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Yahoo
6 days ago
- Business
- Yahoo
DA Davidson Stays Positive on Fifth Third Bancorp (FITB), Keeps Buy Rating
Fifth Third Bancorp (NASDAQ:FITB) is one of the 10 Best Financial Stocks on Wall Street's Radar. On July 18, DA Davidson maintained a 'Buy' rating on Fifth Third Bancorp (NASDAQ:FITB) and kept its price target of $47. The investment firm still has a positive view of the banking company despite noting that Fifth Third Bancorp (NASDAQ:FITB) has indicated loan growth will likely moderate in the second half of 2025. The company has also tempered its fee income growth guidance for the full year. This prompted DA Davidson to slightly reduce its earnings per share forecasts for Fifth Third Bancorp (NASDAQ:FITB). An empowered woman in the boardroom leading a discussion on the company's wealth & asset management strategy. According to DA Davidson, the company's management is still aiming to deliver 150 to 200 basis points of positive operating leverage, even if the capital markets do not recover. The firm highlighted strong first-half 2025 performance and noted that Fifth Third Bancorp (NASDAQ:FITB) has several expense reduction options available. Additionally, DA Davidson's analysis suggests that the company is on track to achieve record net interest income even without interest rate cuts from the Federal Reserve or any further loan growth. Fifth Third Bancorp (NASDAQ:FITB) is a bank holding company for Fifth Third Bank, which offers a wide range of financial services to individuals, families, and businesses. While we acknowledge the potential of FITB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
17-07-2025
- Business
- Yahoo
Fifth Third Q2 Earnings Top Estimates on Higher NII & Fee Income
Fifth Third Bancorp FITB reported second-quarter 2025 adjusted earnings per share (EPS) of 9 cents, surpassing the Zacks Consensus Estimate of 87 cents. In the prior-year quarter, the company posted an EPS of 86 cents. Results benefited from a rise in net interest income (NII), fee income and loan balances. However, higher expenses and weak asset quality were headwinds. Results included a negative 2-cent impact of certain items. After considering this, the company has reported net income available to common shareholders (GAAP basis) of $591 million, down 5.3% year over year. FITB's Quarterly Revenues & Expenses Rise Total quarterly revenues in the reported quarter were $2.25 billion, which increased 7.7% year over year. Further, the top line surpassed the Zacks Consensus Estimate by 1.8%. Fifth Third's NII (on an FTE basis) was $1.5 billion, up 7.6% year over year. Our estimate for NII was pegged at $1.48 billion. The net interest margin (on an FTE basis) increased year over year to 3.12% from 2.88%. Our estimate for net interest margin was 3.05%. Non-interest income rose 7.9% year over year to $750 million. This rise was primarily due to an increase in revenues from wealth and asset management and consumer banking fees. Our estimate for non-interest income was pinned at $721.6 million. Non-interest expenses increased 3.5% year over year to $1.26 billion. The increase was primarily due to a rise in all cost components except occupancy and other non-interest income. Our estimate for the metric was $1.27 billion. FITB's Credit Quality Deteriorates The company has reported a provision for credit losses of $173 million, up 78% from the year-ago quarter. Our estimate for the metric was pinned at $149.1 million. Moreover, the total non-performing portfolio loans and leases were $886 million, up 37.8% year over year. Net charge-offs in the first quarter increased to $139 million or 0.45% of average loans and leases (on an annualized basis) from $144 million or 0.49% in the prior-year quarter. Our estimate for net charge-offs was $145.3 million. The total allowance for credit losses increased 5.5% to $2.56 billion year over year. Our estimate for allowance for credit losses was pinned at $2.53 billion. Fifth Third's Capital Position Mixed The Tier 1 risk-based capital ratio was 11.83% compared with 11.93% posted in the prior-year quarter. The CET1 capital ratio was 10.56%, down from 10.62% in the year-ago quarter. The leverage ratio was 9.42% compared with the year-earlier quarter's 9.07%. Our Viewpoint on Fifth Third A rise in NII, driven by loan growth, deposit rate management, and fixed-rate asset repricing, supported top-line growth. Strategic acquisitions have diversified Fifth Third's revenue sources, which will aid its top-line growth in the future. However, higher expenses and weak asset quality remain near-term concerns. Fifth Third Bancorp Price, Consensus and EPS Surprise Fifth Third Bancorp price-consensus-eps-surprise-chart | Fifth Third Bancorp Quote Currently, Fifth Third carries a Zacks Rank #3 (Hold). You can seethe complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performance of Other Banks State Street's STT second-quarter 2025 adjusted earnings of $2.53 per share surpassed the Zacks Consensus Estimate of $2.36. The bottom line also increased 17.7% from the prior-year quarter. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Results were aided by growth in fee revenues. Also, STT witnessed improvements in total assets under custody and administration and assets under management balances. However, higher adjusted expenses, a jump in provisions and lower NII acted as spoilsports. Hancock Whitney Corp.'s HWC second-quarter 2025 adjusted earnings per share of $1.37 exceeded the Zacks Consensus Estimate of $1.34. Further, the bottom line rose 4.6% from the prior year quarter. HWC's results benefited from an increase in non-interest income and NII. Also, higher loans were another positive. However, higher adjusted expenses and provisions alongside lower deposit balances were headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report State Street Corporation (STT) : Free Stock Analysis Report Hancock Whitney Corporation (HWC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
17-07-2025
- Business
- Yahoo
Fifth Third Bancorp's (NASDAQ:FITB) Q2: Beats On Revenue
Regional banking company Fifth Third Bancorp (NASDAQ:FITB) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 8.1% year on year to $2.25 billion. Its GAAP profit of $0.88 per share was 1.5% above analysts' consensus estimates. Is now the time to buy Fifth Third Bancorp? Find out in our full research report. Fifth Third Bancorp (FITB) Q2 CY2025 Highlights: Net Interest Margin: 3.1% vs analyst estimates of 3.1% (24 basis point year-on-year increase, 6.8 bps beat) Revenue: $2.25 billion vs analyst estimates of $2.22 billion (8.1% year-on-year growth, 1.2% beat) Efficiency Ratio: 56.2% vs analyst estimates of 55.8% (0.4 percentage point miss) EPS (GAAP): $0.88 vs analyst estimates of $0.87 (1.5% beat) Market Capitalization: $28.74 billion Company Overview Named after the merger of Third National Bank and Fifth National Bank in 1908, Fifth Third Bancorp (NASDAQ:FITB) is a financial services company that provides banking, lending, wealth management, and investment services to individuals and businesses across the Midwest and Southeast. Sales Growth Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Regrettably, Fifth Third Bancorp's revenue grew at a tepid 1.7% compounded annual growth rate over the last five years. This was below our standards and is a poor baseline for our analysis. Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Fifth Third Bancorp's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.1% annually. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Fifth Third Bancorp reported year-on-year revenue growth of 8.1%, and its $2.25 billion of revenue exceeded Wall Street's estimates by 1.2%. Net interest income made up 64.8% of the company's total revenue during the last five years, meaning lending operations are Fifth Third Bancorp's largest source of revenue. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Tangible Book Value Per Share (TBVPS) The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential. This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights. Fifth Third Bancorp's TBVPS declined at a 1.5% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 15.9% annually over the last two years from $15.61 to $20.98 per share. Over the next 12 months, Consensus estimates call for Fifth Third Bancorp's TBVPS to grow by 8.9% to $22.85, decent growth rate. Key Takeaways from Fifth Third Bancorp's Q2 Results It was encouraging to see Fifth Third Bancorp beat analysts' tangible book value per share expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street's estimates. On the other hand, its EPS was in line. Zooming out, we think this was a decent quarter. The stock remained flat at $43.06 immediately following the results. Is Fifth Third Bancorp an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
16-07-2025
- Business
- Yahoo
What To Expect From Fifth Third Bancorp's (FITB) Q2 Earnings
Regional banking company Fifth Third Bancorp (NASDAQ:FITB) will be reporting earnings this Thursday before market hours. Here's what to expect. Fifth Third Bancorp missed analysts' revenue expectations by 0.9% last quarter, reporting revenues of $2.13 billion, up 1.8% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts' tangible book value per share estimates but net interest income in line with analysts' estimates. Is Fifth Third Bancorp a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Fifth Third Bancorp's revenue to grow 6.7% year on year to $2.22 billion, a reversal from the 4.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.87 per share. Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 9 downward revisions over the last 30 days (we track 10 analysts). Fifth Third Bancorp has missed Wall Street's revenue estimates five times over the last two years. Looking at Fifth Third Bancorp's peers in the banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Fulton Financial's revenues decreased 3.2% year on year, beating analysts' expectations by 1.9%, and FB Financial reported a revenue decline of 40.1%, falling short of estimates by 43.5%. FB Financial traded down 4.4% following the results. Read our full analysis of Fulton Financial's results here and FB Financial's results here. There has been positive sentiment among investors in the banks segment, with share prices up 8.3% on average over the last month. Fifth Third Bancorp is up 13.7% during the same time and is heading into earnings with an average analyst price target of $46.93 (compared to the current share price of $43.56). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Fifth Third Bancorp Earnings Preview: What to Expect
With a market cap of $27.7 billion, Fifth Third Bancorp (FITB) is a diversified financial services company and operates as the bank holding company for Fifth Third Bank, National Association. The Cincinnati, Ohio-based company operates through four segments: Commercial Banking, Consumer and Small Business Banking, Wealth and Asset Management, and Corporate and Other. The company is expected to release its Q2 2025 earnings before the market opens on Thursday, Jul. 17. Ahead of this event, analysts expect FITB to post a profit of $0.87 per share, reflecting a growth of 1.2% from $0.86 per share reported in the same quarter last year. Additionally, the company has surpassed Wall Street's bottom-line estimates in the past four quarters. Holiday Trading, Trade Negotiations and Other Key Things to Watch this Week Options Flow Alert: Bulls Making Their Move in GOOGL Stock Stocks Set to Open Higher Amid Trade Progress, U.S. Jobs Data and Powell's Remarks Awaited Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2025, analysts forecast Fifth Third to report an EPS of $3.53, a 4.8% increase from $3.37 in fiscal 2024. Moreover, in fiscal 2026, its earnings are expected to surge 12.8% year-over-year to $3.98 per share. FITB stock has gained 15.8% over the past 52 weeks, surpassing the S&P 500 Index's ($SPX) 12.6% rise. However, the stock has lagged behind the Financial Select Sector SPDR Fund's (XLF) 26.8% returns during the same period. Fifth Third Bancorp stock declined marginally after the release of its Q1 2025 results on Apr. 17. Net interest income (on an FTE basis) rose 3.7% year-over-year to $1.4 billion, supported by effective deposit and wholesale funding strategies that helped lower interest-bearing liabilities costs. Total noninterest income declined 2.3% to $694 million. Its EPS increased 1.4% from the prior-year quarter to $0.71. Additionally, total consumer loans grew 4.6% year-over-year to $46.6 billion, driven by growth in indirect secured consumer loans, residential mortgages, and solar energy installation loans. Analysts' consensus view on FITB stock remains moderately optimistic, with an overall "Moderate Buy" rating. Out of 24 analysts covering the stock, opinions include 14 "Strong Buys," one "Moderate Buy,' and nine "Holds.' As of writing, it is trading below the mean price target of $44.39. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
