Fifth Third Bancorp (FITB) shares touched a 52-week high of $43.85 on Thursday following the Federal Reserve's announcement of a 50-basis points interest rate cut. The FITB stock closed slightly lower at $43.64, gaining nearly 18% over the past six months. It has outperformed its industry, the S&P 500 Index and its close peers like Comerica Incorporated (CMA) and Bank of America Corporation (BAC) in the same time frame. Six-Month Price Performance Image Source: Zacks Investment Research Key Drivers Behind F ...

At the Barclays Global Financial Services Conference, Fifth Third Bancorp (FITB) provided an update on its third-quarter 2024 outlook. Fifth Third stated that total revenues are expected to rise 2-3% sequentially in the third quarter from its baseline of $2.2 billion compared with the previous guidance of 1-2% increase. Also, management updated its noninterest income, now expecting a 3-4% increase from its baseline of $717 million, up from the earlier projection of a 1-2% rise. Average loans and leases are ...

Fifth Third Bancorp (FITB) is benefiting from robust revenue growth and solid liquidity. Strategic acquisitions diversified Fifth Third's revenue sources, supporting its top-line growth. Hence, it seems to be a wise idea to add the FITB stock to your portfolio now, given its solid fundamentals and decent growth prospects. The Zacks Consensus Estimate for FITB's earnings has been revised to 3.3% and 2.3% north for 2023 and 2024, respectively, in the past month. This shows that analysts are optimistic regardi ...

High quality Shared National Credit portfolio Shared National Credit portfolio is well diversified SNC portfolio | --- | --- | --- | --- | --- | |-----------------------------|----------------------|-----------------------|------------------------|------------------------------------------------------------------------------------------------------------------| | | | | | | | | | Industry mix | | • Reduced balances 12% compared to 2Q23 | | $31.9BN ~27% of total loans | Wholesale | Other industries 21% | Reta ...

For the quarter ended June 2024, Fifth Third Bancorp (FITB) reported revenue of $2.08 billion, down 4.6% over the same period last year. EPS came in at $0.86, compared to $0.87 in the year-ago quarter. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. View all Key Company Metrics for Fifth Third Bancorp here>>> While investors closely ...

Over the last four quarters, the company has surpassed consensus EPS estimates four times. Fifth Third Bancorp shares have added about 16.6% since the beginning of the year versus the S&P 500's gain of 16.2%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. It will be ...

[Q2 2024 Earnings Overview](index=1&type=section&id=Q2%202024%20Earnings%20Overview) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Fifth Third Bancorp reported second-quarter 2024 diluted earnings per share of $0.81, demonstrating stable returns driven by a resilient balance sheet and disciplined expense management | Key Metrics | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | Diluted EPS | $0.81 | $0.70 | $0.82 | | Net Income (Common) | $561M | $480M | $562M | | Net Interest Income (FTE) | $1,393M | $1,390M | $1,463M | | CET1 Capital Ratio | 10.60% | 10.47% | 9.49% | | Return on Avg. Common Equity | 13.6% | 11.6% | 13.9% | - Reported results for Q2 2024 included a negative **$0.05 per share** impact from certain items, including the valuation of a Visa total return swap, legal settlements, and an update to the FDIC special assessment[1](index=1&type=chunk)[7](index=7&type=chunk) - Key operational highlights for the quarter include: - **Stability**: Increased net interest income and margin compared to the prior quarter, driven by loan repricing and moderating deposit costs - **Profitability**: Strong fee performance in wealth and asset management (up **11% YoY**) and disciplined expense management (down **1% YoY**) - **Growth**: Generated **3% consumer household growth** compared to 2Q23, with **6% growth** in the Southeast[1](index=1&type=chunk) [CEO's Statement](index=1&type=section&id=CEO's%20Statement) Chairman, CEO, and President Tim Spence emphasized the company's resilient profitability, well-managed liquidity, and diversified revenue streams - The bank's strong liquidity position provides flexibility to navigate uncertain economic and regulatory environments[2](index=2&type=chunk) - Continued investments are being made in the Southeast expansion, Commercial Payments, and Wealth and Asset Management businesses, leading to strong new relationship acquisition[3](index=3&type=chunk) - The bank executed a **$125 million share repurchase** in June after achieving its capital targets for the quarter[4](index=4&type=chunk) [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) [Income Statement Highlights](index=3&type=section&id=Income%20Statement%20Highlights) Net income for Q2 2024 was $601 million, flat year-over-year and up 16% sequentially, with diluted EPS at $0.81 | Condensed Income Statement ($ in millions) | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | Net interest income (FTE) | $1,393 | $1,390 | $1,463 | | Provision for credit losses | $97 | $94 | $177 | | Noninterest income | $695 | $710 | $726 | | Noninterest expense | $1,221 | $1,342 | $1,231 | | Net income | $601 | $520 | $601 | | Diluted EPS | $0.81 | $0.70 | $0.82 | [Net Interest Income (NII)](index=4&type=section&id=Net%20Interest%20Income) Net interest income (FTE) was $1.393 billion, slightly up sequentially but down 5% year-over-year, with NIM increasing to 2.88% | NII & NIM Performance | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | Net interest income (FTE) | $1,393M | $1,390M | $1,463M | | Net interest margin (NIM) | 2.88% | 2.86% | 3.10% | - Sequentially, NII increased by **$3 million**, or **$8 million** excluding customer remediations, due to increased yields on new loans, partially offset by lower commercial loan balances and deposit mix shift[8](index=8&type=chunk) - Year-over-year, NII decreased by **$70 million**, reflecting higher funding costs and deposit mix shift, partially offset by higher loan yields[9](index=9&type=chunk) [Noninterest Income](index=5&type=section&id=Noninterest%20Income) Total noninterest income was $695 million, decreasing 2% sequentially and 4% year-over-year, with wealth management growth offset by other declines | Noninterest Income Breakdown ($ in millions) | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | Service charges on deposits | $156 | $151 | $144 | | Commercial banking revenue | $144 | $143 | $146 | | Mortgage banking net revenue | $50 | $54 | $59 | | Wealth and asset management revenue | $159 | $161 | $143 | | Card and processing revenue | $108 | $102 | $106 | | Total noninterest income | $695 | $710 | $726 | - Compared to the prior quarter, growth in card and processing revenue (**+6%**) and service charges (**+3%**) was offset by a decline in mortgage banking revenue (**-7%**)[12](index=12&type=chunk) - Compared to the year-ago quarter, wealth and asset management revenue grew a strong **11%** (**$16 million**), while leasing business revenue declined **19%** and other noninterest income fell **50%**[13](index=13&type=chunk) [Noninterest Expense](index=7&type=section&id=Noninterest%20Expense) Noninterest expense was $1.221 billion, down 9% sequentially and 1% year-over-year, reflecting disciplined management and seasonal declines | Noninterest Expense Breakdown ($ in millions) | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | Compensation and benefits | $656 | $753 | $650 | | Other noninterest expense | $253 | $271 | $266 | | Total noninterest expense | $1,221 | $1,342 | $1,231 | - Excluding certain items, noninterest expense decreased **$86 million**, or **7%**, from the prior quarter, mainly due to a seasonal decrease in compensation and benefits[17](index=17&type=chunk) - Compared to the year-ago quarter, noninterest expense excluding certain items was flat, as decreases in leasing and other expenses were offset by increases in compensation and marketing[18](index=18&type=chunk) [Balance Sheet Analysis](index=8&type=section&id=Balance%20Sheet%20Analysis) [Average Interest-Earning Assets](index=8&type=section&id=Average%20Interest-Earning%20Assets) Total average portfolio loans and leases were stable sequentially at $116.9 billion but decreased 5% year-over-year due to commercial loan declines | Average Balances ($ in millions) | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | Total commercial loans & leases | $72,201 | $72,796 | $77,745 | | Total consumer loans | $44,690 | $44,538 | $45,582 | | Total avg. portfolio loans & leases | $116,891 | $117,334 | $123,327 | | Securities | $56,607 | $56,456 | $57,267 | | Other short-term investments | $20,609 | $21,194 | $7,806 | - Average commercial loans decreased **1% sequentially** and **7% year-over-year**, primarily due to lower C&I loan balances[19](index=19&type=chunk)[20](index=20&type=chunk) - Average consumer loans were stable sequentially but down **2% year-over-year**, with growth in solar energy installation loans partially offsetting declines in other categories[19](index=19&type=chunk)[20](index=20&type=chunk) [Average Deposits and Wholesale Funding](index=10&type=section&id=Average%20Deposits%20and%20Wholesale%20Funding) Total average deposits decreased 1% sequentially to $167.2 billion but increased 4% year-over-year, while wholesale funding declined | Average Deposits ($ in millions) | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | Demand | $40,266 | $40,839 | $46,520 | | Interest checking | $57,999 | $58,677 | $50,472 | | Total average deposits | $167,194 | $168,122 | $160,857 | - The period-end portfolio loan-to-core deposit ratio was **72%**, compared to **71%** in the prior quarter and **77%** in the year-ago quarter[28](index=28&type=chunk) - Average wholesale funding decreased **6% YoY**, mainly due to a **52% decrease** in FHLB advances, which was partially offset by a **22% increase** in long-term debt[29](index=29&type=chunk)[30](index=30&type=chunk) [Credit Quality and Capital Position](index=11&type=section&id=Credit%20Quality%20and%20Capital%20Position) [Credit Quality Summary](index=11&type=section&id=Credit%20Quality%20Summary) Credit quality showed improved nonperforming assets but increased net charge-offs, with the ACL remaining strong at 2.08% of total loans | Credit Quality Ratios | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | NPA ratio | 0.55% | 0.64% | 0.54% | | NPL ratio | 0.52% | 0.61% | 0.52% | | Net charge-off (NCO) ratio | 0.49% | 0.38% | 0.29% | | ACL as a % of portfolio loans | 2.08% | 2.12% | 2.08% | - Nonperforming portfolio loans (NPLs) decreased by **$102 million** sequentially to **$606 million**[31](index=31&type=chunk) - Net charge-offs increased by **$34 million** sequentially to **$144 million**. The commercial NCO ratio rose to **0.45%** from **0.19%** in 1Q24, while the consumer NCO ratio fell to **0.57%** from **0.67%**[36](index=36&type=chunk) [Capital Position](index=13&type=section&id=Capital%20Position) The CET1 capital ratio strengthened to 10.60%, exceeding regulatory minimums, even after a $125 million share repurchase | Regulatory Capital Ratios | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | CET1 capital | 10.60% | 10.47% | 9.49% | | Tier 1 risk-based capital | 11.90% | 11.77% | 10.73% | | Total risk-based capital | 13.93% | 13.81% | 12.83% | | Leverage | 9.07% | 8.94% | 8.81% | - During Q2 2024, Fifth Third repurchased **$125 million** of its outstanding stock, reducing common shares by approximately **3.5 million**[39](index=39&type=chunk) - The preliminary stress capital buffer requirement is **3.2%**, effective October 1, 2024. The current CET1 ratio of **10.60%** significantly exceeds the regulatory minimum plus this buffer[40](index=40&type=chunk) [Quarterly Financial Review](index=16&type=section&id=Quarterly%20Financial%20Review) [Financial Highlights](index=17&type=section&id=Financial%20Highlights) This section summarizes key financial data and ratios for the current quarter, prior quarter, year-ago quarter, and year-to-date | Year-to-Date Performance | YTD 2024 | YTD 2023 | % Change | | :--- | :--- | :--- | :--- | | Net interest income | $2,771M | $2,974M | (7%) | | Net income | $1,122M | $1,159M | (3%) | | Diluted EPS | $1.51 | $1.59 | (5%) | [Consolidated Statements of Income](index=22&type=section&id=Consolidated%20Statements%20of%20Income) This section presents detailed consolidated statements of income for the last five quarters and year-to-date, breaking down core components - For Q2 2024, total interest income was **$2.620 billion** and total interest expense was **$1.233 billion**, resulting in net interest income of **$1.387 billion**[60](index=60&type=chunk)[61](index=61&type=chunk) [Consolidated Balance Sheets](index=24&type=section&id=Consolidated%20Balance%20Sheets) This section provides detailed consolidated balance sheets as of the end of the last five quarters, detailing assets, liabilities, and equity | Balance Sheet Items ($ in millions) | Jun 2024 | Mar 2024 | Jun 2023 | | :--- | :--- | :--- | :--- | | Total Assets | $213,262 | $214,506 | $207,276 | | Portfolio loans and leases, net | $114,291 | $114,167 | $119,564 | | Total deposits | $166,768 | $169,587 | $164,128 | | Total Equity | $19,226 | $19,018 | $17,809 | [Consolidated Statements of Changes in Equity](index=28&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) This section details changes in total equity for the quarter and year-to-date, outlining the impact of net income, dividends, and stock transactions - In Q2 2024, total equity increased from **$19.018 billion** to **$19.226 billion**. The increase was driven by **$601 million** in net income, partially offset by **$243 million** in common dividends and a **$125 million** share repurchase[66](index=66&type=chunk) [Average Balance Sheets and Yield/Rate Analysis](index=29&type=section&id=Average%20Balance%20Sheets%20and%20Yield%2FRate%20Analysis) This section provides a detailed analysis of average balances for assets and liabilities, along with corresponding yields and rates | Average Yield/Rate Analysis | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | Yield on interest-earning assets | 5.43% | 5.38% | 5.04% | | Rate paid on interest-bearing liabilities | 3.39% | 3.36% | 2.72% | | Net interest rate spread (FTE) | 2.04% | 2.02% | 2.32% | [Summary of Loans and Leases](index=32&type=section&id=Summary%20of%20Loans%20and%20Leases) This section presents a five-quarter summary of the loan and lease portfolio, broken down by commercial and consumer categories - End-of-period total portfolio loans and leases were **$116.6 billion**, stable from the prior quarter but down from **$121.9 billion** in the year-ago quarter[72](index=72&type=chunk) [Regulatory Capital](index=33&type=section&id=Regulatory%20Capital) This section provides a five-quarter view of the bank's regulatory capital amounts and ratios, including CET1, Tier 1, and Total risk-based capital - CET1 capital increased to **$17.161 billion** as of June 2024, up from **$16.100 billion** in June 2023[73](index=73&type=chunk) [Summary of Credit Loss Experience](index=34&type=section&id=Summary%20of%20Credit%20Loss%20Experience) This section offers a detailed five-quarter breakdown of credit loss experience, including charge-offs, recoveries, and net charge-offs by loan category - Total net charge-offs for Q2 2024 were **$144 million**, with **$80 million** from commercial loans and **$64 million** from consumer loans[75](index=75&type=chunk) [Asset Quality](index=36&type=section&id=Asset%20Quality) This section provides a five-quarter summary of asset quality, detailing the allowance for credit losses, nonperforming assets, and delinquent loans - Total nonaccrual portfolio loans and leases decreased to **$606 million** from **$708 million** in the prior quarter, primarily due to a reduction in nonaccrual commercial and industrial loans[77](index=77&type=chunk) [Non-GAAP Reconciliation](index=38&type=section&id=Non-GAAP%20Reconciliation) This section explains the use of non-GAAP financial measures and provides detailed reconciliation tables to comparable GAAP measures - The report uses non-GAAP measures to provide what management believes is useful information to investors for evaluating operating performance. These include FTE adjustments for tax-favored income and tangible equity measures that exclude intangible assets[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) [Segment Presentation](index=41&type=section&id=Segment%20Presentation) This section presents the financial performance for the bank's primary business segments: Commercial, Consumer, and Wealth and Asset Management | Net Income by Segment ($ in millions) | 2Q24 | 1Q24 | 2Q23 | | :--- | :--- | :--- | :--- | | Commercial Banking | $320 | $369 | $711 | | Consumer and Small Business Banking | $499 | $527 | $746 | | Wealth and Asset Management | $47 | $46 | $73 | [Other Information](index=14&type=section&id=Other%20Information) [Tax Rate](index=14&type=section&id=Tax%20Rate) The effective tax rate for the second quarter of 2024 was 21.3%, compared to 21.1% in the prior quarter and 22.5% in the year-ago quarter - The effective tax rate was **21.3%** in Q2 2024, **21.1%** in Q1 2024, and **22.5%** in Q2 2023[41](index=41&type=chunk) [Conference Call and Corporate Profile](index=14&type=section&id=Conference%20Call%20and%20Corporate%20Profile) Fifth Third hosted a conference call to discuss its financial results and profiles itself as a bank with a long history of innovation - A conference call and live webcast were held at 9:00 a.m. (Eastern Time) on the day of the earnings release to discuss the financial results[42](index=42&type=chunk) [Forward-Looking Statements](index=15&type=section&id=Forward-Looking%20Statements) This section contains standard safe harbor language, cautioning investors that future performance is subject to risks and uncertainties - The report includes a standard disclaimer that forward-looking statements are subject to numerous risks and uncertainties, and actual results may differ materially[47](index=47&type=chunk)[48](index=48&type=chunk)

Core Viewpoint - Fifth Third Bancorp (FITB) is expected to report a decline in quarterly revenues and earnings year-over-year, influenced by various factors including net interest income pressures and rising expenses [18]. Financial Performance - FITB has a strong earnings surprise history, beating estimates in the last four quarters with an average surprise of 8.52% [1]. - In the last reported quarter, earnings exceeded the Zacks Consensus Estimate, supported by increased non-interest income and deposit balances, although net interest income (NII) fell, limiting revenue growth [3]. - The Zacks Consensus Estimate for FITB's second-quarter earnings is 84 cents per share, reflecting a 3.5% decrease from the previous year [4]. Loan and Interest Income - Demand for commercial and industrial loans improved, while consumer loan demand weakened, with average interest-earning assets expected to show some improvement [5]. - FITB anticipates total average loans and leases to be stable at approximately $117.9 billion, indicating a slight increase from the previous quarter [6]. - Adjusted NII is expected to be stable to up 1% sequentially, with a consensus mark of $1.39 billion, also reflecting a 1% rise [7]. Non-Interest Income and Expenses - Non-interest income is projected to remain stable sequentially, with a consensus estimate of $720 million, indicating a 1.5% rise from the prior quarter [11]. - Management expects adjusted non-interest expenses to decline by nearly 7-8%, estimating total expenses to decrease by 2.3% sequentially to $1.31 billion [12]. Market and Economic Conditions - Mergers and acquisitions (M&As) have rebounded in Q2 2024, positively impacting commercial banking revenues due to improved financial performance and market conditions [8]. - Mortgage rates slightly decreased, which may have led to a modest rise in mortgage demand, although origination volumes remain lower than the previous quarter due to home price appreciation [9]. - Wealth and asset management revenues are expected to benefit from higher equity market performance, with the consensus estimate at $161 million, unchanged from the prior quarter [10]. Revenue Estimates - The consensus estimate for FITB's revenues is $2.11 billion, suggesting a 3.2% decline from the year-ago figure, while management expects adjusted total revenues to be stable sequentially [19]. - The Zacks Consensus Estimate for average interest-earning assets is $195.85 billion, indicating a slight rise from the previous quarter [20]. Additional Insights - The company is likely to face challenges in NII due to high interest rates and an inverted yield curve, which may pressure overall financial performance [21]. - Non-interest revenues are expected to benefit from stabilizing deposit balances, with service charges on deposits estimated at $152 million, indicating a marginal sequential increase [22]. - Card and processing revenues are projected to rise by 3.6% from the prior quarter, with a consensus estimate of $105.6 million [25].

The market expects Fifth Third Bancorp (FITB) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the imme ...

Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding onethird of total returns in many cases. Based in Cincinnati, Fifth Third ...