Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 78

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 7
Chunk 78
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5June 30, 2024% Change in NII (FTE)Policy Limit% Change in NII (FTE)Policy LimitChange in Interest Rates (bps)12 Months13-24Months12Months13-24Months12 Months13-24Months12Months13-24Months+200 Ramp over 12 months(3.51) %(4.48)(6.00)(7.00)(3.33) %(4.62)(5.00)(6.00)+100 Ramp over 12 months(1.71)(2.03)N/AN/A(1.65)(2.21)N/AN/A-100 Ramp over 12 months0.88 0.65 N/AN/A0.54 0.11 N/AN/A-200 Ramp over 12 months1.29 (0.21)(6.00)(7.00)0.89 (0.40)(5.00)(6.00)

Table 52 presents the change in estimated net interest income for 12 month and 13-24 month horizons for alternative interest rate scenarios relative to the net interest income projection for a static rate scenario for those same time horizons. As previously mentioned, these numbers do not represent a forecast, but are instead risk measures that are monitored to evaluate the consolidated interest rate risk position of the Bancorp. At June 30, 2025, the Bancorp’s NII sensitivity in the rising-rate scenarios is negative in years one and two as interest expense is expected to increase more than interest income due to deposit repricing and balance migration estimates given the high interest rate environment. The Bancorp’s NII simulation projects an increase in NII in years one and two under the parallel 100 bps ramp decrease in interest rates and in year one in the 200 bps ramp decrease in interest rates, driven by an expectation that deposits would reprice faster than earning assets. However, in year two, some deposits have reached their floors, but assets continue to reprice to lower rates, generating less NII. The changes in the estimated NII sensitivity profile compared to June 30, 2024 were primarily attributable to increases in fixed-rate loans and the activation of previously forward-starting receive-fixed interest rate swaps, partially offset by the impacts of investment securities with a shorter life and improved deposit portfolio composition.

Tables 53 and 54 provide the sensitivity of the Bancorp’s estimated NII profile at