Fifth Third(FITB) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net income available to common shareholders was $582 million, or $0.85 per diluted share, representing a 9% increase sequentially and an 18% increase year-over-year [7]. - Full year 2024 net income available to common shareholders was $2.2 billion, or $3.14 per diluted share, compared to $2.2 billion, or $3.22 per diluted share in 2023 [7]. - Net income for the three months ended December 2024 was $620 million, an increase of 8% year-over-year [52]. - Net income available to common shareholders increased to $582 million in Q4 2024, representing a 9% sequential growth and an 18% year-over-year increase [58]. - Net income for the three months ended December 2024 was $620 million, compared to $530 million for the same period in 2023, representing an increase of 17% [65]. Revenue and Income Sources - Net interest income for the fourth quarter was $1,443 million, up 1% sequentially and year-over-year, with a net interest margin of 2.97%, an increase of 7 basis points sequentially and 12 basis points year-over-year [8][9]. - Wealth and asset management revenue increased by 11% year-over-year to $163 million, while capital markets fees rose by 16% to $123 million [10][14]. - Commercial payments revenue grew by 7% year-over-year, reaching $155 million, driven by new customer acquisition [10][14]. - Noninterest income decreased by 2% year-over-year to $732 million, but increased by 3% sequentially [10][11]. - Total revenue (FTE) for Q4 2024 reached $2,175 million, up 1.7% sequentially and 3.5% year-over-year [56]. Expenses and Efficiency - The efficiency ratio improved to 56.4%, a 60 basis point improvement compared to the fourth quarter of 2023 [1]. - Reported noninterest expense decreased by $18 million, or 1%, from the prior quarter, and decreased by $229 million, or 16%, from the year-ago quarter [17]. - Total noninterest expense for the fourth quarter of 2024 was $1,226 million, down from $1,455 million in the same quarter last year, reflecting a 16% year-over-year decline [18]. - Noninterest expense increased to $1,226 million in Q4 2024 from $1,244 million in Q3 2024, reflecting ongoing investment in operations [89]. Credit Quality and Losses - The provision for credit losses increased to $179 million, a 12% rise sequentially and a 225% increase year-over-year [7]. - The provision for credit losses totaled $179 million, with the ACL ratio at 2.08% of total portfolio loans and leases [33]. - Net charge-offs were $136 million, leading to a net charge-off (NCO) ratio of 0.46%, a decrease of 2 basis points from the prior quarter [34]. - Total nonperforming portfolio loans and leases (NPLs) increased to $823 million, resulting in an NPL ratio of 0.69%, up from 0.59% in the prior quarter [33][37]. - Nonperforming assets rose to $860 million as of December 2024, compared to $733 million in September 2024 [76]. Capital and Ratios - The CET1 capital ratio decreased to 10.51%, down 24 basis points sequentially due to loan growth increasing risk-weighted assets [39]. - The bank's CET1 capital ratio was 10.51% in Q4 2024, down from 10.75% in Q3 2024, reflecting changes in regulatory capital requirements [56]. - Total regulatory capital rose to $22,743 million in December 2024, up from $22,691 million in September 2024, a growth of 0.2% [72]. - The Tier 1 risk-based capital ratio was 11.80% in December 2024, down from 12.07% in September 2024 [72]. Asset and Loan Performance - Average total portfolio loans and leases decreased by 1% year-over-year to $118,492 million, with commercial loans and leases down by 3% [22][23]. - Average consumer loans increased by 3% year-over-year, driven by growth in indirect secured consumer loans and solar energy installation loans [23][26]. - Total average interest-earning assets decreased by 2% year-over-year to $193,513 million [22]. - Period-end commercial portfolio loans and leases increased by 3% compared to the prior quarter, totaling $73 billion [25]. - Total loans and leases for December 2024 averaged $118,492 million with a yield of 6.18%, compared to $119,309 million and 6.30% in December 2023 [66]. Market and Shareholder Returns - The company returned $1.6 billion of capital to shareholders during 2024 while increasing capital ratios [4]. - Fifth Third repurchased $300 million of its common stock during the fourth quarter, reducing shares outstanding by approximately 6.7 million [39]. - Market capitalization increased by 21% year-over-year to $28,321 million [52]. - Cash dividends declared for common stock in December 2024 were $252 million, compared to $242 million in December 2023, an increase of 4.1% [65].