Fifth Third Bancorp (NASDAQ:FITB) delivered better-than-expected second-quarter results on Thursday, buoyed by ongoing loan expansion and a continued rise in net interest margins. The strong report sent shares up 1.05% in early trading.
The Cincinnati-based lender reported adjusted earnings per share of $0.88, narrowly edging past Wall Street’s estimate of $0.87. Total revenue came in at $2.25 billion, beating the consensus figure of $2.22 billion. This represented an 8% year-over-year increase—the highest growth rate the bank has recorded in more than two years.
Net interest income also climbed 8% from a year earlier to reach $1.5 billion. The bank’s net interest margin expanded for the sixth straight quarter, improving to 3.12%, up 24 basis points year-over-year. Total loans grew by 5% from the second quarter of 2024, the fastest annual pace in over two years.
“Fifth Third’s financial results once again underscore our strong balance sheet, diverse revenue streams, and disciplined expense management,” said Tim Spence, Fifth Third Chairman, CEO and President. “We’ve expanded our net interest margin, improved credit metrics, and strengthened our efficiency ratio.”
Credit performance remained robust. The net charge-off ratio declined to 0.45%, down four basis points compared to the same period last year. Nonperforming assets dropped 11% from the prior quarter, including an 18% decrease in commercial nonperforming assets.
Fifth Third also saw healthy growth on the retail front, with total households up 2%, including a 6% increase in the Southeast. Assets under management rose to $73 billion, marking a 12% increase from a year ago.
The bank’s Common Equity Tier 1 (CET1) ratio improved by 13 basis points to 10.56%, signaling strong capital generation. Its efficiency ratio dropped to 56.2%, while the adjusted figure stood at 55.5%, a 130 basis point improvement compared to the second quarter of 2024.
Fifth Third Bancorp stock price
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