Fifth Third Bancorp reaffirms annual interest income forecast despite uncertainty

Reuters

Thu, Apr 17, 2025, 8:01 AM 1 min read

(Reuters) - Fifth Third Bancorp reaffirmed the forecast for its yearly nett involvement income maturation connected Thursday, arsenic the lender banked connected its quality to negociate risks from the economical fallout of U.S. and China's escalating tariff war.

Regional banks similar Fifth Third trust chiefly connected lending to tiny businesses and consumers, which are particularly susceptible to immoderate economical downturn. They besides deficiency the standard and sizeable trading operations that typically shield larger peers during times of volatility.

But Fifth Third inactive expected its nett involvement income (NII) — the quality betwixt what banks wage customers connected deposits and gain arsenic involvement connected loans — to turn betwixt 5% and 6% this year.

"We stay proactive successful managing our recognition hazard and accent investigating our portfolio nether galore scenarios," CEO Tim Spence said.

The bank's NII roseate 4% to $1.44 cardinal for the 4th ended March, driven by indebtedness maturation and little deposit costs, successful summation to fixed-rate plus repricing.

Average loans roseate 3% successful the 4th from a twelvemonth earlier, driven by maturation successful commercialized and user lending.

Fifth Third's nett income disposable to communal shareholders was $478 million, oregon 71 cents per share, successful the quarter. It had earned $480 million, oregon 70 cents per share, a twelvemonth earlier.

The Cincinnati, Ohio-based slope acceptable speech $174 cardinal arsenic proviso for recognition losses, higher than $94 cardinal a twelvemonth earlier, amid mounting recession fears.

Shares of Fifth Third person fallen 19% successful 2025, arsenic of past close, lagging the 15% driblet successful the KBW Regional Banking Index.

(Reporting by Ateev Bhandari and Arasu Kannagi Basil successful Bengaluru; Editing by Leroy Leo)