v3.25.2
Business Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Business Segments Business Segments
The Bancorp has three reportable segments: Commercial Banking, Consumer and Small Business Banking and Wealth and Asset Management. The Bancorp’s reportable segments have been determined based on its management structure and management accounting practices. This presentation is aligned with how results are reviewed internally by the Bancorp’s Chairman, Chief Executive Officer and President, which the Bancorp has determined to be its Chief Operating Decision Maker (“CODM”). For each of the Bancorp’s segments, the CODM primarily uses segment income before income taxes on an FTE basis to allocate resources such as employees and capital. The CODM also monitors trends in net interest income, noninterest income and noninterest expense to evaluate the financial performance of each segment and make resource allocation decisions. These decisions also consider segment-specific events and circumstances, general market conditions, forecasts and variances to annual budgets. Additionally, the CODM uses segment average assets as a measure to allocate resources to the segments.

The Bancorp manages interest rate risk centrally at the corporate level. By employing an FTP methodology, the segments are insulated from most benchmark interest rate volatility, enabling them to focus on serving customers through the origination of loans and acceptance of deposits. The FTP methodology assigns charge and credit rates to classes of assets and liabilities, respectively, based on the estimated amount and timing of the cash flows for each transaction. Assigning the FTP rate based on matching the duration of cash flows allocates interest income and interest expense to each segment so its resulting net interest income is insulated from future changes in benchmark interest rates. The Bancorp’s FTP methodology also allocates the contribution to net interest income of the asset-generating and deposit-providing businesses on a duration-adjusted basis to better attribute the driver of the performance. As the asset and liability durations are not perfectly matched, the residual impact of the FTP methodology is captured in General Corporate and Other. The charge and credit rates are determined using the FTP rate curve, which is based on an estimate of Fifth Third’s marginal borrowing cost in the wholesale funding markets. The FTP curve is constructed using the U.S. swap curve, brokered CD pricing and unsecured debt pricing.

The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of behavioral assumptions, such as prepayment rates on interest-earning assets and the estimated durations for indeterminate-lived deposits. Key assumptions, including the credit rates provided for deposit accounts, are reviewed annually. Credit rates for deposit products and charge rates for loan products may be reset more frequently in response to changes in market conditions.

Refer to Note 31 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024 for additional information about the Bancorp’s FTP process and other allocation methodologies.

In January 2025, the Bancorp realigned its reporting structure and moved certain business banking customer relationships and relationship management personnel to the Consumer and Small Business Banking segment from the Commercial Banking segment to improve alignment of customer acquisition and servicing resources with customer product and service demand. In conjunction with this change, the loans, deposits and operating results associated with the affected business banking customer relationships were reclassified from the Commercial Banking segment to the Consumer and Small Business Banking segment effective January 1, 2025, along with $73 million of associated goodwill. This change was applied retrospectively to all prior periods presented. The following table summarizes the impacts of the movements from the Commercial Banking segment to the Consumer & Small Business Banking segment for the years ended December 31:

($ in millions)202420232022
Net interest income (FTE)$103 13574
Income before income taxes (FTE)6810543
Average assets714686660

The following is a description of each of the Bancorp’s segments and the products and services they provide to their respective client bases.

Commercial Banking offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. In addition to the traditional lending and depository offerings, Commercial Banking products and services include global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance.

Consumer and Small Business Banking provides a full range of deposit and loan products to individuals and small businesses through a network of full-service banking centers and relationships with indirect and correspondent loan originators in addition to providing products designed to meet the specific needs of small businesses, including cash management services. Consumer and Small Business Banking includes the Bancorp’s residential mortgage, home equity loans and lines of credit, credit cards, automobile and other indirect lending, solar energy installation and other consumer lending activities. Residential mortgage activities include the origination, retention and servicing of residential mortgage loans, sales and securitizations of those loans and all associated hedging activities. Indirect lending activities include extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers and marine dealers. Solar energy installation loans and certain other consumer loans are originated through a network of contractors and installers.
Wealth and Asset Management provides a full range of wealth management solutions for individuals, companies and not-for-profit organizations, including wealth planning, investment management, banking, insurance, trust and estate services. These offerings include retail brokerage services for individual clients, advisory services for institutional clients including middle market businesses, non-profits, states and municipalities, and wealth management strategies and products for high net worth and ultra-high net worth clients.

The following tables present the results of operations and average assets by segment for the three months ended:
June 30, 2025 ($ in millions)Commercial
Banking		Consumer
and Small Business
Banking		Wealth
and Asset
Management
General
Corporate
and Other(c)
Total
Net interest income (FTE)(a)
$595 1,085 57 (237)1,500 
Provision for (benefit from) credit losses79 84 (2)12 173 
Net interest income after provision for (benefit from) credit losses
$516 1,001 59 (249)1,327 
Noninterest income:

Wealth and asset management revenue$— 66 100 — 166 
Commercial payments revenue132 22 — (2)152 
Consumer banking revenue— 146 1 — 147 
Capital markets fees89 1 — — 90 
Commercial banking revenue78 1 — — 79 
Mortgage banking net revenue— 56 — — 56 
Other noninterest income22 1 — 21 44 
Securities gains, net— — — 16 16 
Total noninterest income$321 293 101 35 750 
Noninterest expense:

Compensation and benefits$151 230 55 262 698 
Technology and communications3 8 — 115 126 
Net occupancy expense9 54 3 17 83 
Equipment expense8 13 — 20 41 
Marketing expense1 31 — 11 43 
Loan and lease expense8 21 — 7 36 
Card and processing expense3 19 — — 22 
Other noninterest expense(b)
270 270 37 (362)215 
Total noninterest expense$453 646 95 70 1,264 
Income (loss) before income taxes (FTE)(a)
$384 648 65 (284)813 
Average assets$78,309 55,696 4,855 71,694 210,554 
(a)Includes FTE adjustments of $3 for Commercial Banking and $2 for General Corporate and Other.
(b)Includes segment expenses which are classified as other noninterest expense and allocations of corporate and shared services expenses.
(c)General Corporate and Other is not a reportable segment and is presented for reconciliation purposes.
June 30, 2024 ($ in millions)Commercial
Banking		Consumer
and Small Business
Banking		Wealth
and Asset
Management
General
Corporate
and Other(c)
Total
Net interest income (FTE)(a)
$634 1,081 54 (376)1,393 
Provision for (benefit from) credit losses137 70 — (110)97 
Net interest income after provision for (benefit from) credit losses$497 1,011 54 (266)1,296 
Noninterest income:

Wealth and asset management revenue$1 62 96 — 159 
Commercial payments revenue132 22 — — 154 
Consumer banking revenue— 138 1 — 139 
Capital markets fees91 1 1 — 93 
Commercial banking revenue89 1 — — 90 
Mortgage banking net revenue— 50 — — 50 
Other noninterest income14 1 — (8)7 
Securities gains (losses), net(7)— — 10 3 
Total noninterest income$320 275 98 2 695 
Noninterest expense:

Compensation and benefits$153 229 52 222 656 
Technology and communications3 8 — 103 114 
Net occupancy expense8 54 3 18 83 
Equipment expense7 13 — 18 38 
Marketing expense1 19 — 14 34 
Loan and lease expense6 22 — 5 33 
Card and processing expense2 19 — — 21 
Other noninterest expense(b)
265 274 38 (335)242 
Total noninterest expense$445 638 93 45 1,221 
Income (loss) before income taxes (FTE)(a)
$372 648 59 (309)770 
Average assets$76,912 51,837 4,283 79,443 212,475 
(a)Includes FTE adjustments of $4 for Commercial Banking and $2 for General Corporate and Other.
(b)Includes segment expenses which are classified as other noninterest expense and allocations of corporate and shared services expenses.
(c)General Corporate and Other is not a reportable segment and is presented for reconciliation purposes.
The following tables present the results of operations and average assets by segment for the six months ended:
June 30, 2025 ($ in millions)Commercial
Banking		Consumer and Small Business
Banking		Wealth
and Asset
Management
General
Corporate
and Other(c)
Total
Net interest income (FTE)(a)
$1,147 2,060 106 (371)2,942 
Provision for (benefit from) credit losses159 168 (2)22 347 
Net interest income after provision for (benefit from) credit losses$988 1,892 108 (393)2,595 
Noninterest income:

Wealth and asset management revenue$1 132 205 — 338 
Commercial payments revenue265 41 1 (2)305 
Consumer banking revenue— 282 1 1 284 
Capital markets fees178 1 1 (1)179 
Commercial banking revenue157 2 1 — 160 
Mortgage banking net revenue— 112 1 — 113 
Other noninterest income28 3 1 26 58 
Securities gains (losses), net(7)— — 14 7 
Total noninterest income$622 573 211 38 1,444 
Noninterest expense:

Compensation and benefits$329 465 117 536 1,447 
Technology and communications7 15 — 228 250 
Net occupancy expense18 108 7 38 171 
Equipment expense16 29 — 37 82 
Marketing expense2 50 — 19 71 
Loan and lease expense14 39 1 12 66 
Card and processing expense6 36 1 — 43 
Other noninterest expense(b)
572 553 77 (764)438 
Total noninterest expense$964 1,295 203 106 2,568 
Income (loss) before income taxes (FTE)(a)
$646 1,170 116 (461)1,471 
Average assets$78,125 55,054 4,757 72,620 210,556 
(a)Includes FTE adjustments of $6 for Commercial Banking and $4 for General Corporate and Other.
(b)Includes segment expenses which are classified as other noninterest expense and allocations of corporate and shared services expenses.
(c)General Corporate and Other is not a reportable segment and is presented for reconciliation purposes.
June 30, 2024 ($ in millions)Commercial
Banking		Consumer and Small Business BankingWealth
and Asset
Management
General
Corporate
and Other(c)
Total
Net interest income (FTE)(a)
$1,298 2,232 112 (859)2,783 
Provision for (benefit from) credit losses208 154 — (171)191 
Net interest income after provision for (benefit from) credit losses$1,090 2,078 112 (688)2,592 
Noninterest income:

Wealth and asset management revenue$2 121 197 — 320
Commercial payments revenue255 43 — — 298 
Consumer banking revenue— 273 1 1 275 
Capital markets fees188 1 1 — 190 
Commercial banking revenue173 1 — — 174 
Mortgage banking net revenue— 104 — — 104 
Other noninterest income30 3 1 (2)32 
Securities gains (losses), net(6)— — 19 13 
Total noninterest income$642 546 200 18 1,406 
Noninterest expense:

Compensation and benefits$339 466 114 490 1,409 
Technology and communications8 14 — 209 231 
Net occupancy expense18 107 6 39 170 
Equipment expense14 26 — 36 76 
Marketing expense1 42 — 23 66 
Loan and lease expense12 39 — 11 62 
Card and processing expense4 37 1 (1)41 
Other noninterest expense(b)
540 558 74 (665)507 
Total noninterest expense$936 1,289 195 142 2,562 
Income (loss) before income taxes (FTE)(a)
$796 1,335 117 (812)1,436 
Average assets$77,163 51,600 4,348 79,728 212,839 
(a)Includes FTE adjustments of $8 for Commercial Banking and $4 for General Corporate and Other.
(b)Includes segment expenses which are classified as other noninterest expense and allocations of corporate and shared services expenses.
(c)General Corporate and Other is not a reportable segment and is presented for reconciliation purposes.