Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 236

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 236
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 rates. In the event of continued rate cuts, this approach assumes a weighted-average falling-rate interest-bearing deposit beta at the end of the ramped parallel scenarios of approximately 60%-65% for both a 100 bps and 200 bps decrease in rates. In falling rate scenarios, deposit rate floors are utilized to ensure modeled deposit rates will not become negative. NII simulation modeling assumes no lag between the timing of changes in market rates and the timing of deposit repricing despite such timing lags having occurred in prior rate cycles. Future actual performance will be dependent on market conditions, the level of competition for deposits and the magnitude of interest rate changes. The Bancorp provides sensitivity analysis in Tables 53 and 54 for key assumptions related to its deposit modeling, including beta and demand deposit balance performance.

The Bancorp continually evaluates the sensitivity of its interest rate risk measures to these important deposit modeling assumptions. The Bancorp also regularly monitors the sensitivity of other important modeling assumptions, such as loan and security prepayments and early withdrawals on fixed-rate customer liabilities.

The following table shows the Bancorp’s estimated NII sensitivity profile and policy limits as of:

TABLE 52:  Estimated NII Sensitivity Profile and Policy LimitsSeptember 30, 2025September 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(2.90) %(2.93)(6.00)(7.00)(3.89) %(5.18)(5.00)(6.00)+100 Ramp over 12 months(1.28)(0.83)NANA(1.90)(2.45)N/AN/A-100 Ramp over 12 months0.64 (1.20)NANA1.06 0.57 N/AN/A-200 Ramp over 12 months0.45 (4.83)(6.00)(7.00)1.79 1.08 (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