Fifth Third's third-quarter profit climbs to $828 million as Comerica deal swells lending income

Fifth Third Bancorp's bigger footprint is showing up in its profits. With the Comerica systems conversion now complete, net income available to common shareholders rose to $828 million in the third quarter, the bank said Monday.

That worked out to $0.90 per diluted share, up from $0.83 in the second quarter but just under $0.91 a year earlier, according to its earnings release filed with an 8-K. Stripping out $0.23 a share of items, led by merger-related charges, adjusted earnings came to $1.13 a share.

The adjustments totaled $211 million after tax. Merger-related charges accounted for $171 million, interchange litigation matters for $26 million and technology-related asset impairments for $14 million, the release shows.

Comerica shows up in the income line

Net interest income on a fully taxable-equivalent basis climbed 3% from the prior quarter to $2.28 billion and was up 49% from a year earlier, which the bank said primarily reflected the addition of Comerica. Net interest margin slipped to 3.34% from 3.36% in the second quarter. The bank said higher deposit costs partly offset the benefit of higher market rates and fixed-rate asset repricing.

Average portfolio loans and leases reached $179.2 billion, up 45% from a year earlier. Fee income was softer, with noninterest income down 5% sequentially to $1.01 billion. Noninterest expense fell 3% to $2.05 billion, driven primarily by lower compensation and benefits, though it still included $215 million of pre-tax merger charges.

"Less than a year after we announced the Comerica acquisition, we completed the systems conversion with strong client and banker retention," Chairman, CEO and President Tim Spence said in the release. "We are building a Fifth Third that is better and not just bigger."

Credit and capital

Net charge-offs were $139 million, or 0.31% of average portfolio loans, compared with 0.30% in the second quarter. The year-ago ratio of 1.09% included a $178 million asset-backed finance charge-off, the bank said. The provision for credit losses eased to $122 million, and the allowance stood at 1.74% of loans.

The common equity tier 1 capital ratio rose to 10.02% from 9.93%. Fifth Third said it did not repurchase any common shares during the quarter or so far this year.

By the numbers

• Net income to common: $828 million, vs. $608 million a year ago
• Diluted EPS: $0.90 reported, $1.13 adjusted
• Net interest income (FTE): $2.28 billion, up 49% year over year
• Net interest margin: 3.34%
• Net charge-off ratio: 0.31%
• CET1 ratio: 10.02%

Sources

1. Fifth Third Bancorp, Form 8-K with Exhibit 99.1 earnings release for the third quarter of 2026, filed Oct. 19, 2026, accession 0000035527-26-000229

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