Fifth Third's Comerica Integration Tracking Ahead of Targets, RBC Says

MT Newswires Live07-21

Fifth Third Bancorp's (FITB) integration of Comerica is progressing well and should exceed management's goals, RBC Capital Markets said Friday in a report.

The Comerica systems conversion, scheduled for early September, is the final step toward realizing the full cost-saving benefits of the deal in Q4, the report said.

RBC cited net interest income and margin expansion from both the Comerica contribution and organic momentum following Fifth Third's Q2 results last week, along with broad-based fee revenue growth and improved credit quality.

With capital ratios rebuilding, RBC expects Fifth Third to restart its stock buyback program in Q3.

RBC raised its price target on Fifth Third stock to $62 from $57 and maintained its outperform rating.

Price: 57.59, Change: -0.42, Percent Change: -0.72

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