Fifth Third(US:FITB)2025-11-04 21:35Financial Overview - As of September 30, 2025, Fifth Third Bancorp had $213 billion in assets and operated 1,102 full-service banking centers and 2,184 ATMs across twelve states[13]. - Total assets were reported at $212,903 million as of September 30, 2025, slightly down from $212,927 million at December 31, 2024[50]. - Total Bancorp Shareholders' Equity increased to $21,107 million as of September 30, 2025, up from $19,645 million at December 31, 2024[50]. - The carrying value of total investment securities was $49.5 billion at September 30, 2025, down from $52.4 billion at December 31, 2024[108]. - Other short-term investments increased by $95 million to $17.2 billion as of September 30, 2025, driven by proactive price and liquidity risk management[126]. Revenue and Income - For the three months ended September 30, 2025, net interest income accounted for 66% of total revenue, while noninterest income contributed 34%[16]. - Net income available to common shareholders for Q3 2025 was $608 million, or $0.91 per diluted share, a 14% increase from $532 million, or $0.78 per diluted share, in Q3 2024[36]. - Noninterest income increased by $70 million for Q3 2025, totaling $781 million, and by $107 million for the nine months ended September 30, 2025, totaling $2.224 billion[40]. - Wealth and asset management revenue rose to $181 million for the three months ended September 30, 2025, an increase of 11% from $163 million in the same period in 2024[74]. - Noninterest income in the Wealth and Asset Management segment increased by $10 million to $107 million for the three months ended September 30, 2025, and by $18 million to $312 million for the nine months ended September 30, 2025[172]. Expenses and Efficiency - Noninterest expense rose by $23 million for Q3 2025, totaling $1.267 billion, and by $28 million for the nine months ended September 30, 2025, totaling $3.835 billion[41]. - The Bancorp's efficiency ratio, a non-GAAP measure, is calculated as noninterest expense divided by the sum of net interest income on an FTE basis and noninterest income[30]. - Noninterest expense rose by $39 million to $232 million for the three months ended September 30, 2025, and by $46 million to $697 million for the nine months ended September 30, 2025, primarily due to increases in compensation and benefits[166]. Capital and Ratios - The CET1 risk-based Capital Ratio is a key performance indicator used to assess the Bancorp's capital strength[30]. - The CET1 risk-based capital ratio as of September 30, 2025, was 10.57%, with a total risk-based capital ratio of 13.54%[43]. - The Bancorp issued $700 million of fixed-rate/floating-rate senior notes on January 28, 2025, with an interest rate of 4.967% per annum[25]. Loans and Credit Quality - Total loans and leases amounted to $123,147 million for the nine months ended September 30, 2025, with a yield of 6.09%, compared to $117,466 million and a yield of 6.43% for the same period in 2024[66]. - The allowance for loan and lease losses (ALLL) decreased to $2.3 billion at September 30, 2025, from $2.4 billion at December 31, 2024, representing a decrease of $87 million[71]. - The net charge-off ratio was 1.09% for Q3 2025, compared to 0.48% in Q3 2024, reflecting an increase in credit losses[39]. - Provision for credit losses was $197 million for Q3 2025, a 23% increase from $160 million in Q3 2024, and $544 million for the nine months ended September 30, 2025, up 55% from $351 million in the same period last year[38]. Deposits and Funding - Total deposits decreased from $167.252 billion on December 31, 2024, to $166.569 billion as of September 30, 2025[128]. - Core deposits decreased by $300 million from December 31, 2024, primarily due to decreases in transaction deposits and CDs of $250,000 or less[130]. - Average core deposits represented 77% of average total assets for both the three months ended September 30, 2025 and 2024[127]. Mergers and Acquisitions - The Bancorp entered into a merger agreement with Comerica Incorporated, with a transaction value of $10.9 billion, expected to close at the end of Q1 2026[19]. Tax and Legislation - Recent legislation introduced significant changes to the U.S. tax code, which were reflected in the Bancorp's financial statements but did not have a material impact[28]. - The effective tax rate increased to 22.6% for the three months ended September 30, 2025, compared to 21.3% for the same period in the prior year[98].