Fifth Third Bancorp Beats Q2 Estimates with 6.3% Revenue Growth

Fifth Third Bancorp reported Q2 2025 results with EPS at $0.88, beating estimates, and revenue of $2,251 million, up 6.3% YoY. Net interest income rose 7.7% from the prior year. The bank's loan portfolio expanded 5% to $123.1 billion, while average deposits were $163.6 billion, flat from Q1 and down 2% YoY. Fifth Third's efficiency ratio improved to 55.5%, a 1.3 pp decrease from Q2 2024.

Fifth Third Bancorp reported a robust second quarter for 2025, with earnings per share (EPS) of $0.88, surpassing Wall Street’s expectations by 1.15%. The company also exceeded revenue projections, reporting $2.25 billion, up 6.3% year-over-year (YoY) from the expected $2.22 billion [1]. Despite this positive performance, the company’s stock experienced a minor decline of 0.98% in pre-market trading, settling at $43.

The bank’s net interest income (NII) rose 7.7% from the prior year, while the loan portfolio expanded 5% to $123.1 billion. Average deposits were $163.6 billion, flat from Q1 and down 2% YoY. The efficiency ratio improved to 55.5%, a 1.3 percentage point decrease from Q2 2024, indicating enhanced operational efficiency.

Fifth Third Bancorp’s Q2 2025 results surpassed analyst expectations, with an EPS surprise of 1.15% and a revenue surprise of 1.35%. This positive deviation from forecasts highlights the company’s effective operational strategies and market positioning.

The bank’s stock price fell by 0.98% in pre-market trading, placing it closer to its 52-week low of $32.25. This movement could indicate investor caution or broader market influences affecting financial stocks. InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value model, while trading at a P/E ratio of 13.5x.

Looking forward, Fifth Third Bancorp remains optimistic about its growth trajectory. The company anticipates a full-year NII increase of 5.5% to 6.5% and expects to resume share repurchases in Q3, projecting $400-500 million in stock repurchases for the rest of 2025. Additionally, the company plans to continue its branch expansion in the Southeast, aiming for nearly 400 branches across the region.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-fifth-third-bancorp-beats-q2-2025-earnings-expectations-93CH-4140104