Summary
Fifth Third Bancorp (FITB) reported its third quarter 2024 financial results, showing a decrease in net income available to common shareholders to $532 million, or $0.78 per diluted share, compared to $623 million, or $0.91 per diluted share, in the prior year's third quarter. This decline was primarily driven by higher funding costs due to increased market interest rates and deposit migration into higher-yielding products, which negatively impacted net interest income. Total revenue (FTE basis) also saw a slight decrease of 1% year-over-year. Despite the earnings decline, the bank maintained strong capital ratios, with a CET1 capital ratio of 10.75%, exceeding regulatory requirements. The Bancorp continued its share repurchase program, settling accelerated share repurchase transactions totaling $325 million in the first nine months of the year, and also issued $1.75 billion in senior notes during the period. The company is actively managing its balance sheet, including a significant transfer of $12.6 billion in securities from available-for-sale to held-to-maturity to reduce capital volatility.
Financial Highlights
40 data points| Revenue | $161.00M |
| Net Income | $573.00M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.78 |
| Shares Outstanding (Basic) | 680.90M |
| Shares Outstanding (Diluted) | 686.11M |
Key Highlights
- 1Net income available to common shareholders decreased by 15% year-over-year to $532 million for the third quarter of 2024, translating to $0.78 per diluted share.
- 2Net interest income on an FTE basis decreased by 1% year-over-year to $1.43 billion for the third quarter, impacted by higher funding costs and deposit migration.
- 3Total revenue (FTE basis) declined 1% year-over-year to $2.14 billion for the third quarter.
- 4Provision for credit losses increased by 34% year-over-year to $160 million for the third quarter, reflecting factors like specific reserves on commercial loans and a slight economic forecast deterioration.
- 5The CET1 capital ratio remained strong at 10.75% as of September 30, 2024, exceeding regulatory minimums.
- 6Noninterest income saw a slight decrease of 1% year-over-year to $711 million for the third quarter, primarily due to lower mortgage banking and leasing revenues, partially offset by growth in wealth and asset management.
- 7Noninterest expense increased by 5% year-over-year to $1.24 billion for the third quarter, driven by higher compensation and benefits, and technology and communications expenses.