Fifth Third Q3 2023 Earnings Report
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.
Fifth Third
Fifth Third
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
- Deposit mix shift from demand to interest-bearing accounts
- Continued deposit repricing dynamics