Fifth Third Bancorp reported third quarter 2026 net income available to common shareholders of $828 million, or $0.90 per diluted share, up from $763 million, or $0.83 per diluted share, in the prior quarter. The bank’s adjusted earnings per share was $1.13, a figure that excludes $0.23 in after-tax charges related to merger activities, interchange litigation, and technology asset impairments. This performance follows the recent integration of Comerica, with the company noting that systems conversion was completed with strong client and banker retention.
Tim Spence, Chairman, CEO and President of Fifth Third, stated that the quarter reflected the earnings power of the combined company. He noted that adjusted return on tangible common equity and the efficiency ratio improved from the second quarter while credit performance remained stable. Spence highlighted that less than a year after the Comerica acquisition was announced, the business is growing, with deposit share gains in the Southeast and new share gains in Michigan, Texas, and California markets.
Net interest income on a fully taxable-equivalent basis increased 3% sequentially to $2.28 billion. This growth was driven by higher market rates, fixed-rate asset repricing, and loan growth, partially offset by higher deposit costs as former Comerica investment sweep balances migrated into interest-bearing deposits. Compared to the same quarter last year, net interest income rose 49%, primarily reflecting the addition of Comerica.
Noninterest income of $1.01 billion decreased 5% sequentially but increased 29% year-over-year. Wealth and asset management revenue rose 43%, while commercial payments revenue increased 63%. Mortgage banking net revenue jumped 21%. These increases were partially offset by a decline in other noninterest income and net securities losses.
Credit quality remained resilient with net charge-offs at 0.31% of average loans for the third quarter, compared to 0.30% in the second quarter and 1.09% in the year-ago quarter. Core deposits increased 3% sequentially, keeping the loan-to-core deposit ratio at 76%. The bank reported a Common Equity Tier 1 capital ratio of 10.02%.
The company noted that it generated 70% more commercial new quality relationships compared to the third quarter of last year. Consumer household growth reached 7% in the Southeast and 8% in the Southwest. Deposit share gains were reported in Texas and California, with capped deposits in Dallas, Houston, and Austin each up more than 20% year-over-year.