Financial and Technical Analysis of OHIO-Based Bank

The OHIO-based bank, Fifth Third Bancorp (NASDAQ: FITB), offers banking and financial services. The services include retail and commercial banking, consumer lending, and investment advisory services through its subsidiary “Fifth Third Bank.” The company operates in Commercial Banking, Branch Banking, Consumer Lending, and Wealth and Asset Management.

The Growth in Banking Ratios

Now, Let’s simply understand the latest quarter financial report of September this year. Compared to the 2nd quarter of this year, average deposits showed a 3% increase, and period-end deposits increased by 2%. The deposits include Interest checking, savings, Money market, and Foreign Office. Moreover, during the same period, period-end deposits showed a 4% rise compared to 3Q22.

The bank showed a 1% increase in Pre-provision Net Revenue (PPNR). This value comes after the addition of net interest income and non-net interest income. Moreover, the company also showed a 10% increase in its net income. The efficiency ratio was increased by 1.2%, reaching 55% in this quarter. This ratio shows how much non-interest expenses the bank has incurred upon the total revenue it collected.

Additionally, the consumer household growth witnessed a 2.3% increase when compared to the previous year’s same quarter. In the end, the Non-Performing Assets (NPA), defaulted payments and loans stayed at 0.51% which is an optimal level.

Technical Analysis and Prediction of the FITB Stock Price

The FITB stock price has been in a downtrend since the start of February this year. At the press time, the FITB stock is trading at the level of $23.59. The bulls have just reclaimed their support level of $23.57. It means that the stock is likely to rise toward the immediate resistance level of $28.19. The current trading price is well below the 50-day EMA and 150-day EMA, which indicates the weak strength of bulls in recent times.

The Relative Strength Index (RSI) is currently in the weak zone, which is considered below the neutral level of 50. The RSI is looking forward to making a bullish crossover with its Simple moving average line on the same level as 40.

The bullish momentum will decide the next price action. If the bears take control, the price will move toward its next support level of $19.56.

Conclusion

Fifth Third Bancorp (NASDAQ: FITB) offers banking and financial services. The bank has posted optimum quarterly results, where the major banking ratios are positive. This bank’s FIBT stock has been showing a downtrend since February. The FITB price prediction is bearish till the bulls can break the trendline.

Technical Levels

Support: $23.57, and $19.56
Resistance: $28.19, and $31.55

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing