Fifth Third Bancorp's Q4 2024: Strong Revenue Growth Amidst Strategic Investments and Credit Stability

Revenue and Profitability Growth:
- Fifth Third Bancorp reported adjusted revenues of $2 billion for Q4 2024, representing a 2% sequential and 2% year-over-year increase.
- The growth in revenues was supported by a 13.7% adjusted return on equity, the highest among peers who have reported thus far.
- This growth was driven by a strong fourth quarter and consistent strategic investments in diversified loan origination and expanding deposit bases.

Loan and Deposit Expansion:
- Loans grew by 3% on a sequential basis, with average loans increasing by 1% in Q4 2024.
- Retail deposit growth was strong, with Fifth Third ranking first among large banks in year-over-year retail deposit growth.
- The expansion was attributed to investments in Southeast branch footprints and the differentiated momentum banking platform, enhancing low-cost deposit growth.

Capital Management and Returns:
- The company achieved a return on assets of 1.17% and a return on tangible common equity of 14% for the year.
- Fifth Third returned $1.6 billion of capital to shareholders in 2024, while also increasing the CET1 ratio by more than 20 basis points.
- This was supported by strong financial performance and disciplined expense management, reflecting consistent investment in growth strategies.

Credit Quality and Risk Management:
- The net charge-off ratio was reported at 46 basis points, with commercial charge-offs at 32 basis points, reflecting stable credit quality.
- The provision expense resulted in a $43 million build in the allowance for credit losses, primarily due to loan growth.
- The risk management strategy focused on maintaining a balanced credit portfolio and proactive management of credit quality, ensuring stability in the midst of economic uncertainties.