Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 237

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 237
---
 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 September 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 year one under the parallel 100 bps ramp decrease and 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 September 30, 2024 were primarily attributable to an improved deposit portfolio composition and a reduction in outstanding receive-fixed interest rate swaps partially offset by increases in fixed-rate loans.

Tables 53 and 54 provide the sensitivity of the Bancorp’s estimated NII profile at September 30, 2025 to changes to certain deposit balance and deposit repricing sensitivity (beta) assumptions.

50

Table of ContentsManagement’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The following table includes the Bancorp’s estimated NII sensitivity profile with an immediate $1 billion decrease and an immediate $1 billion increase in demand deposit balances as of September 30, 2025:

TABLE 53:  Estimated NII Sensitivity Profile at September 30, 2025 with a $1 Billion Change in Demand Deposit Assumption% Change in NII (FTE)Immediate $1 Billion BalanceDecreaseImmediate $1 Billion BalanceIncreaseChange in Interest Rates (bps)12 Months13-24Months12Months13-24Months+200 Ramp over 12 months(3.75)%(3.88)(2.05)(1.97)+100 Ramp over 12 months(2.05)(1.63)(0.52)(0.03)-100 Ramp over 12 months0.06 (1.69)1.23 (0.71)-200 Ramp over 12 months(0.05)(5.16)0.95 (4.49)

The following table includes the Bancorp’s estimated NII sensitivity profile with a 10% increase and a 10% decrease to the corresponding deposit beta assumptions as of September 30,