Fifth Third Bancorp (NASDAQ: FITB) is scheduled to report third-quarter 2024 results on Oct. 18 before the opening bell. Quarterly revenues are expected to have registered growth in the to-be-reported quarter, while earnings are likely to have declined on a year-over-year basis.
In the last reported quarter, the bank's earnings surpassed the Zacks Consensus Estimate. Results benefited from a fall in expenses and provisions for credit losses, along with strong capital ratios. However, a decline in net interest income (NII), and lower loan and deposit balances were major headwinds.
This Cincinnati, OH-based lender has an impressive earnings surprise history. Its earnings beat estimates in the trailing four quarters, the surprise being 7.91%, on average.
Fifth Third Bancorp Price and EPS Surprise
Fifth Third Bancorp price-eps-surprise | Fifth Third Bancorp Quote
Here are some factors that are expected to have impacted FITB's quarterly performance.
Loans & NII: On Sept. 18, the Federal Reserve cut interest rates by 50 basis points to 4.75-5% for the first time since March 2020. While the rate cut is not expected to significantly affect FITB's NII in the quarter under review, greater clarity on the Fed's rate cut path, along with a stabilizing macroeconomic environment, is likely to have aided the lending outlook.
Per the Fed's latest data, lending activities continued at a decent pace in the third quarter. This is expected to have supported the company's average interest-earning assets in the third quarter of 2024.
The Zacks Consensus Estimate for average interest-earning assets of $195 billion for the quarter indicates marginal growth from the prior quarter's actual. Our estimate suggests the metric to be $194.21 billion.
FITB expects third-quarter total average loans and leases to be unchanged from the second quarter's reported figure of $117.3 billion. We estimate the metric to be $117.1 billion, hinting at a ...
