Why did FITB's EPS decline in Q2 2024?

The EPS of Fifth Third Bancorp (FITB) declined in Q2 2024 compared to the previous quarter, from $0.81 to $0.82, which can be attributed to several factors:

1. **Revenue Decline**: Although total revenues were reported, there was a decline in net interest income (NII), which is a key component of bank revenues. In the first quarter, NII decreased, which limited revenue growth. This trend could have continued in Q2 2024, contributing to the EPS decline.
2. **Expense Increase**: There was an increase in non-interest expenses, which could have squeezed profit margins and led to a decrease in EPS. For instance, non-interest expenses increased by 1% year-over-year to $1.34 billion, primarily due to higher net occupancy expenses and marketing expenses. Such increases can erode profitability, leading to a lower EPS.
3. **Credit Quality Deterioration**: The provision for credit losses increased, indicating a higher likelihood of loan defaults or impairments. In Q1 2024, the provision for credit losses was $94 million, up from $55 million in the previous quarter and $164 million in the year-earlier period. This suggests that the bank may be setting aside more funds to cover potential loan losses, which can negatively impact profitability and EPS.

In summary, the decline in FITB's EPS in Q2 2024 can be attributed to a combination of factors including revenue decline, increase in expenses, and credit quality deterioration. These factors, either directly or indirectly, can lead to a decrease in the bank's profitability and, consequently, its EPS.