Fifth Third’s earnings fall in line amid credit hits and M&A; Truist beats estimates, maintains 2025 guidance

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• Key insight: Truist Financial reported third-quarter earnings Friday, with earnings per share that beat analysts’ estimates.
• Forward look: The regional bank expects full-year 2025 expenses to rise about 1% compared with the prior year.
• Supporting data: Wealth management fees rose 6.9% year over year.
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• Key insight: Regional bank stocks were punished in the markets on Thursday as investors got skittish over credit quality.
• Supporting data: The KBW Nasdaq Regional Banking Index fell some 7% by the late afternoon.
• What’s at stake: Regional banks have been on the path of recovery after turbulence throughout 2022 and 2023.
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• Key insight: Bank regulators are rescinding principles that toughened large banks’ oversight of financial climate risk. 
• Forward look: Expect the Trump administration to continue to pull back guidance and actions that address the issue. 
• Expert quote: “Good riddance” — Fed Gov. Chris Waller.
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• Key Insight: KeyCorp CEO Chris Gorman welcomed the Trump administration’s deregulation of the banking industry.
• Expert Quote: “I’ve been really pleased with what has been a pretty dramatic change,” Gorman said.
• Forward Look: KeyCorp aims to raise its return on tangible common equity, which was 12.5% in the third quarter, to 15% by the end of 2027.
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• Key insight: Fifth Third’s massive credit blow tied to the allegedly-fraudulent Tricolor Holdings bankruptcy “didn’t end up costing them that much,” an analyst said.
• What’s at stake: The company said last week it would acquire Comerica Bank, in what has been the largest bank deal announcement of 2025.
• Supporting data: The KBW Regional Banking Index fell nearly 6% on Thursday.
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From the rapid rise of AI to ongoing political and economic uncertainty, many forces are poised to shape the banking landscape in 2026. Share your predictions for the year ahead by taking this 5- to 10-minute survey. Your insights will help inform American Banker’s coverage of how industry leaders see the year unfolding. All responses will remain confidential and be used solely in aggregate for research.