Fifth Third(US:FITB)2026-01-20 11:30Financial Performance - Fourth quarter 2025 net income available to common shareholders was $699 million, or $1.04 per diluted share, representing a 15% increase from the prior quarter and a 20% increase year-over-year[5]. - Net interest income (NII) for the fourth quarter 2025 was $1.533 billion, a 1% increase sequentially and a 6% increase year-over-year[7]. - Noninterest income reached $811 million in the fourth quarter 2025, up 4% from the previous quarter and 11% from the same quarter last year[9]. - Total revenue (FTE) was $2,344 million, up 2% sequentially and 8% year-over-year[42]. - Net income for Q4 2025 reached $731 million, representing a 13% increase sequentially and an 18% increase year-over-year[48]. - Net income available to common shareholders increased to $699 million, a 15% sequential increase and a 20% year-over-year increase[48]. - Total revenue (FTE) for December 2025 reached $2,344 million, up from $2,175 million in December 2024, indicating a year-over-year growth of 7.8%[75]. Asset Management - Assets under management increased 16% year-over-year to $80 billion, contributing to record quarterly revenue in the Wealth & Asset Management business[3]. - The bank's assets under care increased to $690 billion, a 1% sequential increase and a 9% year-over-year increase[43]. - Assets under management grew to $80 billion, representing a 4% sequential increase and a 16% year-over-year increase[43]. Loan and Deposit Growth - Total average portfolio loans and leases remained stable at $123 billion compared to the prior quarter, with average consumer portfolio loans increasing 1% to $49 billion, driven by growth in home equity and indirect secured consumer loans[16]. - Total average deposits increased 2% to $168 billion compared to the prior quarter, primarily due to growth in interest checking, money market, and demand deposits[22]. - Period-end total deposits increased 3% to $172 billion, reflecting a strategic focus on enhancing the deposit mix[22]. - Total average commercial loans and leases increased 4% to $74.6 billion year-over-year, reflecting growth in commercial and industrial loans and commercial mortgage loans[17]. Credit Quality - The net charge-off ratio improved to 0.40% in the fourth quarter 2025, down from 1.09% in the previous quarter[1]. - Net charge-offs totaled $125 million, down $214 million from the prior quarter, resulting in a net charge-off ratio of 0.40%, a decrease of 69 basis points[28]. - The allowance for credit losses (ACL) was $2.41 billion, representing 1.96% of total portfolio loans and leases, consistent with the prior quarter[31]. - Total nonperforming portfolio loans and leases (NPLs) decreased to $767 million, with an NPL ratio of 0.62%, unchanged from the prior quarter[30]. Efficiency and Expenses - The efficiency ratio improved to 54.3%, an enhancement of 50 basis points year-over-year[1]. - Noninterest expense excluding certain items and non-qualified deferred compensation increased 2% to $1.273 billion compared to the prior quarter, driven by increases in technology and communications and card processing expenses[14]. - Year-over-year, noninterest expense excluding certain items and non-qualified deferred compensation rose by $48 million, or 4%, primarily due to higher compensation and benefits, technology and communications, and marketing expenses[15]. - Total noninterest expense was $1,309 million, up 3% sequentially and 7% year-over-year[48]. Capital and Shareholder Returns - The CET1 capital ratio increased by 20 basis points to 10.77%, reflecting strong earnings that bolstered retained capital[31]. - The dividend payout ratio was 38.1%, down from 44.0% in the previous quarter, indicating a potential for increased shareholder returns[46]. - Total equity increased to $21,724 million in December 2025, up from $19,645 million in December 2024, reflecting a growth of 10.98% year-over-year[54]. Future Outlook - The company expects to close the acquisition of Comerica on February 1, 2026, with anticipated financial synergies[4]. - Fifth Third will host a conference call to discuss these financial results, accessible through the Fifth Third Investor Relations website[33].