Fifth Third Bank to Decrease Prime Lending Rate to 7.75%

Rhea-AI Summary

Fifth Third Bank announced an immediate decrease in its prime lending rate to 7.75%. This marks the second recent reduction in the prime rate, following a previous decrease from 8.50% to 8.00% on September 18, 2024.

Positive

• Prime lending rate reduction from 8.00% to 7.75% indicates lower borrowing costs for customers
• Second consecutive rate decrease shows consistent easing of lending conditions

Negative

• Lower prime rates may reduce interest income and potentially impact bank's profit margins

Insights

Financial Analyst

The 50 basis point reduction in Fifth Third Bank's prime lending rate to 7.75% represents a significant shift in the lending landscape, directly impacting the bank's revenue streams and borrower costs. This move aligns with broader market expectations following the Federal Reserve's dovish stance and signals potential margin compression in the banking sector. The decrease will affect various lending products including credit cards, home equity lines and commercial loans tied to the prime rate. While this could stimulate loan demand by making borrowing more affordable, it may pressure Fifth Third's net interest margin and interest income. The rapid succession of rate cuts from 8.50% to 7.75% in a short period suggests a more accommodative monetary environment ahead.

CINCINNATI--(BUSINESS WIRE)-- Fifth Third Bank, National Association, today announced it will decrease its prime lending rate to 7.75%, effective immediately.

The rate was last changed on September 18, 2024, when Fifth Third decreased its prime lending rate from 8.50% to 8.00%.

About Fifth Third

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. Deposit and credit products provided by Fifth Third Bank, National Association. Member FDIC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107963017/en/

Derek Cuculich (Media Relations)

derek.cuculich@53.com

Matt Curoe (Investor Relations)

matt.curoe@53.com | 513-534-2345

Source: Fifth Third Bank

FAQ

What is Fifth Third Bank's (FITB) new prime lending rate?

Fifth Third Bank's new prime lending rate is 7.75%, effective immediately.

When did Fifth Third Bank (FITB) last change its prime rate?

Fifth Third Bank last changed its prime rate on September 18, 2024, decreasing it from 8.50% to 8.00%.

How much did Fifth Third Bank (FITB) reduce its prime rate in the latest announcement?

Fifth Third Bank reduced its prime rate by 0.25 percentage points, from 8.00% to 7.75%.

What was Fifth Third Bank's (FITB) prime rate before the two recent decreases?

Before the two recent decreases, Fifth Third Bank's prime rate was 8.50%.