Fifth Third Bancorp FITB is scheduled to report second-quarter 2026 results on July 17, before the opening bell. Quarterly earnings and revenues are expected to have registered year-over-year growth in the to-be-reported quarter.
In the last reported quarter, the bank’s earnings missed the Zacks Consensus Estimate. Its results were affected by an increase in expenses and higher provisions for credit losses. Nonetheless, growth in net interest income (NII) and fee income acted as tailwinds. Higher loan and deposit balances also provided some support.
This Cincinnati, OH-based lender has an impressive earnings surprise history. Its earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 4%.
Fifth Third Bancorp Price and EPS Surprise
Fifth Third Bancorp price-eps-surprise | Fifth Third Bancorp Quote
Factors Likely to Impact FITB’s Q2 Performance
Loans & NII: Per the Federal Reserve’s latest data, demand for commercial and industrial and consumer loans was decent in the second quarter of 2026, while real estate loan demand was relatively modest. Hence, a stable rate environment and decent loan demand are expected to have supported the company’s lending activity and growth in average interest-earning assets in the to-be-reported quarter.
The Zacks Consensus Estimate for average interest-earning assets of $266.2 billion for the second quarter indicates an 11.9% rise from the prior quarter’s actual.
Management expects average loans and leases (including held-for-sale loans) to be between $178 billion and $179 billion in the second quarter, up from $158.3 billion in the prior quarter.
In the second quarter of 2026, the Fed kept interest rates unchanged at 3.50-3.75%. The Fed further noted that economic activity continued to expand at a solid pace despite elevated uncertainty, while inflation remained above its 2% target. Against this backdrop, the company’s NII is expected to have improved in the to-be-reported quarter.
Fifth Third expects NII to be between $2.20 billion and $2.25 billion, up from $1.94 billion in the prior quarter.
The Zacks Consensus Estimate for the metric is in line with the company’s guidance.
Non-Interest Revenues: Global mergers and acquisitions (M&A) activity moderated in the second quarter of 2026 as geopolitical uncertainty, elevated inflation, a persistent backlog of private equity exits and higher interest rates continued to weigh on deal-making. Nevertheless, M&A volumes improved year over year, although deal values declined. The increase in deal volumes is likely to have supported advisory activity, benefiting FITB’s commercial banking revenues in the to-be-reported quarter.
Nevertheless, higher M&A deal volumes are likely to have supported advisory and capital markets fees, benefiting the company’s commercial banking revenues.
The Zacks Consensus Estimate for commercial banking revenues is pegged at $119.2 million, indicating a 13.5% sequential rise.
Mortgage activity remained challenging in the second quarter of 2026, with mortgage rates hovering around the mid-6.5% range and affordability remaining strained. While purchase activity continued to face pressure from inventory constraints, refinancing activity improved modestly. As such, FITB’s mortgage banking income is likely to have improved in the to-be-reported quarter.
The Zacks Consensus Estimate for mortgage banking income is pegged at $50.5 million, indicating a 14.8% increase from the prior quarter’s reported figure.
The Zacks Consensus Estimate for wealth and asset management revenues is pegged at $260.8 million, indicating an 11.9% increase from the prior quarter’s actual level.
Management expects non-interest income to be between $1 billion and $1.06 billion in the second quarter, up from $895 million in the prior quarter.
The Zacks Consensus Estimate for non-interest income is pegged at $1 billion, which indicates a 15.2% sequential rise.
Expenses: FITB’s expenses are expected to have remained elevated in the second quarter of 2026 due to continued investments in technology and initiatives aimed at enhancing customer experience. Also, ongoing growth initiatives are likely to have kept the company’s cost base elevated during the quarter.
Management projects non-interest expenses to be between $1.87 billion and $1.89 billion in the second quarter of 2026, compared with $1.77 billion in the prior quarter.
Asset Quality: Despite persistent inflation and geopolitical uncertainty stemming from the Middle East conflict, the stable interest-rate environment and resilient economic activity are expected to have supported Fifth Third’s asset quality in the second quarter of 2026. As such, the company is less likely to have maintained elevated reserves during the quarter.
The Zacks Consensus Estimate for non-performing assets is pegged at $1 billion, representing an 11.1% decline from the prior quarter’s reported figure.
What the Zacks Model Reveals for FITB
Our proven model does not conclusively predict an earnings beat for Fifth Third this time around. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
FITB’s Earnings ESP: The Earnings ESP for Fifth Third is -0.61%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank of Fifth Third: The company currently carries a Zacks Rank of 3.
The Zacks Consensus Estimate for FITB’s second-quarter earnings has remained unchanged at 98 cents per share over the past seven days. The figure indicates an increase of nearly 8.9% from the year-ago quarter.
The consensus estimate for second-quarter revenues is pegged at $3.25 billion, suggesting a rise of 44.8% from the year-ago reported figure.
Stocks That Warrant a Look
Here are some bank stocks that you may want to consider, as our model shows that these have the right combination of elements to post earnings beats this time around.
The Earnings ESP for Webster Financial Corporation WBS is +3.46% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is slated to report second-quarter 2026 results on July 21. Over the past seven days, the Zacks Consensus Estimate for WBS’ quarterly earnings has remained unchanged at $1.61 per share.
Northern Trust Corporation NTRS is scheduled to announce quarterly numbers on July 22. The company has an Earnings ESP of +0.50% and carries a Zacks Rank #2 at present.
Quarterly earnings estimates for NTRS have been revised upward to $2.68 per share over the past week.
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Fifth Third Bancorp (FITB) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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