Fifth Third Bancorp (NASDAQ:FITB) stock rose 0.50% (As on January 19, 11:39:41 AM UTC-4, Source: Google Finance) after the company surpasses analysts’ expectations for the fourth quarter of FY 23. Fifth Third Bancorp Q4 pretax profit USD 657 million vs. IBES estimate USD 798.1 million. The company has reported net income available to common shareholders of $492 million, down 30% year over year. As of Dec 31, 2023, average loan and lease balances, and average total deposits were $118.8 billion and $169.4 billion, respectively. Average loans and deposits increased 2.3% on a sequential basis. The company reported a provision for credit losses of $55 million compared with $180 million in the year-ago quarter.

However, net loss charge-offs in the fourth quarter were $96 million or 0.32% of average loans and leases (on an annualized basis) compared with the $68 million or 0.22% witnessed in the prior-year quarter. The Tier 1 risk-based capital ratio was 11.59% compared with the 10.53% posted at the end of the prior-year quarter. The CET1 capital ratio was 10.29%, up from the 9.28% recorded at the end of the year-ago quarter. Also, the leverage ratio was 8.73% compared with the year-earlier quarter’s 8.56%.

FITB in the fourth quarter of FY 23 has reported the adjusted earnings per share of 99 cents, beating the analysts’ estimates for the adjusted earnings per share of 90 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of $2.16 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $2.15 billion. Compared to the year-ago quarter, NII decreased $159 million, or 10%, reflecting the impact of the deposit mix shift from demand to interest-bearing accounts and continued deposit repricing dynamics, partially offset by higher loan yields. Compared to the year-ago quarter, NIM decreased 50 bps.

In addition, compared to the year-ago quarter, service charges on deposits increased $6 million, or 4%, reflecting an increase in commercial treasury management fees, partially offset by a decrease in consumer deposit fees. Commercial banking revenue increased $5 million, or 3%, primarily driven by higher institutional brokerage revenue, corporate bond fees and business lending fees, partially offset by lower M&A advisory revenue and client financial risk management revenue. Mortgage banking net revenue increased $3 million, or 5%, primarily reflecting a decrease in MSR asset decay and an increase in origination fees and gains on loans sales. Wealth and asset management revenue increased $8 million, or 6%, driven by higher brokerage fees and personal asset management revenue.