Fifth Third Bancorp (FITB) AI Stock Analysis

• Market Cap: $27.06B
• Dividend Yield: 3.69%
• Average Volume (3M): 7.95M
• Price to Earnings (P/E): 12.2
• 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: 14,991,963
• 30 Day Avg. Volume: 7,949,135
• 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: 1.76
• Enterprise Value/Revenue: 3.71
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: 13.73
• 1Y Price Target: $51.54
• Price Target Upside: 26.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 67 Neutral
• Price Target: $44.00 ▲(7.61% Upside)

Fifth Third Bancorp's overall stock score reflects strong earnings call performance and strategic growth initiatives, which are offset by bearish technical indicators and concerns over declining revenue growth. The stock's reasonable valuation and attractive dividend yield provide some support.

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 shows strong profitability and cash flow generation, with a healthy gross profit margin and solid EBIT and EBITDA margins. However, the decline in revenue growth is a concern, and the operating cash flow to net income ratio is low, indicating potential liquidity issues.

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	12.85B	13.05B	12.36B	9.08B	7.95B	8.03B
Gross Profit	7.84B	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: 40.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 40.89 is below the 20-day moving average (MA) of 43.63, below the 50-day MA of 43.92, and above the 200-day MA of 40.63, indicating a neutral trend. The MACD of -0.76 indicates Positive momentum. The RSI at 34.96 is Neutral, neither overbought nor oversold. The STOCH value of 20.81 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	74 Outperform	$22.72B	10.86	10.37%	4.00%	5.99%	38.40%
RF	73 Outperform	$21.04B	10.39	11.43%	4.30%	4.28%	28.54%
MTB	70 Outperform	$28.23B	11.13	9.61%	3.07%	-0.66%	20.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CFG	67 Neutral	$21.27B	13.83	6.71%	3.41%	-3.70%	40.62%
FITB	67 Neutral	$27.06B	12.23	11.52%	3.69%	-1.74%	11.62%
KEY	64 Neutral	$18.60B	20.88	5.82%	4.83%	3.97%	5473.29%

Fifth Third Bancorp Corporate Events

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.

Fifth Third Bancorp Announces $300M Share Buyback Plan

On July 18, 2025, Fifth Third Bancorp announced a new share repurchase agreement with Deutsche Bank AG, London Branch, to buy back approximately $300 million of its common stock as part of a previously announced 100 million share repurchase program. The transaction is expected to be settled by September 29, 2025, and involves certain customary adjustments and termination provisions, which could impact the number of shares received by Fifth Third. This strategic move is aimed at optimizing capital management and potentially increasing shareholder value.

Fifth Third Bancorp Reports Strong Q2 2025 Results

Fifth Third Bancorp reported its second quarter 2025 financial results, highlighting a diluted earnings per share of $0.88. The company experienced accelerated revenue growth driven by loan growth and net interest margin expansion. Key financial metrics showed improvements, such as a 5% loan growth compared to the previous year and a 12% increase in assets under management. The company’s strategic investments have led to significant growth in adjusted revenues and pre-provision net revenue, marking the highest growth rate in two years.

Fifth Third Bancorp Appoints Kevin Lavender as Vice Chairman

On June 25, 2025, Fifth Third Bancorp announced the appointment of Kevin Lavender as Vice Chairman of the Commercial Bank, effective July 14, 2025. Previously, Mr. Lavender served as Executive Vice President and Head of Commercial Bank since January 2020, indicating a strategic move to strengthen leadership within the company.

Fifth Third Bancorp Announces New Share Repurchase Program

On June 13, 2025, Fifth Third Bancorp‘s Board of Directors authorized a new share repurchase program, allowing the company to buy back up to 100 million shares, replacing a previous authorization from 2019. This move, announced on June 16, 2025, reflects Fifth Third’s strategic focus on capital distribution, subject to ongoing performance evaluations and market conditions.

Fifth Third Bancorp to Present at Financials Conference

On June 10, 2025, Fifth Third Bancorp is scheduled to present at the Morgan Stanley U.S. Financials Conference. The presentation will likely cover the company’s financial condition, results of operations, and future performance plans. The bank emphasizes its disciplined management approach, focusing on stability, profitability, and growth, with a resilient balance sheet and strong credit profile. The announcement reflects Fifth Third’s strategic focus on maintaining a leading market position and expanding its reach in key markets, which could have implications for stakeholders and the financial services industry.