Fifth Third Q4 2023 Earnings Report
Key Takeaways
Fifth Third Bancorp reported a net income of $530 million for Q4 2023, with diluted earnings per share of $0.72. The results reflect a decrease compared to the previous quarter and year-ago quarter, impacted by certain items including an FDIC special assessment. However, the company saw growth in average deposits and CET1 capital.
Average deposits increased 2% compared to the previous quarter and 5% compared to the year-ago quarter.
CET1 capital increased 49 bps sequentially to 10.29%, driven by strong earnings and balance sheet optimization.
Net charge-off ratio declined 9 bps compared to the prior quarter.
Opened 19 branches during the quarter, with 18 in high-growth Southeast markets, and generated consumer household growth of 3% compared to the prior year.
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Forward Guidance
While the economic and regulatory environments remain uncertain, Fifth Third remains well positioned to navigate potential economic and regulatory outcomes, focusing on stability, profitability, and growth.
Positive Outlook
- Strong operating results in 2023.
- Record revenue generation.
- Prudent expense management.
- Disciplined credit risk management.
- Successful completion of risk-weighted assets initiative.
Challenges Ahead
- Challenging economic environment.
- Uncertain regulatory landscape.
- Potential economic outcomes.
- Potential regulatory outcomes.
- Continued investment in businesses required.
Revenue & Expenses
Visualization of income flow from segment revenue to net income