Fifth Third Bancorp (NASDAQ: FITB) reported Q3 EPS of $0.78, $0.18 better than the analyst estimate of $0.60.

Key Highlights

• Very strong reported and adjusted return metrics, reflecting strong operating results
• Credit losses well below previous expectations with a NCO ratio of 0.35%, the lowest level since 2Q19
• PPNR(a) exceeded previous guidance, led by strong fees and better-than-expected NII performance (interest-bearing core deposit costs down 14 bps, more than previous guidance)
• 3Q20 NIM was negatively impacted ~48 bps due to excess liquidity and Paycheck Protection Program (PPP) loans
• Strong balance sheet; CET1 ratio of 10.14% well above target range, with record balance sheet liquidity
• Grew tangible book value per share for six consecutive quarters

CEO Commentary

"Our third quarter results were very strong despite the challenging operating dynamics. We remain intently focused on taking appropriate actions for our customers, our employees, and our communities during these uncertain times. I am very proud of the way our employees have responded to support our customers and each other.

Our financial performance once again highlighted the strength of our franchise and our ability to navigate the current environment. Our already strong capital and liquidity levels further improved this quarter, and our credit performance was better than previous expectations, indicative of our balance sheet strength which will serve us well throughout this challenging environment.

We have consistently communicated our through-the-cycle principles of disciplined client selection, conservative underwriting, and an overall balance sheet management approach focused on long-term performance. We have also executed numerous strategic actions over the last several years in anticipation of an eventual downturn in the economy.

Given the anticipated revenue headwinds, we are very focused on optimizing our expense base to maintain healthy levels of returns. To that end, we took proactive measures during the quarter to ensure Fifth Third continues to generate sustainable, long-term value for shareholders. We continue to believe we are well-positioned to emerge from the pandemic as a top performing regional bank."

-Greg D. Carmichael, Chairman, President and CEO

For earnings history and earnings-related data on Fifth Third Bancorp (FITB) click here.