Fifth Third Bancorp Reports Second Quarter 2026 Earnings

Organic momentum and integration progress advance the earnings power of the combined company

Reported EPS of $0.83; adjusted EPS^(a) of $1.02 excludes $0.19 of certain items on page 2

Fifth Third Bancorp (NYSE:FITB):

Fifth Third's second quarter was another step toward the earnings power we committed to deliver by year-end. Our core business continues to grow, with momentum across our fee businesses, led by wealth and asset management, commercial payments, and capital markets. The results were higher returns and tangible book value per share growth. Our balance sheet is well-positioned, supporting net interest margin expansion and improved credit performance.

The Comerica integration remains on track. Systems conversion is scheduled for Labor Day weekend and is the final step to unlocking the full run-rate of our expected cost synergies. Revenue synergies are emerging across our expanded footprint. Our deposit campaigns in the Comerica Southwest markets delivered results above our internal targets, and end-of-period commercial loan growth was broad-based across legacy geographies and specialty verticals.

Our capital generation supports both reinvestment in the business and consistent returns to shareholders. Investments in deposits, payments, technology, and high-growth markets are increasingly visible in our results. We are building a Fifth Third that is not just larger, but is better and more resilient. We will continue to be guided by our operating priorities of stability, profitability, and growth – in that order.

Fifth Third Bancorp (NYSE:FITB) today reported second quarter 2026 net income available to common shareholders of $763 million, or $0.83 per diluted share, compared to $128 million, or $0.15 per diluted share, in the prior quarter and $591 million, or $0.88 per diluted share, in the year-ago quarter.

The second quarter of 2026 marked an important milestone for Fifth Third, surpassing $300 billion in total assets and formally becoming a Category III institution. Fifth Third has been preparing for a Category III transition over multiple years through sustained investments in risk, capital, liquidity, and regulatory reporting and is well-positioned to meet all Category III requirements on or before required dates.

Net interest income (FTE) of $2.220 billion increased 14% sequentially and 48% year-over-year. Both increases primarily reflect the addition of Comerica for a full-quarter. Organic loan production, continued fixed-rate asset repricing, and disciplined liability management also contributed to this growth. Net interest margin expanded 6 bps sequentially to 3.36% due to merger impacts, higher earning asset yields, and improved deposit pricing. Consumer deposits grew $4.6 billion as we continue to re-mix toward a more granular deposit base, which contributed to the 2 bps decrease in interest-bearing deposit costs.

Noninterest income of $1.059 billion increased $164 million, or 18% sequentially and $309 million, or 41%, year-over-year. The reported results reflect the impact of certain items in the table below, including securities gains/losses which incorporate the mark-to-market impacts from securities tied to non-qualified deferred compensation plans, which are offset in noninterest expense. Securities repositioning losses of approximately $10 million reflect active portfolio management resulting in opportunistically repositioning $4 billion of notional short-duration securities to accelerate cash flow reinvestment, enhance net interest income and reduce down-rate risk sensitivity.

Noninterest income excluding certain items of $1.040 billion increased $119 million, or 13%, compared to the prior quarter and increased $305 million, or 41%, from the year-ago quarter.

Growth was driven by the full-quarter contribution from Comerica and momentum across our fee businesses. Wealth and asset management revenue of $256 million benefited from higher personal asset management revenue, 8% sequential assets under management growth, and favorable market performance, partially offset by the seasonal decline in tax‑related revenue from first-quarter highs. Commercial payments revenue of $254 million reflected continued strength in core treasury services and Newline. Capital markets fees of $154 million were led by client financial risk management and loan syndication activity. Commercial banking revenue of $125 million was driven by higher commercial lending-related activity and mortgage banking net revenue of $39 million declined on lower gains on loan sales.

Noninterest expense of $2.109 billion decreased 12% from the prior quarter and increased 67% from the year-ago quarter. The reported results reflect the impact of certain items in the table below.

Noninterest expense excluding certain items and non-qualified deferred compensation of $1.861 billion increased 5% sequentially and 51% year-over-year. Sequential growth reflected the full-quarter contribution from Comerica, higher technology and communications expense tied to integration activity, and elevated marketing spend supporting the Comerica deposit campaign, partially offset by lower compensation and benefits.

Year-to-date merger-related charges represent approximately 65% of the expected full-year total, consistent with our integration timeline.

Total average portfolio loans and leases of $178 billion increased 13% sequentially and 44% year-over-year. Growth in both periods reflected the full-quarter contribution from Comerica, as well as underlying commercial loan momentum.

Within the total, average commercial portfolio loans and leases of $124 billion grew 17% sequentially and 65% year-over-year, while average consumer portfolio loans of $53 billion grew 3% sequentially and 12% year-over-year, primarily reflecting growth in residential mortgage and home equity balances.

Average securities (taxable and tax-exempt; amortized cost) of $68 billion increased 13% sequentially and 21% year-over-year, reflecting the addition of Comerica's securities portfolio and ongoing reinvestment activity. Average other short-term investments (including interest-bearing cash) of $18 billion decreased 7% sequentially and increased 44% year-over-year. The sequential decline primarily reflected the continued repositioning of the Comerica securities portfolio, seasonal deposit trends and loan growth.

Period-end commercial portfolio loans and leases of $125 billion increased 2% sequentially and 68% year-over-year. Sequential growth was led by C&I, reflecting strong origination activity across corporate banking and middle market, partially offset by elevated payoffs.

Period-end consumer portfolio loans of $54 billion were flat sequentially and increased 11% year-over-year. Sequentially, continued momentum in home equity and growth in residential mortgage were offset by declines in indirect secured consumer and solar energy installation balances.

Total period-end securities (taxable and tax-exempt; amortized cost) of $68 billion increased 1% sequentially and 24% year-over-year. Period-end other short-term investments of $19 billion increased 11% sequentially and increased 48% year-over-year. The sequential increase primarily reflects the reversal of seasonal deposit trends experienced earlier in the quarter.

Total average deposits of $232 billion increased 11% sequentially and 42% year-over-year. Period-end total deposits of $234 billion were flat sequentially and up 43% year-over-year.

Period-end consumer deposits grew $4.6 billion in the quarter, supported by outperformance from the Comerica retail deposit campaign, and were largely offset by the intentional reduction of higher-cost, non-relationship commercial deposits. This mix shift is consistent with the strategy to increase granular consumer deposits.

The period-end portfolio loan-to-core deposit ratio was 77%, compared to 76% in both the prior and year-ago quarters, reflecting balanced growth in loans and deposits.

Average wholesale funding of $26 billion increased 20% sequentially, driven primarily by a $3.3 billion increase in short-term FHLB advances used to bridge the seasonal trough in commercial deposit balances.

Compared to the year-ago quarter, average wholesale funding increased 16%, driven by a $4.2 billion increase in long-term debt associated with the Comerica acquisition, partially offset by a $1.5 billion decline in FHLB advances as strong deposit growth reduced the reliance on wholesale funding.

The provision for credit losses totaled $129 million in the current quarter, down from $227 million in the prior quarter, which included an $83 million Day 1 allowance build associated with the Comerica acquisition. The ACL ratio was 1.76% of total portfolio loans and leases at quarter end, down 3 bps sequentially and 33 bps year-over-year, primarily reflecting the addition of Comerica's portfolio mix and continued strong credit performance. The ACL coverage ratio remained strong at 303% of nonperforming portfolio loans and leases and 293% of nonperforming portfolio assets.

Net charge-offs totaled $135 million, and the NCO ratio improved 7 bps sequentially to 0.30%, the lowest level since the second quarter of 2023. Commercial net charge-offs of $64 million represented a commercial NCO ratio of 0.21%, down 5 bps sequentially, while consumer net charge-offs of $71 million equated to a consumer NCO ratio of 0.53%, also down 5 bps from the prior quarter.

Compared to the year-ago quarter, the NCO ratio improved 15 bps, with the commercial NCO ratio down 17 bps and the consumer NCO ratio down 3 bps.

Nonperforming portfolio loans and leases totaled $1.041 billion, representing an NPL ratio of 0.58%, compared to 0.54% in the prior quarter and 0.70% in the year-ago quarter. Nonperforming portfolio assets totaled $1.075 billion, an NPA ratio of 0.60%, compared to 0.57% in the prior quarter and 0.72% in the year-ago quarter. The sequential increase reflected modest growth in consumer and commercial NPAs.

Fifth Third maintained a strong capital position. CET1 capital ratio increased 4 bps sequentially to 9.93%, as stronger capital generation was partially offset by risk-weighted asset growth. The year-to-date decrease in CET1 reflects the capital impacts from the Comerica acquisition and $933 million of pre-tax merger related impacts. There was no share repurchase activity in the first half of 2026.

Tax Rate

The effective tax rate for the quarter was 22.7% compared with 20.1% in the prior quarter and 22.2% in the year-ago quarter.

Conference Call

Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on "About Us" then "Investor Relations"). Those unable to listen to the live webcast may access a webcast replay through the Fifth Third Investor Relations website at the same web address, which will be available for 30 days.

Corporate Profile

Fifth Third is a bank that's as long on innovation as it is on history. Since 1858, we've been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it's one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere's World's Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is to be the one bank people most value and trust.

Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank, and its common stock is traded on the New York Stock Exchange under the symbol "FITB." Investor information and press releases can be viewed at www.53.com. Deposit and credit products provided by Fifth Third Bank, National Association. Member FDIC.

Earnings Release End Notes

FORWARD-LOOKING STATEMENTS

This release contains statements that we believe are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements other than statements of historical fact are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as "will likely result," "may," "are expected to," "is anticipated," "potential," "estimate," "forecast," "projected," "intends to," or may include other similar words or phrases such as "believes," "plans," "trend," "objective," "continue," "remain," or similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K as updated by our filings with the U.S. Securities and Exchange Commission ("SEC").

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) deteriorating credit quality; (2) loan concentration by location or industry of borrowers or collateral; (3) any instability or disruption in the financial system, including those caused by actual or perceived issues affecting the soundness of other financial institutions or market participants; (4) inadequate sources of funding or liquidity; (5) unfavorable actions of rating agencies; (6) inability to maintain or grow deposits; (7) limitations on the ability to receive dividends from subsidiaries; (8) cyber-security risks; (9) Fifth Third’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (10) failures by third-party service providers; (11) inability to manage strategic initiatives and/or organizational changes; (12) inability to implement technology system enhancements, including the use of artificial intelligence; (13) failure of internal controls and other risk management programs; (14) losses related to fraud, theft, misappropriation or violence; (15) inability to attract and retain skilled personnel; (16) adverse impacts of government regulation; (17) governmental or regulatory changes or other actions; (18) failures to meet applicable capital requirements; (19) regulatory objections to Fifth Third’s capital plan; (20) regulation of Fifth Third’s derivatives activities; (21) deposit insurance premiums; (22) assessments for the orderly liquidation fund; (23) weakness in the national or local economies; (24) global political and economic uncertainty or negative actions; (25) changes in interest rates and the effects of inflation; (26) changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs; (27) changes and trends in capital markets; (28) fluctuation of Fifth Third’s stock price; (29) volatility in mortgage banking revenue; (30) litigation, investigations, and enforcement proceedings; (31) breaches of contractual covenants, representations and warranties; (32) competition and changes in the financial services industry; (33) potential impacts of the adoption of real-time payment networks; (34) changing retail distribution strategies, customer preferences and behavior; (35) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (36) potential dilution from future acquisitions; (37) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (38) results of investments or acquired entities; (39) changes in accounting standards or interpretation or declines in the value of Fifth Third’s goodwill or other intangible assets; (40) inaccuracies or other failures from the use of models; (41) effects of critical accounting policies and judgments or the use of inaccurate estimates; (42) weather-related events, other natural disasters, or health emergencies (including pandemics); (43) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity; (44) changes in law or requirements imposed by Fifth Third’s regulators impacting our capital actions, including dividend payments and stock repurchases; (45) Fifth Third's ability to meet its environmental and/or social targets, goals and commitments; and (46) risks relating to the merger with Comerica Incorporated, including Fifth Third’s inability to realize the anticipated benefits of the merger and potential disruption to Fifth Third’s business resulting from post-merger integration.

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or "SEC," for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.

Quarterly Financial Review for June 30, 2026

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