Regional banking company Fifth Third Bancorp (NASDAQ: FITB) reported revenue ahead of Wall Street’s expectations in Q3 CY2025, with sales up 8.2% year on year to $2.31 billion. Its GAAP profit of $0.91 per share was 5.9% above analysts’ consensus estimates.
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Fifth Third Bancorp (FITB) Q3 CY2025 Highlights:
- Net Interest Income: $1.53 billion vs analyst estimates of $1.52 billion (7.3% year-on-year growth, in line)
- Net Interest Margin: 3.1% vs analyst estimates of 3.1% (in line)
- Revenue: $2.31 billion vs analyst estimates of $2.29 billion (8.2% year-on-year growth, 0.8% beat)
- Efficiency Ratio: 54.9% vs analyst estimates of 54.5% (37.6 basis point miss)
- EPS (GAAP): $0.91 vs analyst estimates of $0.86 (5.9% beat)
- Tangible Book Value per Share: $21.66 vs analyst estimates of $21.45 (7.3% year-on-year growth, 1% beat)
- Market Capitalization: $26.67 billion
Company Overview
Named after the merger of Third National Bank and Fifth National Bank in 1908, Fifth Third Bancorp (NASDAQ: FITB) is a financial services company that provides banking, lending, wealth management, and investment services to individuals and businesses across the Midwest and Southeast.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Over the last five years, Fifth Third Bancorp grew its revenue at a tepid 2.5% compounded annual growth rate. This was below our standards and is a poor baseline for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Fifth Third Bancorp’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Fifth Third Bancorp reported year-on-year revenue growth of 8.2%, and its $2.31 billion of revenue exceeded Wall Street’s estimates by 0.8%.
Net interest income made up 65% of the company’s total revenue during the last five years, meaning lending operations are Fifth Third Bancorp’s largest source of revenue.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
Fifth Third Bancorp’s TBVPS declined at a 1.2% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 25.4% annually over the last two years from $13.76 to $21.66 per share.
Over the next 12 months, Consensus estimates call for Fifth Third Bancorp’s TBVPS to grow by 12% to $24.26, top-notch growth rate.
Key Takeaways from Fifth Third Bancorp’s Q3 Results
It was good to see Fifth Third Bancorp narrowly top analysts’ tangible book value per share expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $40.78 immediately following the results.
So should you invest in Fifth Third Bancorp right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
