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Fifth Third Bancorp (FITB)
NASDAQ:FITB

Fifth Third Bancorp (FITB) AI Stock Analysis

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Fifth Third Bancorp

(NASDAQ:FITB)

Rating:74Outperform
Price Target:
$43.00
â–²(13.22%Upside)
The overall stock score is primarily supported by strong earnings call performance and solid financial health, despite cash flow concerns and mixed technical indicators. The valuation remains reasonable, making it a potentially attractive investment.
Positive Factors
Branch Expansion
Superior branch expansion in new and existing markets has led to an increased price target for FITB.
Loan Growth
FITB is highlighted as a loan growth standout that continues its SE expansion while reiterating confidence in NII and credit with de-regulation tailwinds.
Management Strategy
Analyst's recommendation is upgraded to Buy with an increased price target, reflecting confidence in Fifth Third's premium valuation and management's ability to drive growth.
Negative Factors
Credit Trends
Despite the positive outlook, credit trends have been concerning with non-performing loans increasing for three consecutive quarters.
Fee Income
Given the weaker macro environment, the company reduced its fee income growth guidance for 2025 as expected from 'up 3-6%' to 'up 1-3%' given weaker markets related fee income across wealth management and capital markets.
Volatile Environments
Management remains optimistic but acknowledges the risk of being too cautious in volatile environments, which could lead to missed opportunities.

Fifth Third Bancorp (FITB) vs. SPDR S&P 500 ETF (SPY)

Fifth Third Bancorp Business Overview & Revenue Model

Company DescriptionFifth Third Bancorp operates as a diversified financial services company in the United States. The company's Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. Its Branch Banking segment provides a range of deposit and loan products to individuals and small businesses. This segment offers checking and savings accounts, home equity loans and lines of credit, credit cards, and loans for automobiles and personal financing needs, as well as cash management services for small businesses. The company's Consumer Lending segment engages in direct lending activities that include origination, retention, and servicing of residential mortgage and home equity loans or lines of credit; and indirect lending activities, including loans to consumers through correspondent lenders and automobile dealers. Fifth Third Bancorp's Wealth & Asset Management segment provides various investment alternatives for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. As of December 31, 2021, the company operated 1,117 full-service banking centers and 2,322 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina, and South Carolina. Fifth Third Bancorp was founded in 1858 and is headquartered in Cincinnati, Ohio.
How the Company Makes MoneyFifth Third Bancorp generates revenue primarily through interest income from its lending activities, fees for banking services, and investment management services. The bank earns interest income by providing loans to individuals and businesses, including mortgages, personal loans, and commercial loans. Additionally, it earns non-interest income through service charges on deposit accounts, fees from card services, and commissions from investment advisory services. Significant partnerships with various financial technology firms and collaborations with other financial institutions also contribute to its earnings by broadening its range of services and customer reach.

Fifth Third Bancorp Key Performance Indicators (KPIs)

Any
Any
Assets by Segment
Assets by Segment
Breaks down the company's assets across different segments, providing insight into asset allocation, growth opportunities, and potential risks tied to specific business areas.
Chart InsightsFifth Third Bancorp's Commercial assets have been declining steadily, while Consumer and Small Business assets experienced a sharp drop at the end of 2024, likely due to strategic repositioning or economic pressures. Wealth and Asset Management also saw a significant reduction, aligning with earnings call concerns about economic uncertainty impacting revenues. However, the General Corporate segment surged, suggesting a strategic shift or reallocation of resources. Despite these fluctuations, the company reported strong financial performance, with robust loan growth and stable core deposits, indicating resilience amidst market disruptions.
Data provided by:Main Street Data

Fifth Third Bancorp Earnings Call Summary

Earnings Call Date:Apr 17, 2025
(Q1-2025)
|
% Change Since: 10.41%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Positive
The earnings call depicted strong financial performance and strategic positioning amidst economic uncertainty and market disruptions. Highlights included exceeding earnings expectations, significant loan growth, and disciplined expense management. However, challenges were noted in capital markets and potential impacts from economic uncertainties and tariffs.
Q1-2025 Updates
Positive Updates
Earnings Performance
Reported earnings per share of $0.71 or $0.73 excluding certain items, exceeding consensus estimates.
Pre-Provision Net Revenue (PPNR) Growth
PPNR grew by 5% year over year with an adjusted return on equity of 11.2%.
Tangible Book Value Growth
Grew tangible book value per share by 15% over the prior year.
Loan Growth and Stability
Total loans grew 3% year over year, with stable core deposits supported by 2% total household growth.
Net Interest Income (NII) and Margin Expansion
NII grew 4% over the prior year as net interest margins expanded for the fifth consecutive quarter.
Strong Fee Income Growth
Wealth and asset management revenue grew 7% supported by 10% growth in AUM.
Positive Operating Leverage
Achieved positive operating leverage with disciplined expense management holding expenses flat versus the prior year.
Recognition and Awards
Recognized by Atmosphere as one of the world's most ethical companies, by Fortune as one of America's most innovative companies.
Credit Quality and Reserves
Net charge-off rate was stable, with an ACL coverage ratio of 2.7% among the highest of peers.
Negative Updates
Capital Markets Disruption
Capital markets fees declined by 7% primarily due to a slowdown in loan syndications and M&A advisory revenue.
Challenges in ABL Portfolio
NPA ratio increased 10 basis points driven by two ABL credits, though the portfolio remains well secured.
Economic Uncertainty Impact
Continued economic uncertainty has slowed down capital markets activity and impacted wealth and asset management revenues.
Potential Inflation and Growth Concerns
Concerns about inflation picking up, growth coming down, and potential impacts from tariff policies.
Company Guidance
During the Q1 2025 earnings call, Fifth Third Bancorp provided robust guidance and performance metrics. The company reported an earnings per share of $0.71, or $0.73 excluding certain items, surpassing consensus estimates. Pre-provision net revenue (PPNR) grew 5% year-over-year, with an adjusted return on equity of 11.2% and a 15% increase in tangible book value per share. Total loans increased by 3% year-over-year, driven by middle market C&I production and consumer secured lending. The company's net interest income (NII) rose by 4%, with net interest margins expanding for five consecutive quarters. On a trailing twelve-month basis, return on assets, return on equity, and efficiency ratio were among the best of its peers. Core deposits remained stable, supported by a 2% growth in total households and a 5% increase in the Southeast. The company maintained a strong liquidity position, ending the quarter with a CET1 ratio of 10.5%. The guidance for 2025 includes record NII and positive operating leverage, with full-year NII expected to grow 5% to 6%. Adjusted non-interest income is projected to rise 1% to 3%, and adjusted non-interest expense to increase 2% to 3%. The company also plans to repurchase $400 million to $500 million of stock during the second half of the year.

Fifth Third Bancorp Financial Statement Overview

Summary
Fifth Third Bancorp shows strong revenue growth and a robust gross profit margin at 100%. Despite an improved debt-to-equity ratio, challenges are noted with a declining net profit margin and decreased cash flow generation. The company demonstrates solid financial health but needs to address cash flow concerns.
Income Statement
78
Positive
Fifth Third Bancorp shows strong revenue growth with a notable increase in total revenue from $8195M to $10426M year-over-year. The gross profit margin remains robust at 100%, indicating effective cost management. However, the net profit margin slightly decreased from 28.67% to 22.19%, reflecting a drop in net income relative to the revenue growth. Positive EBIT margin indicates efficient core operations.
Balance Sheet
72
Positive
The company has a healthy equity position with a debt-to-equity ratio improving significantly from 0.99 to 0.23, which suggests reduced financial leverage. Return on equity decreased from 12.25% to 11.78%, indicating slightly lower profitability relative to shareholders' equity. The equity ratio of 9.23% suggests a reliance on liabilities for asset financing, which is typical in banking.
Cash Flow
65
Positive
Operating cash flow decreased from $4509M to $1328M, indicating challenges in cash generation from operations. Free cash flow decreased from $4018M to $1328M, reflecting less cash available for expansion or debt repayment. The operating cash flow to net income ratio is robust, suggesting earnings quality, but the decline in free cash flow growth rate poses a concern.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
13.05B8.20B9.08B7.95B8.03B
Gross Profit
7.72B7.91B7.54B7.88B6.15B
EBIT
2.92B2.99B3.09B3.52B1.80B
EBITDA
3.41B3.45B3.53B3.87B2.29B
Net Income Common Stockholders
2.31B2.35B2.45B2.77B1.43B
Balance SheetCash, Cash Equivalents and Short-Term Investments
60.13B75.82B62.86B75.67B74.58B
Total Assets
212.93B214.57B207.45B211.12B204.68B
Total Debt
18.97B19.43B18.61B12.65B15.99B
Net Debt
15.96B16.29B15.14B9.65B12.84B
Total Liabilities
193.28B195.40B190.13B188.91B181.57B
Stockholders Equity
19.64B19.17B17.33B22.21B23.11B
Cash FlowFree Cash Flow
2.41B3.99B5.74B2.40B13.00M
Operating Cash Flow
2.82B4.51B6.43B2.70B371.00M
Investing Cash Flow
1.04B-9.49B-4.87B-7.97B-31.90B
Financing Cash Flow
-3.99B4.66B-1.08B5.11B31.40B

Fifth Third Bancorp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price37.98
Price Trends
50DMA
36.96
Positive
100DMA
39.23
Negative
200DMA
41.20
Negative
Market Momentum
MACD
0.37
Positive
RSI
47.21
Neutral
STOCH
45.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FITB, the sentiment is Negative. The current price of 37.98 is below the 20-day moving average (MA) of 38.58, above the 50-day MA of 36.96, and below the 200-day MA of 41.20, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 45.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FITB.

Fifth Third Bancorp Risk Analysis

Fifth Third Bancorp disclosed 47 risk factors in its most recent earnings report. Fifth Third Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Fifth Third Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$23.95B10.4211.46%0.43%0.34%-3.13%
77
Outperform
$22.60B11.9610.30%4.00%7.55%17.46%
RFRF
75
Outperform
$19.34B10.3811.33%4.65%1.05%12.14%
74
Outperform
$25.35B12.0611.71%3.90%5.75%0.68%
MTMTB
74
Outperform
$28.58B11.939.39%3.03%1.20%1.12%
CFCFG
71
Outperform
$17.49B12.846.37%4.17%-2.37%13.92%
64
Neutral
$12.77B9.717.85%78.06%12.07%-7.97%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FITB
Fifth Third Bancorp
37.98
3.62
10.54%
FCNCA
First Citizens BancShares
1,818.68
173.94
10.58%
HBAN
Huntington Bancshares
15.51
3.49
29.03%
MTB
M&T Bank
178.03
37.31
26.51%
RF
Regions Financial
21.51
3.39
18.71%
CFG
Citizens Financial
40.33
7.17
21.62%

Fifth Third Bancorp Corporate Events

Business Operations and StrategyFinancial Disclosures
Fifth Third Bancorp to Present at Financials Conference
Neutral
Jun 10, 2025

On June 10, 2025, Fifth Third Bancorp is scheduled to present at the Morgan Stanley U.S. Financials Conference. The presentation will likely cover the company’s financial condition, results of operations, and future performance plans. The bank emphasizes its disciplined management approach, focusing on stability, profitability, and growth, with a resilient balance sheet and strong credit profile. The announcement reflects Fifth Third’s strategic focus on maintaining a leading market position and expanding its reach in key markets, which could have implications for stakeholders and the financial services industry.

The most recent analyst rating on (FITB) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Fifth Third Bancorp stock, see the FITB Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Fifth Third Bancorp Reports Q1 2025 Earnings
Positive
Apr 17, 2025

Fifth Third Bancorp reported a diluted earnings per share of $0.71 for the first quarter of 2025, driven by loan growth, net interest margin expansion, and disciplined expense management. The company achieved positive operating leverage and a stable net charge-off ratio, with a 3% increase in average loans and a 7% rise in wealth and asset management revenue year-over-year. Despite a challenging economic environment, Fifth Third Bancorp’s diversified business mix and proactive credit risk management have reinforced its position in the industry.

Shareholder MeetingsFinancial Disclosures
Fifth Third Bancorp Highlights 2024 Financial Success
Positive
Apr 15, 2025

During the 2025 Annual Meeting of Shareholders held on April 15, Fifth Third Bancorp highlighted its strong financial performance in 2024, including a 12.47% return on average common equity and a 25% increase in middle market relationship managers in high-growth areas. The company also emphasized its commitment to community development, having delivered over $42 billion towards its sustainability and stewardship target and provided significant charitable donations and community development investments.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.