Fifth Third Announces First Quarter 2021 Results
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Rhea-AI Summary
Fifth Third Bancorp (NASDAQ: FITB) reported a strong performance in 1Q21, returning $180 million to shareholders through stock repurchases and having the capacity for an additional $347 million in 2Q21. The bank achieved a ROTCE of 16.8%, with adjusted ROTCE rising to 19.8%, and recorded commercial banking revenue. Improvements in credit quality were evident with a decreasing NCO ratio and a positive NPA ratio. Nevertheless, net interest income (NII) dipped 1%, although the net interest margin (NIM) saw a slight increase.
Positive
- Returned $180 million to shareholders through repurchases.
- Achieved ROTCE of 16.8% and adjusted ROTCE of 19.8%.
- Produced record commercial banking revenue.
- Consumer household growth of 3% compared to 1Q20.
- NCO ratio at historically low levels, indicating improved credit quality.
- Benefit to credit losses and improved reserve coverage from a strong macroeconomic environment.
- NPA ratio improved 7 bps sequentially.
- Named one of the 'World's Most Ethical Companies'.
Negative
- Net interest income (NII) decreased by 1%.
- Underlying NIM declined by ~4 bps when excluding excess cash and PPP impacts.
Fifth Third Bancorp (NASDAQ®: FITB):
Key Highlights
-
Returned
$180 million to shareholders through repurchases; capacity to repurchase up to$347 million in 2Q21 -
ROTCE(a) of
16.8% ; adjusted ROTCE(a) of19.8% excl. AOCI improved 150 bps sequentially - Produced record commercial banking revenue
-
Generated consumer household growth of
3% compared to 1Q20 - Historically low NCO ratio reflecting improvements in commercial and consumer
- Benefit to credit losses and resulting reserve coverage reflects improved macroeconomic environment and strong credit results; NPA ratio improved 7 bps sequentially
-
NII(a) down
1% ; reported NIM(a) increased 4 bps, with ~4 bps decline in underlying NIM excl. excess cash and all PPP impacts(f) - Named one of the "World's Most Ethical Companies" by Ethisphere
-
Exceeded five-year commitment to low-and-moderate income communities by more than
$9 billion
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Key Financial Data |
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$ millions for all balance sheet and income statement items |
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1Q21 |
4Q20 |
1Q20 |
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Income Statement Data |
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FAQ
What were Fifth Third Bancorp's financial highlights for 1Q21?
Fifth Third Bancorp returned $180 million to shareholders and achieved a ROTCE of 16.8%.
How much capacity for repurchases does FITB have in 2Q21?
FITB has the capacity to repurchase up to $347 million in 2Q21.
What is the NCO ratio for Fifth Third Bancorp?
Fifth Third Bancorp reported a historically low NCO ratio, indicating improved credit quality.
How did consumer household growth perform in 1Q21 for FITB?
Consumer household growth was 3% compared to 1Q20.
Why was Fifth Third Bancorp recognized as one of the 'World's Most Ethical Companies'?
The recognition highlights the company's commitment to ethical business practices.
Fifth Third Bancorp
NASDAQ:FITBFITB RankingsFITB Latest NewsFITB Stock Data
32.67B
666.14M
0.59%
86.54%
3.44%
Banks - Regional
State Commercial Banks
United States of America
CINCINNATI
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