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Business Segments
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Business Segments Business Segments
The Bancorp reports on three business segments: Commercial Banking, Consumer and Small Business Banking and Wealth and Asset Management. Results of the Bancorp’s business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp’s business segments are not necessarily comparable with similar information for other financial institutions. The Bancorp refines its methodologies from time to time as management’s accounting practices and businesses change.

During the first quarter of 2024, the Bancorp eliminated certain revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking. As a result, the results of operations for the Wealth and Asset Management segment for the three and six months ended June 30, 2023 were adjusted to reflect the impact of the elimination of these revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking. The impact of the elimination of these revenue sharing agreements for the years ended December 31, 2023, 2022 and 2021 resulted in a decrease in wealth and asset management revenue and an offsetting decrease in other noninterest expense within the Wealth and Asset Management segment of $186 million, $177 million and $180 million, respectively.

The Bancorp manages interest rate risk centrally at the corporate level. By employing an FTP methodology, the business 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 business 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.

The Bancorp’s methodology for allocating provision for credit losses to the business segments includes charges or benefits associated with changes in criticized commercial loan levels in addition to actual net charge-offs experienced by the loans and leases owned by each business segment. Provision for credit losses attributable to loan and lease growth and changes in ALLL factors is captured in General Corporate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Additionally, the business segments form synergies by taking advantage of relationship depth opportunities and funding operations by accessing the capital markets as a collective unit.

The following is a description of each of the Bancorp’s business 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 assets by business segment for the three months ended:
June 30, 2024 ($ in millions)Commercial
Banking		Consumer
and Small Business
Banking		Wealth
and Asset
Management		General
Corporate
and Other		Total
Net interest income$656 1,055 54 (378)1,387 
Provision for (benefit from) credit losses137 70 — (110)97 
Net interest income after provision for (benefit from) credit losses
$519 985 54 (268)

1,290 
Noninterest income:

Wealth and asset management revenue$1 62 96 — 159 
Service charges on deposits104 52 — — 156 
Commercial banking revenue142 1 1 — 144 
Card and processing revenue28 79 1 — 108 
Mortgage banking net revenue— 50 — — 50 
Leasing business revenue38 — — — 38 
Other noninterest income17 28 — (8)37 
Securities gains (losses), net(7)— — 10 3 
Total noninterest income$323 272 98 2 

695 
Noninterest expense:

Compensation and benefits$156 226 52 222 656 
Technology and communications3 8 — 103 114 
Net occupancy expense9 53 3 18 83 
Equipment expense7 13 — 18 38 
Marketing expense1 19 — 14 34 
Leasing business expense22 — — — 22 
Card and processing expense2 19 — — 21 
Other noninterest expense257 288 38 (330)253 
Total noninterest expense$457 626 93 45 

1,221 
Income (loss) before income taxes$385 631 59 (311)764 
Applicable income tax expense (benefit)65 132 12 (46)163 
Net income (loss)$320 499 47 (265)

601 
Total goodwill$2,324 2,369 225 — 4,918 
Total assets$77,123 90,242 10,480 35,417 
(a)
213,262 
(a)Includes bank premises and equipment of $16 classified as held for sale. For more information, refer to Note 7.
June 30, 2023 ($ in millions)Commercial
Banking		Consumer
and Small Business
Banking		Wealth
and Asset
Management		General
Corporate
and Other		Total
Net interest income$1,021 1,370 95 (1,029)1,457 
Provision for (benefit from) credit losses(9)65 — 121 177 
Net interest income after provision for (benefit from) credit losses$1,030 1,305 95 (1,150)

1,280 
Noninterest income:

Wealth and asset management revenue$— 52 89 2 143 
Service charges on deposits92 53 — (1)144 
Commercial banking revenue147 1 — (2)146 
Card and processing revenue23 79 1 3 106 
Mortgage banking net revenue— 59 — — 59 
Leasing business revenue47 — — — 47 
Other noninterest income28 27 1 18 74 
Securities gains (losses), net(1)— — 8 7 
Total noninterest income$336 271 91 28 

726 
Noninterest expense:

Compensation and benefits$153 222 55 220 650 
Technology and communications3 6 — 105 114 
Net occupancy expense10 52 3 18 83 
Equipment expense7 10 — 19 36 
Marketing expense1 18 — 12 31 
Leasing business expense31 — — — 31 
Card and processing expense2 19 — (1)20 
Other noninterest expense279 305 35 (353)266 
Total noninterest expense$486 632 93 20 

1,231 
Income (loss) before income taxes$880 944 93 (1,142)775 
Applicable income tax expense (benefit)169 198 20 (213)174 
Net income (loss)$711 746 73 (929)

601 
Total goodwill$2,324 2,369 226 — 4,919 
Total assets$83,238 85,755 10,691 27,592 
(a)
207,276 
(a)Includes bank premises and equipment of $22 classified as held for sale. For more information, refer to Note 7.
The following tables present the results of operations and assets by business segment for the six months ended:
June 30, 2024 ($ in millions)Commercial
Banking		Consumer and Small Business
Banking		Wealth
and Asset
Management		General
Corporate
and Other		Total
Net interest income$1,342 2,180 112 (863)2,771 
Provision for (benefit from) credit losses208 154 — (171)191 
Net interest income after provision for (benefit from) credit losses$1,134 2,026 112 (692)2,580 
Noninterest income:

Wealth and asset management revenue$2 121 197 — 320 
Service charges on deposits203 103 — — 306 
Commercial banking revenue285 3 1 (1)288 
Card and processing revenue53 154 1 2 210 
Mortgage banking net revenue— 104 — — 104 
Leasing business revenue77 — — — 77 
Other noninterest income34 55 1 (2)88 
Securities gains (losses), net(6)— — 19 13 
Total noninterest income$648 540 200 18 1,406 
Noninterest expense:

Compensation and benefits$345 460 114 490 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 
Leasing business expense48 — — — 48 
Card and processing expense4 37 1 (1)41 
Other noninterest expense520 581 74 (654)521 
Total noninterest expense$958 1,267 195 142 2,562 
Income (loss) before income taxes$824 1,299 117 (816)1,424 
Applicable income tax expense (benefit)136 273 25 (132)302 
Net income (loss)$688 1,026 92 (684)1,122 
Total goodwill$2,324 2,369 225 — 4,918 
Total assets$77,123 90,242 10,480 35,417 
(a)
213,262 
(a)Includes bank premises and equipment of $16 classified as held for sale. For more information, refer to Note 7.
June 30, 2023 ($ in millions)Commercial
Banking		Consumer and Small Business BankingWealth
and Asset
Management		General
Corporate
and Other		Total
Net interest income$1,997 2,628 196 (1,847)2,974 
Provision for credit losses37 116 — 188 341 
Net interest income after provision for credit losses$1,960 2,512 196 (2,035)2,633 
Noninterest income:

Wealth and asset management revenue$1 106 182 — 289
Service charges on deposits180 103 — (2)281 
Commercial banking revenue305 2 — — 307 
Card and processing revenue45 155 1 5 206 
Mortgage banking net revenue— 127 — — 127 
Leasing business revenue104 — — — 104 
Other noninterest income(a)
44 52 — 1 97 
Securities gains (losses), net(8)— — 19 11 
Total noninterest income$671 545 183 23 1,422 
Noninterest expense:

Compensation and benefits$343 446 116 502 1,407 
Technology and communications5 13 — 214 232 
Net occupancy expense(c)
20 104 6 34 164 
Equipment expense14 21 — 38 73 
Marketing expense1 35 1 23 60 
Leasing business expense65 — — — 65 
Card and processing expense5 38 — (1)42 
Other noninterest expense583 619 71 (754)519 
Total noninterest expense$1,036 1,276 194 56 2,562 
Income (loss) before income taxes$1,595 1,781 185 (2,068)1,493 
Applicable income tax expense (benefit)305 373 39 (383)334 
Net income (loss)$1,290 1,408 146 (1,685)1,159 
Total goodwill$2,324 2,369 226 — 4,919 
Total assets$83,238 85,755 10,691 27,592 
(b)
207,276 
(a)Includes impairment charges of $1 for bank premises and equipment recorded in Consumer and Small Business Banking. For more information, refer to Note 7 and Note 22.
(b)Includes bank premises and equipment of $22 classified as held for sale. For more information, refer to Note 7.
(c)Includes impairment losses and termination charges of $1 for ROU assets related to certain operating leases. For more information, refer to Note 9.