Fifth Third Bancorp said adjusted earnings increased in the first quarter as higher net interest income and robust capital markets activity underpinned profitability.
The Cincinnati, Ohio-based lender reported net interest income of $1.93 billion, up more than 34% from the year-ago quarter. Net interest margins expanded by 27 basis points during the first three months of 2026, supporting the improvement in lending profitability. Average portfolio loans and leases rose to $157.63 billion, compared with $121.27 billion a year earlier.
Company results reflected the broader industry dynamic, with Federal Reserve rate cuts in late 2025 helping U.S. banks lower deposit costs and stimulate loan demand. Those factors helped keep borrowing levels resilient during the quarter despite a challenging macroeconomic backdrop.
Adjusted net income available to common shareholders climbed to $731 million for the three months ended March 31, up from $502 million in the same period a year earlier.
Fifth Third completed its multibillion-dollar acquisition of Comerica in February, and management said early financial gains from the deal are apparent. "Early financial benefits (from the acquisition) are already showing up, including strong net interest margin expansion and tangible book value per share growth," Fifth Third CEO Tim Spence said.
Capital markets fees rose 49% in the quarter to $134 million, driven by client financial risk management revenue, reinforcing the contribution from higher-fee businesses during the period.
The lender also said it had limited exposure to private credit, a category that has drawn investor scrutiny over transparency and liquidity concerns. Shares of Fifth Third were up marginally in pre-market trading; the stock has outperformed broader markets so far in 2026, with shares climbing about 6% as of the last close.
Fifth Third's quarterly performance mirrors patterns reported by larger peers, with firms such as JPMorgan Chase and Bank of America also reporting higher profits on the back of stronger net interest income and capital markets activity.
Context and implications
Loan growth, margin expansion and stronger capital markets fees combined to lift core earnings for the quarter. Management emphasized that acquisition-related benefits are contributing to the gains, while the bank's limited private credit exposure was noted amid investor caution in that area.