Citi upgraded Fifth Third Bancorp to Buy from Neutral on Tuesday as the bank enters the final stages of its plan to reap $850M in annualized expense synergies from its acquisition of Comerica. Fifth Third is now deploying its product line, including a more robust mortgage platform, treasury management, and capital markets capabilities, across Comerica's legacy commercial clients. Citi analyst Benjamin Gerlinger wrote that with strong customer retention rates, the pro forma franchise is set for sustained revenue growth as these new products gain traction. Gerlinger added that the addition of Comerica's commercial-heavy loan book boosts Fifth Third's asset sensitivity, with a large portion of the variable-rate loan portfolio positioned for positive repricing that supports further net interest margin expansion. Fifth Third stock rose 0.7% in premarket trading.
Fifth Third BancorpCiti upgraded Fifth Third to Buy on Comerica integration synergies and rate-driven net interest margin expansion.
Citigroup Inc.