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Fifth Third Bancorp Q1 Net Income Drops to $128 Million

Fifth Third Bancorp reported first-quarter 2026 net income available to common shareholders of $128 million, or $0.15 a share, down from $699 million, or $1.04 a share, in the fourth quarter and $478 million, or $0.71 a share, a year earlier.

The quarter included two months of Comerica results after Fifth Third closed the acquisition on Feb. 1 in a deal valued at about $12.7 billion. The combination lifted average portfolio loans and leases to $157.6 billion from $123.4 billion in the prior quarter and $121.3 billion a year earlier. Period-end portfolio loans and leases rose to $176.3 billion from $122.7 billion in the fourth quarter and $122.2 billion a year earlier.

Average deposits climbed to $209.4 billion from $168.4 billion in the fourth quarter and $164.2 billion a year earlier. Period-end deposits were not included in the release excerpt, but Fifth Third said demand deposits increased from 25% of total deposits to 28%.

Net interest income on a taxable-equivalent basis increased to $1.939 billion from $1.533 billion in the fourth quarter and $1.442 billion a year earlier, up 26% sequentially and 34% year over year. Net interest margin widened to 3.30% from 3.13% in the prior quarter and 3.03% in the year-ago quarter.

Noninterest income rose to $895 million from $811 million in the fourth quarter and $694 million a year earlier. Excluding certain items, noninterest income was $921 million, up from $812 million sequentially and $721 million a year earlier.

Noninterest expense jumped to $2.395 billion from $1.309 billion in the fourth quarter and $1.304 billion a year earlier. Excluding certain items, expense was $1.760 billion, compared with $1.268 billion in the prior quarter and $1.304 billion a year earlier.

Credit metrics improved. Net charge-offs were 0.37% of average loans, down from 0.40% in the fourth quarter and 0.46% a year earlier. Nonperforming assets were 0.57% of loans and leases, down from 0.65% and 0.81%.

Capital also moved higher on the quarter. Tangible common equity rose to 7.3%, up 11 basis points. Tangible book value per share increased to $22.88 from $22.60 in the fourth quarter and $19.92 a year earlier, a 15% increase year over year.

On the revenue side, wealth and asset management revenue increased to $233 million from $185 million in the fourth quarter and $172 million a year earlier. Commercial payments revenue rose to $218 million from $167 million and $153 million. Capital markets fees climbed to $134 million from $121 million and $90 million. Mortgage banking net revenue fell to $44 million from $56 million in the fourth quarter and $57 million a year earlier.

Average commercial loans and leases increased to $105.9 billion from $74.6 billion in the fourth quarter and $74.7 billion a year earlier. Average consumer loans rose to $51.8 billion from $48.8 billion and $46.6 billion. End-of-period commercial loans and leases reached $122.9 billion, up from $73.6 billion and $75.1 billion, while end-of-period consumer loans climbed to $53.4 billion from $49.1 billion and $47.1 billion.

Fifth Third said merger-related charges increased noninterest expense by $635 million and reduced noninterest income by $22 million in the quarter. The market has reacted to these announcements by moving the company's shares -0.87% to a price of $45.41. If you want to know more, read the company's complete 8-K report here.

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