6. Fifth Third Bancorp (NASDAQ:FITB)
Dividend Yield as of April 7: 3.37%
On April 7, BofA lowered its price recommendation on Fifth Third Bancorp (NASDAQ:FITB) to $58 from $60. It kept a Buy rating on the shares. The firm reduced price targets across its regional bank coverage by about 3% on average, pointing to lower valuation multiples, higher uncertainty around earnings per share, and a rising cost of equity.
On the same day, Goldman Sachs reinstated coverage of Fifth Third with a Buy rating and a $55 price target, implying about 16% upside. The firm said the bank is positioned to deliver a 19% return on tangible common equity while also achieving “peer-leading” balance sheet growth.
During the Q4 2025 earnings call, Chairman Timothy N. Spence Preston indicated that full-year net interest income is expected to be in the range of $8.6 billion to $8.8 billion. He also said adjusted noninterest income for the year is projected to fall between $4 billion and $4.4 billion. Preston added that full-year noninterest expenses are expected to come in between $7 billion and $7.3 billion. This outlook excludes the impact of expected CDI amortization and about $1.3 billion in estimated acquisition-related charges. He noted that the guidance includes the realization of 37.5% of the $850 million in annualized run-rate expense synergies expected in 2026.
He further explained that the company’s projections suggest adjusted revenue and adjusted PPNR, excluding CDI amortization, would increase by 40% to 45% compared to 2025. The outlook also includes an additional 100 to 200 basis points of positive operating leverage. The company expects net charge-offs to range between 30 and 40 basis points in 2026, including the impact of Comerica’s loan portfolio. Preston said that after closing the Comerica acquisition, the CET1 capital ratio is expected to remain close to the company’s 10.5% target.
Fifth Third Bancorp (NASDAQ:FITB) operates as a diversified financial services company and serves as the indirect holding company of Fifth Third Bank, National Association. Its Commercial Banking segment provides credit intermediation, cash management, and financial services to large and middle-market businesses, as well as government and professional clients.
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