Fifth Third: Strong NIM And Higher Reserves Drive A Mixed Q3

Summary

• Fifth Third Bancorp has gained over 75% in the past year but saw a 2% drop after mixed Q3 results.
• Despite stable deposits and improved net interest income, credit trends were slightly disappointing, with increased provisions for credit losses.
• FITB's capital position remains strong, with a CET1 ratio of 10.75% and ongoing share repurchases and dividends provide solid capital return yields.
• I maintain a "hold" rating on FITB, preferring other regional banks with less multiple expansion and want to see faster deposit growth before rating shares a buy.

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Shares of Fifth Third Bancorp (NASDAQ:FITB) have been a strong performer over the past year, gaining over 75% as the bank has weathered the 2023 regional banking crisis well. Given how strong the run has been, it is not too surprising

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.