Fifth Third Bancorp (FITB) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

by obsessing over the details in our day-to-day operations while consistently investing for the long term. This disciplined approach has delivered shareholder returns that rank among the best in our peer group over the last three, five, seven, and 10-year timeframes. Today, we reported earnings per share of $1.04, or $1.08, excluding certain items outlined on page two of the release. We achieved an adjusted return on equity of 14.5%, an adjusted return on assets of 1.41%, and an adjusted efficiency ratio of 54.3%, all among the best of all banks, regardless of size, who have reported thus far. Adjusted fourth quarter revenues rose 5% year over year, driven by 6% growth in net interest income, 8% growth in commercial payments fees, and 13% growth in wealth and asset management fees. Fourth quarter average loans increased 5% year-over-year, driven by 7% growth in consumer loans and 7% growth in middle market and business banking C&I loans. Average core deposits grew 1% year-over-year, driven by 5% growth in consumer DDA and 3% growth in commercial DDA. Net charge-offs were 40 basis points for the quarter, the lowest level in the past seven quarters, and non-performing assets decreased for the third consecutive quarter. Our CET1 ratio increased to 10.8% and tangible book value per share grew 21% year-over-year, thanks to strong earnings performance and the continued pull-to-par of our AFF portfolio. The fourth quarter capped a year of milestones for Fifth Third. In the Southeast, we opened 50 new branches, including our 200th branch in Florida and our 100th branch in the Carolinas. To put this in context, if Fifth Third Florida were a standalone bank, it would have the 44th largest branch network in the U.S., and Fifth Third Carolinas would have the 78th largest. Our de...