Fifth Third Bancorp (FITB) Q3 2024 earnings summary

Executive summary

• Q3 2024 reported EPS was $0.78 ($0.85 adjusted), with net income to common shareholders of $532 million, down 15% year-over-year, but exceeding prior guidance.

• CET1 capital ratio increased to 10.75%, supported by $200 million in share repurchases and a 6% dividend increase.

• Strategic investments and Southeast expansion drove organic growth, including 16% deposit growth in that region and 3% consumer household growth.

• Maintained top quartile performance in ROA, ROTCE, and efficiency ratio compared to peers.

• Strong fee income growth and disciplined expense management contributed to resilient returns and capital strength.

Financial highlights

• Net interest income (FTE) was $1.427 billion, up 2% sequentially but down 1% year-over-year; net interest margin (FTE) was 2.90%.

• Adjusted efficiency ratio improved to 56.1% in Q3; reported efficiency ratio (FTE) was 58.2%.

• Adjusted revenue grew 3% sequentially; pre-provision net revenue up 5% sequentially.

• Book value per share increased to $27.60, up 10% sequentially and 30% year-over-year.

• Net charge-off ratio was 0.48%, down 1 bp sequentially but up 7 bps year-over-year.

Outlook and guidance

• Q4 NII expected to rise 1% sequentially, with stable to up 1% average loan balances and 3%-4% higher adjusted noninterest income.

• Noninterest expense expected to remain stable; net charge-off ratio projected at 45-49 bps.

• Management expects to remain well-positioned for a declining rate environment and ongoing economic and regulatory uncertainty.

• Share repurchases to increase to $300 million in Q4, with potential for further increases.

• Positioned for record NII in 2025, assuming no major economic or rate changes.