Company: FITBI
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000035527-25-000079
Chunk: 468

Company: FIFTH THIRD BANCORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 468
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3.02 Net interest rate spread on an FTE basis ((2) / (6)) - ((3) / (7))2.08 2.24 2.72 Efficiency ratio on an FTE basis (5) / ((1) + (4))59.2 59.6 56.2 

The Bancorp believes return on average tangible common equity is an important measure for comparative purposes with other financial institutions, but is not defined under U.S. GAAP, and therefore is considered a non-GAAP financial measure. This measure is useful for evaluating the performance of a business as it calculates the return available to common shareholders without the impact of intangible assets and their related amortization.

The following table reconciles the non-GAAP financial measure of return on average tangible common equity to U.S. GAAP:

TABLE 3:  Non-GAAP Financial Measures - Return on Average Tangible Common EquityFor the years ended December 31 ($ in millions)202420232022Net income available to common shareholders (U.S. GAAP)$2,155 2,212 2,330 Add: Intangible amortization, net of tax28 34 37 Tangible net income available to common shareholders (1)$2,183 2,246 2,367 Average Bancorp shareholders’ equity (U.S. GAAP)$19,398 17,704 19,080 Less: Average preferred stock2,116 2,116 2,116 Average goodwill4,918 4,918 4,779 Average intangible assets107 146 168 Average tangible common equity (2)$12,257 10,524 12,017 Return on average tangible common equity (1) / (2)17.8 %21.3 19.7 

The Bancorp considers various measures when evaluating capital utilization and adequacy, including the tangible equity ratio and tangible common equity ratio, in addition to capital ratios defined by the U.S. banking agencies. These calculations are intended to complement the capital ratios defined by the U.S. banking agencies for both absolute and comparative purposes. As U.S. GAAP does not include capital ratio measures, the Bancorp believes there are no comparable U.S. GAAP financial measures to these ratios. These ratios are not formally defined by U.S. GAAP or codified in the federal banking regulations and, therefore, are considered to be non-GAAP financial