Fifth Third Bancorp (FITB) AI Stock Analysis

• Market Cap: $28.22B
• Dividend Yield: 3.56%
• Average Volume (3M): 8.44M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.19
• Revenue Growth: -1.74%
• EPS Growth: 11.62%
• Country: US
• Employees: 18,786
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.91
• Shares Outstanding: 661,887,270
• 10 Day Avg. Volume: 9,682,698
• 30 Day Avg. Volume: 8,441,451
• 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: 1.69
• Enterprise Value/Revenue: 3.72
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 13.73
• 1Y Price Target: $51.50
• Price Target Upside: 21.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 73 Outperform
• Price Target: $48.00 ▲(13.53% Upside)

Fifth Third Bancorp's overall stock score is driven by its solid financial performance and positive earnings call, highlighting strategic growth initiatives and strong profitability. However, the recent decline in revenue growth and mixed technical indicators temper the outlook. The stock's reasonable valuation and attractive dividend yield provide additional support for the score.

Positive Factors

Merger with Comerica

The merger with Comerica is anticipated to enhance Fifth Third's market presence and growth prospects, providing a strategic advantage in expanding its customer base and service offerings.

Loan and Deposit Growth

Consistent growth in loans and deposits indicates strong demand for Fifth Third's banking services, enhancing revenue stability and supporting long-term financial health.

Strategic Growth in Southeast

Expansion in the Southeast, a rapidly growing region, positions Fifth Third to capture new market opportunities, driving future revenue and customer base expansion.

Negative Factors

Declining Revenue Growth

The decline in revenue growth poses challenges to sustaining profitability and may impact the company's ability to invest in future growth initiatives.

Fraud at Tricolor

Significant fraud-related expenses highlight potential risks in operational oversight, which could affect financial stability and investor confidence if not addressed.

Challenges with NDFI Lending Portfolio

Exposure to NDFI lending portfolio risks could lead to financial instability if contagion effects materialize, necessitating careful risk management strategies.

Fifth Third Bancorp Business Overview & Revenue Model

Company Description

Fifth 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 Money

Fifth Third Bancorp generates revenue through various key streams primarily associated with its banking operations. The largest source of income comes from interest income, which is earned from loans and leases extended to individuals and businesses, as well as from investments in securities. Additionally, the bank earns non-interest income from fees associated with deposit accounts, credit cards, and investment management services. Wealth management and trust services also contribute to revenue through advisory fees. Fifth Third has established strategic partnerships, including collaborations with fintech companies, to enhance its service offerings and improve operational efficiency. Market conditions, interest rates, and economic factors significantly influence the bank's earnings.

Fifth Third Bancorp Financial Statement Overview

Summary

Fifth Third Bancorp demonstrates a solid financial foundation with strong profitability and cash flow generation. However, the recent decline in revenue growth is a significant concern that needs to be addressed to ensure long-term sustainability. The balance sheet remains stable with manageable leverage, and the company is effectively converting net income into free cash flow, which supports its financial health.

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	12.83B	13.05B	12.36B	9.08B	7.95B	8.03B
Gross Profit	7.82B	7.72B	7.91B	7.54B	7.88B	6.15B
EBITDA	3.47B	3.41B	3.45B	3.53B	3.87B	2.29B
Net Income	2.34B	2.31B	2.35B	2.45B	2.77B	1.43B
Balance Sheet
Total Assets	209.99B	212.93B	214.57B	207.45B	211.12B	204.68B
Cash, Cash Equivalents and Short-Term Investments	54.11B	58.94B	74.92B	62.45B	75.16B	73.53B
Total Debt	18.06B	18.97B	19.43B	18.61B	12.65B	15.99B
Total Liabilities	188.87B	193.28B	195.40B	190.13B	188.91B	181.57B
Stockholders Equity	21.12B	19.64B	19.17B	17.33B	22.21B	23.11B
Cash Flow
Free Cash Flow	3.72B	2.41B	3.99B	5.74B	2.40B	13.00M
Operating Cash Flow	4.30B	2.82B	4.51B	6.43B	2.70B	371.00M
Investing Cash Flow	2.36B	1.04B	-9.49B	-4.87B	-7.97B	-31.90B
Financing Cash Flow	-6.53B	-3.99B	4.66B	-1.08B	5.11B	31.40B

Fifth Third Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 42.28 is below the 20-day moving average (MA) of 42.71, below the 50-day MA of 43.94, and above the 200-day MA of 40.66, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 70.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FITB.

Fifth Third Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	―	$25.17B	11.26	10.37%	3.91%	5.99%	38.40%
MTB	―	$28.95B	11.41	9.61%	3.03%	-0.66%	20.36%
FITB	―	$28.22B	12.75	11.52%	3.56%	-1.74%	11.62%
RF	―	$21.92B	10.83	11.43%	4.19%	4.28%	28.54%
CFG	―	$22.51B	14.64	6.71%	3.24%	-3.70%	40.62%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KEY	―	$19.54B	21.94	5.82%	4.66%	3.97%	5473.29%

Fifth Third Bancorp Corporate Events

Fifth Third’s Earnings Call Highlights Growth and Expansion

Fifth Third’s recent earnings call showcased a robust financial performance, marked by significant growth and strategic initiatives. The company highlighted its ability to manage profitability and growth despite challenges, such as the fraud incident at Tricolor and concerns over the NDFI lending portfolio. Overall, the sentiment was positive, reflecting confidence in the company’s future prospects.

Fifth Third Bancorp Reports Strong Q3 2025 Earnings

Fifth Third Bancorp is a diversified financial services company operating in the banking sector, known for its innovative approach and commitment to ethical practices. The company offers a range of financial services including banking, investment, and insurance solutions.

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.

The most recent analyst rating on (FITB) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Fifth Third Bancorp stock, see the FITB Stock Forecast page.

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.

The most recent analyst rating on (FITB) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Fifth Third Bancorp stock, see the FITB Stock Forecast page.

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.

The most recent analyst rating on (FITB) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Fifth Third Bancorp stock, see the FITB Stock Forecast page.

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.

The most recent analyst rating on (FITB) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on Fifth Third Bancorp stock, see the FITB Stock Forecast page.

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.

The most recent analyst rating on (FITB) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Fifth Third Bancorp stock, see the FITB Stock Forecast page.

Fifth Third Bancorp Faces Fraud-Related Impairment Charge

Fifth Third Bancorp recently identified alleged external fraudulent activity at a commercial borrower, leading to an estimated non-cash impairment charge of $170 million to $200 million, which will be recognized in the third quarter of 2025. The bank is collaborating with law enforcement and third-party advisors to assess the extent of potential fraud-related losses, which could significantly impact its financial results and stakeholder interests.

The most recent analyst rating on (FITB) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Fifth Third Bancorp stock, see the FITB Stock Forecast page.