Fitb stock price remains sensitive to treasury yield

FITB stock price remains sensitive to treasury yield moves, with recent upticks in yields adding slight tailwinds. Higher yields support regional banks’ interest income, potentially lifting valuations. On Jul. 17, shares of FITB plunged 1% after its Q2 earnings release. On the upside, due to continued loan growth and net interest margin expansion, the company’s adjusted revenue advanced 6.3% year-over-year to $2.3 billion. Moreover, its adjusted efficiency ratio improved 130 basis points from the same period last year to 55.5%, indicating disciplined expense management. However, its provision for credit losses increased by a notable 78.4% annually to $173 million, while its total nonperforming portfolio loans and leases surged 37.8% from the prior-year quarter, reflecting weakening credit quality, which might have made investors jittery. FITB’s mean price target of $47.74 represents a 15.7% premium. Meanwhile, the Street-high target of $53 suggests a 28.5% upside potential from current price levels.