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Business Segments | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Business Segments | Business Segments The Bancorp has three reportable segments: Commercial Banking, Consumer and Small Business Banking and Wealth and Asset Management. The Bancorp’s reportable segments have been determined based on its management structure and management accounting practices. This presentation is aligned with how results are reviewed internally by the Bancorp’s Chairman, Chief Executive Officer and President, which the Bancorp has determined to be its Chief Operating Decision Maker (“CODM”). For each of the Bancorp’s segments, the CODM primarily uses segment income before income taxes on an FTE basis to allocate resources such as employees and capital. The CODM also monitors trends in net interest income, noninterest income and noninterest expense to evaluate the financial performance of each segment and make resource allocation decisions. These decisions also consider segment-specific events and circumstances, general market conditions, forecasts and variances to annual budgets. Additionally, the CODM uses segment average assets as a measure to allocate resources to the segments. The Bancorp manages interest rate risk centrally at the corporate level. By employing an FTP methodology, the 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 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. Refer to Note 31 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024 for additional information about the Bancorp’s FTP process and other allocation methodologies. In January 2025, the Bancorp realigned its reporting structure and moved certain business banking customer relationships and relationship management personnel to the Consumer and Small Business Banking segment from the Commercial Banking segment to improve alignment of customer acquisition and servicing resources with customer product and service demand. In conjunction with this change, the loans, deposits and operating results associated with the affected business banking customer relationships were reclassified from the Commercial Banking segment to the Consumer and Small Business Banking segment effective January 1, 2025, along with $73 million of associated goodwill. This change was applied retrospectively to all prior periods presented. The following table summarizes the impacts of the movements from the Commercial Banking segment to the Consumer & Small Business Banking segment for the years ended December 31:
($ in millions) | 2024 | 2023 | 2022
Net interest income (FTE) | $ | 103 |  | 135 | 74
Income before income taxes (FTE) | 68 | 105 | 43
Average assets | 714 | 686 | 660
The following is a description of each of the Bancorp’s 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 average assets by segment for the three months ended:
March 31, 2025 ($ in millions) | Commercial Banking |  | Consumer and Small Business Banking | Wealth and Asset Management | General Corporate and Other(c) |  | Total
Net interest income (FTE)(a) | $ | 552 |  |  | 975 |  | 49 |  | (134) |  |  | 1,442 |
Provision for credit losses | 80 |  |  | 84 |  | — |  | 10 |  |  | 174 |
Net interest income after provision for credit losses | $ | 472 |  |  | 891 |  | 49 |  | (144) |  |  | 1,268 |
Noninterest income: |  |  |  |  |  |  |
Wealth and asset management revenue | $ | — |  |  | 66 |  | 106 |  | — |  |  | 172 |
Commercial payments revenue | 133 |  |  | 20 |  | — |  | — |  |  | 153 |
Consumer banking revenue | — |  |  | 135 |  | 1 |  | 1 |  |  | 137 |
Capital markets fees | 90 |  |  | — |  | 1 |  | (1) |  |  | 90 |
Commercial banking revenue | 79 |  |  | 1 |  | — |  | — |  |  | 80 |
Mortgage banking net revenue | — |  |  | 57 |  | — |  | — |  |  | 57 |
Other noninterest income | 6 |  |  | 2 |  | 1 |  | 5 |  |  | 14 |
Securities losses, net | (7) |  |  | — |  | — |  | (2) |  |  | (9) |
Total noninterest income | $ | 301 |  |  | 281 |  | 109 |  | 3 |  |  | 694 |
Noninterest expense: |  |  |  |  |  |  |
Compensation and benefits | $ | 178 |  |  | 236 |  | 62 |  | 274 |  |  | 750 |
Technology and communications | 3 |  |  | 7 |  | — |  | 113 |  |  | 123 |
Net occupancy expense | 9 |  |  | 54 |  | 3 |  | 21 |  |  | 87 |
Equipment expense | 8 |  |  | 16 |  | — |  | 18 |  |  | 42 |
Loan and lease expense | 7 |  |  | 18 |  | — |  | 5 |  |  | 30 |
Marketing expense | 1 |  |  | 19 |  | — |  | 8 |  |  | 28 |
Card and processing expense | 3 |  |  | 17 |  | 1 |  | — |  |  | 21 |
Other noninterest expense(b) | 302 |  |  | 283 |  | 40 |  | (402) |  |  | 223 |
Total noninterest expense | $ | 511 |  |  | 650 |  | 106 |  | 37 |  |  | 1,304 |
Income (loss) before income taxes (FTE)(a) | $ | 262 |  |  | 522 |  | 52 |  | (178) |  |  | 658 |
Average assets | $ | 77,940 |  |  | 54,406 |  | 4,657 |  | 73,555 |  |  | 210,558 |
(a)Includes FTE adjustments of $3 for Commercial Banking and $2 for General Corporate and Other. (b)Includes segment expenses which are classified as other noninterest expense and allocations of corporate and shared services expenses. (c)General Corporate and Other is not a reportable segment and is presented for reconciliation purposes.
March 31, 2024 ($ in millions) | Commercial Banking |  | Consumer and Small Business Banking | Wealth and Asset Management | General Corporate and Other(c) |  | Total
Net interest income (FTE)(a) | $ | 663 |  |  | 1,152 |  | 59 |  | (484) |  |  | 1,390 |
Provision for (benefit from) credit losses | 71 |  |  | 84 |  | — |  | (61) |  |  | 94 |
Net interest income after provision for (benefit from) credit losses | $ | 592 |  |  | 1,068 |  | 59 |  | (423) |  |  | 1,296 |
Noninterest income: |  |  |  |  |  |  |
Wealth and asset management revenue | $ | 1 |  |  | 59 |  | 101 |  | — |  |  | 161 |
Commercial payments revenue | 125 |  |  | 20 |  | — |  | — |  |  | 145 |
Consumer banking revenue | — |  |  | 132 |  | 1 |  | 2 |  |  | 135 |
Capital markets fees | 96 |  |  | 1 |  | — |  | — |  |  | 97 |
Commercial banking revenue | 85 |  |  | — |  | — |  | — |  |  | 85 |
Mortgage banking net revenue | — |  |  | 54 |  | — |  | — |  |  | 54 |
Other noninterest income | 17 |  |  | 1 |  | — |  | 5 |  |  | 23 |
Securities gains, net | 1 |  |  | — |  | — |  | 9 |  |  | 10 |
Total noninterest income | $ | 325 |  |  | 267 |  | 102 |  | 16 |  |  | 710 |
Noninterest expense: |  |  |  |  |  |  |
Compensation and benefits | $ | 186 |  |  | 237 |  | 62 |  | 268 |  |  | 753 |
Technology and communications | 4 |  |  | 7 |  | — |  | 106 |  |  | 117 |
Net occupancy expense | 9 |  |  | 54 |  | 3 |  | 21 |  |  | 87 |
Equipment expense | 7 |  |  | 13 |  | — |  | 17 |  |  | 37 |
Loan and lease expense | 6 |  |  | 17 |  | — |  | 6 |  |  | 29 |
Marketing expense | 1 |  |  | 22 |  | — |  | 9 |  |  | 32 |
Card and processing expense | 2 |  |  | 19 |  | — |  | (1) |  |  | 20 |
Other noninterest expense(b) | 275 |  |  | 281 |  | 38 |  | (327) |  |  | 267 |
Total noninterest expense | $ | 490 |  |  | 650 |  | 103 |  | 99 |  |  | 1,342 |
Income (loss) before income taxes (FTE)(a) | $ | 427 |  |  | 685 |  | 58 |  | (506) |  |  | 664 |
Average assets | $ | 77,415 |  |  | 51,363 |  | 4,413 |  | 80,012 |  |  | 213,203 |
(a)Includes FTE adjustments of $4 for Commercial Banking and $2 for General Corporate and Other. (b)Includes segment expenses which are classified as other noninterest expense and allocations of corporate and shared services expenses. (c)General Corporate and Other is not a reportable segment and is presented for reconciliation purposes.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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