EX-99.12q32024earningsrelease.htmEX-99.1 Document
Fifth Third Bancorp Reports Third Quarter 2024 Diluted Earnings Per Share of $0.78
Fee income growth and resilient balance sheet leads to another quarter of strong returns
Reported results included a negative $0.07 impact from certain items on page 2
Key Financial Data
Key Highlights
$ in millions for all balance sheet and income statement items
3Q24
2Q24
3Q23
Stability:
•Sequential growth in net interest income and net interest margin driven by the repricing benefit on fixed rate loan portfolio and moderating deposit costs
•Strong profitability resulted in CET1 increasing to 10.75% while executing a $200 million share repurchase and raising common stock dividend by 6%
•Loan-to-core deposit ratio of 71%
Profitability:
•Disciplined expense management; efficiency ratio(a) of 58.2%; adjusted efficiency ratio(a) of 56.1% improved 70 bps sequentially
•Interest-bearing liabilities costs down 1 bp from 2Q24
Growth:
•Strong fee performance driven by strategic investments. Compared to 3Q23:
•Wealth & asset management revenue up 12%
•Commercial payments revenue up 10%
•Capital markets fees up 9%
•Generated consumer household growth of 3% compared to 3Q23
Income Statement Data
Net income available to common shareholders
$532
$561
$623
Net interest income (U.S. GAAP)
1,421
1,387
1,438
Net interest income (FTE)(a)
1,427
1,393
1,445
Noninterest income
711
695
715
Noninterest expense
1,244
1,221
1,188
Per Share Data
Earnings per share, basic
$0.78
$0.82
$0.91
Earnings per share, diluted
0.78
0.81
0.91
Book value per share
27.60
25.13
21.19
Tangible book value per share(a)
20.20
17.75
13.76
Balance Sheet & Credit Quality
Average portfolio loans and leases
$116,826
$116,891
$121,630
Average deposits
167,196
167,194
165,644
Accumulated other comprehensive loss
(3,446)
(4,901)
(6,839)
Net charge-off ratio(b)
0.48
%
0.49
%
0.41
%
Nonperforming asset ratio(c)
0.62
0.55
0.51
Financial Ratios
Return on average assets
1.06
%
1.14
%
1.26
%
Return on average common equity
11.7
13.6
16.3
Return on average tangible common equity(a)
16.3
19.8
24.7
CET1 capital(d)(e)
10.75
10.62
9.80
Net interest margin(a)
2.90
2.88
2.98
Efficiency(a)
58.2
58.5
55.0
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 achieved another quarter of strong and consistent performance driven by our resilient balance sheet, diversified and growing revenue streams, and disciplined expense management. With our strong core deposit franchise and liquidity, we are well positioned for the declining interest rate environment and volatility driven by the economic and regulatory uncertainty.
Our strategic growth priorities continue to deliver strong results. In the Southeast, where we are expanding into high-growth markets, deposits grew by 16% over the last twelve months. We generated record revenue in our Wealth & Asset Management business and assets under management grew 21% year-over-year to $69 billion. Our Commercial Payments revenue grew 10% compared to the year-ago quarter, with Newline adding industry leaders to its customer base.
Our strong and stable returns on capital allowed us to raise our common stock dividend by 6%, execute a $200 million share repurchase, and grow our tangible book value per share, ex. AOCI by 6% in the past year.
We remain well-positioned to generate long-term, sustainable value to our shareholders as we adhere to our guiding principles of stability, profitability, and growth – in that order.
Investor contact: Matt Curoe (513) 534-2345 | Media contact: Jennifer Hendricks Sullivan (614) 744-7693 October 18, 2024
Income Statement Highlights
($ in millions, except per share data)
For the Three Months Ended
% Change
September
June
September
2024
2024
2023
Seq
Yr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,427
$1,393
$1,445
2%
(1)%
Provision for credit losses
160
97
119
65%
34%
Noninterest income
711
695
715
2%
(1)%
Noninterest expense
1,244
1,221
1,188
2%
5%
Income before income taxes(a)
$734
$770
$853
(5)%
(14)%
Taxable equivalent adjustment
$6
$6
$7
—
(14)%
Applicable income tax expense
155
163
186
(5)%
(17)%
Net income
$573
$601
$660
(5)%
(13)%
Dividends on preferred stock
41
40
37
3%
11%
Net income available to common shareholders
$532
$561
$623
(5)%
(15)%
Earnings per share, diluted
$0.78
$0.81
$0.91
(4)%
(14)%
Fifth Third Bancorp (NASDAQ®: FITB) today reported third quarter 2024 net income of $573 million compared to net income of $601 million in the prior quarter and $660 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $532 million, or $0.78 per diluted share, compared to $561 million, or $0.81 per diluted share, in the prior quarter and $623 million, or $0.91 per diluted share, in the year-ago quarter.
Diluted earnings per share impact of certain item(s) - 3Q24
(after-tax impact(f); $ in millions, except per share data)
Restructuring severance expense
$(7)
Interchange litigation matters
Valuation of Visa total return swap (noninterest income)
$(36)
Mastercard litigation (noninterest expense)
(8)
subtotal
(44)
After-tax impact(f) of certain items
$(51)
Diluted earnings per share impact of certain item(s)1
$(0.07)
Totals may not foot due to rounding; 1Diluted earnings per share impact reflects 686.109 million average diluted shares outstanding
2
Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended
% Change
September
June
September
2024
2024
2023
Seq
Yr/Yr
Interest Income
Interest income
$2,675
$2,626
$2,536
2%
5%
Interest expense
1,248
1,233
1,091
1%
14%
Net interest income (NII)
$1,427
$1,393
$1,445
2%
(1)%
NII excluding certain items(a)
$1,427
$1,398
$1,445
2%
(1)%
Average Yield/Rate Analysis
bps Change
Yield on interest-earning assets
5.43
%
5.43
%
5.23
%
—
20
Rate paid on interest-bearing liabilities
3.38
%
3.39
%
3.10
%
(1)
28
Ratios
Net interest rate spread
2.05
%
2.04
%
2.13
%
1
(8)
Net interest margin (NIM)
2.90
%
2.88
%
2.98
%
2
(8)
NIM excluding certain items(a)
2.90
%
2.89
%
2.98
%
1
(8)
Compared to the prior quarter, NII increased $34 million. Excluding the $5 million reduction related to the customer remediations in the prior quarter, NII was up $29 million, or 2%, primarily reflecting higher loan yields, the benefit of higher day count, and lower wholesale funding costs, partially offset by lower average commercial loan balances. Compared to the prior quarter, NIM increased 2 bps. Excluding the aforementioned customer remediations in the prior quarter, NIM increased 1 bp, primarily reflecting higher loan yields from the repricing benefit on the fixed rate loan portfolio, partially offset by the impact of higher cash balances. NIM results continue to be impacted by the decision to carry elevated liquidity given the environment, with the combination of cash and other short-term investments of approximately $25 billion at quarter-end.
Compared to the year-ago quarter, NII decreased $18 million, or 1%, reflecting the impact of the RWA diet lowering average loans by 4% and the deposit mix shift from demand to interest-bearing accounts at higher funding costs, partially offset by higher loan yields. Compared to the year-ago quarter, NIM decreased 8 bps, reflecting the net impact of higher market rates and their effects on deposit pricing and the decision to carry additional cash, partially offset by higher loan yields.
3
Noninterest Income
($ in millions)
For the Three Months Ended
% Change
September
June
September
2024
2024
2023
Seq
Yr/Yr
Noninterest Income
Service charges on deposits
$161
$156
$149
3%
8%
Commercial banking revenue
163
144
154
13%
6%
Mortgage banking net revenue
50
50
57
—
(12)%
Wealth and asset management revenue
163
159
145
3%
12%
Card and processing revenue
106
108
104
(2)%
2%
Leasing business revenue
43
38
58
13%
(26)%
Other noninterest income
15
37
55
(59)%
(73)%
Securities gains (losses), net
10
3
(7)
233%
NM
Total noninterest income
$711
$695
$715
2%
(1)%
Reported noninterest income increased $16 million, or 2%, from the prior quarter, and decreased $4 million, or 1%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including the mark-to-market on the valuation of Visa total return swap and securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans that are more than offset in noninterest expense.
Noninterest Income excluding certain items
($ in millions)
For the Three Months Ended
September
June
September
% Change
2024
2024
2023
Seq
Yr/Yr
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)
$711
$695
$715
Valuation of Visa total return swap
47
23
10
Legal settlements and remediations
—
2
—
Securities (gains) losses, net
(10)
(3)
7
Noninterest income excluding certain items(a)
$748
$717
$732
4%
2%
Noninterest income excluding certain items increased $31 million, or 4%, compared to the prior quarter, and increased $16 million, or 2%, from the year-ago quarter.
Compared to the prior quarter, service charges on deposits increased $5 million, or 3%, reflecting an increase in both consumer deposit fees and commercial payments revenue. Commercial banking revenue increased $19 million, or 13%, primarily reflecting increases in corporate bond fees and institutional brokerage revenue, partially offset by a decrease in client financial risk management revenue. Wealth and asset management revenue increased $4 million, or 3%, primarily driven by increases in personal asset management revenue and brokerage fees. Card and processing revenue decreased $2 million, or 2%, driven by a decrease in interchange revenue. Leasing business revenue increased $5 million, or 13%, primarily driven by an increase in lease remarketing revenue.
Compared to the year-ago quarter, service charges on deposits increased $12 million, or 8%, primarily reflecting an increase in commercial payments revenue. Commercial banking revenue increased $9 million, or 6%, primarily reflecting an increase in corporate bond fees, partially offset by a decrease in client financial risk management revenue. Mortgage banking net revenue decreased $7 million, or 12%, primarily reflecting decreases in MSR net valuation adjustments and mortgage servicing revenue. Wealth and asset management revenue increased $18 million, or 12%, primarily reflecting increases in personal asset management revenue and brokerage fees. Leasing business revenue decreased $15 million, or 26%, primarily reflecting a decrease in operating lease revenue.
4
Noninterest Expense
($ in millions)
For the Three Months Ended
% Change
September
June
September
2024
2024
2023
Seq
Yr/Yr
Noninterest Expense
Compensation and benefits
$690
$656
$629
5%
10%
Net occupancy expense
81
83
84
(2)%
(4)%
Technology and communications
121
114
115
6%
5%
Equipment expense
38
38
37
—
3%
Card and processing expense
22
21
21
5%
5%
Leasing business expense
21
22
29
(5)%
(28)%
Marketing expense
26
34
35
(24)%
(26)%
Other noninterest expense
245
253
238
(3)%
3%
Total noninterest expense
$1,244
$1,221
$1,188
2%
5%
Reported noninterest expense increased $23 million, or 2%, from the prior quarter, and increased $56 million, or 5%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
Noninterest Expense excluding certain item(s)
($ in millions)
For the Three Months Ended
% Change
September
June
September
2024
2024
2023
Seq
Yr/Yr
Noninterest Expense excluding certain item(s)
Noninterest expense (U.S. GAAP)
$1,244
$1,221
$1,188
Mastercard litigation
(10)
—
—
Restructuring severance expense
(9)
—
—
Legal settlements and remediations
—
(11)
—
FDIC special assessment
—
(6)
—
Noninterest expense excluding certain item(s)(a)
$1,225
$1,204
$1,188
2%
3%
Compared to the prior quarter, noninterest expense excluding certain items increased $21 million, or 2%, primarily reflecting an increase in compensation and benefits expense due to higher performance-based compensation resulting from strong fee revenue, partially offset by a decrease in marketing expense. Noninterest expense in the current quarter included a $12 million expense related to the impact of non-qualified deferred compensation mark-to-market compared to a $4 million expense in the prior quarter, both of which were largely offset in net securities gains through noninterest income.
Compared to the year-ago quarter, noninterest expense excluding certain items increased $37 million, or 3%, primarily reflecting increases in compensation and benefits expense as well as technology and communications expense, partially offset by decreases in marketing expense and leasing business expense. The year-ago quarter included a $5 million benefit related to the impact of non-qualified deferred compensation mark-to-market, which was largely offset in net securities losses through noninterest income.
5
Average Interest-Earning Assets
($ in millions)
For the Three Months Ended
% Change
September
June
September
2024
2024
2023
Seq
Yr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans
$51,615
$52,357
$57,001
(1)%
(9)%
Commercial mortgage loans
11,488
11,352
11,216
1%
2%
Commercial construction loans
5,981
5,917
5,539
1%
8%
Commercial leases
2,685
2,575
2,616
4%
3%
Total commercial loans and leases
$71,769
$72,201
$76,372
(1)%
(6)%
Consumer loans:
Residential mortgage loans
$17,031
$17,004
$17,400
—
(2)%
Home equity
4,018
3,929
3,897
2%
3%
Indirect secured consumer loans
15,680
15,373
15,787
2%
(1)%
Credit card
1,708
1,728
1,808
(1)%
(6)%
Solar energy installation loans
3,990
3,916
3,245
2%
23%
Other consumer loans
2,630
2,740
3,121
(4)%
(16)%
Total consumer loans
$45,057
$44,690
$45,258
1%
—
Total average portfolio loans and leases
$116,826
$116,891
$121,630
—
(4)%
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale
$16
$33
$17
(52)%
(6)%
Consumer loans held for sale
573
359
619
60%
(7)%
Total average loans and leases held for sale
$589
$392
$636
50%
(7)%
Total average loans and leases
$117,415
$117,283
$122,266
—
(4)%
Securities (taxable and tax-exempt)
$56,707
$56,607
$56,994
—
(1)%
Other short-term investments
21,714
20,609
12,956
5%
68%
Total average interest-earning assets
$195,836
$194,499
$192,216
1%
2%
Compared to the prior quarter, total average portfolio loans and leases were stable. Average commercial portfolio loans and leases decreased 1%, primarily reflecting a decrease in C&I loans, partially offset by an increase in commercial mortgage loans. Average consumer portfolio loans increased 1%, primarily reflecting increases in indirect secured consumer loans, home equity balances, 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 4%. Average commercial portfolio loans and leases decreased 6%, primarily reflecting a decrease in C&I loans. Average consumer portfolio loans were stable primarily reflecting decreases in other consumer loans and residential mortgage loans, offset by increases in solar energy installation loans and home equity 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 $22 billion in the current quarter increased 5% compared to the prior quarter and increased 68% compared to the year-ago quarter.
Period-end commercial portfolio loans and leases of $71 billion decreased 1% compared to the prior quarter, primarily reflecting a decrease in C&I loans, partially offset by an increase in commercial leases. Compared to the year-ago quarter, period-end commercial portfolio loans and leases decreased 5%, primarily reflecting a decrease in C&I loans.
6
Period-end consumer portfolio loans of $46 billion increased 2% compared to the prior quarter, primarily reflecting an increase in indirect secured consumer loans. Compared to the year-ago quarter, period-end consumer portfolio loans increased 1%, reflecting increases in solar energy installation loans and indirect secured 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 $22 billion increased 3% compared to the prior quarter, and increased 15% compared to the year-ago quarter.
7
Average Deposits
($ in millions)
For the Three Months Ended
% Change
September
June
September
2024
2024
2023
Seq
Yr/Yr
Average Deposits
Demand
$40,020
$40,266
$44,228
(1)%
(10)%
Interest checking
58,441
57,999
53,109
1%
10%
Savings
17,272
17,747
20,511
(3)%
(16)%
Money market
37,257
35,511
32,072
5%
16%
Foreign office(g)
164
157
168
4%
(2)%
Total transaction deposits
$153,154
$151,680
$150,088
1%
2%
CDs $250,000 or less
10,543
10,767
9,630
(2)%
9%
Total core deposits
$163,697
$162,447
$159,718
1%
2%
CDs over $250,000
3,499
4,747
5,926
(26)%
(41)%
Total average deposits
$167,196
$167,194
$165,644
—
1%
CDs over $250,000 includes $2.6BN, $3.8BN, and $5.2BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 9/30/24, 6/30/24, and 9/30/23, respectively.
Compared to the prior quarter, total average deposits were stable, primarily reflecting an increase in money market balances, offset by a decline in CDs over $250,000. Average demand deposits represented 24% of total core deposits in the current quarter. Compared to the prior quarter, average commercial segment deposits increased 3%, while average consumer and small business banking segment deposits and average wealth & asset management segment deposits were stable. Period-end total deposits increased 1% compared to the prior quarter.
Compared to the year-ago quarter, total average deposits increased 1%, primarily reflecting increases in interest checking and money market balances, partially offset by decreases in demand account balances and savings balances. Period-end total deposits were stable compared to the year-ago quarter.
The period-end portfolio loan-to-core deposit ratio was 71% in the current quarter, compared to 72% in the prior quarter and 74% in the year-ago quarter.
Average Wholesale Funding
($ in millions)
For the Three Months Ended
% Change
September
June
September
2024
2024
2023
Seq
Yr/Yr
Average Wholesale Funding
CDs over $250,000
$3,499
$4,747
$5,926
(26)%
(41)%
Federal funds purchased
176
230
181
(23)%
(3)%
Securities sold under repurchase agreements
396
373
352
6%
13%
FHLB advances
2,576
3,165
3,726
(19)%
(31)%
Derivative collateral and other secured borrowings
52
54
48
(4)%
8%
Long-term debt
16,716
15,611
14,056
7%
19%
Total average wholesale funding
$23,415
$24,180
$24,289
(3)%
(4)%
CDs over $250,000 includes $2.6BN, $3.8BN, and $5.2BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 9/30/24, 6/30/24, and 9/30/23, respectively.
Compared to the prior quarter, average wholesale funding decreased 3%, primarily reflecting a decrease in CDs over $250,000, partially offset by an increase in long-term debt. Compared to the year-ago quarter, average wholesale funding decreased 4%, primarily reflecting a decrease in CDs over $250,000 and FHLB advances, partially offset by an increase in long-term debt.
8
Credit Quality Summary
($ in millions)
As of and For the Three Months Ended
September
June
March
December
September
2024
2024
2024
2023
2023
Total nonaccrual portfolio loans and leases (NPLs)
$686
$606
$708
$649
$570
Repossessed property
11
9
8
10
11
OREO
28
28
27
29
31
Total nonperforming portfolio loans and leases and OREO (NPAs)
$725
$643
$743
$688
$612
NPL ratio(h)
0.59
%
0.52
%
0.61
%
0.55
%
0.47
%
NPA ratio(c)
0.62
%
0.55
%
0.64
%
0.59
%
0.51
%
Portfolio loans and leases 30-89 days past due (accrual)
$283
$302
$342
$359
$316
Portfolio loans and leases 90 days past due (accrual)
40
33
35
36
29
30-89 days past due as a % of portfolio loans and leases
0.24
%
0.26
%
0.29
%
0.31
%
0.26
%
90 days past due as a % of portfolio loans and leases
0.03
%
0.03
%
0.03
%
0.03
%
0.02
%
Allowance for loan and lease losses (ALLL), beginning
$2,288
$2,318
$2,322
$2,340
$2,327
Total net losses charged-off
(142)
(144)
(110)
(96)
(124)
Provision for loan and lease losses
159
114
106
78
137
ALLL, ending
$2,305
$2,288
$2,318
$2,322
$2,340
Reserve for unfunded commitments, beginning
$137
$154
$166
$189
$207
Provision for (benefit from) the reserve for unfunded commitments
1
(17)
(12)
(23)
(18)
Reserve for unfunded commitments, ending
$138
$137
$154
$166
$189
Total allowance for credit losses (ACL)
$2,443
$2,425
$2,472
$2,488
$2,529
ACL ratios:
As a % of portfolio loans and leases
2.09
%
2.08
%
2.12
%
2.12
%
2.11
%
As a % of nonperforming portfolio loans and leases
356
%
400
%
349
%
383
%
443
%
As a % of nonperforming portfolio assets
337
%
377
%
333
%
362
%
413
%
ALLL as a % of portfolio loans and leases
1.98
%
1.96
%
1.99
%
1.98
%
1.95
%
Total losses charged-off
$(183)
$(182)
$(146)
$(133)
$(158)
Total recoveries of losses previously charged-off
41
38
36
37
34
Total net losses charged-off
$(142)
$(144)
$(110)
$(96)
$(124)
Net charge-off ratio (NCO ratio)(b)
0.48
%
0.49
%
0.38
%
0.32
%
0.41
%
Commercial NCO ratio
0.40
%
0.45
%
0.19
%
0.13
%
0.34
%
Consumer NCO ratio
0.62
%
0.57
%
0.67
%
0.64
%
0.53
%
The provision for credit losses totaled $160 million in the current quarter. The ACL ratio was 2.09% of total portfolio loans and leases at quarter end, compared with 2.08% for the prior quarter end and 2.11% for the year-ago quarter end. In the current quarter, the ACL was 356% of nonperforming portfolio loans and leases and 337% of nonperforming portfolio assets.
Net charge-offs were $142 million in the current quarter, resulting in an NCO ratio of 0.48%. Compared to the prior quarter, net charge-offs decreased $2 million and the NCO ratio decreased 1 bp. Commercial net charge-offs were $72 million, resulting in a commercial NCO ratio of 0.40%, which decreased 5 bps compared to the prior quarter. Consumer net charge-offs were $70 million, resulting in a consumer NCO ratio of 0.62%, which increased 5 bps compared to the prior quarter.
9
Compared to the year-ago quarter, net charge-offs increased $18 million and the NCO ratio increased 7 bps. The commercial NCO ratio increased 6 bps compared to the prior year, and the consumer NCO ratio increased 9 bps compared to the prior year.
Nonperforming portfolio loans and leases were $686 million in the current quarter, with the resulting NPL ratio of 0.59%. Compared to the prior quarter, NPLs increased $80 million with the NPL ratio increasing 7 bps. Compared to the year-ago quarter, NPLs increased $116 million with the NPL ratio increasing 12 bps.
Nonperforming portfolio assets were $725 million in the current quarter, with the resulting NPA ratio of 0.62%. Compared to the prior quarter, NPAs increased $82 million with the NPA ratio increasing 7 bps. Compared to the year-ago quarter, NPAs increased $113 million with the NPA ratio increasing 11 bps.
Capital Position
As of and For the Three Months Ended
September
June
March
December
September
2024
2024
2024
2023
2023
Capital Position
Average total Bancorp shareholders' equity as a % of average assets
9.47
%
8.80
%
8.78
%
8.04
%
8.30
%
Tangible equity(a)
8.99
%
8.91
%
8.75
%
8.65
%
8.46
%
Tangible common equity (excluding AOCI)(a)
8.00
%
7.92
%
7.77
%
7.67
%
7.49
%
Tangible common equity (including AOCI)(a)
6.52
%
5.80
%
5.67
%
5.73
%
4.51
%
Regulatory Capital Ratios(d)(e)
CET1 capital
10.75
%
10.62
%
10.47
%
10.29
%
9.80
%
Tier 1 risk-based capital
12.07
%
11.93
%
11.77
%
11.59
%
11.06
%
Total risk-based capital
14.12
%
13.95
%
13.81
%
13.72
%
13.13
%
Leverage
9.11
%
9.07
%
8.94
%
8.73
%
8.85
%
CET1 capital ratio of 10.75% increased 13 bps sequentially driven by strong profitability. During the third quarter of 2024, Fifth Third repurchased $200 million of its common stock, which reduced shares outstanding by approximately 4.9 million at quarter end. Fifth Third increased its quarterly cash dividend on its common shares by $0.02, or 6%, to $0.37 per share for the third quarter of 2024.
10
Tax Rate
The effective tax rate for the quarter was 21.3% consistent with the prior quarter and slightly lower than 22.0% in the year-ago quarter.
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.
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 September 30, 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)
September
June
September
September
September
2024
2024
2023
Seq
Yr/Yr
2024
2023
Yr/Yr
Income Statement Data
Net interest income
$1,421
$1,387
$1,438
2%
(1%)
$4,192
$4,411
(5%)
Net interest income (FTE)(a)
1,427
1,393
1,445
2%
(1%)
4,210
4,429
(5%)
Noninterest income
711
695
715
2%
(1%)
2,117
2,137
(1%)
Total revenue (FTE)(a)
2,138
2,088
2,160
2%
(1%)
6,327
6,566
(4%)
Provision for credit losses
160
97
119
65%
34%
351
460
(24%)
Noninterest expense
1,244
1,221
1,188
2%
5%
3,807
3,750
2%
Net income
573
601
660
(5%)
(13%)
1,694
1,819
(7%)
Net income available to common shareholders
532
561
623
(5%)
(15%)
1,573
1,719
(8%)
Earnings Per Share Data
Net income allocated to common shareholders
$532
$561
$623
(5%)
(15%)
$1,573
$1,719
(8%)
Average common shares outstanding (in thousands):
Basic
680,895
686,781
684,224
(1%)
—
684,462
684,091
—
Diluted
686,109
691,083
687,059
(1%)
—
689,263
687,661
—
Earnings per share, basic
$0.78
$0.82
$0.91
(5%)
(14%)
$2.30
$2.51
(8%)
Earnings per share, diluted
0.78
0.81
0.91
(4%)
(14%)
2.28
2.50
(9%)
Common Share Data
Cash dividends per common share
$0.37
$0.35
$0.35
6%
6%
$1.07
$1.01
6%
Book value per share
27.60
25.13
21.19
10%
30%
27.60
21.19
30%
Market value per share
42.84
36.49
25.33
17%
69%
42.84
25.33
69%
Common shares outstanding (in thousands)
676,269
680,789
680,990
(1%)
(1%)
676,269
680,990
(1%)
Market capitalization
$28,971
$24,842
$17,249
17%
68%
$28,971
$17,249
68%
Financial Ratios
Return on average assets
1.06
%
1.14
%
1.26
%
(8)
(20)
1.06
%
1.18
%
(12)
Return on average common equity
11.7
%
13.6
%
16.3
%
(190)
(460)
12.3
%
14.6
%
(230)
Return on average tangible common equity(a)
16.3
%
19.8
%
24.7
%
(350)
(840)
17.6
%
21.8
%
(420)
Noninterest income as a percent of total revenue(a)
33
%
33
%
33
%
—
—
33
%
33
%
—
Dividend payout
47.4
%
42.7
%
38.5
%
470
890
46.5
%
40.2
%
630
Average total Bancorp shareholders’ equity as a percent of average assets
9.47
%
8.80
%
8.30
%
67
117
9.02
%
8.65
%
37
Tangible common equity(a)
8.00
%
7.92
%
7.49
%
8
51
8.00
%
7.49
%
51
Net interest margin (FTE)(a)
2.90
%
2.88
%
2.98
%
2
(8)
2.88
%
3.12
%
(24)
Efficiency (FTE)(a)
58.2
%
58.5
%
55.0
%
(30)
320
60.2
%
57.1
%
310
Effective tax rate
21.3
%
21.3
%
22.0
%
—
(70)
21.3
%
22.2
%
(90)
Credit Quality
Net losses charged-off
$142
$144
$124
(1
%)
15
%
$396
$292
36
%
Net losses charged-off as a percent of average portfolio loans and leases (annualized)
0.48
%
0.49
%
0.41
%
(1)
7
0.45
%
0.32
%
13
ALLL as a percent of portfolio loans and leases
1.98
%
1.96
%
1.95
%
2
3
1.98
%
1.95
%
3
ACL as a percent of portfolio loans and leases(g)
2.09
%
2.08
%
2.11
%
1
(2)
2.09
%
2.11
%
(2)
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO
0.62
%
0.55
%
0.51
%
7
11
0.62
%
0.51
%
11
Average Balances
Loans and leases, including held for sale
$117,415
$117,283
$122,266
—
(4%)
$117,466
$123,284
(5%)
Securities and other short-term investments
78,421
77,216
69,950
2%
12%
77,765
66,294
17%
Assets
213,838
212,475
208,385
1%
3%
213,174
206,528
3%
Transaction deposits(b)
153,154
151,680
150,088
1%
2%
152,400
149,641
2%
Core deposits(c)
163,697
162,447
159,718
1%
2%
162,918
157,178
4%
Wholesale funding(d)
23,415
24,180
24,289
(3%)
(4%)
24,120
24,548
(2%)
Bancorp shareholders' equity
20,251
18,707
17,305
8%
17%
19,232
17,873
8%
Regulatory Capital Ratios(e)(f)
CET1 capital
10.75
%
10.62
%
9.80
%
13
95
10.75
%
9.80
%
95
Tier 1 risk-based capital
12.07
%
11.93
%
11.06
%
14
101
12.07
%
11.06
%
101
Total risk-based capital
14.12
%
13.95
%
13.13
%
17
99
14.12
%
13.13
%
99
Leverage
9.11
%
9.07
%
8.85
%
4
26
9.11
%
8.85
%
26
Additional Metrics
Banking centers
1,072
1,070
1,073
—
—
1,072
1,073
—
ATMs
2,060
2,067
2,101
—
(2%)
2,060
2,101
(2%)
Full-time equivalent employees
18,579
18,607
18,804
—
(1%)
18,579
18,804
(1%)
Assets under care ($ in billions)(h)
$635
$631
$547
1%
16%
$635
$547
16%
Assets under management ($ in billions)(h)
69
65
57
6%
21%
69
57
21%
(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)
September
June
March
December
September
2024
2024
2024
2023
2023
Income Statement Data
Net interest income
$1,421
$1,387
$1,384
$1,416
$1,438
Net interest income (FTE)(a)
1,427
1,393
1,390
1,423
1,445
Noninterest income
711
695
710
744
715
Total revenue (FTE)(a)
2,138
2,088
2,100
2,167
2,160
Provision for credit losses
160
97
94
55
119
Noninterest expense
1,244
1,221
1,342
1,455
1,188
Net income
573
601
520
530
660
Net income available to common shareholders
532
561
480
492
623
Earnings Per Share Data
Net income allocated to common shareholders
$532
$561
$480
$492
$623
Average common shares outstanding (in thousands):
Basic
680,895
686,781
685,750
684,413
684,224
Diluted
686,109
691,083
690,634
687,729
687,059
Earnings per share, basic
$0.78
$0.82
$0.70
$0.72
$0.91
Earnings per share, diluted
0.78
0.81
0.70
0.72
0.91
Common Share Data
Cash dividends per common share
$0.37
$0.35
$0.35
$0.35
$0.35
Book value per share
27.60
25.13
24.72
25.04
21.19
Market value per share
42.84
36.49
37.21
34.49
25.33
Common shares outstanding (in thousands)
676,269
680,789
683,812
681,125
680,990
Market capitalization
$28,971
$24,842
$25,445
$23,492
$17,249
Financial Ratios
Return on average assets
1.06
%
1.14
%
0.98
%
0.98
%
1.26
%
Return on average common equity
11.7
%
13.6
%
11.6
%
12.9
%
16.3
%
Return on average tangible common equity(a)
16.3
%
19.8
%
17.0
%
19.8
%
24.7
%
Noninterest income as a percent of total revenue(a)
33
%
33
%
34
%
34
%
33
%
Dividend payout
47.4
%
42.7
%
50.0
%
48.6
%
38.5
%
Average total Bancorp shareholders’ equity as a percent of average assets
9.47
%
8.80
%
8.78
%
8.04
%
8.30
%
Tangible common equity(a)
8.00
%
7.92
%
7.77
%
7.67
%
7.49
%
Net interest margin (FTE)(a)
2.90
%
2.88
%
2.86
%
2.85
%
2.98
%
Efficiency (FTE)(a)
58.2
%
58.5
%
63.9
%
67.2
%
55.0
%
Effective tax rate
21.3
%
21.3
%
21.1
%
18.4
%
22.0
%
Credit Quality
Net losses charged-off
$142
$144
$110
$96
$124
Net losses charged-off as a percent of average portfolio loans and leases (annualized)
0.48
%
0.49
%
0.38
%
0.32
%
0.41
%
ALLL as a percent of portfolio loans and leases
1.98
%
1.96
%
1.99
%
1.98
%
1.95
%
ACL as a percent of portfolio loans and leases(g)
2.09
%
2.08
%
2.12
%
2.12
%
2.11
%
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO
0.62
%
0.55
%
0.64
%
0.59
%
0.51
%
Average Balances
Loans and leases, including held for sale
$117,415
$117,283
$117,699
$119,309
$122,266
Securities and other short-term investments
78,421
77,216
77,650
78,857
69,950
Assets
213,838
212,475
213,203
214,057
208,385
Transaction deposits(b)
153,154
151,680
152,357
153,232
150,088
Core deposits(c)
163,697
162,447
162,601
163,788
159,718
Wholesale funding(d)
23,415
24,180
24,771
26,115
24,289
Bancorp shareholders’ equity
20,251
18,707
18,727
17,201
17,305
Regulatory Capital Ratios(e)(f)
CET1 capital
10.75
%
10.62
%
10.47
%
10.29
%
9.80
%
Tier 1 risk-based capital
12.07
%
11.93
%
11.77
%
11.59
%
11.06
%
Total risk-based capital
14.12
%
13.95
%
13.81
%
13.72
%
13.13
%
Leverage
9.11
%
9.07
%
8.94
%
8.73
%
8.85
%
Additional Metrics
Banking centers
1,072
1,070
1,070
1,088
1,073
ATMs
2,060
2,067
2,082
2,104
2,101
Full-time equivalent employees
18,579
18,607
18,657
18,724
18,804
Assets under care ($ in billions)(h)
$635
$631
$634
$574
$547
Assets under management ($ in billions)(h)
69
65
62
59
57
(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)
September
June
September
September
September
2024
2024
2023
Seq
Yr/Yr
2024
2023
Yr/Yr
Interest Income
Interest and fees on loans and leases
$1,910
$1,871
$1,899
2%
1%
$5,640
$5,445
4%
Interest on securities
461
458
444
1%
4%
1,374
1,320
4%
Interest on other short-term investments
298
291
186
2%
60%
883
348
154%
Total interest income
2,669
2,620
2,529
2%
6%
7,897
7,113
11%
Interest Expense
Interest on deposits
968
958
844
1%
15%
2,880
1,977
46%
Interest on federal funds purchased
2
3
2
(33%)
—
8
13
(38%)
Interest on other short-term borrowings
40
48
52
(17%)
(23%)
135
198
(32%)
Interest on long-term debt
238
224
193
6%
23%
682
514
33%
Total interest expense
1,248
1,233
1,091
1%
14%
3,705
2,702
37%
Net Interest Income
1,421
1,387
1,438
2%
(1%)
4,192
4,411
(5%)
Provision for credit losses
160
97
119
65%
34%
351
460
(24%)
Net Interest Income After Provision for Credit Losses
1,261
1,290
1,319
(2%)
(4%)
3,841
3,951
(3%)
Noninterest Income
Service charges on deposits
161
156
149
3%
8%
467
431
8%
Commercial banking revenue
163
144
154
13%
6%
451
461
(2%)
Mortgage banking net revenue
50
50
57
—
(12%)
154
184
(16%)
Wealth and asset management revenue
163
159
145
3%
12%
483
434
11%
Card and processing revenue
106
108
104
(2%)
2%
316
310
2%
Leasing business revenue
43
38
58
13%
(26%)
120
162
(26%)
Other noninterest income
15
37
55
(59%)
(73%)
103
152
(32%)
Securities gains (losses), net
10
3
(7)
233%
NM
23
3
667%
Total noninterest income
711
695
715
2%
(1%)
2,117
2,137
(1%)
Noninterest Expense
Compensation and benefits
690
656
629
5%
10%
2,099
2,036
3%
Net occupancy expense
81
83
84
(2%)
(4%)
251
248
1%
Technology and communications
121
114
115
6%
5%
351
347
1%
Equipment expense
38
38
37
—
3%
114
110
4%
Card and processing expense
22
21
21
5%
5%
63
63
—
Leasing business expense
21
22
29
(5%)
(28%)
69
94
(27%)
Marketing expense
26
34
35
(24%)
(26%)
92
96
(4%)
Other noninterest expense
245
253
238
(3%)
3%
768
756
2%
Total noninterest expense
1,244
1,221
1,188
2%
5%
3,807
3,750
2%
Income Before Income Taxes
728
764
846
(5%)
(14%)
2,151
2,338
(8%)
Applicable income tax expense
155
163
186
(5%)
(17%)
457
519
(12%)
Net Income
573
601
660
(5%)
(13%)
1,694
1,819
(7%)
Dividends on preferred stock
41
40
37
3%
11%
121
100
21%
Net Income Available to Common Shareholders
$532
$561
$623
(5%)
(15%)
$1,573
$1,719
(8%)
16
Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millions
For the Three Months Ended
(unaudited)
September
June
March
December
September
2024
2024
2024
2023
2023
Interest Income
Interest and fees on loans and leases
$1,910
$1,871
$1,859
$1,889
$1,899
Interest on securities
461
458
455
451
444
Interest on other short-term investments
298
291
294
308
186
Total interest income
2,669
2,620
2,608
2,648
2,529
Interest Expense
Interest on deposits
968
958
954
952
844
Interest on federal funds purchased
2
3
3
3
2
Interest on other short-term borrowings
40
48
47
49
52
Interest on long-term debt
238
224
220
228
193
Total interest expense
1,248
1,233
1,224
1,232
1,091
Net Interest Income
1,421
1,387
1,384
1,416
1,438
Provision for credit losses
160
97
94
55
119
Net Interest Income After Provision for Credit Losses
1,261
1,290
1,290
1,361
1,319
Noninterest Income
Service charges on deposits
161
156
151
146
149
Commercial banking revenue
163
144
143
163
154
Mortgage banking net revenue
50
50
54
66
57
Wealth and asset management revenue
163
159
161
147
145
Card and processing revenue
106
108
102
106
104
Leasing business revenue
43
38
39
46
58
Other noninterest income
15
37
50
54
55
Securities gains (losses), net
10
3
10
16
(7)
Total noninterest income
711
695
710
744
715
Noninterest Expense
Compensation and benefits
690
656
753
659
629
Net occupancy expense
81
83
87
83
84
Technology and communications
121
114
117
117
115
Equipment expense
38
38
37
37
37
Card and processing expense
22
21
20
21
21
Leasing business expense
21
22
25
27
29
Marketing expense
26
34
32
30
35
Other noninterest expense
245
253
271
481
238
Total noninterest expense
1,244
1,221
1,342
1,455
1,188
Income Before Income Taxes
728
764
658
650
846
Applicable income tax expense
155
163
138
120
186
Net Income
573
601
520
530
660
Dividends on preferred stock
41
40
40
38
37
Net Income Available to Common Shareholders
$532
$561
$480
$492
$623
17
Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data
As of
% Change
(unaudited)
September
June
September
2024
2024
2023
Seq
Yr/Yr
Assets
Cash and due from banks
$3,215
$2,837
$2,837
13%
13%
Other short-term investments
21,729
21,085
18,923
3%
15%
Available-for-sale debt and other securities(a)
40,396
38,986
47,893
4%
(16%)
Held-to-maturity securities(b)
11,358
11,443
2
(1%)
NM
Trading debt securities
1,176
1,132
1,222
4%
(4%)
Equity securities
428
476
250
(10%)
71%
Loans and leases held for sale
612
537
614
14%
—
Portfolio loans and leases:
Commercial and industrial loans
50,916
51,840
55,790
(2%)
(9%)
Commercial mortgage loans
11,394
11,429
11,122
—
2%
Commercial construction loans
5,947
5,806
5,582
2%
7%
Commercial leases
2,873
2,708
2,624
6%
9%
Total commercial loans and leases
71,130
71,783
75,118
(1%)
(5%)
Residential mortgage loans
17,166
17,040
17,293
1%
(1%)
Home equity
4,074
3,969
3,898
3%
5%
Indirect secured consumer loans
15,942
15,442
15,434
3%
3%
Credit card
1,703
1,733
1,817
(2%)
(6%)
Solar energy installation loans
4,078
3,951
3,383
3%
21%
Other consumer loans
2,575
2,661
3,145
(3%)
(18%)
Total consumer loans
45,538
44,796
44,970
2%
1%
Portfolio loans and leases
116,668
116,579
120,088
—
(3%)
Allowance for loan and lease losses
(2,305)
(2,288)
(2,340)
1%
(1%)
Portfolio loans and leases, net
114,363
114,291
117,748
—
(3%)
Bank premises and equipment
2,425
2,389
2,303
2%
5%
Operating lease equipment
357
392
480
(9%)
(26%)
Goodwill
4,918
4,918
4,919
—
—
Intangible assets
98
107
136
(8%)
(28%)
Servicing rights
1,656
1,731
1,822
(4%)
(9%)
Other assets
11,587
12,938
13,818
(10%)
(16%)
Total Assets
$214,318
$213,262
$212,967
—
1%
Liabilities
Deposits:
Demand
$41,393
$40,617
$43,844
2%
(6%)
Interest checking
58,572
57,390
53,421
2%
10%
Savings
16,990
17,419
20,195
(2%)
(16%)
Money market
37,482
36,259
33,492
3%
12%
Foreign office
155
119
168
30%
(8%)
CDs $250,000 or less
10,480
10,882
10,306
(4%)
2%
CDs over $250,000
3,268
4,082
6,246
(20%)
(48%)
Total deposits
168,340
166,768
167,672
1%
—
Federal funds purchased
169
194
205
(13%)
(18%)
Other short-term borrowings
1,424
3,370
4,594
(58%)
(69%)
Accrued taxes, interest and expenses
2,034
2,040
1,834
—
11%
Other liabilities
4,471
5,371
5,808
(17%)
(23%)
Long-term debt
17,096
16,293
16,310
5%
5%
Total Liabilities
193,534
194,036
196,423
—
(1%)
Equity
Common stock(c)
2,051
2,051
2,051
—
—
Preferred stock
2,116
2,116
2,116
—
—
Capital surplus
3,784
3,764
3,733
1%
1%
Retained earnings
23,820
23,542
22,747
1%
5%
Accumulated other comprehensive loss
(3,446)
(4,901)
(6,839)
(30%)
(50%)
Treasury stock
(7,541)
(7,346)
(7,264)
3%
4%
Total Equity
20,784
19,226
16,544
8%
26%
Total Liabilities and Equity
$214,318
$213,262
$212,967
—
1%
(a) Amortized cost
$43,754
$43,596
$55,557
—
(21%)
(b) Market values
11,554
11,187
2
3
%
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
676,269
680,789
680,990
—
—
Treasury
247,624
243,103
242,903
2
%
—
18
Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data
As of
(unaudited)
September
June
March
December
September
2024
2024
2024
2023
2023
Assets
Cash and due from banks
$3,215
$2,837
$2,796
$3,142
$2,837
Other short-term investments
21,729
21,085
22,840
22,082
18,923
Available-for-sale debt and other securities(a)
40,396
38,986
38,791
50,419
47,893
Held-to-maturity securities(b)
11,358
11,443
11,520
2
2
Trading debt securities
1,176
1,132
1,151
899
1,222
Equity securities
428
476
380
613
250
Loans and leases held for sale
612
537
339
378
614
Portfolio loans and leases:
Commercial and industrial loans
50,916
51,840
52,209
53,270
55,790
Commercial mortgage loans
11,394
11,429
11,346
11,276
11,122
Commercial construction loans
5,947
5,806
5,789
5,621
5,582
Commercial leases
2,873
2,708
2,572
2,579
2,624
Total commercial loans and leases
71,130
71,783
71,916
72,746
75,118
Residential mortgage loans
17,166
17,040
16,995
17,026
17,293
Home equity
4,074
3,969
3,883
3,916
3,898
Indirect secured consumer loans
15,942
15,442
15,306
14,965
15,434
Credit card
1,703
1,733
1,737
1,865
1,817
Solar energy installation loans
4,078
3,951
3,871
3,728
3,383
Other consumer loans
2,575
2,661
2,777
2,988
3,145
Total consumer loans
45,538
44,796
44,569
44,488
44,970
Portfolio loans and leases
116,668
116,579
116,485
117,234
120,088
Allowance for loan and lease losses
(2,305)
(2,288)
(2,318)
(2,322)
(2,340)
Portfolio loans and leases, net
114,363
114,291
114,167
114,912
117,748
Bank premises and equipment
2,425
2,389
2,376
2,349
2,303
Operating lease equipment
357
392
427
459
480
Goodwill
4,918
4,918
4,918
4,919
4,919
Intangible assets
98
107
115
125
136
Servicing rights
1,656
1,731
1,756
1,737
1,822
Other assets
11,587
12,938
12,930
12,538
13,818
Total Assets
$214,318
$213,262
$214,506
$214,574
$212,967
Liabilities
Deposits:
Demand
$41,393
$40,617
$41,849
$43,146
$43,844
Interest checking
58,572
57,390
58,809
57,257
53,421
Savings
16,990
17,419
18,229
18,215
20,195
Money market
37,482
36,259
35,025
34,374
33,492
Foreign office
155
119
129
162
168
CDs $250,000 or less
10,480
10,882
10,337
10,552
10,306
CDs over $250,000
3,268
4,082
5,209
5,206
6,246
Total deposits
168,340
166,768
169,587
168,912
167,672
Federal funds purchased
169
194
247
193
205
Other short-term borrowings
1,424
3,370
2,866
2,861
4,594
Accrued taxes, interest and expenses
2,034
2,040
1,965
2,195
1,834
Other liabilities
4,471
5,371
5,379
4,861
5,808
Long-term debt
17,096
16,293
15,444
16,380
16,310
Total Liabilities
193,534
194,036
195,488
195,402
196,423
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
3,784
3,764
3,742
3,757
3,733
Retained earnings
23,820
23,542
23,224
22,997
22,747
Accumulated other comprehensive loss
(3,446)
(4,901)
(4,888)
(4,487)
(6,839)
Treasury stock
(7,541)
(7,346)
(7,227)
(7,262)
(7,264)
Total Equity
20,784
19,226
19,018
19,172
16,544
Total Liabilities and Equity
$214,318
$213,262
$214,506
$214,574
$212,967
(a) Amortized cost
$43,754
$43,596
$43,400
$55,789
$55,557
(b) Market values
11,554
11,187
11,341
2
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
676,269
680,789
683,812
681,125
680,990
Treasury
247,624
243,103
240,080
242,768
242,903
19
Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months Ended
Year to Date
September
September
September
September
2024
2023
2024
2023
Total Equity, Beginning
$19,226
$17,809
$19,172
$17,327
Impact of cumulative effect of change in accounting principle
—
—
(10)
37
Net income
573
660
1,694
1,819
Other comprehensive income (loss), net of tax:
Change in unrealized losses:
Available-for-sale debt securities
937
(1,218)
760
(1,251)
Qualifying cash flow hedges
489
(455)
202
(479)
Amortization of unrealized losses on securities transferred to held-to-maturity
26
—
76
—
Change in accumulated other comprehensive income related to employee benefit plans
1
—
1
1
Other
2
—
2
—
Comprehensive income (loss)
2,028
(1,013)
2,735
90
Cash dividends declared:
Common stock
(254)
(242)
(740)
(698)
Preferred stock
(41)
(37)
(121)
(100)
Impact of stock transactions under stock compensation plans, net
27
27
75
89
Shares acquired for treasury
(202)
—
(327)
(201)
Total Equity, Ending
$20,784
$16,544
$20,784
$16,544
20
Fifth Third Bancorp and Subsidiaries
Average Balance Sheets and Yield/Rate Analysis
For the Three Months Ended
$ in millions
September
June
September
(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)
$51,630
7.15
%
$52,389
7.13
%
$57,015
7.00
%
Commercial mortgage loans(a)
11,488
6.26
%
11,353
6.26
%
11,216
6.12
%
Commercial construction loans(a)
5,982
7.14
%
5,917
7.14
%
5,540
6.93
%
Commercial leases(a)
2,686
4.53
%
2,576
4.33
%
2,618
3.75
%
Total commercial loans and leases
71,786
6.91
%
72,235
6.90
%
76,389
6.75
%
Residential mortgage loans
17,604
3.71
%
17,363
3.66
%
18,019
3.52
%
Home equity
4,018
8.40
%
3,929
8.37
%
3,897
8.17
%
Indirect secured consumer loans
15,680
5.42
%
15,373
5.18
%
15,787
4.43
%
Credit card
1,708
14.00
%
1,728
12.86
%
1,808
14.09
%
Solar energy installation loans
3,990
8.12
%
3,916
8.35
%
3,245
6.42
%
Other consumer loans
2,629
9.37
%
2,739
9.17
%
3,121
8.93
%
Total consumer loans
45,629
5.81
%
45,048
5.69
%
45,877
5.22
%
Total loans and leases
117,415
6.48
%
117,283
6.43
%
122,266
6.18
%
Securities:
Taxable securities
55,329
3.25
%
55,241
3.27
%
55,519
3.10
%
Tax exempt securities(a)
1,378
3.30
%
1,366
3.27
%
1,475
3.21
%
Other short-term investments
21,714
5.47
%
20,609
5.67
%
12,956
5.69
%
Total interest-earning assets
195,836
5.43
%
194,499
5.43
%
192,216
5.23
%
Cash and due from banks
2,664
2,637
2,576
Other assets
17,626
17,656
15,920
Allowance for loan and lease losses
(2,288)
(2,317)
(2,327)
Total Assets
$213,838
$212,475
$208,385
Liabilities
Interest-bearing liabilities:
Interest checking deposits
$58,441
3.38
%
$57,999
3.39
%
$53,109
3.18
%
Savings deposits
17,272
0.71
%
17,747
0.67
%
20,511
0.89
%
Money market deposits
37,257
3.06
%
35,511
3.00
%
32,072
2.50
%
Foreign office deposits
164
1.97
%
157
2.11
%
168
1.72
%
CDs $250,000 or less
10,543
4.07
%
10,767
4.22
%
9,630
3.97
%
Total interest-bearing core deposits
123,677
2.97
%
122,181
2.95
%
115,490
2.65
%
CDs over $250,000
3,499
5.08
%
4,747
5.16
%
5,926
4.91
%
Total interest-bearing deposits
127,176
3.03
%
126,928
3.04
%
121,416
2.76
%
Federal funds purchased
176
5.34
%
230
5.41
%
181
5.31
%
Securities sold under repurchase agreements
396
2.36
%
373
1.97
%
352
1.46
%
FHLB advances
2,576
5.59
%
3,165
5.71
%
3,726
5.26
%
Derivative collateral and other secured borrowings
52
14.76
%
54
6.87
%
48
7.82
%
Long-term debt
16,716
5.65
%
15,611
5.78
%
14,056
5.46
%
Total interest-bearing liabilities
147,092
3.38
%
146,361
3.39
%
139,779
3.10
%
Demand deposits
40,020
40,266
44,228
Other liabilities
6,475
7,141
7,073
Total Liabilities
193,587
193,768
191,080
Total Equity
20,251
18,707
17,305
Total Liabilities and Equity
$213,838
$212,475
$208,385
Ratios:
Net interest margin (FTE)(b)
2.90
%
2.88
%
2.98
%
Net interest rate spread (FTE)(b)
2.05
%
2.04
%
2.13
%
Interest-bearing liabilities to interest-earning assets
75.11
%
75.25
%
72.72
%
(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
September
September
(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)
$52,423
7.12
%
$57,786
6.73
%
Commercial mortgage loans(a)
11,394
6.27
%
11,237
5.87
%
Commercial construction loans(a)
5,877
7.16
%
5,527
6.74
%
Commercial leases(a)
2,602
4.37
%
2,661
3.59
%
Total commercial loans and leases
72,296
6.89
%
77,211
6.50
%
Residential mortgage loans
17,412
3.64
%
18,168
3.43
%
Home equity
3,960
8.35
%
3,946
7.34
%
Indirect secured consumer loans
15,410
5.18
%
16,219
4.19
%
Credit card
1,736
13.53
%
1,790
14.06
%
Solar energy installation loans
3,900
8.08
%
2,734
5.68
%
Other consumer loans
2,752
9.16
%
3,216
8.67
%
Total consumer loans
45,170
5.68
%
46,073
4.95
%
Total loans and leases
117,466
6.43
%
123,284
5.92
%
Securities:
Taxable securities
55,196
3.26
%
56,127
3.08
%
Tax exempt securities(a)
1,395
3.28
%
1,459
3.17
%
Other short-term investments
21,174
5.57
%
8,708
5.34
%
Total interest-earning assets
195,231
5.42
%
189,578
5.03
%
Cash and due from banks
2,681
2,776
Other assets
17,571
16,405
Allowance for loan and lease losses
(2,309)
(2,231)
Total Assets
$213,174
$206,528
Liabilities
Interest-bearing liabilities:
Interest checking deposits
$58,372
3.39
%
$50,782
2.79
%
Savings deposits
17,707
0.69
%
21,755
0.73
%
Money market deposits
35,791
2.99
%
29,815
1.88
%
Foreign office deposits
156
2.16
%
151
1.63
%
CDs $250,000 or less
10,518
4.15
%
7,537
3.51
%
Total interest-bearing core deposits
122,544
2.95
%
110,040
2.19
%
CDs over $250,000
4,585
5.16
%
5,222
4.57
%
Total interest-bearing deposits
127,129
3.03
%
115,262
2.29
%
Federal funds purchased
202
5.39
%
347
4.89
%
Securities sold under repurchase agreements
378
2.06
%
347
1.13
%
FHLB advances
2,949
5.68
%
5,035
4.99
%
Derivative collateral and other secured borrowings
55
9.50
%
123
8.10
%
Long-term debt
15,951
5.71
%
13,474
5.09
%
Total interest-bearing liabilities
146,664
3.37
%
134,588
2.68
%
Demand deposits
40,374
47,138
Other liabilities
6,904
6,929
Total Liabilities
193,942
188,655
Total Equity
19,232
17,873
Total Liabilities and Equity
$213,174
$206,528
Ratios:
Net interest margin (FTE)(b)
2.88
%
3.12
%
Net interest rate spread (FTE)(b)
2.05
%
2.35
%
Interest-bearing liabilities to interest-earning assets
75.12
%
70.99
%
(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)
September
June
March
December
September
2024
2024
2024
2023
2023
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans
$51,615
$52,357
$53,183
$54,633
$57,001
Commercial mortgage loans
11,488
11,352
11,339
11,338
11,216
Commercial construction loans
5,981
5,917
5,732
5,727
5,539
Commercial leases
2,685
2,575
2,542
2,535
2,616
Total commercial loans and leases
71,769
72,201
72,796
74,233
76,372
Consumer loans:
Residential mortgage loans
17,031
17,004
16,977
17,129
17,400
Home equity
4,018
3,929
3,933
3,905
3,897
Indirect secured consumer loans
15,680
15,373
15,172
15,129
15,787
Credit card
1,708
1,728
1,773
1,829
1,808
Solar energy installation loans
3,990
3,916
3,794
3,630
3,245
Other consumer loans
2,630
2,740
2,889
3,003
3,121
Total consumer loans
45,057
44,690
44,538
44,625
45,258
Total average portfolio loans and leases
$116,826
$116,891
$117,334
$118,858
$121,630
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale
$16
$33
$74
$72
$17
Consumer loans held for sale
573
359
291
379
619
Average loans and leases held for sale
$589
$392
$365
$451
$636
End of Period Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans
$50,916
$51,840
$52,209
$53,270
$55,790
Commercial mortgage loans
11,394
11,429
11,346
11,276
11,122
Commercial construction loans
5,947
5,806
5,789
5,621
5,582
Commercial leases
2,873
2,708
2,572
2,579
2,624
Total commercial loans and leases
71,130
71,783
71,916
72,746
75,118
Consumer loans:
Residential mortgage loans
17,166
17,040
16,995
17,026
17,293
Home equity
4,074
3,969
3,883
3,916
3,898
Indirect secured consumer loans
15,942
15,442
15,306
14,965
15,434
Credit card
1,703
1,733
1,737
1,865
1,817
Solar energy installation loans
4,078
3,951
3,871
3,728
3,383
Other consumer loans
2,575
2,661
2,777
2,988
3,145
Total consumer loans
45,538
44,796
44,569
44,488
44,970
Total portfolio loans and leases
$116,668
$116,579
$116,485
$117,234
$120,088
End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale
$100
$25
$32
$44
$81
Consumer loans held for sale
512
512
307
334
533
Loans and leases held for sale
$612
$537
$339
$378
$614
Operating lease equipment
$357
$392
$427
$459
$480
Loans and Leases Serviced for Others(a)
Commercial and industrial loans
$1,178
$1,201
$1,197
$1,231
$1,217
Commercial mortgage loans
515
616
632
655
711
Commercial construction loans
342
309
293
283
288
Commercial leases
773
730
703
703
721
Residential mortgage loans
95,808
97,280
99,596
100,842
101,889
Solar energy installation loans
610
625
641
658
673
Other consumer loans
126
133
139
146
154
Total loans and leases serviced for others
99,352
100,894
103,201
104,518
105,653
Total loans and leases owned or serviced
$216,989
$218,402
$220,452
$222,589
$226,835
(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)
September
June
March
December
September
2024(a)
2024
2024
2023
2023
Regulatory Capital(b)
CET1 capital
$17,271
$17,160
$16,931
$16,800
$16,510
Additional tier 1 capital
2,116
2,116
2,116
2,116
2,116
Tier 1 capital
19,387
19,276
19,047
18,916
18,626
Tier 2 capital
3,304
3,275
3,288
3,484
3,485
Total regulatory capital
$22,691
$22,551
$22,335
$22,400
$22,111
Risk-weighted assets
$160,664
$161,636
$161,769
$163,223
$168,433
Ratios
Average total Bancorp shareholders' equity as a percent of average assets
9.47
%
8.80
%
8.78
%
8.04
%
8.30
%
Regulatory Capital Ratios(b)
Fifth Third Bancorp
CET1 capital
10.75
%
10.62
%
10.47
%
10.29
%
9.80
%
Tier 1 risk-based capital
12.07
%
11.93
%
11.77
%
11.59
%
11.06
%
Total risk-based capital
14.12
%
13.95
%
13.81
%
13.72
%
13.13
%
Leverage
9.11
%
9.07
%
8.94
%
8.73
%
8.85
%
Fifth Third Bank, National Association
Tier 1 risk-based capital
12.98
%
12.81
%
12.65
%
12.42
%
11.96
%
Total risk-based capital
14.32
%
14.14
%
13.99
%
13.85
%
13.38
%
Leverage
9.82
%
9.76
%
9.61
%
9.38
%
9.59
%
(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)
September
June
March
December
September
2024
2024
2024
2023
2023
Average portfolio loans and leases:
Commercial and industrial loans
$51,615
$52,357
$53,183
$54,633
$57,001
Commercial mortgage loans
11,488
11,352
11,339
11,338
11,216
Commercial construction loans
5,981
5,917
5,732
5,727
5,539
Commercial leases
2,685
2,575
2,542
2,535
2,616
Total commercial loans and leases
71,769
72,201
72,796
74,233
76,372
Residential mortgage loans
17,031
17,004
16,977
17,129
17,400
Home equity
4,018
3,929
3,933
3,905
3,897
Indirect secured consumer loans
15,680
15,373
15,172
15,129
15,787
Credit card
1,708
1,728
1,773
1,829
1,808
Solar energy installation loans
3,990
3,916
3,794
3,630
3,245
Other consumer loans
2,630
2,740
2,889
3,003
3,121
Total consumer loans
45,057
44,690
44,538
44,625
45,258
Total average portfolio loans and leases
$116,826
$116,891
$117,334
$118,858
$121,630
Losses charged-off:
Commercial and industrial loans
($80)
($83)
($40)
($30)
($70)
Commercial mortgage loans
—
—
—
—
—
Commercial construction loans
—
—
—
—
—
Commercial leases
—
—
—
—
—
Total commercial loans and leases
(80)
(83)
(40)
(30)
(70)
Residential mortgage loans
—
(1)
—
(1)
(1)
Home equity
(1)
(1)
(2)
(2)
(2)
Indirect secured consumer loans
(35)
(31)
(35)
(35)
(27)
Credit card
(21)
(22)
(23)
(22)
(19)
Solar energy installation loans
(16)
(14)
(14)
(11)
(8)
Other consumer loans
(30)
(30)
(32)
(32)
(31)
Total consumer loans
(103)
(99)
(106)
(103)
(88)
Total losses charged-off
($183)
($182)
($146)
($133)
($158)
Recoveries of losses previously charged-off:
Commercial and industrial loans
$8
$3
$5
$2
$5
Commercial mortgage loans
—
—
—
3
—
Commercial construction loans
—
—
—
—
—
Commercial leases
—
—
—
—
1
Total commercial loans and leases
8
3
5
5
6
Residential mortgage loans
1
1
—
1
1
Home equity
1
2
2
2
2
Indirect secured consumer loans
13
14
11
10
8
Credit card
5
5
5
4
4
Solar energy installation loans
2
2
2
1
—
Other consumer loans
11
11
11
14
13
Total consumer loans
33
35
31
32
28
Total recoveries of losses previously charged-off
$41
$38
$36
$37
$34
Net losses charged-off:
Commercial and industrial loans
($72)
($80)
($35)
($28)
($65)
Commercial mortgage loans
—
—
—
3
—
Commercial construction loans
—
—
—
—
—
Commercial leases
—
—
—
—
1
Total commercial loans and leases
(72)
(80)
(35)
(25)
(64)
Residential mortgage loans
1
—
—
—
—
Home equity
—
1
—
—
—
Indirect secured consumer loans
(22)
(17)
(24)
(25)
(19)
Credit card
(16)
(17)
(18)
(18)
(15)
Solar energy installation loans
(14)
(12)
(12)
(10)
(8)
Other consumer loans
(19)
(19)
(21)
(18)
(18)
Total consumer loans
(70)
(64)
(75)
(71)
(60)
Total net losses charged-off
($142)
($144)
($110)
($96)
($124)
Net losses charged-off as a percent of average portfolio loans and leases (annualized):
Commercial and industrial loans
0.55
%
0.61
%
0.27
%
0.20
%
0.45
%
Commercial mortgage loans
—
0.01
%
—
(0.10
%)
—
Commercial construction loans
—
—
—
—
—
Commercial leases
(0.01
%)
(0.01
%)
(0.04
%)
0.01
%
(0.08
%)
Total commercial loans and leases
0.40
%
0.45
%
0.19
%
0.13
%
0.34
%
Residential mortgage loans
(0.02
%)
(0.01
%)
(0.01
%)
(0.01
%)
—
Home equity
(0.02
%)
(0.05
%)
0.03
%
0.05
%
0.03
%
Indirect secured consumer loans
0.54
%
0.46
%
0.64
%
0.64
%
0.47
%
Credit card
3.74
%
3.98
%
4.19
%
3.90
%
3.25
%
Solar energy installation loans
1.44
%
1.25
%
1.31
%
1.09
%
0.91
%
Other consumer loans
3.00
%
2.61
%
2.71
%
2.60
%
2.46
%
Total consumer loans
0.62
%
0.57
%
0.67
%
0.64
%
0.53
%
Total net losses charged-off as a percent of average portfolio loans and leases (annualized)
0.48
%
0.49
%
0.38
%
0.32
%
0.41
%
25
Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millions
For the Three Months Ended
(unaudited)
September
June
March
December
September
2024
2024
2024
2023
2023
Allowance for Credit Losses
Allowance for loan and lease losses, beginning
$2,288
$2,318
$2,322
$2,340
$2,327
Total net losses charged-off
(142)
(144)
(110)
(96)
(124)
Provision for loan and lease losses
159
114
106
78
137
Allowance for loan and lease losses, ending
$2,305
$2,288
$2,318
$2,322
$2,340
Reserve for unfunded commitments, beginning
$137
$154
$166
$189
$207
Provision for (benefit from) the reserve for unfunded commitments
1
(17)
(12)
(23)
(18)
Reserve for unfunded commitments, ending
$138
$137
$154
$166
$189
Components of allowance for credit losses:
Allowance for loan and lease losses
$2,305
$2,288
$2,318
$2,322
$2,340
Reserve for unfunded commitments
138
137
154
166
189
Total allowance for credit losses
$2,443
$2,425
$2,472
$2,488
$2,529
As of
September
June
March
December
September
2024
2024
2024
2023
2023
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
Commercial and industrial loans
$255
$234
$332
$304
$262
Commercial mortgage loans
78
38
39
20
18
Commercial construction loans
1
1
1
1
—
Commercial leases
—
1
—
1
1
Residential mortgage loans
131
129
137
124
127
Home equity
67
61
60
57
58
Indirect secured consumer loans
50
36
32
36
31
Credit card
31
31
32
34
32
Solar energy installation loans
64
66
65
60
28
Other consumer loans
9
9
10
12
13
Total nonaccrual portfolio loans and leases
686
606
708
649
570
Repossessed property
11
9
8
10
11
OREO
28
28
27
29
31
Total nonperforming portfolio loans and leases and OREO
725
643
743
688
612
Nonaccrual loans held for sale
8
4
5
1
6
Total nonperforming assets
$733
$647
$748
$689
$618
Loans and leases 90 days past due (accrual):
Commercial and industrial loans
$10
$3
$9
$8
$3
Commercial mortgage loans
3
1
—
—
—
Commercial leases
1
4
2
—
—
Total commercial loans and leases
14
8
11
8
3
Residential mortgage loans(c)
8
8
5
7
6
Credit card
18
17
19
21
20
Total consumer loans
26
25
24
28
26
Total loans and leases 90 days past due (accrual)(b)
$40
$33
$35
$36
$29
Ratios
Net losses charged-off as a percent of average portfolio loans and leases (annualized)
0.48
%
0.49
%
0.38
%
0.32
%
0.41
%
Allowance for credit losses:
As a percent of portfolio loans and leases
2.09
%
2.08
%
2.12
%
2.12
%
2.11
%
As a percent of nonperforming portfolio loans and leases(a)
356
%
400
%
349
%
383
%
443
%
As a percent of nonperforming portfolio assets(a)
337
%
377
%
333
%
362
%
413
%
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases(a)
0.59
%
0.52
%
0.61
%
0.55
%
0.47
%
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
0.62
%
0.55
%
0.64
%
0.59
%
0.51
%
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property
0.62
%
0.55
%
0.64
%
0.59
%
0.51
%
(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)
September
June
March
December
September
2024
2024
2024
2023
2023
Net interest income
$1,421
$1,387
$1,384
$1,416
$1,438
Add: Taxable equivalent adjustment
6
6
6
7
7
Net interest income (FTE) (a)
1,427
1,393
1,390
1,423
1,445
Net interest income (annualized) (b)
5,653
5,578
5,566
5,618
5,705
Net interest income (FTE) (annualized) (c)
5,677
5,603
5,591
5,646
5,733
Interest income
2,669
2,620
2,608
2,648
2,529
Add: Taxable equivalent adjustment
6
6
6
7
7
Interest income (FTE)
2,675
2,626
2,614
2,655
2,536
Interest income (FTE) (annualized) (d)
10,642
10,562
10,513
10,533
10,061
Interest expense (annualized) (e)
4,965
4,959
4,923
4,888
4,328
Average interest-earning assets (f)
195,836
194,499
195,349
198,166
192,216
Average interest-bearing liabilities (g)
147,092
146,361
146,533
146,507
139,779
Net interest margin (b) / (f)
2.89
%
2.87
%
2.85
%
2.83
%
2.97
%
Net interest margin (FTE) (c) / (f)
2.90
%
2.88
%
2.86
%
2.85
%
2.98
%
Net interest rate spread (FTE) (d) / (f) - (e) / (g)
2.05
%
2.04
%
2.02
%
1.97
%
2.13
%
Income before income taxes
$728
$764
$658
$650
$846
Add: Taxable equivalent adjustment
6
6
6
7
7
Income before income taxes (FTE)
734
770
664
657
853
Net income available to common shareholders
532
561
480
492
623
Add: Intangible amortization, net of tax
7
7
8
8
8
Tangible net income available to common shareholders (h)
539
568
488
500
631
Tangible net income available to common shareholders (annualized) (i)
2,144
2,284
1,963
1,984
2,503
Average Bancorp shareholders’ equity
20,251
18,707
18,727
17,201
17,305
Less:
Average preferred stock
(2,116)
(2,116)
(2,116)
(2,116)
(2,116)
Average goodwill
(4,918)
(4,918)
(4,918)
(4,919)
(4,919)
Average intangible assets
(103)
(111)
(121)
(130)
(141)
Average tangible common equity, including AOCI (j)
13,114
11,562
11,572
10,036
10,129
Less:
Average AOCI
3,914
5,278
4,938
6,244
5,835
Average tangible common equity, excluding AOCI (k)
17,028
16,840
16,510
16,280
15,964
Total Bancorp shareholders’ equity
20,784
19,226
19,018
19,172
16,544
Less:
Preferred stock
(2,116)
(2,116)
(2,116)
(2,116)
(2,116)
Goodwill
(4,918)
(4,918)
(4,918)
(4,919)
(4,919)
Intangible assets
(98)
(107)
(115)
(125)
(136)
Tangible common equity, including AOCI (l)
13,652
12,085
11,869
12,012
9,373
Less:
AOCI
3,446
4,901
4,888
4,487
6,839
Tangible common equity, excluding AOCI (m)
17,098
16,986
16,757
16,499
16,212
Add:
Preferred stock
2,116
2,116
2,116
2,116
2,116
Tangible equity (n)
19,214
19,102
18,873
18,615
18,328
Total assets
214,318
213,262
214,506
214,574
212,967
Less:
Goodwill
(4,918)
(4,918)
(4,918)
(4,919)
(4,919)
Intangible assets
(98)
(107)
(115)
(125)
(136)
Tangible assets, including AOCI (o)
209,302
208,237
209,473
209,530
207,912
Less:
AOCI, before tax
4,362
6,204
6,187
5,680
8,657
Tangible assets, excluding AOCI (p)
$213,664
$214,441
$215,660
$215,210
$216,569
Common shares outstanding (q)
676
681
684
681
681
Tangible equity (n) / (p)
8.99
%
8.91
%
8.75
%
8.65
%
8.46
%
Tangible common equity (excluding AOCI) (m) / (p)
8.00
%
7.92
%
7.77
%
7.67
%
7.49
%
Tangible common equity (including AOCI) (l) / (o)
6.52
%
5.80
%
5.67
%
5.73
%
4.51
%
Tangible book value per share (including AOCI) (l) / (q)
$20.20
$17.75
$17.35
$17.64
$13.76
Tangible book value per share (excluding AOCI) (m) / (q)
$25.29
$24.94
$24.50
$24.23
$23.81
28
Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ in millions
For the Three Months Ended
(unaudited)
September
June
September
2024
2024
2023
Net income (r)
$573
$601
$660
Net income (annualized) (s)
2,280
2,417
2,618
Adjustments (pre-tax items)
Valuation of Visa total return swap
47
23
10
Mastercard litigation
10
—
—
Legal settlements and remediations
—
18
—
Restructuring severance expense
9
—
—
FDIC special assessment
—
6
—
Adjustments, after-tax (t)(a) (b)
51
37
8
Net interest income (FTE) (u)
1,427
1,393
1,445
Legal settlements and remediations
—
5
—
Adjusted net interest income (FTE) (v)
1,427
1,398
1,445
Adjusted net interest income (FTE) (annualized) (w)
5,677
5,623
5,733
Noninterest income (x)
711
695
715
Valuation of Visa total return swap
47
23
10
Legal settlements and remediations
—
2
—
Adjusted noninterest income (y)
758
720
725
Noninterest expense (z)
1,244
1,221
1,188
Mastercard litigation
(10)
—
—
Restructuring severance expense
(9)
—
—
Legal settlements and remediations
—
(11)
FDIC special assessment
—
(6)
—
Adjusted noninterest expense (aa)
1,225
1,204
1,188
Adjusted net income (r) + (t)
624
638
668
Adjusted net income (annualized) (ab)
2,482
2,566
2,650
Adjusted tangible net income available to common shareholders (h) + (t)
590
605
639
Adjusted tangible net income available to common shareholders (annualized) (ac)
2,347
2,433
2,535
Average assets (ad)
$213,838
$212,475
$208,385
Return on average tangible common equity (i) / (j)
16.3
%
19.8
%
24.7
%
Return on average tangible common equity excluding AOCI (i) / (k)
12.6
%
13.6
%
15.7
%
Adjusted return on average tangible common equity, including AOCI (ac) / (j)
17.9
%
21.0
%
25.0
%
Adjusted return on average tangible common equity, excluding AOCI (ac) / (k)
13.8
%
14.4
%
15.9
%
Return on average assets (s) / (ad)
1.06
%
1.14
%
1.26
%
Adjusted return on average assets (ab) / (ad)
1.16
%
1.21
%
1.27
%
Efficiency ratio (FTE) (z) / [(u) + (x)]
58.2
%
58.5
%
55.0
%
Adjusted efficiency ratio (aa) / [(v) + (y)]
56.1
%
56.8
%
54.7
%
Net interest margin (FTE) (c) / (f)
2.90
%
2.88
%
2.98
%
Adjusted net interest margin (FTE) (w) / (f)
2.90
%
2.89
%
2.98
%
Total revenue (FTE) (u) + (x)
$2,138
$2,088
$2,160
Adjusted total revenue (FTE) (v) + (y)
$2,185
$2,118
$2,170
Pre-provision net revenue (PPNR) (u) + (x) - (z)
$894
$867
$972
Adjusted pre-provision net revenue (PPNR) (v) + (y) - (aa)
$960
$914
$982
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 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
For the three months ended September 30, 2023
Commercial Banking
Consumer and Small Business Banking
Wealth
and Asset Management
General Corporate
and Other
Total
Net interest income (FTE)(a)
$1,012
$1,390
$98
$(1,055)
$1,445
Provision for credit losses
—
(105)
(1)
(13)
(119)
Net interest income after provision for credit losses
1,012
1,285
97
(1,068)
1,326
Noninterest income
353
274
94
(6)
715
Noninterest expense
(478)
(624)
(90)
4
(1,188)
Income (loss) before income taxes
887
935
101
(1,070)
853
Applicable income tax (expense) benefit(a)
(169)
(196)
(22)
194
(193)
Net income (loss)
$718
$739
$79
$(876)
$660
(a) Includes taxable equivalent adjustments of $6 million for the three months ended September 30, 2024, June 30, 2024 and March 31, 2024 and $7 million for the three months ended December 31, 2023 and September 30, 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 | 4 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 2 | — | — |
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