Fifth Third Bancorp Q3 net interest income jumps on Comerica acquisition

By Reuters News


Overview

  • U.S. regional bank's Q3 net income rose 36% yr/yr, reported EPS flat at $0.90

  • Q3 net interest income rose 49% yr/yr, driven by Comerica acquisition

  • Adjusted EPS for Q3 was $1.13, excluding merger-related and other charges


Outlook

  • Company expects continued competition for deposits amid a volatile economic environment

  • Fifth Third says its funding mix provides flexibility in changing interest rate conditions


Result Drivers

  • HIGHER MARKET RATES AND LOAN GROWTH - Co said net interest income rose due to higher market rates, loan growth, and asset repricing, partly offset by higher deposit costs

  • DEPOSIT GROWTH - Co attributed deposit growth to operational increases, Southwest retail campaign, and Comerica sweep balance migration

  • COMMERCIAL LOAN GROWTH - Co said sequential growth was led by commercial loans and leases, with consumer loans stable


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.90

Q3 Net Income

$828 mln

Q3 Net Interest Income

$2.27 bln

Q3 CET1 Capital Ratio

10.02%


Reuters Recommended Reads

  • Oct 16 - US regional banks join bigger peers in signaling resilient economy as lending holds firm

  • Oct 17 - India's ICICI Bank Q2 profit rises 20.1%, beats estimates

  • Oct 16 - Commercial bank Truist's Q3 adjusted EPS beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.