Fifth Third Bancorp (FITB.US): 3Q Led By Cost Synergies, Deposit Growth - More To Come; Efficiency Sharply Better In 4Q, LT Balance Overweight

J.P. Morgan maintains an Overweight rating on Fifth Third Bancorp (FITB) with a December 2027 price target of $58. Fifth Third posted core 3Q EPS of $1.13 (reported EPS $0.90). The bank converted Comerica's branch network over Labor Day and consolidated 82 branches, accelerating realization of cost synergies, with all merger-related cost synergies expected in the 4Q26 run rate. Deposits in Comerica continue to grow, up 23% qoq in the Southwest. Given increased asset sensitivity and the recent rise in rates, the bank added $7 billion of receive-fixed swaps and $2.5 billion of HTM securities. Using guidance midpoints implies 4Q efficiency ratio improving sharply to ~51.5%, with potential for FY efficiency below 53%;