Fifth Third Bancorp Releases Stress Capital Buffer Requirement
June 28 2024 - 3:35PM
Business Wire
Results reaffirm Fifth Third’s balance sheet
strength
Fifth Third Bancorp (Nasdaq: FITB) today released its
preliminary stress capital buffer requirement resulting from the
Federal Reserve Board’s (“FRB”) annual bank stress test. Fifth
Third’s preliminary stress capital buffer under the FRB severely
adverse scenario is 3.2%, effective October 1, 2024. Fifth Third's
Common Equity Tier 1 (“CET1”) ratio at March 31, 2024 of 10.5%
significantly exceeds the regulatory minimum of 4.5% plus the
stress capital buffer, reflecting strong capital levels.
In September, Fifth Third intends to recommend to its Board of
Directors a 2 cent per share increase to the quarterly cash
dividend on its common stock, consistent with its planned capital
actions submitted to the Federal Reserve. Additionally, Fifth Third
may elect to repurchase shares consistent with its publicly stated
CET1 target of 10.5%. All future capital actions are subject to
evaluation of Fifth Third’s performance, the state of the economic
environment, market conditions, regulatory factors, other risks and
uncertainties, and approval by the Board of Directors.
“The stress test results highlight our strong capital levels,
resilient balance sheet and profitability, and our simple, yet
well-diversified, business model. We continue to have the capacity
to increase our common dividend, to return capital through share
repurchases consistent with our prior commentary, and to grow
capital to support organic investments and lending in the
communities we serve,” said Tim Spence, Chairman, CEO, and
President of Fifth Third Bancorp. “Our Board of Directors will
continue to make quarterly decisions on returning capital based on
the economic outlook and the strength of our performance.”
About Fifth Third
Fifth Third is a bank that’s as long on innovation as it is on
history. Since 1858, we’ve been helping individuals, families,
businesses and communities grow through smart financial services
that improve lives. Our list of firsts is extensive, and it’s one
that continues to expand as we explore the intersection of
tech-driven innovation, dedicated people, and focused community
impact. Fifth Third is one of the few U.S.-based banks to have been
named among Ethisphere's World’s Most Ethical Companies® for
several years. With a commitment to taking care of our customers,
employees, communities and shareholders, our goal is not only to be
the nation’s highest performing regional bank, but to be the bank
people most value and trust.
Fifth Third Bank, National Association is a federally chartered
institution. Fifth Third Bancorp is the indirect parent company of
Fifth Third Bank and its common stock is traded on the NASDAQ®
Global Select Market under the symbol “FITB”. Investor information
and press releases can be viewed at www.53.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240628762496/en/
Matt Curoe (Investor Relations) Matt.Curoe@53.com | 513-534-2345
Jennifer Hendricks Sullivan (Media Relations)
Jennifer.Hendricks.Sullivan@53.com | 614-744-7693
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