Q1 2025 Fifth Third Bancorp Earnings Call Transcript
Key Points
- Fifth Third Bancorp (FITB) reported earnings per share of $0.71, or $0.73 excluding certain items, exceeding consensus estimates.
- The company achieved a 5% year-over-year growth in pre-provision net revenue (PPNR) and an adjusted return on equity of 11.2%.
- Total loans grew 3% year over year, driven by strong middle market C&I production and balanced growth across consumer secured lending categories.
- Net interest income (NII) grew 4% over the prior year as net interest margins expanded for the fifth consecutive quarter.
- Fifth Third Bancorp (FITB) maintained a strong liquidity profile with a loan to core deposit ratio of 75% and full Category 1 LCR compliance at 127%.
- Average core deposits decreased 2% sequentially, driven primarily by normal seasonality in commercial deposits.
- Capital markets fees declined by 7% from the year-ago period, primarily due to a slowdown in loan syndications and M&A advisory revenue.
- The net charge-off ratio was 46 basis points, with commercial charge-offs increasing by 3 basis points sequentially.
- The company's NPA ratio increased 10 basis points sequentially to 81 basis points, driven by two ABL credits in the C&I portfolio.
- Fifth Third Bancorp (FITB) anticipates continued economic uncertainty impacting wealth and capital markets revenue, with a cautious outlook on fee income growth.
Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q1 2025 Fifth Third Bancorp earnings conference call. (Operator Instructions) I would now like to turn the call over to Matt Curoe, Director of Investor Relations. Please go ahead.
Good morning, everyone. Welcome to Fifth Third's first quarter 2025 earnings call. This morning, our Chairman, CEO and President, Tim Spence; and CFO, Bryan Preston will provide an overview of our first 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 on our materials, which can be 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. These statements speak only as of April
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