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The call presented strong growth and integration progress with multiple tangible metrics improving (revenue +33%, adjusted net income +38%, NII and NIM expansion, TBV growth, early revenue synergies and deposit wins), while also acknowledging expected near-term merger-related costs, execution risk tied to the systems conversion, and elevated expense and capital management work to realize full benefits. Overall the narrative emphasized disciplined execution, improving returns, and confidence in achieving $850 million run-rate synergies, offsetting the short-term drag from acquisition charges and integration risk.
Fifth Third updated 2026 guidance calling for full‑year net interest income of $8.7–8.8 billion, average total loans in the mid‑$170 billion range, full‑year noninterest income of $4.0–4.2 billion and full‑year noninterest expense of $7.2–7.3 billion (including $210 million of CDI amortization and $360 million of net expense synergies), which together imply adjusted PPNR up roughly 40% versus 2025; they expect full‑year net charge‑offs of 30–40 bps, an operating CET1 target of 10.0–10.5%, resumption of regular quarterly buybacks in H2 2026 (timing/amount dependent on balance sheet and remaining merger charges), and to realize $360 million of net cost savings in 2026 rising to an $850 million annual run‑rate by Q4. For Q2 they forecast average loans of $178–179 billion, NII of $2.20–2.25 billion with NIM expanding 3–5 bps (from 330 bps in Q1 toward an exit nearer ~340 bps), noninterest income of $1.00–1.06 billion, noninterest expense of $1.87–1.89 billion, and net charge‑offs of 30–35 bps.
Adjusted noninterest income of $921 million; wealth fees $233 million with AUM $119 billion (up $10 billion or 15% YoY); commercial payments fees $218 million with Newline revenue up 30% YoY and related deposits $5.5 billion (up $2.7 billion YoY); Direct Express contributed ~$14 million in fees and ~$3.7 billion in March average deposits.
Net charge-offs at 37 basis points (lowest in 2 years); commercial NCOs 26 bps (2-year low); NPA ratio improved to 57 bps from 65 bps last quarter; ACL as % of loans 1.79% (ACL as % of NPAs 316%).
Legacy Fifth Third: 3% household growth and 4% DDA balance growth; legacy Fifth Third commercial C&I loan balances grew 6% YoY; #1 HELOC origination market share in legacy footprint; early Comerica marketing in Texas produced strong response and a 6 million household campaign expected to generate ~$1 billion in deposits (included in guide).
Maintained Category 1 LCR compliance at 109%; loan-to-core deposit ratio 76%; average wholesale funding declined 3% YoY despite larger balance sheet; total deposit costs 158 bps and interest-bearing deposit costs 215 bps (down 27 bps YoY).
Revenue of $2.9 billion, up 33% year-over-year; adjusted net income of $734 million, up 38% year-over-year.
Net interest income of $1.94 billion; net interest margin expanded 17 basis points to 330 basis points in Q1; guidance updated to full-year NII of $8.7–$8.8 billion and expectation that NIM will expand another 3–5 bps in Q2 and approach ~340 bps by year-end.
Comerica acquisition closed February 1 (largest in company history) and closed without tangible book value dilution; integration on schedule with system conversion planned for Labor Day; targeting $360 million of net cost savings in 2026 and an $850 million annual run rate by Q4.
Tangible common equity ratio rose to 7.3%; tangible book value per share grew 1% sequentially and 15% year-over-year; CET1 ended at 10% (estimated fully phased-in pro forma under proposed rule ~9.6%).
End-of-period loans $178 billion (up 2% sequentially from pro forma combined YE); average total loans $158 billion (reflecting Feb 1 close); end-of-period core deposits $231 billion; noninterest-bearing deposits made up 28% of core deposits (vs. 25% a year ago).
Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the First Quarter 2026 Fifth Third Bancorp Earnings Conference Call. Today's conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to [ Matt Curoe ], Director of Investor Relations. Please go ahead.
Good morning, everyone. Welcome to Fifth Third's First Quarter 2026 Earnings Call. This morning, our Chairman, CEO and President, Tim Spence; and CFO, Bryan Preston will provide an overview of our first quarter results and outlook. Please review the cautionary statements in our materials, which can be found in our earnings release and presentation. These materials contain information regarding the use of non-GAAP measures and reconciliations to the GAAP results as well as forward-looking statements about Fifth Third's performance. These statements speak only as of April 17, 2026, and Fifth Third undertakes no obligation to update them. Following prepared remarks by Tim and Bryan, we will open up the call for questions. With that, let me turn it over to Tim.
Good morning, everyone, and thanks for joining us today. At Fifth Third, we believe great bank distinguish themselves based on how they perform in uncertain environments, not in benign ones. We prioritize stability, profitability and growth in that order. We deliver them by finding ways to get 1% better every day while investing meaningfully in the future. Today, we reported earnings per share of $0.15 or $0.83 excluding certain items outlined on ...