Fifth Third Bancorp Reports Mixed Q1 2025 Results Amid Market Underperformance

Cincinnati, Ohio-based Fifth Third Bancorp (FITB) serves as a bank holding company offering a variety of financial products and services. The company is valued at $24.5 billion by market capitalization and operates in three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management.

Stock Performance Analysis

Recently, shares of FITB have notably underperformed compared to the broader market. Over the last 52 weeks, FITB shares have decreased by 3.2%, while the S&P 500 Index ($SPX) has risen by 9.2%. Year-to-date, FITB has fallen by 11.9%, contrasting with SPX’s decrease of 3.7% during the same period.

Industry Comparison

When examining FITB’s performance more closely, the company has also struggled relative to the iShares U.S. Regional Banks ETF (IAT), which achieved a 7.1% gain over the past year, even with a 9% decline year-to-date.

Q1 2025 Financial Results

FITB’s stock saw a slight decline following the release of its mixed Q1 2025 results on April 17. Net interest income, adjusted for taxable equivalents (FTE), increased by 3.7% year-over-year to reach $1.4 billion, supported by effective deposit strategies and reduced costs of interest-bearing liabilities. However, total noninterest income fell by 2.3% to $694 million. Earnings per share (EPS) rose 1.4% from the previous year to $0.71. Furthermore, total consumer loans grew by 4.6% to $46.6 billion, driven largely by gains in indirect secured consumer loans, residential mortgages, and solar energy loans.

Future Outlook

For the current fiscal year ending in December 2025, analysts project FITB’s EPS will increase nearly 4.8% year-over-year to $3.53. Additionally, the company has a track record of beating earnings expectations, having exceeded consensus estimates in the last four quarters.

Analyst Ratings

Currently, 22 analysts are following FITB, with a consensus rating of “Moderate Buy.” This breaks down to 11 “Strong Buy” ratings, one “Moderate Buy,” and 10 “Holds.” Compared to three months ago, this outlook is slightly more favorable with a previous count of 10 “Strong Buy” ratings.

Price Targets

On April 21, DA Davidson analyst Peter Winter adjusted his price target for FITB to $42 while keeping a “Neutral” rating. Currently, the average price target for Fifth Third Bancorp stands at $43.56, suggesting a 16.9% upside from current levels. Moreover, the highest target of $51 indicates a potential upside of 36.9%.

On the date of publication, Aditya Sarawgi did not hold positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.