Fifth Third Bancorp Reports Strong Third Quarter 2024 Performance

Strategic Insights -

Fifth Third Bancorp has reported another quarter of strong and consistent performance, driven by its resilient balance sheet, diversified and growing revenue streams, and disciplined expense management. The company's strong core deposit franchise and liquidity position it well for the declining interest rate environment and volatility driven by economic and regulatory uncertainty. Fifth Third's strategic growth priorities continue to deliver strong results, with deposits growing by 16% in the Southeast over the last twelve months and record revenue in its Wealth & Asset Management business.

Key Takeaways:

  • Fifth Third Bancorp reported third quarter 2024 net income of $573 million, compared to $601 million in the prior quarter and $660 million in the year-ago quarter.
  • Net income available to common shareholders was $532 million, or $0.78 per diluted share, compared to $561 million, or $0.81 per diluted share, in the prior quarter and $623 million, or $0.91 per diluted share, in the year-ago quarter.
  • The company's sequential growth in net interest income and net interest margin was driven by the repricing benefit on fixed-rate loan portfolio and moderating deposit costs.
  • Fifth Third's loan-to-core deposit ratio increased to 71%, while its efficiency ratio improved 70 basis points sequentially.
  • The company's financial ratios, including return on average assets and return on average common equity, decreased compared to the year-ago quarter.
  • Fifth Third raised its common stock dividend by 6% and executed a $200 million share repurchase, while growing its tangible book value per share by 6% in the past year.

Statistics:

  • Net interest income (FTE): $1,427 million (3Q24), $1,393 million (2Q24), and $1,445 million (3Q23)
  • Noninterest income: $711 million (3Q24), $695 million (2Q24), and $715 million (3Q23)
  • Noninterest expense: $1,244 million (3Q24), $1,221 million (2Q24), and $1,188 million (3Q23)
  • Net income available to common shareholders: $532 million (3Q24), $561 million (2Q24), and $623 million (3Q23)
  • Return on average assets: 1.06% (3Q24), 1.14% (2Q24), and 1.26% (3Q23)
  • Return on average common equity: 11.7% (3Q24), 13.6% (2Q24), and 16.3% (3Q23)

Sources:

  • Fifth Third Bancorp, "Fifth Third Bancorp Reports Third Quarter 2024 Earnings"
  • Fifth Third Bancorp, "Fifth Third Bancorp Announces Dividend Increase and Share Repurchase Authorization"
  • Fifth Third Bancorp, "Fifth Third Bancorp Completes Strategic Growth Priorities"