10-QPeriod: Q2 FY2025

FIFTH THIRD BANCORP Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 5, 2025For Securities:FITBFITBOFITBPFITB-PIFITB-PMFITB-PAFITBIFITB-PK

Summary

Fifth Third Bancorp (FITB) reported solid financial performance for the quarter and six months ended June 30, 2025. Net income available to common shareholders increased by 5% and 3% respectively, reaching $591 million and $1.07 billion. Diluted earnings per share also saw an increase, from $0.81 to $0.88 for the quarter and $1.51 to $1.58 for the six-month period. The bank benefited from higher net interest income, driven by increased loan balances and improved consumer loan yields, which led to a net interest margin expansion of 24 basis points and 11 basis points on an FTE basis for the respective periods. Noninterest income also grew, primarily due to increases in wealth and asset management, consumer banking, and mortgage banking revenues. Despite these positive trends, the provision for credit losses increased significantly, up 78% for the quarter and 82% for the six months, reflecting a deterioration in economic forecasts and higher period-end loan balances. The Bancorp's capital position remains robust, with a CET1 capital ratio of 10.58% as of June 30, 2025, well above regulatory requirements. The bank also continued its capital return program, with a significant share repurchase authorization and dividend payments.

Financial Highlights

37 data points
Beta

Net Income

$628.00M

EPS (Diluted)

$0.88

Total Assets

$209.99B

Cash & Equivalents

$2.97B

Free Cash Flow

$1.16B

Financial Statements
Beta
Net Income$628.00M
EPS (Basic)$0.88
EPS (Diluted)$0.88
Shares Outstanding (Basic)670.79M
Shares Outstanding (Diluted)674.03M

Key Highlights

  • 1Net income available to common shareholders rose 5% to $591 million for Q2 2025 and 3% to $1.07 billion for the first six months.
  • 2Diluted EPS increased to $0.88 for Q2 2025 from $0.81 in Q2 2024, and to $1.58 for the six-month period from $1.51 in the prior year.
  • 3Net interest income on an FTE basis increased by 8% for the quarter to $1.5 billion and 6% for the six-month period to $2.9 billion, driven by loan growth and improved yields.
  • 4Net interest margin (FTE) expanded to 3.12% for Q2 2025 and 3.08% for the six-month period, up from 2.88% and 2.87% respectively.
  • 5Provision for credit losses significantly increased by 78% for the quarter to $173 million and 82% for the six-month period to $347 million, due to deteriorating economic forecasts.
  • 6Total noninterest income increased by 8% for the quarter to $750 million, supported by growth in wealth management, consumer banking, and mortgage banking revenues.
  • 7The CET1 capital ratio remained strong at 10.58% as of June 30, 2025.

Frequently Asked Questions

Net interest income increased due to higher average balances of loans and leases, and increases in yields on average consumer loans and leases. These positive impacts were partially offset by decreases in the average balances of and yields on other short-term investments, and lower yields on average commercial loans and leases. Additionally, lower rates paid on average interest-bearing liabilities contributed positively.

The provision for credit losses increased due to factors that caused increases in the Allowance for Credit Losses (ACL), including a deterioration in the economic forecasts used to calculate the ACL and higher period-end loan and lease balances. The increase was also driven by higher specific reserves on individually evaluated commercial and industrial loans.

Fifth Third Bancorp maintained strong capital ratios. As of June 30, 2025, the CET1 capital ratio was 10.58%, the Tier 1 risk-based capital ratio was 11.85%, the Total risk-based capital ratio was 13.77%, and the Leverage ratio was 9.42%. These ratios were all well above the minimum regulatory requirements.

Management expects net interest margin to remain stable or modestly increase over the next several quarters, driven by loan growth, fixed-rate asset repricing, and continued liability cost management, assuming the FOMC continues its easing cycle. However, increased deposit competition or higher levels of cash and other short-term investments could negatively impact the net interest margin.

Noninterest income growth was primarily driven by increases in wealth and asset management revenue, consumer banking revenue, mortgage banking net revenue, and other noninterest income. These increases were partially offset by decreases in capital markets fees and commercial banking revenue.