Fifth Third Bancorp Reports Lower Profit in Latest Quarter

By Denny Jacob

Fifth Third Bancorp, a renowned financial services company, has announced a decline in its profit for the latest quarter. The net interest income for the fourth quarter stood at $530 million, translating to 72 cents a share. This represents a decrease of 28% compared to the previous year's net income of $737 million, or $1.01 per share. Analysts, as polled by FactSet, had initially anticipated earnings of 77 cents a share.

The company reported a 10% decrease in net interest income, which amounted to $1.42 billion, matching analysts' estimations. This decline was primarily attributed to changes in the deposit mix, transitioning from demand to interest-bearing accounts. Additionally, continued deposit repricing dynamics also played a role in the decrease. However, these declines were partially offset by higher loan yields.

On the non-interest income front, Fifth Third witnessed a marginal 1% increase, with earnings reaching $744 million compared to $735 million in the previous year. This figure aligned with analysts' expectations, as polled by FactSet.

Furthermore, Fifth Third disclosed that the provision for credit losses amounted to $55 million in the current quarter.