FITB Stock Dips on Lower 2026 Fee Income Outlook, Raises Synergy Target

Shares of Fifth Third Bancorp FITB lost nearly 3.3% as the company trimmed its 2026 non-interest income outlook. At the RBC Capital Markets Global Financial Institutions Conference 2026, Fifth Third updated a few of its full-year 2026 guidance and provided first-quarter 2026 guidance. Along with this, the bank also discussed about the Comerica integration progress.

The company narrowed its non-interest income guidance to $4.0 billion to $4.2 billion from the previous range of $4.0 billion to $4.4 billion. The bank slightly lowered its non-interest expense outlook to $7.2 billion to $7.3 billion from the earlier estimate of $7.2 billion to $7.5 billion. However, Fifth Third reiterated its expectation for average loans and leases in the mid-$170 billion range and net interest income (NII) expectation of $8.6 billion to $8.8 billion for 2026. Net charge-offs are also expected to remain within 30–40 basis points. Management noted that these updated ranges largely reflect minor adjustments to align accounting conventions between Comerica and Fifth Third.

Fifth Third also provided the first quarter of 2026 outlook. It expects average loans and leases of $158 billion to $159 billion, representing a sequential increase from $124.1 billion. The company’s NII is projected to be around $1.93 billion, up from $1.53 billion sequentially, while non-interest income is expected to be between $0.90 billion and $0.93 billion compared with $0.81 billion in the prior quarter. Non-interest expenses are anticipated to be between $1.76 billion and $1.78 billion compared with $1.27 billion reported in the fourth quarter of 2025.

Further, FITB provided an update regarding Comerica integration progress. The company noted that Comerica integration is expected to generate meaningful cost efficiencies. Management now expects at least $400 million in expense savings in 2026, exceeding the earlier estimate of $320 million. Roughly half of these savings will be reinvested in growth initiatives such as marketing and technology investments. Over the longer term, FITB expects to achieve approximately $850 million in annual run-rate cost savings.

Regarding capital distribution, the bank noted that it has paused share repurchases following the Comerica acquisition as it focuses on strengthening capital levels and completing the integration. However, once integration costs decline and efficiency benefits materialize, the bank expects to resume share repurchases, potentially reaching $300 million to $500 million per quarter.

FITB's Peers 2026 Outlook

Fifth Third’s peers, PNC Financial PNC and M&T Bank MTB, are also set for 2026 growth, with PNC Financial driving higher loans while M&T Bank showing steady income gains with disciplined expense control.

PNC Financial’s NII is anticipated to rise about 14% year over year in 2026, from $14 billion in 2025. Non-interest income is expected to increase by about 6% from $8.7 billion. On the expense side, adjusted non-interest expenses (excluding one-time integration costs) are projected to rise nearly 7% from $13.8 billion, as PNC Financial continues to invest in technology, strategic initiatives, and operational efficiency programs.

M&T Bank expects stable growth and solid profitability in 2026. Net interest income is projected to be in the range of $7.20–$7.35 billion, up from $6.99 billion in 2025, while non-interest income is expected to be between $2.67 and $2.77 billion, slightly above $2.74 billion last year. The company’s GAAP expenses, including intangible amortization, are expected to be in the range of $5.5–$5.6 billion, slightly above the $5.4 billion recorded in 2025. Average loans and leases are also projected to reach $140–$142 billion compared with $136.6 billion in 2025.

FITB’s Price Performance & Zacks Rank

Shares of Fifth Third have gained 20.3% in the past year compared with the industry’s growth of 28.1%.

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FITB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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