Fifth Third Bancorp Sees Early Benefits from Comerica Merger

Fifth Third Bancorp, a leading bank based in Cincinnati, Ohio, has reported strong second-quarter 2026 earnings that management says show early benefits from its merger with Comerica. The bank’s Chairman, CEO, and President, Tim Spence, pointed to stronger profitability, deposit growth in newer markets, and progress toward planned cost savings as key highlights from the quarter.

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In terms of profitability, Fifth Third’s adjusted return on tangible common equity improved to 19%, while its adjusted return on assets rose to 1.3%. The bank’s efficiency ratio also improved to 57%, despite the fact that most of the expected expense synergies from the Comerica deal have not yet been captured.

Deposit growth was a standout in the quarter, led by consumer and small-business accounts, including strong gains in Southeast and Comerica markets like Texas, Arizona, and California. Deposit costs also declined, helping to support margins.

The bank’s CFO, Bryan Preston, attributed three basis points of the margin expansion to the additional month of Comerica results, with the remainder coming from fixed-rate asset repricing, loan growth, and deposit performance.

Adjusted non-interest income came in at $1.04 billion, excluding security gains and other items. Management highlighted strength across wealth and asset management, commercial payments, and capital markets.

Wealth and asset management revenue was $256 million, with total assets under management of $128 billion. Commercial payments revenue was $254 million, led by NewLine and core treasury services. NewLine fee revenue increased 35% year-over-year.

Capital markets fees were $154 million, an annualized pace of about $600 million. Spence said commercial payments and wealth and asset management each reached a more than $1 billion annualized fee run rate during the quarter.

Fifth Third raised its full-year net interest income guidance to a range of $8.74 billion to $8.8 billion. Preston said the outlook reflects the forward curve at the end of June, which assumed a 25-basis-point rate hike in September, as well as securities repositioning and new forward-starting received fixed swaps.

The company refined its average loan guidance to $174 billion to $176 billion, noting that the full-year average will include only 11 months of Comerica. Fifth Third also raised and narrowed full-year non-interest income guidance to $4.06 billion to $4.16 billion and lowered and narrowed full-year non-interest expense guidance to $7.22 billion to $7.26 billion, excluding acquisition-related charges.

For the third quarter, Fifth Third expects net interest income to grow 2% to 2.5% from the second quarter, average loans to rise about 1%, and credit trends to continue to improve.