Q2 2025 Fifth Third Bancorp Earnings Call Transcript
Key Points
- Fifth Third Bancorp (FITB) reported earnings per share of $0.90, exceeding consensus estimates.
- Adjusted revenues grew by 6% year-over-year, with net interest income (NII) increasing by 7%.
- The company achieved 250 basis points of positive operating leverage for the third consecutive quarter.
- Strong credit metrics were reported, with net charge-offs at the bottom of the guidance range and non-performing assets (NPAs) declining by 11% sequentially.
- Fifth Third Bancorp (FITB) saw significant growth in its Southeast markets, with consumer bank net new households increasing by 6% and wealth management assets under management growing by 16% year-over-year.
- Economic uncertainty impacted client confidence, resulting in the lowest quarter of commercial loan production over the last year.
- The residential solar panel industry faces challenges due to the elimination of tax credits starting in January 2026, potentially impacting future originations.
- Commercial payment fees decreased due to lower commercial card spend activity and higher earnings credits.
- The company experienced a decrease in commercial construction balances as projects were refinanced into the permanent market.
- There is ongoing uncertainty in the global economy, which could impact future performance and growth opportunities.
Hello, and thank you for standing by. My name is Tiffany, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Fifth Third second-quarter 2025 earnings conference call. (Operator Instructions). And I would now like to turn the call over to Matt Curoe, Senior Director of Investor Relations. Mr. Curoe, please go ahead.
Morning, everyone. Welcome to Fifth Third second-quarter 2025 earnings call. This morning, our Chairman, CEO, and President, Tim Spence; and CFO, Bryan Preston, will provide an overview of our second quarter results and outlook. Our Chief Credit Officer, Greg Schroeck, has also joined for the Q&A portion of the call.
Please review the cautionary statements in our materials, which can be we found in our earnings release and presentation. These materials contain information regarding the use of non-GAAP measures and reconciliations to the GAAP results as well as forward-looking statements about Fifth Third's performance.
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