Summary
Fifth Third Bancorp (FITB) reported its third quarter 2023 financial results, showing a slight year-over-year decrease in net income available to common shareholders to $623 million, or $0.91 per diluted share, compared to $631 million, or $0.91 per diluted share, in the prior year's quarter. For the nine months ended September 30, 2023, net income available to common shareholders increased to $1.7 billion, or $2.50 per diluted share, up from $1.6 billion, or $2.34 per diluted share, in the same period of the prior year. The bank experienced a decrease in net interest income on an FTE basis by 4% to $1.4 billion for the quarter, primarily driven by higher funding costs and a migration of deposits into higher-yielding products. This was partially offset by increased yields on loans and leases and other short-term investments. Noninterest income saw a 6% increase to $715 million, primarily due to lower net securities losses and higher commercial banking revenue, partially offset by a decrease in mortgage banking net revenue. Total noninterest expense rose 2% to $1.19 billion for the quarter, driven by increases in compensation and benefits, technology and communications, and net occupancy expenses. The Bancorp's CET1 capital ratio remained strong at 9.80%, exceeding regulatory requirements. Management highlighted increased focus on deposit growth and prudent liquidity management amidst a volatile economic environment.
Financial Highlights
41 data points| Revenue | $149.00M |
| Interest Expense | $1.09B |
| Net Income | $660.00M |
| EPS (Basic) | $0.91 |
| EPS (Diluted) | $0.91 |
| Shares Outstanding (Basic) | 684.22M |
| Shares Outstanding (Diluted) | 687.06M |
Key Highlights
- 1Net income available to common shareholders for Q3 2023 was $623 million, or $0.91 per diluted share, a slight decrease from $631 million in Q3 2022.
- 2Net interest income on an FTE basis decreased 4% year-over-year to $1.4 billion due to higher funding costs and deposit migration.
- 3Noninterest income increased 6% year-over-year to $715 million, driven by lower securities losses and improved commercial banking revenue.
- 4Noninterest expense increased 2% year-over-year to $1.19 billion, primarily due to higher compensation, technology, and occupancy costs.
- 5The Common Equity Tier 1 (CET1) capital ratio stood at a strong 9.80% as of September 30, 2023.
- 6Total loans and leases decreased by 1% from year-end 2022 to $120.7 billion, with a 2% decrease in commercial loans and leases and a 1% decrease in consumer loans.
- 7Deposits increased by 2% from year-end 2022 to $167.7 billion, with core deposits showing a 1% increase, driven by CDs $250,000 or less, despite a decrease in transaction deposits.