Fifth Third Q1 2023 Earnings Report
Key Takeaways
Fifth Third reported first quarter net income of $558 million, or $0.78 per diluted share. The results reflect strength and resiliency of the balance sheet, disciplined credit risk management, and strong and diversified revenue streams.
Period-end and average total deposits were flat compared to 4Q22; average core deposits decreased 1% as expected
Strong credit quality; net charge-off ratio of 0.26%, 30-89 day early stage delinquencies of 0.26%, and NPA ratio of 0.51%
Revenue increased 18%, PPNR increased 34% (adjusted PPNR increased 39%), and net income increased 13% compared to 1Q22
Efficiency ratio improved approximately 5 points, adjusted efficiency of 58.6% improved approximately 6 points compared to 1Q22
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Forward Guidance
Fifth Third has spent nearly a decade focused on positioning the bank to generate sustainable financial results. As we navigate the environment, we will follow our guiding principles of stability, profitability, and growth – in that order.
Positive Outlook
- Delivering solid deposit outcomes
- Strength and resiliency of our balance sheet
- Disciplined credit risk management
- Strong and diversified revenue streams
- Adding net new households in consumer and new quality relationships in commercial
Challenges Ahead
- Effects of the global COVID-19 pandemic
- Deteriorating credit quality
- Inadequate sources of funding or liquidity
- Cyber-security risks
- Weakness in the national or local economies
Revenue & Expenses
Visualization of income flow from segment revenue to net income