Fifth Third Announces Fourth Quarter 2020 Results
Fifth Third Bancorp (FITB) reported a CET1 ratio approximately 84 basis points above its target, allowing for potential repurchases of up to $180 million in Q1 2021. The bank demonstrated solid credit quality, with stable net charge-offs (NCOs) and a drop in non-performing assets (NPAs), reflecting a better macroeconomic environment. Notably, it completed strategic divestitures generating $200 million in annual savings and expanded its healthcare advisory capabilities through an acquisition. 4Q20 results showed a 1% increase in net interest income (NII) and a 9% rise in noninterest income compared to the previous quarter.
- CET1 ratio is 84 bps above target, enabling up to $180 million in stock buybacks in Q1 2021.
- Strong credit quality with stable NCOs and reduced NPAs.
- Successful divestitures contributing to $200 million in annual expense savings.
- Acquisition of Hammond Hanlon Camp LLC enhances healthcare advisory services.
- 4Q20 NII rose by 1% and noninterest income climbed by 9% from 3Q20.
- Noninterest expense increased by 6%, potentially signaling rising operational costs.
Fifth Third Bancorp (FITB):
Key Highlights
-
CET1 approx. 84 bps above target; positioned to initiate repurchases up to
$180 million in 1Q21
- Solid credit quality, with stable NCOs and declines in NPAs; reserve coverage reflects improved macroeconomic environment and credit results
-
Completed divestitures of property & casualty insurance and 401(k) recordkeeping businesses as well as facility exits to help deliver
$200 million of annual expense savings
- Closed acquisition of Hammond Hanlon Camp LLC, expanding our healthcare advisory expertise
-
Made
$2.8 billion commitment to accelerate racial equity, equality and inclusion, including 4Q20 donation of$25 million
4Q20 compared to 3Q20
-
NII up
1% ; Reported NIM stable, with ~8 bps expansion to underlying NIM excl. excess cash and all PPP impacts(f)
-
Noninterest income up
9% , and up16% excl. certain items(a) reflecting record commercial banking revenue
-
Noninterest expense up
6% (up3% excl. certain items and after impact of non-qualified deferred compensation(a)) reflecting strong business performance
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Income Statement Data |
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FAQ
What is Fifth Third Bancorp's CET1 ratio as of Q4 2020?
Fifth Third Bancorp's CET1 ratio is approximately 84 basis points above its target.
How much is Fifth Third Bancorp planning to repurchase in Q1 2021?
Fifth Third Bancorp plans to initiate repurchases of up to $180 million in Q1 2021.
What were the key financial highlights for Fifth Third Bancorp in Q4 2020?
In Q4 2020, Fifth Third Bancorp reported a 1% increase in net interest income and a 9% rise in noninterest income.
What actions did Fifth Third Bancorp take to improve efficiency?
Fifth Third Bancorp completed strategic divestitures expected to deliver $200 million in annual expense savings.
Fifth Third Bancorp
NASDAQ:FITBFITB RankingsFITB Latest NewsFITB Stock Data
32.13B
666.14M
0.59%
86.54%
3.44%
Banks - Regional
State Commercial Banks
United States of America
CINCINNATI
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