NASDAQ$FITB

Fifth Third Bancorp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong Q3 2020 results with diluted earnings per share of $0.78.

Fifth Third Bancorp reported a net income of $581 million for Q3 2020, a significant increase compared to the previous quarter's $195 million and a 6% increase year-over-year. Diluted earnings per share were reported at $0.78, up from $0.23 in the prior quarter and $0.71 in the year-ago quarter.

  • Very strong reported and adjusted return metrics, reflecting strong operating results
  • Credit losses well below previous expectations with a NCO ratio of 0.35%, the lowest level since 2Q19
  • PPNR exceeded previous guidance, led by strong fees and better-than-expected NII performance
  • Strong balance sheet; CET1 ratio of 10.14% well above target range, with record balance sheet liquidity

Headline financials

Total Revenue

$1.89B

Previous: $1.98B-4.5%
EPS (adj)

$0.85

Previous: $0.75+13.3%
Net Interest Margin

2.6%

No prior period
Efficiency Ratio

61.3%

No prior period
CET1 Capital Ratio

10.1%

No prior period
Net Charge-Off Ratio

0.3%

No prior period
Capital Expenditures

-$235M

Previous: -$180M-30.6%
Free Cash Flow

$346M

Previous: $369M-6.2%
Net Income

$581M

Previous: $549M+5.8%
Operating Income

$1.47B

Previous: $1.29B+13.5%
Gross Profit

$1.88B

Previous: $1.86B+1.2%
Cash & Equivalents

$3B

Previous: $3.26B-8.1%
Total Assets

$202B

Previous: $171B+18.1%
Stock-Based Comp

$23M

Previous: $25M-8.0%

Revenue & EPS history

Fifth Third · Revenue · Quarterly

$1.89B

Q3 2020-4.5%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Fifth Third · $318M total across 1 segment · Q3 2020

  • Commercial Banking
    $318M

Forward guidance

Given the anticipated revenue headwinds, we are very focused on optimizing our expense base to maintain healthy levels of returns.

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 Q3 2020

Historical avgQ3 2020

+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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