Fifth Third Bancorp reported third-quarter 2024 net income of $573 million, or $0.78 per diluted share, on Friday, as the Cincinnati-based regional bank posted sequential improvement in net interest income and deposit growth in the Southeast, and noted that it had raised its quarterly common dividend by 6% to $0.37 per share for the third quarter.
Net interest income on a taxable-equivalent basis rose 2% quarter-on-quarter to $1.427 billion, primarily reflecting higher loan yields, an extra day in the quarter and lower wholesale funding costs, partly offset by lower commercial loan balances, the bank said.
DEPOSITS AND FEE INCOME
Deposits in the Southeast, where the bank is expanding into high-growth markets, grew 16% over the past twelve months, reflecting its investment in new branches there.
Commercial payments fee income rose 10% year-on-year, with its Newline embedded-payments platform adding industry leaders to its customer base, the bank said.
CAPITAL RETURNS
Fifth Third completed $200 million of common share repurchases during the third quarter, under its existing share repurchase authorisation.
The bank's CET1 ratio rose 13 basis points to 10.75% despite the buyback.