NASDAQ$FITB

Fifth Third Bancorp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported diluted earnings per share of $0.94.

Fifth Third Bancorp reported strong Q2 2021 results, with net income available to common shareholders of $674 million, or $0.94 per diluted share. The bank saw improvements in revenue, well-managed expenses, and low net charge-offs.

  • Launched Fifth Third Momentum Banking across footprint.
  • Announced acquisition of Provide, a leading fintech company serving healthcare practices (expect to close early August 2021).
  • Generated consumer household growth of 4% vs. 2Q20.
  • Published second annual ESG report on June 30th.

Headline financials

Total Revenue

$1.95B

Previous: $1.85B+5.4%
EPS (adj)

$0.94

Previous: $0.30+213.3%
Net Interest Margin

2.6%

No prior period
Efficiency Ratio

59.1%

Previous: 60.5%-2.3%
CET1 Capital Ratio

10.4%

Previous: 9.7%+6.7%
Capital Expenditures

-$126M

Previous: -$133M+5.3%
Free Cash Flow

$583M

Previous: $62M+840.3%
Net Income

$709M

Previous: $195M+263.6%
Operating Income

$1.51B

Previous: $904M+66.7%
Gross Profit

$1.83B

Previous: $1.37B+34.4%
Cash & Equivalents

$3.29B

Previous: $3.22B+2.0%
Total Assets

$205B

Previous: $203B+1.2%
Stock-Based Comp

$24M

Previous: $24M+0.0%

Revenue & EPS history

Fifth Third · Revenue · Quarterly

$1.95B

Q2 2021+5.4%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Fifth Third · $498M total across 2 segments · Q2 2021

  • Commercial Banking
    $355M+20.7%
  • Wealth & Asset Mgmt
    $143M+18.2%

Forward guidance

Fifth Third expects to generate and return a significant amount of excess capital to shareholders over the next year.

Tailwinds

  • Commercial lending production trends and pipelines continue to indicate improved loan growth once supply and labor constraints normalize.
  • Acquisition of Provide, a leading fintech company serving healthcare practices, to further accelerate profitable relationship growth over the long-term.
  • Launch of Fifth Third Momentum Banking, a consumer banking value proposition unparalleled in the industry, to further accelerate household growth and continue to provide a differentiated customer experience.
  • Focused on disciplined client selection, generating strong relationships and managing the balance sheet through varying cycles over a long-term performance horizon.
  • Well-positioned to benefit when interest rates rise and well-hedged if rates remain at low levels for several more years.

Headwinds

  • Effects of the global COVID-19 pandemic.
  • Deteriorating credit quality.
  • Loan concentration by location or industry of borrowers or collateral.
  • Problems encountered by other financial institutions.
  • Inadequate sources of funding or liquidity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.3%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+3.0%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+6.8%

Q1 2024

Best reaction

-12.1%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.9%+2.1%-4.4%
Q1 2026-0.5%+2.1%-4.4%
Q3 2025+1.2%+3.3%+5.5%
Q2 2025+0.5%-0.4%+6.0%
Q1 2025-0.7%+0.7%+15.2%
Q4 2024-0.9%-0.4%-1.6%
Q3 2024-4.4%-3.3%+3.6%
Q2 2024+1.6%+1.9%+1.1%
Q1 2024+6.8%+8.8%+12.7%
Q4 2023+4.0%+4.4%+2.1%
Q3 2023-5.5%-6.7%+11.9%
Q2 2023-0.9%-1.6%-10.2%
Q1 2023-1.9%-8.4%-10.4%
Q4 2022+5.8%+7.4%+12.9%
Q3 2022-0.7%+6.3%+7.1%
Q2 2022-3.1%-4.4%+5.3%
Q1 2022+4.1%-1.6%-8.8%
Q4 2021-6.1%-6.4%+0.5%
Q3 2021+3.5%+3.3%+0.2%
Q2 2021-3.0%-1.4%+2.0%
Q1 2021-1.3%+1.2%+9.7%
Q4 2020-1.4%-5.0%+10.2%
Q3 2020+3.9%-2.5%+7.6%
Q2 2020+0.6%-0.8%+0.7%
Q1 2020-1.1%+2.6%+4.6%
Q4 2019+1.2%-1.8%+1.3%
Q3 2019+0.9%+3.7%+6.3%
Q2 2019+6.6%+8.0%-7.3%
Q1 2019+2.6%+3.0%-2.0%
Q4 2018+2.1%+2.9%+2.7%
Q3 2018-1.6%+1.9%+5.6%
Q2 2018-5.8%-3.0%-1.8%
Q1 2018+5.0%+6.0%-0.5%
Q4 2017+1.7%+1.8%+0.3%
Q3 2017+0.5%+2.3%-0.0%
Q2 2017+3.7%+2.7%+3.3%
Q1 2017-1.4%-3.6%-3.4%
Q4 2016+1.5%+1.0%+3.7%
Q3 2016+3.4%+3.7%+25.1%
Q2 2016+1.8%-0.4%+5.6%
Q1 2016+1.3%
Q4 2015-3.6%
Q3 2015-3.9%
Q2 2015+1.5%
Q1 2015+4.0%
Q4 2014-0.9%
Q3 2014-2.4%
Q2 2014-5.1%
Q1 2014-5.2%
Q4 2013-2.7%
Q3 2013+4.8%
Q2 2013+0.2%
Q1 2013+3.8%
Q4 2012+5.3%
Q3 2012-0.7%
Q2 2012-0.9%
Q1 2012+0.6%
Q4 2011+0.7%
Q3 2011-3.8%
Q2 2011-12.1%
Q1 2011+1.3%
Q4 2007-4.5%
Q4 2010-4.5%
Q3 2010-1.2%
Q2 2010+2.4%
Q1 2009+5.7%
Q1 2010+2.4%
Q4 2009+0.3%
Q3 2008+5.5%
Q3 2009+5.5%
Q2 2008+0.8%
Q2 2009+0.8%
Q4 2008+0.8%

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