Fifth Third Bancorp

Earnings Performance and Growth: Fifth Third reported Q1 2025 earnings per share (EPS) of $0.71 ($0.73 adjusted) and a year-over-year (YOY) growth in Pre-Provision Net Revenue (PPNR) of 5%. The bank achieved an adjusted return on equity of 11.2% and a 15% increase in tangible book value per share despite unchanged Treasury rates.

Loan Growth and Net Interest Income (NII): Total loans grew by 3% YOY, with strong middle market and secured lending. NII increased by 4% YOY, with net interest margins expanding for the fifth consecutive quarter. The bank forecasts record NII for the year, projected to increase by 5-6%, even without loan growth or rate cuts.

Deposits and Cost Management: Core deposits were stable, with total household growth of 2% and 5% in the Southeast. The bank effectively managed funding costs, with a 20 basis point reduction in interest-bearing liabilities. Full-year adjusted non-interest expenses are expected to rise only 2-3%, highlighting the bank’s disciplined expense management.