Fifth Third Bancorp 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 reported EPS of $0.83 compares to an adjusted EPS of $1.02, which beat the analyst consensus estimate of $0.95 by 7.37%. The company reported quarterly sales of $3.279 billion, which beat the analyst consensus estimate of $3.250 billion by 0.89%. Despite the earnings beat, shares were down 2.32% at $57.99 on Friday, as investors weighed integration costs against the strong financial performance.

The second quarter of 2026 marked an important milestone for Fifth Third, as the Cincinnati, Ohio-based bank surpassed $300 billion in total assets and formally became a Category III institution. The bank has been preparing for this transition over multiple years through sustained investments in risk, capital, liquidity, and regulatory reporting. Year-to-date merger-related charges represent approximately 65% of the expected full-year total, suggesting the heaviest integration costs are now largely behind the company.

Key Financial Highlights

The following table summarizes Fifth Third's key income statement metrics across recent quarters ($ in millions, except per share data):

Net Interest Income and Margin

Net interest income (FTE) of $2.220 billion increased 14% sequentially and 48% year-over-year, primarily reflecting the full-quarter contribution from the Comerica acquisition. Organic loan production, continued fixed-rate asset repricing, and disciplined liability management also contributed to growth. Net interest margin expanded 6 basis points sequentially to 3.36%, driven by merger impacts, higher earning asset yields, and improved deposit pricing. Consumer deposits grew $4.6 billion in the quarter, contributing to a 2 basis point decrease in interest-bearing deposit costs.

Noninterest Income and Expense

Noninterest income of $1.059 billion increased 18% sequentially and 41% year-over-year. Excluding certain items, adjusted noninterest income was $1.040 billion, up 13% sequentially and 41% year-over-year. Growth was driven by the full-quarter contribution from Comerica and momentum across fee businesses. Wealth and asset management revenue reached $256 million (+54% YoY), commercial payments revenue was $254 million (+67% YoY), capital markets fees were $154 million (+71% YoY), and commercial banking revenue was $125 million (+58% YoY).

Noninterest expense of $2.109 billion decreased 12% from the prior quarter and increased 67% from the year-ago quarter. Excluding certain items and non-qualified deferred compensation, adjusted noninterest expense was $1.861 billion, up 5% sequentially and 51% year-over-year. The adjusted efficiency ratio improved 480 basis points sequentially to 57.1%.

Balance Sheet and Credit Quality

Average portfolio loans and leases of $178 billion increased 13% sequentially and 44% year-over-year. 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.

Credit quality showed continued improvement. Net charge-offs totaled $135 million, with the NCO ratio improving 7 basis points sequentially to 0.30% — the lowest level since the second quarter of 2023. The provision for credit losses dropped 43% sequentially to $129 million as charge-off trends improved broadly. The allowance for credit losses (ACL) ratio was 1.76% of total portfolio loans and leases. 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.

Capital Position

Fifth Third maintained a strong capital position with the CET1 capital ratio increasing 4 basis points sequentially to 9.93%. The Tier 1 risk-based capital ratio stood at 10.81% and total risk-based capital ratio was 12.50%. Tangible book value per share (including AOCI) was $23.15. There was no share repurchase activity in the first half of 2026.

Management Commentary

Tim Spence, Fifth Third Chairman, CEO and President, commented: "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 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 beginning to materialize across the expanded footprint with the deposit campaign in Comerica's Southwest markets exceeding internal targets.

Fifth Third has been named the United States’ Best Bank in the Euromoney Awards for Excellence 2026, a global program recognizing financial institutions for performance, innovation, client service and long-term impact. The award underscores the bank's transformation into the ninth-largest US bank, marked by greater scale, diversified earnings and an expanded presence in high-growth markets following its merger with Comerica.

The recognition reflects a decade of strategic choices focused on disciplined organic growth, selective M&A and sustained investment in capabilities. Bryan Preston, chief financial officer at Fifth Third, attributed the achievement to execution and a diversified business model rather than scale alone. He emphasized that the franchise has built a resilient balance sheet and increased its capacity to invest in products, technology and markets for customers, communities and shareholders through the cycle.

Strategic Growth and Innovation

Fifth Third’s strategy has centered on deepening customer relationships through a strengthened middle-market banking platform and scaled fee-based businesses, including Commercial Payments and Wealth & Asset Management. The bank has expanded its branch network in high-growth markets to drive long-term value.

Technology-led innovation remains a core component of the bank's growth strategy. Fifth Third has enhanced its digital banking experience and expanded embedded payments through Newline™ by Fifth Third. These scalable platforms are designed to support customers while creating capacity for future investment.

Award History and Recognition

The 2026 award marks the first time Fifth Third has been named United States’ Best Bank by Euromoney. Previously, the bank was named U.S. Best Super-Regional Bank in 2024 and 2025. The Euromoney Awards for Excellence program evaluates institutions based on their ability to deliver strong service, innovation and solutions for customers.