Core Viewpoint - Fifth Third Bancorp (FITB) announced a new share repurchase agreement, leading to a 3% increase in its shares during after-market trading, reflecting the company's commitment to enhancing capital distribution and generating long-term value for shareholders [1][5]. Financial Performance and Guidance - The company has trimmed its second-quarter revenue guidance, now expecting total revenues to be stable sequentially, down from a previous forecast of nearly 1% growth [10]. - Non-interest income is now anticipated to be stable, a decrease from the earlier guidance of 2-4% growth [10]. - The net charge-off ratio is projected to be 50 basis points, revised from the earlier guidance of 35-45 basis points [4]. - The effective tax rate is now expected to be 22%, compared to the previous range of 22-23% [5]. - Non-interest expenses are projected to decline by 7-8%, an increase from the previous guidance of a 6% decrease [11]. - The allowance for credit losses is estimated to be a $50 million release, contrasting with the earlier guidance of flat to a $25 million build [11]. Market Position and Growth - Fifth Third Bancorp holds a top five market share in commercial payments across several product categories, with total assets of $215 billion and deposits of $170 billion [5]. - Over the past year, FITB shares have increased by 45.4%, outperforming the industry growth of 35.5% [6]. - The company plans to expand its branch network by opening 35-45 branches annually through 2028 [12]. Share Repurchase Agreement - The new share repurchase agreement involves buying back nearly $125 million of outstanding common stock, part of a broader 100 million share repurchase program initiated in June 2019 [1][5]. - The company expects to receive a substantial majority of the shares related to the repurchase agreement by June 12, 2024 [9].

Fifth Third has been focused on treasury management and wealth and asset management business in the past few quarters to bolster its non-interest income, which is less volatile compared with spread income. Although the metric declined 0.6% in 2022, it grew in 2021, 2023 and the first quarter of 2024. This was primarily driven by strategic investments. FITB is also undertaking efforts to increase non-interest income through new collaboration. In May 2024, in collaboration with Bottomline, the company launche ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. 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 mea ...

Fifth Third Bancorp (FITB) , in collaboration with Bottomline, has launched Enhanced Payables, a new payment platform powered by the latter's business payments network, Paymode-X. Enhanced Payables integrates Bottomline's industry-leading business payments technology and FITB's wide-ranging banking services to offer customers a diverse range of payment modes. With this new service, customers can streamline their payment processes, efficiently manage their cash flow and finally boost overall efficiency. Acco ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2024 Commission File Number 001-33653 Fifth Third Bancorp (Exact name of Registrant as specified in its charter) (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification Number) Ohio 31-0854434 38 Fountain Square Plaza Cincinnati, Ohio 45263 (Ad ...

EleSi/iStock Editorial via Getty ImagesFifth Third Bancorp (NASDAQ:FITB) has been one of the best-performing regional banks, with its share price rising by 35.07% over the past year compared to the SPDR S&P Regional Banking ETF (KRE) which rose by 12.8% over the same period. As a result, FITB trades at 11.16 forward earnings, according to Seeking Alpha’s forward EPS estimate, which is slightly above the sector median of 10.23. I argue that FITB’s outperformance has been well-deserved due to robust growt ...

Financial Data and Key Metrics Changes - Earnings per share reported at $0.70, or $0.76 excluding certain charges, with all major income statement captions meeting or exceeding guidance [3][4] - Adjusted return on equity and return on assets are the highest among peers, indicating strong profitability [3][6] - Net interest income for the quarter was $1.4 billion, with interest-bearing deposit costs managed to increase only 1 basis point sequentially [95][90] Business Line Data and Key Metrics Changes - Treasury management revenue grew 11% year-over-year, driven by software-enabled managed services [4] - Wealth and asset management fee revenues increased by 10% year-over-year, supported by strong growth in Fifth Third Wealth Advisors [4] - Adjusted non-interest income decreased 1% year-over-year, primarily due to lower revenue in commercial banking, leasing, and mortgage [7] Market Data and Key Metrics Changes - Average core deposits decreased 1% sequentially, attributed to normal seasonality [8] - DDA as a percentage of core deposits fell to 25% from 26% in the previous quarter, indicating a continued migration of balances [79] - Full year average core deposit growth is forecasted at only 2% to 3%, down from 5% growth in 2023 [22] Company Strategy and Development Direction - The company emphasizes stability, profitability, and growth, aiming to navigate challenging economic environments effectively [70] - Plans to open 30 to 35 new branches in higher-growth markets while closing a similar number of branches [23] - Focus on maintaining balance sheet strength and flexibility in an uncertain economic environment [76] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic outlook, citing potential headwinds from inflation and geopolitical tensions [92] - The company expects net interest income to decrease by 2% to 4% for the full year, with a trough in net interest income and margin believed to be behind [81][90] - Credit performance remains stable, with expectations for net charge-offs in the range of 35 to 45 basis points [128] Other Important Information - The company has resumed share repurchases of $300 million to $400 million in the second half of 2024, contingent on a stable economic outlook [12] - The CET1 ratio stands at 10.44%, with expectations for stability in capital levels [126] Q&A Session Summary Question: Can you discuss the demand trends in more detail? - Management noted that while clients are not pessimistic, they are cautious regarding capital investments and M&A opportunities [106] Question: What is the current outlook for the US economy in 2024? - Management indicated that Moody's outlook has improved, with no significant slowdown expected in 2024 [141] Question: How does the company manage deposit competition? - The company believes the liquidity environment has stabilized, reducing the likelihood of intense competition for deposits [163] Question: What are the expectations for reserve building versus releasing? - Management expects a small reserve build in connection with loan growth, assuming no changes to the economic outlook [138]

Fifth Third Bancorp (FITB) has reported first-quarter 2024 adjusted earnings per share (EPS) of 76 cents, surpassing the Zacks Consensus Estimate of 71 cents. In the prior-year quarter, the company reported an EPS of 78 cents.Results have been aided by increases in non-interest income and the deposit balance. However, a fall in net interest income (NII) limited its revenue growth. Higher expenses were other undermining factors.The company has reported net income available to common shareholders of $480 mill ...

Fifth Third Bancorp Reports First Quarter 2024 Diluted Earnings Per Share of $0.70 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 | Key Financial Data | | | Key Highlights | | | --- | --- | --- | --- | --- | | $ in millions for all balance sheet and income statement items | | | | | | | 1Q24 | 4Q23 | 1Q23 | Stability: | | Income Statement Data | | | | | | Net income available to common shareh ...

Investors are always looking for stocks that are poised to beat at earnings season and Fifth Third Bancorp (FITB) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Fifth Third is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty go ...