FIFTH THIRD BANC(FITBO) - 2025 Q1 - Quarterly Results

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) 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 $38 million, or 5%, from the prior quarter, totaling $694 million, with notable declines in capital markets fees and commercial banking revenue[9][10]. - Noninterest expense increased by $78 million, or 6%, from the prior quarter, totaling $1,304 million, but decreased by 3% year-over-year[13][14]. - The return on average common equity was 10.8%, down from 13.0% in the previous quarter, while the efficiency ratio improved to 61.0%, reflecting continued expense discipline[1][6]. - Net income available to common shareholders fell by 18% to $478 million, with diluted earnings per share at $0.71, a decrease of 16%[42]. - Total revenue (FTE) for Q1 2025 was $2,136 million, a decrease of 1.8% sequentially and an increase of 0.8% year-over-year[48]. - 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 increased to $121,272 million, up 3% sequentially and year-over-year, driven by growth in both commercial and consumer lending[1]. - Total average portfolio loans and leases increased 3% year-over-year, with commercial loans and leases up 3% and consumer loans up 5%[17]. - 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]. - Average loans and leases increased by 3% to $121,764 million compared to the previous quarter[42]. - 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 and Loss Provisions - 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]. - Net charge-offs were $136 million in the current quarter, resulting in a net charge-off (NCO) ratio of 0.46%[27]. - Nonperforming portfolio loans and leases increased to $966 million, with an NPL ratio of 0.79%[29]. - Provision for credit losses increased by 85% year-over-year to $174 million, compared to $94 million in Q1 2024[42]. - Nonperforming assets totaled $1,017 million in March 2025, an increase from $860 million in December 2024, indicating a rise in credit quality concerns[60]. - The ratio of allowance for credit losses to portfolio loans and leases was 2.07% in March 2025, slightly down from 2.08% 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]. - Total risk-based capital ratio stood at 13.66%, down from 13.86% in the previous quarter[31]. - Total equity increased to $20.403 billion in March 2025 from $19.645 billion in December 2024, reflecting a comprehensive income of $1.256 billion[52]. - The Tier 1 risk-based capital ratio was 11.73% as of March 2025, down from 11.86% in December 2024[56]. Shareholder Actions - The company executed $225 million in share repurchases during the quarter, contributing to a 5% increase in tangible book value per share over the past year[3]. - Fifth Third repurchased $225 million of its common stock, reducing shares outstanding by approximately 5.2 million[31]. - Book value per share increased by 5% to $27.41, while market value per share decreased by 7% to $39.20[42]. Strategic Focus - Fifth Third Bancorp plans to continue focusing on stability, profitability, and growth as its operating principles amid economic uncertainty[4]. - Fifth Third aims to be the highest performing regional bank in the U.S. while maintaining a commitment to ethical practices[34]. - The company has been recognized among Ethisphere's World's Most Ethical Companies® for several years[34].