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Sep 30, 2023
Fifth Third Q3 2023 Earnings Report
Reported strong third quarter results with increased deposits, liquidity, and capital, while maintaining strong credit quality and raising the quarterly common stock dividend.
Key Takeaways
Fifth Third Bancorp reported a net income of $660 million for Q3 2023, compared to $601 million in the prior quarter and $653 million in the year-ago quarter. Net income available to common shareholders was $623 million, or $0.91 per diluted share.
Average deposits increased 3% and period-end deposits increased 2% compared to 2Q23; period-end deposits increased 4% compared to 3Q22.
CET1 capital increased 31 bps sequentially reflecting strong earnings power and balance sheet optimization efforts.
Strong credit quality metrics; 30-89 day early stage delinquencies of 0.26%, and NPA ratio of 0.51%, both improved compared to 2Q23.
Generated consumer household growth of 2.3% compared to 3Q22.
Forward Guidance
The economic and regulatory environments remain uncertain, Fifth Third has spent nearly a decade focused on positioning the bank to outperform peers through the cycle. We will continue to follow our guiding principles of stability, profitability, and growth – in that order.
Positive Outlook
- Stability: Average deposits increased and period-end deposits increased compared to prior quarter and year ago quarter
- Achieved full Category I LCR compliance during the quarter and at quarter-end
- CET1 capital increased sequentially reflecting strong earnings power and balance sheet optimization efforts
- Strong credit quality metrics; early stage delinquencies and NPA ratio both improved compared to prior quarter
- ACL increased from prior quarter, primarily reflecting a change in macroeconomic forecast
Challenges Ahead
- Economic environment remains uncertain
- Regulatory environment remains uncertain
- Market-related headwinds are impacting all banks
Historical Earnings Impact
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Avg. Return Before/After Earnings
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