Fifth Third Bancorp (NASDAQ:FITB) reported fourth-quarter results on Tuesday that came in ahead of analyst expectations, with profit attributable to common shareholders climbing 20% year on year to $699 million, or $1.04 per diluted share.
Shares of the regional lender rose 1.71% in pre-market trading following the announcement.
The stronger performance was supported by improving credit conditions and sustained business momentum, despite a net negative impact of $0.04 per share from specific items. Quarterly revenue totaled $2.34 billion, in line with market forecasts, while net interest income increased 6% year on year to $1.53 billion.
“Fifth Third delivered strong operating results in the fourth quarter and for the full year,” said Tim Spence, chairman, chief executive officer and president. “In 2025, we produced record NII, generated profitable relationship growth and diligently managed our expenses, generating 230 bps of positive operating leverage.”
Credit quality continued to improve, with net charge-offs declining to 40 basis points from 46 basis points a year earlier. Commercial net charge-offs stood at 27 basis points. Capital strength also improved, with the CET1 ratio rising by 20 basis points to 10.77%.
Loan balances grew 5% compared with the fourth quarter of 2024, led by 7% growth in middle-market lending. Consumer household growth reached 2.5%, including a 7% increase in the bank’s Southeast markets. Assets under management climbed 16% year on year to $80 billion.
Deposits also expanded, with demand deposits up 4% year on year and the loan-to-core deposit ratio holding at a conservative 72%. Tangible book value per share increased 21% from the prior year.
Fifth Third said it has secured both shareholder and regulatory approvals for its planned acquisition of Comerica and expects the transaction to close on February 1, 2026.