The provision for credit losses totaled $119 million in the current quarter, down 25% Y/Y.

The Cincinnati-based company reported an interest income increase of 44% Y/Y to $2.54 billion, with a net interest income (NII) of $1.45 billion (down 4% Y/Y).

Fifth Third attributed the NII decline to the impact of the deposit mix shift from demand to interest-bearing accounts and continued deposit repricing dynamics.

Compared to the year-ago quarter, the net interest margin decreased 24 bps to 2.98%.

The CET1 capital ratio was 9.8%, compared with 9.14% in the year-ago period. 

Net charge-offs were $124 million in the current quarter, resulting in an NCO ratio of 0.41%.

Compared to the year-ago quarter, net charge-offs increased $62 million, and the NCO ratio increased 20 bps, reflecting a normalization from near-historically low net charge-offs in the year-ago quarter. 

Total average loans and leases stood at $122.27 billion at the end of the quarter.

Fifth Third, under the helm of CEO Tim Spence, increased its quarterly cash dividend on its common shares by 2 cents, or 6%, to 35 cents per share for the third quarter of 2023.

Price Action: FITB shares are trading higher by 0.65% to $24.80 on the last check Thursday.