Fifth Third Bancorp (FITB) Q3 2023 Earnings: Strong Performance Despite Market Headwinds
Fifth Third Bancorp (NASDAQ:FITB) reported Q3 2023 diluted earnings per share of $0.91, maintaining strong credit quality.
The company raised its quarterly common stock dividend by 2 cents, or 6%, to $0.35 per share.
Net income available to common shareholders was $623 million, compared to $562 million in Q2 2023 and $631 million in Q3 2022.
Fifth Third Bancorp (NASDAQ:FITB) reported a 3% increase in average deposits and a 2% increase in period-end deposits compared to Q2 2023.
On October 19, 2023, Fifth Third Bancorp (NASDAQ:FITB) released its Q3 2023 earnings report. The company reported strong performance despite the challenging market environment. The report highlighted a diluted earnings per share of $0.91 and a raised quarterly common stock dividend by 2 cents, or 6%, to $0.35 per share.
Financial Performance
Fifth Third Bancorp (NASDAQ:FITB) reported net income available to common shareholders of $623 million, compared to $562 million in Q2 2023 and $631 million in Q3 2022. The company's net interest income was $1,438 million, a slight decrease from $1,457 million in Q2 2023. Noninterest income was $715 million, down from $726 million in the previous quarter.
Balance Sheet & Credit Quality
The company's average portfolio loans and leases stood at $121,630 million, while average deposits were $165,644 million. The net charge-off ratio was 0.41%, and the nonperforming asset ratio was 0.51%.
CEO Commentary
Our third quarter results were once again strong, as we have continued to navigate the challenging environment well. Our key return and profitability metrics remained resilient despite the market-related headwinds that all banks are facing. We generated strong fee growth compared to the year-ago quarter while maintaining expense discipline. Our credit metrics remained strong, with net charge-offs for the quarter in-line with our expectations. Additionally, early-stage delinquencies and nonperforming loans improved sequentially, reflecting our disciplined approach to client selection. - Tim Spence, Fifth Third President and CEO
Outlook
Despite the uncertain economic and regulatory environments, Fifth Third Bancorp (NASDAQ:FITB) remains focused on its guiding principles of stability, profitability, and growth. The company continues to invest prudently, adding new households in consumer and new quality middle market relationships in commercial.
This article first appeared on GuruFocus.
