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CORRECTING and REPLACING Fifth Third Bancorp Reports First Quarter 2025 Diluted Earnings Per Share of $0.71
The updated release reads:
FIFTH THIRD BANCORP REPORTS FIRST QUARTER 2025 DILUTED EARNINGS PER SHARE OF $0.71
Loan growth, net interest margin expansion, and expense discipline leads to positive operating leverage
Reported results included a negative $0.02 impact from certain items on page 2
Fifth Third Bancorp (NASDAQ: FITB):
| Key Financial Data | Key Highlights | ||||||
| $ in millions for all balance sheet and income statement items |
|
|
| Stability:
Profitability:
Growth:
| |||
|
| 1Q25 |
| 4Q24 |
| 1Q24 |
| |
| Income Statement Data | |||||||
| Net income available to common shareholders | $478 |
| $582 |
| $480 |
| |
| Net interest income (U.S. GAAP) | 1,437 |
| 1,437 |
| 1,384 |
| |
| Net interest income (FTE)(a) | 1,442 |
| 1,443 |
| 1,390 |
| |
| Noninterest income | 694 |
| 732 |
| 710 |
| |
| Noninterest expense | 1,304 |
| 1,226 |
| 1,342 |
| |
| Per Share Data | |||||||
| Earnings per share, basic | $0.71 |
| $0.86 |
| $0.70 |
| |
| Earnings per share, diluted | 0.71 |
| 0.85 |
| 0.70 |
| |
| Book value per share | 27.41 |
| 26.17 |
| 24.72 |
| |
| Tangible book value per share(a) | 19.92 |
| 18.69 |
| 17.35 |
| |
| Balance Sheet & Credit Quality | |||||||
| Average portfolio loans and leases | $121,272 |
| $117,860 |
| $117,334 |
| |
| Average deposits | 164,157 |
| 167,237 |
| 168,122 |
| |
| Accumulated other comprehensive loss | (3,895 | (4,636 | (4,888 | ||||
| Net charge-off ratio(b) | 0.46 | 0.46 | 0.38 | ||||
| Nonperforming asset ratio(c) | 0.81 |
| 0.71 |
| 0.64 |
| |
| Financial Ratios | |||||||
| Return on average assets | 0.99 | 1.17 | 0.98 | ||||
| Return on average common equity | 10.8 |
| 13.0 |
| 11.6 |
| |
| Return on average tangible common equity(a) | 15.2 |
| 18.4 |
| 17.0 |
| |
| CET1 capital(d)(e) | 10.45 |
| 10.57 |
| 10.47 |
| |
| Net interest margin(a) | 3.03 |
| 2.97 |
| 2.86 |
| |
| Efficiency(a) | 61.0 |
| 56.4 |
| 63.9 |
| |
| Other than the Quarterly Financial Review tables beginning on page 13, 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. | |||||||
| From Tim Spence, Fifth Third Chairman, CEO and President: |
Fifth Third delivered another quarter of strong financial results reflecting our resilient balance sheet, diversified business mix, and disciplined expense management. We again generated positive operating leverage, delivered loan growth, and expanded net interest margin.
This environment of increased economic uncertainty has reinforced the importance of building a bank that produces strong through-the-cycle returns across a range of potential outcomes. Our balance sheet remains well-diversified and neutrally positioned. We remain proactive in managing our credit risk and stress testing our portfolio under many scenarios.
Our strategic investments continue to drive growth in consumer households and commercial relationships as well as year- over-year growth in commercial payments and wealth & asset management revenue. Our strong returns on capital enabled $225 million of share repurchases during the quarter and a 5% increase in tangible book value per share, excluding AOCI, over the past year.
As we navigate this environment, we will continue to follow our operating principles of stability, profitability, and growth - in that order.
| Income Statement Highlights | |||||
| ($ in millions, except per share data) | For the Three Months Ended | % Change | |||
|
| March | December | March |
| |
| 2025 | 2024 | 2024 | Seq | Yr/Yr | |
| Condensed Statements of Income |
|
|
|
|
|
| Net interest income (NII)(a) | $1,442 | $1,443 | $1,390 | — | 4% |
| Provision for credit losses | 174 | 179 | 94 | (3)% | 85% |
| Noninterest income | 694 | 732 | 710 | (5)% | (2)% |
| Noninterest expense | 1,304 | 1,226 | 1,342 | 6% | (3)% |
| Income before income taxes(a) | $658 | $770 | $664 | (15)% | (1)% |
| Taxable equivalent adjustment | $5 | $6 | $6 | (17)% | (17)% |
| Applicable income tax expense | 138 | 144 | 138 | (4)% | — |
| Net income | $515 | $620 | $520 | (17)% | (1)% |
| Dividends on preferred stock | 37 | 38 | 40 | (3)% | (8)% |
| Net income available to common shareholders | $478 | $582 | $480 | (18)% | — |
| Earnings per share, diluted | $0.71 | $0.85 | $0.70 | (16)% | 1% |
Fifth Third Bancorp (NASDAQ®: FITB) today reported first quarter 2025 net income available to common shareholders of $478 million, or $0.71 per diluted share, compared to $582 million, or $0.85 per diluted share, in the prior quarter and $480 million, or $0.70 per diluted share, in the year-ago quarter.
| Diluted earnings per share impact of certain item(s) - 1Q25 | ||
| (after-tax impact; $ in millions, except per share data) Valuation of Visa total return swap (noninterest income)(f) | $(14) | |
| After-tax impact(f) of certain item(s) | $(14) | |
| Diluted earnings per share impact of certain item(s)1 | $(0.02) | |
|
| ||
| Totals may not foot due to rounding;1 Diluted earnings per share impact reflects 676.040 million average diluted shares outstanding | ||
|
| ||
| Net Interest Income | |||||
| (FTE; $ in millions)(a) | For the Three Months Ended | % Change | |||
|
| March 2025 | December 2024 | March 2024 |
Seq |
Yr/Yr |
| Interest Income |
|
|
|
|
|
| Interest income | $2,437 | $2,534 | $2,614 | (4)% | (7)% |
| Interest expense | 995 | 1,091 | 1,224 | (9)% | (19)% |
| Net interest income (NII) | $1,442 | $1,443 | $1,390 | — | 4% |
|
Average Yield/Rate Analysis | bps Change | ||||
| Yield on interest-earning assets | 5.13% | 5.21% | 5.38% | (8) | (25) |
| Rate paid on interest-bearing liabilities | 2.80% | 3.00% | 3.36% | (20) | (56) |
| Ratios |
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|
|
|
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| Net interest rate spread | 2.33% | 2.21% | 2.02% | 12 | 31 |
| Net interest margin (NIM) | 3.03% | 2.97% | 2.86% | 6 | 17 |
Compared to the prior quarter, NII was stable, primarily reflecting higher average commercial loan balances, fixed-rate asset repricing and a combination of seasonal fluctuations and strategic deposit management actions decreasing the cost of interest-bearing deposits, offset by the impact of market rates on floating rate loans and lower day count. These same factors, coupled with the normalization of cash and other short-term investment balances contributed to the 6 bps increase in NIM.
Compared to the year-ago quarter, NII increased $52 million, or 4%, and NIM increased 17 bps. This year-over-year improvement was due to the benefits from proactive deposit and wholesale funding management decreasing interest- bearing liabilities costs by 56 bps and the benefit of fixed-rate asset repricing, which more than offset the impact of lower market rates on floating rate assets.
| Noninterest Income | |||||
| ($ in millions) | For the Three Months Ended | % Change | |||
|
| March | December | March |
| |
| 2025 | 2024 | 2024 | Seq | Yr/Yr | |
| Noninterest Income |
|
|
|
|
|
| Wealth and asset management revenue | $172 | $163 | $161 | 6% | 7% |
| Commercial payments revenue | 153 | 155 | 145 | (1)% | 6% |
| Consumer banking revenue | 137 | 137 | 135 | — | 1% |
| Capital markets fees | 90 | 123 | 97 | (27)% | (7)% |
| Commercial banking revenue | 80 | 109 | 85 | (27)% | (6)% |
| Mortgage banking net revenue | 57 | 57 | 54 | — | 6% |
| Other noninterest income (loss) | 14 | (4) | 23 | NM | (39)% |
| Securities (losses) gains, net | (9) | (8) | 10 | 13% | NM |
| Total noninterest income | $694 | $732 | $710 | (5)% | (2)% |
Reported noninterest income decreased $38 million, or 5%, from the prior quarter, and decreased $16 million, or 2%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including the mark-to- market on the valuation of the Visa total return swap and securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans that are more than offset in noninterest expense.
| Noninterest Income excluding certain items | |||||
| ($ in millions) | For the Three Months Ended |
| |||
|
| March | December | March | % Change | |
|
| 2025 | 2024 | 2024 | Seq | Yr/Yr |
| Noninterest Income excluding certain items Noninterest income (U.S. GAAP) |
$694 |
$732 |
$710 |
|
|
| Valuation of Visa total return swap | 18 | 51 | 17 |
|
|
| Securities (gains) losses, net | 9 | 8 | (10) |
|
|
| Noninterest income excluding certain items(a) | $721 | $791 | $717 | (9)% | 1% |
Noninterest income excluding certain items decreased $70 million, or 9%, compared to the prior quarter, but increased $4 million, or 1%, from the year-ago quarter.
Compared to the prior quarter, wealth and asset management revenue increased $9 million, or 6%, primarily due to seasonal tax-related revenue and increased customer transaction activity. Commercial payments revenue decreased $2 million, or 1%, primarily driven by seasonality. Capital markets fees decreased $33 million, or 27%, reflecting decreases in syndication and M&A advisory fees due to seasonality and market uncertainty. Commercial banking revenue decreased $29 million, or 27%, primarily reflecting decreases in lease syndication and remarketing.
Compared to the year-ago quarter, wealth and asset management revenue increased $11 million, or 7%, primarily reflecting an increase in personal asset management revenue due to AUM growth. Commercial payments revenue increased $8 million, or 6%, primarily driven by deposit fees. Consumer banking revenue increased $2 million, or 1%, primarily driven by deposit fees. Capital markets fees decreased $7 million, or 7%, reflecting a decrease in syndication fees and M&A advisory fees, partially offset by an increase in client financial risk management revenue. Commercial banking revenue decreased $5 million, or 6%, primarily reflecting the continued decrease in operating lease revenue, partially offset by an increase in lease syndication and remarketing. Mortgage banking net revenue increased $3 million, or 6%, due to the prior year loss on MSR net valuation adjustments not recurring in the current quarter.
| Noninterest Income | |||||
| ($ in millions) | For the Three Months Ended | % Change | |||
|
| March | December | March |
| |
| 2025 | 2024 | 2024 | Seq | Yr/Yr | |
| Noninterest Expense |
|
|
|
|
|
| Compensation and benefits | $750 | $665 | $753 | 13% | — |
| Technology and communications | 123 | 123 | 117 | — | 5% |
| Net occupancy expense | 87 | 88 | 87 | (1)% | — |
| Equipment expense | 42 | 39 | 37 | 8% | 14% |
| Loan and lease expense | 30 | 36 | 29 | (17)% | 3% |
| Marketing expense | 28 | 23 | 32 | 22% | (13)% |
| Card and processing expense | 21 | 21 | 20 | — | 5% |
| Other noninterest expense | 223 | 231 | 267 | (3)% | (16)% |
| Total noninterest expense | $1,304 | $1,226 | $1,342 | 6% | (3)% |
Reported noninterest expense increased $78 million, or 6%, from the prior quarter, and decreased $38 million, or 3%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
| Noninterest Expense excluding certain item(s) | |||||
| ($ in millions) | For the Three Months Ended | % Change | |||
| March | December | March |
| ||
| 2025 | 2024 | 2024 | Seq | Yr/Yr | |
| Noninterest Expense excluding certain item(s) Noninterest expense (U.S. GAAP) |
$1,304 |
$1,226 |
$1,342 |
|
|
| Fifth Third Foundation contribution | — | (15) | — |
|
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| Interchange litigation matters | — | (4) | (5) |
|
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| FDIC special assessment | — | 11 | (33) |
|
|
| Noninterest expense excluding certain item(s)(a) | $1,304 | $1,218 | $1,304 | 7% | — |
Compared to the prior quarter, noninterest expense excluding certain items increased $86 million, or 7%, primarily reflecting a seasonal increase in compensation and benefits expense. Noninterest expense in the current quarter included a $4 million benefit related to the mark-to-market impact of non-qualified deferred compensation compared to a $7 million benefit in the prior quarter, both of which were largely offset in net securities losses through noninterest income.
Compared to the year-ago quarter, noninterest expense excluding certain items was stable. The year-ago quarter included an $11 million expense related to the mark-to-market impact of non-qualified deferred compensation, which was largely offset in net securities gains through noninterest income.
| Average Interest-Earning Assets | |||||
| ($ in millions) | For the Three Months Ended | % Change | |||
|
| March | December | March |
| |
| 2025 | 2024 | 2024 | Seq | Yr/Yr | |
| Average Portfolio Loans and Leases |
|
|
|
|
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| Commercial loans and leases: |
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|
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|
|
| Commercial and industrial loans | $53,401 | $51,567 | $53,183 | 4% | — |
| Commercial mortgage loans | 12,368 | 11,792 | 11,339 | 5% | 9% |
| Commercial construction loans | 5,797 | 5,702 | 5,732 | 2% | 1% |
| Commercial leases | 3,110 | 2,902 | 2,542 | 7% | 22% |
| Total commercial loans and leases | $74,676 | $71,963 | $72,796 | 4% | 3% |
| Consumer loans: |
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|
|
|
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| Residential mortgage loans | $17,552 | $17,322 | $16,977 | 1% | 3% |
| Home equity | 4,222 | 4,125 | 3,933 | 2% | 7% |
| Indirect secured consumer loans | 16,476 | 16,100 | 15,172 | 2% | 9% |
| Credit card | 1,627 | 1,668 | 1,773 | (2)% | (8)% |
| Solar energy installation loans | 4,221 | 4,137 | 3,794 | 2% | 11% |
| Other consumer loans | 2,498 | 2,545 | 2,889 | (2)% | (14)% |
| Total consumer loans | $46,596 | $45,897 | $44,538 | 2% | 5% |
| Total average portfolio loans and leases | $121,272 | $117,860 | $117,334 | 3% | 3% |
| Average Loans and Leases Held for Sale |
| $48 | $74 | 33% | (14)% |
| Commercial loans and leases held for sale | $64 | ||||
| Consumer loans held for sale | 428 | 584 | 291 | (27)% | 47% |
| Total average loans and leases held for sale | $492 | $632 | $365 | (22)% | 35% |
| Total average loans and leases | $121,764 | $118,492 | $117,699 | 3% | 3% |
| Securities (taxable and tax-exempt) | $56,598 | $56,702 | $56,456 | — | — |
| Other short-term investments | 14,446 | 18,319 | 21,194 | (21)% | (32)% |
| Total average interest-earning assets | $192,808 | $193,513 | $195,349 | — | (1)% |
Compared to the prior quarter, total average portfolio loans and leases increased 3%. Average commercial portfolio loans and leases increased 4%, primarily reflecting increases in C&I loans, commercial mortgage loans, and commercial leases. Average consumer portfolio loans increased 2%, primarily reflecting increases in indirect secured consumer and residential mortgage loans.
Compared to the year-ago quarter, total average portfolio loans and leases increased 3%. Average commercial portfolio loans and leases increased 3%, primarily reflecting increases in commercial mortgage loans and commercial leases. Average consumer portfolio loans increased 5%, primarily reflecting increases in indirect secured consumer loans, residential mortgage loans, and solar energy installation loans.
Average securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter were stable compared to the prior and year-ago quarter. Average other short-term investments (including interest-bearing cash) of $14 billion in the current quarter decreased 21% compared to the prior quarter and decreased 32% compared to the year-ago quarter due to proactive liability management.
Period-end commercial portfolio loans and leases of $75 billion increased 3% compared to the prior quarter, primarily reflecting increases in C&I loans and commercial construction loans. Compared to the year-ago quarter, period-end commercial portfolio loans and leases increased 4%, primarily due to increases in C&I loans, commercial mortgage loans and commercial leases.
Period-end consumer portfolio loans of $47 billion increased 1% compared to the prior quarter, primarily reflecting an increase in indirect secured consumer loans. Compared to the year-ago quarter, period-end consumer portfolio loans increased 6%, primarily driven by increases in indirect secured consumer loans, residential mortgage, and solar energy installation loans, partially offset by a decrease in other consumer loans.
Total period-end securities (taxable and tax-exempt; amortized cost) of $56 billion in the current quarter decreased 1% compared to the prior quarter and were stable compared to the year-ago quarter. Period-end other short-term investments of approximately $15 billion decreased 13% compared to the prior quarter, and decreased 34% compared to the year-ago quarter.
| Average Deposits | |||||
| ($ in millions) | For the Three Months Ended | % Change | |||
|
| March | December | March |
|
|
|
| 2025 | 2024 | 2024 | Seq | Yr/Yr |
| Average Deposits |
|
|
|
|
|
| Demand | $39,788 | $40,137 | $40,839 | (1)% | (3)% |
| Interest checking | 57,964 | 59,441 | 58,822 | (2)% | (1)% |
| Savings | 17,226 | 17,257 | 18,107 | — | (5)% |
| Money market | 36,453 | 37,279 | 34,589 | (2)% | 5% |
| Total transaction deposits | $151,431 | $154,114 | $152,357 | (2)% | (1)% |
| CDs $250,000 or less | 10,380 | 10,592 | 10,244 | (2)% | 1% |
| Total core deposits | $161,811 | $164,706 | $162,601 | (2)% | — |
| CDs over $250,0001 | 2,346 | 2,531 | 5,521 | (7)% | (58)% |
| Total average deposits | $164,157 | $167,237 | $168,122 | (2)% | (2)% |
| 1CDs over $250,000 includes $1.3BN, $1.5BN, and $4.7BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 3/31/25, 12/31/24, and 3/31/24, respectively. | |||||
Compared to the prior quarter, total average deposits were down 2%, primarily reflecting seasonal decreases in interest checking and money market deposits. Average demand deposits represented 25% of total core deposits in the current quarter compared to 24% in the prior quarter and 25% in the year-ago quarter. Period-end total deposits decreased 1%.
Compared to the year-ago quarter, total average deposits decreased 2%, primarily due to decreases in retail brokered deposits and demand deposits, partially offset by an increase in money market deposits. Period-end total deposits decreased 2%.
The period-end portfolio loan-to-core deposit ratio was 75% in the current quarter, compared to 73% in the prior quarter and 71% in the year-ago quarter.
| Average Wholesale Funding | |||||
| ($ in millions) | For the Three Months Ended | % Change | |||
|
| March | December | March |
| |
| 2025 | 2024 | 2024 | Seq | Yr/Yr | |
| Average Wholesale Funding CDs over $250,0001 |
$2,346 |
$2,531 |
$5,521 |
(7)% |
(58)% |
| Federal funds purchased | 194 | 223 | 201 | (13)% | (3)% |
| Securities sold under repurchase agreements | 286 | 313 | 366 | (9)% | (22)% |
| FHLB advances | 4,767 | 1,567 | 3,111 | 204% | 53% |
| Derivative collateral and other secured borrowings | 84 | 76 | 57 | 11% | 47% |
| Long-term debt | 14,585 | 15,492 | 15,515 | (6)% | (6)% |
| Total average wholesale funding | $22,262 | $20,202 | $24,771 | 10% | (10)% |
| 1CDs over $250,000 includes $1.3BN, $1.5BN, and $4.7BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 3/31/25, 12/31/24, and 3/31/24, respectively. | |||||
Compared to the prior quarter, average wholesale funding increased 10%, primarily driven by an increase in short-term FHLB advances, partially offset by a decrease in retail brokered deposits. The 10% decrease in average wholesale funding compared to the year-ago quarter was driven by decreases in retail brokered deposits and long-term debt, partially offset by an increase in short-term FHLB advances.
| Credit Quality Summary | |||||
| ($ in millions) | As of and For the Three Months Ended | ||||
|
| March | December | September | June | March |
|
| 2025 | 2024 | 2024 | 2024 | 2024 |
|
Total nonaccrual portfolio loans and leases (NPLs) |
$966 |
$823 |
$686 |
$606 |
$708 |
| Repossessed property | 9 | 9 | 11 | 9 | 8 |
| OREO | 21 | 21 | 28 | 28 | 27 |
| Total nonperforming portfolio loans and leases and OREO (NPAs) | $996 | $853 | $725 | $643 | $743 |
| NPL ratio(g) | 0.79% | 0.69% | 0.59% | 0.52% | 0.61% |
| NPA ratio(c) | 0.81% | 0.71% | 0.62% | 0.55% | 0.64% |
| Portfolio loans and leases 30-89 days past due (accrual) | $385 | $303 | $283 | $302 | $342 |
| Portfolio loans and leases 90 days past due (accrual) | 33 | 32 | 40 | 33 | 35 |
| 30-89 days past due as a % of portfolio loans and leases | 0.31% | 0.25% | 0.24% | 0.26% | 0.29% |
| 90 days past due as a % of portfolio loans and leases | 0.03% | 0.03% | 0.03% | 0.03% | 0.03% |
| Allowance for loan and lease losses (ALLL), beginning | $2,352 | $2,305 | $2,288 | $2,318 | $2,322 |
| Total net losses charged-off | (136) | (136) | (142) | (144) | (110) |
| Provision for loan and lease losses | 168 | 183 | 159 | 114 | 106 |
| ALLL, ending | $2,384 | $2,352 | $2,305 | $2,288 | $2,318 |
| Reserve for unfunded commitments, beginning | $134 | $138 | $137 | $154 Für dich aus unserer Redaktion zusammengestelltDein Kommentar zum Artikel im Forum Jetzt anmelden und diskutieren
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