Fifth Third Bancorp Reports $2.4 Billion Net Income and $6.0 Billion Net Interest Income for 2025

Fifth Third Bancorp reported net income available to common shareholders of $2.4 billion, or $3.53 per diluted share, for the year ended December 31, 2025. This compares to $2.2 billion, or $3.14 per diluted share, for the previous year. The Bancorp's financial performance was impacted by a $4 million reduction to net income available to common shareholders due to the redemption of all outstanding shares of its preferred stock, Series L.

Net interest income on a fully taxable equivalent (FTE) basis increased to $6.0 billion, up from $5.7 billion in 2024. This increase was attributed to lower funding costs resulting from lower short-term market rates and a decrease in the average balances of interest-bearing liabilities. Higher average balances of loans and leases, along with fixed-rate consumer loan yield improvements driven by higher intermediate-term and long-term interest rates, also contributed to the growth. These positive impacts were partially offset by decreases in the average balances of and lower yields on other short-term investments as well as lower yields on average commercial loans and leases driven by lower short-term market rates. The net interest margin on an FTE basis was 3.11%, compared to 2.90% in the prior year.

The provision for credit losses increased to $662 million, compared to $530 million in 2024. This increase was primarily driven by the fraud-related impairment of an asset-backed finance commercial loan, which included a charge-off of $178 million and a specific allowance of $20 million, as well as increases in specific reserves on individually evaluated commercial loans and higher period-end loan and lease balances. The increase in provision expense for the year ended December 31, 2025 was partially offset by factors that reduced the ACL from December 31, 2024, including the impacts of changes in both the mix and credit quality of the consumer loan portfolio and improvements in probability of default ratings on collectively-evaluated commercial loans. Net losses charged off as a percent of average portfolio loans and leases were 0.60% and 0.45% for the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, the Bancorp had 18,676 full-time equivalent employees, compared to 18,616 as of December 31, 2024.

Noninterest income rose to $3.0 billion, up from $2.8 billion in the previous year, driven by increases in wealth and asset management revenue, commercial payments revenue, consumer banking revenue, mortgage banking net revenue, and other noninterest income, partially offset by decreases in commercial banking revenue and capital markets fees. Noninterest expense also increased to $5.1 billion, up from $5.0 billion in 2024, primarily due to increases in compensation and benefits expense, technology and communications expense, and marketing expense, partially offset by a decrease in other noninterest expense. On February 1, 2026, Fifth Third Bancorp closed the merger with Comerica Incorporated in an all-stock transaction valued at approximately $12.7 billion. The Bancorp expects to become a Category III institution by the end of 2026 and does not expect any material financial impacts associated with this transition.

As of December 31, 2025, Fifth Third Bancorp's regulatory capital ratios were: CET1 risk-based capital ratio of 10.81%, Tier 1 risk-based capital ratio of 11.87%, Total risk-based capital ratio of 13.78%, and a Leverage ratio of 9.41%. The Bancorp's Board of Directors authorized management to purchase 100 million shares of the Bancorp's common stock through the open market or in any private party transactions. During the year ended December 31, 2025, the Bancorp repurchased $525 million of common stock in accelerated share repurchase transactions.