Financial Data and Key Metrics Changes - The company reported earnings per share of 71 cents, or 73 cents excluding certain items, exceeding consensus estimates [7] - Pre-provisioned net revenue (PPNR) grew by 5% year-over-year, with an adjusted return on equity of 11.2% [7] - Tangible book value per share increased by 15% over the prior year, despite the 10-year treasury rate remaining unchanged [8] - Net interest income (NII) grew by 4% year-over-year, with net interest margins expanding for the fifth consecutive quarter [10] Business Line Data and Key Metrics Changes - Total loans grew by 3% year-over-year, driven by strong middle market commercial and industrial (C&I) production and balanced growth across consumer-secured lending categories [9] - Commercial payments revenue increased by 6%, while wealth and asset management revenue grew by 7%, supported by a 10% growth in assets under management (AUM) [10] - Adjusted non-interest income increased by 1% compared to the prior year, driven by growth in wealth and commercial payments [30] Market Data and Key Metrics Changes - Core deposits remained stable, with total household growth of 2% and 5% growth in the Southeast [9] - Average core deposits decreased by 2% sequentially, primarily due to normal seasonality and commercial factors [26] - The loan-to-core deposit ratio was 75%, up 2% from the prior quarter, indicating strong liquidity management [28] Company Strategy and Development Direction - The company aims to achieve record NII within existing guidance, even without rate cuts or further loan growth [16] - Focus on maintaining a resilient business mix and managing the balance sheet defensively to adapt to changing conditions [12] - Continued investments in Southeast branches and growth in commercial payments are expected to enhance operational deposit funding [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering stability, profitability, and growth amid uncertain economic conditions [7] - The company is preparing for potential economic slowdowns by maintaining a diversified loan origination platform and proactive credit management [12][13] - Management anticipates that inflation may rise while growth could slow down, but unemployment may remain stable [63] Other Important Information - The company has a high allowance for credit losses (ACL) coverage ratio of 2.07%, among the highest in its peer group [38] - The CET1 ratio was maintained at 10.5%, exceeding the minimum buffer requirement [39] - The company plans to repurchase $400 million to $500 million of stock in the second half of 2025, depending on loan growth [50] Q&A Session Summary Question: Can you share insights on interactions with commercial customers amid economic uncertainty? - Management noted that commercial customers are concerned about tariffs and are likely to push prices to cover costs, with no indications of layoffs among clients [56][62] Question: What areas aside from credit is the company focusing on to navigate a potential slowdown? - Management emphasized the importance of deposit funding and disciplined expense management as key focus areas [68][69] Question: Can you provide details on the increase in non-performing loans (NPLs)? - The increase was primarily due to two ABL loans, but management remains confident in the overall health of the portfolio [75][80] Question: How is the company managing costs without impairing growth plans? - Management indicated that cost reductions would come from variable compensation adjustments and operational efficiencies, while continuing to invest in growth areas [95] Question: What is the outlook for the U.S. consumer and associated risks? - Management highlighted that lower-income consumers are under stress, while higher-income individuals are likely to reduce spending, but the middle class remains stable as long as unemployment does not rise significantly [125][132]

Fifth Third Bancorp (FITB) has reported first-quarter 2025 adjusted earnings per share (EPS) of 73 cents, surpassing the Zacks Consensus Estimate of 70 cents. In the prior-year quarter, the company posted an EPS of 76 cents.Results benefited from a rise in net interest income (NII) and loan balances. A reduction in expenses was another positive. A decline in fee income and weak asset quality were headwinds.Results included a negative 2-cent impact of certain items. After considering this, the company has re ...

Fifth Third Bancorp 1Q25 Earnings Presentation April 17, 2025 Refer to earnings release dated April 17, 2025 for further information. © Fifth Third Bancorp | All Rights Reserved Cautionary statement This presentation 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 st ...

Financial Performance - Fifth Third Bancorp reported net income available to common shareholders of $478 million, or $0.71 per diluted share, a decrease of 18% from the prior quarter and stable compared to the year-ago quarter [6]. - Net interest income (NII) for Q1 2025 was $1,442 million, reflecting a 4% increase year-over-year, while the net interest margin (NIM) expanded to 3.03%, up 17 basis points from the previous year [7][8]. - Noninterest income decreased by 5% sequentially to $694 million, with notable declines in capital markets fees and commercial banking revenue, down 27% each compared to the prior quarter [9][11]. - Noninterest expense increased by 6% sequentially to $1,304 million, but decreased by 3% year-over-year, reflecting disciplined expense management [13][14]. - The return on average common equity was 10.8%, down from 13.0% in the previous quarter, indicating a need for improved profitability measures [1]. - Net income available to common shareholders fell by 18% to $478 million compared to the previous quarter [42]. - Earnings per share (diluted) decreased by 16% to $0.71, while basic earnings per share increased by 1% to $0.71 year-over-year [42]. - Total revenue (FTE) for Q1 2025 was $2,136 million, a decrease of 1.8% sequentially and an increase of 1.7% year-over-year [46]. - Income before income taxes (FTE) for Q1 2025 was $658 million, a decrease from $770 million in Q4 2024, showing a decline in profitability [72]. Loan and Lease Growth - The average portfolio loans and leases rose to $121,272 million, a 3% increase sequentially and year-over-year, driven by growth in both commercial and consumer lending [1]. - Total average portfolio loans and leases increased 3% compared to the prior quarter, with commercial loans and leases up 4% and consumer loans up 2% [16]. - Period-end commercial portfolio loans and leases reached $75 billion, a 3% increase from the prior quarter and a 4% increase year-over-year [19]. - Period-end consumer portfolio loans totaled $47 billion, increasing 1% from the prior quarter and 6% year-over-year [20]. - Total loans and leases increased to $121.764 billion in March 2025, up from $118.492 billion in December 2024, representing a growth of 1.92% [53]. Credit Quality - The provision for credit losses totaled $174 million in the current quarter, with an allowance for credit losses (ACL) ratio of 2.07% of total portfolio loans and leases [26]. - Nonperforming portfolio loans and leases (NPLs) increased to $966 million, resulting in an NPL ratio of 0.79%, up 10 basis points from the prior quarter [60]. - Total net charge-offs were $136 million, with a net charge-off (NCO) ratio of 0.46%, unchanged from the prior quarter [27]. - The allowance for loan and lease losses increased to $2,384 million, a 3% increase from $2,318 million in March 2024 [50]. - Total nonperforming assets rose to $1,017 million in March 2025, compared to $860 million in December 2024 [60]. Capital and Equity - CET1 capital ratio decreased by 12 basis points to 10.45% due to loan growth increasing risk-weighted assets [31]. - Average total Bancorp shareholders' equity as a percentage of average assets increased to 9.50% from 9.40% in the previous quarter [31]. - Fifth Third repurchased $225 million of its common stock, reducing shares outstanding by approximately 5.2 million [31]. - Total equity rose to $20,403 million, a 7% increase compared to $19,018 million in March 2024 [50]. - The Tier 1 risk-based capital ratio was 11.73% in March 2025, down from 11.86% in December 2024 [56]. Market and Operational Efficiency - The effective tax rate for the quarter was 21.2%, up from 18.8% in the prior quarter [32]. - The efficiency ratio (FTE) improved to 61.0% in Q1 2025 compared to 56.4% in Q4 2024, indicating increased operational efficiency [70]. - The company plans to continue focusing on stability, profitability, and growth as its operating principles amid economic uncertainty [4]. - The company has been recognized among Ethisphere's World's Most Ethical Companies® for several years [34]. - Fifth Third aims to be the highest performing regional bank in the U.S. while maintaining a strong commitment to community impact [34].

Fifth Third Bancorp (FITB) is scheduled to report first-quarter 2025 results on April 17 before the opening bell. Quarterly revenues are expected to have registered growth in the to-be-reported quarter, while earnings are likely to have declined on a year-over-year basis.In the last reported quarter, the bank’s earnings surpassed the Zacks Consensus Estimate. Results benefited from a rise in net interest income (NII) and loan balance. A decline in fee income and higher expenses were spoilsports.This Cincinn ...

Workforce and Employee Engagement - As of December 31, 2024, the Bancorp had 18,616 full-time equivalent employees, a decrease from 18,724 in 2023, indicating a reduction in workforce[15] - Full year turnover improved from 16.9% in 2023 to 16.2% in 2024, reflecting enhanced employee retention strategies[21] - The Bancorp engaged employees in over 255,000 hours of discretionary learning in 2024, emphasizing its commitment to employee development[17] - The Bancorp's human capital strategy aims to attract and retain talent, ensuring alignment with business needs and organizational values[15] Growth Strategy and Market Position - The Bancorp's strategy for growth includes expanding its presence in high-growth markets and broadening product offerings, with potential acquisitions being evaluated[23] - The Bancorp's competitive environment is influenced by changes in regulation, technology, and consolidation among financial service providers, which are expected to continue[14] Regulatory Environment and Compliance - The Bancorp is subject to extensive regulation and supervision, impacting its operational strategies and capital distribution capabilities[24] - The EGRRCPA raised asset thresholds for enhanced prudential standards, affecting the Bancorp's regulatory requirements[25] - The Bancorp is subject to enhanced prudential standards due to its size, including liquidity and capital requirements, stress testing, and risk management standards[61] - The Bancorp's ability to declare dividends is limited by federal banking laws and regulatory capital requirements, impacting its capital distribution strategy[36] - The Bancorp's compensation programs are designed to align with regulatory expectations while rewarding performance, focusing on long-term shareholder value[19] - The Bancorp's most recent supervisory stress test was completed in 2024, assessing the impact of adverse economic conditions on its capital[59] - The Bancorp is subject to federal laws aimed at countering money laundering and terrorist financing, requiring robust compliance programs to avoid significant penalties[69] - The Bancorp's Board has approved policies to comply with anti-money laundering laws, which are critical for bank mergers and acquisitions[70] - The impact of future legislative or regulatory changes on the Bancorp's business and financial condition cannot be predicted, but such changes could be significant[79] Financial Performance and Capital Ratios - The Bancorp's Common Equity Tier 1 (CET1) capital ratio was 10.57% as of December 31, 2024, exceeding the minimum regulatory requirement of 4.50%[53] - The Bancorp's Tier 1 risk-based capital ratio was 11.86% as of December 31, 2024, surpassing the minimum requirement of 6.00%[53] - The Bancorp's total risk-based capital ratio was 13.86% as of December 31, 2024, exceeding the minimum requirement of 8.00%[53] - The Bancorp's leverage ratio was 9.22% as of December 31, 2024, well above the minimum requirement of 4.00%[53] - The Bancorp's stress capital buffer was 3.2% as of December 31, 2024, indicating compliance with the stress capital buffer requirement[60] Risk Management and Operational Challenges - The bank's operations are increasingly reliant on digital technology, exposing it to cybersecurity risks that could disrupt services and harm customer relationships[102] - The use of third-party service providers increases operational risks, particularly in the context of data security and service reliability[105] - Fifth Third is facing challenges in managing organizational changes and implementing key initiatives due to competing priorities, which could adversely affect its business and financial condition[114] - The company invests significant resources in information technology system enhancements, but may struggle to implement these successfully, potentially impacting profitability and compliance with regulatory requirements[115] - The effectiveness of Fifth Third's risk management framework is critical, as failures could significantly impact earnings and stakeholder perception[178] - Fifth Third's risk management framework may be less effective than anticipated, potentially leading to unexpected losses and negative consequences[179] Market and Economic Factors - Fifth Third's income and cash flows are highly sensitive to changes in interest rates, with the Federal Reserve raising the federal funds rate to between 5.25% and 5.5% in 2022 and 2023[152] - Changes in monetary policy, including interest rate fluctuations, could adversely affect Fifth Third's loan origination volume and profitability[152] - Global and domestic political, social, and economic uncertainties may adversely affect Fifth Third, impacting its ability to raise liquidity and affecting its business operations[151] - The Bancorp's estimate for the special deposit insurance assessment was $252 million, with recorded expenses of $28 million and $224 million for the years ended December 31, 2024 and 2023, respectively[42] Technology and Innovation - Rapid technological advancements in the financial services industry require Fifth Third to effectively address customer needs and implement new technology-driven products, or risk losing market share[116] - The adoption of real-time payments networks may require Fifth Third to hold more liquidity reserves, impacting profitability and increasing fraud risks[161] Acquisitions and Growth Risks - Future acquisitions could dilute current shareholders' ownership and increase susceptibility to economic downturns[166] - The company may face challenges in integrating acquired entities, which could prevent it from achieving expected benefits[164] Environmental and Social Risks - Environmental, social, and governance risks could adversely affect Fifth Third's reputation and stock price, impacting its ability to attract customers and investors[171] - Societal responses to climate change may adversely affect Fifth Third's business, leading to cost increases and demand drops in certain sectors[181] Financial Reporting and Accounting - Changes in accounting standards could materially impact Fifth Third's reported earnings and financial condition[175] - The preparation of financial statements requires significant estimates that could materially impact results, with potential changes to previously announced financial results[180]

This presentation 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, cap ...

Financial Data and Key Metrics Changes - The company reported its fourth quarter 2024 earnings results, with specific financial metrics to be discussed by the CEO and CFO during the call [3][4]. Business Line Data and Key Metrics Changes - Detailed performance across various business lines will be provided in the prepared remarks by the CEO and CFO [3][4]. Market Data and Key Metrics Changes - Market performance and metrics will be addressed in the context of the overall earnings call, with insights expected from the management team [3][4]. Company Strategy and Development Direction and Industry Competition - The management will outline the company's strategic direction and competitive positioning within the industry during the call [3][4]. Management's Comments on Operating Environment and Future Outlook - The CEO and CFO will share their perspectives on the current operating environment and future outlook for the company [3][4]. Other Important Information - The call will include a Q&A session where analysts can pose questions to the management team, including the Chief Credit Officer [3][4]. Q&A Session All Questions and Answers Question: What are the key highlights from the fourth quarter results? - Specific highlights will be discussed by the CEO and CFO during their prepared remarks [3][4]. Question: How does the company plan to address competitive pressures in the market? - Management will provide insights on competitive strategies during the call [3][4].

Core Viewpoint - Fifth Third Bancorp (FITB) reported fourth-quarter 2024 adjusted earnings per share (EPS) of 90 cents, exceeding the Zacks Consensus Estimate of 87 cents, but down from 99 cents in the prior-year quarter [1][2] Financial Performance - For 2024, adjusted EPS was $3.46, beating the Zacks Consensus Estimate of $3.33, but lower than $3.61 reported in the previous year [2] - Net income available to common shareholders (GAAP basis) for the fourth quarter was $582 million, an increase of 18.3% year over year, while full-year net income was $2.16 billion, a decrease of 2.6% year over year [3] - Total quarterly revenues were $2.17 billion, a slight year-over-year increase, but missed the Zacks Consensus Estimate of $2.21 billion; full-year revenues were $8.5 billion, down 2.6% year over year [4] Income and Expenses - Net interest income (NII) for the fourth quarter was $1.44 billion, up 1.4% year over year, matching estimates; the net interest margin increased to 2.97% from 2.85% [4][5] - Non-interest income declined 1.6% year over year to $732 million, primarily due to decreased revenues from mortgage banking [5] - Non-interest expenses decreased 15.7% year over year to $1.23 billion, attributed to lower marketing and other non-interest expenses [6] Loan and Deposit Trends - Average loans and leases increased nearly 1% to $118.5 billion, while average deposits remained stable at $167.2 billion as of December 31, 2024 [7] Credit Quality - The provision for credit losses was $179 million, significantly up from $55 million in the prior-year quarter; total non-performing loans and leases increased 24% year over year to $853 million [8] - Net charge-offs rose to $136 million or 0.46% of average loans and leases, compared to $96 million or 0.32% in the previous year [9] Capital Position - The Tier 1 risk-based capital ratio was 11.8%, up from 11.59% year over year; the CET1 capital ratio increased to 10.51% from 10.29% [10] - The leverage ratio improved to 9.22% compared to 8.73% in the prior-year quarter [10] Capital Distribution - In the reported quarter, the company repurchased $300 million of its common outstanding shares [11] Strategic Outlook - Strategic acquisitions have diversified revenue sources, supporting top-line growth; however, weak asset quality remains a concern [12]

Fifth Third Bancorp Reports Fourth Quarter 2024 Diluted Earnings Per Share of $0.85 Strong returns driven by growth in loans and fees and improvement in net interest margin Reported results included a negative $0.05 impact from certain items on page 2 | Key Financial Data | | | Key Highlights | | | --- | --- | --- | --- | --- | | $ in millions for all balance sheet and income statement items | | | | | | | 4Q24 | 3Q24 | 4Q23 | Stability: | | Income Statement Data | | | | | | Net income available to common sh ...