Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 226

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 226
---
 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 LimitsJune 30, 2025June 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