Regional banking company Fifth Third Bancorp (NASDAQ: FITB) met Wall Streets revenue expectations in Q4 CY2025, with sales up 4.9% year on year to $2.34 billion. Its GAAP profit of $1.04 per share was 4.9% above analysts’ consensus estimates.
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Fifth Third Bancorp (FITB) Q4 CY2025 Highlights:
- Net Interest Income: $1.53 billion vs analyst estimates of $1.54 billion (6.3% year-on-year growth, 0.6% miss)
- Net Interest Margin: 3.1% vs analyst estimates of 3.1% (in line)
- Revenue: $2.34 billion vs analyst estimates of $2.34 billion (4.9% year-on-year growth, in line)
- Efficiency Ratio: 55.8% vs analyst estimates of 54.3% (145.5 basis point miss)
- EPS (GAAP): $1.04 vs analyst estimates of $0.99 (4.9% beat)
- Tangible Book Value per Share: $22.60 vs analyst estimates of $22.42 (20.9% year-on-year growth, 0.8% beat)
- Market Capitalization: $32.5 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
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Over the last five years, Fifth Third Bancorp grew its revenue at a sluggish 3.3% compounded annual growth rate. This fell short of our benchmark for the banking sector and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Fifth Third Bancorp’s recent performance shows its demand has slowed as its annualized revenue growth of 1.4% over the last two years was below its five-year trend. 
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 grew its revenue by 4.9% year on year, and its $2.34 billion of revenue was in line with Wall Street’s estimates.
Net interest income made up 64.6% of the company’s total revenue during the last five years, meaning lending operations are Fifth Third Bancorp’s largest source of revenue.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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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.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Fifth Third Bancorp’s TBVPS was flat over the last five years. However, TBVPS growth has accelerated recently, growing by 13.2% annually over the last two years from $17.64 to $22.60 per share.
Over the next 12 months, Consensus estimates call for Fifth Third Bancorp’s TBVPS to grow by 7.8% to $24.36, paltry growth rate.
Key Takeaways from Fifth Third Bancorp’s Q4 Results
It was good to see Fifth Third Bancorp narrowly top analysts’ tangible book value per share expectations this quarter. On the other hand, its net interest income slightly missed. Overall, this was a mixed quarter. The stock remained flat at $49.35 immediately following the results.
Is Fifth Third Bancorp an attractive investment opportunity 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).
