Fifth Third Bancorp (FITB) Q2 2026 earnings summary

Executive summary

• Reported Q2 2026 EPS was $0.83 ($1.02 adjusted), with net income to common shareholders at $763 million, reflecting strong integration progress with Comerica and significant expansion in assets, loans, and deposits.

• Tangible book value per share increased 10% year-over-year, and the company surpassed $300 billion in total assets, transitioning to a Category III institution.

• Integration milestones achieved, including successful mock conversions and on-track systems conversion for Labor Day, unlocking $850 million in annualized run-rate synergies.

• Broad-based growth in fee businesses, deposit campaigns, and commercial lending, with Southeast and Southwest markets delivering strong deposit and household growth.

• Transitioning to stricter regulatory standards, increasing liquidity and capital requirements.

Financial highlights

• Net interest income was $2.22 billion for Q2 2026, up 14% sequentially and 48% year-over-year, with net interest margin expanding 6 bps to 3.36%.

• Adjusted noninterest income rose 41% year-over-year to $1.06 billion, led by commercial payments, wealth management, and capital markets.

• Adjusted noninterest expense was $1.86 billion, with $203 million in merger-related charges; efficiency ratio improved to 57.1%.

• Average portfolio loans and leases grew 13% sequentially and 44% year-over-year to $178 billion; average deposits reached $232 billion, up 11% sequentially and 42% year-over-year.

• Net income available to common shareholders was $763 million for Q2, up 29% year-over-year.

Outlook and guidance

• Full-year NII guidance raised to $8.74–$8.8 billion; noninterest income guidance raised to $4.06–$4.16 billion; noninterest expense guidance lowered to $7.22–$7.26 billion.

• Full-year adjusted PPNR growth expected to exceed 40% versus 2025; net charge-offs for the second half expected at 30–35 bps.

• CET1 operating target is 10%–10.5%, with capital return via share repurchases expected to resume in the second half.

• Evaluating impact of proposed Basel III reforms and Category III transition, requiring enhanced liquidity and capital standards.

• Continued integration costs and operational synergies from Comerica acquisition expected.