Key Financial Data | Key Highlights | |||||||||||||||||||||||||||||||
$ in millions for all balance sheet and income statement items | ||||||||||||||||||||||||||||||||
2Q23 | 1Q23 | 2Q22 | Stability: •Period-end total deposits increased 1% compared to 1Q23; average total deposits were flat sequentially •Strong credit quality metrics; net charge-off ratio of 0.29%, 30-89 day early stage delinquencies of 0.28%, and NPA ratio of 0.54% •ACL of 2.08%, an increase of 9 bps from 1Q23, reflecting the impact of Dividend Finance and the macroeconomic forecast Profitability: Compared to 2Q22 •Revenue increased 8%, PPNR(a) increased 6% (adjusted PPNR(a) increased 8%), and net income increased 7% •Tangible book value per share ex. AOCI(a) increased 11%; CET1 increased to 9.5% •Adjusted ROTCE ex. AOCI(a) of 15.4% increased 20 basis points •De-emphasizing indirect secured consumer lending, including reducing auto originations ~15% through exit of select non-core states Growth: •Generated consumer household growth of 3% compared to 2Q22 •Acquisition of Rize Money accelerates embedded payments capabilities, including launching "Newline by Fifth Third" | |||||||||||||||||||||||||||||
Income Statement Data | ||||||||||||||||||||||||||||||||
Net income available to common shareholders | $562 | $535 | $526 | |||||||||||||||||||||||||||||
Net interest income (U.S. GAAP) | 1,457 | 1,517 | 1,339 | |||||||||||||||||||||||||||||
Net interest income (FTE)(a) | 1,463 | 1,522 | 1,342 | |||||||||||||||||||||||||||||
Noninterest income | 726 | 696 | 676 | |||||||||||||||||||||||||||||
Noninterest expense | 1,231 | 1,331 | 1,112 | |||||||||||||||||||||||||||||
Per Share Data | ||||||||||||||||||||||||||||||||
Earnings per share, basic | $0.82 | $0.78 | $0.76 | |||||||||||||||||||||||||||||
Earnings per share, diluted | 0.82 | 0.78 | 0.76 | |||||||||||||||||||||||||||||
Book value per share | 23.05 | 23.87 | 24.56 | |||||||||||||||||||||||||||||
Tangible book value per share(a) | 15.61 | 16.41 | 17.10 | |||||||||||||||||||||||||||||
Balance Sheet & Credit Quality | ||||||||||||||||||||||||||||||||
Average portfolio loans and leases | $123,327 | $122,812 | $117,693 | |||||||||||||||||||||||||||||
Average deposits | 160,857 | 160,645 | 162,890 | |||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (5,166) | (4,245) | (2,644) | |||||||||||||||||||||||||||||
Net charge-off ratio(b) | 0.29 | % | 0.26 | % | 0.21 | % | ||||||||||||||||||||||||||
Nonperforming asset ratio(c) | 0.54 | 0.51 | 0.47 | |||||||||||||||||||||||||||||
Financial Ratios | ||||||||||||||||||||||||||||||||
Return on average assets | 1.17 | % | 1.10 | % | 1.09 | % | ||||||||||||||||||||||||||
Return on average common equity | 13.9 | 13.7 | 12.3 | |||||||||||||||||||||||||||||
Return on average tangible common equity(a) | 20.5 | 20.5 | 17.5 | |||||||||||||||||||||||||||||
CET1 capital(d)(e) | 9.53 | 9.28 | 8.95 | |||||||||||||||||||||||||||||
Net interest margin(a) | 3.10 | 3.29 | 2.92 | |||||||||||||||||||||||||||||
Efficiency(a) | 56.2 | 60.0 | 55.1 | |||||||||||||||||||||||||||||
Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis. | ||||||||||||||||||||||||||||||||
From Tim Spence, Fifth Third President and CEO: |
Income Statement Highlights | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except per share data) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Condensed Statements of Income | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income (NII)(a) | $1,463 | $1,522 | $1,342 | (4)% | 9% | |||||||||||||||||||||||||||||||||||||||
Provision for credit losses | 177 | 164 | 179 | 8% | (1)% | |||||||||||||||||||||||||||||||||||||||
Noninterest income | 726 | 696 | 676 | 4% | 7% | |||||||||||||||||||||||||||||||||||||||
Noninterest expense | 1,231 | 1,331 | 1,112 | (8)% | 11% | |||||||||||||||||||||||||||||||||||||||
Income before income taxes(a) | $781 | $723 | $727 | 8% | 7% | |||||||||||||||||||||||||||||||||||||||
Taxable equivalent adjustment | $6 | $5 | $3 | 20% | 100% | |||||||||||||||||||||||||||||||||||||||
Applicable income tax expense | 174 | 160 | 162 | 9% | 7% | |||||||||||||||||||||||||||||||||||||||
Net income | $601 | $558 | $562 | 8% | 7% | |||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | 39 | 23 | 36 | 70% | 8% | |||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders | $562 | $535 | $526 | 5% | 7% | |||||||||||||||||||||||||||||||||||||||
Earnings per share, diluted | $0.82 | $0.78 | $0.76 | 5% | 8% | |||||||||||||||||||||||||||||||||||||||
Diluted earnings per share impact of certain item(s) - 2Q23 | |||||||||||||||||
(after-tax impact(f); $ in millions, except per share data) | |||||||||||||||||
Valuation of Visa total return swap (noninterest income) | $(23) | ||||||||||||||||
Restructuring severance expense | (9) | ||||||||||||||||
After-tax impact(f) of certain items | $(32) | ||||||||||||||||
Diluted earnings per share impact of certain item(s)1 | $(0.05) | ||||||||||||||||
Totals may not foot due to rounding; 1Diluted earnings per share impact reflects 686.386 million average diluted shares outstanding | |||||||||||||||||
Net Interest Income | ||||||||||||||||||||||||||||||||||||||||||||
(FTE; $ in millions)(a) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $2,376 | $2,218 | $1,467 | 7% | 62% | |||||||||||||||||||||||||||||||||||||||
Interest expense | 913 | 696 | 125 | 31% | 630% | |||||||||||||||||||||||||||||||||||||||
Net interest income (NII) | $1,463 | $1,522 | $1,342 | (4)% | 9% | |||||||||||||||||||||||||||||||||||||||
Average Yield/Rate Analysis | bps Change | |||||||||||||||||||||||||||||||||||||||||||
Yield on interest-earning assets | 5.04 | % | 4.80 | % | 3.19 | % | 24 | 185 | ||||||||||||||||||||||||||||||||||||
Rate paid on interest-bearing liabilities | 2.72 | % | 2.18 | % | 0.43 | % | 54 | 229 | ||||||||||||||||||||||||||||||||||||
Ratios | ||||||||||||||||||||||||||||||||||||||||||||
Net interest rate spread | 2.32 | % | 2.62 | % | 2.76 | % | (30) | (44) | ||||||||||||||||||||||||||||||||||||
Net interest margin (NIM) | 3.10 | % | 3.29 | % | 2.92 | % | (19) | 18 | ||||||||||||||||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | |||||||||||||||||||||||||||||||||
June | March | June | |||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | |||||||||||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||||||||||||
Service charges on deposits | $144 | $137 | $154 | 5% | (6)% | ||||||||||||||||||||||||||||||
Commercial banking revenue | 146 | 161 | 137 | (9)% | 7% | ||||||||||||||||||||||||||||||
Mortgage banking net revenue | 59 | 69 | 31 | (14)% | 90% | ||||||||||||||||||||||||||||||
Wealth and asset management revenue | 143 | 146 | 140 | (2)% | 2% | ||||||||||||||||||||||||||||||
Card and processing revenue | 106 | 100 | 105 | 6% | 1% | ||||||||||||||||||||||||||||||
Leasing business revenue | 47 | 57 | 56 | (18)% | (16)% | ||||||||||||||||||||||||||||||
Other noninterest income | 74 | 22 | 85 | 236% | (13)% | ||||||||||||||||||||||||||||||
Securities gains (losses), net | 7 | 4 | (32) | 75% | NM | ||||||||||||||||||||||||||||||
Securities losses, net - non-qualifying hedges | |||||||||||||||||||||||||||||||||||
on mortgage servicing rights | — | — | — | NM | NM | ||||||||||||||||||||||||||||||
Total noninterest income | $726 | $696 | $676 | 4% | 7% | ||||||||||||||||||||||||||||||
Noninterest Income excluding certain items | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
June | March | June | % Change | |||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Noninterest Income excluding certain items | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest income (U.S. GAAP) | $726 | $696 | $676 | |||||||||||||||||||||||||||||||||||||||||
Valuation of Visa total return swap | 30 | 31 | 18 | |||||||||||||||||||||||||||||||||||||||||
Net disposition charges/(gain) | — | — | 6 | |||||||||||||||||||||||||||||||||||||||||
Securities (gains)/losses, net | (7) | (4) | 32 | |||||||||||||||||||||||||||||||||||||||||
Noninterest income excluding certain items(a) | $749 | $723 | $732 | 4% | 2% | |||||||||||||||||||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | $650 | $757 | $584 | (14)% | 11% | |||||||||||||||||||||||||||||||||||||||
Net occupancy expense | 83 | 81 | 75 | 2% | 11% | |||||||||||||||||||||||||||||||||||||||
Technology and communications | 114 | 118 | 98 | (3)% | 16% | |||||||||||||||||||||||||||||||||||||||
Equipment expense | 36 | 37 | 36 | (3)% | — | |||||||||||||||||||||||||||||||||||||||
Card and processing expense | 20 | 22 | 20 | (9)% | — | |||||||||||||||||||||||||||||||||||||||
Leasing business expense | 31 | 34 | 31 | (9)% | — | |||||||||||||||||||||||||||||||||||||||
Marketing expense | 31 | 29 | 28 | 7% | 11% | |||||||||||||||||||||||||||||||||||||||
Other noninterest expense | 266 | 253 | 240 | 5% | 11% | |||||||||||||||||||||||||||||||||||||||
Total noninterest expense | $1,231 | $1,331 | $1,112 | (8)% | 11% | |||||||||||||||||||||||||||||||||||||||
Noninterest Expense excluding certain item(s) | ||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||||||||
Noninterest Expense excluding certain item(s) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense (U.S. GAAP) | $1,231 | $1,331 | $1,112 | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring severance expense | (12) | (12) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense excluding certain item(s)(a) | $1,219 | $1,319 | $1,112 | (8)% | 10% | |||||||||||||||||||||||||||||||||||||||||||||
Average Interest-Earning Assets | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Average Portfolio Loans and Leases | ||||||||||||||||||||||||||||||||||||||||||||
Commercial loans and leases: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans | $58,137 | $58,149 | $55,460 | — | 5% | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | 11,373 | 11,121 | 10,710 | 2% | 6% | |||||||||||||||||||||||||||||||||||||||
Commercial construction loans | 5,535 | 5,507 | 5,356 | 1% | 3% | |||||||||||||||||||||||||||||||||||||||
Commercial leases | 2,700 | 2,662 | 2,839 | 1% | (5)% | |||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases | $77,745 | $77,439 | $74,365 | — | 5% | |||||||||||||||||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | $17,517 | $17,581 | $17,363 | — | 1% | |||||||||||||||||||||||||||||||||||||||
Home equity | 3,937 | 4,005 | 3,895 | (2)% | 1% | |||||||||||||||||||||||||||||||||||||||
Indirect secured consumer loans | 16,281 | 16,598 | 17,241 | (2)% | (6)% | |||||||||||||||||||||||||||||||||||||||
Credit card | 1,783 | 1,780 | 1,704 | — | 5% | |||||||||||||||||||||||||||||||||||||||
Other consumer loans | 6,064 | 5,409 | 3,125 | 12% | 94% | |||||||||||||||||||||||||||||||||||||||
Total consumer loans | $45,582 | $45,373 | $43,328 | — | 5% | |||||||||||||||||||||||||||||||||||||||
Total average portfolio loans and leases | $123,327 | $122,812 | $117,693 | — | 5% | |||||||||||||||||||||||||||||||||||||||
Memo: | ||||||||||||||||||||||||||||||||||||||||||||
Average PPP loans | $37 | $66 | $549 | (44)% | (93)% | |||||||||||||||||||||||||||||||||||||||
Average portfolio commercial and industrial loans - excl. PPP loans | $58,100 | $58,083 | $54,911 | — | 6% | |||||||||||||||||||||||||||||||||||||||
Average Loans and Leases Held for Sale | ||||||||||||||||||||||||||||||||||||||||||||
Commercial loans and leases held for sale | $19 | $56 | $7 | (66)% | 171% | |||||||||||||||||||||||||||||||||||||||
Consumer loans held for sale | 641 | 747 | 2,536 | (14)% | (75)% | |||||||||||||||||||||||||||||||||||||||
Total average loans and leases held for sale | $660 | $803 | $2,543 | (18)% | (74)% | |||||||||||||||||||||||||||||||||||||||
Total average loans and leases | $123,987 | $123,615 | $120,236 | — | 3% | |||||||||||||||||||||||||||||||||||||||
Securities (taxable and tax-exempt) | $57,267 | $58,514 | $54,538 | (2)% | 5% | |||||||||||||||||||||||||||||||||||||||
Other short-term investments | 7,806 | 5,278 | 9,632 | 48% | (19)% | |||||||||||||||||||||||||||||||||||||||
Total average interest-earning assets | $189,060 | $187,407 | $184,406 | 1% | 3% | |||||||||||||||||||||||||||||||||||||||
Average Deposits | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Average Deposits | ||||||||||||||||||||||||||||||||||||||||||||
Demand | $46,520 | $50,737 | $62,555 | (8)% | (26)% | |||||||||||||||||||||||||||||||||||||||
Interest checking | 50,472 | 48,717 | 44,349 | 4% | 14% | |||||||||||||||||||||||||||||||||||||||
Savings | 21,675 | 23,107 | 23,708 | (6)% | (9)% | |||||||||||||||||||||||||||||||||||||||
Money market | 28,913 | 28,420 | 29,284 | 2% | (1)% | |||||||||||||||||||||||||||||||||||||||
Foreign office(g) | 143 | 143 | 139 | — | 3% | |||||||||||||||||||||||||||||||||||||||
Total transaction deposits | $147,723 | $151,124 | $160,035 | (2)% | (8)% | |||||||||||||||||||||||||||||||||||||||
CDs $250,000 or less | 7,759 | 5,173 | 2,193 | 50% | 254% | |||||||||||||||||||||||||||||||||||||||
Total core deposits | $155,482 | $156,297 | $162,228 | (1)% | (4)% | |||||||||||||||||||||||||||||||||||||||
CDs over $250,000 | 5,375 | 4,348 | 662 | 24% | 712% | |||||||||||||||||||||||||||||||||||||||
Total average deposits | $160,857 | $160,645 | $162,890 | — | (1)% | |||||||||||||||||||||||||||||||||||||||
CDs over $250,000 includes $4.9 billion of retail brokered certificates of deposit which are covered by FDIC insurance as of the second quarter of 2023. | ||||||||||||||||||||||||||||||||||||||||||||
Average Wholesale Funding | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Average Wholesale Funding | ||||||||||||||||||||||||||||||||||||||||||||
CDs over $250,000 | $5,375 | $4,348 | $662 | 24% | 712% | |||||||||||||||||||||||||||||||||||||||
Federal funds purchased | 376 | 487 | 392 | (23)% | (4)% | |||||||||||||||||||||||||||||||||||||||
Securities sold under repurchase agreements | 361 | 327 | 488 | 10% | (26)% | |||||||||||||||||||||||||||||||||||||||
FHLB advances | 6,589 | 4,803 | 2,743 | 37% | 140% | |||||||||||||||||||||||||||||||||||||||
Derivative collateral and other secured borrowings | 79 | 245 | 340 | (68)% | (77)% | |||||||||||||||||||||||||||||||||||||||
Long-term debt | 12,848 | 13,510 | 11,164 | (5)% | 15% | |||||||||||||||||||||||||||||||||||||||
Total average wholesale funding | $25,628 | $23,720 | $15,789 | 8% | 62% | |||||||||||||||||||||||||||||||||||||||
CDs over $250,000 includes $4.9 billion of retail brokered certificates of deposit which are covered by FDIC insurance as of the second quarter of 2023. |
Credit Quality Summary | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of and For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
June | March | December | September | June | ||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||
Total nonaccrual portfolio loans and leases (NPLs) | $629 | $593 | $515 | $522 | $539 | |||||||||||||||||||||||||||||||||||||||
Repossessed property | 8 | 8 | 6 | 6 | 6 | |||||||||||||||||||||||||||||||||||||||
OREO | 24 | 22 | 18 | 18 | 14 | |||||||||||||||||||||||||||||||||||||||
Total nonperforming portfolio loans and leases and OREO (NPAs) | $661 | $623 | $539 | $546 | $559 | |||||||||||||||||||||||||||||||||||||||
NPL ratio(h) | 0.52 | % | 0.48 | % | 0.42 | % | 0.44 | % | 0.45 | % | ||||||||||||||||||||||||||||||||||
NPA ratio(c) | 0.54 | % | 0.51 | % | 0.44 | % | 0.46 | % | 0.47 | % | ||||||||||||||||||||||||||||||||||
Portfolio loans and leases 30-89 days past due (accrual) | $339 | $317 | $364 | $335 | $294 | |||||||||||||||||||||||||||||||||||||||
Portfolio loans and leases 90 days past due (accrual) | 51 | 46 | 40 | 59 | 39 | |||||||||||||||||||||||||||||||||||||||
30-89 days past due as a % of portfolio loans and leases | 0.28 | % | 0.26 | % | 0.30 | % | 0.28 | % | 0.25 | % | ||||||||||||||||||||||||||||||||||
90 days past due as a % of portfolio loans and leases | 0.04 | % | 0.04 | % | 0.03 | % | 0.05 | % | 0.03 | % | ||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses (ALLL), beginning | $2,215 | $2,194 | $2,099 | $2,014 | $1,908 | |||||||||||||||||||||||||||||||||||||||
Impact of adoption of ASU 2022-02 | — | (49) | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total net losses charged-off | (90) | (78) | (68) | (62) | (62) | |||||||||||||||||||||||||||||||||||||||
Provision for loan and lease losses | 202 | 148 | 163 | 147 | 168 | |||||||||||||||||||||||||||||||||||||||
ALLL, ending | $2,327 | $2,215 | $2,194 | $2,099 | $2,014 | |||||||||||||||||||||||||||||||||||||||
Reserve for unfunded commitments, beginning | $232 | $216 | $199 | $188 | $177 | |||||||||||||||||||||||||||||||||||||||
(Benefit from) provision for the reserve for unfunded commitments | (25) | 16 | 17 | 11 | 11 | |||||||||||||||||||||||||||||||||||||||
Reserve for unfunded commitments, ending | $207 | $232 | $216 | $199 | $188 | |||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses (ACL) | $2,534 | $2,447 | $2,410 | $2,298 | $2,202 | |||||||||||||||||||||||||||||||||||||||
ACL ratios: | ||||||||||||||||||||||||||||||||||||||||||||
As a % of portfolio loans and leases | 2.08 | % | 1.99 | % | 1.98 | % | 1.91 | % | 1.85 | % | ||||||||||||||||||||||||||||||||||
As a % of nonperforming portfolio loans and leases | 403 | % | 413 | % | 468 | % | 440 | % | 408 | % | ||||||||||||||||||||||||||||||||||
As a % of nonperforming portfolio assets | 383 | % | 393 | % | 447 | % | 420 | % | 394 | % | ||||||||||||||||||||||||||||||||||
ALLL as a % of portfolio loans and leases | 1.91 | % | 1.80 | % | 1.81 | % | 1.75 | % | 1.70 | % | ||||||||||||||||||||||||||||||||||
Total losses charged-off | $(121) | $(110) | $(103) | $(104) | $(90) | |||||||||||||||||||||||||||||||||||||||
Total recoveries of losses previously charged-off | 31 | 32 | 35 | 42 | 28 | |||||||||||||||||||||||||||||||||||||||
Total net losses charged-off | $(90) | $(78) | $(68) | $(62) | $(62) | |||||||||||||||||||||||||||||||||||||||
Net charge-off ratio (NCO ratio)(b) | 0.29 | % | 0.26 | % | 0.22 | % | 0.21 | % | 0.21 | % | ||||||||||||||||||||||||||||||||||
Commercial NCO ratio | 0.16 | % | 0.17 | % | 0.13 | % | 0.17 | % | 0.19 | % | ||||||||||||||||||||||||||||||||||
Consumer NCO ratio | 0.50 | % | 0.42 | % | 0.38 | % | 0.28 | % | 0.24 | % | ||||||||||||||||||||||||||||||||||
Capital Position | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of and For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June | March | December | September | June | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Capital Position | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average total Bancorp shareholders' equity as a % of average assets | 8.90 | % | 8.77% | 8.18% | 9.13% | 9.35 | % | |||||||||||||||||||||||||||||||||||||||||||
Tangible equity(a) | 8.58 | % | 8.39% | 8.31% | 8.18% | 8.05 | % | |||||||||||||||||||||||||||||||||||||||||||
Tangible common equity (excluding AOCI)(a) | 7.57 | % | 7.38% | 7.30% | 7.16% | 7.01 | % | |||||||||||||||||||||||||||||||||||||||||||
Tangible common equity (including AOCI)(a) | 5.26 | % | 5.49% | 5.00% | 4.75% | 5.82 | % | |||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Ratios(d)(e) | ||||||||||||||||||||||||||||||||||||||||||||||||||
CET1 capital | 9.53 | % | 9.28% | 9.28% | 9.14% | 8.95 | % | |||||||||||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital | 10.78 | % | 10.53% | 10.53% | 10.40% | 10.23 | % | |||||||||||||||||||||||||||||||||||||||||||
Total risk-based capital | 12.89 | % | 12.64% | 12.79% | 12.64% | 12.47 | % | |||||||||||||||||||||||||||||||||||||||||||
Leverage | 8.81 | % | 8.67% | 8.56% | 8.44% | 8.30 | % | |||||||||||||||||||||||||||||||||||||||||||
Financial Highlights | 14-15 | ||||||||||
Consolidated Statements of Income | 16-17 | ||||||||||
Consolidated Balance Sheets | 18-19 | ||||||||||
Consolidated Statements of Changes in Equity | 20 | ||||||||||
Average Balance Sheets and Yield/Rate Analysis | 21-22 | ||||||||||
Summary of Loans and Leases | 23 | ||||||||||
Regulatory Capital | 24 | ||||||||||
Summary of Credit Loss Experience | 25 | ||||||||||
Asset Quality | 26 | ||||||||||
Non-GAAP Reconciliation | 27-29 | ||||||||||
Segment Presentation | 30 | ||||||||||
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||||||||
Financial Highlights | As of and For the Three Months Ended | % / bps | % / bps | ||||||||||||||||||||||||||
$ in millions, except per share data | Change | Year to Date | Change | ||||||||||||||||||||||||||
(unaudited) | June | March | June | June | June | ||||||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | 2023 | 2022 | Yr/Yr | ||||||||||||||||||||||
Income Statement Data | |||||||||||||||||||||||||||||
Net interest income | $1,457 | $1,517 | $1,339 | (4%) | 9% | $2,974 | $2,534 | 17% | |||||||||||||||||||||
Net interest income (FTE)(a) | 1,463 | 1,522 | 1,342 | (4%) | 9% | 2,985 | 2,541 | 17% | |||||||||||||||||||||
Noninterest income | 726 | 696 | 676 | 4% | 7% | 1,422 | 1,359 | 5% | |||||||||||||||||||||
Total revenue (FTE)(a) | 2,189 | 2,218 | 2,018 | (1%) | 8% | 4,407 | 3,900 | 13% | |||||||||||||||||||||
Provision for credit losses | 177 | 164 | 179 | 8% | (1%) | 341 | 224 | 52% | |||||||||||||||||||||
Noninterest expense | 1,231 | 1,331 | 1,112 | (8%) | 11% | 2,562 | 2,334 | 10% | |||||||||||||||||||||
Net income | 601 | 558 | 562 | 8% | 7% | 1,159 | 1,056 | 10% | |||||||||||||||||||||
Net income available to common shareholders | 562 | 535 | 526 | 5% | 7% | 1,097 | 1,000 | 10% | |||||||||||||||||||||
Earnings Per Share Data | |||||||||||||||||||||||||||||
Net income allocated to common shareholders | $562 | $535 | $525 | 5% | 7% | $1,097 | $999 | 10% | |||||||||||||||||||||
Average common shares outstanding (in thousands): | |||||||||||||||||||||||||||||
Basic | 684,029 | 684,017 | 689,019 | — | (1%) | 684,023 | 688,282 | (1%) | |||||||||||||||||||||
Diluted | 686,386 | 689,566 | 694,805 | — | (1%) | 687,967 | 695,520 | (1%) | |||||||||||||||||||||
Earnings per share, basic | $0.82 | $0.78 | $0.76 | 5% | 8% | $1.60 | $1.45 | 10% | |||||||||||||||||||||
Earnings per share, diluted | 0.82 | 0.78 | 0.76 | 5% | 8% | 1.59 | 1.44 | 10% | |||||||||||||||||||||
Common Share Data | |||||||||||||||||||||||||||||
Cash dividends per common share | $0.33 | $0.33 | $0.30 | — | 10% | $0.66 | $0.60 | 10% | |||||||||||||||||||||
Book value per share | 23.05 | 23.87 | 24.56 | (3%) | (6%) | 23.05 | 24.56 | (6%) | |||||||||||||||||||||
Market value per share | 26.21 | 26.64 | 33.60 | (2%) | (22%) | 26.21 | 33.60 | (22%) | |||||||||||||||||||||
Common shares outstanding (in thousands) | 680,850 | 680,537 | 686,152 | — | (1%) | 680,850 | 686,152 | (1%) | |||||||||||||||||||||
Market capitalization | $17,845 | $18,129 | $23,055 | (2%) | (23%) | $17,845 | $23,055 | (23%) | |||||||||||||||||||||
Financial Ratios | |||||||||||||||||||||||||||||
Return on average assets | 1.17 | % | 1.10 | % | 1.09 | % | 7 | 8 | 1.14 | % | 1.03 | % | 11 | ||||||||||||||||
Return on average common equity | 13.9 | % | 13.7 | % | 12.3 | % | 20 | 160 | 13.8 | % | 11.1 | % | 270 | ||||||||||||||||
Return on average tangible common equity(a) | 20.5 | % | 20.5 | % | 17.5 | % | — | 300 | 20.5 | % | 15.3 | % | 520 | ||||||||||||||||
Noninterest income as a percent of total revenue(a) | 33 | % | 31 | % | 33 | % | 200 | — | 32 | % | 35 | % | (300) | ||||||||||||||||
Dividend payout | 40.2 | % | 42.3 | % | 39.5 | % | (210) | 70 | 41.3 | % | 41.4 | % | (10) | ||||||||||||||||
Average total Bancorp shareholders’ equity as a percent of average assets | 8.90 | % | 8.77 | % | 9.35 | % | 13 | (45) | 8.83 | % | 9.79 | % | (96) | ||||||||||||||||
Tangible common equity(a) | 7.57 | % | 7.38 | % | 7.01 | % | 19 | 56 | 7.57 | % | 7.01 | % | 56 | ||||||||||||||||
Net interest margin (FTE)(a) | 3.10 | % | 3.29 | % | 2.92 | % | (19) | 18 | 3.20 | % | 2.75 | % | 45 | ||||||||||||||||
Efficiency (FTE)(a) | 56.2 | % | 60.0 | % | 55.1 | % | (380) | 110 | 58.1 | % | 59.8 | % | (170) | ||||||||||||||||
Effective tax rate | 22.5 | % | 22.3 | % | 22.4 | % | 20 | 10 | 22.4 | % | 20.9 | % | 150 | ||||||||||||||||
Credit Quality | |||||||||||||||||||||||||||||
Net losses charged-off | $90 | $78 | $62 | 15 | % | 45 | % | $168 | $96 | 75 | % | ||||||||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.29 | % | 0.26 | % | 0.21 | % | 3 | 8 | 0.27 | % | 0.17 | % | 10 | ||||||||||||||||
ALLL as a percent of portfolio loans and leases | 1.91 | % | 1.80 | % | 1.70 | % | 11 | 21 | 1.91 | % | 1.70 | % | 21 | ||||||||||||||||
ACL as a percent of portfolio loans and leases(g) | 2.08 | % | 1.99 | % | 1.85 | % | 9 | 23 | 2.08 | % | 1.85 | % | 23 | ||||||||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.54 | % | 0.51 | % | 0.47 | % | 3 | 7 | 0.54 | % | 0.47 | % | 7 | ||||||||||||||||
Average Balances | |||||||||||||||||||||||||||||
Loans and leases, including held for sale | $123,987 | $123,615 | $120,236 | — | 3% | $123,802 | $118,708 | 4% | |||||||||||||||||||||
Securities and other short-term investments | 65,073 | 63,792 | 64,170 | 2% | 1% | 64,436 | 67,431 | (4%) | |||||||||||||||||||||
Assets | 206,079 | 205,084 | 205,897 | — | — | 205,584 | 207,515 | (1%) | |||||||||||||||||||||
Transaction deposits(b) | 147,723 | 151,124 | 160,035 | (2%) | (8%) | 149,414 | 163,016 | (8%) | |||||||||||||||||||||
Core deposits(c) | 155,482 | 156,297 | 162,228 | (1%) | (4%) | 155,887 | 165,300 | (6%) | |||||||||||||||||||||
Wholesale funding(d) | 25,628 | 23,720 | 15,789 | 8% | 62% | 24,680 | 14,188 | 74% | |||||||||||||||||||||
Bancorp shareholders' equity | 18,344 | 17,977 | 19,248 | 2% | (5%) | 18,162 | 20,319 | (11%) | |||||||||||||||||||||
Regulatory Capital Ratios(e)(f) | |||||||||||||||||||||||||||||
CET1 capital | 9.53 | % | 9.28 | % | 8.95 | % | 25 | 58 | 9.53 | % | 8.95 | % | 58 | ||||||||||||||||
Tier 1 risk-based capital | 10.78 | % | 10.53 | % | 10.23 | % | 25 | 55 | 10.78 | % | 10.23 | % | 55 | ||||||||||||||||
Total risk-based capital | 12.89 | % | 12.64 | % | 12.47 | % | 25 | 42 | 12.89 | % | 12.47 | % | 42 | ||||||||||||||||
Leverage | 8.81 | % | 8.67 | % | 8.30 | % | 14 | 51 | 8.81 | % | 8.30 | % | 51 | ||||||||||||||||
Additional Metrics | |||||||||||||||||||||||||||||
Banking centers | 1,072 | 1,069 | 1,080 | — | (1%) | 1,072 | 1,080 | (1%) | |||||||||||||||||||||
ATMs | 2,114 | 2,118 | 2,153 | — | (2%) | 2,114 | 2,153 | (2%) | |||||||||||||||||||||
Full-time equivalent employees | 19,225 | 19,474 | 19,119 | (1%) | 1% | 19,225 | 19,119 | 1% | |||||||||||||||||||||
Assets under care ($ in billions)(h) | $554 | $542 | $512 | 2% | 8% | $554 | $512 | 8% | |||||||||||||||||||||
Assets under management ($ in billions)(h) | 59 | 57 | 54 | 4% | 9% | 59 | 54 | 9% |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
$ in millions, except per share data | As of and For the Three Months Ended | |||||||||||||||||||
(unaudited) | June | March | December | September | June | |||||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | ||||||||||||||||
Income Statement Data | ||||||||||||||||||||
Net interest income | $1,457 | $1,517 | $1,577 | $1,498 | $1,339 | |||||||||||||||
Net interest income (FTE)(a) | 1,463 | 1,522 | 1,582 | 1,502 | 1,342 | |||||||||||||||
Noninterest income | 726 | 696 | 735 | 672 | 676 | |||||||||||||||
Total revenue (FTE)(a) | 2,189 | 2,218 | 2,317 | 2,174 | 2,018 | |||||||||||||||
Provision for credit losses | 177 | 164 | 180 | 158 | 179 | |||||||||||||||
Noninterest expense | 1,231 | 1,331 | 1,218 | 1,167 | 1,112 | |||||||||||||||
Net income | 601 | 558 | 737 | 653 | 562 | |||||||||||||||
Net income available to common shareholders | 562 | 535 | 699 | 631 | 526 | |||||||||||||||
Earnings Per Share Data | ||||||||||||||||||||
Net income allocated to common shareholders | $562 | $535 | $698 | $631 | $525 | |||||||||||||||
Average common shares outstanding (in thousands): | ||||||||||||||||||||
Basic | 684,029 | 684,017 | 688,680 | 689,278 | 689,019 | |||||||||||||||
Diluted | 686,386 | 689,566 | 694,195 | 694,593 | 694,805 | |||||||||||||||
Earnings per share, basic | $0.82 | $0.78 | $1.01 | $0.91 | $0.76 | |||||||||||||||
Earnings per share, diluted | 0.82 | 0.78 | 1.01 | 0.91 | 0.76 | |||||||||||||||
Common Share Data | ||||||||||||||||||||
Cash dividends per common share | $0.33 | $0.33 | $0.33 | $0.33 | $0.30 | |||||||||||||||
Book value per share | 23.05 | 23.87 | 22.26 | 21.30 | 24.56 | |||||||||||||||
Market value per share | 26.21 | 26.64 | 32.81 | 31.96 | 33.60 | |||||||||||||||
Common shares outstanding (in thousands) | 680,850 | 680,537 | 683,386 | 686,343 | 686,152 | |||||||||||||||
Market capitalization | $17,845 | $18,129 | $22,422 | $21,936 | $23,055 | |||||||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.17 | % | 1.10 | % | 1.42 | % | 1.25 | % | 1.09 | % | ||||||||||
Return on average common equity | 13.9 | % | 13.7 | % | 18.8 | % | 14.9 | % | 12.3 | % | ||||||||||
Return on average tangible common equity(a) | 20.5 | % | 20.5 | % | 29.2 | % | 21.9 | % | 17.5 | % | ||||||||||
Noninterest income as a percent of total revenue(a) | 33 | % | 31 | % | 32 | % | 31 | % | 33 | % | ||||||||||
Dividend payout | 40.2 | % | 42.3 | % | 32.7 | % | 36.3 | % | 39.5 | % | ||||||||||
Average total Bancorp shareholders’ equity as a percent of average assets | 8.90 | % | 8.77 | % | 8.18 | % | 9.13 | % | 9.35 | % | ||||||||||
Tangible common equity(a) | 7.57 | % | 7.38 | % | 7.30 | % | 7.16 | % | 7.01 | % | ||||||||||
Net interest margin (FTE)(a) | 3.10 | % | 3.29 | % | 3.35 | % | 3.22 | % | 2.92 | % | ||||||||||
Efficiency (FTE)(a) | 56.2 | % | 60.0 | % | 52.6 | % | 53.7 | % | 55.1 | % | ||||||||||
Effective tax rate | 22.5 | % | 22.3 | % | 19.4 | % | 22.7 | % | 22.4 | % | ||||||||||
Credit Quality | ||||||||||||||||||||
Net losses charged-off | $90 | $78 | $68 | $62 | $62 | |||||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.29 | % | 0.26 | % | 0.22 | % | 0.21 | % | 0.21 | % | ||||||||||
ALLL as a percent of portfolio loans and leases | 1.91 | % | 1.80 | % | 1.81 | % | 1.75 | % | 1.70 | % | ||||||||||
ACL as a percent of portfolio loans and leases(g) | 2.08 | % | 1.99 | % | 1.98 | % | 1.91 | % | 1.85 | % | ||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.54 | % | 0.51 | % | 0.44 | % | 0.46 | % | 0.47 | % | ||||||||||
Average Balances | ||||||||||||||||||||
Loans and leases, including held for sale | $123,987 | $123,615 | $122,866 | $121,900 | $120,236 | |||||||||||||||
Securities and other short-term investments | 65,073 | 63,792 | 64,774 | 63,478 | 64,170 | |||||||||||||||
Assets | 206,079 | 205,084 | 206,017 | 206,688 | 205,897 | |||||||||||||||
Transaction deposits(b) | 147,723 | 151,124 | 154,747 | 155,195 | 160,035 | |||||||||||||||
Core deposits(c) | 155,482 | 156,297 | 157,495 | 157,243 | 162,228 | |||||||||||||||
Wholesale funding(d) | 25,628 | 23,720 | 23,445 | 22,065 | 15,789 | |||||||||||||||
Bancorp shareholders’ equity | 18,344 | 17,977 | 16,857 | 18,864 | 19,248 | |||||||||||||||
Regulatory Capital Ratios(e)(f) | ||||||||||||||||||||
CET1 capital | 9.53 | % | 9.28 | % | 9.28 | % | 9.14 | % | 8.95 | % | ||||||||||
Tier 1 risk-based capital | 10.78 | % | 10.53 | % | 10.53 | % | 10.40 | % | 10.23 | % | ||||||||||
Total risk-based capital | 12.89 | % | 12.64 | % | 12.79 | % | 12.64 | % | 12.47 | % | ||||||||||
Leverage | 8.81 | % | 8.67 | % | 8.56 | % | 8.44 | % | 8.30 | % | ||||||||||
Additional Metrics | ||||||||||||||||||||
Banking centers | 1,072 | 1,069 | 1,087 | 1,080 | 1,080 | |||||||||||||||
ATMs | 2,114 | 2,118 | 2,132 | 2,146 | 2,153 | |||||||||||||||
Full-time equivalent employees | 19,225 | 19,474 | 19,319 | 19,187 | 19,119 | |||||||||||||||
Assets under care ($ in billions)(h) | $554 | $542 | $510 | $494 | $512 | |||||||||||||||
Assets under management ($ in billions)(h) | 59 | 57 | 55 | 52 | 54 |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||||
$ in millions | For the Three Months Ended | % Change | Year to Date | % Change | ||||||||||||||||||||||
(unaudited) | June | March | June | June | June | |||||||||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | 2023 | 2022 | Yr/Yr | |||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||
Interest and fees on loans and leases | $1,831 | $1,714 | $1,081 | 7% | 69% | $3,545 | $2,062 | 72% | ||||||||||||||||||
Interest on securities | 437 | 439 | 369 | — | 18% | 876 | 663 | 32% | ||||||||||||||||||
Interest on other short-term investments | 102 | 60 | 14 | 70% | 629% | 162 | 27 | 500% | ||||||||||||||||||
Total interest income | 2,370 | 2,213 | 1,464 | 7% | 62% | 4,583 | 2,752 | 67% | ||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||
Interest on deposits | 655 | 478 | 25 | 37% | NM | 1,133 | 36 | NM | ||||||||||||||||||
Interest on federal funds purchased | 5 | 5 | 1 | — | 400% | 10 | 1 | 900% | ||||||||||||||||||
Interest on other short-term borrowings | 90 | 57 | 12 | 58% | 650% | 147 | 13 | NM | ||||||||||||||||||
Interest on long-term debt | 163 | 156 | 87 | 4% | 87% | 319 | 168 | 90% | ||||||||||||||||||
Total interest expense | 913 | 696 | 125 | 31% | 630% | 1,609 | 218 | 638% | ||||||||||||||||||
Net Interest Income | 1,457 | 1,517 | 1,339 | (4%) | 9% | 2,974 | 2,534 | 17% | ||||||||||||||||||
Provision for credit losses | 177 | 164 | 179 | 8% | (1%) | 341 | 224 | 52% | ||||||||||||||||||
Net Interest Income After Provision for Credit Losses | 1,280 | 1,353 | 1,160 | (5%) | 10% | 2,633 | 2,310 | 14% | ||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Service charges on deposits | 144 | 137 | 154 | 5% | (6%) | 281 | 306 | (8%) | ||||||||||||||||||
Commercial banking revenue | 146 | 161 | 137 | (9%) | 7% | 307 | 272 | 13% | ||||||||||||||||||
Mortgage banking net revenue | 59 | 69 | 31 | (14%) | 90% | 127 | 83 | 53% | ||||||||||||||||||
Wealth and asset management revenue | 143 | 146 | 140 | (2%) | 2% | 289 | 289 | — | ||||||||||||||||||
Card and processing revenue | 106 | 100 | 105 | 6% | 1% | 206 | 201 | 2% | ||||||||||||||||||
Leasing business revenue | 47 | 57 | 56 | (18%) | (16%) | 104 | 118 | (12%) | ||||||||||||||||||
Other noninterest income | 74 | 22 | 85 | 236% | (13%) | 97 | 138 | (30%) | ||||||||||||||||||
Securities gains (losses), net | 7 | 4 | (32) | 75% | NM | 11 | (47) | NM | ||||||||||||||||||
Securities losses, net - non-qualifying hedges on mortgage servicing rights | — | — | — | NM | NM | — | (1) | (100%) | ||||||||||||||||||
Total noninterest income | 726 | 696 | 676 | 4% | 7% | 1,422 | 1,359 | 5% | ||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||
Compensation and benefits | 650 | 757 | 584 | (14%) | 11% | 1,407 | 1,295 | 9% | ||||||||||||||||||
Net occupancy expense | 83 | 81 | 75 | 2% | 11% | 164 | 152 | 8% | ||||||||||||||||||
Technology and communications | 114 | 118 | 98 | (3%) | 16% | 232 | 199 | 17% | ||||||||||||||||||
Equipment expense | 36 | 37 | 36 | (3%) | — | 73 | 72 | 1% | ||||||||||||||||||
Card and processing expense | 20 | 22 | 20 | (9%) | — | 42 | 38 | 11% | ||||||||||||||||||
Leasing business expense | 31 | 34 | 31 | (9%) | — | 65 | 63 | 3% | ||||||||||||||||||
Marketing expense | 31 | 29 | 28 | 7% | 11% | 60 | 52 | 15% | ||||||||||||||||||
Other noninterest expense | 266 | 253 | 240 | 5% | 11% | 519 | 463 | 12% | ||||||||||||||||||
Total noninterest expense | 1,231 | 1,331 | 1,112 | (8%) | 11% | 2,562 | 2,334 | 10% | ||||||||||||||||||
Income Before Income Taxes | 775 | 718 | 724 | 8% | 7% | 1,493 | 1,335 | 12% | ||||||||||||||||||
Applicable income tax expense | 174 | 160 | 162 | 9% | 7% | 334 | 279 | 20% | ||||||||||||||||||
Net Income | 601 | 558 | 562 | 8% | 7% | 1,159 | 1,056 | 10% | ||||||||||||||||||
Dividends on preferred stock | 39 | 23 | 36 | 70% | 8% | 62 | 56 | 11% | ||||||||||||||||||
Net Income Available to Common Shareholders | $562 | $535 | $526 | 5% | 7% | $1,097 | $1,000 | 10% |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||
(unaudited) | June | March | December | September | June | ||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||
Interest Income | |||||||||||||||||
Interest and fees on loans and leases | $1,831 | $1,714 | $1,577 | $1,315 | $1,081 | ||||||||||||
Interest on securities | 437 | 439 | 440 | 414 | 369 | ||||||||||||
Interest on other short-term investments | 102 | 60 | 58 | 31 | 14 | ||||||||||||
Total interest income | 2,370 | 2,213 | 2,075 | 1,760 | 1,464 | ||||||||||||
Interest Expense | |||||||||||||||||
Interest on deposits | 655 | 478 | 300 | 112 | 25 | ||||||||||||
Interest on federal funds purchased | 5 | 5 | 2 | 3 | 1 | ||||||||||||
Interest on other short-term borrowings | 90 | 57 | 53 | 43 | 12 | ||||||||||||
Interest on long-term debt | 163 | 156 | 143 | 104 | 87 | ||||||||||||
Total interest expense | 913 | 696 | 498 | 262 | 125 | ||||||||||||
Net Interest Income | 1,457 | 1,517 | 1,577 | 1,498 | 1,339 | ||||||||||||
Provision for credit losses | 177 | 164 | 180 | 158 | 179 | ||||||||||||
Net Interest Income After Provision for Credit Losses | 1,280 | 1,353 | 1,397 | 1,340 | 1,160 | ||||||||||||
Noninterest Income | |||||||||||||||||
Service charges on deposits | 144 | 137 | 140 | 143 | 154 | ||||||||||||
Commercial banking revenue | 146 | 161 | 158 | 134 | 137 | ||||||||||||
Mortgage banking net revenue | 59 | 69 | 63 | 69 | 31 | ||||||||||||
Wealth and asset management revenue | 143 | 146 | 139 | 141 | 140 | ||||||||||||
Card and processing revenue | 106 | 100 | 103 | 105 | 105 | ||||||||||||
Leasing business revenue | 47 | 57 | 58 | 60 | 56 | ||||||||||||
Other noninterest income | 74 | 22 | 72 | 59 | 85 | ||||||||||||
Securities gains (losses), net | 7 | 4 | 2 | (38) | (32) | ||||||||||||
Securities losses, net - non-qualifying hedges on mortgage servicing rights | — | — | — | (1) | — | ||||||||||||
Total noninterest income | 726 | 696 | 735 | 672 | 676 | ||||||||||||
Noninterest Expense | |||||||||||||||||
Compensation and benefits | 650 | 757 | 655 | 605 | 584 | ||||||||||||
Net occupancy expense | 83 | 81 | 82 | 74 | 75 | ||||||||||||
Technology and communications | 114 | 118 | 111 | 106 | 98 | ||||||||||||
Equipment expense | 36 | 37 | 37 | 36 | 36 | ||||||||||||
Card and processing expense | 20 | 22 | 21 | 21 | 20 | ||||||||||||
Leasing business expense | 31 | 34 | 36 | 33 | 31 | ||||||||||||
Marketing expense | 31 | 29 | 31 | 35 | 28 | ||||||||||||
Other noninterest expense | 266 | 253 | 245 | 257 | 240 | ||||||||||||
Total noninterest expense | 1,231 | 1,331 | 1,218 | 1,167 | 1,112 | ||||||||||||
Income Before Income Taxes | 775 | 718 | 914 | 845 | 724 | ||||||||||||
Applicable income tax expense | 174 | 160 | 177 | 192 | 162 | ||||||||||||
Net Income | 601 | 558 | 737 | 653 | 562 | ||||||||||||
Dividends on preferred stock | 39 | 23 | 38 | 22 | 36 | ||||||||||||
Net Income Available to Common Shareholders | $562 | $535 | $699 | $631 | $526 |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||
$ in millions, except per share data | As of | % Change | |||||||||||||||
(unaudited) | June | March | June | ||||||||||||||
2023 | 2023 | 2022 | Seq | Yr/Yr | |||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $2,594 | $2,780 | $3,437 | (7%) | (25%) | ||||||||||||
Other short-term investments | 10,943 | 9,794 | 7,419 | 12% | 47% | ||||||||||||
Available-for-sale debt and other securities(a) | 49,329 | 50,719 | 52,837 | (3%) | (7%) | ||||||||||||
Held-to-maturity securities(b) | 2 | 2 | 5 | — | (60%) | ||||||||||||
Trading debt securities | 1,139 | 1,174 | 293 | (3%) | 289% | ||||||||||||
Equity securities | 331 | 323 | 326 | 2% | 2% | ||||||||||||
Loans and leases held for sale | 760 | 749 | 2,542 | 1% | (70%) | ||||||||||||
Portfolio loans and leases: | |||||||||||||||||
Commercial and industrial loans | 56,897 | 57,720 | 56,095 | (1%) | 1% | ||||||||||||
Commercial mortgage loans | 11,310 | 11,228 | 10,748 | 1% | 5% | ||||||||||||
Commercial construction loans | 5,475 | 5,548 | 5,357 | (1%) | 2% | ||||||||||||
Commercial leases | 2,670 | 2,743 | 2,850 | (3%) | (6%) | ||||||||||||
Total commercial loans and leases | 76,352 | 77,239 | 75,050 | (1%) | 2% | ||||||||||||
Residential mortgage loans | 17,503 | 17,608 | 17,566 | (1%) | — | ||||||||||||
Home equity | 3,911 | 3,958 | 3,906 | (1%) | — | ||||||||||||
Indirect secured consumer loans | 16,097 | 16,484 | 17,017 | (2%) | (5%) | ||||||||||||
Credit card | 1,818 | 1,761 | 1,763 | 3% | 3% | ||||||||||||
Other consumer loans | 6,210 | 5,807 | 3,521 | 7% | 76% | ||||||||||||
Total consumer loans | 45,539 | 45,618 | 43,773 | — | 4% | ||||||||||||
Portfolio loans and leases | 121,891 | 122,857 | 118,823 | (1%) | 3% | ||||||||||||
Allowance for loan and lease losses | (2,327) | (2,215) | (2,014) | 5% | 16% | ||||||||||||
Portfolio loans and leases, net | 119,564 | 120,642 | 116,809 | (1%) | 2% | ||||||||||||
Bank premises and equipment | 2,275 | 2,219 | 2,118 | 3% | 7% | ||||||||||||
Operating lease equipment | 537 | 578 | 600 | (7%) | (11%) | ||||||||||||
Goodwill | 4,919 | 4,915 | 4,926 | — | — | ||||||||||||
Intangible assets | 146 | 157 | 194 | (7%) | (25%) | ||||||||||||
Servicing rights | 1,764 | 1,725 | 1,582 | 2% | 12% | ||||||||||||
Other assets | 12,973 | 12,880 | 13,694 | 1% | (5%) | ||||||||||||
Total Assets | $207,276 | $208,657 | $206,782 | (1%) | — | ||||||||||||
Liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Demand | $45,264 | $49,649 | $60,859 | (9%) | (26%) | ||||||||||||
Interest checking | 52,743 | 49,924 | 43,338 | 6% | 22% | ||||||||||||
Savings | 21,342 | 22,563 | 23,748 | (5%) | (10%) | ||||||||||||
Money market | 30,012 | 28,482 | 28,792 | 5% | 4% | ||||||||||||
Foreign office | 182 | 134 | 177 | 36% | 3% | ||||||||||||
CDs $250,000 or less | 8,833 | 6,624 | 2,125 | 33% | 316% | ||||||||||||
CDs over $250,000 | 5,752 | 5,599 | 2,135 | 3% | 169% | ||||||||||||
Total deposits | 164,128 | 162,975 | 161,174 | 1% | 2% | ||||||||||||
Federal funds purchased | 163 | 177 | 711 | (8%) | (77%) | ||||||||||||
Other short-term borrowings | 5,817 | 7,364 | 7,057 | (21%) | (18%) | ||||||||||||
Accrued taxes, interest and expenses | 1,765 | 1,577 | 1,683 | 12% | 5% | ||||||||||||
Other liabilities | 5,316 | 5,307 | 6,197 | — | (14%) | ||||||||||||
Long-term debt | 12,278 | 12,893 | 10,990 | (5%) | 12% | ||||||||||||
Total Liabilities | 189,467 | 190,293 | 187,812 | — | 1% | ||||||||||||
Equity | |||||||||||||||||
Common stock(c) | 2,051 | 2,051 | 2,051 | — | — | ||||||||||||
Preferred stock | 2,116 | 2,116 | 2,116 | — | — | ||||||||||||
Capital surplus | 3,708 | 3,682 | 3,636 | 1% | 2% | ||||||||||||
Retained earnings | 22,366 | 22,032 | 20,818 | 2% | 7% | ||||||||||||
Accumulated other comprehensive loss | (5,166) | (4,245) | (2,644) | 22% | 95% | ||||||||||||
Treasury stock | (7,266) | (7,272) | (7,007) | — | 4% | ||||||||||||
Total Equity | 17,809 | 18,364 | 18,970 | (3%) | (6%) | ||||||||||||
Total Liabilities and Equity | $207,276 | $208,657 | $206,782 | (1%) | — | ||||||||||||
(a) Amortized cost | $55,399 | $55,958 | $56,140 | (1%) | (1%) | ||||||||||||
(b) Market values | 2 | 2 | 5 | — | (60%) | ||||||||||||
(c) Common shares, stated value $2.22 per share (in thousands): | |||||||||||||||||
Authorized | 2,000,000 | 2,000,000 | 2,000,000 | — | — | ||||||||||||
Outstanding, excluding treasury | 680,850 | 680,537 | 686,152 | — | — | ||||||||||||
Treasury | 243,042 | 243,356 | 237,741 | — | — | ||||||||||||
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||
$ in millions, except per share data | As of | ||||||||||||||||
(unaudited) | June | March | December | September | June | ||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $2,594 | $2,780 | $3,466 | $3,068 | $3,437 | ||||||||||||
Other short-term investments | 10,943 | 9,794 | 8,351 | 6,594 | 7,419 | ||||||||||||
Available-for-sale debt and other securities(a) | 49,329 | 50,719 | 51,503 | 51,289 | 52,837 | ||||||||||||
Held-to-maturity securities(b) | 2 | 2 | 5 | 5 | 5 | ||||||||||||
Trading debt securities | 1,139 | 1,174 | 414 | 414 | 293 | ||||||||||||
Equity securities | 331 | 323 | 317 | 315 | 326 | ||||||||||||
Loans and leases held for sale | 760 | 749 | 1,007 | 1,940 | 2,542 | ||||||||||||
Portfolio loans and leases: | |||||||||||||||||
Commercial and industrial loans | 56,897 | 57,720 | 57,232 | 56,437 | 56,095 | ||||||||||||
Commercial mortgage loans | 11,310 | 11,228 | 11,020 | 10,947 | 10,748 | ||||||||||||
Commercial construction loans | 5,475 | 5,548 | 5,433 | 5,573 | 5,357 | ||||||||||||
Commercial leases | 2,670 | 2,743 | 2,704 | 2,821 | 2,850 | ||||||||||||
Total commercial loans and leases | 76,352 | 77,239 | 76,389 | 75,778 | 75,050 | ||||||||||||
Residential mortgage loans | 17,503 | 17,608 | 17,628 | 17,600 | 17,566 | ||||||||||||
Home equity | 3,911 | 3,958 | 4,039 | 4,000 | 3,906 | ||||||||||||
Indirect secured consumer loans | 16,097 | 16,484 | 16,552 | 16,646 | 17,017 | ||||||||||||
Credit card | 1,818 | 1,761 | 1,874 | 1,770 | 1,763 | ||||||||||||
Other consumer loans | 6,210 | 5,807 | 4,998 | 4,205 | 3,521 | ||||||||||||
Total consumer loans | 45,539 | 45,618 | 45,091 | 44,221 | 43,773 | ||||||||||||
Portfolio loans and leases | 121,891 | 122,857 | 121,480 | 119,999 | 118,823 | ||||||||||||
Allowance for loan and lease losses | (2,327) | (2,215) | (2,194) | (2,099) | (2,014) | ||||||||||||
Portfolio loans and leases, net | 119,564 | 120,642 | 119,286 | 117,900 | 116,809 | ||||||||||||
Bank premises and equipment | 2,275 | 2,219 | 2,187 | 2,155 | 2,118 | ||||||||||||
Operating lease equipment | 537 | 578 | 627 | 612 | 600 | ||||||||||||
Goodwill | 4,919 | 4,915 | 4,915 | 4,925 | 4,926 | ||||||||||||
Intangible assets | 146 | 157 | 169 | 181 | 194 | ||||||||||||
Servicing rights | 1,764 | 1,725 | 1,746 | 1,732 | 1,582 | ||||||||||||
Other assets | 12,973 | 12,880 | 13,459 | 14,333 | 13,694 | ||||||||||||
Total Assets | $207,276 | $208,657 | $207,452 | $205,463 | $206,782 | ||||||||||||
Liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Demand | $45,264 | $49,649 | $53,125 | $57,601 | $60,859 | ||||||||||||
Interest checking | 52,743 | 49,924 | 51,653 | 46,985 | 43,338 | ||||||||||||
Savings | 21,342 | 22,563 | 23,469 | 23,771 | 23,748 | ||||||||||||
Money market | 30,012 | 28,482 | 28,220 | 28,707 | 28,792 | ||||||||||||
Foreign office | 182 | 134 | 182 | 185 | 177 | ||||||||||||
CDs $250,000 or less | 8,833 | 6,624 | 3,809 | 2,007 | 2,125 | ||||||||||||
CDs over $250,000 | 5,752 | 5,599 | 3,232 | 2,396 | 2,135 | ||||||||||||
Total deposits | 164,128 | 162,975 | 163,690 | 161,652 | 161,174 | ||||||||||||
Federal funds purchased | 163 | 177 | 180 | 212 | 711 | ||||||||||||
Other short-term borrowings | 5,817 | 7,364 | 4,838 | 6,378 | 7,057 | ||||||||||||
Accrued taxes, interest and expenses | 1,765 | 1,577 | 1,822 | 1,589 | 1,683 | ||||||||||||
Other liabilities | 5,316 | 5,307 | 5,881 | 7,184 | 6,197 | ||||||||||||
Long-term debt | 12,278 | 12,893 | 13,714 | 11,712 | 10,990 | ||||||||||||
Total Liabilities | 189,467 | 190,293 | 190,125 | 188,727 | 187,812 | ||||||||||||
Equity | |||||||||||||||||
Common stock(c) | 2,051 | 2,051 | 2,051 | 2,051 | 2,051 | ||||||||||||
Preferred stock | 2,116 | 2,116 | 2,116 | 2,116 | 2,116 | ||||||||||||
Capital surplus | 3,708 | 3,682 | 3,684 | 3,660 | 3,636 | ||||||||||||
Retained earnings | 22,366 | 22,032 | 21,689 | 21,219 | 20,818 | ||||||||||||
Accumulated other comprehensive loss | (5,166) | (4,245) | (5,110) | (5,306) | (2,644) | ||||||||||||
Treasury stock | (7,266) | (7,272) | (7,103) | (7,004) | (7,007) | ||||||||||||
Total Equity | 17,809 | 18,364 | 17,327 | 16,736 | 18,970 | ||||||||||||
Total Liabilities and Equity | $207,276 | $208,657 | $207,452 | $205,463 | $206,782 | ||||||||||||
(a) Amortized cost | $55,399 | $55,958 | $57,530 | $57,372 | $56,140 | ||||||||||||
(b) Market values | 2 | 2 | 5 | 5 | 5 | ||||||||||||
(c) Common shares, stated value $2.22 per share (in thousands): | |||||||||||||||||
Authorized | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||||
Outstanding, excluding treasury | 680,850 | 680,537 | 683,386 | 686,343 | 686,152 | ||||||||||||
Treasury | 243,042 | 243,356 | 240,507 | 237,549 | 237,741 |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||
Consolidated Statements of Changes in Equity | ||||||||||||||||||||
$ in millions | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Three Months Ended | Year to Date | |||||||||||||||||||
June | June | June | June | |||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Total Equity, Beginning | $18,364 | $20,177 | $17,327 | $22,210 | ||||||||||||||||
Impact of cumulative effect of change in accounting principle | — | — | 37 | — | ||||||||||||||||
Net income | 601 | 562 | 1,159 | 1,056 | ||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in unrealized gains (losses): | ||||||||||||||||||||
Available-for-sale debt securities | (633) | (1,506) | (33) | (3,437) | ||||||||||||||||
Qualifying cash flow hedges | (289) | (43) | (24) | (416) | ||||||||||||||||
Change in accumulated other comprehensive income related to employee benefit plans | 1 | 1 | 1 | 2 | ||||||||||||||||
Comprehensive income (loss) | (320) | (986) | 1,103 | (2,795) | ||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||
Common stock | (228) | (209) | (457) | (418) | ||||||||||||||||
Preferred stock | (39) | (36) | (62) | (56) | ||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 32 | 24 | 62 | 29 | ||||||||||||||||
Shares acquired for treasury | — | — | (201) | — | ||||||||||||||||
Total Equity, Ending | $17,809 | $18,970 | $17,809 | $18,970 | ||||||||||||||||
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||||||||
Average Balance Sheet and Yield/Rate Analysis | For the Three Months Ended | |||||||||||||||||||||||||
$ in millions | June | March | June | |||||||||||||||||||||||
(unaudited) | 2023 | 2023 | 2022 | |||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||
Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||
Loans and leases: | ||||||||||||||||||||||||||
Commercial and industrial loans(a) | $58,152 | 6.78 | % | $58,204 | 6.41 | % | $55,466 | 3.59 | % | |||||||||||||||||
Commercial mortgage loans(a) | 11,374 | 5.92 | % | 11,121 | 5.54 | % | 10,710 | 3.34 | % | |||||||||||||||||
Commercial construction loans(a) | 5,535 | 6.80 | % | 5,507 | 6.50 | % | 5,356 | 3.69 | % | |||||||||||||||||
Commercial leases(a) | 2,703 | 3.54 | % | 2,663 | 3.48 | % | 2,840 | 2.93 | % | |||||||||||||||||
Total commercial loans and leases | 77,764 | 6.54 | % | 77,495 | 6.19 | % | 74,372 | 3.54 | % | |||||||||||||||||
Residential mortgage loans | 18,158 | 3.39 | % | 18,329 | 3.39 | % | 19,899 | 3.12 | % | |||||||||||||||||
Home equity | 3,937 | 7.39 | % | 4,006 | 6.47 | % | 3,895 | 3.81 | % | |||||||||||||||||
Indirect secured consumer loans | 16,281 | 4.19 | % | 16,598 | 3.95 | % | 17,241 | 3.17 | % | |||||||||||||||||
Credit card | 1,783 | 13.93 | % | 1,780 | 14.16 | % | 1,704 | 12.29 | % | |||||||||||||||||
Other consumer loans | 6,064 | 7.21 | % | 5,407 | 6.95 | % | 3,125 | 5.99 | % | |||||||||||||||||
Total consumer loans | 46,223 | 4.92 | % | 46,120 | 4.69 | % | 45,864 | 3.73 | % | |||||||||||||||||
Total loans and leases | 123,987 | 5.94 | % | 123,615 | 5.63 | % | 120,236 | 3.61 | % | |||||||||||||||||
Securities: | ||||||||||||||||||||||||||
Taxable securities | 55,771 | 3.07 | % | 57,110 | 3.06 | % | 53,475 | 2.73 | % | |||||||||||||||||
Tax exempt securities(a) | 1,496 | 3.19 | % | 1,404 | 3.11 | % | 1,063 | 2.47 | % | |||||||||||||||||
Other short-term investments | 7,806 | 5.24 | % | 5,278 | 4.65 | % | 9,632 | 0.60 | % | |||||||||||||||||
Total interest-earning assets | 189,060 | 5.04 | % | 187,407 | 4.80 | % | 184,406 | 3.19 | % | |||||||||||||||||
Cash and due from banks | 2,622 | 3,136 | 3,118 | |||||||||||||||||||||||
Other assets | 16,613 | 16,687 | 20,282 | |||||||||||||||||||||||
Allowance for loan and lease losses | (2,216) | (2,146) | (1,909) | |||||||||||||||||||||||
Total Assets | $206,079 | $205,084 | $205,897 | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Interest checking deposits | $50,472 | 2.81 | % | $48,717 | 2.34 | % | $44,349 | 0.15 | % | |||||||||||||||||
Savings deposits | 21,675 | 0.72 | % | 23,107 | 0.59 | % | 23,708 | 0.03 | % | |||||||||||||||||
Money market deposits | 28,913 | 1.86 | % | 28,420 | 1.20 | % | 29,284 | 0.06 | % | |||||||||||||||||
Foreign office deposits | 143 | 1.25 | % | 143 | 1.91 | % | 139 | 0.13 | % | |||||||||||||||||
CDs $250,000 or less | 7,759 | 3.48 | % | 5,173 | 2.67 | % | 2,193 | 0.09 | % | |||||||||||||||||
Total interest-bearing core deposits | 108,962 | 2.19 | % | 105,560 | 1.67 | % | 99,673 | 0.09 | % | |||||||||||||||||
CDs over $250,000 | 5,375 | 4.53 | % | 4,348 | 4.15 | % | 662 | 1.08 | % | |||||||||||||||||
Total interest-bearing deposits | 114,337 | 2.30 | % | 109,908 | 1.76 | % | 100,335 | 0.10 | % | |||||||||||||||||
Federal funds purchased | 376 | 5.11 | % | 487 | 4.55 | % | 392 | 0.82 | % | |||||||||||||||||
Securities sold under repurchase agreements | 361 | 1.17 | % | 327 | 0.73 | % | 488 | 0.08 | % | |||||||||||||||||
FHLB advances | 6,589 | 5.23 | % | 4,803 | 4.44 | % | 2,743 | 1.41 | % | |||||||||||||||||
Derivative collateral and other secured borrowings | 79 | 15.07 | % | 245 | 5.90 | % | 340 | 3.12 | % | |||||||||||||||||
Long-term debt | 12,848 | 5.12 | % | 13,510 | 4.68 | % | 11,164 | 3.09 | % | |||||||||||||||||
Total interest-bearing liabilities | 134,590 | 2.72 | % | 129,280 | 2.18 | % | 115,462 | 0.43 | % | |||||||||||||||||
Demand deposits | 46,520 | 50,737 | 62,555 | |||||||||||||||||||||||
Other liabilities | 6,625 | 7,090 | 8,632 | |||||||||||||||||||||||
Total Liabilities | 187,735 | 187,107 | 186,649 | |||||||||||||||||||||||
Total Equity | 18,344 | 17,977 | 19,248 | |||||||||||||||||||||||
Total Liabilities and Equity | $206,079 | $205,084 | $205,897 | |||||||||||||||||||||||
Ratios: | ||||||||||||||||||||||||||
Net interest margin (FTE)(b) | 3.10 | % | 3.29 | % | 2.92 | % | ||||||||||||||||||||
Net interest rate spread (FTE)(b) | 2.32 | % | 2.62 | % | 2.76 | % | ||||||||||||||||||||
Interest-bearing liabilities to interest-earning assets | 71.19 | % | 68.98 | % | 62.61 | % | ||||||||||||||||||||
(a) Average Yield/Rate of these assets are presented on an FTE basis. | ||||||||||||||||||||||||||
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27. |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Average Balance Sheet and Yield/Rate Analysis | Year to Date | ||||||||||||||||
$ in millions | June | June | |||||||||||||||
(unaudited) | 2023 | 2022 | |||||||||||||||
Average | Average | Average | Average | ||||||||||||||
Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||||
Assets | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||
Loans and leases: | |||||||||||||||||
Commercial and industrial loans(a) | $58,178 | 6.59 | % | $54,022 | 3.45 | % | |||||||||||
Commercial mortgage loans(a) | 11,248 | 5.74 | % | 10,620 | 3.17 | % | |||||||||||
Commercial construction loans(a) | 5,521 | 6.65 | % | 5,364 | 3.49 | % | |||||||||||
Commercial leases(a) | 2,683 | 3.51 | % | 2,891 | 2.89 | % | |||||||||||
Total commercial loans and leases | 77,630 | 6.37 | % | 72,897 | 3.39 | % | |||||||||||
Residential mortgage loans | 18,243 | 3.39 | % | 20,037 | 3.15 | % | |||||||||||
Home equity | 3,971 | 6.93 | % | 3,952 | 3.66 | % | |||||||||||
Indirect secured consumer loans | 16,439 | 4.07 | % | 17,189 | 3.13 | % | |||||||||||
Credit card | 1,781 | 14.04 | % | 1,698 | 12.30 | % | |||||||||||
Other consumer loans | 5,738 | 7.09 | % | 2,935 | 6.03 | % | |||||||||||
Total consumer loans | 46,172 | 4.81 | % | 45,811 | 3.71 | % | |||||||||||
Total loans and leases | 123,802 | 5.78 | % | 118,708 | 3.51 | % | |||||||||||
Securities: | |||||||||||||||||
Taxable securities | 56,437 | 3.07 | % | 47,476 | 2.77 | % | |||||||||||
Tax exempt securities(a) | 1,450 | 3.15 | % | 1,036 | 2.43 | % | |||||||||||
Other short-term investments | 6,549 | 5.00 | % | 18,919 | 0.28 | % | |||||||||||
Total interest-earning assets | 188,238 | 4.92 | % | 186,139 | 2.99 | % | |||||||||||
Cash and due from banks | 2,878 | 3,040 | |||||||||||||||
Other assets | 16,649 | 20,237 | |||||||||||||||
Allowance for loan and lease losses | (2,181) | (1,901) | |||||||||||||||
Total Assets | $205,584 | $207,515 | |||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Interest checking deposits | $49,599 | 2.58 | % | $46,492 | 0.10 | % | |||||||||||
Savings deposits | 22,387 | 0.65 | % | 23,242 | 0.02 | % | |||||||||||
Money market deposits | 28,668 | 1.53 | % | 29,771 | 0.05 | % | |||||||||||
Foreign office deposits | 143 | 1.57 | % | 132 | 0.09 | % | |||||||||||
CDs $250,000 or less | 6,473 | 3.15 | % | 2,284 | 0.10 | % | |||||||||||
Total interest-bearing core deposits | 107,270 | 1.93 | % | 101,921 | 0.07 | % | |||||||||||
CDs over $250,000 | 4,865 | 4.36 | % | 459 | 1.02 | % | |||||||||||
Total interest-bearing deposits | 112,135 | 2.00 | % | 102,380 | 0.07 | % | |||||||||||
Federal funds purchased | 431 | 4.79 | % | 326 | 0.56 | % | |||||||||||
Securities sold under repurchase agreements | 344 | 0.96 | % | 489 | 0.05 | % | |||||||||||
FHLB advances | 5,701 | 4.90 | % | 1,379 | 1.41 | % | |||||||||||
Derivative collateral and other secured borrowings | 161 | 8.14 | % | 370 | 1.61 | % | |||||||||||
Long-term debt | 13,178 | 4.90 | % | 11,165 | 3.05 | % | |||||||||||
Total interest-bearing liabilities | 131,950 | 2.46 | % | 116,109 | 0.38 | % | |||||||||||
Demand deposits | 48,617 | 63,379 | |||||||||||||||
Other liabilities | 6,855 | 7,708 | |||||||||||||||
Total Liabilities | 187,422 | 187,196 | |||||||||||||||
Total Equity | 18,162 | 20,319 | |||||||||||||||
Total Liabilities and Equity | $205,584 | $207,515 | |||||||||||||||
Ratios: | |||||||||||||||||
Net interest margin (FTE)(b) | 3.20 | % | 2.75 | % | |||||||||||||
Net interest rate spread (FTE)(b) | 2.46 | % | 2.61 | % | |||||||||||||
Interest-bearing liabilities to interest-earning assets | 70.10 | % | 62.38 | % | |||||||||||||
(a) Average Yield/Rate of these assets are presented on an FTE basis. | |||||||||||||||||
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27. | |||||||||||||||||
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Summary of Loans and Leases | |||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||
(unaudited) | June | March | December | September | June | ||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||
Average Portfolio Loans and Leases | |||||||||||||||||
Commercial loans and leases: | |||||||||||||||||
Commercial and industrial loans | $58,137 | $58,149 | $57,646 | $56,646 | $55,460 | ||||||||||||
Commercial mortgage loans | 11,373 | 11,121 | 10,898 | 10,751 | 10,710 | ||||||||||||
Commercial construction loans | 5,535 | 5,507 | 5,544 | 5,557 | 5,356 | ||||||||||||
Commercial leases | 2,700 | 2,662 | 2,736 | 2,792 | 2,839 | ||||||||||||
Total commercial loans and leases | 77,745 | 77,439 | 76,824 | 75,746 | 74,365 | ||||||||||||
Consumer loans: | |||||||||||||||||
Residential mortgage loans | 17,517 | 17,581 | 17,577 | 17,617 | 17,363 | ||||||||||||
Home equity | 3,937 | 4,005 | 4,024 | 3,956 | 3,895 | ||||||||||||
Indirect secured consumer loans | 16,281 | 16,598 | 16,536 | 16,750 | 17,241 | ||||||||||||
Credit card | 1,783 | 1,780 | 1,795 | 1,756 | 1,704 | ||||||||||||
Other consumer loans | 6,064 | 5,409 | 4,615 | 3,819 | 3,125 | ||||||||||||
Total consumer loans | 45,582 | 45,373 | 44,547 | 43,898 | 43,328 | ||||||||||||
Total average portfolio loans and leases | $123,327 | $122,812 | $121,371 | $119,644 | $117,693 | ||||||||||||
Average Loans and Leases Held for Sale | |||||||||||||||||
Commercial loans and leases held for sale | $19 | $56 | $84 | $3 | $7 | ||||||||||||
Consumer loans held for sale | 641 | 747 | 1,411 | 2,253 | 2,536 | ||||||||||||
Average loans and leases held for sale | $660 | $803 | $1,495 | $2,256 | $2,543 | ||||||||||||
Average PPP loans(a) | $37 | $66 | $158 | $283 | $549 | ||||||||||||
Average portfolio commercial and industrial loans - excluding PPP loans | 58,100 | 58,083 | 57,488 | 56,363 | 54,911 | ||||||||||||
Total average portfolio commercial and industrial loans | $58,137 | $58,149 | $57,646 | $56,646 | $55,460 | ||||||||||||
End of Period Portfolio Loans and Leases | |||||||||||||||||
Commercial loans and leases: | |||||||||||||||||
Commercial and industrial loans | $56,897 | $57,720 | $57,232 | $56,437 | $56,095 | ||||||||||||
Commercial mortgage loans | 11,310 | 11,228 | 11,020 | 10,947 | 10,748 | ||||||||||||
Commercial construction loans | 5,475 | 5,548 | 5,433 | 5,573 | 5,357 | ||||||||||||
Commercial leases | 2,670 | 2,743 | 2,704 | 2,821 | 2,850 | ||||||||||||
Total commercial loans and leases | 76,352 | 77,239 | 76,389 | 75,778 | 75,050 | ||||||||||||
Consumer loans: | |||||||||||||||||
Residential mortgage loans | 17,503 | 17,608 | 17,628 | 17,600 | 17,566 | ||||||||||||
Home equity | 3,911 | 3,958 | 4,039 | 4,000 | 3,906 | ||||||||||||
Indirect secured consumer loans | 16,097 | 16,484 | 16,552 | 16,646 | 17,017 | ||||||||||||
Credit card | 1,818 | 1,761 | 1,874 | 1,770 | 1,763 | ||||||||||||
Other consumer loans | 6,210 | 5,807 | 4,998 | 4,205 | 3,521 | ||||||||||||
Total consumer loans | 45,539 | 45,618 | 45,091 | 44,221 | 43,773 | ||||||||||||
Total portfolio loans and leases | $121,891 | $122,857 | $121,480 | $119,999 | $118,823 | ||||||||||||
End of Period Loans and Leases Held for Sale | |||||||||||||||||
Commercial loans and leases held for sale | $32 | $24 | $73 | $69 | $4 | ||||||||||||
Consumer loans held for sale | 728 | 725 | 934 | 1,871 | 2,538 | ||||||||||||
Loans and leases held for sale | $760 | $749 | $1,007 | $1,940 | $2,542 | ||||||||||||
Operating lease equipment | $537 | $578 | $627 | $612 | $600 | ||||||||||||
Loans and Leases Serviced for Others(b) | |||||||||||||||||
Commercial and industrial loans | $1,122 | $1,090 | $1,109 | $1,067 | $994 | ||||||||||||
Commercial mortgage loans | 748 | 696 | 614 | 630 | 601 | ||||||||||||
Commercial construction loans | 260 | 386 | 406 | 421 | 418 | ||||||||||||
Commercial leases | 642 | 588 | 581 | 567 | 566 | ||||||||||||
Residential mortgage loans | 102,817 | 103,399 | 103,154 | 102,696 | 100,519 | ||||||||||||
Other consumer loans | 853 | 881 | 912 | 941 | 974 | ||||||||||||
Total loans and leases serviced for others | 106,442 | 107,040 | 106,776 | 106,322 | 104,072 | ||||||||||||
Total loans and leases owned or serviced | $229,630 | $231,224 | $229,890 | $228,873 | $226,037 | ||||||||||||
End of period PPP loans(a) | $29 | $48 | $94 | $210 | $371 | ||||||||||||
End of period portfolio commercial and industrial loans - excluding PPP loans | 56,868 | 57,672 | 57,138 | 56,227 | 55,724 | ||||||||||||
Total end of period portfolio commercial and industrial loans | $56,897 | $57,720 | $57,232 | $56,437 | $56,095 |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||
Regulatory Capital | |||||||||||||||||||||||
$ in millions | As of | ||||||||||||||||||||||
(unaudited) | June | March | December | September | June | ||||||||||||||||||
2023(a) | 2023 | 2022 | 2022 | 2022 | |||||||||||||||||||
Regulatory Capital(b) | |||||||||||||||||||||||
CET1 capital | $16,097 | $15,727 | $15,670 | $15,264 | $14,827 | ||||||||||||||||||
Additional tier 1 capital | 2,116 | 2,116 | 2,116 | 2,116 | 2,116 | ||||||||||||||||||
Tier 1 capital | 18,213 | 17,843 | 17,786 | 17,380 | 16,943 | ||||||||||||||||||
Tier 2 capital | 3,554 | 3,588 | 3,820 | 3,743 | 3,713 | ||||||||||||||||||
Total regulatory capital | $21,767 | $21,431 | $21,606 | $21,123 | $20,656 | ||||||||||||||||||
Risk-weighted assets | $168,925 | $169,510 | $168,909 | $167,060 | $165,659 | ||||||||||||||||||
Ratios | |||||||||||||||||||||||
Average total Bancorp shareholders' equity as a percent of average assets | 8.90 | % | 8.77 | % | 8.18 | % | 9.13 | % | 9.35 | % | |||||||||||||
Regulatory Capital Ratios(b) | |||||||||||||||||||||||
Fifth Third Bancorp | |||||||||||||||||||||||
CET1 capital | 9.53 | % | 9.28 | % | 9.28 | % | 9.14 | % | 8.95 | % | |||||||||||||
Tier 1 risk-based capital | 10.78 | % | 10.53 | % | 10.53 | % | 10.40 | % | 10.23 | % | |||||||||||||
Total risk-based capital | 12.89 | % | 12.64 | % | 12.79 | % | 12.64 | % | 12.47 | % | |||||||||||||
Leverage | 8.81 | % | 8.67 | % | 8.56 | % | 8.44 | % | 8.30 | % | |||||||||||||
Fifth Third Bank, National Association | |||||||||||||||||||||||
Tier 1 risk-based capital | 11.31 | % | 11.63 | % | 11.31 | % | 10.94 | % | 10.58 | % | |||||||||||||
Total risk-based capital | 12.73 | % | 13.05 | % | 12.81 | % | 12.41 | % | 12.01 | % | |||||||||||||
Leverage | 9.26 | % | 9.62 | % | 9.23 | % | 8.91 | % | 8.61 | % |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Summary of Credit Loss Experience | |||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||
(unaudited) | June | March | December | September | June | ||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||
Average portfolio loans and leases: | |||||||||||||||||
Commercial and industrial loans | $58,137 | $58,149 | $57,646 | $56,646 | $55,460 | ||||||||||||
Commercial mortgage loans | 11,373 | 11,121 | 10,898 | 10,751 | 10,710 | ||||||||||||
Commercial construction loans | 5,535 | 5,507 | 5,544 | 5,557 | 5,356 | ||||||||||||
Commercial leases | 2,700 | 2,662 | 2,736 | 2,792 | 2,839 | ||||||||||||
Total commercial loans and leases | 77,745 | 77,439 | 76,824 | 75,746 | 74,365 | ||||||||||||
Residential mortgage loans | 17,517 | 17,581 | 17,577 | 17,617 | 17,363 | ||||||||||||
Home equity | 3,937 | 4,005 | 4,024 | 3,956 | 3,895 | ||||||||||||
Indirect secured consumer loans | 16,281 | 16,598 | 16,536 | 16,750 | 17,241 | ||||||||||||
Credit card | 1,783 | 1,780 | 1,795 | 1,756 | 1,704 | ||||||||||||
Other consumer loans | 6,064 | 5,409 | 4,615 | 3,819 | 3,125 | ||||||||||||
Total consumer loans | 45,582 | 45,373 | 44,547 | 43,898 | 43,328 | ||||||||||||
Total average portfolio loans and leases | $123,327 | $122,812 | $121,371 | $119,644 | $117,693 | ||||||||||||
Losses charged-off: | |||||||||||||||||
Commercial and industrial loans | ($35) | ($32) | ($30) | ($46) | ($34) | ||||||||||||
Commercial mortgage loans | — | — | — | — | — | ||||||||||||
Commercial construction loans | — | (1) | — | — | (3) | ||||||||||||
Commercial leases | — | — | (6) | (1) | — | ||||||||||||
Total commercial loans and leases | (35) | (33) | (36) | (47) | (37) | ||||||||||||
Residential mortgage loans | (1) | (1) | (1) | (1) | — | ||||||||||||
Home equity | (2) | (1) | (2) | (2) | (3) | ||||||||||||
Indirect secured consumer loans | (25) | (23) | (21) | (18) | (14) | ||||||||||||
Credit card | (21) | (20) | (17) | (15) | (18) | ||||||||||||
Other consumer loans | (37) | (32) | (26) | (21) | (18) | ||||||||||||
Total consumer loans | (86) | (77) | (67) | (57) | (53) | ||||||||||||
Total losses charged-off | ($121) | ($110) | ($103) | ($104) | ($90) | ||||||||||||
Recoveries of losses previously charged-off: | |||||||||||||||||
Commercial and industrial loans | $3 | $2 | $10 | $12 | $1 | ||||||||||||
Commercial mortgage loans | — | — | — | — | — | ||||||||||||
Commercial construction loans | — | — | — | 1 | — | ||||||||||||
Commercial leases | — | — | 1 | 2 | — | ||||||||||||
Total commercial loans and leases | 3 | 2 | 11 | 15 | 1 | ||||||||||||
Residential mortgage loans | 1 | 1 | — | 2 | 1 | ||||||||||||
Home equity | 1 | 1 | 2 | 3 | 3 | ||||||||||||
Indirect secured consumer loans | 9 | 9 | 7 | 8 | 9 | ||||||||||||
Credit card | 5 | 5 | 4 | 3 | 4 | ||||||||||||
Other consumer loans | 12 | 14 | 11 | 11 | 10 | ||||||||||||
Total consumer loans | 28 | 30 | 24 | 27 | 27 | ||||||||||||
Total recoveries of losses previously charged-off | $31 | $32 | $35 | $42 | $28 | ||||||||||||
Net losses charged-off: | |||||||||||||||||
Commercial and industrial loans | ($32) | ($30) | ($20) | ($34) | ($33) | ||||||||||||
Commercial mortgage loans | — | — | — | — | — | ||||||||||||
Commercial construction loans | — | (1) | — | 1 | (3) | ||||||||||||
Commercial leases | — | — | (5) | 1 | — | ||||||||||||
Total commercial loans and leases | (32) | (31) | (25) | (32) | (36) | ||||||||||||
Residential mortgage loans | — | — | (1) | 1 | 1 | ||||||||||||
Home equity | (1) | — | — | 1 | — | ||||||||||||
Indirect secured consumer loans | (16) | (14) | (14) | (10) | (5) | ||||||||||||
Credit card | (16) | (15) | (13) | (12) | (14) | ||||||||||||
Other consumer loans | (25) | (18) | (15) | (10) | (8) | ||||||||||||
Total consumer loans | (58) | (47) | (43) | (30) | (26) | ||||||||||||
Total net losses charged-off | ($90) | ($78) | ($68) | ($62) | ($62) | ||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized): | |||||||||||||||||
Commercial and industrial loans | 0.22 | % | 0.21 | % | 0.14 | % | 0.24 | % | 0.24 | % | |||||||
Commercial mortgage loans | 0.01 | % | 0.01 | % | — | (0.01 | %) | — | |||||||||
Commercial construction loans | (0.01 | %) | 0.10 | % | — | (0.08 | %) | 0.23 | % | ||||||||
Commercial leases | (0.03 | %) | (0.04 | %) | 0.70 | % | (0.12 | %) | (0.03 | %) | |||||||
Total commercial loans and leases | 0.16 | % | 0.17 | % | 0.13 | % | 0.17 | % | 0.19 | % | |||||||
Residential mortgage loans | — | — | 0.01 | % | (0.02 | %) | (0.02 | %) | |||||||||
Home equity | 0.06 | % | (0.04 | %) | 0.02 | % | (0.08 | %) | (0.06 | %) | |||||||
Indirect secured consumer loans | 0.38 | % | 0.34 | % | 0.32 | % | 0.24 | % | 0.13 | % | |||||||
Credit card | 3.61 | % | 3.43 | % | 2.85 | % | 2.69 | % | 3.26 | % | |||||||
Other consumer loans | 1.63 | % | 1.41 | % | 1.33 | % | 1.10 | % | 1.04 | % | |||||||
Total consumer loans | 0.50 | % | 0.42 | % | 0.38 | % | 0.28 | % | 0.24 | % | |||||||
Total net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.29 | % | 0.26 | % | 0.22 | % | 0.21 | % | 0.21 | % |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||
Asset Quality | ||||||||||||||||||||
$ in millions | For the Three Months Ended | |||||||||||||||||||
(unaudited) | June | March | December | September | June | |||||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | ||||||||||||||||
Allowance for Credit Losses | ||||||||||||||||||||
Allowance for loan and lease losses, beginning | $2,215 | $2,194 | $2,099 | $2,014 | $1,908 | |||||||||||||||
Impact of adoption of ASU 2022-02 | — | (49) | — | — | — | |||||||||||||||
Total net losses charged-off | (90) | (78) | (68) | (62) | (62) | |||||||||||||||
Provision for loan and lease losses | 202 | 148 | 163 | 147 | 168 | |||||||||||||||
Allowance for loan and lease losses, ending | $2,327 | $2,215 | $2,194 | $2,099 | $2,014 | |||||||||||||||
Reserve for unfunded commitments, beginning | $232 | $216 | $199 | $188 | $177 | |||||||||||||||
(Benefit from) provision for the reserve for unfunded commitments | (25) | 16 | 17 | 11 | 11 | |||||||||||||||
Reserve for unfunded commitments, ending | $207 | $232 | $216 | $199 | $188 | |||||||||||||||
Components of allowance for credit losses: | ||||||||||||||||||||
Allowance for loan and lease losses | $2,327 | $2,215 | $2,194 | $2,099 | $2,014 | |||||||||||||||
Reserve for unfunded commitments | 207 | 232 | 216 | 199 | 188 | |||||||||||||||
Total allowance for credit losses | $2,534 | $2,447 | $2,410 | $2,298 | $2,202 | |||||||||||||||
As of | ||||||||||||||||||||
June | March | December | September | June | ||||||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | ||||||||||||||||
Nonperforming Assets and Delinquent Loans | ||||||||||||||||||||
Nonaccrual portfolio loans and leases: | ||||||||||||||||||||
Commercial and industrial loans | $322 | $280 | $215 | $254 | $268 | |||||||||||||||
Commercial mortgage loans | 22 | 44 | 40 | 40 | 45 | |||||||||||||||
Commercial construction loans | — | 5 | 8 | 2 | 4 | |||||||||||||||
Commercial leases | 1 | 5 | — | 2 | 2 | |||||||||||||||
Residential mortgage loans | 137 | 129 | 124 | 115 | 105 | |||||||||||||||
Home equity | 61 | 68 | 67 | 68 | 72 | |||||||||||||||
Indirect secured consumer loans | 23 | 27 | 29 | 15 | 18 | |||||||||||||||
Credit card | 30 | 29 | 27 | 23 | 23 | |||||||||||||||
Other consumer loans | 33 | 6 | 5 | 3 | 2 | |||||||||||||||
Total nonaccrual portfolio loans and leases | 629 | 593 | 515 | 522 | 539 | |||||||||||||||
Repossessed property | 8 | 8 | 6 | 6 | 6 | |||||||||||||||
OREO | 24 | 22 | 18 | 18 | 14 | |||||||||||||||
Total nonperforming portfolio loans and leases and OREO | 661 | 623 | 539 | 546 | 559 | |||||||||||||||
Nonaccrual loans held for sale | 2 | — | — | — | — | |||||||||||||||
Total nonperforming assets | $663 | $623 | $539 | $546 | $559 | |||||||||||||||
Loans and leases 90 days past due (accrual): | ||||||||||||||||||||
Commercial and industrial loans | $6 | $17 | $11 | $16 | $6 | |||||||||||||||
Commercial mortgage loans | 20 | — | — | — | — | |||||||||||||||
Commercial leases | — | — | 2 | 10 | 1 | |||||||||||||||
Total commercial loans and leases | 26 | 17 | 13 | 26 | 7 | |||||||||||||||
Residential mortgage loans(c) | 7 | 9 | 7 | 7 | 8 | |||||||||||||||
Home equity | 1 | 1 | 1 | 1 | 2 | |||||||||||||||
Indirect secured consumer loans | — | — | — | 10 | 8 | |||||||||||||||
Credit card | 17 | 18 | 18 | 14 | 13 | |||||||||||||||
Other consumer loans | — | 1 | 1 | 1 | 1 | |||||||||||||||
Total consumer loans | 25 | 29 | 27 | 33 | 32 | |||||||||||||||
Total loans and leases 90 days past due (accrual)(b) | $51 | $46 | $40 | $59 | $39 | |||||||||||||||
Ratios | ||||||||||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.29 | % | 0.26 | % | 0.22 | % | 0.21 | % | 0.21 | % | ||||||||||
Allowance for credit losses: | ||||||||||||||||||||
As a percent of portfolio loans and leases | 2.08 | % | 1.99 | % | 1.98 | % | 1.91 | % | 1.85 | % | ||||||||||
As a percent of nonperforming portfolio loans and leases(a) | 403 | % | 413 | % | 468 | % | 440 | % | 408 | % | ||||||||||
As a percent of nonperforming portfolio assets(a) | 383 | % | 393 | % | 447 | % | 420 | % | 394 | % | ||||||||||
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases(a) | 0.52 | % | 0.48 | % | 0.42 | % | 0.44 | % | 0.45 | % | ||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a) | 0.54 | % | 0.51 | % | 0.44 | % | 0.46 | % | 0.47 | % | ||||||||||
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property | 0.54 | % | 0.50 | % | 0.44 | % | 0.45 | % | 0.46 | % | ||||||||||
(a) Excludes nonaccrual loans held for sale. | ||||||||||||||||||||
(b) Excludes loans held for sale. | ||||||||||||||||||||
(c) Excludes government guaranteed residential mortgage loans. |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||
Non-GAAP Reconciliation | |||||||||||||||||||||||
$ and shares in millions | As of and For the Three Months Ended | ||||||||||||||||||||||
(unaudited) | June | March | December | September | June | ||||||||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||||||||
Net interest income | $1,457 | $1,517 | $1,577 | $1,498 | $1,339 | ||||||||||||||||||
Add: Taxable equivalent adjustment | 6 | 5 | 5 | 4 | 3 | ||||||||||||||||||
Net interest income (FTE) (a) | 1,463 | 1,522 | 1,582 | 1,502 | 1,342 | ||||||||||||||||||
Net interest income (annualized) (b) | 5,844 | 6,152 | 6,257 | 5,943 | 5,371 | ||||||||||||||||||
Net interest income (FTE) (annualized) (c) | 5,868 | 6,173 | 6,276 | 5,959 | 5,383 | ||||||||||||||||||
Interest income | 2,370 | 2,213 | 2,075 | 1,760 | 1,464 | ||||||||||||||||||
Add: Taxable equivalent adjustment | 6 | 5 | 5 | 4 | 3 | ||||||||||||||||||
Interest income (FTE) | 2,376 | 2,218 | 2,080 | 1,764 | 1,467 | ||||||||||||||||||
Interest income (FTE) (annualized) (d) | 9,530 | 8,995 | 8,252 | 6,998 | 5,884 | ||||||||||||||||||
Interest expense (annualized) (e) | 3,662 | 2,823 | 1,976 | 1,039 | 501 | ||||||||||||||||||
Average interest-earning assets (f) | 189,060 | 187,407 | 187,640 | 185,378 | 184,406 | ||||||||||||||||||
Average interest-bearing liabilities (g) | 134,590 | 129,280 | 126,390 | 119,773 | 115,462 | ||||||||||||||||||
Net interest margin (b) / (f) | 3.09 | % | 3.28 | % | 3.33 | % | 3.21 | % | 2.91 | % | |||||||||||||
Net interest margin (FTE) (c) / (f) | 3.10 | % | 3.29 | % | 3.35 | % | 3.22 | % | 2.92 | % | |||||||||||||
Net interest rate spread (FTE) (d) / (f) - (e) / (g) | 2.32 | % | 2.62 | % | 2.84 | % | 2.91 | % | 2.76 | % | |||||||||||||
Income before income taxes | $775 | $718 | $914 | $845 | $724 | ||||||||||||||||||
Add: Taxable equivalent adjustment | 6 | 5 | 5 | 4 | 3 | ||||||||||||||||||
Income before income taxes (FTE) | 781 | 723 | 919 | 849 | 727 | ||||||||||||||||||
Net income available to common shareholders | 562 | 535 | 699 | 631 | 526 | ||||||||||||||||||
Add: Intangible amortization, net of tax | 8 | 9 | 10 | 10 | 9 | ||||||||||||||||||
Tangible net income available to common shareholders (h) | 570 | 544 | 709 | 641 | 535 | ||||||||||||||||||
Tangible net income available to common shareholders (annualized) (i) | 2,286 | 2,206 | 2,813 | 2,543 | 2,146 | ||||||||||||||||||
Average Bancorp shareholders’ equity | 18,344 | 17,977 | 16,857 | 18,864 | 19,248 | ||||||||||||||||||
Less: | Average preferred stock | (2,116) | (2,116) | (2,116) | (2,116) | (2,116) | |||||||||||||||||
Average goodwill | (4,919) | (4,915) | (4,925) | (4,926) | (4,744) | ||||||||||||||||||
Average intangible assets | (152) | (163) | (176) | (188) | (158) | ||||||||||||||||||
Average tangible common equity, including AOCI (j) | 11,157 | 10,783 | 9,640 | 11,634 | 12,230 | ||||||||||||||||||
Less: | Average AOCI | 4,480 | 4,442 | 5,386 | 3,037 | 2,397 | |||||||||||||||||
Average tangible common equity, excluding AOCI (k) | 15,637 | 15,225 | 15,026 | 14,671 | 14,627 | ||||||||||||||||||
Total Bancorp shareholders’ equity | 17,809 | 18,364 | 17,327 | 16,736 | 18,970 | ||||||||||||||||||
Less: | Preferred stock | (2,116) | (2,116) | (2,116) | (2,116) | (2,116) | |||||||||||||||||
Goodwill | (4,919) | (4,915) | (4,915) | (4,925) | (4,926) | ||||||||||||||||||
Intangible assets | (146) | (157) | (169) | (181) | (194) | ||||||||||||||||||
Tangible common equity, including AOCI (l) | 10,628 | 11,176 | 10,127 | 9,514 | 11,734 | ||||||||||||||||||
Less: | AOCI | 5,166 | 4,245 | 5,110 | 5,306 | 2,644 | |||||||||||||||||
Tangible common equity, excluding AOCI (m) | 15,794 | 15,421 | 15,237 | 14,820 | 14,378 | ||||||||||||||||||
Add: | Preferred stock | 2,116 | 2,116 | 2,116 | 2,116 | 2,116 | |||||||||||||||||
Tangible equity (n) | 17,910 | 17,537 | 17,353 | 16,936 | 16,494 | ||||||||||||||||||
Total assets | 207,276 | 208,657 | 207,452 | 205,463 | 206,782 | ||||||||||||||||||
Less: | Goodwill | (4,919) | (4,915) | (4,915) | (4,925) | (4,926) | |||||||||||||||||
Intangible assets | (146) | (157) | (169) | (181) | (194) | ||||||||||||||||||
Tangible assets, including AOCI (o) | 202,211 | 203,585 | 202,368 | 200,357 | 201,662 | ||||||||||||||||||
Less: | AOCI, before tax | 6,539 | 5,373 | 6,468 | 6,716 | 3,347 | |||||||||||||||||
Tangible assets, excluding AOCI (p) | $208,750 | $208,958 | $208,836 | $207,073 | $205,009 | ||||||||||||||||||
Common shares outstanding (q) | 681 | 681 | 683 | 686 | 686 | ||||||||||||||||||
Tangible equity (n) / (p) | 8.58 | % | 8.39 | % | 8.31 | % | 8.18 | % | 8.05 | % | |||||||||||||
Tangible common equity (excluding AOCI) (m) / (p) | 7.57 | % | 7.38 | % | 7.30 | % | 7.16 | % | 7.01 | % | |||||||||||||
Tangible common equity (including AOCI) (l) / (o) | 5.26 | % | 5.49 | % | 5.00 | % | 4.75 | % | 5.82 | % | |||||||||||||
Tangible book value per share (including AOCI) (l) / (q) | $15.61 | $16.41 | $14.83 | $13.87 | $17.10 | ||||||||||||||||||
Tangible book value per share (excluding AOCI) (m) / (q) | $23.19 | $22.64 | $22.31 | $21.60 | $20.96 | ||||||||||||||||||
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||
Non-GAAP Reconciliation | |||||||||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||||||||
(unaudited) | June | March | June | ||||||||||||||||||||
2023 | 2023 | 2022 | |||||||||||||||||||||
Net income (r) | $601 | $558 | $562 | ||||||||||||||||||||
Net income (annualized) (s) | 2,411 | 2,263 | 2,254 | ||||||||||||||||||||
Adjustments (pre-tax items) | |||||||||||||||||||||||
Valuation of Visa total return swap | 30 | 31 | 18 | ||||||||||||||||||||
Net disposition charges/(gain) | — | — | 6 | ||||||||||||||||||||
Restructuring severance expense | 12 | 12 | — | ||||||||||||||||||||
Adjustments, after-tax (t)(a) | 32 | 33 | 19 | ||||||||||||||||||||
Noninterest income (u) | 726 | 696 | 676 | ||||||||||||||||||||
Valuation of Visa total return swap | 30 | 31 | 18 | ||||||||||||||||||||
Net disposition charges/(gain) | — | — | 6 | ||||||||||||||||||||
Adjusted noninterest income (v) | 756 | 727 | 700 | ||||||||||||||||||||
Noninterest expense (w) | 1,231 | 1,331 | 1,112 | ||||||||||||||||||||
Restructuring severance expense | (12) | (12) | — | ||||||||||||||||||||
Adjusted noninterest expense (x) | 1,219 | 1,319 | 1,112 | ||||||||||||||||||||
Adjusted net income (r) + (t) | 633 | 591 | 581 | ||||||||||||||||||||
Adjusted net income (annualized) (y) | 2,539 | 2,397 | 2,330 | ||||||||||||||||||||
Adjusted tangible net income available to common shareholders (h) + (t) | 602 | 577 | 554 | ||||||||||||||||||||
Adjusted tangible net income available to common shareholders (annualized) (z) | 2,415 | 2,340 | 2,222 | ||||||||||||||||||||
Average assets (aa) | $206,079 | $205,084 | $205,897 | ||||||||||||||||||||
Return on average tangible common equity (i) / (j) | 20.5 | % | 20.5 | % | 17.5 | % | |||||||||||||||||
Return on average tangible common equity excluding AOCI (i) / (k) | 14.6 | % | 14.5 | % | 14.7 | % | |||||||||||||||||
Adjusted return on average tangible common equity, including AOCI (z) / (j) | 21.6 | % | 21.7 | % | 18.2 | % | |||||||||||||||||
Adjusted return on average tangible common equity, excluding AOCI (z) / (k) | 15.4 | % | 15.4 | % | 15.2 | % | |||||||||||||||||
Return on average assets (s) / (aa) | 1.17 | % | 1.10 | % | 1.09 | % | |||||||||||||||||
Adjusted return on average assets (y) / (aa) | 1.23 | % | 1.17 | % | 1.13 | % | |||||||||||||||||
Efficiency ratio (FTE) (w) / [(a) + (u)] | 56.2 | % | 60.0 | % | 55.1 | % | |||||||||||||||||
Adjusted efficiency ratio (x) / [(a) + (v)] | 54.9 | % | 58.6 | % | 54.5 | % | |||||||||||||||||
Total revenue (FTE) (a) + (u) | $2,189 | $2,218 | $2,018 | ||||||||||||||||||||
Adjusted total revenue (FTE) (a) + (v) | $2,219 | $2,249 | $2,042 | ||||||||||||||||||||
Pre-provision net revenue (PPNR) (a) + (u) - (w) | $958 | $887 | $906 | ||||||||||||||||||||
Adjusted pre-provision net revenue (PPNR) (a) + (v) - (x) | $1,000 | $930 | $930 | ||||||||||||||||||||
Totals may not foot due to rounding; (a) Assumes a 23% tax rate | |||||||||||||||||||||||
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||
Segment Presentation | ||||||||||||||||||||
$ in millions | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the three months ended June 30, 2023 | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||
Net interest income (FTE)(a) | $1,025 | $1,370 | $95 | $(1,027) | $1,463 | |||||||||||||||
(Provision for) benefit from credit losses | 9 | (65) | — | (121) | (177) | |||||||||||||||
Net interest income after (provision for) benefit from credit losses | 1,034 | 1,305 | 95 | (1,148) | 1,286 | |||||||||||||||
Noninterest income | 336 | 271 | 137 | (18) | 726 | |||||||||||||||
Noninterest expense | (486) | (632) | (139) | 26 | (1,231) | |||||||||||||||
Income (loss) before income taxes | 884 | 944 | 93 | (1,140) | 781 | |||||||||||||||
Applicable income tax (expense) benefit(a) | (173) | (198) | (20) | 211 | (180) | |||||||||||||||
Net income (loss) | $711 | $746 | $73 | $(929) | $601 | |||||||||||||||
For the three months ended March 31, 2023 | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||
Net interest income (FTE)(a) | $980 | $1,257 | $101 | $(816) | $1,522 | |||||||||||||||
Provision for credit losses | (46) | (51) | — | (67) | (164) | |||||||||||||||
Net interest income after provision for credit losses | 934 | 1,206 | 101 | (883) | 1,358 | |||||||||||||||
Noninterest income | 336 | 273 | 138 | (51) | 696 | |||||||||||||||
Noninterest expense | (551) | (645) | (146) | 11 | (1,331) | |||||||||||||||
Income (loss) before income taxes | 719 | 834 | 93 | (923) | 723 | |||||||||||||||
Applicable income tax (expense) benefit(a) | (139) | (175) | (19) | 168 | (165) | |||||||||||||||
Net income (loss) | $580 | $659 | $74 | $(755) | $558 | |||||||||||||||
For the three months ended December 31, 2022 | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||
Net interest income (FTE)(a) | $876 | $1,151 | $94 | $(539) | $1,582 | |||||||||||||||
(Provision for) benefit from credit losses | 11 | (46) | — | (145) | (180) | |||||||||||||||
Net interest income after (provision for) benefit from credit losses | 887 | 1,105 | 94 | (684) | 1,402 | |||||||||||||||
Noninterest income | 349 | 268 | 133 | (15) | 735 | |||||||||||||||
Noninterest expense | (464) | (602) | (134) | (18) | (1,218) | |||||||||||||||
Income (loss) before income taxes | 772 | 771 | 93 | (717) | 919 | |||||||||||||||
Applicable income tax (expense) benefit(a) | (150) | (162) | (19) | 149 | (182) | |||||||||||||||
Net income (loss) | $622 | $609 | $74 | $(568) | $737 | |||||||||||||||
For the three months ended September 30, 2022 | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||
Net interest income (FTE)(a) | $596 | $833 | $79 | $(6) | $1,502 | |||||||||||||||
(Provision for) benefit from credit losses | 2 | (34) | — | (126) | (158) | |||||||||||||||
Net interest income after (provision for) benefit from credit losses | 598 | 799 | 79 | (132) | 1,344 | |||||||||||||||
Noninterest income | 298 | 286 | 134 | (46) | 672 | |||||||||||||||
Noninterest expense | (440) | (608) | (142) | 23 | (1,167) | |||||||||||||||
Income (loss) before income taxes | 456 | 477 | 71 | (155) | 849 | |||||||||||||||
Applicable income tax (expense) benefit(a) | (87) | (100) | (15) | 6 | (196) | |||||||||||||||
Net income (loss) | $369 | $377 | $56 | $(149) | $653 | |||||||||||||||
For the three months ended June 30, 2022 | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||
Net interest income (FTE)(a) | $555 | $631 | $53 | $103 | $1,342 | |||||||||||||||
Provision for credit losses | (80) | (29) | — | (70) | (179) | |||||||||||||||
Net interest income after provision for credit losses | 475 | 602 | 53 | 33 | 1,163 | |||||||||||||||
Noninterest income | 356 | 241 | 132 | (53) | 676 | |||||||||||||||
Noninterest expense | (442) | (580) | (137) | 47 | (1,112) | |||||||||||||||
Income before income taxes | 389 | 263 | 48 | 27 | 727 | |||||||||||||||
Applicable income tax expense(a) | (72) | (55) | (10) | (28) | (165) | |||||||||||||||
Net income (loss) | $317 | $208 | $38 | $(1) | $562 | |||||||||||||||
(a) Includes taxable equivalent adjustments of $6 million for the three months ended June 30, 2023, $5 million for the three months ended March 31, 2023 and December 31, 2022, $4 million for the three months ended September 30, 2022 and $3 million for the three months ended June 30, 2022. | ||||||||||||||||||||