Fifth Third Bancorp (FITB) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 20, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Fifth Third Bancorp Second Quarter 2023 Earnings Conference Call. [Operator Instructions]

Chris Doll, Head of Investor Relations. You may begin your conference.

Chris Doll

Good morning, everyone. Welcome to the Fifth Third Second Quarter 2023 Earnings Call. This morning, our President and CEO, Tim Spence; and CFO, Jamie Leonard, will provide an overview of our second quarter results and outlook. Our Treasurer, Bryan Preston and Chief Credit Officer, Greg Schroeck, have also joined the Q&A portion of the call.

Please review the cautionary statements on our materials, which can be found in our earnings release and presentation. These materials contain information regarding the use of non-GAAP measures, reconciliations to the GAAP results and forward-looking statements about Fifth Third's performance. These statements speak only as of July 20, 2023, and Fifth Third undertakes no obligation to update them. Following prepared remarks by Tim and Jamie, we will open the call for questions.

With that, let me turn it over to Tim.

Timothy Spence

Thanks, Chris, and good morning, everyone. Before we get to the quarter, I'd like to welcome our new Chief Credit Officer, Greg Schroeck to the call. Greg has been a part of Fifth Third for 35 years, and during that time, you see more than a few credit cycles.

He previously held leadership roles in both credit risk and the line of business, including serving as our Chief Commercial Credit Officer for several years and is our Head of Leasing, asset-based lending and structured finance. We're fortunate to have him as part of the Fifth Third executive team.

Despite heightened market volatility over the past four months, Fifth Third has delivered consistent top quartile financial results while investing strategically to position the bank for the long term. Our operating priorities have been and continue to be stability, profitability and growth in that order.

Earlier today, we reported second quarter earnings per share of $0.87, excluding items noted in the release, a 10% increase compared to the year ago quarter. Adjusted revenue increased 9%, reflecting our diverse fee sources and resilient balance sheet. Expenses increased 4%, excluding items noted in the release. And credit quality was strong with net charge-offs and early stage delinquencies remaining below normalized levels.