FIFTH THIRD BANC(US:FITBP)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 sequentially and a 20% increase year-over-year [5]. - Full year 2025 net income available to common shareholders was $2.4 billion, or $3.53 per diluted share, compared to $2.2 billion, or $3.14 per diluted share in 2024 [5]. - Net income for Q4 2025 was $731 million, representing a 13% increase sequentially and an 18% increase year-over-year [49]. - Net income available to common shareholders increased to $699 million, a 15% sequential increase and a 20% year-over-year increase [49]. - The company reported an annualized net income of $2,900 million for December 2025, compared to $2,467 million in December 2024, representing a significant increase of 17.5% [75]. Revenue and Income Sources - Net interest income (NII) for the fourth quarter 2025 was $1.533 billion, up 1% sequentially and 6% year-over-year, with a net interest margin (NIM) of 3.13% [7][8]. - Noninterest income reached $811 million in the fourth quarter 2025, a 4% increase from the prior quarter and an 11% increase year-over-year [9]. - Total revenue (FTE) was $2,344 million, up 2% sequentially and 8% year-over-year [42]. - Noninterest income for the quarter ended December 31, 2025, was $811 million, up from $781 million in the previous quarter [77]. Asset and Loan Management - Total average portfolio loans and leases remained stable at $123 billion compared to the prior quarter, with average consumer portfolio loans increasing by 1% to $49 billion, driven by growth in home equity and indirect secured consumer loans [16]. - Total average commercial loans and leases increased by 4% to $74.6 billion year-over-year, reflecting growth in commercial and industrial loans and commercial mortgage loans [17]. - Portfolio loans and leases net increased to $120,398 million, reflecting a 3% increase year-over-year [50]. - Total loans and leases reached $124,147 million with a yield of 5.96% in December 2025, compared to $118,492 million and 6.18% in December 2024 [55]. Expenses and Cost Management - Noninterest expense excluding certain items and non-qualified deferred compensation increased by 2% to $1.273 billion compared to the prior quarter, driven by increases in technology and communications and card processing expenses [14]. - Total noninterest expense increased to $1,309 million, a 3% increase sequentially and a 7% increase year-over-year [49]. - The company generated 230 basis points of positive operating leverage in 2025, reflecting strong profitability and disciplined expense management [2]. Capital and Credit Quality - The CET1 capital ratio increased to 10.77%, up 20 basis points sequentially, reflecting strong earnings [31]. - The allowance for credit losses (ACL) was $2.41 billion, representing 1.96% of total portfolio loans and leases [31]. - The net charge-off ratio improved to 0.40% in the fourth quarter 2025, down from 1.09% in the previous quarter [1]. - The provision for credit losses was $119 million in the current quarter [28]. Market and Branch Expansion - The company opened 50 branches in high-growth Southeast markets in 2025, contributing to a 2.5% growth in consumer households [3]. - The number of banking centers increased to 1,130, up from 1,102 in the previous quarter, reflecting market expansion efforts [46]. Strategic Initiatives - The pending acquisition of Comerica is expected to close on February 1, 2026, with anticipated financial synergies [4]. - The company did not engage in share repurchase activity in the fourth quarter of 2025 due to the pending Comerica acquisition [31].