A regional bank serving the Midwest and Southeast, Fifth Third Bancorp offers commercial loans, mortgages, credit cards, wealth management, and payments through branches, online, and mobile channels. Its odd name comes from a 1908 merger of two Cincinnati banks, the Fifth National and the Third National, which joined on their third attempt. Many locals assume the digits nod to Cincinnati's 513 area code, though the name actually predates it.
Fifth Third's Q2 2026 net income rose 28% to $801M as the Comerica acquisition drove revenue up 46%, but merger costs and a lower capital ratio define the new combined bank.
The Comerica acquisition reshaped Fifth Third's balance sheet, and Q2 2026 was the first full quarter with the combined operations. rose 46% to $3.3 billion and climbed 28% to $801 million, driven by a 48% increase in from $73 billion in acquired earning assets, while $193 million in merger costs weighed on the bottom line. The bank is larger and more profitable, but the fell to 9.93% as it moves toward Category III regulatory status.
Key takeaways
on a fully taxable-equivalent basis rose 48% to $2.2 billion, driven by the addition of $73.0 billion in interest-earning assets from the Comerica acquisition and lower funding costs.
Noninterest income grew 41% to $1.1 billion, with increases in commercial payments, wealth and asset management, and capital markets fees, all reflecting the integration of Comerica's operations.
Noninterest expense rose 67% to $2.1 billion, including $193 million in merger-related costs and the addition of Comerica's ongoing operating expenses, particularly in compensation and technology.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income rose 28% to $801M, driven by the Comerica acquisition, higher net interest income, and increased noninterest income.
⌄
(FTE) surged 48% to $2.2B for Q2 2026, primarily due to the addition of $73.0B in interest-earning assets from the Comerica acquisition and lower funding costs.
The fell 25% to $129 million, as an improved economic forecast and better portfolio credit characteristics more than offset the effect of higher loan balances from the acquisition.
Total deposits increased 36% from year-end 2025 to $234.1 billion, reflecting the assumption of $65.2 billion in Comerica deposits, while the declined to 9.93% from 10.58% a year ago.
The Commercial Banking 's pre-tax income more than doubled to $840 million, while Consumer and Small Business Banking income fell 5% to $616 million due to higher expenses.
What changed
The $635 million in merger-related charges that drove Q1 2026 down 68% fell to $193 million in Q2, allowing the underlying earnings power of the combined entity to show through in an $801 million net income result.
The declined further to 9.93% from 9.89% in Q1 2026, as the full quarter of combined operations and balance sheet consolidation continued to pressure regulatory capital metrics ahead of expected Category III requirements.
The fell 25% to $129 million, a reversal from the 30% increase in Q1 2026 that had been driven by initial reserves on acquired unfunded commitments and a geopolitical risk adjustment.
Total assets grew to $300.2 billion from $297.0 billion in Q1 2026, reflecting the first full quarter of the combined balance sheet after the Comerica acquisition closed partway through the prior quarter.
What to watch
Whether the stabilizes or continues to decline from 9.93% as the bank approaches Category III regulatory status, and whether management provides a timeline for resuming share repurchases.
The trajectory of merger-related costs, which fell from $635 million in Q1 to $193 million in Q2, and whether they continue to decline toward a run-rate that reveals the combined entity's core operating efficiency.
Whether the , which management has not reported since Q3 2025, resumes its expansion as the combined balance sheet's earning assets reprice and deposit costs evolve.
The performance and credit quality of the acquired Comerica loan portfolio as it seasons, particularly given the improved economic forecast cited in the lower credit provision.
Noninterest income grew 41% to $1.1B, with significant increases in commercial payments, wealth and asset management, and capital markets fees, all impacted by the Comerica integration.
Noninterest expense jumped 67% to $2.1B, largely from merger-related costs of $193M in Q2 and the integration of Comerica's operations, including higher compensation and technology spend.
The decreased 25% to $129M, reflecting an improved economic forecast and better portfolio credit characteristics, partially offset by higher loan balances.
Total deposits increased 36% from year-end 2025 to $234.1B, driven by the assumption of $65.2B in Comerica deposits, while the CET1 capital ratio declined to 9.93% from 10.58% a year ago.
The Commercial Banking 's pre-tax income more than doubled to $840M, while Consumer and Small Business Banking income fell 5% to $616M due to higher expenses.
Quantitative and Qualitative Disclosures About Market Risk
Information presented in the Interest Rate and Price Risk Management subsection of the Risk Management section of Management’s Discussion and Analysis of Financial Condition and Results of Operations is incorporated herein by reference. This information contains certain statemen…
⌄
Information presented in the Interest Rate and Price Risk Management subsection of the Risk Management section of Management’s Discussion and Analysis of Financial Condition and Results of Operations is incorporated herein by reference. This information contains certain statements that the Bancorp believes are forward-looking statements. Refer to page 1 for cautionary information regarding forward-looking statements.