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CINCINNATI -On Thursday, Fifth Third Bancorp (NASDAQ:FITB) reported first quarter 2025 earnings that exceeded analyst expectations.
The company’s shares were up 1.95% in premarket trading after the release.
The regional bank posted earnings per share of $0.73, beating the consensus estimate of $0.71. Revenue came in at $2.14 billion, slightly below expectations of $2.16 billion.
Net interest income was stable sequentially at $1.44 billion and up 4% YoY, driven by loan growth and deposit rate management. The net interest margin expanded for the fifth consecutive quarter to 3.03%, up 6 basis points from Q4 2024.
"Fifth Third delivered another quarter of strong financial results reflecting our resilient balance sheet, diversified business mix, and disciplined expense management," said Tim Spence, Chairman, CEO and President. "We again generated positive operating leverage, delivered loan growth, and expanded net interest margin."
Average loans increased 3% both sequentially and YoY to $121.3 billion, with growth in both commercial and consumer lending. Average deposits decreased 2% from the prior quarter to $164.2 billion.
The bank’s credit quality remained stable, with net charge-offs holding steady at 0.46% of average loans. The allowance for credit losses was 2.07% of total loans at quarter-end.
Fifth Third repurchased $225 million of common stock during the quarter. Its CET1 capital ratio declined 12 basis points sequentially to 10.45% due to loan growth.
Looking ahead, Spence said, "As we navigate this environment, we will continue to follow our operating principles of stability, profitability, and growth - in that order."
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