Fifth Third Bancorp partners with Eldridge to offer private credit solutions

CINCINNATI - Fifth Third Bancorp (NASDAQ:FITB), a $28.4 billion market cap financial institution trading at a P/E ratio of 13.2, and Eldridge announced Tuesday a strategic partnership to provide private credit arrangements to Fifth Third’s Commercial Bank clients.

The collaboration aims to deliver flexible financing solutions that address evolving client needs in the private credit market. The partnership builds upon an existing relationship between the two organizations that began with Eldridge’s affiliate, Stonebriar Commercial Finance. According to InvestingPro data, Fifth Third has demonstrated strong financial stability, maintaining dividend payments for 51 consecutive years with a current yield of 3.48%.

"This marks a significant moment in providing a private credit solution for our clients," said Kevin Khanna, head of Commercial Banking at Fifth Third. "We are positioned to unlock new opportunities and enhance our collective value proposition."

Nicholas Sandler, Co-President of Eldridge Capital Management, described the partnership as "a natural evolution of our engagement" following Eldridge’s previous work with Fifth Third through Stonebriar Commercial Finance, where the bank supported asset-based credit growth.

The program is designed to combine the strengths of both organizations to deliver private credit solutions that help clients pursue strategic opportunities. According to the press release statement, the agreement reinforces a shared commitment to innovation and strategic growth.

Fifth Third Bancorp is a federally chartered institution with its common stock traded on the NASDAQ Global Select Market. Eldridge is an asset management and insurance holding company with over $70 billion in assets under management, operating through two divisions: Eldridge Capital Management and Eldridge Wealth Solutions. Based on InvestingPro’s comprehensive analysis, Fifth Third appears undervalued at current levels, with multiple additional ProTips and detailed metrics available in the platform’s exclusive Pro Research Report, which offers deep-dive analysis of 1,400+ top US stocks.

In other recent news, Fifth Third Bancorp reported strong financial results for the second quarter of 2025, surpassing Wall Street’s expectations. The company achieved an earnings per share (EPS) of $0.88, slightly above the forecasted $0.87, and exceeded revenue projections with $2.25 billion compared to the expected $2.22 billion. In addition to these results, Truist Securities raised its price target for Fifth Third Bancorp to $48.00 from $44.00, maintaining a Buy rating, due to an improved net interest income outlook and slightly better charge-offs. DA Davidson also reiterated its Buy rating on the company with a price target of $47.00. Despite noting that loan growth may moderate in the latter half of 2025, DA Davidson expressed a positive outlook, though it slightly lowered its earnings per share forecasts. These developments reflect a generally optimistic view from analysts regarding Fifth Third Bancorp’s future performance.

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