TBV per share rose 10% YoY, adjusted ROTCE hit 19%. CEO Spence said the $850M synergy run-rate is on track after Labor Day conversion. Consumer deposits climbed 4%.
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Fifth Third Bancorp reported second-quarter results that CEO Tim Spence said show early wins from the Comerica merger, with tangible book value per share rising 10% from a year earlier and 7% since the deal was announced in October. Spence reiterated a commitment to deliver $850 million in annualized run-rate synergies by the fourth quarter, after the bank's systems conversion over Labor Day weekend.
“When we announced our merger with Comerica nine months ago, we made three commitments: to produce no tangible book value per share dilution, to become an even more profitable company, and to create an even better platform for long-term growth,” Spence said on the July 17 earnings call. “While we are still in the middle of integration and not every metric is yet where it will be, our trajectory and long-term potential are visible in this quarter’s results.”
The adjusted return on tangible common equity improved to 19% in the quarter, while the adjusted efficiency ratio fell to 57%, the bank said. Consumer and small business deposits rose 4% from the first quarter.
Integration is on schedule. Fifth Third executed a second mock conversion in June and remains set for the actual systems conversion over Labor Day weekend, Spence said. The conversion is the last step to unlocking the $850 million in synergies promised for the fourth quarter.
The merger with Comerica closed in February, creating the ninth-largest U.S. bank by assets, the company has said.
Fifth Third's product and technology teams rolled out several updates in the quarter. Newline extended its Model Context Protocol to let AI models use its tools in a standardized way, and the consumer team shipped a new AI-powered interface inside the bank's mobile app. The bank also launched a small business banking experience called Fifth Third for Business.
On the Direct Express program, Fifth Third has shipped the first cards on its new platform, with 66,000 new beneficiaries and all participating federal agencies now live, Spence said. The Treasury selected Fifth Third as the financial agent for the program, which serves about 3.4 million Americans receiving federal benefits via a prepaid debit card.
Digital adoption continued. The bank reported 3.27 million average active digital users, up from 3.17 million a year ago, and 2.57 million average active mobile users, up from 2.43 million.
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“While it’s early days and we have much yet to learn about how best to harness the power of these tools, I’m looking forward to what we will be able to do after our technical conversion is complete,” Spence said.
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