Sector: Financials|Industry: Banks - Regional|Market Cap: $28.56B|Employees: 18.7K
Fifth Third Bancorp is a diversified financial services company that operates through three main businesses: Commercial Banking, Consumer and Small Business Banking, and Wealth & Asset Management. It is among the largest money managers in the Midwest, with a geographic presence in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. The company's competitive advantages include a strong regional presence and a wide range of financial products and services.
Net interest income decreased by 5% YoY for the three months ended June 30, 2024, primarily due to higher funding costs from increases in market interest rates and deposit balance migration into higher yielding products. Rates paid on average interest-bearing core deposits increased 76 bps YoY.
Noninterest income decreased by 4% YoY for the three months ended June 30, 2024, primarily due to decreases in other noninterest income, leasing business revenue and mortgage banking net revenue, partially offset by increases in wealth and asset management revenue and service charges on deposits.
The provision for credit losses was $97 million for the three months ended June 30, 2024, compared to $177 million during the same period in the prior year. Provision expense for the three months ended June 30, 2024 was affected by factors that caused a decrease in the ACL from March 31, 2024, primarily including decreases in specific reserves on individually evaluated commercial and industrial loans.