Fifth Third Bancorp announced improved second-quarter profits on Friday, with the regional bank crediting higher net interest income along with strong fee growth in its capital markets and wealth management divisions.
Regional banks have generally been benefiting from more stable funding costs and steady customer activity, while capital markets and wealth management operations have offered an extra lift even amid ongoing economic uncertainty.
Here is a closer look at the numbers behind the bank’s quarterly performance:
Net interest income — the gap between what the bank collects in loan interest and what it pays out on deposits — climbed more than 48% to $2.22 billion compared to the same quarter a year ago.
Average portfolio loans and leases expanded to $177.57 billion, up from $123.07 billion during the prior year period.
Banks like Fifth Third have been growing their capital markets operations in recent years to take advantage of increased deal activity under the Trump administration, capturing higher fee income in the process.
According to data from Dealogic, the total value of global mergers and acquisitions announced so far this year has already crossed the $3 trillion mark.
Fifth Third’s capital markets fee revenue surged 71% to $154 million during the quarter, while wealth and asset management revenue climbed 54% to $256 million.
The bank’s adjusted tangible net income available to common shareholders reached $986 million in the second quarter, a notable jump from $608 million recorded in the same quarter a year earlier.
Looking ahead, the lender is projecting full-year net interest income to land somewhere between $8.74 billion and $8.80 billion.
