Fifth Third Bancorp Reports Fourth-Quarter Profit Growth

(Reuters) – Fifth Third Bancorp (NASDAQ:FITB) reported a rise in fourth-quarter profit on Tuesday, driven by a recovery in dealmaking across the industry and higher wealth and asset management fees.

Shares of the lender were up 1.5% in premarket trading and had jumped 22.6% in 2024.

Industry Resurgence

Banks have benefited from a resurgence in dealmaking activity, fueled by improving economic confidence and greater political certainty. Expectations of additional rate cuts and business-friendly policies under President Donald Trump have fueled optimism for a further revival in investment banking.

Financial Highlights

• Capital Markets Fees: Increased by 16% year-over-year to $123 million
• Wealth and Asset Management Revenue: Rose 11% to $163 million
• Assets Under Management: Increased by about 17% to $69 billion

These gains reflect trends seen by larger rivals, benefiting from a rebound in investment banking activity.

• Net Interest Income (NII): Rose by 1.5% to $1.44 billion.
• NII Forecast: Predicted to remain stable in Q1 but expected to grow by 5%-6% in 2025.

However, the provision for credit losses rose sharply to $179 million from $55 million a year earlier due to concerns over defaults amid high interest rates.

Net income available to common shareholders rose to $582 million, or 85 cents per share, up from $492 million, or 72 cents per share, a year earlier.