Argus cuts Fifth Third earnings outlook on slower loan growth

Argus analyst Stephen Biggar keeps a Buy rating with $40 price target on Fifth Third but cuts the firm’s FY23 EPS view by 40c to $3.20 and its FY24 view by 46c to $3.28 after the company’s Q2 results. Average deposits were flat sequentially, while period-end deposits increased 1%, which should alleviate fears about deposit outflows, but the firm’s reduced earnings outlook reflects slower loan growth and the impact of higher deposit costs on the net interest margin, the analyst tells investors in a research note.