Fifth Third Bancorp Posts Strong Earnings Growth on Improved Credit Trends

Core Viewpoint - Fifth Third Bancorp reported strong fourth-quarter earnings, surpassing analyst expectations due to improved credit performance and ongoing business momentum [1] Financial Performance - Net income available to common shareholders increased by 20% year over year to $699 million, equating to $1.04 per diluted share, despite a net negative impact of $0.04 per share from certain items [1] - Revenue reached $2.34 billion, aligning with consensus estimates, while net interest income rose by 6% year over year to $1.53 billion [1] Credit Quality - Credit quality showed improvement, with net charge-offs decreasing to 40 basis points from 46 basis points in the prior-year quarter [2] - Commercial net charge-offs were reported at 27 basis points [2] - The Common Equity Tier 1 capital ratio increased by 20 basis points to 10.77% [2] Loan and Asset Growth - Total loans grew by 5% compared to the fourth quarter of 2024, driven by a 7% increase in middle-market lending [3] - Consumer household growth reached 2.5%, with a notable 7% growth in Southeast markets [3] - Assets under management rose by 16% year over year to $80 billion [3] Deposit Trends - Solid deposit trends were reported, with demand deposits increasing by 4% year over year [3] - The loan-to-core deposit ratio stood at 72% [3] - Tangible book value per share increased by 21% from the prior year [3]