EX-99.12q42024earningsrelease.htmEX-99.1 Document
Fifth Third Bancorp Reports Fourth Quarter 2024 Diluted Earnings Per Share of $0.85
Strong returns driven by growth in loans and fees and improvement in net interest margin
Reported results included a negative $0.05 impact from certain items on page 2
Key Financial Data
Key Highlights
$ in millions for all balance sheet and income statement items
4Q24
3Q24
4Q23
Stability:
•Resilient balance sheet delivers continued positive momentum in net interest income, up 1% sequentially, attributable to loan growth, deposit rate management, and fixed rate asset re-pricing
•Net charge-off ratio decreased 2 bps sequentially
Profitability:
•Disciplined expense management; efficiency ratio(a) of 56.4%; adjusted efficiency ratio(a) of 54.7% improved 60 bps compared to 4Q23
•Interest-bearing liabilities costs down 38 bps from 3Q24, contributing to the 7 bps improvement in NIM
Growth:
•Strong fee performance driven by strategic investments. Compared to 4Q23(i):
•Capital markets fees up 16%
•Wealth and asset management revenue up 11%
•Commercial payments revenue up 7%
•Compared to 3Q24, period-end consumer and commercial loans increased 2% and 3%, respectively
Income Statement Data
Net income available to common shareholders
$582
$532
$492
Net interest income (U.S. GAAP)
1,437
1,421
1,416
Net interest income (FTE)(a)
1,443
1,427
1,423
Noninterest income
732
711
744
Noninterest expense
1,226
1,244
1,455
Per Share Data
Earnings per share, basic
$0.86
$0.78
$0.72
Earnings per share, diluted
0.85
0.78
0.72
Book value per share
26.17
27.60
25.04
Tangible book value per share(a)
18.69
20.20
17.64
Balance Sheet & Credit Quality
Average portfolio loans and leases
$117,860
$116,826
$118,858
Average deposits
167,237
167,196
169,447
Accumulated other comprehensive loss
(4,636)
(3,446)
(4,487)
Net charge-off ratio(b)
0.46
%
0.48
%
0.32
%
Nonperforming asset ratio(c)
0.71
0.62
0.59
Financial Ratios
Return on average assets
1.17
%
1.06
%
0.98
%
Return on average common equity
13.0
11.7
12.9
Return on average tangible common equity(a)
18.4
16.3
19.8
CET1 capital(d)(e)
10.51
10.75
10.29
Net interest margin(a)
2.97
2.90
2.85
Efficiency(a)
56.4
58.2
67.2
Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.
From Tim Spence, Fifth Third Chairman, CEO and President:
Fifth Third delivered another year of strong and consistent performance in 2024. In the fourth quarter, we achieved growth in loans, deposits, and fees, while also expanding our net interest margin and maintaining expense discipline.
The consistent investment and execution of our strategic growth priorities continues to yield strong results. In the fourth quarter, our total consumer households surpassed 2.5 million, and we opened 21 new branches in high-growth markets. Both wealth and asset management and capital markets experienced double digit revenue growth compared to the year-ago quarter. Additionally, commercial payments revenue grew 7% and continues to add new payments-led relationships.
During 2024, our strong profitability allowed us to return $1.6 billion of capital to our shareholders while increasing our capital ratios.
The risks we face are well-understood and well-contained. Our balance sheet was resilient in 2024 and is positioned to continue this strong performance in 2025 through a range of interest rate outcomes. We remain proactive in managing our credit risk. As we navigate these risks, we are committed to generating long-term, sustainable value for our shareholders as we adhere to our guiding principles of stability, profitability, and growth - in that order.
Investor contact: Matt Curoe (513) 534-2345 | Media contact: Jennifer Hendricks Sullivan (614) 744-7693 January 21, 2025
Income Statement Highlights
($ in millions, except per share data)
For the Three Months Ended
% Change
December
September
December
2024
2024
2023
Seq
Yr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,443
$1,427
$1,423
1%
1%
Provision for credit losses
179
160
55
12%
225%
Noninterest income
732
711
744
3%
(2)%
Noninterest expense
1,226
1,244
1,455
(1)%
(16)%
Income before income taxes(a)
$770
$734
$657
5%
17%
Taxable equivalent adjustment
$6
$6
$7
—
(14)%
Applicable income tax expense
144
155
120
(7)%
20%
Net income
$620
$573
$530
8%
17%
Dividends on preferred stock
38
41
38
(7)%
—
Net income available to common shareholders
$582
$532
$492
9%
18%
Earnings per share, diluted
$0.85
$0.78
$0.72
9%
18%
Fifth Third Bancorp (NASDAQ®: FITB) today reported fourth quarter 2024 net income available to common shareholders of $582 million, or $0.85 per diluted share, compared to $532 million, or $0.78 per diluted share, in the prior quarter and $492 million, or $0.72 per diluted share, in the year-ago quarter.
Diluted earnings per share impact of certain item(s) - 4Q24
(after-tax impact; $ in millions, except per share data)
Interchange litigation matters(f)2
$(42)
Fifth Third Foundation contribution (noninterest expense)(f)
(12)
Update to the FDIC special assessment (noninterest expense)(f)
8
Benefit related to the resolution of certain state income tax matters
15
After-tax impact(f) of certain items
$(31)
Diluted earnings per share impact of certain item(s)1
$(0.05)
Totals may not foot due to rounding; 1Diluted earnings per share impact reflects 681.456 million average diluted shares outstanding
2Interchange litigation matters decreased noninterest income by $51 million and increased noninterest expense by $4 million
Full year 2024 net income available to common shareholders was $2.2 billion, or $3.14 per diluted share, compared to 2023 full year net income available to common shareholders of $2.2 billion, or $3.22 per diluted share.
2
Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended
% Change
December
September
December
2024
2024
2023
Seq
Yr/Yr
Interest Income
Interest income
$2,534
$2,675
$2,655
(5)%
(5)%
Interest expense
1,091
1,248
1,232
(13)%
(11)%
Net interest income (NII)
$1,443
$1,427
$1,423
1%
1%
Average Yield/Rate Analysis
bps Change
Yield on interest-earning assets
5.21
%
5.43
%
5.31
%
(22)
(10)
Rate paid on interest-bearing liabilities
3.00
%
3.38
%
3.34
%
(38)
(34)
Ratios
Net interest rate spread
2.21
%
2.05
%
1.97
%
16
24
Net interest margin (NIM)
2.97
%
2.90
%
2.85
%
7
12
Compared to the prior quarter, NII increased $16 million, or 1%, primarily reflecting higher loan balances and decreased cost of interest bearing deposits, partially offset by lower loan yields due to the impact of market rates on floating rate loans. These same factors drove the 7 bps increase in NIM. NIM continues to be impacted by the decision to carry elevated liquidity given the environment, with average other short-term investments (including interest-bearing cash) of $18 billion in the current quarter.
Compared to the year-ago quarter, NII increased $20 million, or 1%, and NIM increased 12 bps. This year-over-year improvement was due to the benefits from proactive deposit and wholesale funding management decreasing interest-bearing liabilities costs by 34 bps, which more than offset the combined impact of the 10 bps decrease in interest-earning assets yield and the $4.7 billion reduction in interest-earning assets.
3
Noninterest Income
($ in millions)
For the Three Months Ended
% Change
December
September
December
2024
2024
2023
Seq
Yr/Yr
Noninterest Income
Wealth and asset management revenue
$163
$163
$147
—
11%
Commercial payments revenue
155
154
145
1%
7%
Consumer banking revenue
137
143
135
(4)%
1%
Capital markets fees
123
111
106
11%
16%
Commercial banking revenue
109
93
101
17%
8%
Mortgage banking net revenue
57
50
66
14%
(14)%
Other noninterest (loss) income
(4)
(13)
28
NM
NM
Securities (losses) gains, net
(8)
10
16
NM
NM
Total noninterest income
$732
$711
$744
3%
(2)%
During the fourth quarter of 2024, certain noninterest income line items were reclassified to better align disclosures to business activities. These reclassifications resulted in three new line items to describe noninterest income, including commercial payments revenue, consumer banking revenue and capital markets fees. Commercial banking revenue and other noninterest income were also affected by the reclassifications. These reclassifications did not affect total noninterest income and were retrospectively applied to all prior periods presented.
Reported noninterest income increased $21 million, or 3%, from the prior quarter, and decreased $12 million, or 2%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including the mark-to-market on the valuation of Visa total return swap and securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans that are more than offset in noninterest expense.
Noninterest Income excluding certain items
($ in millions)
For the Three Months Ended
December
September
December
% Change
2024
2024
2023
Seq
Yr/Yr
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)
$732
$711
$744
Valuation of Visa total return swap
51
47
22
Securities (gains) losses, net
8
(10)
(16)
Noninterest income excluding certain items(a)
$791
$748
$750
6%
5%
Noninterest income excluding certain items increased $43 million, or 6%, compared to the prior quarter, and increased $41 million, or 5%, from the year-ago quarter.
Compared to the prior quarter, wealth and asset management revenue was flat, due to a decrease in brokerage fee revenue, offset by an increase in personal asset management revenue. Commercial payments revenue increased $1 million, or 1%, primarily driven by an increase in commercial deposit fees. Capital markets fees increased $12 million, or 11%, reflecting increases in syndication fees and M&A advisory fees. Commercial banking revenue increased $16 million, or 17%, primarily reflecting increases in lease syndication and remarketing. Mortgage banking net revenue increased $7 million, or 14%, primarily due to the negative MSR net valuation adjustments in the prior quarter not repeating in the fourth quarter. Other noninterest income results were driven by the recognition of tax receivable agreement revenue of $11 million in the current quarter.
Compared to the year-ago quarter, wealth and asset management revenue increased $16 million, or 11%, primarily reflecting an increase in personal asset management revenue. Commercial payments revenue increased $10 million, or 7%, primarily driven by new customer acquisition, partially offset by a decrease in commercial card revenue. Consumer banking revenue increased $2 million, or 1%, primarily driven by an increase in card and processing revenue. Capital markets fees increased $17 million, or 16%, reflecting an increase in syndication fees, partially offset by a decrease in
4
institutional brokerage revenue. Commercial banking revenue increased $8 million, or 8%, primarily reflecting an increase in lease syndication and remarketing, partially offset by the continued decrease in operating lease revenue. Mortgage banking net revenue decreased $9 million, or 14%, primarily reflecting decreases in servicing fees and origination fees and gains on loan sales. The decrease in other noninterest income was primarily attributable to lower tax receivable agreement revenue.
Noninterest Expense
($ in millions)
For the Three Months Ended
% Change
December
September
December
2024
2024
2023
Seq
Yr/Yr
Noninterest Expense
Compensation and benefits
$665
$690
$659
(4)%
1%
Technology and communications
123
121
117
2%
5%
Net occupancy expense
88
81
83
9%
6%
Equipment expense
39
38
37
3%
5%
Loan and lease expense
36
34
34
6%
6%
Marketing expense
23
26
30
(12)%
(23)
Card and processing expense
21
22
21
(5)%
—
Other noninterest expense
231
232
474
—
(51)%
Total noninterest expense
$1,226
$1,244
$1,455
(1)%
(16)%
During the fourth quarter of 2024, certain noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications resulted in the separate disclosure of loan and lease expense, which was previously a component of other noninterest expense. These reclassifications did not affect total noninterest expense and were retrospectively applied to all prior periods presented.
Reported noninterest expense decreased $18 million, or 1%, from the prior quarter, and decreased $229 million, or 16%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
Noninterest Expense excluding certain item(s)
($ in millions)
For the Three Months Ended
% Change
December
September
December
2024
2024
2023
Seq
Yr/Yr
Noninterest Expense excluding certain item(s)
Noninterest expense (U.S. GAAP)
$1,226
$1,244
$1,455
Fifth Third Foundation contribution
(15)
—
(15)
Interchange litigation matters
(4)
(10)
—
FDIC special assessment
11
—
(224)
Restructuring severance expense
—
(9)
(5)
Noninterest expense excluding certain item(s)(a)
$1,218
$1,225
$1,211
(1)%
1%
Compared to the prior quarter, noninterest expense excluding certain items decreased $7 million, or 1%, primarily reflecting a decrease in compensation and benefits expense, offset by an increase in net occupancy expense. Noninterest expense in the current quarter included a $7 million benefit related to the mark-to-market impact of non-qualified deferred compensation compared to a $10 million expense in the prior quarter, both of which were largely offset in net securities gains/losses through noninterest income.
Compared to the year-ago quarter, noninterest expense excluding certain items increased $7 million, or 1%, primarily reflecting increases in compensation and benefits expense as well as technology and communications expense, partially offset by a decrease in marketing expense. The year-ago quarter included a $13 million expense related to the mark-to-market impact of non-qualified deferred compensation, which was largely offset in net securities gains through noninterest income.
5
Average Interest-Earning Assets
($ in millions)
For the Three Months Ended
% Change
December
September
December
2024
2024
2023
Seq
Yr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans
$51,567
$51,615
$54,633
—
(6)%
Commercial mortgage loans
11,792
11,488
11,338
3%
4%
Commercial construction loans
5,702
5,981
5,727
(5)%
—
Commercial leases
2,902
2,685
2,535
8%
14%
Total commercial loans and leases
$71,963
$71,769
$74,233
—
(3)%
Consumer loans:
Residential mortgage loans
$17,322
$17,031
$17,129
2%
1%
Home equity
4,125
4,018
3,905
3%
6%
Indirect secured consumer loans
16,100
15,680
15,129
3%
6%
Credit card
1,668
1,708
1,829
(2)%
(9)%
Solar energy installation loans
4,137
3,990
3,630
4%
14%
Other consumer loans
2,545
2,630
3,003
(3)%
(15)%
Total consumer loans
$45,897
$45,057
$44,625
2%
3%
Total average portfolio loans and leases
$117,860
$116,826
$118,858
1%
(1)%
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale
$48
$16
$72
200%
(33)%
Consumer loans held for sale
584
573
379
2%
54%
Total average loans and leases held for sale
$632
$589
$451
7%
40%
Total average loans and leases
$118,492
$117,415
$119,309
1%
(1)%
Securities (taxable and tax-exempt)
$56,702
$56,707
$57,351
—
(1)%
Other short-term investments
18,319
21,714
21,506
(16)%
(15)%
Total average interest-earning assets
$193,513
$195,836
$198,166
(1)%
(2)%
Compared to the prior quarter, total average portfolio loans and leases increased 1%. Average commercial portfolio loans and leases were stable, primarily reflecting increases in commercial mortgage loans and commercial leases, offset by a decrease in commercial construction loans. Average consumer portfolio loans increased 2%, primarily reflecting increases in indirect secured consumer loans, residential mortgage loans, and solar energy installation loans, partially offset by a decrease in other consumer loans.
Compared to the year-ago quarter, total average portfolio loans and leases decreased 1%. Average commercial portfolio loans and leases decreased 3%, primarily reflecting a decrease in C&I loans. Average consumer portfolio loans increased 3%, primarily reflecting increases in indirect secured consumer loans, solar energy installation loans, and home equity balances, partially offset by decreases in other consumer loans and credit card balances.
Average securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter were stable compared to the prior quarter and decreased 1% compared to the year-ago quarter. Average other short-term investments (including interest-bearing cash) of $18 billion in the current quarter decreased 16% compared to the prior quarter and decreased 15% compared to the year-ago quarter.
Period-end commercial portfolio loans and leases of $73 billion increased 3% compared to the prior quarter, primarily reflecting increases in C&I loans and commercial mortgage loans, partially offset by a decrease in commercial construction loans. Compared to the year-ago quarter, period-end commercial portfolio loans and leases increased 1%, primarily due to increases in commercial mortgage loans and commercial leases, partially offset by a decrease in C&I loans.
6
Period-end consumer portfolio loans of $46 billion increased 2% compared to the prior quarter, primarily reflecting increases in residential mortgage loans and indirect secured consumer loans. Compared to the year-ago quarter, period-end consumer portfolio loans increased 5%, primarily driven by increases in indirect secured consumer loans, residential mortgage loans, and solar energy installation loans, partially offset by a decrease in other consumer loans.
Total period-end securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter were stable compared to the prior quarter and decreased 1% compared to the year-ago quarter. Period-end other short-term investments of approximately $17 billion decreased 21% compared to the prior quarter, and decreased 22% compared to the year-ago quarter.
7
Average Deposits
($ in millions)
For the Three Months Ended
% Change
December
September
December
2024
2024
2023
Seq
Yr/Yr
Average Deposits
Demand
$40,137
$40,020
$43,396
—
(8)%
Interest checking
59,277
58,441
57,114
1%
4%
Savings
17,257
17,272
18,252
—
(5)%
Money market
37,279
37,257
34,292
—
9%
Foreign office(g)
164
164
178
—
(8)%
Total transaction deposits
$154,114
$153,154
$153,232
1%
1%
CDs $250,000 or less
10,592
10,543
10,556
—
—
Total core deposits
$164,706
$163,697
$163,788
1%
1%
CDs over $250,000
2,531
3,499
5,659
(28)%
(55)%
Total average deposits
$167,237
$167,196
$169,447
—
(1)%
CDs over $250,000 includes $1.5BN, $2.6BN, and $4.8BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 12/31/24, 9/30/24, and 12/31/23, respectively.
Compared to the prior quarter, total average deposits were stable, primarily reflecting increases in interest checking balances and demand deposits, offset by a decline in CDs over $250,000 which consists primarily of retail brokered deposits. Average demand deposits represented 24% of total core deposits in the current quarter. Period-end total deposits decreased 1%.
Compared to the year-ago quarter, total average deposits decreased 1%, primarily due to decreases in demand deposits, the aforementioned decrease in retail brokered deposits, and savings balances, partially offset by increases in money market deposits and interest checking balances. Period-end total deposits decreased 1%.
The period-end portfolio loan-to-core deposit ratio was 73% in the current quarter, compared to 71% in the prior quarter and 72% in the year-ago quarter.
Average Wholesale Funding
($ in millions)
For the Three Months Ended
% Change
December
September
December
2024
2024
2023
Seq
Yr/Yr
Average Wholesale Funding
CDs over $250,000
$2,531
$3,499
$5,659
(28)%
(55)%
Federal funds purchased
223
176
191
27%
17%
Securities sold under repurchase agreements
313
396
350
(21)%
(11)%
FHLB advances
1,567
2,576
3,293
(39)%
(52)%
Derivative collateral and other secured borrowings
76
52
34
46%
124%
Long-term debt
15,492
16,716
16,588
(7)%
(7)%
Total average wholesale funding
$20,202
$23,415
$26,115
(14)%
(23)%
CDs over $250,000 includes $1.5BN, $2.6BN, and $4.8BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 12/31/24, 9/30/24, and 12/31/23, respectively.
Compared to the prior quarter, average wholesale funding decreased 14%, primarily driven by decreases in long-term debt, FHLB advances, and CDs over $250,000. The decrease in CDs over $250,000 was primarily driven by a decrease in retail brokered deposits. The same items drove the 23% decrease from the year-ago quarter.
8
Credit Quality Summary
($ in millions)
As of and For the Three Months Ended
December
September
June
March
December
2024
2024
2024
2024
2023
Total nonaccrual portfolio loans and leases (NPLs)
$823
$686
$606
$708
$649
Repossessed property
9
11
9
8
10
OREO
21
28
28
27
29
Total nonperforming portfolio loans and leases and OREO (NPAs)
$853
$725
$643
$743
$688
NPL ratio(h)
0.69
%
0.59
%
0.52
%
0.61
%
0.55
%
NPA ratio(c)
0.71
%
0.62
%
0.55
%
0.64
%
0.59
%
Portfolio loans and leases 30-89 days past due (accrual)
$303
$283
$302
$342
$359
Portfolio loans and leases 90 days past due (accrual)
32
40
33
35
36
30-89 days past due as a % of portfolio loans and leases
0.25
%
0.24
%
0.26
%
0.29
%
0.31
%
90 days past due as a % of portfolio loans and leases
0.03
%
0.03
%
0.03
%
0.03
%
0.03
%
Allowance for loan and lease losses (ALLL), beginning
$2,305
$2,288
$2,318
$2,322
$2,340
Total net losses charged-off
(136)
(142)
(144)
(110)
(96)
Provision for loan and lease losses
183
159
114
106
78
ALLL, ending
$2,352
$2,305
$2,288
$2,318
$2,322
Reserve for unfunded commitments, beginning
$138
$137
$154
$166
$189
(Benefit from) provision for the reserve for unfunded commitments
(4)
1
(17)
(12)
(23)
Reserve for unfunded commitments, ending
$134
$138
$137
$154
$166
Total allowance for credit losses (ACL)
$2,486
$2,443
$2,425
$2,472
$2,488
ACL ratios:
As a % of portfolio loans and leases
2.08
%
2.09
%
2.08
%
2.12
%
2.12
%
As a % of nonperforming portfolio loans and leases
302
%
356
%
400
%
349
%
383
%
As a % of nonperforming portfolio assets
291
%
337
%
377
%
333
%
362
%
ALLL as a % of portfolio loans and leases
1.96
%
1.98
%
1.96
%
1.99
%
1.98
%
Total losses charged-off
$(175)
$(183)
$(182)
$(146)
$(133)
Total recoveries of losses previously charged-off
39
41
38
36
37
Total net losses charged-off
$(136)
$(142)
$(144)
$(110)
$(96)
Net charge-off ratio (NCO ratio)(b)
0.46
%
0.48
%
0.49
%
0.38
%
0.32
%
Commercial NCO ratio
0.32
%
0.40
%
0.45
%
0.19
%
0.13
%
Consumer NCO ratio
0.68
%
0.62
%
0.57
%
0.67
%
0.64
%
The provision for credit losses totaled $179 million in the current quarter. The ACL ratio was 2.08% of total portfolio loans and leases at quarter end, compared with 2.09% for the prior quarter end and 2.12% for the year-ago quarter end. In the current quarter, the ACL was 302% of nonperforming portfolio loans and leases and 291% of nonperforming portfolio assets.
Net charge-offs were $136 million in the current quarter, resulting in an NCO ratio of 0.46%. Compared to the prior quarter, net charge-offs decreased $6 million and the NCO ratio decreased 2 bps. Commercial net charge-offs were $57 million, resulting in a commercial NCO ratio of 0.32%, which decreased 8 bps compared to the prior quarter. Consumer net charge-offs were $79 million, resulting in a consumer NCO ratio of 0.68%, which increased 6 bps compared to the prior quarter.
9
Compared to the year-ago quarter, net charge-offs increased $40 million and the NCO ratio increased 14 bps. The commercial NCO ratio increased 19 bps compared to the prior year, and the consumer NCO ratio increased 4 bps compared to the prior year.
Nonperforming portfolio loans and leases were $823 million in the current quarter, with the resulting NPL ratio of 0.69%. Compared to the prior quarter, NPLs increased $137 million with the NPL ratio increasing 10 bps. Compared to the year-ago quarter, NPLs increased $174 million with the NPL ratio increasing 14 bps.
Nonperforming portfolio assets were $853 million in the current quarter, with the resulting NPA ratio of 0.71%. Compared to the prior quarter, NPAs increased $128 million with the NPA ratio increasing 9 bps. Compared to the year-ago quarter, NPAs increased $165 million with the NPA ratio increasing 12 bps.
Capital Position
As of and For the Three Months Ended
December
September
June
March
December
2024
2024
2024
2024
2023
Capital Position
Average total Bancorp shareholders' equity as a % of average assets
9.40
%
9.47
%
8.80
%
8.78
%
8.04
%
Tangible equity(a)
9.02
%
8.99
%
8.91
%
8.75
%
8.65
%
Tangible common equity (excluding AOCI)(a)
8.03
%
8.00
%
7.92
%
7.77
%
7.67
%
Tangible common equity (including AOCI)(a)
6.02
%
6.52
%
5.80
%
5.67
%
5.73
%
Regulatory Capital Ratios(d)(e)
CET1 capital
10.51
%
10.75
%
10.62
%
10.47
%
10.29
%
Tier 1 risk-based capital
11.80
%
12.07
%
11.93
%
11.77
%
11.59
%
Total risk-based capital
13.80
%
14.13
%
13.95
%
13.81
%
13.72
%
Leverage
9.22
%
9.11
%
9.07
%
8.94
%
8.73
%
CET1 capital ratio of 10.51% decreased 24 bps sequentially due to loan growth during the quarter driving an increase in risk-weighted assets. During the fourth quarter of 2024, Fifth Third repurchased $300 million of its common stock, which reduced shares outstanding by approximately 6.7 million at quarter end.
10
Tax Rate
The effective tax rate for the quarter was 18.8% compared with 21.3% in the prior quarter and 18.4% in the year-ago quarter. The tax rate in the fourth quarter reflects a favorable adjustment of $15 million associated with statutes of limitations expiration.
Conference Call
Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Us” then “Investor Relations”). Those unable to listen to the live webcast may access a webcast replay through the Fifth Third Investor Relations website at the same web address, which will be available for 30 days.
Corporate Profile
Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people, and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere's World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.
Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.” Investor information and press releases can be viewed at www.53.com.
Earnings Release End Notes
(a)Non-GAAP measure; see discussion of non-GAAP reconciliation beginning on page 27.
(b)Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis.
(c)Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.
(d)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(e)Current period regulatory capital ratios are estimated.
(f)Assumes a 23% tax rate.
(g)Includes commercial customer Eurodollar sweep balances for which the Bank pays rates comparable to other commercial deposit accounts.
(h)Nonperforming portfolio loans and leases as a percent of portfolio loans and leases.
(i)During the fourth quarter of 2024, certain noninterest income line items were reclassified to better align disclosures to business activities. These reclassifications resulted in three new line items to describe noninterest income, including commercial payments revenue, consumer banking revenue and capital markets fees. Commercial banking revenue and other noninterest income were also affected by the reclassifications. These reclassifications did not affect total noninterest income and were retrospectively applied to all prior periods presented.
11
FORWARD-LOOKING STATEMENTS
This release contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements other than statements of historical fact are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “potential,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs.
You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K as updated by our filings with the U.S. Securities and Exchange Commission (“SEC”).
There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) deteriorating credit quality; (2) loan concentration by location or industry of borrowers or collateral; (3) problems encountered by other financial institutions; (4) inadequate sources of funding or liquidity; (5) unfavorable actions of rating agencies; (6) inability to maintain or grow deposits; (7) limitations on the ability to receive dividends from subsidiaries; (8) cyber-security risks; (9) Fifth Third’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (10) failures by third-party service providers; (11) inability to manage strategic initiatives and/or organizational changes; (12) inability to implement technology system enhancements; (13) failure of internal controls and other risk management programs; (14) losses related to fraud, theft, misappropriation or violence; (15) inability to attract and retain skilled personnel; (16) adverse impacts of government regulation; (17) governmental or regulatory changes or other actions; (18) failures to meet applicable capital requirements; (19) regulatory objections to Fifth Third’s capital plan; (20) regulation of Fifth Third’s derivatives activities; (21) deposit insurance premiums; (22) assessments for the orderly liquidation fund; (23) weakness in the national or local economies; (24) global political and economic uncertainty or negative actions; (25) changes in interest rates and the effects of inflation; (26) changes and trends in capital markets; (27) fluctuation of Fifth Third’s stock price; (28) volatility in mortgage banking revenue; (29) litigation, investigations, and enforcement proceedings by governmental authorities; (30) breaches of contractual covenants, representations and warranties; (31) competition and changes in the financial services industry; (32) potential impacts of the adoption of real-time payment networks; (33) changing retail distribution strategies, customer preferences and behavior; (34) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (35) potential dilution from future acquisitions; (36) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (37) results of investments or acquired entities; (38) changes in accounting standards or interpretation or declines in the value of Fifth Third’s goodwill or other intangible assets; (39) inaccuracies or other failures from the use of models; (40) effects of critical accounting policies and judgments or the use of inaccurate estimates; (41) weather-related events, other natural disasters, or health emergencies (including pandemics); (42) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity; (43) changes in law or requirements imposed by Fifth Third’s regulators impacting our capital actions, including dividend payments and stock repurchases; and (44) Fifth Third's ability to meet its environmental and/or social targets, goals and commitments.
You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.
# # #
12
Quarterly Financial Review for December 31, 2024
Table of Contents
Financial Highlights
14-15
Consolidated Statements of Income
16-17
Consolidated Balance Sheets
18-19
Consolidated Statements of Changes in Equity
20
Average Balance Sheets and Yield/Rate Analysis
21-22
Summary of Loans and Leases
23
Regulatory Capital
24
Summary of Credit Loss Experience
25
Asset Quality
26
Non-GAAP Reconciliation
27-29
Segment Presentation
30
13
Fifth Third Bancorp and Subsidiaries
Financial Highlights
As of and For the Three Months Ended
% / bps
% / bps
$ in millions, except per share data
Change
Year to Date
Change
(unaudited)
December
September
December
December
December
2024
2024
2023
Seq
Yr/Yr
2024
2023
Yr/Yr
Income Statement Data
Net interest income
$1,437
$1,421
$1,416
1%
1%
$5,630
$5,827
(3%)
Net interest income (FTE)(a)
1,443
1,427
1,423
1%
1%
5,654
5,852
(3%)
Noninterest income
732
711
744
3%
(2%)
2,849
2,881
(1%)
Total revenue (FTE)(a)
2,175
2,138
2,167
2%
—
8,503
8,733
(3%)
Provision for credit losses
179
160
55
12%
225%
530
515
3%
Noninterest expense
1,226
1,244
1,455
(1%)
(16%)
5,033
5,205
(3%)
Net income
620
573
530
8%
17%
2,314
2,349
(1%)
Net income available to common shareholders
582
532
492
9%
18%
2,155
2,212
(3%)
Earnings Per Share Data
Net income allocated to common shareholders
$582
$532
$492
9%
18%
$2,155
$2,212
(3%)
Average common shares outstanding (in thousands):
Basic
675,307
680,895
684,413
(1%)
(1%)
682,161
684,172
—
Diluted
681,456
686,109
687,729
(1%)
(1%)
687,301
687,678
—
Earnings per share, basic
$0.86
$0.78
$0.72
10%
19%
$3.16
$3.23
(2%)
Earnings per share, diluted
0.85
0.78
0.72
9%
18%
3.14
3.22
(2%)
Common Share Data
Cash dividends per common share
$0.37
$0.37
$0.35
—
6%
$1.44
$1.36
6%
Book value per share
26.17
27.60
25.04
(5%)
5%
26.17
25.04
5%
Market value per share
42.28
42.84
34.49
(1%)
23%
42.28
34.49
23%
Common shares outstanding (in thousands)
669,854
676,269
681,125
(1%)
(2%)
669,854
681,125
(2%)
Market capitalization
$28,321
$28,971
$23,492
(2%)
21%
$28,321
$23,492
21%
Financial Ratios
Return on average assets
1.17
%
1.06
%
0.98
%
11
19
1.09
%
1.13
%
(4)
Return on average common equity
13.0
%
11.7
%
12.9
%
130
10
12.5
%
14.2
%
(170)
Return on average tangible common equity(a)
18.4
%
16.3
%
19.8
%
210
(140)
17.8
%
21.3
%
(350)
Noninterest income as a percent of total revenue(a)
34
%
33
%
34
%
100
—
34
%
33
%
100
Dividend payout
43.0
%
47.4
%
48.6
%
(440)
(560)
45.6
%
42.1
%
350
Average total Bancorp shareholders’ equity as a percent of average assets
9.40
%
9.47
%
8.04
%
(7)
136
9.12
%
8.49
%
63
Tangible common equity(a)
8.03
%
8.00
%
7.67
%
3
36
8.03
%
7.67
%
36
Net interest margin (FTE)(a)
2.97
%
2.90
%
2.85
%
7
12
2.90
%
3.05
%
(15)
Efficiency (FTE)(a)
56.4
%
58.2
%
67.2
%
(180)
NM
59.2
%
59.6
%
(40)
Effective tax rate
18.8
%
21.3
%
18.4
%
(250)
40
20.6
%
21.4
%
(80)
Credit Quality
Net losses charged-off
$136
$142
$96
(4
%)
42
%
$532
$388
37
%
Net losses charged-off as a percent of average portfolio loans and leases (annualized)
0.46
%
0.48
%
0.32
%
(2)
14
0.45
%
0.32
%
13
ALLL as a percent of portfolio loans and leases
1.96
%
1.98
%
1.98
%
(2)
(2)
1.96
%
1.98
%
(2)
ACL as a percent of portfolio loans and leases(g)
2.08
%
2.09
%
2.12
%
(1)
(4)
2.08
%
2.12
%
(4)
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO
0.71
%
0.62
%
0.59
%
9
12
0.71
%
0.59
%
12
Average Balances
Loans and leases, including held for sale
$118,492
$117,415
$119,309
1%
(1%)
$117,724
$122,282
(4%)
Securities and other short-term investments
75,021
78,421
78,857
(4%)
(5%)
77,076
69,461
11%
Assets
211,709
213,838
214,057
(1%)
(1%)
212,806
208,426
2%
Transaction deposits(b)
154,114
153,154
153,232
1%
1%
152,830
150,546
2%
Core deposits(c)
164,706
163,697
163,788
1%
1%
163,367
158,844
3%
Wholesale funding(d)
20,202
23,415
26,115
(14%)
(23%)
23,135
24,943
(7%)
Bancorp shareholders' equity
19,893
20,251
17,201
(2%)
16%
19,398
17,704
10%
Regulatory Capital Ratios(e)(f)
CET1 capital
10.51
%
10.75
%
10.29
%
(24)
22
10.51
%
10.29
%
22
Tier 1 risk-based capital
11.80
%
12.07
%
11.59
%
(27)
21
11.80
%
11.59
%
21
Total risk-based capital
13.80
%
14.13
%
13.72
%
(33)
8
13.80
%
13.72
%
8
Leverage
9.22
%
9.11
%
8.73
%
11
49
9.22
%
8.73
%
49
Additional Metrics
Banking centers
1,089
1,072
1,088
2%
—
1,089
1,088
—
ATMs
2,080
2,060
2,104
1%
(1%)
2,080
2,104
(1%)
Full-time equivalent employees
18,616
18,579
18,724
—
(1%)
18,616
18,724
(1%)
Assets under care ($ in billions)(h)
$634
$635
$574
—
10%
$634
$574
10%
Assets under management ($ in billions)(h)
69
69
59
—
17%
69
59
17%
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)Assets under management and assets under care include trust and brokerage assets.
14
Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share data
As of and For the Three Months Ended
(unaudited)
December
September
June
March
December
2024
2024
2024
2024
2023
Income Statement Data
Net interest income
$1,437
$1,421
$1,387
$1,384
$1,416
Net interest income (FTE)(a)
1,443
1,427
1,393
1,390
1,423
Noninterest income
732
711
695
710
744
Total revenue (FTE)(a)
2,175
2,138
2,088
2,100
2,167
Provision for credit losses
179
160
97
94
55
Noninterest expense
1,226
1,244
1,221
1,342
1,455
Net income
620
573
601
520
530
Net income available to common shareholders
582
532
561
480
492
Earnings Per Share Data
Net income allocated to common shareholders
$582
$532
$561
$480
$492
Average common shares outstanding (in thousands):
Basic
675,307
680,895
686,781
685,750
684,413
Diluted
681,456
686,109
691,083
690,634
687,729
Earnings per share, basic
$0.86
$0.78
$0.82
$0.70
$0.72
Earnings per share, diluted
0.85
0.78
0.81
0.70
0.72
Common Share Data
Cash dividends per common share
$0.37
$0.37
$0.35
$0.35
$0.35
Book value per share
26.17
27.60
25.13
24.72
25.04
Market value per share
42.28
42.84
36.49
37.21
34.49
Common shares outstanding (in thousands)
669,854
676,269
680,789
683,812
681,125
Market capitalization
$28,321
$28,971
$24,842
$25,445
$23,492
Financial Ratios
Return on average assets
1.17
%
1.06
%
1.14
%
0.98
%
0.98
%
Return on average common equity
13.0
%
11.7
%
13.6
%
11.6
%
12.9
%
Return on average tangible common equity(a)
18.4
%
16.3
%
19.8
%
17.0
%
19.8
%
Noninterest income as a percent of total revenue(a)
34
%
33
%
33
%
34
%
34
%
Dividend payout
43.0
%
47.4
%
42.7
%
50.0
%
48.6
%
Average total Bancorp shareholders’ equity as a percent of average assets
9.40
%
9.47
%
8.80
%
8.78
%
8.04
%
Tangible common equity(a)
8.03
%
8.00
%
7.92
%
7.77
%
7.67
%
Net interest margin (FTE)(a)
2.97
%
2.90
%
2.88
%
2.86
%
2.85
%
Efficiency (FTE)(a)
56.4
%
58.2
%
58.5
%
63.9
%
67.2
%
Effective tax rate
18.8
%
21.3
%
21.3
%
21.1
%
18.4
%
Credit Quality
Net losses charged-off
$136
$142
$144
$110
$96
Net losses charged-off as a percent of average portfolio loans and leases (annualized)
0.46
%
0.48
%
0.49
%
0.38
%
0.32
%
ALLL as a percent of portfolio loans and leases
1.96
%
1.98
%
1.96
%
1.99
%
1.98
%
ACL as a percent of portfolio loans and leases(g)
2.08
%
2.09
%
2.08
%
2.12
%
2.12
%
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO
0.71
%
0.62
%
0.55
%
0.64
%
0.59
%
Average Balances
Loans and leases, including held for sale
$118,492
$117,415
$117,283
$117,699
$119,309
Securities and other short-term investments
75,021
78,421
77,216
77,650
78,857
Assets
211,709
213,838
212,475
213,203
214,057
Transaction deposits(b)
154,114
153,154
151,680
152,357
153,232
Core deposits(c)
164,706
163,697
162,447
162,601
163,788
Wholesale funding(d)
20,202
23,415
24,180
24,771
26,115
Bancorp shareholders’ equity
19,893
20,251
18,707
18,727
17,201
Regulatory Capital Ratios(e)(f)
CET1 capital
10.51
%
10.75
%
10.62
%
10.47
%
10.29
%
Tier 1 risk-based capital
11.80
%
12.07
%
11.93
%
11.77
%
11.59
%
Total risk-based capital
13.80
%
14.13
%
13.95
%
13.81
%
13.72
%
Leverage
9.22
%
9.11
%
9.07
%
8.94
%
8.73
%
Additional Metrics
Banking centers
1,089
1,072
1,070
1,070
1,088
ATMs
2,080
2,060
2,067
2,082
2,104
Full-time equivalent employees
18,616
18,579
18,607
18,657
18,724
Assets under care ($ in billions)(h)
$634
$635
$631
$634
$574
Assets under management ($ in billions)(h)
69
69
65
62
59
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)Assets under management and assets under care include trust and brokerage assets.
15
Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millions
For the Three Months Ended
% Change
Year to Date
% Change
(unaudited)
December
September
December
December
December
2024
2024
2023
Seq
Yr/Yr
2024
2023
Yr/Yr
Interest Income
Interest and fees on loans and leases
$1,836
$1,910
$1,889
(4%)
(3%)
$7,477
$7,334
2%
Interest on securities
464
461
451
1%
3%
1,839
1,770
4%
Interest on other short-term investments
228
298
308
(23%)
(26%)
1,110
656
69%
Total interest income
2,528
2,669
2,648
(5%)
(5%)
10,426
9,760
7%
Interest Expense
Interest on deposits
856
968
952
(12%)
(10%)
3,736
2,929
28%
Interest on federal funds purchased
3
2
3
50%
—
11
15
(27%)
Interest on other short-term borrowings
22
40
49
(45%)
(55%)
157
247
(36%)
Interest on long-term debt
210
238
228
(12%)
(8%)
892
742
20%
Total interest expense
1,091
1,248
1,232
(13%)
(11%)
4,796
3,933
22%
Net Interest Income
1,437
1,421
1,416
1%
1%
5,630
5,827
(3%)
Provision for credit losses
179
160
55
12%
225%
530
515
3%
Net Interest Income After Provision for Credit Losses
1,258
1,261
1,361
—
(8%)
5,100
5,312
(4%)
Noninterest Income(a)
Wealth and asset management revenue
163
163
147
—
11%
647
581
11%
Commercial payments revenue
155
154
145
1%
7%
608
564
8%
Consumer banking revenue
137
143
135
(4%)
1%
555
546
2%
Capital markets fees
123
111
106
11%
16%
424
422
—
Commercial banking revenue
109
93
101
17%
8%
377
409
(8%)
Mortgage banking net revenue
57
50
66
14%
(14%)
211
250
(16%)
Other noninterest income (loss)
(4)
(13)
28
NM
NM
12
91
(87%)
Securities gains (losses), net
(8)
10
16
NM
NM
15
18
(17%)
Total noninterest income
732
711
744
3%
(2%)
2,849
2,881
(1%)
Noninterest Expense(b)
Compensation and benefits
665
690
659
(4%)
1%
2,763
2,694
3%
Technology and communications
123
121
117
2%
5%
474
464
2%
Net occupancy expense
88
81
83
9%
6%
339
331
2%
Equipment expense
39
38
37
3%
5%
153
148
3%
Loan and lease expense
36
34
34
6%
6%
132
133
(1%)
Marketing expense
23
26
30
(12%)
(23%)
115
126
(9%)
Card and processing expense
21
22
21
(5%)
—
84
84
—
Other noninterest expense
231
232
474
—
(51%)
973
1,225
(21%)
Total noninterest expense
1,226
1,244
1,455
(1%)
(16%)
5,033
5,205
(3%)
Income Before Income Taxes
764
728
650
5%
18%
2,916
2,988
(2%)
Applicable income tax expense
144
155
120
(7%)
20%
602
639
(6%)
Net Income
620
573
530
8%
17%
2,314
2,349
(1%)
Dividends on preferred stock
38
41
38
(7%)
—
159
137
16%
Net Income Available to Common Shareholders
$582
$532
$492
9%
18%
$2,155
$2,212
(3%)
(a)During the fourth quarter of 2024, certain noninterest income line items were reclassified to better align disclosures to business activities. These reclassifications resulted in three new line items to describe noninterest income, including commercial payments revenue, consumer banking revenue and capital markets fees. Commercial banking revenue and other noninterest income were also affected by the reclassifications. These reclassifications did not affect total noninterest income and were retrospectively applied to all prior periods presented.
(b)During the fourth quarter of 2024, certain noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications resulted in the separate disclosure of loan and lease expense, which was previously a component of other noninterest expense. These reclassifications did not affect total noninterest expense and were retrospectively applied to all prior periods presented.
16
Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millions
For the Three Months Ended
(unaudited)
December
September
June
March
December
2024
2024
2024
2024
2023
Interest Income
Interest and fees on loans and leases
$1,836
$1,910
$1,871
$1,859
$1,889
Interest on securities
464
461
458
455
451
Interest on other short-term investments
228
298
291
294
308
Total interest income
2,528
2,669
2,620
2,608
2,648
Interest Expense
Interest on deposits
856
968
958
954
952
Interest on federal funds purchased
3
2
3
3
3
Interest on other short-term borrowings
22
40
48
47
49
Interest on long-term debt
210
238
224
220
228
Total interest expense
1,091
1,248
1,233
1,224
1,232
Net Interest Income
1,437
1,421
1,387
1,384
1,416
Provision for credit losses
179
160
97
94
55
Net Interest Income After Provision for Credit Losses
1,258
1,261
1,290
1,290
1,361
Noninterest Income(a)
Wealth and asset management revenue
163
163
159
161
147
Commercial payments revenue
155
154
154
145
145
Consumer banking revenue
137
143
139
135
135
Capital markets fees
123
111
93
97
106
Commercial banking revenue
109
93
90
85
101
Mortgage banking net revenue
57
50
50
54
66
Other noninterest (loss) income
(4)
(13)
7
23
28
Securities (losses) gains, net
(8)
10
3
10
16
Total noninterest income
732
711
695
710
744
Noninterest Expense(b)
Compensation and benefits
665
690
656
753
659
Technology and communications
123
121
114
117
117
Net occupancy expense
88
81
83
87
83
Equipment expense
39
38
38
37
37
Loan and lease expense
36
34
33
29
34
Marketing expense
23
26
34
32
30
Card and processing expense
21
22
21
20
21
Other noninterest expense
231
232
242
267
474
Total noninterest expense
1,226
1,244
1,221
1,342
1,455
Income Before Income Taxes
764
728
764
658
650
Applicable income tax expense
144
155
163
138
120
Net Income
620
573
601
520
530
Dividends on preferred stock
38
41
40
40
38
Net Income Available to Common Shareholders
$582
$532
$561
$480
$492
(a)During the fourth quarter of 2024, certain noninterest income line items were reclassified to better align disclosures to business activities. These reclassifications resulted in three new line items to describe noninterest income, including commercial payments revenue, consumer banking revenue and capital markets fees. Commercial banking revenue and other noninterest income were also affected by the reclassifications. These reclassifications did not affect total noninterest income and were retrospectively applied to all prior periods presented.
(b)During the fourth quarter of 2024, certain noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications resulted in the separate disclosure of loan and lease expense, which was previously a component of other noninterest expense. These reclassifications did not affect total noninterest expense and were retrospectively applied to all prior periods presented.
17
Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data
As of
% Change
(unaudited)
December
September
December
2024
2024
2023
Seq
Yr/Yr
Assets
Cash and due from banks
$3,014
$3,215
$3,142
(6%)
(4%)
Other short-term investments
17,120
21,729
22,082
(21%)
(22%)
Available-for-sale debt and other securities(a)
39,547
40,396
50,419
(2%)
(22%)
Held-to-maturity securities(b)
11,278
11,358
2
(1%)
NM
Trading debt securities
1,185
1,176
899
1%
32%
Equity securities
341
428
613
(20%)
(44%)
Loans and leases held for sale
640
612
378
5%
69%
Portfolio loans and leases:
Commercial and industrial loans
52,271
50,916
53,270
3%
(2%)
Commercial mortgage loans
12,246
11,394
11,276
7%
9%
Commercial construction loans
5,588
5,947
5,621
(6%)
(1%)
Commercial leases
3,188
2,873
2,579
11%
24%
Total commercial loans and leases
73,293
71,130
72,746
3%
1%
Residential mortgage loans
17,543
17,166
17,026
2%
3%
Home equity
4,188
4,074
3,916
3%
7%
Indirect secured consumer loans
16,313
15,942
14,965
2%
9%
Credit card
1,734
1,703
1,865
2%
(7%)
Solar energy installation loans
4,202
4,078
3,728
3%
13%
Other consumer loans
2,518
2,575
2,988
(2%)
(16%)
Total consumer loans
46,498
45,538
44,488
2%
5%
Portfolio loans and leases
119,791
116,668
117,234
3%
2%
Allowance for loan and lease losses
(2,352)
(2,305)
(2,322)
2%
1%
Portfolio loans and leases, net
117,439
114,363
114,912
3%
2%
Bank premises and equipment
2,475
2,425
2,349
2%
5%
Operating lease equipment
319
357
459
(11%)
(31%)
Goodwill
4,918
4,918
4,919
—
—
Intangible assets
90
98
125
(8%)
(28%)
Servicing rights
1,704
1,656
1,737
3%
(2%)
Other assets
12,857
11,587
12,538
11%
3%
Total Assets
$212,927
$214,318
$214,574
(1%)
(1%)
Liabilities
Deposits:
Demand
$41,038
$41,393
$43,146
(1%)
(5%)
Interest checking
59,159
58,572
57,257
1%
3%
Savings
17,147
16,990
18,215
1%
(6%)
Money market
36,605
37,482
34,374
(2%)
6%
Foreign office
147
155
162
(5%)
(9%)
CDs $250,000 or less
10,798
10,480
10,552
3%
2%
CDs over $250,000
2,358
3,268
5,206
(28%)
(55%)
Total deposits
167,252
168,340
168,912
(1%)
(1%)
Federal funds purchased
204
169
193
21%
6%
Other short-term borrowings
4,450
1,424
2,861
213%
56%
Accrued taxes, interest and expenses
2,137
2,034
2,195
5%
(3%)
Other liabilities
4,902
4,471
4,861
10%
1%
Long-term debt
14,337
17,096
16,380
(16%)
(12%)
Total Liabilities
193,282
193,534
195,402
—
(1%)
Equity
Common stock(c)
2,051
2,051
2,051
—
—
Preferred stock
2,116
2,116
2,116
—
—
Capital surplus
3,804
3,784
3,757
1%
1%
Retained earnings
24,150
23,820
22,997
1%
5%
Accumulated other comprehensive loss
(4,636)
(3,446)
(4,487)
35%
3%
Treasury stock
(7,840)
(7,541)
(7,262)
4%
8%
Total Equity
19,645
20,784
19,172
(5%)
2%
Total Liabilities and Equity
$212,927
$214,318
$214,574
(1%)
(1%)
(a) Amortized cost
$43,878
$43,754
$55,789
—
(21%)
(b) Market values
10,965
11,554
2
(5
%)
NM
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized
2,000,000
2,000,000
2,000,000
—
—
Outstanding, excluding treasury
669,854
676,269
681,125
—
—
Treasury
254,039
247,624
242,768
3
%
—
18
Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data
As of
(unaudited)
December
September
June
March
December
2024
2024
2024
2024
2023
Assets
Cash and due from banks
$3,014
$3,215
$2,837
$2,796
$3,142
Other short-term investments
17,120
21,729
21,085
22,840
22,082
Available-for-sale debt and other securities(a)
39,547
40,396
38,986
38,791
50,419
Held-to-maturity securities(b)
11,278
11,358
11,443
11,520
2
Trading debt securities
1,185
1,176
1,132
1,151
899
Equity securities
341
428
476
380
613
Loans and leases held for sale
640
612
537
339
378
Portfolio loans and leases:
Commercial and industrial loans
52,271
50,916
51,840
52,209
53,270
Commercial mortgage loans
12,246
11,394
11,429
11,346
11,276
Commercial construction loans
5,588
5,947
5,806
5,789
5,621
Commercial leases
3,188
2,873
2,708
2,572
2,579
Total commercial loans and leases
73,293
71,130
71,783
71,916
72,746
Residential mortgage loans
17,543
17,166
17,040
16,995
17,026
Home equity
4,188
4,074
3,969
3,883
3,916
Indirect secured consumer loans
16,313
15,942
15,442
15,306
14,965
Credit card
1,734
1,703
1,733
1,737
1,865
Solar energy installation loans
4,202
4,078
3,951
3,871
3,728
Other consumer loans
2,518
2,575
2,661
2,777
2,988
Total consumer loans
46,498
45,538
44,796
44,569
44,488
Portfolio loans and leases
119,791
116,668
116,579
116,485
117,234
Allowance for loan and lease losses
(2,352)
(2,305)
(2,288)
(2,318)
(2,322)
Portfolio loans and leases, net
117,439
114,363
114,291
114,167
114,912
Bank premises and equipment
2,475
2,425
2,389
2,376
2,349
Operating lease equipment
319
357
392
427
459
Goodwill
4,918
4,918
4,918
4,918
4,919
Intangible assets
90
98
107
115
125
Servicing rights
1,704
1,656
1,731
1,756
1,737
Other assets
12,857
11,587
12,938
12,930
12,538
Total Assets
$212,927
$214,318
$213,262
$214,506
$214,574
Liabilities
Deposits:
Demand
$41,038
$41,393
$40,617
$41,849
$43,146
Interest checking
59,159
58,572
57,390
58,809
57,257
Savings
17,147
16,990
17,419
18,229
18,215
Money market
36,605
37,482
36,259
35,025
34,374
Foreign office
147
155
119
129
162
CDs $250,000 or less
10,798
10,480
10,882
10,337
10,552
CDs over $250,000
2,358
3,268
4,082
5,209
5,206
Total deposits
167,252
168,340
166,768
169,587
168,912
Federal funds purchased
204
169
194
247
193
Other short-term borrowings
4,450
1,424
3,370
2,866
2,861
Accrued taxes, interest and expenses
2,137
2,034
2,040
1,965
2,195
Other liabilities
4,902
4,471
5,371
5,379
4,861
Long-term debt
14,337
17,096
16,293
15,444
16,380
Total Liabilities
193,282
193,534
194,036
195,488
195,402
Equity
Common stock(c)
2,051
2,051
2,051
2,051
2,051
Preferred stock
2,116
2,116
2,116
2,116
2,116
Capital surplus
3,804
3,784
3,764
3,742
3,757
Retained earnings
24,150
23,820
23,542
23,224
22,997
Accumulated other comprehensive loss
(4,636)
(3,446)
(4,901)
(4,888)
(4,487)
Treasury stock
(7,840)
(7,541)
(7,346)
(7,227)
(7,262)
Total Equity
19,645
20,784
19,226
19,018
19,172
Total Liabilities and Equity
$212,927
$214,318
$213,262
$214,506
$214,574
(a) Amortized cost
$43,878
$43,754
$43,596
$43,400
$55,789
(b) Market values
10,965
11,554
11,187
11,341
2
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
Outstanding, excluding treasury
669,854
676,269
680,789
683,812
681,125
Treasury
254,039
247,624
243,103
240,080
242,768
19
Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months Ended
Year to Date
December
December
December
December
2024
2023
2024
2023
Total Equity, Beginning
$20,784
$16,544
$19,172
$17,327
Impact of cumulative effect of change in accounting principle
—
—
(10)
37
Net income
620
530
2,314
2,349
Other comprehensive income (loss), net of tax:
Change in unrealized losses:
Available-for-sale debt securities
(747)
1,746
29
495
Qualifying cash flow hedges
(468)
605
(282)
126
Amortization of unrealized losses on securities transferred to held-to-maturity
25
—
101
—
Change in accumulated other comprehensive income related to employee benefit plans
—
1
1
2
Other
—
—
2
—
Comprehensive income (loss)
(570)
2,882
2,165
2,972
Cash dividends declared:
Common stock
(252)
(242)
(992)
(941)
Preferred stock
(38)
(38)
(159)
(137)
Impact of stock transactions under stock compensation plans, net
24
26
99
115
Shares acquired for treasury
(303)
—
(630)
(201)
Total Equity, Ending
$19,645
$19,172
$19,645
$19,172
20
Fifth Third Bancorp and Subsidiaries
Average Balance Sheets and Yield/Rate Analysis
For the Three Months Ended
$ in millions
December
September
December
(unaudited)
2024
2024
2023
Average
Average
Average
Average
Average
Average
Balance
Yield/Rate
Balance
Yield/Rate
Balance
Yield/Rate
Assets
Interest-earning assets:
Loans and leases:
Commercial and industrial loans(a)
$51,575
6.65
%
$51,630
7.15
%
$54,688
7.10
%
Commercial mortgage loans(a)
11,822
5.76
%
11,488
6.26
%
11,338
6.26
%
Commercial construction loans(a)
5,711
6.58
%
5,982
7.14
%
5,744
6.96
%
Commercial leases(a)
2,902
4.62
%
2,686
4.53
%
2,535
3.76
%
Total commercial loans and leases
72,010
6.42
%
71,786
6.91
%
74,305
6.85
%
Residential mortgage loans
17,906
3.80
%
17,604
3.71
%
17,508
3.51
%
Home equity
4,125
7.95
%
4,018
8.40
%
3,905
8.28
%
Indirect secured consumer loans
16,100
5.53
%
15,680
5.42
%
15,129
4.69
%
Credit card
1,668
14.24
%
1,708
14.00
%
1,829
13.81
%
Solar energy installation loans
4,137
7.91
%
3,990
8.12
%
3,630
7.00
%
Other consumer loans
2,546
9.28
%
2,629
9.37
%
3,003
8.99
%
Total consumer loans
46,482
5.81
%
45,629
5.81
%
45,004
5.38
%
Total loans and leases
118,492
6.18
%
117,415
6.48
%
119,309
6.30
%
Securities:
Taxable securities
55,319
3.27
%
55,329
3.25
%
55,884
3.13
%
Tax exempt securities(a)
1,383
3.18
%
1,378
3.30
%
1,467
3.29
%
Other short-term investments
18,319
4.94
%
21,714
5.47
%
21,506
5.68
%
Total interest-earning assets
193,513
5.21
%
195,836
5.43
%
198,166
5.31
%
Cash and due from banks
2,664
2,664
2,759
Other assets
17,838
17,626
15,471
Allowance for loan and lease losses
(2,306)
(2,288)
(2,339)
Total Assets
$211,709
$213,838
$214,057
Liabilities
Interest-bearing liabilities:
Interest checking deposits
$59,277
2.98
%
$58,441
3.38
%
$57,114
3.41
%
Savings deposits
17,257
0.64
%
17,272
0.71
%
18,252
0.63
%
Money market deposits
37,279
2.65
%
37,257
3.06
%
34,292
2.85
%
Foreign office deposits
164
1.74
%
164
1.97
%
178
2.32
%
CDs $250,000 or less
10,592
3.95
%
10,543
4.07
%
10,556
4.14
%
Total interest-bearing core deposits
124,569
2.64
%
123,677
2.97
%
120,392
2.89
%
CDs over $250,000
2,531
4.83
%
3,499
5.08
%
5,659
5.21
%
Total interest-bearing deposits
127,100
2.68
%
127,176
3.03
%
126,051
3.00
%
Federal funds purchased
223
4.73
%
176
5.34
%
191
5.38
%
Securities sold under repurchase agreements
313
1.15
%
396
2.36
%
350
1.47
%
FHLB advances
1,567
4.87
%
2,576
5.59
%
3,293
5.66
%
Derivative collateral and other secured borrowings
76
7.68
%
52
14.76
%
34
9.77
%
Long-term debt
15,492
5.40
%
16,716
5.65
%
16,588
5.47
%
Total interest-bearing liabilities
144,771
3.00
%
147,092
3.38
%
146,507
3.34
%
Demand deposits
40,137
40,020
43,396
Other liabilities
6,908
6,475
6,953
Total Liabilities
191,816
193,587
196,856
Total Equity
19,893
20,251
17,201
Total Liabilities and Equity
$211,709
$213,838
$214,057
Ratios:
Net interest margin (FTE)(b)
2.97
%
2.90
%
2.85
%
Net interest rate spread (FTE)(b)
2.21
%
2.05
%
1.97
%
Interest-bearing liabilities to interest-earning assets
74.81
%
75.11
%
73.93
%
(a) Average Yield/Rate of these assets are presented on an FTE basis.
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
21
Fifth Third Bancorp and Subsidiaries
Average Balance Sheets and Yield/Rate Analysis
Year to Date
$ in millions
December
December
(unaudited)
2024
2023
Average
Average
Average
Average
Balance
Yield/Rate
Balance
Yield/Rate
Assets
Interest-earning assets:
Loans and leases:
Commercial and industrial loans(a)
$52,210
7.00
%
$57,005
6.82
%
Commercial mortgage loans(a)
11,501
6.14
%
11,262
5.97
%
Commercial construction loans(a)
5,835
7.02
%
5,582
6.80
%
Commercial leases(a)
2,677
4.44
%
2,629
3.63
%
Total commercial loans and leases
72,223
6.77
%
76,478
6.58
%
Residential mortgage loans
17,537
3.68
%
18,002
3.45
%
Home equity
4,002
8.25
%
3,936
7.58
%
Indirect secured consumer loans
15,583
5.27
%
15,944
4.31
%
Credit card
1,719
13.70
%
1,800
14.00
%
Solar energy installation loans
3,960
8.04
%
2,958
6.09
%
Other consumer loans
2,700
9.19
%
3,164
8.74
%
Total consumer loans
45,501
5.71
%
45,804
5.05
%
Total loans and leases
117,724
6.36
%
122,282
6.01
%
Securities:
Taxable securities
55,227
3.26
%
56,066
3.09
%
Tax exempt securities(a)
1,392
3.25
%
1,461
3.20
%
Other short-term investments
20,457
5.43
%
11,934
5.50
%
Total interest-earning assets
194,800
5.36
%
191,743
5.10
%
Cash and due from banks
2,677
2,772
Other assets
17,637
16,169
Allowance for loan and lease losses
(2,308)
(2,258)
Total Assets
$212,806
$208,426
Liabilities
Interest-bearing liabilities:
Interest checking deposits
$58,599
3.28
%
$52,378
2.96
%
Savings deposits
17,594
0.68
%
20,872
0.71
%
Money market deposits
36,165
2.90
%
30,943
2.15
%
Foreign office deposits
158
2.05
%
158
1.82
%
CDs $250,000 or less
10,537
4.10
%
8,298
3.71
%
Total interest-bearing core deposits
123,053
2.87
%
112,649
2.38
%
CDs over $250,000
4,069
5.11
%
5,332
4.74
%
Total interest-bearing deposits
127,122
2.94
%
117,981
2.48
%
Federal funds purchased
207
5.21
%
307
4.96
%
Securities sold under repurchase agreements
362
1.86
%
348
1.22
%
FHLB advances
2,602
5.56
%
4,596
5.11
%
Derivative collateral and other secured borrowings
60
8.92
%
100
8.24
%
Long-term debt
15,835
5.63
%
14,260
5.20
%
Total interest-bearing liabilities
146,188
3.28
%
137,592
2.86
%
Demand deposits
40,314
46,195
Other liabilities
6,906
6,935
Total Liabilities
193,408
190,722
Total Equity
19,398
17,704
Total Liabilities and Equity
$212,806
$208,426
Ratios:
Net interest margin (FTE)(b)
2.90
%
3.05
%
Net interest rate spread (FTE)(b)
2.08
%
2.24
%
Interest-bearing liabilities to interest-earning assets
75.05
%
71.76
%
(a) Average Yield/Rate of these assets are presented on an FTE basis.
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
22
Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millions
For the Three Months Ended
(unaudited)
December
September
June
March
December
2024
2024
2024
2024
2023
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans
$51,567
$51,615
$52,357
$53,183
$54,633
Commercial mortgage loans
11,792
11,488
11,352
11,339
11,338
Commercial construction loans
5,702
5,981
5,917
5,732
5,727
Commercial leases
2,902
2,685
2,575
2,542
2,535
Total commercial loans and leases
71,963
71,769
72,201
72,796
74,233
Consumer loans:
Residential mortgage loans
17,322
17,031
17,004
16,977
17,129
Home equity
4,125
4,018
3,929
3,933
3,905
Indirect secured consumer loans
16,100
15,680
15,373
15,172
15,129
Credit card
1,668
1,708
1,728
1,773
1,829
Solar energy installation loans
4,137
3,990
3,916
3,794
3,630
Other consumer loans
2,545
2,630
2,740
2,889
3,003
Total consumer loans
45,897
45,057
44,690
44,538
44,625
Total average portfolio loans and leases
$117,860
$116,826
$116,891
$117,334
$118,858
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale
$48
$16
$33
$74
$72
Consumer loans held for sale
584
573
359
291
379
Average loans and leases held for sale
$632
$589
$392
$365
$451
End of Period Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans
$52,271
$50,916
$51,840
$52,209
$53,270
Commercial mortgage loans
12,246
11,394
11,429
11,346
11,276
Commercial construction loans
5,588
5,947
5,806
5,789
5,621
Commercial leases
3,188
2,873
2,708
2,572
2,579
Total commercial loans and leases
73,293
71,130
71,783
71,916
72,746
Consumer loans:
Residential mortgage loans
17,543
17,166
17,040
16,995
17,026
Home equity
4,188
4,074
3,969
3,883
3,916
Indirect secured consumer loans
16,313
15,942
15,442
15,306
14,965
Credit card
1,734
1,703
1,733
1,737
1,865
Solar energy installation loans
4,202
4,078
3,951
3,871
3,728
Other consumer loans
2,518
2,575
2,661
2,777
2,988
Total consumer loans
46,498
45,538
44,796
44,569
44,488
Total portfolio loans and leases
$119,791
$116,668
$116,579
$116,485
$117,234
End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale
$66
$100
$25
$32
$44
Consumer loans held for sale
574
512
512
307
334
Loans and leases held for sale
$640
$612
$537
$339
$378
Operating lease equipment
$319
$357
$392
$427
$459
Loans and Leases Serviced for Others(a)
Commercial and industrial loans
$1,071
$1,178
$1,201
$1,197
$1,231
Commercial mortgage loans
579
515
616
632
655
Commercial construction loans
348
342
309
293
283
Commercial leases
725
773
730
703
703
Residential mortgage loans
94,225
95,808
97,280
99,596
100,842
Solar energy installation loans
593
610
625
641
658
Other consumer loans
119
126
133
139
146
Total loans and leases serviced for others
97,660
99,352
100,894
103,201
104,518
Total loans and leases owned or serviced
$218,410
$216,989
$218,402
$220,452
$222,589
(a)Fifth Third sells certain loans and leases and obtains servicing responsibilities.
23
Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millions
As of
(unaudited)
December
September
June
March
December
2024(a)
2024
2024
2024
2023
Regulatory Capital(b)
CET1 capital
$17,328
$17,272
$17,160
$16,931
$16,800
Additional tier 1 capital
2,116
2,116
2,116
2,116
2,116
Tier 1 capital
19,444
19,388
19,276
19,047
18,916
Tier 2 capital
3,299
3,303
3,275
3,288
3,484
Total regulatory capital
$22,743
$22,691
$22,551
$22,335
$22,400
Risk-weighted assets
$164,824
$160,604
$161,636
$161,769
$163,223
Ratios
Average total Bancorp shareholders' equity as a percent of average assets
9.40
%
9.47
%
8.80
%
8.78
%
8.04
%
Regulatory Capital Ratios(b)
Fifth Third Bancorp
CET1 capital
10.51
%
10.75
%
10.62
%
10.47
%
10.29
%
Tier 1 risk-based capital
11.80
%
12.07
%
11.93
%
11.77
%
11.59
%
Total risk-based capital
13.80
%
14.13
%
13.95
%
13.81
%
13.72
%
Leverage
9.22
%
9.11
%
9.07
%
8.94
%
8.73
%
Fifth Third Bank, National Association
Tier 1 risk-based capital
12.79
%
12.99
%
12.81
%
12.65
%
12.42
%
Total risk-based capital
14.12
%
14.32
%
14.14
%
13.99
%
13.85
%
Leverage
10.01
%
9.82
%
9.76
%
9.61
%
9.38
%
(a)Current period regulatory capital data and ratios are estimated.
(b)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
24
Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millions
For the Three Months Ended
(unaudited)
December
September
June
March
December
2024
2024
2024
2024
2023
Average portfolio loans and leases:
Commercial and industrial loans
$51,567
$51,615
$52,357
$53,183
$54,633
Commercial mortgage loans
11,792
11,488
11,352
11,339
11,338
Commercial construction loans
5,702
5,981
5,917
5,732
5,727
Commercial leases
2,902
2,685
2,575
2,542
2,535
Total commercial loans and leases
71,963
71,769
72,201
72,796
74,233
Residential mortgage loans
17,322
17,031
17,004
16,977
17,129
Home equity
4,125
4,018
3,929
3,933
3,905
Indirect secured consumer loans
16,100
15,680
15,373
15,172
15,129
Credit card
1,668
1,708
1,728
1,773
1,829
Solar energy installation loans
4,137
3,990
3,916
3,794
3,630
Other consumer loans
2,545
2,630
2,740
2,889
3,003
Total consumer loans
45,897
45,057
44,690
44,538
44,625
Total average portfolio loans and leases
$117,860
$116,826
$116,891
$117,334
$118,858
Losses charged-off:
Commercial and industrial loans
($61)
($80)
($83)
($40)
($30)
Commercial mortgage loans
—
—
—
—
—
Commercial construction loans
—
—
—
—
—
Commercial leases
(2)
—
—
—
—
Total commercial loans and leases
(63)
(80)
(83)
(40)
(30)
Residential mortgage loans
(1)
—
(1)
—
(1)
Home equity
(2)
(1)
(1)
(2)
(2)
Indirect secured consumer loans
(39)
(35)
(31)
(35)
(35)
Credit card
(21)
(21)
(22)
(23)
(22)
Solar energy installation loans
(20)
(16)
(14)
(14)
(11)
Other consumer loans
(29)
(30)
(30)
(32)
(32)
Total consumer loans
(112)
(103)
(99)
(106)
(103)
Total losses charged-off
($175)
($183)
($182)
($146)
($133)
Recoveries of losses previously charged-off:
Commercial and industrial loans
$6
$8
$3
$5
$2
Commercial mortgage loans
—
—
—
—
3
Commercial construction loans
—
—
—
—
—
Commercial leases
—
—
—
—
—
Total commercial loans and leases
6
8
3
5
5
Residential mortgage loans
1
1
1
—
1
Home equity
2
1
2
2
2
Indirect secured consumer loans
12
13
14
11
10
Credit card
4
5
5
5
4
Solar energy installation loans
3
2
2
2
1
Other consumer loans
11
11
11
11
14
Total consumer loans
33
33
35
31
32
Total recoveries of losses previously charged-off
$39
$41
$38
$36
$37
Net losses charged-off:
Commercial and industrial loans
($55)
($72)
($80)
($35)
($28)
Commercial mortgage loans
—
—
—
—
3
Commercial construction loans
—
—
—
—
—
Commercial leases
(2)
—
—
—
—
Total commercial loans and leases
(57)
(72)
(80)
(35)
(25)
Residential mortgage loans
—
1
—
—
—
Home equity
—
—
1
—
—
Indirect secured consumer loans
(27)
(22)
(17)
(24)
(25)
Credit card
(17)
(16)
(17)
(18)
(18)
Solar energy installation loans
(17)
(14)
(12)
(12)
(10)
Other consumer loans
(18)
(19)
(19)
(21)
(18)
Total consumer loans
(79)
(70)
(64)
(75)
(71)
Total net losses charged-off
($136)
($142)
($144)
($110)
($96)
Net losses charged-off as a percent of average portfolio loans and leases (annualized):
Commercial and industrial loans
0.42
%
0.55
%
0.61
%
0.27
%
0.20
%
Commercial mortgage loans
0.01
%
—
0.01
%
—
(0.10
%)
Commercial construction loans
—
—
—
—
—
Commercial leases
0.32
%
(0.01
%)
(0.01
%)
(0.04
%)
0.01
%
Total commercial loans and leases
0.32
%
0.40
%
0.45
%
0.19
%
0.13
%
Residential mortgage loans
(0.01
%)
(0.02
%)
(0.01
%)
(0.01
%)
(0.01
%)
Home equity
(0.01
%)
(0.02
%)
(0.05
%)
0.03
%
0.05
%
Indirect secured consumer loans
0.66
%
0.54
%
0.46
%
0.64
%
0.64
%
Credit card
4.00
%
3.74
%
3.98
%
4.19
%
3.90
%
Solar energy installation loans
1.64
%
1.44
%
1.25
%
1.31
%
1.09
%
Other consumer loans
2.84
%
3.00
%
2.61
%
2.71
%
2.60
%
Total consumer loans
0.68
%
0.62
%
0.57
%
0.67
%
0.64
%
Total net losses charged-off as a percent of average portfolio loans and leases (annualized)
0.46
%
0.48
%
0.49
%
0.38
%
0.32
%
25
Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millions
For the Three Months Ended
(unaudited)
December
September
June
March
December
2024
2024
2024
2024
2023
Allowance for Credit Losses
Allowance for loan and lease losses, beginning
$2,305
$2,288
$2,318
$2,322
$2,340
Total net losses charged-off
(136)
(142)
(144)
(110)
(96)
Provision for loan and lease losses
183
159
114
106
78
Allowance for loan and lease losses, ending
$2,352
$2,305
$2,288
$2,318
$2,322
Reserve for unfunded commitments, beginning
$138
$137
$154
$166
$189
(Benefit from) provision for the reserve for unfunded commitments
(4)
1
(17)
(12)
(23)
Reserve for unfunded commitments, ending
$134
$138
$137
$154
$166
Components of allowance for credit losses:
Allowance for loan and lease losses
$2,352
$2,305
$2,288
$2,318
$2,322
Reserve for unfunded commitments
134
138
137
154
166
Total allowance for credit losses
$2,486
$2,443
$2,425
$2,472
$2,488
As of
December
September
June
March
December
2024
2024
2024
2024
2023
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
Commercial and industrial loans
$374
$255
$234
$332
$304
Commercial mortgage loans
79
78
38
39
20
Commercial construction loans
1
1
1
1
1
Commercial leases
2
—
1
—
1
Residential mortgage loans
137
131
129
137
124
Home equity
70
67
61
60
57
Indirect secured consumer loans
55
50
36
32
36
Credit card
32
31
31
32
34
Solar energy installation loans
64
64
66
65
60
Other consumer loans
9
9
9
10
12
Total nonaccrual portfolio loans and leases
823
686
606
708
649
Repossessed property
9
11
9
8
10
OREO
21
28
28
27
29
Total nonperforming portfolio loans and leases and OREO
853
725
643
743
688
Nonaccrual loans held for sale
7
8
4
5
1
Total nonperforming assets
$860
$733
$647
$748
$689
Loans and leases 90 days past due (accrual):
Commercial and industrial loans
$5
$10
$3
$9
$8
Commercial mortgage loans
—
3
1
—
—
Commercial leases
1
1
4
2
—
Total commercial loans and leases
6
14
8
11
8
Residential mortgage loans(c)
6
8
8
5
7
Credit card
20
18
17
19
21
Total consumer loans
26
26
25
24
28
Total loans and leases 90 days past due (accrual)(b)
$32
$40
$33
$35
$36
Ratios
Net losses charged-off as a percent of average portfolio loans and leases (annualized)
0.46
%
0.48
%
0.49
%
0.38
%
0.32
%
Allowance for credit losses:
As a percent of portfolio loans and leases
2.08
%
2.09
%
2.08
%
2.12
%
2.12
%
As a percent of nonperforming portfolio loans and leases(a)
302
%
356
%
400
%
349
%
383
%
As a percent of nonperforming portfolio assets(a)
291
%
337
%
377
%
333
%
362
%
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases(a)
0.69
%
0.59
%
0.52
%
0.61
%
0.55
%
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
0.71
%
0.62
%
0.55
%
0.64
%
0.59
%
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property
0.71
%
0.62
%
0.55
%
0.64
%
0.59
%
(a) Excludes nonaccrual loans held for sale.
(b) Excludes loans held for sale.
(c) Excludes government guaranteed residential mortgage loans.
26
Use of Non-GAAP Financial Measures
In addition to GAAP measures, management considers various non-GAAP measures when evaluating the performance of the business, including: “net interest income (FTE),” “interest income (FTE),” “net interest margin (FTE),” “net interest rate spread (FTE),” “income before income taxes (FTE),” “tangible net income available to common shareholders,” “average tangible common equity,” “return on average tangible common equity,” “tangible common equity (excluding AOCI),” “tangible common equity (including AOCI),” “tangible equity,” “tangible book value per share,” “tangible book value per share (excluding AOCI),” “adjusted noninterest income,” “noninterest income excluding certain items,” “adjusted noninterest expense,” “noninterest expense excluding certain items,” “pre-provision net revenue,” “adjusted efficiency ratio,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” “adjusted return on average tangible common equity, excluding accumulated other comprehensive income", “adjusted pre-provision net revenue,” “adjusted return on average assets,” “efficiency ratio (FTE),” “total revenue (FTE),” “noninterest income as a percent of total revenue”, and certain ratios derived from these measures.
The Bancorp believes these non-GAAP measures provide useful information to investors because these are among the measures used by the Fifth Third management team to evaluate operating performance and to make day-to-day operating decisions.
The FTE basis adjusts for the tax-favored status of income from certain loans and securities held by the Bancorp that are not taxable for federal income tax purposes. The Bancorp believes this presentation to be the preferred industry measurement of net interest income and net interest margin as it provides a relevant comparison between taxable and non-taxable amounts.
The Bancorp believes tangible net income available to common shareholders, average tangible common equity, tangible common equity (excluding AOCI), tangible common equity (including AOCI), tangible equity, tangible book value per share and return on average tangible common equity are important measures for evaluating the performance of the business without the impacts of intangible items, whether acquired or created internally, in a manner comparable to other companies in the industry who present similar measures.
The Bancorp believes noninterest income, noninterest expense, net interest income, net interest margin, pre-provision net revenue, efficiency ratio, noninterest income as a percent of total revenue, return on average common equity, return on average tangible common equity, and return on average assets are important measures that adjust for significant, unusual, or large transactions that may occur in a reporting period which management does not consider indicative of ongoing financial performance and enhances comparability of results with prior periods.
The Bancorp believes noninterest income excluding certain items and noninterest expense excluding certain items are important measures that adjust for certain components that are prone to significant period-to-period changes in order to facilitate the explanation of variances in the noninterest income and noninterest expense line items.
Management considers various measures when evaluating capital utilization and adequacy, including the tangible equity and tangible common equity (including and excluding AOCI), in addition to capital ratios defined by U.S. banking agencies. These calculations are intended to complement the capital ratios defined by U.S. banking agencies for both absolute and comparative purposes. These ratios are not formally defined by U.S. GAAP or codified in the federal banking regulations and, therefore, are considered to be non-GAAP financial measures. Management believes that providing the tangible common equity ratio excluding AOCI on certain assets and liabilities enables investors and others to assess the Bancorp’s use of equity without the effects of changes in AOCI, some of which are uncertain; providing the tangible common equity ratio including AOCI enables investors and others to assess the Bancorp’s use of equity if components of AOCI, such as unrealized gains or losses, were to be monetized.
Please note that although non-GAAP financial measures provide useful insight, they should not be considered in isolation or relied upon as a substitute for analysis using GAAP measures.
Please see reconciliations of all historical non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page.
27
Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ and shares in millions
As of and For the Three Months Ended
(unaudited)
December
September
June
March
December
2024
2024
2024
2024
2023
Net interest income
$1,437
$1,421
$1,387
$1,384
$1,416
Add: Taxable equivalent adjustment
6
6
6
6
7
Net interest income (FTE) (a)
1,443
1,427
1,393
1,390
1,423
Net interest income (annualized) (b)
5,717
5,653
5,578
5,566
5,618
Net interest income (FTE) (annualized) (c)
5,741
5,677
5,603
5,591
5,646
Interest income
2,528
2,669
2,620
2,608
2,648
Add: Taxable equivalent adjustment
6
6
6
6
7
Interest income (FTE)
2,534
2,675
2,626
2,614
2,655
Interest income (FTE) (annualized) (d)
10,081
10,642
10,562
10,513
10,533
Interest expense (annualized) (e)
4,340
4,965
4,959
4,923
4,888
Average interest-earning assets (f)
193,513
195,836
194,499
195,349
198,166
Average interest-bearing liabilities (g)
144,771
147,092
146,361
146,533
146,507
Net interest margin (b) / (f)
2.95
%
2.89
%
2.87
%
2.85
%
2.83
%
Net interest margin (FTE) (c) / (f)
2.97
%
2.90
%
2.88
%
2.86
%
2.85
%
Net interest rate spread (FTE) (d) / (f) - (e) / (g)
2.21
%
2.05
%
2.04
%
2.02
%
1.97
%
Income before income taxes
$764
$728
$764
$658
$650
Add: Taxable equivalent adjustment
6
6
6
6
7
Income before income taxes (FTE)
770
734
770
664
657
Net income available to common shareholders
582
532
561
480
492
Add: Intangible amortization, net of tax
7
7
7
8
8
Tangible net income available to common shareholders (h)
589
539
568
488
500
Tangible net income available to common shareholders (annualized) (i)
2,343
2,144
2,284
1,963
1,984
Average Bancorp shareholders’ equity
19,893
20,251
18,707
18,727
17,201
Less:
Average preferred stock
(2,116)
(2,116)
(2,116)
(2,116)
(2,116)
Average goodwill
(4,918)
(4,918)
(4,918)
(4,918)
(4,919)
Average intangible assets
(94)
(103)
(111)
(121)
(130)
Average tangible common equity, including AOCI (j)
12,765
13,114
11,562
11,572
10,036
Less:
Average AOCI
4,292
3,914
5,278
4,938
6,244
Average tangible common equity, excluding AOCI (k)
17,057
17,028
16,840
16,510
16,280
Total Bancorp shareholders’ equity
19,645
20,784
19,226
19,018
19,172
Less:
Preferred stock
(2,116)
(2,116)
(2,116)
(2,116)
(2,116)
Goodwill
(4,918)
(4,918)
(4,918)
(4,918)
(4,919)
Intangible assets
(90)
(98)
(107)
(115)
(125)
Tangible common equity, including AOCI (l)
12,521
13,652
12,085
11,869
12,012
Less:
AOCI
4,636
3,446
4,901
4,888
4,487
Tangible common equity, excluding AOCI (m)
17,157
17,098
16,986
16,757
16,499
Add:
Preferred stock
2,116
2,116
2,116
2,116
2,116
Tangible equity (n)
19,273
19,214
19,102
18,873
18,615
Total assets
212,927
214,318
213,262
214,506
214,574
Less:
Goodwill
(4,918)
(4,918)
(4,918)
(4,918)
(4,919)
Intangible assets
(90)
(98)
(107)
(115)
(125)
Tangible assets, including AOCI (o)
207,919
209,302
208,237
209,473
209,530
Less:
AOCI, before tax
5,868
4,362
6,204
6,187
5,680
Tangible assets, excluding AOCI (p)
$213,787
$213,664
$214,441
$215,660
$215,210
Common shares outstanding (q)
670
676
681
684
681
Tangible equity (n) / (p)
9.02
%
8.99
%
8.91
%
8.75
%
8.65
%
Tangible common equity (excluding AOCI) (m) / (p)
8.03
%
8.00
%
7.92
%
7.77
%
7.67
%
Tangible common equity (including AOCI) (l) / (o)
6.02
%
6.52
%
5.80
%
5.67
%
5.73
%
Tangible book value per share (including AOCI) (l) / (q)
$18.69
$20.20
$17.75
$17.35
$17.64
Tangible book value per share (excluding AOCI) (m) / (q)
$25.61
$25.29
$24.94
$24.50
$24.23
28
Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ in millions
For the Three Months Ended
(unaudited)
December
September
December
2024
2024
2023
Net income (r)
$620
$573
$530
Net income (annualized) (s)
2,467
2,280
2,103
Adjustments (pre-tax items)
Valuation of Visa total return swap
51
47
22
Fifth Third Foundation contribution
15
—
15
Mastercard litigation
4
10
—
FDIC special assessment
(11)
—
224
Restructuring severance expense
—
9
5
Adjustments, after-tax (t)(a) (b)
45
51
205
Adjustments (tax related items)
Benefit related to the resolution of certain state income tax matters
(15)
—
(17)
Adjustments (tax related items) (u)
(15)
—
(17)
Noninterest income (v)
732
711
744
Valuation of Visa total return swap
51
47
22
Adjusted noninterest income (w)
783
758
766
Noninterest expense (x)
1,226
1,244
1,455
Fifth Third Foundation contribution
(15)
—
(15)
Mastercard litigation
(4)
(10)
—
FDIC special assessment
11
—
(224)
Restructuring severance expense
—
(9)
(5)
Adjusted noninterest expense (y)
1,218
1,225
1,211
Adjusted net income (r) + (t) + (u)
650
624
718
Adjusted net income (annualized) (z)
2,586
2,482
2,849
Adjusted tangible net income available to common shareholders (h) + (t) + (u)
619
590
688
Adjusted tangible net income available to common shareholders (annualized) (aa)
2,463
2,347
2,730
Average assets (ab)
$211,709
$213,838
$214,057
Return on average tangible common equity (i) / (j)
18.4
%
16.3
%
19.8
%
Return on average tangible common equity excluding AOCI (i) / (k)
13.7
%
12.6
%
12.2
%
Adjusted return on average tangible common equity, including AOCI (aa) / (j)
19.3
%
17.9
%
27.2
%
Adjusted return on average tangible common equity, excluding AOCI (aa) / (k)
14.4
%
13.8
%
16.8
%
Return on average assets (s) / (ab)
1.17
%
1.06
%
0.98
%
Adjusted return on average assets (z) / (ab)
1.22
%
1.16
%
1.33
%
Efficiency ratio (FTE) (x) / [(a) + (v)]
56.4
%
58.2
%
67.2
%
Adjusted efficiency ratio (y) / [(a) + (w)]
54.7
%
56.1
%
55.3
%
Total revenue (FTE) (a) + (v)
$2,175
$2,138
$2,167
Adjusted total revenue (FTE) (a) + (w)
$2,226
$2,185
$2,189
Pre-provision net revenue (PPNR) (a) + (v) - (x)
$949
$894
$712
Adjusted pre-provision net revenue (PPNR) (a) + (w) - (y)
$1,008
$960
$978
Totals may not foot due to rounding.
(a) Assumes a 23% tax rate.
(b) A portion of the adjustments related to legal settlements and remediations are not tax-deductible.
29
Fifth Third Bancorp and Subsidiaries
Segment Presentation(b)
$ in millions
(unaudited)
For the three months ended December 31, 2024
Commercial Banking
Consumer and Small Business Banking
Wealth
and Asset Management
General Corporate
and Other
Total
Net interest income (FTE)(a)
$623
$959
$48
$(187)
$1,443
Provision for credit losses
(21)
(89)
—
(69)
(179)
Net interest income after provision for credit losses
602
870
48
(256)
1,264
Noninterest income
375
276
103
(22)
732
Noninterest expense
(464)
(605)
(94)
(63)
(1,226)
Income (loss) before income taxes
513
541
57
(341)
770
Applicable income tax (expense) benefit(a)
(91)
(113)
(12)
66
(150)
Net income (loss)
$422
$428
$45
$(275)
$620
For the three months ended September 30, 2024
Commercial Banking
Consumer and Small Business Banking
Wealth
and Asset Management
General Corporate
and Other
Total
Net interest income (FTE)(a)
$673
$1,031
$50
$(327)
$1,427
Provision for credit losses
(76)
(78)
—
(6)
(160)
Net interest income after provision for credit losses
597
953
50
(333)
1,267
Noninterest income
357
280
99
(25)
711
Noninterest expense
(470)
(604)
(95)
(75)
(1,244)
Income (loss) before income taxes
484
629
54
(433)
734
Applicable income tax (expense) benefit(a)
(91)
(132)
(12)
74
(161)
Net income (loss)
$393
$497
$42
$(359)
$573
For the three months ended June 30, 2024
Commercial Banking
Consumer and Small Business Banking
Wealth
and Asset Management
General Corporate
and Other
Total
Net interest income (FTE)(a)
$660
$1,055
$54
$(376)
$1,393
(Provision for) benefit from credit losses
(137)
(70)
—
110
(97)
Net interest income after (provision for) benefit from credit losses
523
985
54
(266)
1,296
Noninterest income
323
272
98
2
695
Noninterest expense
(457)
(626)
(93)
(45)
(1,221)
Income (loss) before income taxes
389
631
59
(309)
770
Applicable income tax (expense) benefit(a)
(69)
(132)
(12)
44
(169)
Net income (loss)
$320
$499
$47
$(265)
$601
For the three months ended March 31, 2024
Commercial Banking
Consumer and Small Business Banking
Wealth
and Asset Management
General Corporate
and Other
Total
Net interest income (FTE)(a)
$690
$1,125
$59
$(484)
$1,390
(Provision for) benefit from credit losses
(71)
(84)
—
61
(94)
Net interest income after (provision for) benefit from credit losses
619
1,041
59
(423)
1,296
Noninterest income
326
266
102
16
710
Noninterest expense
(501)
(639)
(103)
(99)
(1,342)
Income (loss) before income taxes
444
668
58
(506)
664
Applicable income tax (expense) benefit(a)
(75)
(141)
(12)
84
(144)
Net income (loss)
$369
$527
$46
$(422)
$520
For the three months ended December 31, 2023
Commercial Banking
Consumer and Small Business Banking
Wealth
and Asset Management
General Corporate
and Other
Total
Net interest income (FTE)(a)
$812
$1,190
$66
$(645)
$1,423
(Provision for) benefit from credit losses
25
(81)
—
1
(55)
Net interest income after (provision for) benefit from credit losses
837
1,109
66
(644)
1,368
Noninterest income
332
284
91
37
744
Noninterest expense
(488)
(614)
(90)
(263)
(1,455)
Income (loss) before income taxes
681
779
67
(870)
657
Applicable income tax (expense) benefit(a)
(129)
(164)
(15)
181
(127)
Net income (loss)
$552
$615
$52
$(689)
$530
(a) Includes taxable equivalent adjustments of $6 million for the three months ended December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024 and $7 million for the three months ended December 31, 2023.
(b) During the first quarter of 2024, the Bancorp eliminated certain revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking. Prior period results have been adjusted to reflect current presentation.
30
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 3 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 0 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor