Fifth Third(FITB) - 2025 Q3 - Quarterly Results

Executive Summary Overall Performance & CEO Commentary Fifth Third Bancorp reported strong Q3 2025 results, achieving its fourth consecutive quarter of positive operating leverage through robust revenue growth and expense discipline - Fifth Third Bancorp achieved its fourth consecutive quarter of positive operating leverage due to strong revenue growth and expense discipline[1] - CEO Tim Spence emphasized a strong balance sheet, diverse revenue streams, and disciplined expense management, with continued expansion of net interest margin, improved pre-provision net revenue, and a strengthened efficiency ratio[2] - Adjusted PPNR increased 6% sequentially and 11% year-over-year, marking the highest annual growth rate in over two years. The company repurchased $300 million of common stock and increased its quarterly common dividend by 8% to $0.40 per share[3][31] - The company's operating principles are stability, profitability, and growth, in that order, focusing on high-quality deposits, diversified loan originations, recurring fee revenue, and operating scalability[4][5] Key Financial Data & Highlights Q3 2025 diluted EPS was $0.91, reflecting strong year-over-year improvements in net income, NII, and noninterest income, alongside stability and growth | Key Financial Data (3Q25 vs 2Q25 vs 3Q24) | 3Q25 | 2Q25 | 3Q24 | | :---------------------------------------- | :--- | :--- | :--- | | Net income available to common shareholders ($M) | $608 | $591 | $532 | | Net interest income (U.S. GAAP) ($M) | 1,520 | 1,495 | 1,421 | | Noninterest income ($M) | 781 | 750 | 711 | | Noninterest expense ($M) | 1,267 | 1,264 | 1,244 | | Earnings per share, diluted | $0.91 | $0.88 | $0.78 | | Tangible book value per share | 21.66 | 20.98 | 20.20 | | Average portfolio loans and leases ($M) | $123,326 | $123,071 | $116,826 | | Average deposits ($M) | 164,754 | 163,575 | 167,196 | | Net charge-off ratio (b) | 1.09 % | 0.45 % | 0.48 % | | Nonperforming asset ratio (c) | 0.65 | 0.72 | 0.62 | | Return on average assets | 1.21 % | 1.20 % | 1.06 % | | Return on average common equity | 12.6 | 12.8 | 11.7 | | Return on average tangible common equity | 17.3 | 17.6 | 16.3 | | CET1 capital | 10.54 | 10.58 | 10.75 | | Net interest margin (a) | 3.13 | 3.12 | 2.90 | | Efficiency (a) | 54.9 | 56.2 | 58.2 | - Key Highlights: * Stability: 3% demand deposit growth year-over-year; interest-bearing liabilities costs down for the fifth consecutive quarter; Commercial NPAs improved 14% from 2Q25; Tangible book value per share grew 7% year-over-year * Profitability: Net interest margin expanded for the 7th consecutive quarter, and NII increased 7% year-over-year; Strong fee performance driven by 28% growth in capital markets fees and 9% growth in wealth and asset management revenue from 2Q25; Adjusted efficiency ratio of 54.1%, an improvement of 180 bps year-over-year * Growth: 6% loan growth compared to 3Q24, accelerating to the highest level in over two years; Consumer household growth of 3%, including 7% in the Southeast; Assets under management of $77B, up 12% compared to 3Q24[1] Financial Highlights Income Statement Data Fifth Third Bancorp reported a 3% sequential and 13% year-over-year increase in net income for Q3 2025, reaching $649 million. Net income available to common shareholders also grew by 3% sequentially and 14% year-over-year to $608 million. Diluted EPS increased 3% sequentially and 17% year-over-year to $0.91 | Income Statement Data ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :------------------------- | :------- | :------- | :------- | :--------- | :----------- | | Net interest income (GAAP) | $1,520 | $1,495 | $1,421 | 2% | 7% | | Net interest income (FTE) | 1,525 | 1,500 | 1,427 | 2% | 7% | | Noninterest income | 781 | 750 | 711 | 4% | 10% | | Total revenue (FTE) | 2,306 | 2,250 | 2,138 | 2% | 8% | | Provision for credit losses | 197 | 173 | 160 | 14% | 23% | | Noninterest expense | 1,267 | 1,264 | 1,244 | — | 2% | | Net income | 649 | 628 | 573 | 3% | 13% | | Net income available to common shareholders | 608 | 591 | 532 | 3% | 14% | | Diluted EPS | $0.91 | $0.88 | $0.78 | 3% | 17% | Common Share Data Cash dividends per common share increased 8% sequentially and year-over-year to $0.40. Book value per share grew 3% sequentially and 6% year-over-year to $29.26, while market value per share increased 8% sequentially and 4% year-over-year to $44.55. Common shares outstanding decreased by 1% sequentially and 2% year-over-year | Common Share Data | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :---------------- | :------- | :------- | :------- | :--------- | :----------- | | Cash dividends per common share | $0.40 | $0.37 | $0.37 | 8% | 8% | | Book value per share | 29.26 | 28.47 | 27.60 | 3% | 6% | | Market value per share | 44.55 | 41.13 | 42.84 | 8% | 4% | | Common shares outstanding (thousands) | 660,973 | 667,710 | 676,269 | (1%) | (2%) | | Market capitalization ($M) | $29,446 | $27,463 | $28,971 | 7% | 2% | Financial Ratios Key financial ratios showed improvement, with Return on average assets increasing to 1.21% and Return on average tangible common equity at 17.3%. Net interest margin (FTE) expanded to 3.13%, and the efficiency ratio (FTE) improved to 54.9%, reflecting strong operational performance | Financial Ratios | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change (bps) | Yr/Yr Change (bps) | | :--------------- | :------- | :------- | :------- | :--------------- | :----------------- | | Return on average assets | 1.21% | 1.20% | 1.06% | 1 | 15 | | Return on average common equity | 12.6% | 12.8% | 11.7% | (20) | 90 | | Return on average tangible common equity | 17.3% | 17.6% | 16.3% | (30) | 100 | | Net interest margin (FTE) | 3.13% | 3.12% | 2.90% | 1 | 23 | | Efficiency (FTE) | 54.9% | 56.2% | 58.2% | (130) | (330) | | Effective tax rate | 22.6% | 22.2% | 21.3% | 40 | 130 | Credit Quality Credit quality metrics showed a significant increase in net losses charged-off, up 144% sequentially and 139% year-over-year, primarily due to a specific asset-backed finance commercial credit impairment. The net charge-off ratio rose to 1.09%. However, the nonperforming portfolio assets as a percent of portfolio loans and leases and OREO improved sequentially to 0.65% | Credit Quality | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :------------- | :------- | :------- | :------- | :--------- | :----------- | | Net losses charged-off ($M) | $339 | $139 | $142 | 144% | 139% | | Net losses charged-off as % of average portfolio loans and leases (annualized) | 1.09% | 0.45% | 0.48% | 64 bps | 61 bps | | ALLL as % of portfolio loans and leases | 1.84% | 1.97% | 1.98% | (13) bps | (14) bps | | ACL as % of portfolio loans and leases | 1.96% | 2.09% | 2.09% | (13) bps | (13) bps | | Nonperforming portfolio assets as % of portfolio loans and leases and OREO | 0.65% | 0.72% | 0.62% | (7) bps | 3 bps | Average Balances Average loans and leases, including held for sale, remained stable sequentially and increased 6% year-over-year to $123,993 million. Average total assets increased 1% sequentially but decreased 1% year-over-year. Transaction and core deposits remained stable sequentially but decreased 1% year-over-year, while wholesale funding decreased 3% sequentially and 7% year-over-year | Average Balances ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :-------------------- | :------- | :------- | :------- | :--------- | :----------- | | Loans and leases, including held for sale | $123,993 | $123,657 | $117,415 | — | 6% | | Securities and other short-term investments | 69,507 | 69,025 | 78,421 | 1% | (11%) | | Assets | 211,770 | 210,554 | 213,838 | 1% | (1%) | | Transaction deposits | 151,669 | 150,881 | 153,154 | 1% | (1%) | | Core deposits | 162,510 | 161,375 | 163,697 | 1% | (1%) | | Wholesale funding | 21,821 | 22,423 | 23,415 | (3%) | (7%) | | Bancorp shareholders' equity | 21,216 | 20,670 | 20,251 | 3% | 5% | Regulatory Capital Ratios Regulatory capital ratios showed slight sequential decreases but remained strong. The CET1 capital ratio was 10.54%, Tier 1 risk-based capital was 11.60%, and Total risk-based capital was 13.51%. The Leverage ratio was 9.24% | Regulatory Capital Ratios | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change (bps) | Yr/Yr Change (bps) | | :------------------------ | :------- | :------- | :------- | :--------------- | :----------------- | | CET1 capital | 10.54% | 10.58% | 10.75% | (4) | (21) | | Tier 1 risk-based capital | 11.60% | 11.85% | 12.07% | (25) | (47) | | Total risk-based capital | 13.51% | 13.77% | 14.13% | (26) | (62) | | Leverage | 9.24% | 9.42% | 9.11% | (18) | 13 | Additional Metrics Fifth Third Bancorp expanded its physical presence with 1,102 banking centers and 2,184 ATMs. Assets under management grew 5% sequentially and 12% year-over-year to $77 billion, while assets under care increased 4% sequentially and 7% year-over-year to $681 billion | Additional Metrics | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :----------------- | :------- | :------- | :------- | :--------- | :----------- | | Banking centers | 1,102 | 1,089 | 1,072 | 1% | 3% | | ATMs | 2,184 | 2,170 | 2,060 | 1% | 6% | | Full-time equivalent employees | 18,476 | 18,690 | 18,579 | (1%) | (1%) | | Assets under care ($B) | $681 | $657 | $635 | 4% | 7% | | Assets under management ($B) | 77 | 73 | 69 | 5% | 12% | Consolidated Statements of Income Net Interest Income (NII) Net interest income (FTE) increased 2% sequentially to $1.525 billion, primarily due to improved earning asset mix, fixed-rate asset repricing, and strategic management actions reducing interest-bearing liabilities costs. Year-over-year, NII increased 7% and Net Interest Margin (NIM) expanded by 23 bps, driven by similar factors | Net Interest Income (FTE; $M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :---------------------------- | :------- | :------- | :------- | :--------- | :----------- | | Interest Income | $2,524 | $2,489 | $2,675 | 1% | (6%) | | Interest Expense | 999 | 989 | 1,248 | 1% | (20%) | | Net Interest Income (NII) | $1,525 | $1,500 | $1,427 | 2% | 7% | | Average Yield/Rate Analysis | Sep 2025 | Jun 2025 | Sep 2024 | bps Change (Seq) | bps Change (Yr/Yr) | | :-------------------------- | :------- | :------- | :------- | :--------------- | :----------------- | | Yield on interest-earning assets | 5.18% | 5.18% | 5.43% | — | (25) | | Rate paid on interest-bearing liabilities | 2.77% | 2.78% | 3.38% | (1) | (61) | | Net interest rate spread | 2.41% | 2.40% | 2.05% | 1 | 36 | | Net interest margin (NIM) | 3.13% | 3.12% | 2.90% | 1 | 23 | - Sequential NII improvement primarily reflects improved earning asset mix, fixed-rate asset repricing, and strategic management actions decreasing the cost of interest-bearing liabilities[7] - Year-over-year NII increase was due to proactive deposit and wholesale funding management, decreasing interest-bearing liabilities costs by 61 bps, improved earning asset mix, and fixed-rate asset repricing[8] Noninterest Income Total noninterest income increased 4% sequentially to $781 million and 10% year-over-year. Excluding certain items, noninterest income grew 7% sequentially and 5% year-over-year. This growth was primarily driven by a strong rebound in capital markets fees (up 28% sequentially) and increases in wealth and asset management revenue (up 9% sequentially and 11% year-over-year) | Noninterest Income ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :---------------------- | :------- | :------- | :------- | :--------- | :----------- | | Wealth and asset management revenue | $181 | $166 | $163 | 9% | 11% | | Commercial payments revenue | 157 | 152 | 154 | 3% | 2% | | Consumer banking revenue | 144 | 147 | 143 | (2%) | 1% | | Capital markets fees | 115 | 90 | 111 | 28% | 4% | | Commercial banking revenue | 87 | 79 | 93 | 10% | (6%) | | Mortgage banking net revenue | 58 | 56 | 50 | 4% | 16% | | Other noninterest income (loss) | 29 | 44 | (13) | (34%) | NM | | Securities gains, net | 10 | 16 | 10 | (38%) | — | | Total noninterest income | $781 | $750 | $711 | 4% | 10% | | Noninterest Income excluding certain items ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :---------------------------------------------- | :------- | :------- | :------- | :--------- | :----------- | | Noninterest income (U.S. GAAP) | $781 | $750 | $711 | | | | Interchange litigation matters | 18 | 1 | 47 | | | | Securities (gains) losses, net | (10) | (16) | (10) | | | | Noninterest income excluding certain items (a) | $789 | $735 | $748 | 7% | 5% | - Sequential growth in wealth and asset management revenue was driven by personal asset management and brokerage fees. Capital markets fees saw a strong rebound from loan syndications and M&A advisory revenue[11] - Year-over-year, wealth and asset management revenue increased due to 12% AUM growth. Mortgage banking net revenue increased 16% due to the non-recurrence of MSR net valuation adjustments from the prior year[12] Noninterest Expense Total noninterest expense remained stable sequentially at $1.267 billion and increased 2% year-over-year. Excluding certain items and non-qualified deferred compensation, noninterest expense increased 2% sequentially due to higher equipment and occupancy costs, partially offset by lower marketing expense. Year-over-year, it increased 3% primarily from equipment, occupancy, marketing, and technology expenses | Noninterest Expense ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :----------------------- | :------- | :------- | :------- | :--------- | :----------- | | Compensation and benefits | $685 | $698 | $690 | (2%) | (1%) | | Technology and communications | 128 | 126 | 121 | 2% | 6% | | Net occupancy expense | 89 | 83 | 81 | 7% | 10% | | Equipment expense | 44 | 41 | 38 | 7% | 16% | | Loan and lease expense | 39 | 36 | 34 | 8% | 15% | | Marketing expense | 34 | 43 | 26 | (21%) | 31% | | Card and processing expense | 22 | 22 | 22 | — | — | | Other noninterest expense | 226 | 215 | 232 | 5% | (3%) | | Total noninterest expense | $1,267 | $1,264 | $1,244 | — | 2% | | Noninterest Expense excluding certain item(s) ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :------------------------------------------------- | :------- | :------- | :------- | :--------- | :----------- | | Noninterest expense (U.S. GAAP) | $1,267 | $1,264 | $1,244 | | | | Interchange litigation matters | (9) | — | (10) | | | | Severance expense | — | (15) | (9) | | | | FDIC special assessment | 6 | — | — | | | | Noninterest expense excluding certain item(s) (a) | $1,264 | $1,249 | $1,225 | 1% | 3% | | Non-qualified deferred compensation (expense)/benefit | (11) | (16) | (10) | | | | Noninterest expense excluding certain item(s) and non-qualified (a) deferred compensation | $1,253 | $1,233 | $1,215 | 2% | 3% | - Expenses related to the mark-to-market impact of non-qualified deferred compensation were largely offset in net securities gains/losses through noninterest income[16] Consolidated Balance Sheets Average Interest-Earning Assets Total average portfolio loans and leases remained stable sequentially at $123 billion, increasing 6% year-over-year. Commercial loans decreased 1% sequentially due to declines in commercial mortgage and construction loans, while consumer loans increased 2% sequentially, driven by indirect secured consumer and home equity loans | Average Portfolio Loans and Leases ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :------------------------------------ | :------- | :------- | :------- | :--------- | :----------- | | Commercial and industrial loans | $54,170 | $54,075 | $51,615 | — | 5% | | Commercial mortgage loans | 12,027 | 12,410 | 11,488 | (3%) | 5% | | Commercial construction loans | 5,541 | 5,810 | 5,981 | (5%) | (7%) | | Commercial leases | 3,177 | 3,120 | 2,685 | 2% | 18% | | Total commercial loans and leases | $74,915 | $75,415 | $71,769 | (1%) | 4% | | Residential mortgage loans | $17,656 | $17,615 | $17,031 | — | 4% | | Home equity | 4,579 | 4,383 | 4,018 | 4% | 14% | | Indirect secured consumer loans | 17,729 | 17,248 | 15,680 | 3% | 13% | | Credit card | 1,678 | 1,659 | 1,708 | 1% | (2%) | | Solar energy installation loans | 4,355 | 4,268 | 3,990 | 2% | 9% | | Other consumer loans | 2,414 | 2,483 | 2,630 | (3%) | (8%) | | Total consumer loans | $48,411 | $47,656 | $45,057 | 2% | 7% | | Total average portfolio loans and leases | $123,326 | $123,071 | $116,826 | — | 6% | - Average securities decreased 3% sequentially and 4% year-over-year. Average other short-term investments increased 17% sequentially but decreased 31% year-over-year[19] End of Period Interest-Earning Assets Period-end total portfolio loans and leases increased 1% sequentially and 6% year-over-year to $123.1 billion. Commercial portfolio loans remained stable sequentially but grew 5% year-over-year, primarily from C&I loans. Consumer portfolio loans increased 1% sequentially and 7% year-over-year, driven by indirect secured consumer, home equity, and residential mortgage loans | End of Period Portfolio Loans and Leases ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :-------------------------------------------- | :------- | :------- | :------- | :--------- | :----------- | | Total commercial loans and leases | $74,423 | $74,152 | $71,130 | — | 5% | | Total consumer loans | 48,707 | 48,244 | 45,538 | 1% | 7% | | Total portfolio loans and leases | $123,130 | $122,396 | $116,668 | 1% | 6% | - Period-end securities decreased 4% sequentially and 7% year-over-year. Other short-term investments increased 32% sequentially but decreased 21% year-over-year[22] Average Deposits Total average deposits increased 1% sequentially to $165 billion, driven by growth in money market and demand deposits, partially offset by declines in savings and interest checking. Demand deposits showed growth for the second consecutive quarter, reflecting a strategic focus on deposit mix. Year-over-year, total average deposits decreased 1% | Average Deposits ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :-------------------- | :------- | :------- | :------- | :--------- | :----------- | | Demand | $41,235 | $40,885 | $40,020 | 1% | 3% | | Interest checking | 56,624 | 56,738 | 58,605 | — | (3%) | | Savings | 16,376 | 16,962 | 17,272 | (3%) | (5%) | | Money market | 37,434 | 36,296 | 37,257 | 3% | — | | Total transaction deposits | $151,669 | $150,881 | $153,154 | 1% | (1%) | | CDs $250,000 or less | 10,841 | 10,494 | 10,543 | 3% | 3% | | Total core deposits | $162,510 | $161,375 | $163,697 | 1% | (1%) | | CDs over $250,000 | 2,244 | 2,200 | 3,499 | 2% | (36%) | | Total average deposits | $164,754 | $163,575 | $167,196 | 1% | (1%) | - The period-end portfolio loan-to-core deposit ratio was 75% in the current quarter, compared to 76% in the prior quarter and 71% in the year-ago quarter[24] Average Wholesale Funding Average wholesale funding decreased 3% sequentially to $22 billion, primarily due to reductions in long-term debt and FHLB advances. Year-over-year, it decreased 7%, mainly from lower long-term debt and CDs over $250,000, including brokered deposits | Average Wholesale Funding ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :----------------------------- | :------- | :------- | :------- | :--------- | :----------- | | CDs over $250,000 | $2,244 | $2,200 | $3,499 | 2% | (36%) | | Federal funds purchased | 198 | 206 | 176 | (4%) | 13% | | Securities sold under repurchase agreements | 376 | 353 | 396 | 7% | (5%) | | FHLB advances | 4,920 | 4,976 | 2,576 | (1%) | 91% | | Derivative collateral and other secured borrowings | 82 | 89 | 52 | (8%) | 58% | | Long-term debt | 14,001 | 14,599 | 16,716 | (4%) | (16%) | | Total average wholesale funding | $21,821 | $22,423 | $23,415 | (3%) | (7%) | Consolidated Statements of Changes in Equity Equity Changes Total equity at the end of Q3 2025 was $21,107 million, a slight decrease from the prior quarter but an increase from the year-ago quarter. Comprehensive income for the quarter was $919 million, driven by net income and changes in unrealized gains on available-for-sale debt securities and cash flow hedges. The company also repurchased $303 million in shares and redeemed $350 million of preferred stock | Equity Changes ($M) | Sep 2025 | Sep 2024 | Yr to Date Sep 2025 | Yr to Date Sep 2024 | | :------------------ | :------- | :------- | :------------------ | :------------------ | | Total Equity, Beginning | $21,124 | $19,226 | $19,645 | $19,172 | | Net income | 649 | 573 | 1,791 | 1,694 | | Comprehensive income | 919 | 2,028 | 3,151 | 2,735 | | Cash dividends declared: Common stock | (269) | (254) | (770) | (740) | | Cash dividends declared: Preferred stock | (37) | (41) | (110) | (121) | | Shares acquired for treasury | (303) | (202) | (529) | (327) | | Redemption of preferred stock | (350) | — | (350) | — | | Total Equity, Ending | $21,107 | $20,784 | $21,107 | $20,784 | - Changes in unrealized gains on available-for-sale debt securities contributed $230 million to other comprehensive income in Q3 2025[53] Average Balance Sheets and Yield/Rate Analysis Average Interest-Earning Assets and Yields Average interest-earning assets remained stable sequentially at $193.5 billion, with an average yield of 5.18%. Total loans and leases had an average yield of 6.12%, stable sequentially but down from 6.48% year-over-year. Commercial loans and leases yield decreased 4 bps sequentially and 69 bps year-over-year, while consumer loans yield increased 9 bps sequentially and 15 bps year-over-year | Average Interest-Earning Assets ($M) | Sep 2025 Balance | Sep 2025 Yield/Rate | Jun 2025 Balance | Jun 2025 Yield/Rate | Sep 2024 Balance | Sep 2024 Yield/Rate | | :----------------------------------- | :--------------- | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | | Total commercial loans and leases | 74,957 | 6.22% | 75,460 | 6.26% | 71,786 | 6.91% | | Total consumer loans | 49,036 | 5.96% | 48,197 | 5.87% | 45,629 | 5.81% | | Total loans and leases | 123,993 | 6.12% | 123,657 | 6.11% | 117,415 | 6.48% | | Securities | 54,592 | 3.25% | 56,243 | 3.29% | 56,707 | 3.25% | | Other short-term investments | 14,915 | 4.43% | 12,782 | 4.56% | 21,714 | 5.47% | | Total interest-earning assets | 193,500 | 5.18% | 192,682 | 5.18% | 195,836 | 5.43% | Average Interest-Bearing Liabilities and Rates Average interest-bearing liabilities remained stable sequentially at $143.1 billion, with an average rate of 2.77%, a 1 bp sequential decrease and a 61 bps year-over-year decrease. This reduction was primarily driven by lower rates on interest checking, savings, and money market deposits, as well as CDs over $250,000 and long-term debt | Average Interest-Bearing Liabilities ($M) | Sep 2025 Balance | Sep 2025 Yield/Rate | Jun 2025 Balance | Jun 2025 Yield/Rate | Sep 2024 Balance | Sep 2024 Yield/Rate | | :---------------------------------------- | :--------------- | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | | Interest checking deposits | $56,624 | 2.72% | $56,738 | 2.69% | $58,605 | 3.38% | | Savings deposits | 16,376 | 0.46% | 16,962 | 0.48% | 17,272 | 0.71% | | Money market deposits | 37,434 | 2.40% | 36,296 | 2.40% | 37,257 | 3.06% | | CDs $250,000 or less | 10,841 | 3.46% | 10,494 | 3.52% | 10,543 | 4.07% | | Total interest-bearing core deposits | 121,275 | 2.38% | 120,490 | 2.36% | 123,677 | 2.97% | | CDs over $250,000 | 2,244 | 4.00% | 2,200 | 4.07% | 3,499 | 5.08% | | Total interest-bearing deposits | 123,519 | 2.41% | 122,690 | 2.39% | 127,176 | 3.03% | | Federal funds purchased | 198 | 4.35% | 206 | 4.39% | 176 | 5.34% | | FHLB advances | 4,920 | 4.51% | 4,976 | 4.59% | 2,576 | 5.59% | | Long-term debt | 14,001 | 5.31% | 14,599 | 5.36% | 16,716 | 5.65% | | Total interest-bearing liabilities | 143,096 | 2.77% | 142,913 | 2.78% | 147,092 | 3.38% | | Ratios (FTE) | Sep 2025 | Jun 2025 | Sep 2024 | | :----------- | :------- | :------- | :------- | | Net interest margin | 3.13% | 3.12% | 2.90% | | Net interest rate spread | 2.41% | 2.40% | 2.05% | | Interest-bearing liabilities to interest-earning assets | 73.95% | 74.17% | 75.11% | Summary of Loans and Leases Average Portfolio Loans and Leases Average portfolio loans and leases remained stable sequentially at $123.3 billion, showing a 6% increase year-over-year. Commercial loans and leases decreased 1% sequentially but grew 4% year-over-year, while consumer loans increased 2% sequentially and 7% year-over-year, driven by indirect secured consumer and home equity loans | Average Portfolio Loans and Leases ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :------------------------------------ | :------- | :------- | :------- | :------- | :------- | | Total commercial loans and leases | 74,915 | 75,415 | 74,676 | 71,963 | 71,769 | | Total consumer loans | 48,411 | 47,656 | 46,596 | 45,897 | 45,057 | | Total average portfolio loans and leases | $123,326 | $123,071 | $121,272 | $117,860 | $116,826 | End of Period Portfolio Loans and Leases End of period portfolio loans and leases increased 1% sequentially and 6% year-over-year to $123.1 billion. Commercial loans and leases remained stable sequentially but increased 5% year-over-year, while consumer loans increased 1% sequentially and 7% year-over-year | End of Period Portfolio Loans and Leases ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :-------------------------------------------- | :------- | :------- | :------- | :------- | :------- | | Total commercial loans and leases | 74,423 | 74,152 | 75,137 | 73,293 | 71,130 | | Total consumer loans | 48,707 | 48,244 | 47,054 | 46,498 | 45,538 | | Total portfolio loans and leases | $123,130 | $122,396 | $122,191 | $119,791 | $116,668 | Loans and Leases Serviced for Others Total loans and leases serviced for others decreased to $93.3 billion in Q3 2025, a 1.5% sequential decrease and a 6.2% year-over-year decrease, primarily driven by a reduction in residential mortgage loans serviced for others | Loans and Leases Serviced for Others ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :---------------------------------------- | :------- | :------- | :------- | :------- | :------- | | Residential mortgage loans | 89,639 | 91,201 | 92,769 | 94,225 | 95,808 | | Total loans and leases serviced for others | 93,261 | 94,720 | 96,285 | 97,660 | 99,352 | Regulatory Capital Regulatory Capital Ratios Fifth Third Bancorp's CET1 capital ratio decreased 4 bps sequentially to 10.54%, primarily due to risk-weighted asset growth and capital returns to shareholders, including $300 million in share repurchases and an 8% increase in common dividends. The company also redeemed all outstanding Series L Preferred Stock | Regulatory Capital Ratios | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :------------------------ | :------- | :------- | :------- | :------- | :------- | | CET1 capital | 10.54% | 10.58% | 10.43% | 10.57% | 10.75% | | Tier 1 risk-based capital | 11.60% | 11.85% | 11.71% | 11.86% | 12.07% | | Total risk-based capital | 13.51% | 13.77% | 13.63% | 13.86% | 14.13% | | Leverage | 9.24% | 9.42% | 9.23% | 9.22% | 9.11% | - During Q3 2025, Fifth Third repurchased $300 million of its common stock and increased its quarterly cash common dividend by $0.03, or 8%, to $0.40 per share[31] - On September 30, 2025, Fifth Third redeemed all of its outstanding 4.50% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series L[31] Summary of Credit Loss Experience Provision for Credit Losses and ACL The provision for credit losses totaled $197 million in Q3 2025. The Allowance for Credit Losses (ACL) ratio decreased 13 bps sequentially and year-over-year to 1.96% of total portfolio loans and leases. However, the ACL coverage ratio increased to 314% of nonperforming portfolio loans and leases and 302% of nonperforming portfolio assets | Credit Loss Metrics ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :----------------------- | :------- | :------- | :------- | :------- | :------- | | Provision for loan and lease losses | 192 | 167 | 168 | 183 | 159 | | Provision for (benefit from) the reserve for unfunded commitments | 5 | 6 | 6 | (4) | 1 | | Total provision for credit losses | $197 | $173 | $174 | $179 | $160 | | ALLL, ending | $2,265 | $2,412 | $2,384 | $2,352 | $2,305 | | Reserve for unfunded commitments, ending | $151 | $146 | $140 | $134 | $138 | | Total allowance for credit losses (ACL) | $2,416 | $2,558 | $2,524 | $2,486 | $2,443 | | ACL Ratios | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :--------- | :------- | :------- | :------- | :------- | :------- | | As a % of portfolio loans and leases | 1.96% | 2.09% | 2.07% | 2.08% | 2.09% | | As a % of nonperforming portfolio loans and leases | 314% | 300% | 261% | 302% | 356% | | As a % of nonperforming portfolio assets | 302% | 289% | 253% | 291% | 337% | Net Charge-Offs (NCOs) Net charge-offs totaled $339 million in Q3 2025, a significant increase of $200 million from the prior quarter, primarily due to a $178 million impairment related to an asset-backed finance commercial credit. The net charge-off ratio increased 64 bps sequentially to 1.09%. Commercial NCO ratio rose to 1.46%, while consumer NCO ratio decreased 4 bps sequentially to 0.52% | Net Losses Charged-Off ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :-------------------------- | :------- | :------- | :------- | :------- | :------- | | Total losses charged-off | $(382) | $(194) | $(173) | $(175) | $(183) | | Total recoveries of losses previously charged-off | 43 | 55 | 37 | 39 | 41 | | Total net losses charged-off | $(339) | $(139) | $(136) | $(136) | $(142) | | Net Charge-Off Ratios | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :-------------------- | :------- | :------- | :------- | :------- | :------- | | Net charge-off ratio (b) | 1.09% | 0.45% | 0.46% | 0.46% | 0.48% | | Commercial NCO ratio | 1.46% | 0.38% | 0.35% | 0.32% | 0.40% | | Consumer NCO ratio | 0.52% | 0.56% | 0.63% | 0.68% | 0.62% | - The significant increase in net charge-offs in Q3 2025 included $178 million related to the impairment of an asset-backed finance commercial credit[27] Asset Quality Nonperforming Assets and Delinquent Loans Total nonperforming portfolio loans and leases (NPLs) decreased sequentially to $768 million, resulting in an NPL ratio of 0.62%. Total nonperforming portfolio assets (NPAs) also decreased sequentially to $801 million, with an NPA ratio of 0.65%. Both NPL and NPA ratios improved compared to the prior quarter but were slightly higher than the year-ago quarter | Nonperforming Assets ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :------------------------ | :------- | :------- | :------- | :------- | :------- | | Total nonaccrual portfolio loans and leases (NPLs) | $768 | $853 | $966 | $823 | $686 | | Repossessed property | 12 | 8 | 9 | 9 | 11 | | OREO | 21 | 25 | 21 | 21 | 28 | | Total nonperforming portfolio loans and leases and OREO (NPAs) | $801 | $886 | $996 | $853 | $725 | | Nonaccrual loans held for sale | 4 | 27 | 21 | 7 | 8 | | Total nonperforming assets | $805 | $913 | $1,017 | $860 | $733 | | Nonperforming Ratios | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :------------------- | :------- | :------- | :------- | :------- | :------- | | NPL ratio | 0.62% | 0.70% | 0.79% | 0.69% | 0.59% | | NPA ratio | 0.65% | 0.72% | 0.81% | 0.71% | 0.62% | | Delinquent Loans (90 days past due, accrual; $M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :----------------------------------------------- | :------- | :------- | :------- | :------- | :------- | | Total commercial loans and leases | $2 | $8 | $8 | $6 | $14 | | Total consumer loans | 27 | 26 | 25 | 26 | 26 | | Total loans and leases 90 days past due (accrual) | $29 | $34 | $33 | $32 | $40 | Non-GAAP Reconciliation Purpose of Non-GAAP Measures Management uses various non-GAAP financial measures, such as FTE adjustments for tax-favored income, tangible equity measures to exclude intangible items, and adjusted metrics to remove significant or unusual transactions. These measures provide useful information for evaluating operating performance, capital utilization, and comparability with industry peers, complementing GAAP measures without replacing them - Non-GAAP measures like 'net interest income (FTE)' and 'net interest margin (FTE)' adjust for the tax-favored status of certain income, providing a relevant comparison between taxable and non-taxable amounts[67] - Tangible equity measures (e.g., 'tangible book value per share', 'return on average tangible common equity') are used to evaluate performance without the impact of intangible items, enhancing comparability with other companies[68] - Adjusted noninterest income, noninterest expense, and pre-provision net revenue (PPNR) metrics are used to remove the effects of significant, unusual, or large transactions not indicative of ongoing financial performance, improving period-to-period comparability[69][70] - Management also considers tangible common equity ratios (including and excluding AOCI) to assess capital utilization and adequacy, complementing regulatory capital ratios[71] Non-GAAP Reconciliations The report provides detailed reconciliations for various non-GAAP measures, including net interest income (FTE), tangible net income, tangible common equity, adjusted noninterest income, adjusted noninterest expense, and adjusted pre-provision net revenue. These reconciliations illustrate the adjustments made for items such as taxable equivalent adjustments, intangible amortization, interchange litigation matters, severance, and FDIC special assessments | Non-GAAP Reconciliation (Selected Items; $M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :------------------------------------------- | :------- | :------- | :------- | :------- | :------- | | Net interest income (GAAP) | $1,520 | $1,495 | $1,437 | $1,437 | $1,421 | | Add: Taxable equivalent adjustment | 5 | 5 | 5 | 6 | 6 | | Net interest income (FTE) | 1,525 | 1,500 | 1,442 | 1,443 | 1,427 | | Net income available to common shareholders | 608 | 591 | 478 | 582 | 532 | | Add: Intangible amortization, net of tax | 5 | 5 | 6 | 7 | 7 | | Tangible net income available to common shareholders | 613 | 596 | 484 | 589 | 539 | | Total Bancorp shareholders' equity | 21,107 | 21,124 | 20,403 | 19,645 | 20,784 | | Less: Preferred stock | (1,770) | (2,116) | (2,116) | (2,116) | (2,116) | | Goodwill | (4,947) | (4,918) | (4,918) | (4,918) | (4,918) | | Intangible assets | (76) | (75) | (82) | (90) | (98) | | Tangible common equity, including AOCI | 14,314 | 14,015 | 13,287 | 12,521 | 13,652 | | Non-GAAP Reconciliation (Adjustments; $M) | Sep 2025 | Jun 2025 | Sep 2024 | | :---------------------------------------- | :------- | :------- | :------- | | Net income (GAAP) | $649 | $628 | $573 | | Adjustments (pre-tax items): | | | | | Interchange litigation matters | 27 | 1 | 57 | | Severance expense | — | 15 | 9 | | Non-qualified deferred compensation expense/(benefit) | 11 | 16 | 10 | | Securities (gains)/losses | (10) | (16) | (10) | | FDIC special assessment | (6) | — | — | | Adjustments, after-tax | 16 | 12 | 51 | | Adjusted net income | 665 | 640 | 624 | | Efficiency ratio (FTE) | 54.9% | 56.2% | 58.2% | | Adjusted efficiency ratio | 54.1% | 55.2% | 55.9% | Segment Presentation Performance by Segment (Q3 2025) In Q3 2025, Consumer and Small Business Banking was the largest contributor to Net Interest Income (FTE) at $1,082 million, followed by Commercial Banking at $594 million. Commercial Banking reported the highest noninterest income at $357 million. Income before income taxes (FTE) was strongest in Consumer and Small Business Banking ($665 million) and Commercial Banking ($251 million), while General Corporate and Other reported a loss | Segment Performance (Q3 2025; $M) | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | General Corporate and Other | Total | | :-------------------------------- | :----------------- | :---------------------------------- | :-------------------------- | :-------------------------- | :---- | | Net interest income (FTE) | $594 | $1,082 | $55 | $(206) | $1,525 | | Provision for credit losses | (246) | (73) | — | 122 | (197) | | Noninterest income | 357 | 309 | 109 | 6 | 781 | | Noninterest expense | (454) | (653) | (93) | (67) | (1,267) | | Income (loss) before income taxes (FTE) | $251 | $665 | $71 | $(145) | $842 | - During Q1 2025, the Bancorp realigned its reporting structure, moving certain business banking customer relationships and personnel from Commercial Banking to Consumer and Small Business Banking, with prior periods adjusted for comparability[77]