Fifth Third Bancorp (FITB) AI Stock Analysis

• Market Cap: $29.89B
• Dividend Yield: 3.18%
• Average Volume (3M): 6.34M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.02
• Revenue Growth: 0.15%
• EPS Growth: 11.62%
• Country: US
• Employees: 18,786
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.91
• Shares Outstanding: 661,044,800
• 10 Day Avg. Volume: 4,853,274
• 30 Day Avg. Volume: 6,339,545
• PEG Ratio: -5.75
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 2.21
• P/FCF Ratio: 11.97
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 3.72
• Enterprise Value/Gross Profit: 5.94
• Enterprise Value/Ebitda: 13.28
• 1Y Price Target: $51.40
• Price Target Upside: 8.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $51.00 ▲(7.26% Upside)

Fifth Third Bancorp's overall stock score reflects strong financial performance and strategic growth initiatives, particularly the merger with Comerica. The bullish technical indicators and attractive valuation further support the positive outlook. However, challenges in revenue growth and cash flow management are areas to watch.

Positive Factors

Strategic Merger with Comerica

The merger with Comerica enhances market presence and financial stability, creating significant synergies and cost savings, strengthening long-term growth prospects.

Expansion in Southeast

Strategic expansion in high-growth regions like the Southeast boosts market share and supports long-term revenue growth, aligning with demographic trends.

Acquisition of Mechanics Bank’s DUS Business

This acquisition enhances Fifth Third's capabilities in commercial real estate finance, providing access to Fannie Mae products and supporting multifamily housing finance.

Negative Factors

Declining Free Cash Flow Growth

A decline in free cash flow growth can limit investment capacity and affect liquidity, posing a risk to financial flexibility and future growth initiatives.

Fraud Impact

Fraud-related expenses impact profitability and highlight potential vulnerabilities in risk management, which could affect stakeholder confidence and financial results.

Challenges in Revenue Growth

A decline in revenue growth suggests challenges in generating new business, which could impact long-term profitability and market competitiveness.

Fifth Third Bancorp Business Overview & Revenue Model

Company Description

Fifth Third Bancorp (FITB) is a diversified financial services company headquartered in Cincinnati, Ohio. Operating primarily in the Midwest and Southeast regions of the United States, it offers a wide range of banking and financial services through its various segments, including commercial banking, consumer banking, investment advisory, and wealth management. The company's core products include personal and business banking services, mortgages, investment services, and treasury management solutions, catering to both individual and corporate clients.

How the Company Makes Money

Fifth Third Bancorp generates revenue primarily through interest income and non-interest income streams. The largest revenue source is net interest income, which comes from the difference between the interest earned on loans and the interest paid on deposits. The bank offers various loan products, including mortgages, auto loans, and commercial loans, contributing significantly to this income. Additionally, the bank earns non-interest income from service fees, transaction fees, asset management fees, and investment banking services. Key revenue streams also include wealth management services and insurance products. The bank has established partnerships with various financial technology firms to enhance its service offerings, improve customer experience, and expand its digital banking capabilities, which further contribute to its earnings.

Fifth Third Bancorp Financial Statement Overview

Summary

Fifth Third Bancorp shows strong profitability with a healthy gross profit margin and solid cash flow generation. However, the decline in revenue growth is a significant concern that needs to be addressed for long-term sustainability. The balance sheet remains stable with manageable leverage.

Income Statement

Fifth Third Bancorp's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 61.03%, indicating strong profitability. However, the net profit margin has decreased to 18.17% from higher levels in previous years, suggesting some pressure on net income. Revenue growth has been negative recently, with a decline of 19.4% in the TTM period, which is a concern. The EBIT and EBITDA margins remain solid, reflecting operational efficiency, but the declining revenue trend needs to be addressed.

Balance Sheet

The balance sheet of Fifth Third Bancorp shows a stable financial position with a debt-to-equity ratio of 0.86 in the TTM period, which is manageable and has improved from previous years. The return on equity is strong at 11.40%, indicating effective use of equity to generate profits. However, the equity ratio is not explicitly provided, but the overall leverage appears to be under control. The company should focus on maintaining this stability while addressing revenue challenges.

Cash Flow

Cash flow analysis reveals a positive trend with a 16.51% growth in free cash flow in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is low, suggesting that cash generation from operations is not as strong as net income might suggest. However, the free cash flow to net income ratio is high at 86.53%, showing that a significant portion of net income is being converted into free cash flow, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.82B	13.05B	12.36B	9.08B	7.95B	8.03B
Gross Profit	8.02B	7.72B	7.91B	7.54B	7.88B	6.15B
EBITDA	3.59B	3.41B	3.45B	3.53B	3.87B	2.29B
Net Income	2.41B	2.31B	2.35B	2.45B	2.77B	1.43B
Balance Sheet
Total Assets	212.90B	212.93B	214.57B	207.45B	211.12B	204.68B
Cash, Cash Equivalents and Short-Term Investments	56.31B	58.94B	74.92B	62.45B	75.16B	73.53B
Total Debt	18.94B	18.97B	19.43B	18.61B	12.65B	15.99B
Total Liabilities	191.80B	193.28B	195.40B	190.13B	188.91B	181.57B
Stockholders Equity	21.11B	19.64B	19.17B	17.33B	22.21B	23.11B
Cash Flow
Free Cash Flow	3.36B	2.41B	3.99B	5.74B	2.40B	13.00M
Operating Cash Flow	3.48B	2.82B	4.51B	6.43B	2.70B	371.00M
Investing Cash Flow	154.00M	1.04B	-9.49B	-4.87B	-7.97B	-31.90B
Financing Cash Flow	-3.95B	-3.99B	4.66B	-1.08B	5.11B	31.40B

Fifth Third Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FITB, the sentiment is Positive. The current price of 47.55 is above the 20-day moving average (MA) of 43.48, above the 50-day MA of 42.93, and above the 200-day MA of 40.73, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 77.72 is Negative, neither overbought nor oversold. The STOCH value of 81.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FITB.

Fifth Third Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	81 Outperform	$26.76B	11.94	10.37%	3.53%	5.73%	38.39%
RF	79 Outperform	$23.10B	11.59	11.43%	3.76%	4.00%	28.54%
FITB	77 Outperform	$29.89B	13.52	11.52%	3.18%	0.15%	11.62%
MTB	76 Outperform	$30.38B	12.18	9.60%	2.79%	-0.81%	20.34%
CFG	75 Outperform	$24.03B	15.69	6.71%	2.94%	-3.93%	40.62%
KEY	69 Neutral	$21.84B	24.66	5.82%	4.00%	3.86%	5473.29%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Fifth Third Bancorp Corporate Events

Fifth Third Bancorp to Present at Goldman Sachs Conference

On December 10, 2025, Fifth Third Bancorp will present at the Goldman Sachs U.S. Financial Services Conference, highlighting its strategic initiatives and financial performance. The company is focused on expanding its market presence through a merger with Comerica, which is expected to enhance its competitive positioning and operational scale. However, the merger faces potential risks and uncertainties, including regulatory approvals and integration challenges, which could impact the anticipated benefits for stakeholders.

Fifth Third Bancorp Announces Major Merger with Comerica

On November 7, 2025, Fifth Third Bancorp announced its participation in the BancAnalysts Association of Boston’s Annual Bank Conference. The company is currently engaged in a significant merger with Comerica Incorporated, aiming to create the ninth largest U.S. bank. This strategic transaction is expected to enhance Fifth Third’s market presence, particularly in high-growth areas, and improve its financial stability and profitability. The merger is anticipated to bring substantial synergies and cost savings, although there are risks associated with integration and regulatory approvals. The transaction is part of Fifth Third’s long-term strategy to expand its footprint and strengthen its position in the banking industry.

Fifth Third Bancorp Reports Q3 2025 Earnings Growth

Fifth Third Bancorp reported a diluted earnings per share of $0.91 for the third quarter of 2025, marking the fourth consecutive quarter of positive operating leverage driven by strong revenue growth and disciplined expense management. The company achieved significant growth in net interest income and capital markets fees, while maintaining a well-diversified balance sheet and improving efficiency ratios, highlighting its strong financial positioning and strategic focus.

Fifth Third Bancorp Announces Merger with Comerica

On October 5, 2025, Fifth Third Bancorp announced a merger agreement with Comerica Incorporated, where Comerica will merge into Fifth Third’s subsidiary, Fifth Third Intermediary. This strategic merger, approved by both companies’ boards, will involve the conversion of Comerica’s common and preferred stocks into Fifth Third’s stocks, and is expected to enhance Fifth Third’s market position by integrating Comerica’s banking operations into its own, pending regulatory approvals and shareholder votes.

Fifth Third Bancorp Announces $10.9B Merger with Comerica

On October 6, 2025, Fifth Third Bancorp and Comerica Incorporated announced a definitive merger agreement, with Fifth Third acquiring Comerica in an all-stock transaction valued at $10.9 billion. This merger will create the 9th largest U.S. bank, enhancing Fifth Third’s market position and expanding its geographic reach, particularly in high-growth regions. The transaction is expected to close by the end of the first quarter of 2026, pending regulatory and shareholder approvals, and aims to deliver significant value to shareholders and strengthen the combined company’s competitive position.

Fifth Third Completes $300M Share Repurchase Agreement

On July 18, 2025, Fifth Third Bancorp entered into an accelerated share repurchase agreement with Deutsche Bank AG, purchasing approximately $300 million of its common stock as part of its 100 million share repurchase program. By September 29, 2025, Fifth Third had repurchased a total of 6,929,352 shares at an average price of $43.2941 per share, leaving approximately 93.1 million shares available for future repurchase under the program.

Fifth Third Bancorp to Redeem Series L Preferred Stock

On September 19, 2025, Fifth Third Bancorp announced its plan to redeem all outstanding 4.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series L, and associated depositary shares by September 30, 2025. This redemption will result in a $3.5 million reduction in net income available to common shareholders for the third quarter of 2025, treated as an incremental preferred dividend expense, and will leave no Series L Preferred Stock or Depositary Shares outstanding.