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Business Segments
 9 Months Ended
Sep. 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 nine months ended September 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:
September 30, 2024 ($ in millions)Commercial
Banking		Consumer
and Small Business
Banking		Wealth
and Asset
Management		General
Corporate
and Other		Total
Net interest income$669 1,031 50 (329)1,421 
Provision for credit losses76 78 — 6 160 
Net interest income after provision for credit losses
$593 953 50 (335)

1,261 
Noninterest income:

Wealth and asset management revenue$1 64 98 — 163 
Service charges on deposits104 56 — 1 161 
Commercial banking revenue162 1 — — 163 
Card and processing revenue27 78 1 — 106 
Mortgage banking net revenue— 50 — — 50 
Leasing business revenue43 — — — 43 
Other noninterest income11 31 — (27)15 
Securities gains, net9 — — 1 10 
Total noninterest income$357 280 99 (25)

711 
Noninterest expense:

Compensation and benefits$151 206 54 279 690 
Technology and communications3 7 — 111 121 
Net occupancy expense9 52 3 17 81 
Equipment expense7 13 — 18 38 
Marketing expense1 15 — 10 26 
Leasing business expense21 — — — 21 
Card and processing expense2 20 — — 22 
Other noninterest expense276 291 38 (360)245 
Total noninterest expense$470 604 95 75 

1,244 
Income (loss) before income taxes$480 629 54 (435)728 
Applicable income tax expense (benefit)87 132 12 (76)155 
Net income (loss)$393 497 42 (359)

573 
Total goodwill$2,324 2,369 225 — 4,918 
Total assets$75,594 89,890 10,669 38,165 
(a)
214,318 
(a)Includes bank premises and equipment of $24 classified as held for sale. For more information, refer to Note 7.
September 30, 2023 ($ in millions)Commercial
Banking		Consumer
and Small Business
Banking		Wealth
and Asset
Management		General
Corporate
and Other		Total
Net interest income$1,007 1,390 98 (1,057)1,438 
Provision for credit losses— 105 1 13 119 
Net interest income after provision for credit losses$1,007 1,285 97 (1,070)

1,319 
Noninterest income:

Wealth and asset management revenue$— 53 92 — 145 
Service charges on deposits95 55 — (1)149 
Commercial banking revenue154 1 — (1)154 
Card and processing revenue23 78 — 3 104 
Mortgage banking net revenue— 57 — — 57 
Leasing business revenue58 — — — 58 
Other noninterest income24 30 2 (1)55 
Securities losses, net(1)— — (6)(7)
Total noninterest income$353 274 94 (6)

715 
Noninterest expense:

Compensation and benefits$156 217 53 203 629 
Technology and communications4 7 — 104 115 
Net occupancy expense(b)
12 52 3 17 84 
Equipment expense7 11 — 19 37 
Marketing expense1 17 — 17 35 
Leasing business expense29 — — — 29 
Card and processing expense3 19 — (1)21 
Other noninterest expense266 301 34 (363)238 
Total noninterest expense$478 624 90 (4)

1,188 
Income (loss) before income taxes$882 935 101 (1,072)846 
Applicable income tax expense (benefit)164 196 22 (196)186 
Net income (loss)$718 739 79 (876)

660 
Total goodwill$2,324 2,369 226 — 4,919 
Total assets$82,829 88,230 10,538 31,370 
(a)
212,967 
(a)Includes bank premises and equipment of $22 classified as held for sale. For more information, refer to Note 7.
(b)Includes impairment losses and termination charges of $1 for ROU assets related to certain operating leases. For more information, refer to Note 9.
The following tables present the results of operations and assets by business segment for the nine months ended:
September 30, 2024 ($ in millions)Commercial
Banking		Consumer and Small Business
Banking		Wealth
and Asset
Management		General
Corporate
and Other		Total
Net interest income$2,012 3,210 162 (1,192)4,192 
Provision for (benefit from) credit losses284 232 — (165)351 
Net interest income after provision for (benefit from) credit losses$1,728 2,978 162 (1,027)3,841 
Noninterest income:

Wealth and asset management revenue$2 185 296 — 483 
Service charges on deposits307 159 1 — 467 
Commercial banking revenue446 4 1 — 451 
Card and processing revenue80 232 2 2 316 
Mortgage banking net revenue— 153 1 — 154 
Leasing business revenue120 — — — 120 
Other noninterest income46 86 1 (30)103 
Securities gains, net3 — — 20 23 
Total noninterest income$1,004 819 302 (8)2,117 
Noninterest expense:

Compensation and benefits$496 666 168 769 2,099 
Technology and communications10 22 1 318 351 
Net occupancy expense27 159 9 56 251 
Equipment expense21 38 — 55 114 
Marketing expense2 55 1 34 92 
Leasing business expense69 — — — 69 
Card and processing expense6 57 1 (1)63 
Other noninterest expense797 871 112 (1,012)768 
Total noninterest expense$1,428 1,868 292 219 3,807 
Income (loss) before income taxes$1,304 1,929 172 (1,254)2,151 
Applicable income tax expense (benefit)224 405 36 (208)457 
Net income (loss)$1,080 1,524 136 (1,046)1,694 
Total goodwill$2,324 2,369 225 — 4,918 
Total assets$75,594 89,890 10,669 38,165 
(a)
214,318 
(a)Includes bank premises and equipment of $24 classified as held for sale. For more information, refer to Note 7.
September 30, 2023 ($ in millions)Commercial
Banking		Consumer and Small Business BankingWealth
and Asset
Management		General
Corporate
and Other		Total
Net interest income$3,006 4,016 294 (2,905)4,411 
Provision for credit losses37 221 1 201 460 
Net interest income after provision for credit losses$2,969 3,795 293 (3,106)3,951 
Noninterest income:

Wealth and asset management revenue$2 159 273 — 434
Service charges on deposits275 159 — (3)431 
Commercial banking revenue459 3 1 (2)461 
Card and processing revenue69 231 2 8 310 
Mortgage banking net revenue— 184 — — 184 
Leasing business revenue162 — — — 162 
Other noninterest income(a)
68 83 2 (1)152 
Securities gains (losses), net(9)— — 12 3 
Total noninterest income$1,026 819 278 14 2,137 
Noninterest expense:

Compensation and benefits$499 663 169 705 2,036 
Technology and communications10 20 1 316 347 
Net occupancy expense(c)
32 156 9 51 248 
Equipment expense22 32 — 56 110 
Marketing expense2 52 1 41 96 
Leasing business expense94 — — — 94 
Card and processing expense8 57 1 (3)63 
Other noninterest expense849 920 105 (1,118)756 
Total noninterest expense$1,516 1,900 286 48 3,750 
Income (loss) before income taxes$2,479 2,714 285 (3,140)2,338 
Applicable income tax expense (benefit)470 569 59 (579)519 
Net income (loss)$2,009 2,145 226 (2,561)1,819 
Total goodwill$2,324 2,369 226 — 4,919 
Total assets$82,829 88,230 10,538 31,370 
(b)
212,967 
(a)Includes impairment charges of $1 for bank premises and equipment recorded in both Consumer and Small Business Banking and General Corporate and Other. For more information, refer to Note 7 and Note 23.
(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 $2 for ROU assets related to certain operating leases. For more information, refer to Note 9.