Q2 2024 Fifth Third Bancorp Earnings Call Transcript
Key Points
- Fifth Third Bancorp (FITB) reported earnings per share of $0.81, exceeding guidance.
- The company achieved a return on tangible common equity of 15.1% and a return on assets of 1.22%, ranking best among peers.
- Sequential growth in net interest income (NII) for the first time since 2022, with expectations for continued positive operating leverage.
- Strong performance in strategic investments, particularly in the Southeast and middle market expansion markets, commercial payments, and wealth and asset management.
- Resumed share repurchases and increased CET1 ratio to 10.6%, highlighting strong capital levels and profitability.
- Customer demand for credit remains muted, impacting commercial loan growth expectations for the second half of the year.
- Adjusted non-interest income decreased by 4% year-over-year, primarily due to lower private equity gains and reduced demand for mortgage and commercial customer hedging.
- Net charge-off ratio increased to 49 basis points, driven by two commercial credits, indicating potential credit risk.
- Provision builds expected in the second half of 2024, reflecting cautious outlook on credit quality and economic conditions.
- Continued high levels of cash and liquidity, impacting net interest margin (NIM) and overall profitability.
At this time, I would like to welcome everyone to the second quater2024 Fifth Third Bancorp earnings conference call. Today's conference is being recorded. (Operator Instructions).
At this time, I would like to turn the conference over to Matt Curoe. Please go ahead.
Good morning, everyone. Welcome to Fifth Third, second quarter 2024 earnings call. This morning, our Chairman, CEO and President, Tim Spence, in CFO, Bryan Preston, will provide an overview of our second quarter results and outlook. Our Chief Credit Officer, Greg Schroeck, has also joined for the Q&A portion of the call.
Please review the cautionary statements in our materials, which can be found in our earnings release and presentation materials, contain information regarding the use of non-GAAP measures and reconciliations to the GAAP results as well as forward-looking statements about Fifth Third performance.
These statements speak only as of July 19, 2024, and Fifth Third undertakes no obligation to update them.
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