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Fifth Third Bancorp Posts Weaker-Than-Expected Quarterly Profit; Regions Financial Misses Revenue Views

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Fifth Third Bancorp Posts Weaker-Than-Expected Quarterly Profit; Regions Financial Misses Revenue Views

Fifth Third Bancorp's (FITB) on Friday reported a steeper-than-expected drop in second-quarter profit year over year, while Regions Financial's (RF) revenue fell short of Wall Street's estimates.

Fifth Third's per-share earnings for the June quarter declined to $0.83 from $0.88 a year earlier, weaker than the FactSet-polled consensus of $0.84. The quarter included a negative impact of $0.19 a share on the bottom line related to the company's acquisition of regional lender Comerica. Fifth Third said pre-tax merger-related charges boosted noninterest expense by $203 million.

"The Comerica integration remains on track," Chief Executive Tim Spence said in a statement. "Systems conversion is scheduled for Labor Day weekend (in September) and is the final step to unlocking the full run-rate of our expected cost synergies."

Fifth Third's revenue for the quarter rose to $3.28 billion from $2.25 billion a year earlier, surpassing the Street's $3.24 billion estimate.

Net interest income grew 48% year over year to $2.22 billion, boosted by the acquisition of Comerica. Noninterest income surged 41% to $1.06 billion.

For this year, Fifth Third now anticipates net interest income to come in between $8.74 billion and $8.8 billion, according to an earnings presentation, with the bottom end adjusted higher from previous outlook of $8.7 billion issued in April. For the ongoing quarter, it expects the metric to be up 2% to 2.5%

Separately, Regions Financial (RF) posted second-quarter adjusted EPS of $0.68, compared with $0.60 a year earlier and the FactSet-polled consensus of $0.63. Revenue held steady at $1.91 billion, falling short of the $1.94 billion expected by analysts.

"Overall, we're pleased with our performance for the second quarter, reflecting disciplined execution across the franchise and the benefits of investments we've made to position the company to deliver sound and profitable growth," CEO John Turner said during an earnings call, according to a FactSet transcript. "As we look across our footprint, we remain encouraged by the overall operating environment and economic activity is solid and despite ongoing uncertainty."

Net interest income rose 1.4% year over year to $1.28 billion, and was up 2.3% from the prior three-month period. Noninterest income fell 2.5% to $630 million.

For 2026, Regions Financial continues to anticipate net interest income growth of 2.5% to 4%, its earnings presentation showed.

Shares of Fifth Third were down 2.4% intraday Friday, while Regions Financial fell 0.5%.

Price: $57.53, Change: $-1.85, Percent Change: -3.11%

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