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Fifth Third Bancorp (FITB) Stock

Fifth Third Bancorp Stock Details, Movements and Public Alerts

Fifth Third Bancorp (FITB): The $30B Midwest Regional Bank Balancing Growth and Defensive Positioning

Named for the 1908 merger of Fifth National Bank and Third National Bank, Fifth Third Bancorp has grown from Cincinnati roots into a $213B-asset regional powerhouse spanning Ohio to Florida. CEO Tim Spence, who took the helm in 2022, inherited a bank already transformed under predecessor Greg Carmichael's digital-first strategy—Fifth Third's Momentum Banking platform acquires customers at half the cost of traditional branches. The bank's fee income ratio of 40%+ ranks among the highest in regional banking, with strength in commercial payments, wealth management, and mortgage banking providing earnings diversification. Trading at 10x forward earnings with a 4%+ dividend yield, Fifth Third offers Midwest/Southeast exposure with better-than-peer credit quality. The SVB crisis of 2023 proved Fifth Third's deposit stability—uninsured deposits of 35% are well below the 50%+ levels that triggered bank runs elsewhere.

52-Week Range

$48.71 - $31.68

-1.66% from high · +51.20% from low

Avg Daily Volume

250

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

14.46

Below market average

Forward P/E

11.98

Earnings expected to grow

PEG Ratio

2.44

Potentially overvalued

Price to Book

1.65

EPS (TTM)

$3.33

Price to Sales

3.92

Beta

1.01

Similar volatility to market

How is FITB valued relative to its earnings and growth?
Fifth Third Bancorp trades at a P/E ratio of 14.46, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 11.98 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.44 indicates a premium valuation even accounting for growth.
What is FITB's risk profile compared to the market?
With a beta of 1.01, Fifth Third Bancorp is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 1.65 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

29.70%

Operating Margin

39.80%

Return on Equity

11.50%

Return on Assets

1.13%

Revenue Growth (YoY)

6.70%

Earnings Growth (YoY)

16.70%

How profitable and efficient is FITB's business model?
Fifth Third Bancorp achieves a profit margin of 29.70%, meaning it retains $29.70 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 39.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 11.50% and ROA at 1.13%, the company achieves moderate returns on invested capital.
What are FITB's recent growth trends?
Fifth Third Bancorp's revenue grew by 6.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 16.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against BANKS - REGIONAL industry averages for proper context.

Dividend Information

Dividend Per Share

$1.51

Dividend Yield

3.12%

Ex-Dividend Date

Dec 31, 2025

Dividend Date

Oct 15, 2025

What dividend income can investors expect from FITB?
Fifth Third Bancorp offers a dividend yield of 3.12%, paying $1.51 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Dec 31, 2025.
How reliable is FITB's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Fifth Third Bancorp pays $1.51 per share in dividends against earnings of $3.33 per share, resulting in a payout ratio of 45.35%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Oct 15, 2025.

Company Size & Market

Market Cap

$31.8B

Revenue (TTM)

$8.13B

Revenue/Share (TTM)

$12.11

Shares Outstanding

661.04M

Book Value/Share

$29.25

Asset Type

Common Stock

What is FITB's market capitalization and position?
Fifth Third Bancorp has a market capitalization of $31.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 661.04M shares outstanding, the company's ownership is relatively concentrated. As a participant in the BANKS - REGIONAL industry, it competes with other firms in this sector.
How does FITB's price compare to its book value?
Fifth Third Bancorp's book value per share is $29.25, while the current stock price is $47.90, resulting in a price-to-book (P/B) ratio of 1.64. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$50.70

5.85% upside potential

Analyst Recommendations

Strong Buy

4

Buy

11

Hold

7

Sell

0

Strong Sell

0

How reliable are analyst predictions for FITB?
22 analysts cover FITB with 68% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $50.70 implies 5.8% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on FITB?
Current analyst recommendations:4 Strong Buy, 11 Buy, 7 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:27 AM

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Fifth Third Bancorp (FITB) Stock Analysis 2025: Regional Bank Investment Guide

The Digital-First Regional

Fifth Third Bancorp defies the narrative that regional banks are dinosaurs awaiting fintech extinction. CEO Tim Spence, a former McKinsey consultant and Fifth Third's chief strategy officer, has accelerated the digital transformation begun under Greg Carmichael. The Momentum Banking checking account—with early direct deposit, no overdraft fees, and savings automation—competes directly with Chime and Cash App while leveraging Fifth Third's branch network for complex needs.

The bank's geographic footprint spans economically diverse markets: Ohio and Michigan manufacturing, Nashville entertainment/healthcare, and Florida population growth. This diversification provides natural hedging against regional downturns. Fifth Third's Southeast expansion (doubled Florida branches since 2019) targets high-growth markets while Midwest relationships generate stable commercial deposits. The 40%+ fee income ratio—among the highest in regional banking—reflects successful diversification beyond interest rate-dependent spread lending.

Business Model & Competitive Position

Fifth Third operates four segments: Commercial Banking (C&I lending, treasury management), Branch Banking (consumer deposits, small business), Consumer Lending (mortgage, auto, personal), and Wealth & Asset Management ($60B+ AUM). The commercial payments business (Newline) provides embedded banking services, while mortgage banking benefits from servicing rights that generate income regardless of origination volume.

Competitive positioning emphasizes relationship banking in markets where Fifth Third has density. The bank cannot match JPMorgan's scale or Goldman's investment banking but can out-serve middle-market companies seeking personalized attention. The Midwest manufacturing base provides commercial lending relationships that digital-only banks cannot replicate. However, Fifth Third faces pressure from both ends: megabanks expanding into regional markets and fintechs capturing consumer deposits with higher yields.

Financial Performance

  • •Net Interest Income: $5.5B annually with NIM of 2.8%+ benefiting from rate environment
  • •Fee Income: $2.8B annually (40%+ of revenue) from wealth, payments, mortgage, and commercial
  • •Efficiency: 55% efficiency ratio targeting improvement to 52% through digital optimization
  • •Credit Quality: 0.40% net charge-offs and 0.50% NPLs; conservative CRE concentration (15% of loans)
  • •Capital: CET1 ratio of 10.5%+ supporting $1B+ annual capital returns (dividends + buybacks)
  • •Valuation: 10x forward P/E and 1.3x tangible book; 4%+ dividend yield

Growth Catalysts

  • •Southeast Expansion: Florida and Carolinas growth through selective branch additions and digital acquisition
  • •Commercial Payments: Newline embedded banking platform growing 20%+ in fintech partnerships
  • •Wealth Management: $60B+ AUM with fee income growing as affluent Boomers seek advice
  • •Digital Efficiency: Branch optimization and digital migration improving efficiency ratio 200-300 bps
  • •Credit Card Partnership: Bread Financial relationship provides card revenue without balance sheet risk

Risks & Challenges

  • •Interest Rate Sensitivity: NIM will compress if Fed cuts rates significantly; asset-sensitive balance sheet
  • •CRE Exposure: 15% of loans in commercial real estate; office portfolio under scrutiny post-COVID
  • •Regional Concentration: Midwest manufacturing weakness could impact commercial lending quality
  • •Deposit Competition: High-yield savings accounts and T-bills pressure consumer deposit costs
  • •Regulatory Capital: Basel III endgame could increase capital requirements 15-20% for regional banks

Competitive Landscape

Fifth Third competes with Midwest regionals (Huntington, KeyBank, Citizens) and expanding nationals (JPMorgan, Bank of America). In commercial banking, the bank targets middle-market companies ($25M-$500M revenue) underserved by bulge bracket and too large for community banks. The Newline payments platform competes with embedded banking providers like Unit, Treasury Prime, and Synctera for fintech partnerships.

Tim Spence's strategy emphasizes differentiation through fee businesses rather than competing on loan pricing or deposit rates. The 40%+ fee income ratio provides earnings stability that pure spread lenders lack. Fifth Third's challenge is maintaining relevance as digital banking reduces geographic friction—younger consumers may choose Chime over Fifth Third regardless of branch proximity. The Momentum Banking product attempts to address this through competitive digital features.

Who Is This Stock Suitable For?

Perfect For

  • ✓Income investors seeking 4%+ dividend yield with 40% payout ratio
  • ✓Value investors buying quality regional at 10x P/E and 1.3x tangible book
  • ✓Defensive positioning within financials with better-than-peer credit quality
  • ✓Midwest/Southeast economic exposure through diversified banking franchise

Less Suitable For

  • ✗Growth investors (mid-single-digit earnings growth ceiling)
  • ✗Rate cut beneficiaries (asset-sensitive balance sheet hurts in falling rate environment)
  • ✗Risk-averse investors concerned about regional bank headline risk post-SVB
  • ✗ESG-focused investors (fossil fuel lending in commercial portfolio)

Investment Thesis

Fifth Third offers a compelling combination of income, value, and quality within regional banking. The 4%+ dividend yield and 10x forward P/E provide margin of safety, while 40%+ fee income insulates earnings from interest rate volatility. Tim Spence's digital-first strategy positions Fifth Third better than peers for the future of consumer banking, even as the bank maintains conservative credit standards.

The investment case depends on believing regional banks remain relevant despite megabank competition and fintech disruption. Fifth Third's fee diversification, Southeast expansion, and commercial payments growth suggest management is adapting successfully. The stock suits income-oriented investors seeking bank exposure with above-average yield and below-average credit risk. Risks include rate sensitivity, CRE concentration, and the ever-present possibility of regional bank crisis headlines impacting all names in the sector.

Conclusion

Fifth Third is a BUY for income investors seeking quality regional bank exposure. The 4%+ yield, 40% payout ratio, and fee income diversification provide stability, while 10x P/E offers value relative to earnings power. Tim Spence's execution on digital and Southeast expansion will determine whether Fifth Third outperforms peers. Best suited for dividend-focused portfolios accepting moderate growth for above-average income.
Bull Case
$52 (20% upside) - Fee growth accelerates, rate environment stable, multiple to 12x
Base Case
$46 (6% upside) - Steady execution, modest growth, 10.5x multiple maintained
Bear Case
$34 (21% downside) - Rate cuts compress NIM, CRE losses emerge, 8x multiple

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