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 of the earnings release
Fifth Third Bancorp (NASDAQ: FITB):
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 of the earnings release, 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 $1.6
billion of capital to our shareholders while increasing our capital
ratios.
The risks we face are well-understood and well-contained. Our
balance sheet was resilient in 2024 and is positioned to continue
this strong performance in 2025 through a range of interest rate
outcomes. We remain proactive in managing our credit risk. As we
navigate these risks, we are committed to generating long-term,
sustainable value for our shareholders as we adhere to our guiding
principles of stability, profitability, and growth - in that
order.
Income Statement Highlights
($ 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.
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 $4.7 billion reduction in
interest-earning assets.
Noninterest Income
($ 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
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 $13
million expense related to the mark-to-market impact of
non-qualified deferred compensation, which was largely offset in
net securities gains through noninterest income.
Average Interest-Earning Assets
($ 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.
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
$17 billion decreased 21% compared to the prior quarter, and
decreased 22% compared to the year-ago quarter.
Average Deposits
($ 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
$250,000 was primarily driven by a decrease in retail brokered
deposits. The same items drove the 23% decrease from the year-ago
quarter.
Credit Quality Summary
($ 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.
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.
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 of the earnings
release.
(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.
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.
Category: Earnings
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250121022434/en/
Investor contact: Matt Curoe (513) 534-2345 Media contact:
Jennifer Hendricks Sullivan (614) 744-7693
Fifth Third Bancorp (NASDAQ:FITB)
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Fifth Third Bancorp (NASDAQ:FITB)
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