Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Q1 2025 Earnings Presentation
45 slides from Fifth Third Bancorp's earnings presentation, Apr 17, 2025
Slide 1: Fifth Third Bancorp 1Q25 Earnings Presentation
Fifth Third Bancorp 1Q25 Earnings Presentation April 17, 2025 Refer to earnings release dated April 17, 2025 for further information. © Fifth Third Bancorp | All Rights Reserved
Slide 2: Cautionary statement
Cautionary statement This presentation contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3
Slide 3: Key Messages
Key Messages Resilient balance sheet delivered stable NII sequentially Net interest margin expanded for the 5th consecutive quarter Average loans up 3% sequentially and year-over-year due to growth in commercial and consumer lending Disciplined expense management; adjusted efficiency ratio1 of 60.5%
Slide 4: 1Q25 highlights
1Q25 highlights Reported1 Adjusted1 • Continued momentum in net interest income and net interest margin due to loan growth, deposit rate EPS $0.71 $0.73 management and fixed-rate asset re-pricing ROA 0.99% 1.02% • Interest-bearing liabilities costs down 20 bps sequentially ROE 10.8% 11.2% • Strong f
Slide 5: Net interest income
Net interest income1 $1.44 $1.44 $1.44 $1.44 4Q24 to 1Q25 adjusted NII & NIM walk $1.43 $1.43 NII $ in millions; NIM change in bps $1.40 3.03% $1.39 Total net interest income; $ billions $1.39 $1.39 NII NIM 4Q24 $1,443 2.97% 2.97% Net market rate impact 7 1 Loan balances / mix 22 — 2.90% Excess cash
Slide 6: Noninterest income
Noninterest income $ millions 1Q25 PQ YoY Year-over-year • Wealth and asset management revenue up 7% due to AUM Wealth and asset management revenue $172 6% 7% growth Commercial payments revenue 153 (1)% 6% • Commercial payments revenue up 6% driven primarily by net fee equivalent growth Consumer ban
Slide 7: Noninterest expense
Noninterest expense Year-over-year $ millions 1Q25 PQ YoY • Adjusted noninterest expense1 stable with 1Q24 Compensation and benefits $750 13% —% • Adjusted efficiency ratio1 of 60.5%, improved 110 bps Technology and communications 123 —% 5% compared to 1Q24 Net occupancy expense 87 (1)% —% Quarter-o
Slide 8: Loans
Loans Average loan & lease balances Loan portfolio composition $ in billions; loan & lease balances excluding HFS Average loans $117.3 $116.9 $116.8 $117.9 $121.3 Credit card and $46.6 Solar energy other $44.5 $44.7 $45.1 $45.9 installation 6.36% 6.43% 6.48% 6.18% 3% 3% 6.06% Home equity $72.8 $72.2
Slide 9: Deposits
Deposits Average deposit balances Total Deposit Mix $ in billions $ in billions $168.1 $167.2 $167.2 $167.2 $164.2 Time Deposits, 8% $162.6 $162.4 $163.7 $164.7 $161.8 Demand, 24% 3.01% 3.04% 3.03% 2.68% $164B 2.42% Average Money Market and Deposits Savings, 33% 1Q24 2Q24 3Q24 4Q24 1Q25 Interest che
Slide 10: Credit quality overview
Credit quality overview 1Q24 2Q24 3Q24 4Q24 1Q25 NPL ratio 0.61% 0.52% 0.59% 0.69% 0.79% NPA ratio1 0.64% 0.55% 0.62% 0.71% 0.81% 30-89 days past due as a % of portfolio loans and leases 0.29% 0.26% 0.24% 0.25% 0.31% NCO ratio 0.38% 0.49% 0.48% 0.46% 0.46% ACL ratio as a % of portfolio loans and lea
Slide 11: Historical net charge-off and NPA ratios
Historical net charge-off and NPA ratios Net charge-off ratio Non-performing assets ratio2 10-year average excluding COVID1 10-year average excluding COVID1 1.00% 1.00% 1Q25 0.81% 1Q25 0.50% 0.46% 0.50% 0.00% 0.00% 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 1Q23 1Q24 1Q25 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20
Slide 12: Strong liquidity and capital position
Strong liquidity and capital position Capital position Common equity tier 1 ratio1 ~29 bps 10.57% ~1 bps 10.45% (~5 bps) (~14 bps) (~15 bps) (~8 bps) 4Q24 Net income RWA Share Common Modified CECL Other 1Q25 to common repurchases dividends transition Liquidity position $ in billions Liquidity Source
Slide 13: Current expectations: FY 2025 vs FY 2024
Current expectations FY 2025 compared to FY 2024 Avg. loans & leases Up 4 – 5% (Including HFS) Net interest income1 Up 5 – 6% (FY24 baseline: $5.658 billion) assumes 12/31/25 Fed funds rate of 3.75% Noninterest income1 Up 1 – 3% (FY24 baseline: $2.973 billion; excludes securities g/l) Noninterest ex
Slide 14: Current expectations: 2Q25 vs 1Q25
Current expectations 2Q25 compared to 1Q25 Avg. loans & leases Up ~1% (Including HFS) Net interest income1 Up 2 - 3% (1Q25 baseline: $1.442 billion) assumes 6/30/25 Fed funds rate of 4.25% Noninterest income1 Up 2 – 6% (1Q25 baseline: $721 million; excludes securities g/l) Noninterest expense1 (1Q25
Slide 15: Appendix
Appendix 15 © Fifth Third Bancorp | All Rights Reserved
Slide 16: Consumer and Business Banking Digital Metrics
Consumer and Business Banking Digital Metrics Digital Engagement Digital Originations Average Active Digital Users 1 Digital Assisted Mortgage Applications (Millions) Consumer Satisfaction 98% 98% 98% 97% 98% 3.08 3.07 3.09 3.09 3.14 Average app store rating of 4.8 stars vs peer average of 4.5 1Q24
Slide 17: Strategic investments resulting in fee diversification and growth
Strategic investments resulting in fee diversification and growth Fee revenue mix is well-diversified Fee contribution as a percent of revenue 1,2 LTM 1Q25 adjusted noninterest income mix stands out favorably relative to peers LTM 1Q25 adjusted noninterest income as a percent of adjusted revenue2, u
Slide 18: Total commercial portfolio overview
Total commercial portfolio overview Portfolio loans and leases Key statistics $ in billions 1Q24 4Q24 1Q25 $74.7 $75.1 $72.8 $71.9 $72.2 $71.8 $71.8 $71.1 $72.0 $73.3 NCO ratio1 0.19% 0.32% 0.35% 30-89 delinquencies 0.15% 0.07% 0.21% 90+ delinquencies 0.02% 0.01% 0.01% Nonperforming loans2 0.52% 0.6
Slide 19: Commercial and industrial overview
Commercial and industrial overview Portfolio loans Key statistics $ in billions 1Q24 4Q24 1Q25 $53.2 $52.2 $52.4 $51.8 $51.6 $50.9 $51.6 $52.3 $53.4 $53.7 NCO ratio1 0.27% 0.42% 0.39% 30-89 delinquencies 0.12% 0.05% 0.23% 90+ delinquencies 0.02% 0.01% 0.00% Nonperforming loans2 0.64% 0.72% 1.00% 1Q2
Slide 20: High quality Shared National Credit portfolio
High quality Shared National Credit portfolio Shared National Credit portfolio is well diversified Key statistics $ in billions; as of 3/31/25 1Q24 4Q24 1Q25 Industry mix Loan balance $32.4 $32.2 $32.7 SNC $32.7BN Other Nonperforming loans2 0.53% 0.67% 0.86% Retail portfolio 18% 19% ~27% of total lo
Slide 21: Low concentration in leveraged lending
Low concentration in leveraged lending Total Loan Portfolio Composition Diversified Leveraged Portfolio as of 3/31/25 as of 3/31/25 Healthcare & Other Wholesale Trade Social Assistance Retail Trade Professional, Scientific & Technical Other Services Services Total Loans $122.2 Billion Leveraged Admi
Slide 22: Commercial real estate overview
Commercial real estate overview Portfolio loans Key statistics $ in billions 1Q24 4Q24 1Q25 $17.8 $18.2 $18.3 $17.1 $17.1 $17.3 $17.2 $17.5 $17.3 $17.5 NCO ratio1 0.00% 0.00% 0.23% $12.2 $12.4 $12.4 $11.3 $11.3 $11.4 $11.4 $11.5 $11.4 $11.8 30-89 delinquencies 0.15% 0.05% 0.03% 90+ delinquencies 0.0
Slide 23: CRE portfolio is well-positioned
CRE portfolio is well-positioned Comparing CRE portfolios relative to peers CRE loans1 / total loans CRE loans1 / total capital CRE net charge-off ratio2 As of 12/31/24 unless otherwise noted As of 12/31/24 unless otherwise noted 4Q24 LTM unless otherwise noted Peer 1 12% Peer 1 72% FITB 4Q24 LTM 0.
Slide 24: Total consumer portfolio overview
Total consumer portfolio overview Portfolio loans Key statistics $ in billions 1Q24 4Q24 1Q25 $45.1 $45.5 $45.9 $46.5 $46.6 $47.1 $44.5 $44.6 $44.7 $44.8 NCO ratio1 0.67% 0.68% 0.63% 30-89 delinquencies 0.52% 0.54% 0.48% 90+ delinquencies 0.05% 0.06% 0.05% Nonperforming loans2 0.75% 0.79% 0.73% Weig
Slide 25: Residential mortgage overview
Residential mortgage overview Portfolio loans Key statistics $ in billions $17.0 $17.0 $17.0 $17.0 $17.0 $17.2 $17.3 $17.5 $17.6 $17.6 1Q24 4Q24 1Q25 NCO ratio1 (0.01%) (0.01%) —% 30-89 Delinquencies 0.14% 0.19% 0.15% 90+ Delinquencies 0.03% 0.03% 0.05% Nonperforming Loans2 0.81% 0.78% 0.82% Weighte
Slide 26: Home equity overview
Home equity overview Portfolio loans Key statistics $ in billions 1Q24 4Q24 1Q25 $4.1 $4.2 $4.2 $4.3 $3.9 $3.9 $4.0 $4.0 $4.1 NCO ratio1 0.03% (0.01%) 0.04% $3.9 30-89 delinquencies 0.64% 0.60% 0.63% 90+ delinquencies 0.00% 0.00% 0.00% Nonperforming loans2 1.55% 1.67% 1.62% Weighted average FICO at
Slide 27: Indirect secured consumer overview
Indirect secured consumer overview Portfolio loans Key statistics $ in billions $16.1 $16.3 $16.5 $16.8 1Q24 4Q24 1Q25 $15.2 $15.3 $15.4 $15.4 $15.7 $15.9 NCO ratio1 0.64% 0.66% 0.53% 30-89 delinquencies 0.82% 0.80% 0.68% 90+ delinquencies 0.00% 0.00% 0.00% Nonperforming loans2 0.21% 0.34% 0.36% Wei
Slide 28: Credit card overview
Credit card overview Portfolio loans Key statistics $ in billions $1.8 $1.7 $1.7 $1.7 $1.7 $1.7 $1.7 1Q24 4Q24 1Q25 $1.7 $1.6 $1.7 NCO ratio1 4.19% 4.00% 4.19% 30-89 delinquencies 1.09% 1.04% 1.02% 90+ delinquencies 1.09% 1.15% 1.02% Nonperforming loans2 1.84% 1.85% 1.87% Weighted average FICO at 74
Slide 29: Solar energy installation overview
Solar energy installation overview Portfolio loans Key statistics $ in billions $4.1 $4.2 $4.2 $4.3 $3.9 $4.0 $4.0 $4.1 1Q24 4Q24 1Q25 $3.8 $3.9 NCO ratio1 1.31% 1.64% 1.73% 30-89 delinquencies 0.36% 0.48% 0.52% 90+ delinquencies 0.00% 0.00% 0.00% Nonperforming loans2 1.68% 1.52% 0.70% Weighted aver
Slide 30: Allowance for credit losses
Allowance for credit losses Allocation of allowance by product 1Q25 Change in rate $ in millions Compared to: % of portfolio Allowance for loan & lease losses Amount 4Q24 1Q24 loans & leases Commercial and industrial loans $845 1.57% 0.18% 0.13% Commercial mortgage loans 323 2.61% (0.26)% (0.09%) Co
Slide 31: NPL rollforward
NPL1 rollforward 1Q24 2Q24 3Q24 4Q24 1Q25 Balance, beginning of period $326 $372 $274 $334 $456 Transfers to nonaccrual status 108 51 191 240 273 Transfers to accrual status (1) — — (1) (3) Transfers to held for sale (3) — (5) (5) (17) Commercial Loan paydowns/payoffs (18) (66) (47) (49) (19) $ in m
Slide 32: Balance sheet positioning
Balance sheet positioning Commercial loans1,2 Consumer loans1 Investment portfolio Long-term debt3 $28.0BN fixed | $47.1BN variable1,2 $40.6BN fixed | $6.5BN variable1 $9.3BN fixed | $5.3BN variable3 • 54% allocation to bullet/locked- • 1M based: 38%4,7 • 1M based: 1%5,7 out cash flow securities • S
Slide 33: Managing rate risk against conservative outcomes
Managing rate risk against conservative outcomes Estimated NII sensitivity profile and ALCO policy limits % Change NII (FTE) ALCO policy limit Change in interest rates (bps) 12 months 13 to 24 months 12 months 13 to 24 months +200 Ramp over 12 months (3.5%) (4.8%) (6.0%) (7.0%) Rate risk models assu
Slide 34: Investment portfolio composition
Investment portfolio composition Securities portfolio Investment portfolio characteristics AFS and HTM portfolio; amortized cost basis; as of 3/31/25 Amortized cost basis; as of 3/31/25 Held-to-maturity portfolio • $11.2BN portfolio HTM • Reclassification during 1Q24 aimed to de-risk potential AOCI
Slide 35: Securities portfolio AOCI accretion
Securities portfolio AOCI accretion AOCI accretion1 assuming implied forward curve2 $ in billions; 3/31/25 AFS and HTM portfolio unrealized loss, after-tax Historical AOCI accretion Projected AOCI accretion ($1.4) ($1.7) ($2.1) ($2.4) ~51% ($2.8) capital accretion ($3.2) ~31% ($3.5) capital accretio
Slide 36: Balance sheet positioned to grow tangible book value per share
Balance sheet positioned to grow tangible book value per share TBV/share1 will improve due to AOCI accretion alone Projected TBV/share growth includes no earnings contribution from 2025-20282 Projected growth from AOCI burndown alone Actuals Forecast $22.06 $21.52 +3% $21.02 +2% $20.49 +3% +10% $18.
Slide 37: Cash flow hedges
Cash flow hedges Receive-fixed swaps1 EOP notional value of cash flow hedges ($ in billions) Existing receive-fixed swaps2 $15 $14 $10 $9 $8 $5 1Q25 1Q30 4Q30 2Q31 3Q31 4Q31 Actual Weighted average receive 3.17% 3 3.19% 3.27% 3.29% 3.32% 3.44% fixed rate 37 For end note descriptions, see end note su
Slide 38: Mortgage banking results
Mortgage banking results Mortgage banking net revenue Mortgage originations and margins $ in millions $ in billions $57 $1.9 $1.9 $54 $50 $50 $57 Origination $1.6 fees and $0.6 $0.6 $1.4 gains on loan $3 $3 $1.1 $0.6 sale $1.3 $0.5 Gross $78 $78 $77 $75 $74 Originations HFS $0.4 $1.0 servicing Origi
Slide 39: Preferred dividend schedule
Preferred dividend schedule Upcoming preferred dividend schedule1 2Q25 3Q25 4Q25 1Q26 $ in millions Series H ~$12 ~$12 ~$11 ~$10 Floating2 Series I ~$9 ~$9 ~$9 ~$9 Floating2 Series J ~$6 ~$6 ~$6 ~$5 Floating2 Series K ~$3 ~$3 ~$3 ~$3 Series L3 ~$4 ~$4 ~$7 ~$7 Class B Series A ~$3 ~$3 ~$3 ~$3 Total ~
Slide 40: 1Q25 adjustments and notable items
1Q25 adjustments and notable items Adjusted EPS of $0.731 1Q25 reported EPS of $0.71 included a negative $0.02 impact from the following notable item(s): • $18 million pre-tax (~$14 million after-tax2) charge related to the valuation of Visa total return swap 40 For end note descriptions, see end no
Slide 41: Non-GAAP reconciliation
Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries For the three months ended $ and shares in millions (unaudited) March December September June March 2025 2024 2024 2024 2024 Net income (U.S. GAAP) (a) $515 $620 $573 $601 $520 Net income (U.S. GAAP) (annualized) (b) $2,089 $2,467 $2,280 $
Slide 42: Non-GAAP reconciliation
Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries For three months ended $ and shares in millions (unaudited) March December September June March 2025 2024 2024 2024 2024 Average interest-earning assets (a) $192,808 $193,513 $195,836 $194,499 $195,349 Net interest income (U.S. GAAP) (b) $
Slide 43: Earnings presentation end notes
Earnings presentation end notes Slide 3 end notes 1. Non-GAAP measure: see reconciliation on pages 41 and 42 of this presentation and use of non-GAAP measures on pages 25-27 of the earnings release. Slide 4 end notes 1. Reported ROTCE, NIM, pre-provision net revenue, and efficiency ratio are non-GAA
Slide 44: Earnings presentation end notes
Earnings presentation end notes Slide 20 end notes 1. Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis. 2. Nonperforming portfolio loans and leases as a percent of portfolio loans and leases. Slide 22 end notes 1. Net losses charged-off as a
Slide 45: Earnings presentation end notes
Earnings presentation end notes Slide 32 end notes Note: Data as of 3/31/2025. 1. Excludes HFS Loans & Leases. 2. Fifth Third had $15B of commercial variable loans classified as fixed given the impacts of $11BN in C&I receive-fix swaps and $4BN in CRE receive-fixed swaps 3. Fifth Third had $4.96BN S