-- Fifth Third Bancorp (FITB) is well positioned for "stable and profitable" growth under Chief Executive Tim Spence, with strong capital discipline and successful execution of its Comerica acquisition supporting long-term shareholder value, RBC Capital Markets said in a report emailed Monday.
The deal closed without any "tangible book value dilution," the firm said, adding that the tangible book value per share grew 1.2% sequentially and 15% year-over-year to $22.88. The merger instantly vaulted Fifth Third past $300 billion in total assets, according to the note.
While reported earnings per share of $0.15 were impacted by one-time merger-related charges, adjusted earnings of $0.83 per share reflected the "underlying earnings power" of the combined franchise, according to the report.
Integration of the markets is reportedly tracking ahead of schedule, with a full "system conversion" slated for Labor Day weekend, the firm noted. The bank's management expects to realize $360 million in "net cost savings" in 2026, the report said, adding that the bank is seeing particularly strong momentum in Texas, where customer response rates have tripled those of legacy markets.
RBC maintained an outperform rating on Fifth Third Bancorp with a price target of $57.
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