Key facts
- Fifth Third Bancorp's second-quarter profit increased due to higher net interest income and fee growth.
- Net interest income rose over 48% year-over-year to $2.22 billion.
- Capital markets fees increased by 71% to $154 million.
- Wealth and asset management revenue grew by 54% to $256 million.
- Adjusted tangible net income available to common shareholders was $986 million.
- The bank projects annual net interest income to be between $8.74 billion and $8.80 billion.
Fifth Third Bancorp reported a rise in its second-quarter profit, primarily driven by an increase in net interest income and growth in its capital markets and wealth management divisions. The bank's net interest income, which represents the difference between interest earned on loans and paid on deposits, grew by over 48% compared to the previous year, reaching $2.22 billion.
Average portfolio loans and leases expanded to $177.57 billion from $123.07 billion a year ago. Regional banks like Fifth Third have been expanding their capital markets operations to capitalize on increased dealmaking activity. Globally, announced mergers and acquisitions have exceeded $3 trillion so far this year.
Fifth Third's capital markets fees saw a substantial surge of 71%, amounting to $154 million, while revenue from wealth and asset management increased by 54% to $256 million. The lender's adjusted tangible net income available to common shareholders climbed to $986 million from $608 million in the same period last year. Looking ahead, Fifth Third anticipates its annual net interest income to fall between $8.74 billion and $8.80 billion.