Fifth Third Reports Fourth Quarter 2023 Diluted Earnings Per Share of $0.72
- Strong financial results for the fourth quarter of 2023
- Net income of $530 million compared to $660 million in the prior quarter and $737 million in the year-ago quarter
- Increase in average deposits by 5% compared to the year-ago quarter
- Maintained full Category 1 LCR compliance
- Achieved a loan-to-core deposit ratio of 72%
- Increased CET1 capital by 49 bps sequentially to 10.29%
- Increased adjusted ROTCE ex. AOCI of 16.8%
- Adjusted efficiency ratio of 55.3%
- Tangible book value per share increase of 28%
- Diluted earnings per share impact of certain items of -$0.27
- Including FDIC special assessment, valuation of Visa total return swap, Fifth Third Foundation contribution, and restructuring severance expense
Insights
The reported financial results from Fifth Third Bancorp reflect a mixed performance, with some areas showing strength and others indicating potential concerns. The company's capital position has strengthened, as evidenced by the increase in the CET1 capital ratio to 10.29%, which is a positive sign of financial health and regulatory compliance. This increase is significant as it suggests a robust ability to absorb potential losses and supports future lending activities.
However, there are signs of decreasing profitability, with net income and earnings per share both showing declines from the previous quarter and the same quarter last year. This could be indicative of a challenging interest rate environment or increased competition affecting margins. The reported efficiency ratio of 67.2% has also deteriorated compared to previous periods, suggesting higher costs relative to revenue.
From an investor's perspective, the decline in net interest income (NII) and net interest margin (NIM) is concerning, as these are key indicators of a bank's core profitability. The reported decrease in NII and NIM could be attributed to rising deposit costs and the decision to carry additional liquidity, both of which can compress margins.
Fifth Third Bancorp's strategic initiatives, such as the opening of 19 new branches, primarily in high-growth Southeast markets, signify an investment in future growth. This expansion, coupled with a 3% increase in consumer household growth, positions the company to potentially capture a larger market share in these regions. However, the overall loan-to-core deposit ratio of 72% indicates a conservative lending approach, which could be a response to the uncertain economic environment.
The bank's deposit growth, which outpaced the industry average, is a strong indicator of customer trust and competitive positioning. This growth is particularly noteworthy given the industry's reported average decline in deposits. The full Category 1 LCR compliance also reflects well on the bank's liquidity management practices.
The broader economic implications of Fifth Third Bancorp's results are significant. The increase in interest expense by 147% year-over-year suggests that the rising interest rate environment is impacting the bank's cost of funds. This could have broader implications for the banking sector, as all institutions grapple with the Federal Reserve's tightening monetary policy.
The bank's performance is also a reflection of the economic headwinds faced by the financial services industry, including increased competition for deposits and loans, as well as the impact of regulatory changes. The net charge-off ratio and nonperforming asset ratio provide insights into the asset quality and risk management capabilities of the bank, with the former showing a slight improvement while the latter has worsened compared to the previous quarter.
Strong capital accretion and continued to grow deposits and improve liquidity
Reported results included a negative
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Key Financial Data |
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Key Highlights |
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$ in millions for all balance sheet and income statement items |
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4Q23 |
3Q23 |
4Q22 |
Stability:
Profitability: Compared to 3Q23
Growth:
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Income Statement Data |
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Net income available to common shareholders |
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Net interest income ( |
1,416 |
|
1,438 |
|
1,577 |
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|
Net interest income (FTE)(a) |
1,423 |
|
1,445 |
|
1,582 |
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Noninterest income |
744 |
|
715 |
|
735 |
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Noninterest expense |
1,455 |
|
1,188 |
|
1,218 |
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Per Share Data |
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Earnings per share, basic |
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Earnings per share, diluted |
0.72 |
|
0.91 |
|
1.01 |
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Book value per share |
25.04 |
|
21.19 |
|
22.26 |
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Tangible book value per share(a) |
17.64 |
|
13.76 |
|
14.83 |
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Balance Sheet & Credit Quality |
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Average portfolio loans and leases |
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Average deposits |
169,447 |
|
165,644 |
|
161,061 |
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Accumulated other comprehensive loss |
(4,487 |
) |
(6,839 |
) |
(5,110 |
) |
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Net charge-off ratio(b) |
0.32 |
% |
0.41 |
% |
0.22 |
% |
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Nonperforming asset ratio(c) |
0.59 |
|
0.51 |
|
0.44 |
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Financial Ratios |
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Return on average assets |
0.98 |
% |
1.26 |
% |
1.42 |
% |
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Return on average common equity |
12.9 |
|
16.3 |
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18.8 |
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Return on average tangible common equity(a) |
19.8 |
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24.7 |
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29.2 |
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CET1 capital(d)(e) |
10.29 |
|
9.80 |
|
9.28 |
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Net interest margin(a) |
2.85 |
|
2.98 |
|
3.35 |
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Efficiency(a) |
67.2 |
|
55.0 |
|
52.6 |
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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. |
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From Tim Spence, Fifth Third Chairman, President and CEO: |
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Fifth Third delivered strong operating results in 2023 while continuing to successfully navigate the challenging environment. We generated record revenue while prudently managing expenses and continuing to invest in our businesses. Our credit metrics reflect disciplined credit risk management, with net charge-offs for the quarter in-line with our expectations.
In the fourth quarter, we successfully completed our risk-weighted assets initiative and accreted nearly 50 basis points of CET1 capital. We generated another quarter of strong deposit growth, with average deposits up
We continued to invest for growth by opening 19 branches during the quarter, 18 of which are in our high-growth Southeast markets, and generated consumer household growth of
While the economic and regulatory environments remain uncertain, we remain well positioned to respond to a range of potential economic and regulatory outcomes. We will continue to follow our guiding principles of stability, profitability, and growth – in that order.
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Income Statement Highlights |
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($ in millions, except per share data) |
For the Three Months Ended |
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% Change |
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December |
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September |
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December |
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2023 |
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2023 |
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2022 |
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Seq |
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Yr/Yr |
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Condensed Statements of Income |
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Net interest income (NII)(a) |
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(2)% |
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(10)% |
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Provision for credit losses |
55 |
|
119 |
|
180 |
|
(54)% |
|
(69)% |
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Noninterest income |
744 |
|
715 |
|
735 |
|
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Noninterest expense |
1,455 |
|
1,188 |
|
1,218 |
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Income before income taxes(a) |
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(23)% |
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(29)% |
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Taxable equivalent adjustment |
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— |
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Applicable income tax expense |
120 |
|
186 |
|
177 |
|
(35)% |
|
(32)% |
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Net income |
|
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|
(20)% |
|
(28)% |
|
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|
Dividends on preferred stock |
38 |
|
37 |
|
38 |
|
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|
— |
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Net income available to common shareholders |
|
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|
(21)% |
|
(30)% |
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Earnings per share, diluted |
|
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|
(21)% |
|
(29)% |
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Fifth Third Bancorp (NASDAQ®: FITB) today reported fourth quarter 2023 net income of
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Diluted earnings per share impact of certain item(s) - 4Q23 |
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(after-tax impact; $ in millions, except per share data) |
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FDIC special assessment (noninterest expense)(f) |
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Valuation of Visa total return swap (noninterest income)(f) |
(17) |
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Fifth Third Foundation contribution (noninterest expense)(f) |
(12) |
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Restructuring severance expense (noninterest expense)(f) |
(4) |
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Income tax benefit associated with resolution of certain acquisition related tax matters |
17 |
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After-tax impact of certain item(s) |
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Diluted earnings per share impact of certain item(s)1 |
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1Diluted earnings per share impact reflects 687.729 million average diluted shares outstanding |
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Reported full year 2023 net income was
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Net Interest Income |
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(FTE; $ in millions)(a) |
For the Three Months Ended |
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% Change |
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December |
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September |
|
December |
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2023 |
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2023 |
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2022 |
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Seq |
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Yr/Yr |
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Interest Income |
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Interest income |
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Interest expense |
1,232 |
|
|
1,091 |
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|
498 |
|
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|
Net interest income (NII) |
|
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|
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|
(2)% |
|
(10)% |
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Average Yield/Rate Analysis |
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bps Change |
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|
Yield on interest-earning assets |
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|
8 |
|
91 |
|
|
Rate paid on interest-bearing liabilities |
|
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|
24 |
|
178 |
|
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Ratios |
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Net interest rate spread |
|
|
|
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|
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|
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|
(16) |
|
(87) |
|
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Net interest margin (NIM) |
|
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|
(13) |
|
(50) |
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NII decreased
Compared to the year-ago quarter, NII decreased
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Noninterest Income |
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($ in millions) |
For the Three Months Ended |
|
% Change |
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|
December |
|
September |
December |
|
|
|
|
|
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|
2023 |
|
2023 |
|
2022 |
|
Seq |
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Yr/Yr |
|
|
Noninterest Income |
|
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|
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|
|
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|
Service charges on deposits |
|
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|
|
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|
(2)% |
|
|
|
|
Commercial banking revenue |
163 |
|
154 |
|
158 |
|
|
|
|
|
|
Mortgage banking net revenue |
66 |
|
57 |
|
63 |
|
|
|
|
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|
Wealth and asset management revenue |
147 |
|
145 |
|
139 |
|
|
|
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|
Card and processing revenue |
106 |
|
104 |
|
103 |
|
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|
Leasing business revenue |
46 |
|
58 |
|
58 |
|
(21)% |
|
(21)% |
|
|
Other noninterest income |
54 |
|
55 |
|
72 |
|
(2)% |
|
(25)% |
|
|
Securities gains (losses), net |
15 |
|
(7 |
) |
2 |
|
NM |
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Securities gains, net - non-qualifying hedges |
|
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on mortgage servicing rights |
1 |
|
— |
|
— |
|
NM |
|
NM |
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Total noninterest income |
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Reported noninterest income increased
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Noninterest Income excluding certain items |
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($ in millions) |
For the Three Months Ended |
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|
December |
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September |
|
|
December |
|
|
% Change |
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|
2023 |
|
2023 |
|
|
2022 |
|
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Seq |
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Yr/Yr |
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|
Noninterest Income excluding certain items |
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Noninterest income ( |
|
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|
Valuation of Visa total return swap |
22 |
|
|
10 |
|
|
38 |
|
|
|
|
|
|
|
Branch impairment charges |
— |
|
|
— |
|
|
6 |
|
|
|
|
|
|
|
Securities (gains) losses, net |
(15) |
|
|
7 |
|
|
(2) |
|
|
|
|
|
|
|
Noninterest income excluding certain items(a) |
|
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|
|
|
|
|
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|
(3)% |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income excluding certain items increased
Compared to the prior quarter, service charges on deposits decreased
Compared to the year-ago quarter, service charges on deposits increased
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
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|
|
December |
|
September |
|
December |
|
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|||
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|
2023 |
|
2023 |
|
2022 |
|
Seq |
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Yr/Yr |
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Noninterest Expense |
|
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|
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|
|
|
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|
|
|
Compensation and benefits |
|
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|
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|
|
|
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|
|
|
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|
|
Net occupancy expense |
83 |
|
|
84 |
|
|
82 |
|
|
(1)% |
|
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|
|
Technology and communications |
117 |
|
|
115 |
|
|
111 |
|
|
|
|
|
|
|
Equipment expense |
37 |
|
|
37 |
|
|
37 |
|
|
— |
|
— |
|
|
Card and processing expense |
21 |
|
|
21 |
|
|
21 |
|
|
— |
|
— |
|
|
Leasing business expense |
27 |
|
|
29 |
|
|
36 |
|
|
(7)% |
|
(25)% |
|
|
Marketing expense |
30 |
|
|
35 |
|
|
31 |
|
|
(14)% |
|
(3)% |
|
|
Other noninterest expense |
481 |
|
|
238 |
|
|
245 |
|
|
|
|
|
|
|
Total noninterest expense |
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|
|
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|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
Reported noninterest expense increased
|
Noninterest Expense excluding certain item(s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
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|
||||||||
|
|
December |
|
September |
|
|
December |
|
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|
2023 |
|
2023 |
|
|
2022 |
|
|
Seq |
|
Yr/Yr |
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|
|
Noninterest Expense excluding certain item(s) |
|
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|
Noninterest expense ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC special assessment |
(224) |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
Fifth Third Foundation contribution |
(15) |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
Restructuring severance expense |
(5) |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
Noninterest expense excluding certain item(s)(a) |
|
|
|
|
|
|
|
|
|
|
|
(1)% |
|
|
Compared to the prior quarter, noninterest expense excluding certain items increased
Compared to the year-ago quarter, noninterest expense excluding certain items decreased
|
Average Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
December |
|
September |
|
December |
|
|
|
|
|
|||
|
|
2023 |
|
2023 |
|
2022 |
|
Seq |
|
Yr/Yr |
|
|||
|
Average Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans |
|
|
|
|
|
|
|
|
|
(4)% |
|
(5)% |
|
|
Commercial mortgage loans |
11,338 |
|
|
11,216 |
|
|
10,898 |
|
|
|
|
|
|
|
Commercial construction loans |
5,727 |
|
|
5,539 |
|
|
5,544 |
|
|
|
|
|
|
|
Commercial leases |
2,535 |
|
|
2,616 |
|
|
2,736 |
|
|
(3)% |
|
(7)% |
|
|
Total commercial loans and leases |
|
|
|
|
|
|
|
|
|
(3)% |
|
(3)% |
|
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans |
|
|
|
|
|
|
|
|
|
(2)% |
|
(3)% |
|
|
Home equity |
3,905 |
|
|
3,897 |
|
|
4,024 |
|
|
— |
|
(3)% |
|
|
Indirect secured consumer loans |
15,129 |
|
|
15,787 |
|
|
16,536 |
|
|
(4)% |
|
(9)% |
|
|
Credit card |
1,829 |
|
|
1,808 |
|
|
1,795 |
|
|
|
|
|
|
|
Other consumer loans |
6,633 |
|
|
6,366 |
|
|
4,615 |
|
|
|
|
|
|
|
Total consumer loans |
|
|
|
|
|
|
|
|
|
(1)% |
|
— |
|
|
Total average portfolio loans and leases |
|
|
|
|
|
|
|
|
|
(2)% |
|
(2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Loans and Leases Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases held for sale |
|
|
|
|
|
|
|
|
|
|
|
(14)% |
|
|
Consumer loans held for sale |
379 |
|
|
619 |
|
|
1,411 |
|
|
(39)% |
|
(73)% |
|
|
Total average loans and leases held for sale |
|
|
|
|
|
|
|
|
|
(29)% |
|
(70)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average loans and leases |
|
|
|
|
|
|
|
|
|
(2)% |
|
(3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (taxable and tax-exempt) |
|
|
|
|
|
|
|
|
|
|
|
(2)% |
|
|
Other short-term investments |
21,506 |
|
|
12,956 |
|
|
6,285 |
|
|
|
|
|
|
|
Total average interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compared to the prior quarter, total average portfolio loans and leases decreased
Compared to the year-ago quarter, total average portfolio loans and leases decreased
Average loans and leases held for sale were
Average securities (taxable and tax-exempt; amortized cost) of
Total period-end commercial portfolio loans and leases of
Total period-end consumer portfolio loans of
Total period-end securities (taxable and tax-exempt; amortized cost) of
On January 3, 2024, Fifth Third transferred
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
December |
|
September |
|
December |
|
|
|
|
|
|||
|
|
2023 |
|
2023 |
|
2022 |
|
Seq |
|
Yr/Yr |
|
|||
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
|
|
|
|
|
|
|
|
(2)% |
|
(20)% |
|
|
Interest checking |
57,114 |
|
|
53,109 |
|
|
47,801 |
|
|
|
|
|
|
|
Savings |
18,252 |
|
|
20,511 |
|
|
23,474 |
|
|
(11)% |
|
(22)% |
|
|
Money market |
34,292 |
|
|
32,072 |
|
|
28,713 |
|
|
|
|
|
|
|
Foreign office(g) |
178 |
|
|
168 |
|
|
209 |
|
|
|
|
(15)% |
|
|
Total transaction deposits |
|
|
|
|
|
|
|
|
|
|
|
(1)% |
|
|
CDs |
10,556 |
|
|
9,630 |
|
|
2,748 |
|
|
|
|
|
|
|
Total core deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDs over |
5,659 |
|
|
5,926 |
|
|
3,566 |
|
|
(5)% |
|
|
|
|
Total average deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDs over |
|
||||||||||||
|
|
Compared to the prior quarter, total average deposits increased
Compared to the year-ago quarter, total average deposits increased
The period-end portfolio loan-to-core deposit ratio was
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
December |
|
September |
|
December |
|
|
|
|
|
|||
|
|
2023 |
|
2023 |
|
2022 |
|
Seq |
|
Yr/Yr |
|
|||
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDs over |
|
|
|
|
|
|
|
|
|
(5)% |
|
|
|
|
Federal funds purchased |
191 |
|
|
181 |
|
|
264 |
|
|
|
|
(28)% |
|
|
Securities sold under repurchase agreements |
350 |
|
|
352 |
|
|
476 |
|
|
(1)% |
|
(26)% |
|
|
FHLB advances |
3,293 |
|
|
3,726 |
|
|
5,489 |
|
|
(12)% |
|
(40)% |
|
|
Derivative collateral and other secured borrowings |
34 |
|
|
48 |
|
|
225 |
|
|
(29)% |
|
(85)% |
|
|
Long-term debt |
16,588 |
|
|
14,056 |
|
|
13,425 |
|
|
|
|
|
|
|
Total average wholesale funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
CDs over |
|
Compared to the prior quarter, average wholesale funding increased
Credit Quality Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
As of and For the Three Months Ended |
|||||||||||||
|
December |
|
September |
|
June |
|
March |
|
December |
|||||
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual portfolio loans and leases (NPLs) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repossessed property |
10 |
|
|
11 |
|
|
8 |
|
|
8 |
|
|
6 |
|
OREO |
29 |
|
|
31 |
|
|
24 |
|
|
22 |
|
|
18 |
|
Total nonperforming portfolio loans and leases and OREO (NPAs) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPL ratio(h) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPA ratio(c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio loans and leases 30-89 days past due (accrual) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio loans and leases 90 days past due (accrual) |
36 |
|
|
29 |
|
|
51 |
|
|
46 |
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-89 days past due as a % of portfolio loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90 days past due as a % of portfolio loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses (ALLL), beginning |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of adoption of ASU 2022-02 |
— |
|
|
— |
|
|
— |
|
|
(49) |
|
|
— |
|
Total net losses charged-off |
(96) |
|
|
(124) |
|
|
(90) |
|
|
(78) |
|
|
(68) |
|
Provision for loan and lease losses |
78 |
|
|
137 |
|
|
202 |
|
|
148 |
|
|
163 |
|
ALLL, ending |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded commitments, beginning |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from) provision for the reserve for unfunded commitments |
(23) |
|
|
(18) |
|
|
(25) |
|
|
16 |
|
|
17 |
|
Reserve for unfunded commitments, ending |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses (ACL) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of portfolio loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of nonperforming portfolio loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of nonperforming portfolio assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLL as a % of portfolio loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses charged-off |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total recoveries of losses previously charged-off |
37 |
|
|
34 |
|
|
31 |
|
|
32 |
|
|
35 |
|
Total net losses charged-off |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-off ratio (NCO ratio)(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial NCO ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer NCO ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming portfolio loans and leases were
Nonperforming portfolio assets were
The provision for credit losses totaled
Net charge-offs were
Compared to the year-ago quarter, net charge-offs increased
|
Capital Position |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and For the Three Months Ended |
|||||||||||
|
|
|
December |
|
September |
|
June |
|
March |
December |
||||
|
|
|
2023 |
|
2023 |
|
2023 |
|
2023 |
2022 |
||||
|
Capital Position |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total Bancorp shareholders' equity as a % of average assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity (excluding AOCI)(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity (including AOCI)(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital Ratios(d)(e) |
|
|
|
||||||||||
|
CET1 capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 risk-based capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The CET1 capital ratio was
Tax Rate
The effective tax rate for the quarter was
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
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 |
|
(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. |
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
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) effects of the global COVID-19 pandemic; (9) cyber-security risks; (10) Fifth Third’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (11) failures by third-party service providers; (12) inability to manage strategic initiatives and/or organizational changes; (13) inability to implement technology system enhancements; (14) failure of internal controls and other risk management systems; (15) losses related to fraud, theft, misappropriation or violence; (16) inability to attract and retain skilled personnel; (17) adverse impacts of government regulation; (18) governmental or regulatory changes or other actions; (19) failures to meet applicable capital requirements; (20) regulatory objections to Fifth Third’s capital plan; (21) regulation of Fifth Third’s derivatives activities; (22) deposit insurance premiums; (23) assessments for the orderly liquidation fund; (24) replacement of LIBOR; (25) weakness in the national or local economies; (26) global political and economic uncertainty or negative actions; (27) changes in interest rates and the effects of inflation; (28) changes and trends in capital markets; (29) fluctuation of Fifth Third’s stock price; (30) volatility in mortgage banking revenue; (31) litigation, investigations, and enforcement proceedings by governmental authorities; (32) breaches of contractual covenants, representations and warranties; (33) competition and changes in the financial services industry; (34) changing retail distribution strategies, customer preferences and behavior; (35) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (36) potential dilution from future acquisitions; (37) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (38) results of investments or acquired entities; (39) changes in accounting standards or interpretation or declines in the value of Fifth Third’s goodwill or other intangible assets; (40) inaccuracies or other failures from the use of models; (41) effects of critical accounting policies and judgments or the use of inaccurate estimates; (42) weather-related events, other natural disasters, or health emergencies (including pandemics); (43) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity; (44) changes in law or requirements imposed by Fifth Third’s regulators impacting our capital actions, including dividend payments and stock repurchases; and (45) 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/20240119449055/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 Bancorp's net income for the fourth quarter of 2023?
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What was Fifth Third Bancorp's CET1 capital at the end of the fourth quarter of 2023?
Did Fifth Third Bancorp maintain full Category 1 LCR compliance during the fourth quarter of 2023?