Financial 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 $212,903 million as of September 30, 2025, slightly down from $212,927 million at December 31, 2024[50]. - Total assets were $210,965 million as of September 30, 2025, a decrease from $213,174 million at the end of 2024[66]. - Total deposits decreased to $166.569 billion as of September 30, 2025, down from $167.252 billion at December 31, 2024[128]. Revenue and Income - For the three months ended September 30, 2025, net interest income on an FTE basis 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, up 14% 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]. - Income before income taxes (FTE) increased to $842 million for the three months ended September 30, 2025, compared to $734 million in the prior year[147]. Expenses and Losses - 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[38]. - 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]. - Noninterest expense increased by $39 million to $232 million for the three months ended September 30, 2025, primarily due to higher compensation and benefits expenses[166]. Capital and Ratios - The Bancorp's CET1 risk-based Capital Ratio is a key performance indicator used to assess financial condition, calculated as CET1 capital divided by risk-weighted assets[30]. - The CET1 risk-based capital ratio as of September 30, 2025, was 10.57%, with a Tier 1 risk-based capital ratio of 11.63% and a total risk-based capital ratio of 13.54%[43]. - Tangible common equity, excluding AOCI, was $17,590 million as of September 30, 2025, compared to $17,157 million at December 31, 2024, reflecting a solid capital position[50]. Loans and Leases - Total loans and leases amounted to $123,147 million with a yield of 6.09% for the nine months ended September 30, 2025, compared to $117,466 million and a yield of 6.43% in 2024[66]. - Average loans and leases in the Wealth and Asset Management segment increased by $475 million to $4.6 billion for the three months ended September 30, 2025, driven by growth in commercial and industrial loans[174]. - Average commercial loans and leases increased by $1.9 billion for the three months ended September 30, 2025, primarily due to increases in average commercial and industrial loans[157]. Interest Income and Margin - Net interest income on an FTE basis for Q3 2025 was $1.525 billion, a 7% increase from $1.427 billion in Q3 2024, and $4.468 billion for the nine months ended September 30, 2025, up 6% from $4.210 billion in the same period last year[37]. - Net interest margin on an FTE basis was 3.13% for Q3 2025, compared to 2.90% in Q3 2024, indicating improved efficiency in generating income from interest-earning assets[46]. - The net interest margin (FTE) improved to 3.10% for the nine months ended September 30, 2025, compared to 2.88% in 2024[66]. Mergers and Acquisitions - The Bancorp entered into a definitive merger agreement with Comerica Incorporated, with a transaction value of $10.9 billion based on the closing price of Fifth Third's common stock on October 3, 2025[19]. Tax and Legislation - Recent legislation introduced 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, primarily due to decreases in tax credits[98]. Risk Management - The Bancorp employs a dual risk rating system for credit approval, which includes 13 categories for estimating probabilities of default and 11 categories for estimating losses given default[185]. - The Bancorp's credit risk management strategy emphasizes diversification across geographic, industry, product, and customer levels[184]. - The Bancorp closely monitors economic factors such as inflation, interest rates, and market volatility to assess their impact on borrowers[190].
Fifth Third Bancorp(FITBI) - 2025 Q3 - Quarterly Report