- Fifth Third Bancorp (FITB, Financial) reports Q1 2025 diluted EPS of $0.71, marking a decline from $0.85 in Q4 2024 but a slight increase from $0.70 in Q1 2024.
- The bank's net interest margin expanded for the fifth consecutive quarter to 3.03%, supported by successful deposit pricing management and fixed-rate asset repricing.
- Fifth Third executed $225 million in share repurchases during the quarter, demonstrating confidence in its financial position.
Fifth Third Bancorp (FITB) announced its Q1 2025 financial results, reporting a diluted earnings per share of $0.71, a decrease from the previous quarter's $0.85 but a minor increase from $0.70 in the same period last year.
The bank achieved a net income available to common shareholders of $478 million. Net interest income remained stable at $1,442 million, experiencing a 4% year-over-year increase. The net interest margin expanded to 3.03%, marking the fifth consecutive quarter of growth.
Average portfolio loans saw an increase of 3%, both sequentially and year-over-year, indicating growth in both commercial and consumer lending sectors. Meanwhile, noninterest expenses decreased by 3% compared to the first quarter of 2024, reflecting continued expense discipline.
In contrast, the nonperforming asset ratio increased to 0.81%, compared to 0.71% in the previous quarter, indicating weakening credit quality. The provision for credit losses rose by 85% year-over-year to $174 million, pointing to heightened risk expectations.
Fifth Third Bancorp also reported a 7% year-over-year increase in wealth and asset management revenue and a 6% rise in commercial payments revenue, showcasing diversification beyond traditional banking services.
In a strategic move, the bank executed $225 million in share repurchases during Q1 2025, further reflecting management's confidence despite potential economic challenges.
