MW Fifth Third says nothing more about its Tricolor loan loss, and the stock rises

By Steve Gelsi

Cincinnati-based bank's provision for credit losses rises but were less than analyst expectations

Fifth Third Bank (5/3 Bank) stock is recovering its footing

Fifth Third Bancorp's stock regained its footing in early trading on Friday as the bank topped third-quarter profit forecasts, disclosed no further loan problems during the quarter, and delivered lower-than-expected provision for credit losses.

Fifth Third's stock $(FITB)$ was up 2.9% in premarket trading on Friday.

In the previous session, the stock fell 6% as loan problems disclosed by Zions Bancorp $(ZION)$ triggered a selloff in regional-bank stocks, as well as the broader stock market. Zions stock rose 1.1% in premarket trading on Friday.

Read: Banks' credit 'cockroaches' are spooking the stock market. Here's what investors need to know.

Fifth Third Bancorp said its provision for loan losses rose 23% to $197 million in the quarter, but the bank had already flagged an increase last month in an update that touched off selling in its stock.

Wall Street analysts had expected $245 million in loan loss provisions, which is money that banks set aside to cover anticipated problems with loans, according to FactSet data.

Fifth Third also managed to grow its bottom line in the quarter by 14% to $608 million, or 91 cents a share. The bank topped the FactSet consensus estimate for earnings of 86 cents a share.

The bank will offer additional comment in it call with analysts at 9 a.m. Eastern Time.

Fifth Third Bancorp last month disclosed a loss of up to $200 million due to suspected fraud on two loans.

While the bank didn't name the borrower, it was a lender to now-bankrupt subprime auto finance company Tricolor, which had announced a at least one warehouse loan with Fifth Third in recent years.

Earlier this week, JPMorgan Chase & Co. $(JPM)$ said Tricolor contributed $170 million to losses booked during the third quarter.

Dimon raised concerns about credit-market conditions by noting that "when you see one cockroach, there are probably more."

Separately, Fifth Third made headlines in recent weeks with its deal to buy Comerica Inc. $(CMA)$ for $11 billion in a major deal in the space.

See: Fifth Third paying nearly $11 billion for Comerica as wave of bank mergers builds

As of Thursday's close, Fifth Third's stock has fallen 4.5% in 2025, while the S&P 500 SPX is up by 12.7%. Comerica's stock has risen 19.4%.

Also read: These banks might be next to pair up, says analyst who called the $11 billion Comerica sale

-Steve Gelsi

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October 17, 2025 08:01 ET (12:01 GMT)

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