Fifth Third Bancorp reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a decline in net income and net interest income compared to the previous fiscal period. For Q3 2024, net income available to common shareholders was $532 million, or $0.78 per diluted share, down from $623 million, or $0.91 per diluted share in Q3 2023. For the nine months ended September 30, 2024, net income remained stable at $1.6 billion, or $2.28 per diluted share, compared to $1.7 billion, or $2.50 per diluted share in the same period of 2023.
Total revenue for Q3 2024 was $2.1 billion, with net interest income on a fully taxable equivalent (FTE) basis at $1.4 billion, a decrease of $18 million from the prior year. The decline in net interest income was attributed to higher funding costs due to increased market interest rates and a shift in deposit balances to higher-yielding products. The net interest margin also fell to 2.90% from 2.98% year-over-year. For the nine months, net interest income was $4.2 billion, down $219 million from the same period in 2023.
Noninterest income for Q3 2024 was $711 million, a slight decrease from $715 million in Q3 2023. The nine-month total noninterest income decreased by $20 million to $2.1 billion, primarily due to lower leasing business revenue and commercial banking revenue. Noninterest expenses increased by $56 million for Q3 2024, totaling $1.2 billion, driven by higher compensation and benefits expenses.
The provision for credit losses for Q3 2024 was $160 million, up from $119 million in Q3 2023, reflecting increased net charge-offs. The total net charge-offs for the three months ended September 30, 2024, were $142 million, compared to $124 million for the same period in 2023. The allowance for loan and lease losses (ALLL) increased slightly to $2.3 billion as of September 30, 2024.
Strategically, Fifth Third Bancorp has continued to focus on enhancing its capital position, with a common equity tier 1 (CET1) capital ratio of 10.75% as of September 30, 2024. The Bancorp also engaged in accelerated share repurchase transactions totaling $200 million for Q3 2024 and $325 million for the nine months ended September 30, 2024. Additionally, the company transferred $12.6 billion of securities from available-for-sale to held-to-maturity to reduce capital volatility.
Overall, Fifth Third Bancorp's performance reflects challenges in net interest income and credit losses, alongside strategic initiatives aimed at maintaining capital strength and managing interest rate risk.
About FIFTH THIRD BANCORP
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