10-QPeriod: Q1 FY2025

FIFTH THIRD BANCORP Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 6, 2025For Securities:FITBFITBOFITBPFITB-PIFITB-PMFITB-PAFITBIFITB-PK

Summary

Fifth Third Bancorp (FITB) reported solid results for the first quarter of 2025, with net income available to common shareholders of $478 million, or $0.71 per diluted share, a slight decrease from $480 million in the prior year period. Net interest income on a fully taxable equivalent (FTE) basis increased by 4% to $1.44 billion, driven by lower rates paid on liabilities and higher average loan balances. This led to an improved net interest margin of 3.03% (FTE basis), up from 2.86% in the prior year. The provision for credit losses saw a significant increase to $174 million from $94 million, reflecting higher loan balances and a deterioration in economic forecasts, though net charge-offs remained manageable at 0.46% of average loans. Noninterest income decreased by 2%, primarily due to lower securities gains, but was partially offset by growth in wealth and asset management and commercial payments revenue. Noninterest expense declined by 3%, mainly due to the absence of a prior year FDIC special assessment, even as technology and equipment expenses increased. Capital ratios remained strong, with the CET1 capital ratio at 10.43%.

Financial Highlights

37 data points
Beta

Net Income

$515.00M

EPS (Diluted)

$0.71

Total Assets

$212.67B

Cash & Equivalents

$3.01B

Free Cash Flow

$1.12B

Financial Statements
Beta
Net Income$515.00M
EPS (Basic)$0.71
EPS (Diluted)$0.71
Shares Outstanding (Basic)671.05M
Shares Outstanding (Diluted)676.04M

Key Highlights

  • 1Net income available to common shareholders was $478 million, or $0.71 per diluted share.
  • 2Net interest income on an FTE basis increased 4% year-over-year to $1.44 billion, with the net interest margin improving to 3.03% (FTE).
  • 3Provision for credit losses increased significantly to $174 million, impacting profitability.
  • 4Noninterest income decreased 2% primarily due to lower securities gains, but key revenue streams like wealth and asset management showed growth.
  • 5Noninterest expense decreased 3% year-over-year, aided by the absence of a prior year FDIC special assessment.
  • 6The CET1 capital ratio remained robust at 10.43%.
  • 7Total loans and leases increased 2% from the prior quarter, driven by growth in both commercial and consumer segments.

Frequently Asked Questions

Net interest income on an FTE basis increased by 4% to $1.44 billion for the three months ended March 31, 2025, compared to $1.39 billion for the same period in the prior year. This improvement was driven by lower rates paid on average interest-bearing liabilities and higher average balances of loans and leases.

Fifth Third Bancorp maintained strong capital ratios. As of March 31, 2025, the CET1 capital ratio was 10.43%, the Tier 1 risk-based capital ratio was 11.71%, and the Total risk-based capital ratio was 13.63%.

The provision for credit losses increased to $174 million for the three months ended March 31, 2025, from $94 million in the prior year period. This increase was attributed to higher period-end loan and lease balances and a deterioration in economic forecasts. While nonperforming portfolio assets as a percentage of portfolio loans and OREO increased to 0.81% from 0.71% at year-end 2024, net charge-offs were 0.46% of average loans, indicating manageable credit quality trends.

Total noninterest income decreased by 2% to $694 million for the three months ended March 31, 2025. This was primarily driven by a $19 million decrease in net securities gains/losses, largely due to valuation impacts on non-qualified deferred compensation plans. However, growth was seen in wealth and asset management revenue (up 7%) and commercial payments revenue (up 6%).