Fifth Third Bancorp approves new 100 million share buyback program

CINCINNATI - Fifth Third Bancorp (NASDAQ:FITB), a regional bank with a market capitalization of $25.59 billion, announced Monday that its Board of Directors has approved a new share repurchase authorization of up to 100 million shares, replacing its previous 2019 authorization. According to InvestingPro data, the bank currently trades near its Fair Value, with a P/E ratio of 12.09.

The new buyback program has no expiration date or specific price targets and may be executed through open market purchases or private transactions, including Rule 10b5-1 programs. The bank can suspend the program at any time.

The previous share repurchase authorization from 2019 still had 11.8 million shares remaining before being replaced by this new program.

Fifth Third noted in its press release statement that all future capital distributions remain subject to the bank’s performance evaluation, economic conditions, market factors, regulatory considerations, and Board approval.

Fifth Third Bancorp serves as the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. The company’s common stock trades on the NASDAQ Global Select Market.

Founded in 1858, Fifth Third operates as a regional bank providing financial services to individuals, families, businesses and communities across its market areas.

In other recent news, Fifth Third Bancorp has been the subject of several analyst assessments that highlight various aspects of the bank’s performance and strategy. DA Davidson recently upgraded Fifth Third Bancorp’s stock rating from Neutral to Buy, raising the price target to $47.00, citing strong balance sheet management and consistent earnings growth as key factors. Meanwhile, Keefe, Bruyette & Woods maintained a Market Perform rating with a $42.00 price target, emphasizing the bank’s commitment to strategic growth and asset quality despite a rise in non-performing loans. BofA Securities also reiterated a Buy rating with a $44.00 price target, focusing on the bank’s emphasis on enhancing shareholder returns and positioning for growth above nominal GDP levels. Jefferies initiated coverage with a Buy rating and a $47.00 price target, highlighting Fifth Third’s growth prospects in loans, net interest income, and its strategic expansion in the Southeast. Conversely, DA Davidson adjusted its outlook by cutting the price target to $42.00 while maintaining a Neutral rating, reflecting a cautious economic forecast and the bank’s conservative financial adjustments. These developments underscore Fifth Third Bancorp’s diverse strategic initiatives and the varying perspectives of financial analysts on its future performance.

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