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- **$290B Category III Bank Creation**: Merger with Comerica to close Q1 2026, targeting 19%+ ROTCE.
- **Strong Q3 Performance**: 7% NII growth, 11% PPNR growth, 54.1% efficiency ratio.
- **Expansion Momentum**: 13 new Southeast branches (7% household growth), 60 Texas branches planned.
- **Fraud Impact**: $200M provision for Tricolor, no contagion risk in NDFI portfolio.
- **Deposit Strength**: 1.93% cost in Southeast, 25M/A branch deposits vs. 12M/A industry.
- **Credit Resilience**: 52bps NCOs (ex-Triple), 65bps NPA ratio, stable consumer delinquencies.

**【CEO Summary Section】**
- Announced merger with Comerica, expected to close by Q1 2026, creating a $290B Category III bank. 
- Q3 EPS of $0.93 (excluding fraud), with $200M provision for Tricolor fraud.
- 6% YoY loan growth, 3% deposit growth, 11% PPNR growth.
- Efficiency ratio 54.1%, ROA 1.25%, ROTCE 17.7%.
- Southeast expansion: 13 new branches, 7% household growth vs. 1.5% market.
- Texas expansion: 60 new branches, targeting 17 fast-growing metros.
- Middle market loans +6%, wealth AUM $77B, +11% fees.
- Newline payments deposits $3.9B, +31% YoY.

**【CFO Financial Commentary】**
- Q3 NII +7% YoY, +2% QoQ, driven by repricing and loan growth.
- Fee income +5% YoY, +7% QoQ, led by wealth (+11%), capital markets (+28%).
- Pre-provision net revenue +11% YoY, 330bps operating leverage.
- Deposit beta 60% on first 100bps rate cuts, targeting 30-50% beta in 2026.
- 2026 outlook: NII stable to +1%, PPNR +7-8%, CET1 10.5%.
- Share buybacks paused until merger close.

**【Q&A Highlights】**
- **Comerica Integration**: 
  - 60%+ cost synergies from 2026E, 19%+ ROTCE target.
  - Texas branches to leverage Fifth Third's payments platform.
  - Direct Express program to simplify for 3.4M participants.
- **Credit Quality**: 
  - NCOs 52bps (ex-Triple), guiding to 40bps in Q4.
  - NPA ratio 65bps, down 30% YoY.
  - Consumer delinquencies at pre-COVID levels.
- **Deposit Strategy**: 
  - 1.93% cost in Southeast vs. 2.35% industry average.
  - 25M/A branch deposits in Southeast vs. 12M/A industry.
- **Regulatory Update**: 
  - S-4 filing expected soon, targeting Q1 2026 close.
  - OCC accelerating charter approvals supports timeline.


Fifth Third Bancorp (FITB) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FITB

FITB fundamentals

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