Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 50

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 7
Chunk 50
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 ContentsManagement’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

General Corporate and Other

General Corporate and Other includes the unallocated portion of the investment securities portfolio, securities gains and losses, certain non-core deposit funding, unassigned equity, unallocated provision for credit losses or a benefit from the reduction of the ACL, the payment of preferred stock dividends and certain support activities and other items not attributed to its segments.

Net interest income on an FTE basis increased $121 million and $609 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year primarily driven by decreases in FTP credits on deposits allocated to the segments, decreases in interest expense on retail brokered CDs and long-term debt and increases in interest income on commercial loans, partially offset by decreases in FTP charges on loans and leases allocated to the segments and decreases in interest income on other short-term investments. The decrease in FTP charges allocated to the segments was driven by decreases in market interest rates, primarily affecting the variable-rate asset portfolios. The decrease in FTP credits allocated to the segments was driven by lower FTP credit rates paid on deposits as a result of lower market interest rates and reduced liquidity premium assumptions. Under the Bancorp’s internal reporting methodology, the Bancorp insulates the segments from interest rate risk associated with fixed-rate lending by transferring this risk to General Corporate and Other through the FTP methodology. As a result, the amount of FTP credits on deposits earned by the segments generally increases or decreases at a faster pace than the amount of allocated FTP charges on loans and leases.

The benefit from credit losses was $122 million and $100 million for the three and nine months ended September 30, 2025, respectively, compared to a provision for credit losses of $6 million and a benefit from credit losses of $165 million for the same periods in the prior year. The benefit from credit losses for the three months ended September 30, 2025 was primarily driven by the benefit from the reduction of the ACL captured in General Corporate and Other. The decrease in the benefit from credit losses for the nine months ended September 30, 2025 was primarily driven by an increase in the provision for the reserve for unfunded commitments as well as a decrease in allocations to the segments.

Noninterest income increased $31 million and $51 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year primarily driven by decreases in the loss on the