was $1.27 billion.
FITB’s Credit Quality Deteriorates
The company has reported a provision for credit losses of $173 million, up 78% from the year-ago quarter. Our estimate for the metric was pinned at $149.1 million.
Moreover, the total non-performing portfolio loans and leases were $886 million, up 37.8% year over year.
Net charge-offs in the first quarter increased to $139 million or 0.45% of average loans and leases (on an annualized basis) from $144 million or 0.49% in the prior-year quarter. Our estimate for net charge-offs was $145.3 million.
The total allowance for credit losses increased 5.5% to $2.56 billion year over year. Our estimate for allowance for credit losses was pinned at $2.53 billion.
Fifth Third’s Capital Position Mixed
The Tier 1 risk-based capital ratio was 11.83% compared with 11.93% posted in the prior-year quarter. The CET1 capital ratio was 10.56%, down from 10.62% in the year-ago quarter. The leverage ratio was 9.42% compared with the year-earlier quarter’s 9.07%.
Our Viewpoint on Fifth Third
A rise in NII, driven by loan growth, deposit rate management, and fixed-rate asset repricing, supported top-line growth. Strategic acquisitions have diversified Fifth Third's revenue sources, which will aid its top-line growth in the future. However, higher expenses and weak asset quality remain near-term concerns.
Fifth Third Bancorp Price, Consensus and EPS Surprise
State Street’s (STT - Free Report) second-quarter 2025 adjusted earnings of $2.53 per share surpassed the Zacks Consensus Estimate of $2.36. The bottom line also increased 17.7% from the prior-year quarter. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Results were aided by growth in fee revenues. Also, STT witnessed improvements in total assets under custody and administration and assets under management balances. However, higher adjusted expenses, a jump in provisions and lower NII acted as spoilsports.
Hancock Whitney Corp.’s (HWC - Free Report) second-quarter 2025 adjusted earnings per share of $1.37 exceeded the Zacks Consensus Estimate of $1.34. Further, the bottom line rose 4.6% from the prior year quarter.
HWC's results benefited from an increase in non-interest income and NII. Also, higher loans were another positive. However, higher adjusted expenses and provisions alongside lower deposit balances were headwinds.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Fifth Third Q2 Earnings Top Estimates on Higher NII & Fee Income
Key Takeaways
Fifth Third Bancorp (FITB - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of 9 cents, surpassing the Zacks Consensus Estimate of 87 cents. In the prior-year quarter, the company posted an EPS of 86 cents.
Results benefited from a rise in net interest income (NII), fee income and loan balances. However, higher expenses and weak asset quality were headwinds.
Results included a negative 2-cent impact of certain items. After considering this, the company has reported net income available to common shareholders (GAAP basis) of $591 million, down 5.3% year over year.
FITB’s Quarterly Revenues & Expenses Rise
Total quarterly revenues in the reported quarter were $2.25 billion, which increased 7.7% year over year. Further, the top line surpassed the Zacks Consensus Estimate by 1.8%.
Fifth Third’s NII (on an FTE basis) was $1.5 billion, up 7.6% year over year. Our estimate for NII was pegged at $1.48 billion.
The net interest margin (on an FTE basis) increased year over year to 3.12% from 2.88%. Our estimate for net interest margin was 3.05%.
Non-interest income rose 7.9% year over year to $750 million. This rise was primarily due to an increase in revenues from wealth and asset management and consumer banking fees. Our estimate for non-interest income was pinned at $721.6 million.
Non-interest expenses increased 3.5% year over year to $1.26 billion. The increase was primarily due to a rise in all cost components except occupancy and other non-interest income. Our estimate for the metric was $1.27 billion.
FITB’s Credit Quality Deteriorates
The company has reported a provision for credit losses of $173 million, up 78% from the year-ago quarter. Our estimate for the metric was pinned at $149.1 million.
Moreover, the total non-performing portfolio loans and leases were $886 million, up 37.8% year over year.
Net charge-offs in the first quarter increased to $139 million or 0.45% of average loans and leases (on an annualized basis) from $144 million or 0.49% in the prior-year quarter. Our estimate for net charge-offs was $145.3 million.
The total allowance for credit losses increased 5.5% to $2.56 billion year over year. Our estimate for allowance for credit losses was pinned at $2.53 billion.
Fifth Third’s Capital Position Mixed
The Tier 1 risk-based capital ratio was 11.83% compared with 11.93% posted in the prior-year quarter. The CET1 capital ratio was 10.56%, down from 10.62% in the year-ago quarter. The leverage ratio was 9.42% compared with the year-earlier quarter’s 9.07%.
Our Viewpoint on Fifth Third
A rise in NII, driven by loan growth, deposit rate management, and fixed-rate asset repricing, supported top-line growth. Strategic acquisitions have diversified Fifth Third's revenue sources, which will aid its top-line growth in the future. However, higher expenses and weak asset quality remain near-term concerns.
Fifth Third Bancorp Price, Consensus and EPS Surprise
Fifth Third Bancorp price-consensus-eps-surprise-chart | Fifth Third Bancorp Quote
Currently, Fifth Third carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
State Street’s (STT - Free Report) second-quarter 2025 adjusted earnings of $2.53 per share surpassed the Zacks Consensus Estimate of $2.36. The bottom line also increased 17.7% from the prior-year quarter. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Results were aided by growth in fee revenues. Also, STT witnessed improvements in total assets under custody and administration and assets under management balances. However, higher adjusted expenses, a jump in provisions and lower NII acted as spoilsports.
Hancock Whitney Corp.’s (HWC - Free Report) second-quarter 2025 adjusted earnings per share of $1.37 exceeded the Zacks Consensus Estimate of $1.34. Further, the bottom line rose 4.6% from the prior year quarter.
HWC's results benefited from an increase in non-interest income and NII. Also, higher loans were another positive. However, higher adjusted expenses and provisions alongside lower deposit balances were headwinds.