Grew deposits year-over-year and further
strengthened liquidity and capital positions
Reported results included a negative $0.06
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
1Q24
4Q23
1Q23
Stability:
- Average deposits increased 5% compared to 1Q23
- Net charge-offs, NPAs, and delinquencies remain below
historical levels; zero CRE net charge-offs during the quarter
- Loan-to-core deposit ratio of 71%
- CET1 capital increased 15 bps sequentially to 10.44% reflecting
consistent and strong earnings power
Profitability:
- Strong fee performance driven by 10% growth in wealth and asset
management revenue and 11% in treasury management fees compared to
1Q23
- Interest-bearing deposit costs stabilized; increased only 1 bp
compared to 4Q23
- Disciplined expense management; expenses increased 1%; adjusted
expenses(a) decreased 1% compared to 1Q23
Growth:
- Generated consumer household growth of 3% compared to 1Q23
- Fifth Third Wealth Advisors surpassed $1 billion in assets
under management
Income Statement Data
Net income available to common
shareholders
$480
$492
$535
Net interest income (U.S. GAAP)
1,384
1,416
1,517
Net interest income (FTE)(a)
1,390
1,423
1,522
Noninterest income
710
744
696
Noninterest expense
1,342
1,455
1,331
Per Share Data
Earnings per share, basic
$0.70
$0.72
$0.78
Earnings per share, diluted
0.70
0.72
0.78
Book value per share
24.72
25.04
23.87
Tangible book value per share(a)
17.35
17.64
16.41
Balance Sheet & Credit
Quality
Average portfolio loans and leases
$117,334
$118,858
$122,812
Average deposits
168,122
169,447
160,645
Accumulated other comprehensive loss
(4,888)
(4,487)
(4,245)
Net charge-off ratio(b)
0.38
%
0.32
%
0.26
%
Nonperforming asset ratio(c)
0.64
0.59
0.51
Financial Ratios
Return on average assets
0.98
%
0.98
%
1.10
%
Return on average common equity
11.6
12.9
13.7
Return on average tangible common
equity(a)
17.0
19.8
20.5
CET1 capital(d)(e)
10.44
10.29
9.28
Net interest margin(a)
2.86
2.85
3.29
Efficiency(a)
63.9
67.2
60.0
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’s financial results once again reflected balance
sheet strength, well-managed deposit costs, disciplined credit risk
management, and diversified revenue streams. Expenses remain
well-controlled and were down slightly year-over-year when
excluding certain items.
Our balance sheet positioning and deposit performance provide
flexibility in managing through a range of uncertain economic and
regulatory environments. Our credit metrics remain below historical
levels, with net charge-offs for the quarter in line with our
expectations.
We continue to prudently invest in our strategic priorities as
highlighted by strong growth in our treasury management fees and
wealth and asset management revenue. We also extended our track
record of strong organic growth, adding net new households in
consumer and new quality relationships in commercial.
While the economic and regulatory environments remain uncertain,
we remain well positioned to respond to a range of potential
outcomes. We will continue to follow 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
March
December
March
2024
2023
2023
Seq
Yr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,390
$1,423
$1,522
(2)%
(9)%
Provision for credit losses
94
55
164
71%
(43)%
Noninterest income
710
744
696
(5)%
2%
Noninterest expense
1,342
1,455
1,331
(8)%
1%
Income before income taxes(a)
$664
$657
$723
1%
(8)%
Taxable equivalent adjustment
$6
$7
$5
(14)%
20%
Applicable income tax expense
138
120
160
15%
(14)%
Net income
$520
$530
$558
(2)%
(7)%
Dividends on preferred stock
40
38
23
5%
74%
Net income available to common
shareholders
$480
$492
$535
(2)%
(10)%
Earnings per share, diluted
$0.70
$0.72
$0.78
(3)%
(10)%
Fifth Third Bancorp (NASDAQ®: FITB) today reported first quarter
2024 net income of $520 million compared to net income of $530
million in the prior quarter and $558 million in the year-ago
quarter. Net income available to common shareholders in the current
quarter was $480 million, or $0.70 per diluted share, compared to
$492 million, or $0.72 per diluted share, in the prior quarter and
$535 million, or $0.78 per diluted share, in the year-ago
quarter.
Diluted earnings per share impact of
certain item(s) - 1Q24
(after-tax impact(f); $ in millions,
except per share data)
Update to the FDIC special assessment
(noninterest expense)
$(25)
Interchange litigation matters
Valuation of Visa total return swap
(noninterest income)
(13)
Mastercard litigation (noninterest
expense)
(4)
subtotal
(17)
After-tax impact(f) of certain items
$(42)
Diluted earnings per share impact of
certain item(s)1
$(0.06)
Totals may not foot due to rounding;
1Diluted earnings per share impact reflects 690.634 million average
diluted shares outstanding
Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended
% Change
March
December
March
2024
2023
2023
Seq
Yr/Yr
Interest Income
Interest income
$2,614
$2,655
$2,218
(2)%
18%
Interest expense
1,224
1,232
696
(1)%
76%
Net interest income (NII)
$1,390
$1,423
$1,522
(2)%
(9)%
Average Yield/Rate Analysis
bps Change
Yield on interest-earning assets
5.38%
5.31%
4.80%
7
58
Rate paid on interest-bearing
liabilities
3.36%
3.34%
2.18%
2
118
Ratios
Net interest rate spread
2.02%
1.97%
2.62%
5
(60)
Net interest margin (NIM)
2.86%
2.85%
3.29%
1
(43)
Compared to the prior quarter, NII decreased $33 million, or 2%,
primarily reflecting lower average commercial loans, the continued
impact of the deposit mix shift from demand to interest-bearing
accounts, and the impact of lower day count, partially offset by
the increased yields on new production of fixed rate consumer
loans. Compared to the prior quarter, NIM increased 1 bp, primarily
reflecting higher loan yields and the impact of day count,
partially offset by the deposit mix shift. 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 exceeding $25 billion at quarter-end.
Compared to the year-ago quarter, NII decreased $132 million, or
9%, reflecting the impact of higher funding costs and deposit mix
shift from demand to interest-bearing accounts, partially offset by
higher loan yields. Compared to the year-ago quarter, NIM decreased
43 bps, reflecting the impact of higher market rates and their
effects on deposit pricing and the decision to carry additional
cash, partially offset by higher loan yields.
Noninterest Income
($ in millions)
For the Three Months Ended
% Change
March
December
March
2024
2023
2023
Seq
Yr/Yr
Noninterest Income
Service charges on deposits
$151
$146
$137
3%
10%
Commercial banking revenue
143
163
161
(12)%
(11)%
Mortgage banking net revenue
54
66
69
(18)%
(22)%
Wealth and asset management revenue
161
147
146
10%
10%
Card and processing revenue
102
106
100
(4)%
2%
Leasing business revenue
39
46
57
(15)%
(32)%
Other noninterest income
50
54
22
(7)%
127%
Securities gains, net
10
15
4
(33)%
150%
Securities gains, net - non-qualifying
hedges
on mortgage servicing rights
—
1
—
(100)%
NM
Total noninterest income
$710
$744
$696
(5)%
2%
Reported noninterest income decreased $34 million, or 5%, from
the prior quarter, and increased $14 million, or 2%, from the
year-ago quarter. The reported results reflect the impact of
certain items in the table below, including securities gains/losses
which incorporate mark-to-market impacts from securities associated
with non-qualified deferred compensation plans.
Noninterest Income excluding certain
items
($ in millions)
For the Three Months Ended
March
December
March
% Change
2024
2023
2023
Seq
Yr/Yr
Noninterest Income excluding certain
items
Noninterest income (U.S. GAAP)
$710
$744
$696
Valuation of Visa total return swap
17
22
31
Securities (gains) losses, net
(10)
(15)
(4)
Noninterest income excluding certain
items(a)
$717
$751
$723
(5)%
(1)%
Noninterest income excluding certain items decreased $34
million, or 5%, from the prior quarter, and decreased $6 million,
or 1%, from the year-ago quarter.
Compared to the prior quarter, service charges on deposits
increased $5 million, or 3%, primarily reflecting an increase in
commercial treasury management fees as well as consumer deposit
fees. Commercial banking revenue decreased $20 million, or 12%,
primarily reflecting decreases in institutional brokerage revenue
and client financial risk management revenue, partially offset by
an increase in loan syndication revenue and corporate bond fees.
Mortgage banking net revenue decreased $12 million, or 18%,
primarily reflecting decreases in MSR net valuation adjustments and
origination fees and gains on loan sales, partially offset by a
decrease in MSR asset decay. Wealth and asset management revenue
increased $14 million, or 10%, primarily driven by seasonally
strong tax-related private client service revenue and an increase
in personal asset management revenue. Card and processing revenue
decreased $4 million, or 4%, driven by a decrease in interchange
revenue. Leasing business revenue decreased $7 million, or 15%,
primarily reflecting lower lease remarketing revenue.
Compared to the year-ago quarter, service charges on deposits
increased $14 million, or 10%, primarily reflecting an increase in
commercial treasury management fees. Commercial banking revenue
decreased $18 million, or 11%, primarily reflecting decreases in
client financial risk management revenue, M&A advisory revenue,
and loan syndication revenue, partially offset by an increase in
corporate bond fees. Mortgage banking net revenue decreased $15
million, or 22%, primarily reflecting decreases in MSR net
valuation adjustments and origination fees and gains on loan sales.
Wealth and asset management revenue increased $15 million, or 10%,
primarily reflecting increases in personal asset management revenue
and brokerage fees. Card and processing revenue increased $2
million, or 2%, driven by higher interchange revenue. Leasing
business revenue decreased $18 million, or 32%, reflecting
decreases in operating lease revenue and lease remarketing
revenue.
Noninterest Expense
($ in millions)
For the Three Months Ended
% Change
March
December
March
2024
2023
2023
Seq
Yr/Yr
Noninterest Expense
Compensation and benefits
$753
$659
$757
14%
(1)%
Net occupancy expense
87
83
81
5%
7%
Technology and communications
117
117
118
—
(1)%
Equipment expense
37
37
37
—
—
Card and processing expense
20
21
22
(5)%
(9)%
Leasing business expense
25
27
34
(7)%
(26)%
Marketing expense
32
30
29
7%
10%
Other noninterest expense
271
481
253
(44)%
7%
Total noninterest expense
$1,342
$1,455
$1,331
(8)%
1%
Reported noninterest expense decreased $113 million, or 8%, from
the prior quarter, and increased $11 million, or 1%, from the
year-ago quarter. The reported results reflect the impact of
certain items in the table below.
Noninterest Expense excluding certain
item(s)
($ in millions)
For the Three Months Ended
% Change
March
December
March
2024
2023
2023
Seq
Yr/Yr
Noninterest Expense excluding certain
item(s)
Noninterest expense (U.S. GAAP)
$1,342
$1,455
$1,331
FDIC special assessment
(33)
(224)
—
Mastercard litigation
(5)
—
—
Fifth Third Foundation contribution
—
(15)
—
Restructuring severance expense
—
(5)
(12)
Noninterest expense excluding certain
item(s)(a)
$1,304
$1,211
$1,319
8%
(1)%
Compared to the prior quarter, noninterest expense excluding
certain items increased $93 million, or 8%, primarily reflecting a
seasonal increase in compensation and benefits expense. Noninterest
expense in the current quarter included a $15 million expense
related to the impact of non-qualified deferred compensation
mark-to-market compared to a $17 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 decreased $15 million, or 1%, primarily reflecting
decreases in leasing business expense and other noninterest expense
(excluding the aforementioned certain items), offset by increases
in net occupancy expense and marketing expense. The year-ago
quarter included a $12 million expense to noninterest expense
related to non-qualified deferred compensation mark-to-market
(which was largely offset in net securities gains through
noninterest income).
Average Interest-Earning Assets
($ in millions)
For the Three Months Ended
% Change
March
December
March
2024
2023
2023
Seq
Yr/Yr
Average Portfolio Loans and
Leases
Commercial loans and leases:
Commercial and industrial loans
$53,183
$54,633
$58,149
(3)%
(9)%
Commercial mortgage loans
11,339
11,338
11,121
—
2%
Commercial construction loans
5,732
5,727
5,507
—
4%
Commercial leases
2,542
2,535
2,662
—
(5)%
Total commercial loans and leases
$72,796
$74,233
$77,439
(2)%
(6)%
Consumer loans:
Residential mortgage loans
$16,977
$17,129
$17,581
(1)%
(3)%
Home equity
3,933
3,905
4,005
1%
(2)%
Indirect secured consumer loans
15,172
15,129
16,598
—
(9)%
Credit card
1,773
1,829
1,780
(3)%
—
Solar energy installation loans
3,794
3,630
2,169
5%
75%
Other consumer loans
2,889
3,003
3,240
(4)%
(11)%
Total consumer loans
$44,538
$44,625
$45,373
—
(2)%
Total average portfolio loans and
leases
$117,334
$118,858
$122,812
(1)%
(4)%
Average Loans and Leases Held for
Sale
Commercial loans and leases held for
sale
$74
$72
$56
3%
32%
Consumer loans held for sale
291
379
747
(23)%
(61)%
Total average loans and leases held for
sale
$365
$451
$803
(19)%
(55)%
Total average loans and leases
$117,699
$119,309
$123,615
(1)%
(5)%
Securities (taxable and tax-exempt)
$56,456
$57,351
$58,514
(2)%
(4)%
Other short-term investments
21,194
21,506
5,278
(1)%
302%
Total average interest-earning assets
$195,349
$198,166
$187,407
(1)%
4%
Compared to the prior quarter, total average portfolio loans and
leases decreased 1%, primarily reflecting a decrease in commercial
and industrial (C&I) balances driven by lower demand from
corporate borrowers, partially offset by an increase in solar
energy installation loans. Average commercial portfolio loans and
leases decreased 2%, reflecting a decrease in C&I loan
balances. Average consumer portfolio loans were flat, primarily
reflecting an increase in solar energy installation loan balances,
offset by a decrease in residential mortgage loan balances.
Compared to the year-ago quarter, total average portfolio loans
and leases decreased 4%, reflecting decreases in both the
commercial and consumer portfolios. Average commercial portfolio
loans and leases decreased 6%, primarily reflecting a decrease in
C&I loan balances, partially offset by increases in commercial
construction loan balances and commercial mortgage loan balances.
Average consumer portfolio loans decreased 2%, primarily reflecting
decreases in indirect secured consumer loan balances and
residential mortgage loan balances, partially offset by an increase
in solar energy installation loan balances.
Average securities (taxable and tax-exempt; amortized cost) of
$56 billion in the current quarter decreased 2% compared to the
prior quarter and decreased 4% compared to the year-ago quarter.
Average other short-term investments (including interest-bearing
cash) of $21 billion in the current quarter decreased 1% compared
to the prior quarter and increased 302% compared to the year-ago
quarter.
On January 3, 2024, Fifth Third transferred $12.6 billion
(amortized cost) of securities, with an unrealized loss of $994
million, from available-for-sale to held-to-maturity. This transfer
was in response to Fifth Third's decision to hold these securities
to maturity in order to reduce potential capital volatility
associated with investment security market price fluctuations.
Total period-end commercial portfolio loans and leases of $72
billion decreased 1% compared to the prior quarter, primarily
reflecting a decrease in C&I loan balances, partially offset by
an increase in commercial construction loan balances. Compared to
the year-ago quarter, total period-end commercial portfolio loans
decreased 7%, primarily reflecting a decrease in C&I loan
balances, partially offset by an increase in commercial
construction loan balances. Period-end commercial revolving line
utilization was 36%, compared to 35% in the prior quarter and 37%
in the year-ago quarter.
Period-end consumer portfolio loans of $45 billion were flat
compared to the prior quarter, reflecting increases in indirect
secured consumer loan balances and solar energy installation loan
balances, partially offset by decreases in other consumer loan
balances and credit card balances. Compared to the year-ago
quarter, total period-end consumer portfolio loans decreased 2%,
reflecting decreases in indirect secured consumer loan balances and
other loan balances, partially offset by an increase in solar
energy installation loan balances.
Total period-end securities (taxable and tax-exempt; amortized
cost) of $56 billion in the current quarter decreased 2% compared
to the prior quarter and decreased 2% compared to the year-ago
quarter. Period-end other short-term investments of approximately
$23 billion increased 3% compared to the prior quarter, and
increased 133% compared to the year-ago quarter.
Average Deposits
($ in millions)
For the Three Months Ended
% Change
March
December
March
2024
2023
2023
Seq
Yr/Yr
Average Deposits
Demand
$40,839
$43,396
$50,737
(6)%
(20)%
Interest checking
58,677
57,114
48,717
3%
20%
Savings
18,107
18,252
23,107
(1)%
(22)%
Money market
34,589
34,292
28,420
1%
22%
Foreign office(g)
145
178
143
(19)%
1%
Total transaction deposits
$152,357
$153,232
$151,124
(1)%
1%
CDs $250,000 or less
10,244
10,556
5,173
(3)%
98%
Total core deposits
$162,601
$163,788
$156,297
(1)%
4%
CDs over $250,000
5,521
5,659
4,348
(2)%
27%
Total average deposits
$168,122
$169,447
$160,645
(1)%
5%
CDs over $250,000 includes $4.7BN, $4.8BN,
and $4.1BN of retail brokered certificates of deposit which are
fully covered by FDIC insurance for the three months ended 3/31/24,
12/31/23, and 3/31/23, respectively.
Compared to the prior quarter, total average deposits decreased
1%, primarily driven by a decline in demand account balances from
commercial customer seasonal impacts, partially offset by increases
in interest checking and money market balances. Average demand
deposits represented 25% of total core deposits in the current
quarter, compared to 26% in the prior quarter. Compared to the
prior quarter, average consumer segment deposits decreased 1%,
average commercial segment deposits were flat, and average wealth
& asset management segment deposits were flat. Period-end total
deposits were flat compared to the prior quarter.
Compared to the year-ago quarter, total average deposits
increased 5%, 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
increased 4% 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 78%
in the year-ago quarter. Estimated uninsured deposits were
approximately $70 billion, or 41% of total deposits, as of quarter
end.
Average Wholesale Funding
($ in millions)
For the Three Months Ended
% Change
March
December
March
2024
2023
2023
Seq
Yr/Yr
Average Wholesale Funding
CDs over $250,000
$5,521
$5,659
$4,348
(2)%
27%
Federal funds purchased
201
191
487
5%
(59)%
Securities sold under repurchase
agreements
366
350
327
5%
12%
FHLB advances
3,111
3,293
4,803
(6)%
(35)%
Derivative collateral and other secured
borrowings
57
34
245
68%
(77)%
Long-term debt
15,515
16,588
13,510
(6)%
15%
Total average wholesale funding
$24,771
$26,115
$23,720
(5)%
4%
CDs over $250,000 includes $4.7BN, $4.8BN,
and $4.1BN of retail brokered certificates of deposit which are
fully covered by FDIC insurance for the three months ended 3/31/24,
12/31/23, and 3/31/23, respectively.
Compared to the prior quarter, average wholesale funding
decreased 5%, primarily reflecting decreases in long-term debt and
FHLB advances. Compared to the year-ago quarter, average wholesale
funding increased 4%, primarily reflecting an increase in long-term
debt and CDs over $250,000, partially offset by a decrease in FHLB
advances.
Credit Quality Summary
($ in millions)
As of and For the Three Months
Ended
March
December
September
June
March
2024
2023
2023
2023
2023
Total nonaccrual portfolio loans and
leases (NPLs)
$708
$649
$570
$629
$593
Repossessed property
8
10
11
8
8
OREO
27
29
31
24
22
Total nonperforming portfolio loans and
leases and OREO (NPAs)
$743
$688
$612
$661
$623
NPL ratio(h)
0.61%
0.55%
0.47%
0.52%
0.48%
NPA ratio(c)
0.64%
0.59%
0.51%
0.54%
0.51%
Portfolio loans and leases 30-89 days past
due (accrual)
$342
$359
$316
$339
$317
Portfolio loans and leases 90 days past
due (accrual)
35
36
29
51
46
30-89 days past due as a % of portfolio
loans and leases
0.29%
0.31%
0.26%
0.28%
0.26%
90 days past due as a % of portfolio loans
and leases
0.03%
0.03%
0.02%
0.04%
0.04%
Allowance for loan and lease losses
(ALLL), beginning
$2,322
$2,340
$2,327
$2,215
$2,194
Impact of adoption of ASU 2022-02
—
—
—
—
(49)
Total net losses charged-off
(110)
(96)
(124)
(90)
(78)
Provision for loan and lease losses
106
78
137
202
148
ALLL, ending
$2,318
$2,322
$2,340
$2,327
$2,215
Reserve for unfunded commitments,
beginning
$166
$189
$207
$232
$216
(Benefit from) provision for the reserve
for unfunded commitments
(12)
(23)
(18)
(25)
16
Reserve for unfunded commitments,
ending
$154
$166
$189
$207
$232
Total allowance for credit losses
(ACL)
$2,472
$2,488
$2,529
$2,534
$2,447
ACL ratios:
As a % of portfolio loans and leases
2.12%
2.12%
2.11%
2.08%
1.99%
As a % of nonperforming portfolio loans
and leases
349%
383%
443%
403%
413%
As a % of nonperforming portfolio
assets
333%
362%
413%
383%
393%
ALLL as a % of portfolio loans and
leases
1.99%
1.98%
1.95%
1.91%
1.80%
Total losses charged-off
$(146)
$(133)
$(158)
$(121)
$(110)
Total recoveries of losses previously
charged-off
36
37
34
31
32
Total net losses charged-off
$(110)
$(96)
$(124)
$(90)
$(78)
Net charge-off ratio (NCO ratio)(b)
0.38%
0.32%
0.41%
0.29%
0.26%
Commercial NCO ratio
0.19%
0.13%
0.34%
0.16%
0.17%
Consumer NCO ratio
0.67%
0.64%
0.53%
0.50%
0.42%
Nonperforming portfolio loans and leases were $708 million in
the current quarter, with the resulting NPL ratio of 0.61%.
Compared to the prior quarter, NPLs increased $59 million with the
NPL ratio increasing 6 bps. Compared to the year-ago quarter, NPLs
increased $115 million with the NPL ratio increasing 13 bps.
Nonperforming portfolio assets were $743 million in the current
quarter, with the resulting NPA ratio of 0.64%. Compared to the
prior quarter, NPAs increased $55 million with the NPA ratio
increasing 5 bps. Compared to the year-ago quarter, NPAs increased
$120 million with the NPA ratio increasing 13 bps.
The provision for credit losses totaled $94 million in the
current quarter. The allowance for credit loss ratio represented
2.12% of total portfolio loans and leases at quarter end, compared
with 2.12% for the prior quarter end and 1.99% for the year-ago
quarter end. In the current quarter, the allowance for credit
losses represented 349% of nonperforming portfolio loans and leases
and 333% of nonperforming portfolio assets.
Net charge-offs were $110 million in the current quarter,
resulting in an NCO ratio of 0.38%. Compared to the prior quarter,
net charge-offs increased $14 million and the NCO ratio increased 6
bps. Commercial net charge-offs were $35 million, resulting in a
commercial NCO ratio of 0.19%, which increased 6 bps compared to
the prior quarter. Consumer net charge-offs were $75 million,
resulting in a consumer NCO ratio of 0.67%, which increased 3 bps
compared to the prior quarter.
Compared to the year-ago quarter, net charge-offs increased $32
million and the NCO ratio increased 12 bps, reflecting a continued
normalization from near-historically low net charge-offs in the
year-ago quarter. The commercial NCO ratio increased 2 bps compared
to the prior year, and the consumer NCO ratio increased 25 bps
compared to the prior year.
Capital Position
As of and For the Three Months
Ended
March
December
September
June
March
2024
2023
2023
2023
2023
Capital Position
Average total Bancorp shareholders' equity
as a % of average assets
8.78%
8.04%
8.30%
8.90%
8.77%
Tangible equity(a)
8.75%
8.65%
8.46%
8.58%
8.39%
Tangible common equity (excluding
AOCI)(a)
7.77%
7.67%
7.49%
7.57%
7.38%
Tangible common equity (including
AOCI)(a)
5.67%
5.73%
4.51%
5.26%
5.49%
Regulatory Capital Ratios(d)(e)
CET1 capital
10.44%
10.29%
9.80%
9.49%
9.28%
Tier 1 risk-based capital
11.75%
11.59%
11.06%
10.73%
10.53%
Total risk-based capital
13.78%
13.72%
13.13%
12.83%
12.64%
Leverage
8.94%
8.73%
8.85%
8.81%
8.67%
The CET1 capital ratio was 10.44%, the Tangible common equity to
tangible assets ratio was 7.77% excluding AOCI, and 5.67% including
AOCI. The Tier 1 risk-based capital ratio was 11.75%, the Total
risk-based capital ratio was 13.78%, and the Leverage ratio was
8.94%. Fifth Third did not execute share repurchases in the first
quarter of 2024.
Tax Rate
The effective tax rate for the quarter was 21.1% compared with
18.4% in the prior quarter and 22.3% 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 26 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.
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/20240419302365/en/
Investor contact: Matt Curoe (513) 534-2345 Media contact:
Jennifer Hendricks Sullivan (614) 744-7693
Fifth Third Bancorp (NASDAQ:FITB)
Historical Stock Chart
From Apr 2024 to May 2024
Fifth Third Bancorp (NASDAQ:FITB)
Historical Stock Chart
From May 2023 to May 2024