Fifth Third Bancorp Reports Fourth Quarter 2024 Diluted Earnings Per Share of $0.85

Rhea-AI Summary

Fifth Third Bancorp (FITB) reported Q4 2024 net income of $582 million, or $0.85 per diluted share, up from $532 million ($0.78/share) in Q3 2024 and $492 million ($0.72/share) in Q4 2023. The quarter included a negative $0.05 per share impact from certain items.

Key highlights include: Net interest income increased 1% sequentially to $1.437 billion, with net interest margin improving by 7 basis points to 2.97%. Fee performance showed strong growth with capital markets fees up 16%, wealth management revenue up 11%, and commercial payments up 7% year-over-year. Consumer and commercial loans increased 2% and 3% respectively compared to Q3 2024.

The bank maintained strong capital levels with a CET1 ratio of 10.51% and returned $1.6 billion to shareholders in 2024. Total consumer households surpassed 2.5 million, and the bank opened 21 new branches in high-growth markets during Q4.

Positive

• Net income increased 9% QoQ to $582 million and 18% YoY
• Net interest margin improved 7 bps to 2.97%
• Strong fee growth: capital markets +16%, wealth management +11%, commercial payments +7% YoY
• Consumer and commercial loans grew 2% and 3% respectively QoQ
• Returned $1.6 billion to shareholders in 2024

Negative

• Net charge-off ratio increased to 0.46% from 0.32% YoY
• Nonperforming asset ratio increased to 0.71% from 0.59% YoY
• Average portfolio loans decreased 1% YoY
• Total average deposits declined 1% YoY

Insights

Financial Analyst

The Q4 2024 results demonstrate solid execution with diluted EPS of $0.85, up from $0.78 in Q3 and $0.72 in Q4 2023. The bank's core performance metrics show resilience with net interest margin expanding 7 bps sequentially to 2.97%, driven by effective deposit cost management and loan growth.

Key strengths include fee income growth in high-value segments: capital markets (+16% YoY), wealth management (+11% YoY) and commercial payments (+7% YoY). The efficiency ratio improved to 54.7%, reflecting disciplined cost control. Credit quality remains stable with NCO ratio decreasing 2 bps sequentially.

Balance sheet positioning shows prudent management with CET1 ratio at 10.51% and $1.6 billion returned to shareholders in 2024. The loan-to-deposit ratio of 73% indicates room for growth while maintaining strong liquidity.

Market Research Analyst

Strategic market positioning is evident in FITB's expansion efforts, with 21 new branches opened in high-growth markets and consumer households exceeding 2.5 million. The bank's focus on fee-generating businesses is paying off through diversified revenue streams.

The decline in interest-bearing liability costs by 38 bps sequentially showcases strong deposit franchise and pricing power. The maintained elevated liquidity position ($18 billion in short-term investments) provides flexibility for future opportunities while potentially compressing margins.

The shift in loan mix toward higher-yielding consumer segments (solar loans +14% YoY) and commercial leases (+14% YoY) indicates strategic portfolio optimization while managing risk. Market share gains in capital markets and wealth management suggest successful execution of growth initiatives in less capital-intensive businesses.

Strong returns driven by growth in loans and fees and improvement in net interest margin

Reported results included a negative $0.05 impact from certain items on page 2 of the earnings release

CINCINNATI--(BUSINESS WIRE)-- Fifth Third Bancorp (NASDAQ: FITB):

	Key Financial Data							Key Highlights
	$ in millions for all balance sheet and income statement items
		4Q24		3Q24		4Q23		Stability: Resilient balance sheet delivers continued positive momentum in net interest income, up 1% sequentially, attributable to loan growth, deposit rate management, and fixed rate asset re-pricing Net charge-off ratio decreased 2 bps sequentially Profitability: Disciplined expense management; efficiency ratio(a) of 56.4%; adjusted efficiency ratio(a) of 54.7% improved 60 bps compared to 4Q23 Interest-bearing liabilities costs down 38 bps from 3Q24, contributing to the 7 bps improvement in NIM Growth: Strong fee performance driven by strategic investments. Compared to 4Q23(i): Capital markets fees up 16% Wealth and asset management revenue up 11% Commercial payments revenue up 7% Compared to 3Q24, period-end consumer and commercial loans increased 2% and 3%, respectively
	Income Statement Data
	Net income available to common shareholders	$582		$532		$492
	Net interest income (U.S. GAAP)	1,437		1,421		1,416
	Net interest income (FTE)(a)	1,443		1,427		1,423
	Noninterest income	732		711		744
	Noninterest expense	1,226		1,244		1,455
	Per Share Data
	Earnings per share, basic	$0.86		$0.78		$0.72
	Earnings per share, diluted	0.85		0.78		0.72
	Book value per share	26.17		27.60		25.04
	Tangible book value per share(a)	18.69		20.20		17.64
	Balance Sheet & Credit Quality
	Average portfolio loans and leases	$117,860		$116,826		$118,858
	Average deposits	167,237		167,196		169,447
	Accumulated other comprehensive loss	(4,636)		(3,446)		(4,487)
	Net charge-off ratio(b)	0.46	%	0.48	%	0.32	%
	Nonperforming asset ratio(c)	0.71		0.62		0.59
	Financial Ratios
	Return on average assets	1.17	%	1.06	%	0.98	%
	Return on average common equity	13.0		11.7		12.9
	Return on average tangible common equity(a)	18.4		16.3		19.8
	CET1 capital(d)(e)	10.51		10.75		10.29
	Net interest margin(a)	2.97		2.90		2.85
	Efficiency(a)	56.4		58.2		67.2
	Other than the Quarterly Financial Review tables beginning on page 14 of the earnings release, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.

From Tim Spence, Fifth Third Chairman, CEO and President:

Fifth Third delivered another year of strong and consistent performance in 2024. In the fourth quarter, we achieved growth in loans, deposits, and fees, while also expanding our net interest margin and maintaining expense discipline.

The consistent investment and execution of our strategic growth priorities continues to yield strong results. In the fourth quarter, our total consumer households surpassed 2.5 million, and we opened 21 new branches in high-growth markets. Both wealth and asset management and capital markets experienced double digit revenue growth compared to the year-ago quarter. Additionally, commercial payments revenue grew 7% and continues to add new payments-led relationships.

During 2024, our strong profitability allowed us to return $1.6 billion of capital to our shareholders while increasing our capital ratios.

The risks we face are well-understood and well-contained. Our balance sheet was resilient in 2024 and is positioned to continue this strong performance in 2025 through a range of interest rate outcomes. We remain proactive in managing our credit risk. As we navigate these risks, we are committed to generating long-term, sustainable value for our shareholders as we adhere to our guiding principles of stability, profitability, and growth - in that order.

	Income Statement Highlights
	($ in millions, except per share data)		For the Three Months Ended						% Change
			December		September		December
			2024		2024		2023		Seq			Yr/Yr
	Condensed Statements of Income
	Net interest income (NII)(a)		$1,443		$1,427		$1,423		1	%		1	%
	Provision for credit losses		179		160		55		12	%		225	%
	Noninterest income		732		711		744		3	%		(2	)%
	Noninterest expense		1,226		1,244		1,455		(1	)%		(16	)%
	Income before income taxes(a)		$770		$734		$657		5	%		17	%
	Taxable equivalent adjustment		$6		$6		$7		—			(14	)%
	Applicable income tax expense		144		155		120		(7	)%		20	%
	Net income		$620		$573		$530		8	%		17	%
	Dividends on preferred stock		38		41		38		(7	)%		—
	Net income available to common shareholders		$582		$532		$492		9	%		18	%
	Earnings per share, diluted		$0.85		$0.78		$0.72		9	%		18	%

Fifth Third Bancorp (NASDAQ^®: FITB) today reported fourth quarter 2024 net income available to common shareholders of $582 million, or $0.85 per diluted share, compared to $532 million, or $0.78 per diluted share, in the prior quarter and $492 million, or $0.72 per diluted share, in the year-ago quarter.

		Diluted earnings per share impact of certain item(s) - 4Q24
		(after-tax impact; $ in millions, except per share data)
		Interchange litigation matters(f)2	$(42)
		Fifth Third Foundation contribution (noninterest expense)(f)	(12)
		Update to the FDIC special assessment (noninterest expense)(f)	8
		Benefit related to the resolution of certain state income tax matters	15
		After-tax impact(f) of certain items	$(31)
		Diluted earnings per share impact of certain item(s)1	$(0.05)
		Totals may not foot due to rounding; 1Diluted earnings per share impact reflects 681.456 million average diluted shares outstanding
		2Interchange litigation matters decreased noninterest income by $51 million and increased noninterest expense by $4 million

Full year 2024 net income available to common shareholders was $2.2 billion, or $3.14 per diluted share, compared to 2023 full year net income available to common shareholders of $2.2 billion, or $3.22 per diluted share.

	Net Interest Income
	(FTE; $ in millions)(a)		For the Three Months Ended									% Change
			December			September			December
			2024			2024			2023			Seq			Yr/Yr
	Interest Income
	Interest income		$2,534			$2,675			$2,655			(5	)%		(5	)%
	Interest expense		1,091			1,248			1,232			(13	)%		(11	)%
	Net interest income (NII)		$1,443			$1,427			$1,423			1	%		1	%
	Average Yield/Rate Analysis											bps Change
	Yield on interest-earning assets		5.21	%		5.43	%		5.31	%		(22	)		(10	)
	Rate paid on interest-bearing liabilities		3.00	%		3.38	%		3.34	%		(38	)		(34	)
	Ratios
	Net interest rate spread		2.21	%		2.05	%		1.97	%		16			24
	Net interest margin (NIM)		2.97	%		2.90	%		2.85	%		7			12

Compared to the prior quarter, NII increased $16 million, or 1%, primarily reflecting higher loan balances and decreased cost of interest-bearing deposits, partially offset by lower loan yields due to the impact of market rates on floating rate loans. These same factors drove the 7 bps increase in NIM. NIM continues to be impacted by the decision to carry elevated liquidity given the environment, with average other short-term investments (including interest-bearing cash) of $18 billion in the current quarter.

Compared to the year-ago quarter, NII increased $20 million, or 1%, and NIM increased 12 bps. This year-over-year improvement was due to the benefits from proactive deposit and wholesale funding management decreasing interest-bearing liabilities costs by 34 bps, which more than offset the combined impact of the 10 bps decrease in interest-earning assets yield and the $4.7 billion reduction in interest-earning assets.

	Noninterest Income
	($ in millions)		For the Three Months Ended						% Change
			December		September		December
			2024		2024		2023		Seq		Yr/Yr
	Noninterest Income
	Wealth and asset management revenue		$163		$163		$147		—		11%
	Commercial payments revenue		155		154		145		1%		7%
	Consumer banking revenue		137		143		135		(4)%		1%
	Capital markets fees		123		111		106		11%		16%
	Commercial banking revenue		109		93		101		17%		8%
	Mortgage banking net revenue		57		50		66		14%		(14)%
	Other noninterest (loss) income		(4)		(13)		28		NM		NM
	Securities (losses) gains, net		(8)		10		16		NM		NM
	Total noninterest income		$732		$711		$744		3%		(2)%
	During the fourth quarter of 2024, certain noninterest income line items were reclassified to better align disclosures to business activities. These reclassifications resulted in three new line items to describe noninterest income, including commercial payments revenue, consumer banking revenue and capital markets fees. Commercial banking revenue and other noninterest income were also affected by the reclassifications. These reclassifications did not affect total noninterest income and were retrospectively applied to all prior periods presented.

Reported noninterest income increased $21 million, or 3%, from the prior quarter, and decreased $12 million, or 2%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including the mark-to-market on the valuation of Visa total return swap and securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans that are more than offset in noninterest expense.

	Noninterest Income excluding certain items
	($ in millions)		For the Three Months Ended
			December		September		December		% Change
			2024		2024		2023		Seq		Yr/Yr
	Noninterest Income excluding certain items
	Noninterest income (U.S. GAAP)		$732		$711		$744
	Valuation of Visa total return swap		51		47		22
	Securities (gains) losses, net		8		(10)		(16)
	Noninterest income excluding certain items(a)		$791		$748		$750		6%		5%

Noninterest income excluding certain items increased $43 million, or 6%, compared to the prior quarter, and increased $41 million, or 5%, from the year-ago quarter.

Compared to the prior quarter, wealth and asset management revenue was flat, due to a decrease in brokerage fee revenue, offset by an increase in personal asset management revenue. Commercial payments revenue increased $1 million, or 1%, primarily driven by an increase in commercial deposit fees. Capital markets fees increased $12 million, or 11%, reflecting increases in syndication fees and M&A advisory fees. Commercial banking revenue increased $16 million, or 17%, primarily reflecting increases in lease syndication and remarketing. Mortgage banking net revenue increased $7 million, or 14%, primarily due to the negative MSR net valuation adjustments in the prior quarter not repeating in the fourth quarter. Other noninterest income results were driven by the recognition of tax receivable agreement revenue of $11 million in the current quarter.

Compared to the year-ago quarter, wealth and asset management revenue increased $16 million, or 11%, primarily reflecting an increase in personal asset management revenue. Commercial payments revenue increased $10 million, or 7%, primarily driven by new customer acquisition, partially offset by a decrease in commercial card revenue. Consumer banking revenue increased $2 million, or 1%, primarily driven by an increase in card and processing revenue. Capital markets fees increased $17 million, or 16%, reflecting an increase in syndication fees, partially offset by a decrease in institutional brokerage revenue. Commercial banking revenue increased $8 million, or 8%, primarily reflecting an increase in lease syndication and remarketing, partially offset by the continued decrease in operating lease revenue. Mortgage banking net revenue decreased $9 million, or 14%, primarily reflecting decreases in servicing fees and origination fees and gains on loan sales. The decrease in other noninterest income was primarily attributable to lower tax receivable agreement revenue.

	Noninterest Expense
	($ in millions)		For the Three Months Ended						% Change
			December		September		December
			2024		2024		2023		Seq		Yr/Yr
	Noninterest Expense
	Compensation and benefits		$665		$690		$659		(4)%		1%
	Technology and communications		123		121		117		2%		5%
	Net occupancy expense		88		81		83		9%		6%
	Equipment expense		39		38		37		3%		5%
	Loan and lease expense		36		34		34		6%		6%
	Marketing expense		23		26		30		(12)%		(23)%
	Card and processing expense		21		22		21		(5)%		—
	Other noninterest expense		231		232		474		—		(51)%
	Total noninterest expense		$1,226		$1,244		$1,455		(1)%		(16)%
	During the fourth quarter of 2024, certain noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications resulted in the separate disclosure of loan and lease expense, which was previously a component of other noninterest expense. These reclassifications did not affect total noninterest expense and were retrospectively applied to all prior periods presented.

Reported noninterest expense decreased $18 million, or 1%, from the prior quarter, and decreased $229 million, or 16%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.

	Noninterest Expense excluding certain item(s)
	($ in millions)		For the Three Months Ended						% Change
			December		September		December
			2024		2024		2023		Seq		Yr/Yr
	Noninterest Expense excluding certain item(s)
	Noninterest expense (U.S. GAAP)		$1,226		$1,244		$1,455
	Fifth Third Foundation contribution		(15)		—		(15)
	Interchange litigation matters		(4)		(10)		—
	FDIC special assessment		11		—		(224)
	Restructuring severance expense		—		(9)		(5)
	Noninterest expense excluding certain item(s)(a)		$1,218		$1,225		$1,211		(1)%		1%

Compared to the prior quarter, noninterest expense excluding certain items decreased $7 million, or 1%, primarily reflecting a decrease in compensation and benefits expense, offset by an increase in net occupancy expense. Noninterest expense in the current quarter included a $7 million benefit related to the mark-to-market impact of non-qualified deferred compensation compared to a $10 million expense in the prior quarter, both of which were largely offset in net securities gains/losses through noninterest income.

Compared to the year-ago quarter, noninterest expense excluding certain items increased $7 million, or 1%, primarily reflecting increases in compensation and benefits expense as well as technology and communications expense, partially offset by a decrease in marketing expense. The year-ago quarter included a $13 million expense related to the mark-to-market impact of non-qualified deferred compensation, which was largely offset in net securities gains through noninterest income.

	Average Interest-Earning Assets
	($ in millions)		For the Three Months Ended						% Change
			December		September		December
			2024		2024		2023		Seq		Yr/Yr
	Average Portfolio Loans and Leases
	Commercial loans and leases:
	Commercial and industrial loans		$51,567		$51,615		$54,633		—		(6)%
	Commercial mortgage loans		11,792		11,488		11,338		3%		4%
	Commercial construction loans		5,702		5,981		5,727		(5)%		—
	Commercial leases		2,902		2,685		2,535		8%		14%
	Total commercial loans and leases		$71,963		$71,769		$74,233		—		(3)%
	Consumer loans:
	Residential mortgage loans		$17,322		$17,031		$17,129		2%		1%
	Home equity		4,125		4,018		3,905		3%		6%
	Indirect secured consumer loans		16,100		15,680		15,129		3%		6%
	Credit card		1,668		1,708		1,829		(2)%		(9)%
	Solar energy installation loans		4,137		3,990		3,630		4%		14%
	Other consumer loans		2,545		2,630		3,003		(3)%		(15)%
	Total consumer loans		$45,897		$45,057		$44,625		2%		3%
	Total average portfolio loans and leases		$117,860		$116,826		$118,858		1%		(1)%
	Average Loans and Leases Held for Sale
	Commercial loans and leases held for sale		$48		$16		$72		200%		(33)%
	Consumer loans held for sale		584		573		379		2%		54%
	Total average loans and leases held for sale		$632		$589		$451		7%		40%
	Total average loans and leases		$118,492		$117,415		$119,309		1%		(1)%
	Securities (taxable and tax-exempt)		$56,702		$56,707		$57,351		—		(1)%
	Other short-term investments		18,319		21,714		21,506		(16)%		(15)%
	Total average interest-earning assets		$193,513		$195,836		$198,166		(1)%		(2)%

Compared to the prior quarter, total average portfolio loans and leases increased 1%. Average commercial portfolio loans and leases were stable, primarily reflecting increases in commercial mortgage loans and commercial leases, offset by a decrease in commercial construction loans. Average consumer portfolio loans increased 2%, primarily reflecting increases in indirect secured consumer loans, residential mortgage loans, and solar energy installation loans, partially offset by a decrease in other consumer loans.

Compared to the year-ago quarter, total average portfolio loans and leases decreased 1%. Average commercial portfolio loans and leases decreased 3%, primarily reflecting a decrease in C&I loans. Average consumer portfolio loans increased 3%, primarily reflecting increases in indirect secured consumer loans, solar energy installation loans, and home equity balances, partially offset by decreases in other consumer loans and credit card balances.

Average securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter were stable compared to the prior quarter and decreased 1% compared to the year-ago quarter. Average other short-term investments (including interest-bearing cash) of $18 billion in the current quarter decreased 16% compared to the prior quarter and decreased 15% compared to the year-ago quarter.

Period-end commercial portfolio loans and leases of $73 billion increased 3% compared to the prior quarter, primarily reflecting increases in C&I loans and commercial mortgage loans, partially offset by a decrease in commercial construction loans. Compared to the year-ago quarter, period-end commercial portfolio loans and leases increased 1%, primarily due to increases in commercial mortgage loans and commercial leases, partially offset by a decrease in C&I loans.

Period-end consumer portfolio loans of $46 billion increased 2% compared to the prior quarter, primarily reflecting increases in residential mortgage loans and indirect secured consumer loans. Compared to the year-ago quarter, period-end consumer portfolio loans increased 5%, primarily driven by increases in indirect secured consumer loans, residential mortgage loans, and solar energy installation loans, partially offset by a decrease in other consumer loans.

Total period-end securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter were stable compared to the prior quarter and decreased 1% compared to the year-ago quarter. Period-end other short-term investments of approximately $17 billion decreased 21% compared to the prior quarter, and decreased 22% compared to the year-ago quarter.

	Average Deposits
	($ in millions)		For the Three Months Ended						% Change
			December		September		December
			2024		2024		2023		Seq		Yr/Yr
	Average Deposits
	Demand		$40,137		$40,020		$43,396		—		(8)%
	Interest checking		59,277		58,441		57,114		1%		4%
	Savings		17,257		17,272		18,252		—		(5)%
	Money market		37,279		37,257		34,292		—		9%
	Foreign office(g)		164		164		178		—		(8)%
	Total transaction deposits		$154,114		$153,154		$153,232		1%		1%
	CDs $250,000 or less		10,592		10,543		10,556		—		—
	Total core deposits		$164,706		$163,697		$163,788		1%		1%
	CDs over $250,000		2,531		3,499		5,659		(28)%		(55)%
	Total average deposits		$167,237		$167,196		$169,447		—		(1)%
	CDs over $250,000 includes $1.5BN, $2.6BN, and $4.8BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 12/31/24, 9/30/24, and 12/31/23, respectively.

Compared to the prior quarter, total average deposits were stable, primarily reflecting increases in interest checking balances and demand deposits, offset by a decline in CDs over $250,000 which consists primarily of retail brokered deposits. Average demand deposits represented 24% of total core deposits in the current quarter. Period-end total deposits decreased 1%.

Compared to the year-ago quarter, total average deposits decreased 1%, primarily due to decreases in demand deposits, the aforementioned decrease in retail brokered deposits, and savings balances, partially offset by increases in money market deposits and interest checking balances. Period-end total deposits decreased 1%.

The period-end portfolio loan-to-core deposit ratio was 73% in the current quarter, compared to 71% in the prior quarter and 72% in the year-ago quarter.

	Average Wholesale Funding
	($ in millions)		For the Three Months Ended						% Change
			December		September		December
			2024		2024		2023		Seq		Yr/Yr
	Average Wholesale Funding
	CDs over $250,000		$2,531		$3,499		$5,659		(28)%		(55)%
	Federal funds purchased		223		176		191		27%		17%
	Securities sold under repurchase agreements		313		396		350		(21)%		(11)%
	FHLB advances		1,567		2,576		3,293		(39)%		(52)%
	Derivative collateral and other secured borrowings		76		52		34		46%		124%
	Long-term debt		15,492		16,716		16,588		(7)%		(7)%
	Total average wholesale funding		$20,202		$23,415		$26,115		(14)%		(23)%
	CDs over $250,000 includes $1.5BN, $2.6BN, and $4.8BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 12/31/24, 9/30/24, and 12/31/23, respectively.

Compared to the prior quarter, average wholesale funding decreased 14%, primarily driven by decreases in long-term debt, FHLB advances, and CDs over $250,000. The decrease in CDs over $250,000 was primarily driven by a decrease in retail brokered deposits. The same items drove the 23% decrease from the year-ago quarter.

Credit Quality Summary
($ in millions)		As of and For the Three Months Ended
		December		September		June		March		December
		2024		2024		2024		2024		2023
Total nonaccrual portfolio loans and leases (NPLs)		$823		$686		$606		$708		$649
Repossessed property		9		11		9		8		10
OREO		21		28		28		27		29
Total nonperforming portfolio loans and leases and OREO (NPAs)		$853		$725		$643		$743		$688
NPL ratio(h)		0.69%		0.59%		0.52%		0.61%		0.55%
NPA ratio(c)		0.71%		0.62%		0.55%		0.64%		0.59%
Portfolio loans and leases 30-89 days past due (accrual)		$303		$283		$302		$342		$359
Portfolio loans and leases 90 days past due (accrual)		32		40		33		35		36
30-89 days past due as a % of portfolio loans and leases		0.25%		0.24%		0.26%		0.29%		0.31%
90 days past due as a % of portfolio loans and leases		0.03%		0.03%		0.03%		0.03%		0.03%
Allowance for loan and lease losses (ALLL), beginning		$2,305		$2,288		$2,318		$2,322		$2,340
Total net losses charged-off		(136)		(142)		(144)		(110)		(96)
Provision for loan and lease losses		183		159		114		106		78
ALLL, ending		$2,352		$2,305		$2,288		$2,318		$2,322
Reserve for unfunded commitments, beginning		$138		$137		$154		$166		$189
(Benefit from) provision for the reserve for unfunded commitments		(4)		1		(17)		(12)		(23)
Reserve for unfunded commitments, ending		$134		$138		$137		$154		$166
Total allowance for credit losses (ACL)		$2,486		$2,443		$2,425		$2,472		$2,488
ACL ratios:
As a % of portfolio loans and leases		2.08%		2.09%		2.08%		2.12%		2.12%
As a % of nonperforming portfolio loans and leases		302%		356%		400%		349%		383%
As a % of nonperforming portfolio assets		291%		337%		377%		333%		362%
ALLL as a % of portfolio loans and leases		1.96%		1.98%		1.96%		1.99%		1.98%
Total losses charged-off		$(175)		$(183)		$(182)		$(146)		$(133)
Total recoveries of losses previously charged-off		39		41		38		36		37
Total net losses charged-off		$(136)		$(142)		$(144)		$(110)		$(96)
Net charge-off ratio (NCO ratio)(b)		0.46%		0.48%		0.49%		0.38%		0.32%
Commercial NCO ratio		0.32%		0.40%		0.45%		0.19%		0.13%
Consumer NCO ratio		0.68%		0.62%		0.57%		0.67%		0.64%

The provision for credit losses totaled $179 million in the current quarter. The ACL ratio was 2.08% of total portfolio loans and leases at quarter end, compared with 2.09% for the prior quarter end and 2.12% for the year-ago quarter end. In the current quarter, the ACL was 302% of nonperforming portfolio loans and leases and 291% of nonperforming portfolio assets.

Net charge-offs were $136 million in the current quarter, resulting in an NCO ratio of 0.46%. Compared to the prior quarter, net charge-offs decreased $6 million and the NCO ratio decreased 2 bps. Commercial net charge-offs were $57 million, resulting in a commercial NCO ratio of 0.32%, which decreased 8 bps compared to the prior quarter. Consumer net charge-offs were $79 million, resulting in a consumer NCO ratio of 0.68%, which increased 6 bps compared to the prior quarter.

Compared to the year-ago quarter, net charge-offs increased $40 million and the NCO ratio increased 14 bps. The commercial NCO ratio increased 19 bps compared to the prior year, and the consumer NCO ratio increased 4 bps compared to the prior year.

Nonperforming portfolio loans and leases were $823 million in the current quarter, with the resulting NPL ratio of 0.69%. Compared to the prior quarter, NPLs increased $137 million with the NPL ratio increasing 10 bps. Compared to the year-ago quarter, NPLs increased $174 million with the NPL ratio increasing 14 bps.

Nonperforming portfolio assets were $853 million in the current quarter, with the resulting NPA ratio of 0.71%. Compared to the prior quarter, NPAs increased $128 million with the NPA ratio increasing 9 bps. Compared to the year-ago quarter, NPAs increased $165 million with the NPA ratio increasing 12 bps.

	Capital Position
			As of and For the Three Months Ended
			December		September		June		March		December
			2024		2024		2024		2024		2023
	Capital Position
	Average total Bancorp shareholders' equity as a % of average assets		9.40%		9.47%		8.80%		8.78%		8.04%
	Tangible equity(a)		9.02%		8.99%		8.91%		8.75%		8.65%
	Tangible common equity (excluding AOCI)(a)		8.03%		8.00%		7.92%		7.77%		7.67%
	Tangible common equity (including AOCI)(a)		6.02%		6.52%		5.80%		5.67%		5.73%
	Regulatory Capital Ratios(d)(e)
	CET1 capital		10.51%		10.75%		10.62%		10.47%		10.29%
	Tier 1 risk-based capital		11.80%		12.07%		11.93%		11.77%		11.59%
	Total risk-based capital		13.80%		14.13%		13.95%		13.81%		13.72%
	Leverage		9.22%		9.11%		9.07%		8.94%		8.73%

CET1 capital ratio of 10.51% decreased 24 bps sequentially due to loan growth during the quarter driving an increase in risk-weighted assets. During the fourth quarter of 2024, Fifth Third repurchased $300 million of its common stock, which reduced shares outstanding by approximately 6.7 million at quarter end.

Tax Rate

The effective tax rate for the quarter was 18.8% compared with 21.3% in the prior quarter and 18.4% in the year-ago quarter. The tax rate in the fourth quarter reflects a favorable adjustment of $15 million associated with statutes of limitations expiration.

Conference Call

Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Us” then “Investor Relations”). Those unable to listen to the live webcast may access a webcast replay through the Fifth Third Investor Relations website at the same web address, which will be available for 30 days.

Corporate Profile

Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people, and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere's World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.

Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.” Investor information and press releases can be viewed at www.53.com.

Earnings Release End Notes
(a)	Non-GAAP measure; see discussion of non-GAAP reconciliation beginning on page 27 of the earnings release.
(b)	Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis.
(c)	Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.
(d)	Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(e)	Current period regulatory capital ratios are estimated.
(f)	Assumes a 23% tax rate.
(g)	Includes commercial customer Eurodollar sweep balances for which the Bank pays rates comparable to other commercial deposit accounts.
(h)	Nonperforming portfolio loans and leases as a percent of portfolio loans and leases.
(i)	During the fourth quarter of 2024, certain noninterest income line items were reclassified to better align disclosures to business activities. These reclassifications resulted in three new line items to describe noninterest income, including commercial payments revenue, consumer banking revenue and capital markets fees. Commercial banking revenue and other noninterest income were also affected by the reclassifications. These reclassifications did not affect total noninterest income and were retrospectively applied to all prior periods presented.

FORWARD-LOOKING STATEMENTS

This release contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements other than statements of historical fact are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “potential,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K as updated by our filings with the U.S. Securities and Exchange Commission (“SEC”).

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) deteriorating credit quality; (2) loan concentration by location or industry of borrowers or collateral; (3) problems encountered by other financial institutions; (4) inadequate sources of funding or liquidity; (5) unfavorable actions of rating agencies; (6) inability to maintain or grow deposits; (7) limitations on the ability to receive dividends from subsidiaries; (8) cyber-security risks; (9) Fifth Third’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (10) failures by third-party service providers; (11) inability to manage strategic initiatives and/or organizational changes; (12) inability to implement technology system enhancements; (13) failure of internal controls and other risk management programs; (14) losses related to fraud, theft, misappropriation or violence; (15) inability to attract and retain skilled personnel; (16) adverse impacts of government regulation; (17) governmental or regulatory changes or other actions; (18) failures to meet applicable capital requirements; (19) regulatory objections to Fifth Third’s capital plan; (20) regulation of Fifth Third’s derivatives activities; (21) deposit insurance premiums; (22) assessments for the orderly liquidation fund; (23) weakness in the national or local economies; (24) global political and economic uncertainty or negative actions; (25) changes in interest rates and the effects of inflation; (26) changes and trends in capital markets; (27) fluctuation of Fifth Third’s stock price; (28) volatility in mortgage banking revenue; (29) litigation, investigations, and enforcement proceedings by governmental authorities; (30) breaches of contractual covenants, representations and warranties; (31) competition and changes in the financial services industry; (32) potential impacts of the adoption of real-time payment networks; (33) changing retail distribution strategies, customer preferences and behavior; (34) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (35) potential dilution from future acquisitions; (36) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (37) results of investments or acquired entities; (38) changes in accounting standards or interpretation or declines in the value of Fifth Third’s goodwill or other intangible assets; (39) inaccuracies or other failures from the use of models; (40) effects of critical accounting policies and judgments or the use of inaccurate estimates; (41) weather-related events, other natural disasters, or health emergencies (including pandemics); (42) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity; (43) changes in law or requirements imposed by Fifth Third’s regulators impacting our capital actions, including dividend payments and stock repurchases; and (44) Fifth Third's ability to meet its environmental and/or social targets, goals and commitments.

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.

Category: Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20250121022434/en/

Investor contact: Matt Curoe (513) 534-2345

Media contact: Jennifer Hendricks Sullivan (614) 744-7693

Source: Fifth Third Bancorp

FAQ

What was Fifth Third's (FITB) earnings per share in Q4 2024?

Fifth Third reported diluted earnings per share of $0.85 in Q4 2024, up from $0.78 in Q3 2024 and $0.72 in Q4 2023.

How much did FITB's net interest margin improve in Q4 2024?

FITB's net interest margin improved by 7 basis points sequentially to 2.97% in Q4 2024.

What was FITB's loan growth in Q4 2024?

In Q4 2024, FITB's consumer loans grew 2% and commercial loans increased 3% compared to the previous quarter.

How much capital did FITB return to shareholders in 2024?

Fifth Third returned $1.6 billion of capital to shareholders during 2024.

What was FITB's CET1 capital ratio in Q4 2024?

FITB's CET1 capital ratio was 10.51% in Q4 2024.