On this page of StockholderLetter.com we present the latest annual shareholder letter from FIFTH THIRD BANCORP — ticker symbol FITB. Reading current and past FITB letters to shareholders can bring important insights into the investment thesis.
• 
2/25/2025 Letter Continued (Full PDF)
•
4/7/2023 FITB Stockholder Letter
• 2/28/2024 FITB Stockholder Letter
• More "Banking & Savings" Category Stockholder Letters
•
FITB Benford's Law Stock Score = 100
2/25/2025 Letter Continued (Full PDF)
•
4/7/2023 FITB Stockholder Letter•
2/28/2024 FITB Stockholder Letter•
More "Banking & Savings" Category Stockholder Letters•
FITB Benford's Law Stock Score = 100FITB Shareholder/Stockholder Letter Transcript:
PERFORMANCE COMPARISON FIFTH TH IRD BA N CO RP ANNUAL REPORT | 1 PERFORMANCE COMPARISON FIFTH TH IRD BA N CO RP ANNUAL REPORT | 2 20 24 From our Chairman, CEO and President Dear Shareholders, At Fifth Third, we believe great banks distinguish themselves not by how they perform in benign environments, but rather by how they navigate uncertain ones. Our operating priorities are stability, profitability and growth in that order. We achieve them by obsessing over the details in our day-to-day operations while simultaneously investing for the long term. Throughout 2024, the industry outlook for interest rates, loan growth, regulation and capital markets activity all changed significantly. Despite the uncertain environment, I am proud to report Fifth Third continued to deliver strong results for our shareholders. Our adjusted full-year return on assets, return on equity and efficiency ratio all finished among the top in our peer group. Loans ended the year up 2% on an end-of-period basis as activity accelerated through year-end. Based on the FDIC s annual summary of deposits, we finished #1 among all large banks in retail branch deposit growth (on a capped basis) for the second consecutive year. As important, our results were predictable and Our operating priorities are stability, profitability and growth in that order. We achieve them by obsessing over the details in our day-to-day operations while simultaneously investing for the long term. inflected ahead of our peers. We were one of only two banks in our peer group to achieve the full-year guidance we provided in January for net interest income (NII), fees, expenses, pre-provision net revenue and net charge-offs. Our net interest margin inflected in the first quarter, as we said it would. NII inflected in the second quarter, as we said it would, and positive operating leverage returned in the fourth quarter on both a sequential and a year-overyear basis, again, as we said it would. FIFTH TH IRD BA N CO RP ANNUAL REPORT | 1 20 24 Between share price appreciation and dividends, we generated a total shareholder return of 26% for 2024. More notably, for long-term investors, we finished #1, $1.6B #1 and #2 in five-year, seven-year and 10-year total shareholder return among our peers that did not participate in an FDIC-assisted transaction. Strategically, we continued to invest in growing our We returned over $1.6 billion to shareholders during 2024 while also increasing our CET1 ratio nearly 30 basis points to 10.6%. Southeast presence, in differentiating our product offerings through innovation and excellent service, and in modernizing our operating platforms. In the Southeast, we grew consumer households by 6% and retail deposits by 16%. During the year, we added 31 new branch locations and increased our commercial banking relationship manager headcount by 25% in the Southeast and other expansion markets. We also were named #1 for Retail Banking Customer Strong profitability and disciplined balance sheet Satisfaction in Florida by J.D. Power as part of its management allowed us to resume share repurchases 2024 U.S. Retail Banking Satisfaction Study . This is in the second quarter and to raise our dividend for a significant achievement given both our significant the ninth consecutive year. We returned over $1.6 presence in Florida and the fact that 17 of the 20 billion of capital to shareholders during 2024 while largest U.S. banks maintain a branch presence in also increasing our CET1 ratio nearly 30 basis points the state. to 10.6%. Annual Total Shareholder Returns Cumulatively Outpace Peers 200% 191% 150% 147% 105% 100% 50% 0% 2014 2015 2016 2017 FITB FIFTH TH IRD BA N CO RP 2018 2019 Peer Median 2020 2021 2022 2023 2024 Top Quartile ANNUAL REPORT | 2 20 24 In commercial payments, we processed more than Payments Processed ($ in Trillions) $17 trillion in volume during the year. Our softwareenabled managed services products and Newline , our embedded payments platform, led the way on growth. Tearsheet, Global Finance and This Week in FinTech all recognized Fifth Third with awards for payments product innovation. In Wealth & Asset 11% 5-year CAGR $15 Management, total assets under management grew 17% for the year, and, for the sixth consecutive year, we were recognized as a Best Private Bank by $17 $10 Global Finance. We also continued to make strong progress on modernizing our operating platforms. In 2024, we completed general ledger and clearing platform conversions and launched time deposits on a new 2019 2023 2024 modern core. Our value streams, inspired by lean manufacturing techniques, reached $150 million in annualized savings, with total company headcount between the two- and 10-year points in the curve declining 1% year over year. These initiatives continue banks with low-cost retail deposits and diverse loan to reduce manual work, improve execution quality origination platforms should be positioned to deliver and provide funding to invest in growth strategies. strong returns. We have not seen an environment like Talent and culture remain a strength for Fifth Third. Despite competition for talent, Fifth Third employee attrition is at a 15-year low and in the top quartile for talent retention among all banks. I attribute this performance to the strength of our relational culture, this since 1994-1995. If improving business sentiment and clarity on tax policy lead to increased business investment, we could also see a return to GDP+ loan growth across the industry for the first time in several years. our focus on internal development, a shared sense With that said, the global economy is a complex, that we are winning, and the fact that we are deeply adaptive system. Complex systems react to change invested in the communities where we operate. In in unexpected ways, and we are seeing a lot of 2024, our employees volunteered over 110,000 hours change being introduced in a brief period of time. and served on over 1,200 boards. Our posture is hopeful but also prepared. In this The investor and author James Grant wrote that environment, I thought it might be useful to share progress is cumulative in science and engineering, some of the foundational beliefs that inform our but cyclical in finance. As we begin 2025, there are operating priorities and investment strategies. many reasons to feel optimistic for the U.S. banking industry. Banks should benefit from a more favorable regulatory environment than we have had for some time. We hope to have certainty around capital and liquidity reform, improvements to the stress-testing program, and a slowdown in new rulemaking. Delivering consistency and predictability in the face of uncertainty When we talk to investors, the questions we get most frequently are variations on the themes of what is If the current interest rate environment holds with your outlook for the economy and how much rates meaningfully above zero and some steepness higher can you move your profitability targets if FIFTH TH IRD BA N CO RP ANNUAL REPORT | 3