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Growth in NII & Lower Expenses Likely to Support Fifth Third's Q3 Earnings
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Key Takeaways
FITB is set to report Q3'26 results on Oct. 19, with EPS likely to be $1.09, suggesting y/y rise of 17.2%.
FITB expects Q3'26 NII to increase 2-2.5% sequentially, supported by loan growth and stable funding costs.
FITB expects adjusted expenses to fall 1-2% sequentially, aided by Comerica integration synergies.
Fifth Third Bancorp (FITB - Free Report) is scheduled to report third-quarter 2026 results on Oct. 19, before the opening bell. Quarterly earnings and revenues are expected to have registered year-over-year growth in the to-be-reported quarter.
In the last reported quarter, the bank’s earnings surpassed the Zacks Consensus Estimate. Results benefited from growth in net interest income (NII) and fee income. Higher loan and deposit balances were also encouraging. However, increased expenses and higher provisions for credit losses acted as headwinds.
This Cincinnati, OH-based lender has an impressive earnings surprise history. Its earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 4.18%.
Loans & NII: After strong lending activity in the first half of 2026, loan growth momentum likely moderated in the to-be-reported quarter. According to the Federal Reserve’s latest data, commercial and industrial lending demand remained healthy during the third quarter, while consumer and real estate lending held steady. Decent loan demand, along with stable deposit and funding costs, is expected to have supported growth in average interest-earning assets. Management expects average loans and leases to increase 1% sequentially in the third quarter of 2026.
The Zacks Consensus Estimate for average interest-earning assets of $269.8 billion for the third quarter indicates an 1.8% rise from the prior quarter’s actual.
In September 2026, the Fed raised interest rates by 25 basis points to 3.75–4.00%, citing persistently elevated inflation. As rates remained unchanged for most of the third quarter, its impact on NII is likely to have been limited. Meanwhile, growth in interest-earning assets, disciplined deposit pricing and stable funding costs are expected to have supported FITB’s NII in the to-be-reported quarter.
Fifth Third expects NII to increase at the upper end of its 2–2.5% range on a sequential basis in the third quarter of 2026.
The Zacks Consensus Estimate for NII is pegged at $1.93 billion, indicating a 25.8% sequential increase.
Non-Interest Revenues: Global mergers and acquisitions (M&A) activity moderated in the third quarter of 2026 as geopolitical uncertainty, elevated inflation, a persistent backlog of private equity exits and higher interest rates continued to weigh on deal-making. Despite these challenges, strategic buyers continued to pursue transactions to expand scale and strengthen operational resilience, supporting advisory activity.
Continued demand for M&A advisory services is expected to have supported FITB’s advisory and capital markets fees, contributing to growth in commercial banking revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for commercial banking revenues is pegged at $127.2 million, indicating a 1.8% sequential rise.
Mortgage activity remained challenging in the third quarter of 2026, with mortgage rates hovering near 7% and affordability constraints weighing on both purchase and refinancing activity. Nevertheless, FITB’s strategic focus on expanding its mortgage lending business, increasing market share and deepening customer relationships may have provided some support to its mortgage banking income in the to-be-reported quarter.
The Zacks Consensus Estimate for mortgage banking income is pegged at $44.2 million, indicating a 13.3% increase from the prior quarter’s reported figure.
The Zacks Consensus Estimate for wealth and asset management revenues is pegged at $263.2 million, indicating a 2.8% increase from the prior quarter’s actual level.
Management expects non-interest income to increase at the upper end of the 1-3% sequential growth range in the third quarter of 2026.
The Zacks Consensus Estimate for non-interest income is pegged at $1.1 billion, which indicates a nearly 1% sequential rise.
Expenses: The company’s continued investments in technology, branch expansion and the Comerica integration are likely to have kept expenses elevated in the to-be-reported quarter. However, ongoing expense-management efforts and the expense synergies from the Comerica integration are likely to have provided some relief during the quarter to be reported.
Management expects adjusted expenses to decline at the lower end of its prior guidance range of 1–2% sequentially.
Asset Quality: Ongoing inflationary pressures and elevated borrowing costs may have strained borrowers’ repayment capacity in the third quarter of 2026. Still, favorable credit trends and continued loan demand are likely to have supported Fifth Third’s asset quality. As such, the company is less likely to have maintained elevated reserves during the quarter.
The Zacks Consensus Estimate for non-performing assets is pegged at $1.1 billion, representing an 14.5% decline from the prior quarter's reported figure.
What the Zacks Model Reveals for FITB
Our proven model predicts an earnings beat for Fifth Third this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.
FITB’s Earnings ESP: The Earnings ESP for Fifth Third is +0.89%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank of Fifth Third: The company currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for FITB’s third-quarter earnings has remained unchanged at $1.09 per share over the past seven days. The figure indicates an increase of 17.20% from the year-ago quarter.
The consensus estimate for third-quarter revenues is pegged at $3.34 billion, suggesting a rise of 45.23% from the year-ago reported figure.
Stocks That Warrant a Look
Here are a couple of other bank stocks that you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this time around.
The company is slated to report its third-quarter 2026 results on Oct. 19, 2026. Over the past seven days, the Zacks Consensus Estimate for BOKF’s quarterly earnings has remained unchanged at $2.54 per share.
KeyCorp (KEY - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 20. The company has an Earnings ESP of +0.44% and a Zacks Rank #3 at present.
Quarterly earnings estimates for KEY have remained unchanged at 46 cents per share over the past week.
View the Zacks #1 Rank List
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Growth in NII & Lower Expenses Likely to Support Fifth Third's Q3 Earnings
Key Takeaways
Fifth Third Bancorp (FITB - Free Report) is scheduled to report third-quarter 2026 results on Oct. 19, before the opening bell. Quarterly earnings and revenues are expected to have registered year-over-year growth in the to-be-reported quarter.
In the last reported quarter, the bank’s earnings surpassed the Zacks Consensus Estimate. Results benefited from growth in net interest income (NII) and fee income. Higher loan and deposit balances were also encouraging. However, increased expenses and higher provisions for credit losses acted as headwinds.
This Cincinnati, OH-based lender has an impressive earnings surprise history. Its earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 4.18%.
Fifth Third Bancorp Price and EPS Surprise
Fifth Third Bancorp price-eps-surprise | Fifth Third Bancorp Quote
Factors Likely to Impact FITB’s Q3 Performance
Loans & NII: After strong lending activity in the first half of 2026, loan growth momentum likely moderated in the to-be-reported quarter. According to the Federal Reserve’s latest data, commercial and industrial lending demand remained healthy during the third quarter, while consumer and real estate lending held steady. Decent loan demand, along with stable deposit and funding costs, is expected to have supported growth in average interest-earning assets. Management expects average loans and leases to increase 1% sequentially in the third quarter of 2026.
The Zacks Consensus Estimate for average interest-earning assets of $269.8 billion for the third quarter indicates an 1.8% rise from the prior quarter’s actual.
In September 2026, the Fed raised interest rates by 25 basis points to 3.75–4.00%, citing persistently elevated inflation. As rates remained unchanged for most of the third quarter, its impact on NII is likely to have been limited. Meanwhile, growth in interest-earning assets, disciplined deposit pricing and stable funding costs are expected to have supported FITB’s NII in the to-be-reported quarter.
Fifth Third expects NII to increase at the upper end of its 2–2.5% range on a sequential basis in the third quarter of 2026.
The Zacks Consensus Estimate for NII is pegged at $1.93 billion, indicating a 25.8% sequential increase.
Non-Interest Revenues: Global mergers and acquisitions (M&A) activity moderated in the third quarter of 2026 as geopolitical uncertainty, elevated inflation, a persistent backlog of private equity exits and higher interest rates continued to weigh on deal-making. Despite these challenges, strategic buyers continued to pursue transactions to expand scale and strengthen operational resilience, supporting advisory activity.
Continued demand for M&A advisory services is expected to have supported FITB’s advisory and capital markets fees, contributing to growth in commercial banking revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for commercial banking revenues is pegged at $127.2 million, indicating a 1.8% sequential rise.
Mortgage activity remained challenging in the third quarter of 2026, with mortgage rates hovering near 7% and affordability constraints weighing on both purchase and refinancing activity. Nevertheless, FITB’s strategic focus on expanding its mortgage lending business, increasing market share and deepening customer relationships may have provided some support to its mortgage banking income in the to-be-reported quarter.
The Zacks Consensus Estimate for mortgage banking income is pegged at $44.2 million, indicating a 13.3% increase from the prior quarter’s reported figure.
The Zacks Consensus Estimate for wealth and asset management revenues is pegged at $263.2 million, indicating a 2.8% increase from the prior quarter’s actual level.
Management expects non-interest income to increase at the upper end of the 1-3% sequential growth range in the third quarter of 2026.
The Zacks Consensus Estimate for non-interest income is pegged at $1.1 billion, which indicates a nearly 1% sequential rise.
Expenses: The company’s continued investments in technology, branch expansion and the Comerica integration are likely to have kept expenses elevated in the to-be-reported quarter. However, ongoing expense-management efforts and the expense synergies from the Comerica integration are likely to have provided some relief during the quarter to be reported.
Management expects adjusted expenses to decline at the lower end of its prior guidance range of 1–2% sequentially.
Asset Quality: Ongoing inflationary pressures and elevated borrowing costs may have strained borrowers’ repayment capacity in the third quarter of 2026. Still, favorable credit trends and continued loan demand are likely to have supported Fifth Third’s asset quality. As such, the company is less likely to have maintained elevated reserves during the quarter.
The Zacks Consensus Estimate for non-performing assets is pegged at $1.1 billion, representing an 14.5% decline from the prior quarter's reported figure.
What the Zacks Model Reveals for FITB
Our proven model predicts an earnings beat for Fifth Third this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.
FITB’s Earnings ESP: The Earnings ESP for Fifth Third is +0.89%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank of Fifth Third: The company currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for FITB’s third-quarter earnings has remained unchanged at $1.09 per share over the past seven days. The figure indicates an increase of 17.20% from the year-ago quarter.
The consensus estimate for third-quarter revenues is pegged at $3.34 billion, suggesting a rise of 45.23% from the year-ago reported figure.
Stocks That Warrant a Look
Here are a couple of other bank stocks that you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this time around.
The Earnings ESP for BOK Financial Corporation (BOKF - Free Report) is +0.59% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is slated to report its third-quarter 2026 results on Oct. 19, 2026. Over the past seven days, the Zacks Consensus Estimate for BOKF’s quarterly earnings has remained unchanged at $2.54 per share.
KeyCorp (KEY - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 20. The company has an Earnings ESP of +0.44% and a Zacks Rank #3 at present.
Quarterly earnings estimates for KEY have remained unchanged at 46 cents per share over the past week.