Fifth Third Bancorp (FITB) 2024 Q2 法說會逐字稿

At this time, I would like to welcome everyone to the second quater2024 Fifth Third Bancorp earnings conference call. Today's conference is being recorded. (Operator Instructions).

此時此刻，我歡迎大家參加 2024 年第二季 Fifth Third Bancorp 財報電話會議。今天的會議正在錄製中。（操作員說明）。

At this time, I would like to turn the conference over to Matt Curoe. Please go ahead.

這次，我想把會議交給馬特·庫羅（Matt Curoe）。請繼續。

Good morning, everyone. Welcome to Fifth Third, second quarter 2024 earnings call. This morning, our Chairman, CEO and President, Tim Spence, in CFO, Bryan Preston, will provide an overview of our second quarter results and outlook. Our Chief Credit Officer, Greg Schroeck, has also joined for the Q&A portion of the call.

大家早安。歡迎參加 2024 年第二季第五次財報電話會議。今天早上，我們的董事長、執行長兼總裁 Tim Spence 和首席財務長布萊恩普雷斯頓 (Bryan Preston) 將概述我們第二季度的業績和前景。我們的首席信貸官 Greg Schroeck 也參加了電話會議的問答部分。

Please review the cautionary statements in our materials, which can be found in our earnings release and presentation materials, contain information regarding the use of non-GAAP measures and reconciliations to the GAAP results as well as forward-looking statements about Fifth Third performance.

請查看我們資料中的警示性聲明，這些聲明可以在我們的收益發布和演示材料中找到，其中包含有關使用非 GAAP 衡量標準和 GAAP 結果調節的信息以及有關 Fifth Third 業績的前瞻性聲明。

These statements speak only as of July 19, 2024, and Fifth Third undertakes no obligation to update them. Following prepared remarks by Tim and Bryan, who will open up the call for questions.

這些聲明僅截至 2024 年 7 月 19 日，Fifth Third 不承擔更新這些聲明的義務。在蒂姆和布萊恩準備好的發言之後，他們將開始提問。

With that, let me turn it over to Tim.

接下來，讓我把它交給提姆。

Thanks, Matt, and good morning, everyone. Of Fifth Third. We believe great banks distinguish themselves not by how they performed in benign environments, but rather how they navigate challenging months. In that context, I'm very pleased with how you're executing as a company in what continues to be an uncertain economic and interest rate backdrop, our focus on stability, profitability and growth in that that order has produced consistent predictable results and strong profitability since the bank failures last spring.

謝謝馬特，大家早安。第五第三。我們相信，偉大的銀行之所以能脫穎而出，不在於它們在良性環境中的表現，而是它們如何應對充滿挑戰的月份。在這種情況下，我對你們公司在經濟和利率仍然不確定的背景下的執行方式感到非常滿意，我們對穩定性、盈利能力和增長的關注，因為這一順序產生了一致的可預測結果和強勁的業績。

And we remain confident in our ability to deliver PPNR and earnings outcomes in line with or better than our original expectations for the full morning to earnings per share of $0.81 or $0.86, excluding certain items outlined on page 2 of the release, which exceeded the guidance we provided in our first quarter earnings call.

我們仍然相信我們有能力實現PPNR 和盈利結果，符合或優於我們對整個上午的每股收益0.81 美元或0.86 美元的最初預期，不包括新聞稿第2 頁概述的某些項目，該項目超出了指導我們在第一季的財報電話會議中提供了這一資訊。

Our resilient balance sheet, diversified fee revenues and expense discipline continued to produce strong profitability. Our adjusted return on tangible common equity of 15.1% and adjusted return on assets of 1.22% over the last 12 months, rank as the best of all peers who have reported so far, and Vince most stable when compared to the same period last year.

我們富有彈性的資產負債表、多元化的費用收入和支出紀律持續產生強勁的獲利能力。過去 12 個月，我們的調整後有形普通股回報率為 15.1%，調整後資產回報率為 1.22%，在迄今為止報告的所有同行中名列前茅，與去年同期相比，Vince 最為穩定。

The second quarter marked the first sequential growth in NII since 2022 and inventory for the second consecutive quarter. That trajectory, along with the benefits we are seeing from strategic investments and continued expense discipline should allow us to return to positive operating leverage in the fourth quarter of this year and carry over into next year.

第二季度是NII自2022年以來首次持續成長，庫存也連續第二季出現成長。這一軌跡，加上我們從策略性投資和持續的支出紀律中看到的好處，應該使我們能夠在今年第四季恢復正營運槓桿，並延續到明年。

Strategically, our investments in the Southeast and middle market expansion markets in commercial payments and in wealth and asset management continue to produce strong growth in market share gains. We grew consumer households by 3% year-over-year in the second quarter, punctuated by 6% growth in our Southeast markets, middle market, loan production and new quality relationships with the strongest in Indiana, the Carolinas, Texas and California.

從策略上講，我們在東南和中部市場拓展市場的商業支付以及財富和資產管理領域的投資繼續帶來市場份額收益的強勁增長。第二季度，我們的消費者家庭年增了 3%，東南市場、中間市場、貸款生產以及與印第安納州、卡羅來納州、德克薩斯州和加利福尼亞州最強勁的新品質關係增長了 6%。

In our industry verticals, production was strongest for federal government spending has had an outsized benefit, including in aerospace and defense contractors and with manufacturing and infrastructure construction firms commercial payments. revenue grew 12% year-over-year, driven by our investments in our software enabled managed services and new line item bedded payments business commercial payments is a scale business for us.

在我們的垂直產業中，生產最強勁的聯邦政府支出帶來了巨大的好處，包括航空航天和國防承包商以及製造和基礎設施建設公司的商業付款。營收年增 12%，這得益於我們對軟體支援的託管服務和新的單項支付業務的投資，商業支付對我們來說是一項規模業務。

In the first half of 2024 alone, we processed more than 8 trillion in volume from nearly half of all new treasury management relationships we added year to date were payments lead and have no credit extended wealth and asset management fee revenues grew 11% year-over-year, and total assets under management grew to $65 billion at 10% increase compared to the same quarter last year.

光是在2024 年上半年，我們就處理了超過8 兆美元的交易量，其中近一半是我們今年新增的新資金管理關係，這些關係是付款方式，沒有信貸擴展財富，資產管理費收入年比成長11%全年管理資產總額增至 650 億美元，較去年同期成長 10%。

Fifth, third securities, the private bank, and fifth, third, wealth advisors, the RIA. platform we launched in 2022 all generated strong performance, digital banker and Global Private Banker recognized this again is the best private bank for high-net-worth clients for the third consecutive year.

第五、第三證券，私人銀行，第五、第三，財富顧問，RIA。我們在 2022 年推出的平台都產生了強勁的業績，《數位銀行家》和《全球私人銀行家》連續第三年再次認可我們是高淨值客戶的最佳私人銀行。

Turning to capital, our strong profitability allowed us to resume share repurchases during the quarter, while also increasing our CET1 ratio to 10.6%. The Federal Reserve's stress test results highlighted our strong capital levels, consistent profitability and simple yet well-diversified business model. Importantly, we maintain the capacity to increase our dividend support organic growth and continued share repurchases.

談到資本，我們強勁的獲利能力使我們能夠在本季恢復股票回購，同時也將我們的 CET1 比率提高到 10.6%。聯準會的壓力測試結果突顯了我們強大的資本水準、持續的獲利能力以及簡單而多元化的商業模式。重要的是，我們保持增加股息的能力，支持有機成長和持續股票回購。

As we look ahead to the rest of the year, we remain cautious due to the wide range of potential economic and geo-political scenarios that could unfold. As a result, we will remain disciplined and will not chase loan growth at the expense of our return targets will continue to maintain flexibility by staying liquid, neutrally positioned and broadly diversified, all while investing in the long term.

展望今年剩餘時間，由於可能出現各種潛在的經濟和地緣政治情景，我們保持謹慎態度。因此，我們將保持紀律，不會以犧牲回報目標為代價來追求貸款成長，將繼續透過保持流動性、中性定位和廣泛多元化來保持靈活性，同時進行長期投資。

Before I hand it over to Bryan to provide additional details on our second quarter results and our outlook for the remainder of the year, I want to express my gratitude to our employees for the consistent hard work, innovation and passion for service that you bring to our customers. This morning, Euromoney named us the best super regional bank in the US as part of their 2024 awards for excellence. I'm honored to be part of your team with that Bryan over to you.

在我將其交給Bryan 提供有關我們第二季度業績和今年剩餘時間的展望的更多詳細信息之前，我想對我們的員工表示感謝，感謝你們為我們帶來的持續辛勤工作、創新和服務熱情。今天早上，《歐洲貨幣》將我們評為美國最佳超級區域銀行，作為其 2024 年卓越獎的一部分。我很榮幸能成為你們團隊的一員，布萊恩就是你們的一員。

Thanks, Tim, and thank you to everyone joining us today. Our second quarter results were strong, reflecting our balance sheet strength, diversified revenue streams and disciplined approach to expense and credit risk management. For more than a year, we have emphasized the importance of maintaining balance sheet strength and flexibility in an uncertain economic and interest rate environment.

謝謝蒂姆，也感謝今天加入我們的所有人。我們第二季的業績強勁，反映出我們的資產負債表實力、多元化的收入來源以及嚴格的費用和信用風險管理方法。一年多來，我們一直強調在不確定的經濟和利率環境下維持資產負債表實力和彈性的重要性。

This approach has proven effective as the market's expectations on rate cuts changed dramatically from the start of 2024 quarter. Despite this change in rate outlook or NII has been consistent with the performance trajectory we discussed back in December, increasing sequentially during the second quarter from the first quarter, bottoming and minimum has increased for two consecutive quarter from the fourth quarter low. Additionally, our full year 2024 and NII outlook remains unchanged.

事實證明，這種方法是有效的，因為市場對降息的預期從 2024 年季度開始就發生了巨大變化。儘管利率前景或 NII 的變化與我們在 12 月討論的業績軌跡一致，從第一季度到第二季度連續增長，但觸底和最低值已連續兩個季度從第四季度低點上升。此外，我們對 2024 年全年和 NII 的展望保持不變。

As Tim mentioned, our profitability remains strong and stable, which allowed us to resume share repurchases early and grow our CET1 ratio to 10.6%, up 30 basis points. As noted on Page 2 of our earnings release, our reported results were impacted by certain items, including the valuation of the Visa total return swap, an update to the FDIC special assessment and the impact of certain legal settlements and customer remediation.

正如蒂姆所提到的，我們的獲利能力保持強勁和穩定，這使我們能夠提前恢復股票回購，並將我們的 CET1 比率提高到 10.6%，上升 30 個基點。正如我們財報第 2 頁所述，我們報告的業績受到某些項目的影響，包括 Visa 總回報掉期的估值、FDIC 特別評估的更新以及某些法律和解和客戶補救措施的影響。

Excluding the impact of these items, adjusted net interest income for the quarter increased 1% from the prior quarter to $1.4 billion, and adjusted net interest margin improved three basis points compared to the prior quarter. Increased yields on new loan production contributed to this improvement to offset the impact of increased interest-bearing core deposit costs, which were well managed and increased only four basis points compared to the prior quarter.

剔除這些項目的影響，本季調整後淨利息收入季增1%，達到14億美元，調整後淨利息收益率季增3個基點。新貸款產量的增加促成了這一改善，抵消了計息核心存款成本增加的影響，該成本管理良好，與上一季相比僅增加了四個基點。

While total average portfolio loans and leases were flat sequentially, we continue to benefit from fixed rate asset repricing led by our indirect auto business. Average total consumer portfolio loans and leases were flat sequentially, primarily reflecting the increase in indirect auto originations, offset by a decrease in other consumer loan balances.

儘管平均投資組合貸款和租賃總額環比持平，但我們繼續受益於間接汽車業務主導的固定利率資產重新定價。平均消費者投資組合貸款和租賃總額環比持平，主要反映了間接汽車發放的增加，但被其他消費者貸款餘額的減少所抵消。

Average commercial portfolio loans decreased 1% due to lower demand from corporate banking borrowers period and commercial revolver utilization nation remained at 36%, consistent with the prior quarter. Middle market. Loan production increased 2% compared to the prior quarter, driven by strong performance in our Southeast markets, primarily in the Carolinas, Georgia and Florida, as well as continued success in Indiana, Texas and California.

由於企業銀行借款人的需求下降，平均商業組合貸款下降了 1%，商業左輪手槍利用率仍維持在 36%，與上一季一致。中間市場。由於東南市場（主要是卡羅來納州、喬治亞州和佛羅裡達州）的強勁表現，以及印第安納州、德克薩斯州和加利福尼亞州的持續成功，貸款產量較上一季度增長了 2%。

The pipeline for the second half of the years improving, and we are continuing to invest in our middle market banking teams, including our recently announced expansion and the Alabama market. However, we remain cautious on commercial loan growth expectations in the second half of the year as customer demand for credit remains muted.

下半年的管道正在改善，我們將繼續投資於我們的中間市場銀行團隊，包括我們最近宣布的擴張和阿拉巴馬州市場。然而，由於客戶信貸需求依然低迷，我們對下半年商業貸款成長預期保持謹慎。

Our investment in analytics continues to help us optimize the positive outcomes demonstrated by our strong deposit growth in 2023 and prudent management of deposit costs in 2024 our strong track record of liquidity management, combined with data-driven analytics, will aid in maintaining pricing discipline and optimizing liability costs.

我們對分析的投資持續幫助我們優化正面成果，這些成果體現在2023 年強勁的存款成長和2024 年對存款成本的審慎管理。助於維持定價紀律和優化責任成本。

Average core deposits were flat sequentially, driven by higher CD and consumer savings and money market balances, offset by lower interest checking and commercial demand balances. Our current focus remains on prudently managing deposit costs with the Fed on hold and preparing for potential rate cuts later this year. By segment. Average consumer deposits increased 2% sequentially, while both commercial and wealth deposits decreased 2% for the Southeast branch investments are driving both strong household growth and granular insured deposits.

平均核心存款環比持平，這是由於存款準備金和消費者儲蓄以及貨幣市場餘額增加所推動，但被利息檢查和商業需求餘額減少所抵消。我們目前的重點仍然是在聯準會按兵不動的情況下審慎管理存款成本，並為今年稍後可能的降息做好準備。按分段。平均消費者存款較上季成長 2%，而東南分行投資的商業和財富存款均下降 2%，推動了強勁的家庭成長和細化保險存款。

Demand deposit balances as a percent of core deposits were 25% as of the end of this quarter, stable with the prior quarter. Migration of DDA balances continues to slow consistent with our prior expectations for a higher for longer rate environment. We expect DDA mix to fall below 25% during the third quarter and stay around 24% for the remainder of the year.

截至本季末，活期存款餘額佔核心存款的比例為 25%，與上季持平。DDA 餘額遷移持續放緩，這與我們先前對長期較高利率環境的預期一致。我們預計第三季 DDA 比例將降至 25% 以下，並在今年剩餘時間內保持在 24% 左右。

We ended the quarter with full category 1 LCR compliance at 137%, and our loan to core deposit ratio with 72%. We are well positioned to continue to grow net interest income and our balance sheet provides flexibility to navigate the evolving economic and interest rate conditions.

本季末，我們的 1 類 LCR 完全合規率為 137%，貸款與核心存款比率為 72%。我們處於有利地位，可以繼續增加淨利息收入，我們的資產負債表提供了靈活性，可以應對不斷變化的經濟和利率狀況。

Moving on to fees. Excluding the impacts of security gains and the Visa total return swap, adjusted non-interest income decreased $32 million or 4% compared to the year-ago quarter. This year-over-year decrease is attributable to a $34 million private equity gain recognized in the second quarter of 2023. Within our businesses commercial payments in wealth and asset management fees continued to deliver strong results, both achieving double digit revenue growth over the prior year, driven by our continued strategic growth investments in products and sales personnel.

繼續討論費用。排除擔保收益和 Visa 總回報掉期的影響，調整後的非利息收入與去年同期相比減少了 3,200 萬美元，即 4%。這一同比下降歸因於 2023 年第二季確認的 3,400 萬美元私募股權收益。在我們的業務範圍內，在我們對產品和銷售人員的持續策略成長投資的推動下，財富商業支付和資產管理費繼續取得強勁業績，收入均較上年實現兩位數增長。

These areas are not only fast growing, but our sizable contributors to fee income and profitability today, given our strength and scale in these businesses, we expect these businesses to continue to deliver strong revenue growth. Our market sensitive businesses such as mortgage and commercial customer hedging have been impacted by the higher rate environment through reduced demand for credit and reduced market volatility.

這些領域不僅成長迅速，而且對我們今天的費用收入和盈利能力做出了相當大的貢獻，鑑於我們在這些業務中的實力和規模，我們預計這些業務將繼續帶來強勁的收入成長。我們的市場敏感業務（例如抵押貸款和商業客戶對沖）受到較高利率環境的影響，信貸需求減少，市場波動減少。

The combined impact for these businesses was a $20 million decrease versus the prior year. Leasing business revenue was down $9 million versus the prior year due to our decision to deemphasize operating leases, but it is offset by a $9 million decrease in leasing business expense. Securities gains of $3 million reflected the mark-to-market impact of our non-qualified deferred compensation plan, which is more than offsetting compensation expense.

這些業務的綜合影響比前一年減少了 2,000 萬美元。由於我們決定不再重視經營租賃，租賃業務收入比前一年減少了 900 萬美元，但被租賃業務費用減少 900 萬美元所抵銷。300 萬美元的證券收益反映了我們的不合格遞延薪酬計劃按市值計價的影響，這足以抵消薪酬費用。

While we have continued to invest in strategic growth initiatives and technology, we manage our adjusted non-interest expense flat to the year-ago quarter due to our focus on expense discipline and the ongoing benefits from the process automation efforts. Adjusted non-interest expense decreased 7% sequentially, primarily due to seasonal items during the first quarter related to compensation awards and payroll taxes.

雖然我們繼續投資於策略性成長計畫和技術，但由於我們注重費用紀律和流程自動化工作的持續效益，我們管理調整後的非利息費用與去年同期持平。調整後的非利息支出較上季下降 7%，主要是因為第一季與薪資獎勵和薪資稅相關的季節性項目。

Moving to credit consistent with our guidance the net charge-off ratio was 49 basis points, up 11 basis points sequentially, driven by two commercial credits for which we had previously established specific reserves. consumer charge-offs were 57 basis points, a reduction of 10 basis points sequentially, primarily due to improvement in our indirect consumer secured portfolio.

轉向信貸，與我們的指導一致，淨沖銷率為 49 個基點，環比上升 11 個基點，這是由我們之前建立的特定準備金的兩項商業信貸推動的。消費者沖銷為 57 個基點，比上一季減少 10 個基點，主要是由於我們間接消費者擔保投資組合的改善。

Other credit metrics showed strong sequential improvement with the ratio of early-stage delinquencies 30 to 89 days past due decreased 3 basis points to 26 basis points, which is near the lowest levels we've experienced over the last decade. NAPS decreased by $100 million or 13% during the quarter. And the NPA ratio decreased 9 basis points to 35 basis points.

其他信貸指標顯示出強勁的環比改善，逾期 30 至 89 天的早期拖欠率下降了 3 個基點至 26 個基點，接近過去十年來的最低水平。本季 NAPS 減少 1 億美元，即 13%。NPA 比率下降 9 個基點至 35 個基點。

In commercial, our credit discipline is grounded in generating and maintaining granular high quality relationships and by managing concentration risks to any asset class region or industry. We continue to see no material side kind of broad-based industry or geographic weakness and believe potential future commercial credit losses will be idiosyncratic in nature.

在商業領域，我們的信用紀律是基於建立和維持精細的高品質關係，並管理任何資產類別地區或行業的集中風險。我們仍然沒有看到任何實質的廣泛行業或地理弱點，並相信未來潛在的商業信用損失本質上將是特殊的。

In consumer, our focus remains on lending to homeowners, which is a segment less impacted by inflationary pressures. We have maintained our conservative underwriting policies and will continue to evaluate our positioning as economic conditions change.

在消費者方面，我們的重點仍然是向房主提供貸款，這是受通膨壓力影響較小的部分。我們維持保守的承保政策，並將隨著經濟狀況的變化繼續評估我們的定位。

Our ACL coverage ratio decreased 4 basis points to 2.08% and included a $47 million reserve release, driven by the previously mentioned specific reserves. We continue to utilize Moody's macroeconomic scenarios when evaluating our allowance then made no changes to our scenario weightings. Moving to capital, we ended the quarter with a CET1 ratio of 10.6%, significantly exceeding our new buffered minimum of 7.7%, reflecting strong capital levels.

我們的 ACL 覆蓋率下降 4 個基點至 2.08%，其中包括在前面提到的特定準備金的推動下釋放了 4700 萬美元的準備金。在評估我們的準備金時，我們繼續利用穆迪的宏觀經濟情景，然後沒有改變我們的情景權重。轉向資本，本季結束時，我們的 CET1 比率為 10.6%，顯著超過我們新的緩衝最低值 7.7%，反映了強勁的資本水準。

As we assess our capital priorities, we believe that 10.5% isn't appropriate near term operating level. During the quarter, we completed a $125 million in share repurchases, which reduced our share count by $3.5 million shares. Our pro forma CET1 ratio, including the AOCI. impact of the securities portfolio, is 8.0%. We expect continued improvement in the unrealized securities losses in our portfolio, given that 61% of the AFS portfolio is in bullet are locked out securities, which provides a high degree of certainty to our principle cash flow expectations.

在評估我們的資本優先事項時，我們認為 10.5% 的近期營運水準並不合適。本季度，我們完成了 1.25 億美元的股票回購，這使我們的股票數量減少了 350 萬美元。我們的預估 CET1 比率，包括 AOCI。證券投資組合的影響為8.0%。鑑於 AFS 投資組合中有 61% 是鎖定證券，我們預期投資組合中未實現證券損失將繼續改善，這為我們的主要現金流量預期提供了高度確定性。

Assuming the forward curve as we realized approximately 26% of the AOCI. related to securities losses will accrete back into equity by the end of 2025, increase in tangible book value per share by 10% before considering any future earnings, 62% of the securities related AOCI. will accrete back to equity by the end of 2028.

假設遠期曲線我們實現了大約 26% 的 AOCI。到 2025 年底，與證券相關的損失將計入股本，在考慮任何未來收益之前，每股有形帳面價值將增加 10%，佔與證券相關的 AOCI 的 62%。到 2028 年底將恢復為股本。

Moving to our current outlook. While the rate environment and customer credit demand have played out differently than we were expecting at the start of the year, we remain confident in our ability to deliver PPNR and earnings outcomes in line with or better than our original expectations.

轉向我們目前的展望。儘管利率環境和客戶信貸需求的表現與我們年初的預期不同，但我們仍然對我們實現 PPNR 和盈利結果符合或優於我們最初預期的能力充滿信心。

For the full year, we expect full year NII to decrease the 4%, consistent with our guidance from January. This outlook assumes the forward curve as of early July, which projected two rate cuts in the second half of the year, September and December. We also believe we can deliver this in I outcome with no interest rate cuts and no loan growth in the second half of 2024.

就全年而言，我們預計全年 NII 將下降 4%，與我們 1 月的指導一致。這一前景假設了截至 7 月初的遠期曲線，預計下半年（9 月和 12 月）將有兩次降息。我們也相信，我們可以在 2024 年下半年不降息、不增加貸款的情況下實現這一目標。

Given the year-to-date trends in customer activity, we now expect full year average total loans to be down 3% compared to 2023. Average total loans in the fourth quarter of 2024 are expected to be stable to up 1% compared to the fourth quarter of 2023, with similar performance in both the commercial and consumer portfolios.

鑑於今年迄今的客戶活動趨勢，我們現在預計全年平均貸款總額將比 2023 年下降 3%。與 2023 年第四季相比，2024 年第四季的平均貸款總額預計將穩定成長 1%，商業和消費者投資組合的表現相似。

Customer demand is the primary driver of this change, given the interest rate environment and other economic uncertainties that there's more economic optimism in the second half of the year, we would expect to see loan growth in line or better than market growth. We are forecasting fourth quarter average core deposit growth of 2% to 3% when compared to the fourth quarter of 2023.

客戶需求是這項變化的主要驅動力，考慮到利率環境和其他經濟不確定性，下半年經濟更加樂觀，我們預期貸款成長將與市場成長持平或比市場成長更好。我們預計第四季核心存款平均成長率將較 2023 年第四季成長 2% 至 3%。

Our forecast also assumes commercial revolver utilization and our cash and other short-term investments remain relatively stable throughout the remainder of 2024, we expect full year adjusted non-interest income to be stable to down 1% in 2024, reflecting the impact of weaker than previously expected credit demand and customer hedging activities.

我們的預測還假設商業左輪手槍利用率以及我們的現金和其他短期投資在2024 年剩餘時間內保持相對穩定，我們預計2024 年全年調整後的非利息收入將穩定下降1%，反映了疲軟的影響先前預期的信貸需求和客戶對沖活動。

We expect strong growth in commercial payments and wealth and asset management revenue to continue in response to this expectation of lower customer activity in the second half, we expect to manage full year adjusted non-interest expense stable to 2023 levels.

我們預計商業支付以及財富和資產管理收入將繼續強勁增長，以應對下半年客戶活動減少的預期，我們預計全年調整後非利息支出將穩定在 2023 年的水平。

Our expense outlook assumes continued investments in technology with tech expense growth in the mid-single digits and sales additions in middle market commercial payment and well, we will open 30 to 35 new branches in the higher-growth markets and have already closed a similar number of branches in 2024.

我們的費用前景假設繼續對技術進行投資，技術費用以中個位數增長，中間市場商業支付的銷售增加，我們將在高增長市場開設30 至35 家新分支機構，並且已經關閉了類似數量的分公司2024 年開設分公司。

Our outlook still projects an efficiency ratio of around 57% for the full year. For full year 2024, the net charge-off outlook remains in the 35 to 45 basis points range. While we expect to resume provision builds in connection with loan growth and mix in the second half of 2024, we expect the second half build to be less than the first half of 2024 release,

我們的展望仍預計全年效率約為 57%。2024 年全年，淨沖銷前景仍維持在 35 至 45 個基點範圍內。雖然我們預計將在 2024 年下半年恢復與貸款成長和組合相關的撥備建設，但我們預計下半年的撥備建設將少於 2024 年上半年的撥備建設，

Therefore, we expect full-year provision to be a $0 to $10 million release, assuming no change to credit quality of the portfolio or projected economic conditions. Moving to our quarterly outlook, we expect NII and NIM growth to continue in both the third and fourth quarter. We expect NII in the third quarter to be up 2% sequentially, reflecting the impact of slowing deposit cost pressures and the continued benefit of our fixed rate asset repricing. Our current outlook assumes interest-bearing core deposit costs, which were 295 basis points in the second quarter of 2024, to increase just 4 basis points sequentially if we see no rate cuts.

因此，假設投資組合的信貸品質或預期的經濟狀況沒有變化，我們預計全年撥備將釋放 000 至 1000 萬美元。轉向我們的季度展望，我們預計NII 和NIM 將在第三和第四季繼續成長。我們預計第三季NII將環比成長2%，反映出存款成本壓力放緩的影響以及我們固定利率資產重新定價的持續好處。我們目前的前景假設，如果我們不降息，計息核心存款成本（2024 年第二季為 295 個基點）將僅連續增加 4 個基點。

We expect average total loan balances to be stable to up 1% from the second quarter. We expect modest middle market, auto and solar production actions to offset continued low credit demand from corporate banking customers. We expect third quarter adjusted noninterest income to be up 1% to 2% compared to the second quarter, largely reflecting strength in commercial payments and wealth and asset management and a modest increase in commercial banking revenue.

我們預計平均總貸款餘額將穩定在第二季的 1% 左右。我們預期中等市場、汽車和太陽能生產行動將抵銷企業銀行客戶持續較低的信貸需求。我們預計第三季調整後非利息收入將較第二季成長1%至2%，這主要反映了商業支付、財富和資產管理的強勁以及商業銀行收入的小幅成長。

We expect third quarter total adjusted non-interest expenses to be up 1% compared to the second quarter due to the impact of the previously discussed. Investments in branches, technology and sales personnel. Third quarter, net charge-offs are projected to be in the 40 to 45 basis point range.

由於前面討論的影響，我們預計第三季調整後非利息支出總額將比第二季增加 1%。對分公司、技術和銷售人員的投資。第三季度，淨沖銷預計將在 40 至 45 個基點範圍內。

As mentioned in the full year outlook, loan growth and mix are expected to drive a provision build, which should be around $25 million in the third quarter. Assuming no change to the economic outlook on the trajectory of our income statement, performance should deliver positive operating leverage in the fourth quarter 2024 and a net interest income, the exit rate for the year that positions us for record results in 2025, assuming no major economic or interest rate outlook changes.

正如全年展望中所提到的，貸款成長和組合預計將推動撥備建設，第三季撥備金額應約為 2,500 萬美元。假設我們的損益表軌跡上的經濟前景沒有變化，那麼業績應該會在2024 年第四季帶來正的營運槓桿和淨利息收入，即當年的退出率，使我們能夠在2025 年取得創紀錄的業績，假設沒有重大的變動經濟或利率前景改變。

Finally, moving to capital. With our consistent and strong earnings, we expect to execute share repurchases of $200 million per quarter in the second half of 2024, us, assuming a stable economic and credit outlook and capital rules that are no worse than the current NPR.

最後，搬到首都。憑藉我們持續強勁的獲利，我們預計在 2024 年下半年每季執行 2 億美元的股票回購，假設經濟和信用前景穩定，資本規則不比目前的 NPR 差。

In summary, with our well-positioned balance sheet and disciplined expense and credit risk management and diversified revenue streams, we are positioned to generate sustained top quartile profitability and deliver long-term value for us, shareholders, customers, communities and employees.

總而言之，憑藉我們良好的資產負債表、嚴格的費用和信用風險管理以及多元化的收入來源，我們有能力創造持續最高四分之一的盈利能力，並為我們、股東、客戶、社區和員工創造長期價值。

With that, let me turn it over to Matt to open the call up for Q&A.

接下來，讓我將其轉交給馬特，以開始問答環節。

Thanks, Bryan. And before we start Q&A, given the time we have this morning, we ask that you limit yourself to one question and one follow-up and then return to the queue if you have additional questions. Operator, please open the call for Q&A.

謝謝，布萊恩。在我們開始問答之前，考慮到今天早上的時間，我們要求您將自己限制在一個問題和一個後續問題上，如果您還有其他問題，請返回隊列。接線員，請打開電話問答。

Thank you. And we will now begin the question and answer session. (Operator Instructions).

謝謝。我們現在開始問答環節。（操作員說明）。

Ebrahim Poonawala at Bank of America

美國銀行的易卜拉欣‧普納瓦拉 (Ebrahim Poonawala)

Good morning.

早安.

Good morning now.

現在早安。

Hi Tim. Maybe first question For Bryan, just looking at Slide 49 in the deck around rate sensitivity, it implies that rate cuts should benefit NII. So you talked about the second half guide, I think as we think about 2025. But just talk to us around the comfort level. I think it says 75% to 80% effective betas on the downside. Just talk to us in terms of the deposit beta assumptions. What's contractual within your deposit mix that should repriced lower, and is it fair to assume that rate cuts are positive for Fifth Third?

嗨蒂姆。也許第一個問題對 Bryan 來說，只要看看投影片 49 中關於利率敏感性的內容，它就意味著降息應該有利於 NII。所以你談到了下半年指南，我認為這是我們對 2025 年的看法。但請與我們討論舒適度。我認為它說 75% 到 80% 的有效貝塔值是不利的。請與我們討論存款貝塔假設。您的存款組合中的哪些合約應重新定價較低，假設降息對 Fifth Third 有利是否公平？

Thank you, Ebrahim, but we certainly believe that rate cuts were positive for Fifth Third. If you look at Slide 42, we actually give a little bit more detail on the mix of the interest-bearing deposit growth of 64% of our book right now would be classified in kind of a higher beta categories. This represents or index deposits, which were up $35 billion, the CD that we have in place, we've done a nice job of managing maturities with CD. bucket so that most of our CD will mature by the end of the year. That's another $14 billion of balances on hand of promotional balances as well.

謝謝易卜拉欣，但我們當然相信降息對 Fifth Third 來說是積極的。如果您看一下投影片 42，我們實際上會更詳細地介紹我們書中 64% 的計息存款成長的組合，現在將被歸類為更高貝塔類別。這代表或指數存款，增加了 350 億美元，是我們現有的定期存款，我們在定期存款的到期管理方面做得很好。以便我們的大部分 CD 將在今年年底成熟。這還有 140 億美元的促銷餘額。

So we have a lot of captions where within that book, but we're going to be able to reprice down overall. That's about it, 64% of the deposits. We certainly have some lower rate, but it's still that we think of the betas are effectively zero. We have a high amount of confidence that we're going to be able to get cost out and be able to manage. We really only need to be in a kind of mid 50s to low 60s beta to be able to be neutral the liability sensitive and we're confident we can deliver that.

因此，我們在那本書中有很多標題，但我們將能夠整體重新定價。大約就是這樣，存款的64%。我們當然有一些較低的利率，但我們仍然認為貝塔值實際上為零。我們非常有信心能夠降低成本並進行管理。我們實際上只需要處於 50 年代中期到 60 年代低的測試版就能夠對責任敏感保持中立，我們有信心能夠實現這一目標。

That's clear. And I guess maybe one for you, Tim, I think you played back in terms of loan growth much earlier this cycle. As you think about with creditors, your comments on reserve outlook, is it all clear if you get rate cuts, do you just worry less about something really bad happening systemically on credit quality for Fifth Third? And then the other side of that is what's the trigger that leads to that growth? I heard you say you should have about average loan growth if things pick up. What's the catalyst we should be working for? Thanks.

很清楚。我想也許適合你，提姆，我認為你在這個週期的早期就已經在貸款成長方面取得了進展。當您與債權人一起思考時，您對準備金前景的評論，如果您降息，您是否會更少擔心第五三分之一的信用品質系統性發生真正糟糕的事情？另一方面是導致這種成長的觸發因素是什麼？我聽你說，如果情況好轉，你應該會看到平均貸款成長。我們應該努力的催化劑是什麼？謝謝。

Yeah, Good question. I think that's the million dollar question for the industry right there. There's no question that if we see some relief on rates, it is a positive, both for loan demand and for credit quality. Jamie Leonard, and I have been out in several of the markets this quarter doing market visits, and we've been running a straw poll on where rates need to be before activity picks up. And the wisdom of the crowds, at least inside Fifth Third at the moment is about 4.5% the Meridian, where we'll see a pickup in more activity.

是的，好問題。我認為這對這個行業來說是一個價值百萬美元的問題。毫無疑問，如果我們看到利率下降，這對貸款需求和信貸品質都是正面的。傑米·倫納德（Jamie Leonard）和我本季度去過幾個市場進行市場訪問，我們一直在進行一項民意調查，以確定在經濟活動回升之前利率需要達到什麼水平。人群的智慧，至少目前在第五三分之一內大約是 Meridian 的 4.5%，我們將看到更多活動的增加。

That said, while rates would be constructive Titan, I think I continue always to worry about the broader macro issues. And when we got land wars and two, you know, volatile regions in the US right now, we have an election that's upcoming. We have massive fiscal deficits in the US. We have a ton of treasury issuance that's going to be required to reload the TGA at some point here, and they're going to have to term that out. And that's going to put pressure on the long end of the curve.

也就是說，雖然利率將是建設性的泰坦，但我認為我仍然始終擔心更廣泛的宏觀問題。當我們發生陸地戰爭和美國現在的兩個動盪地區時，我們即將舉行選舉。美國有巨額財政赤字。我們需要發行大量國債，以便在某個時候重新加載 TGA，他們將不得不解決這個問題。這將對曲線的長端施加壓力。

And while I think we have some stability here, I'm uncomfortable with the level of support that the federal government is having to provide to keep GDP growth at where it is at the moment. I mean, the jobs numbers, this most recent batch, unless I'm mistaken, a third of the new jobs that were created, were created by the government. When we look at our footprint and we look at where the activity is, where there's federal stimulus, we're seeing robust activity everywhere else.

雖然我認為我們這裡有一定的穩定性，但我對聯邦政府為維持目前 GDP 成長而必須提供的支持程度感到不安。我的意思是，就業數字，最近一批，除非我弄錯了，所創造的新就業中有三分之一是由政府創造的。當我們觀察我們的足跡，看看哪裡有活動，哪裡有聯邦刺激措施，我們就會看到其他地方都有強勁的活動。

We've got a client in Tennessee tell us that the current environment was quote, half speed ahead, right. So we will continue to be mindful about that. I'm a believer that in uncertain environments, you have to focus on getting growth from the businesses that you know and the strategies that are proven. You're not going to see us stretching into categories we don't know or doing things that we're uncomfortable with from a credit perspective and where we have to bet on a favorable macro to bail us out in terms of getting repaid.

我們有一位田納西州的客戶告訴我們，目前的環境是報價，前進一半速度，對吧。因此，我們將繼續關注這一點。我堅信，在不確定的環境中，您必須專注於從您了解的業務和經過驗證的策略中獲得成長。你不會看到我們擴展到我們不知道的領域，或者做我們從信用角度來看感到不舒服的事情，我們必須押注於有利的宏觀環境來救助我們以獲得回報。

That's great, color. Thank you.

太棒了，顏色。謝謝。

Scott Siefers at Piper Sandler.

派珀·桑德勒的斯科特·西弗斯。

Good morning, everyone. Thanks for taking the question. Let's see actually, Bryan, was hoping you could speak a little bit about the trajectory you discuss sort of the second quarter softness a month or so ago. Feels like it might persist a bit into the third quarter by imagine we're still feeling like that. All of that will rebound. Just hoping you could maybe share some thoughts on sort of when and how that that ends up looking at others. Just a little more color on the fee trajectories?

大家早安。感謝您提出問題。事實上，布萊恩希望你能談談你大約一個月前討論的第二季疲軟的軌跡。想像一下我們仍然有這種感覺，感覺這種情況可能會持續到第三季。所有這些都會反彈。只是希望你能分享一些關於何時以及如何最終看到其他人的想法。只是在費用軌跡上多一點色彩嗎？

Yes, absolutely, Scott. You know, the job, the second to third quarter increasing that we're talking about. I'm not to aggressive of fee growth perspective. We continue to expect continued performance out of wealth and asset management business as well as commercial payments. Payments has been ticking along at three to $4 million a quarter increases, and we expect that to continue and feel really good about it.

是的，絕對如此，斯科特。你知道，我們正在談論的工作，第二到第三季的成長。我對費用成長的觀點並不激進。我們繼續預期財富和資產管理業務以及商業支付業務將持續表現出色。付款一直在以每季 300 到 400 萬美元的速度增長，我們預計這種情況會持續下去，並且感覺非常好。

We're also going to see some seasonal impacts actually come out associated with our mortgage mortgage business will benefit of a lot from the servicing portfolio all the servicing. And what we did right at the end of the low rate cycle has benefited us and generated a lot of great income. But there is a seasonal headwind 1Q to 2Q that we felt months ago about $7 million. That's not going to repeat, though, we're set up really well for the 2Q to 3Q growth that we've laid out.

我們還將看到一些與我們的抵押貸款業務相關的季節性影響實際上將從服務組合和所有服務中受益匪淺。我們在低利率週期結束時所做的正確事情使我們受益並創造了大量收入。但第一季到第二季有季節性逆風，幾個月前我們就感受到了約 700 萬美元的損失。不過，這種情況不會重複，我們已經為我們所規劃的第二季到第三季的成長做好了很好的準備。

And then a new fourth quarter, we'll get some additional seasonal benefit out of the MSR. The payments and card spend will continue to pick up, especially the seasonal card spending consumer. We'll get the $10 million TRA benefit. And then we always see some pickup in both commercial banking and leasing in the fourth quarter that should both generate some additional income as well. That gets us to that little bit higher growth rate trajectory that you could see that's implied throughout in 3Q and 4Q.

然後在新的第四季度，我們將從 MSR 中獲得一些額外的季節性收益。支付和卡片消費將繼續增加，尤其是季節性卡消費消費者。我們將獲得 1000 萬美元的 TRA 福利。然後我們總是看到商業銀行和租賃在第四季度有所回升，這也應該會產生一些額外的收入。這讓我們看到了第三季和第四季隱含的更高的成長率軌跡。

Perfect. Okay. And then maybe switching gears, just a second sewing. You might be able to sort of put into context the CFPB news from earlier this month. That's just based on read kind of felt like we closed the book on the account issues from a few years ago. It was good. The requests floating out there about sort of cost to comply, Acosta, remediated. What's within the existing outlook? Can you maybe address those kind of kind of broadly please?

完美的。好的。然後也許會切換齒輪，只是進行第二次縫紉。您也許能夠了解一下本月早些時候 CFPB 新聞的背景。這只是基於閱讀的感覺，就像我們幾年前關閉了關於帳戶問題的書一樣。很好。阿科斯塔對那些關於遵守成本的要求進行了補救。現有的前景如何？您能否廣泛地解決這些問題？

Yeah, Scott, it's Tim. I'm happy to do that. And I think you hit on the most important thing here. It shows the best thing for you to do is focus on their statements. Of fact, as opposed to the press releases on this one, hitting it varied by the bureaus own statements. Of fact here, these were old issue, so one was nearly five years.

是的，史考特，是提姆。我很高興這樣做。我認為你說到了最重要的事。這表明你最好做的就是專注於他們的陳述。事實上，與此事件的新聞稿不同，該局自己的聲明也有所不同。事實上，這些都是老問題了，所以已經有將近五年了。

All the other was nearly 10 years old, respectively. Things that we identified and reported. And in case of auto, we completely canceled the program before they ever even started their investigation. And I think while we of course, we always take anything that impacts customers see obviously a Fifth Third, the size of the fines, which are a fraction of what you see and in other places, probably speak for themselves in terms of the limited scope of the issues here.

其他人都快10歲了。我們發現並報告的事情。就汽車而言，我們在他們開始調查之前就完全取消了該計劃。我認為，當然，我們總是採取任何影響客戶明顯看到的第五三分之一的罰款數額，這只是你在其他地方看到的一小部分，可能就有限的範圍而言不言自明這裡的問題。

And we elected to close these things out because given the fact that they were small and, in the past, it just didn't make sense to continue to spend more money litigating than it was going to add that spend to settle. So, we put them in the rearview mirror. We had the one-time expense this quarter and nine, that's where it's going to stay. You shouldn't expect any incremental ongoing expense because these are issues that are so old. Anything that needed to be done was already done from an ongoing operations.

我們選擇結束這些事情，因為考慮到它們規模很小，而且在過去，繼續花費比增加和解支出更多的錢來訴訟是沒有意義的。所以，我們把它們放在後視鏡裡。我們本季和九季有一次性費用，這就是它要保留的地方。您不應該期望任何增量的持續費用，因為這些問題已經很老了。任何需要做的事情都已經透過正在進行的操作完成了。

Okay, wonderful. Thank you for taking the questions.

好吧，太棒了。感謝您提出問題。

Thank you.

謝謝。

Mike Mayo with Wells Fargo.

富國銀行的麥克·梅奧。

Hi Mike.

嗨，麥克。

Hi, I'm (inaudible).

嗨，我是（聽不清楚）。

Ken Usdin, Jefferies.

肯‧烏斯丁，傑弗里斯。

Hey, good morning, guys. On the deposit side. I heard your comments about from four basis points increase in 3Q with no cuts. And I'm just wondering, you talked about the mid 50s to 60 downside beta. Can you give us a little bit of context on how that starts and then how that moves forward? Third and your Peter, did you talk about having a good two thirds of your deposit base high beta, but I'm just wondering like how you kind of expect the some of the pricing such you've been doing to grow deposits in the Southeast, juxtaposed against that downside beta. Thanks?

嘿，早上好，夥計們。在存款方面。我聽到您關於第三季度增加四個基點且沒有削減的評論。我只是想知道，你談到了 50 年代中期到 60 年代中期的下行測試版。您能為我們介紹一下它是如何開始以及如何進展的嗎？第三，你的彼得，你是否談到擁有三分之二的存款基數高貝塔值，但我只是想知道你如何期望你一直在做的一些定價，以增加東南部的存款，與該下行貝塔值並列。謝謝？

Yeah, absolutely. Thanks, Ken. Great question. You know, what we would tell you is that what it will create is, it will create some opportunity to be a little bit more aggressive on some of the rate cuts associated with the CDs and the promo portfolios that we've seen, historically when we've navigated through these down rate cycles, those first couple cuts on the consumer side do have a pretty decent impact on customer mentality and sentiment and your ability to create some sticky balances.

是的，絕對是。謝謝，肯。很好的問題。你知道，我們要告訴你的是，它將創造一些機會，在與我們所看到的 CD 和促銷投資組合相關的一些降息方面採取更積極的態度，歷史上當我們已經經歷了這些降息週期，消費者方面的前幾次降息確實對客戶心態和情緒以及創造一些黏性平衡的能力產生了相當大的影響。

We've been through this a few times now where we've seen the ability to convert those balances into a lower rate balance and cause them to stick around. And on the other side of that, the commercial balances, in particular the index balances, those are immediate impacts and will just move with the market.

我們已經經歷過幾次這種情況，我們已經看到了將這些餘額轉換為較低利率餘額並使其保留下來的能力。另一方面，商業餘額，特別是指數餘額，這些都是直接影響，並且會隨著市場的變化而變化。

We have really no concern around that index strategy. It's another one that we've executed in prior cycles. I think we've done a nice job of kind of navigating and managing those balances up in those index portfolios as we've reached the grades. It gives us a lot of confidence in the ability to very quickly get those costs out.

我們確實不擔心該指數策略。這是我們在先前的周期中執行的另一項任務。我認為，當我們達到目標時，我們在引導和管理這些指數投資組合中的餘額方面做得很好。這讓我們對快速消除這些成本的能力充滿信心。

Okay, got it. And then just following up on your comments about our record 25 versus 23 and a NII. Can you just talk to us about how much of that do you expect to be growth related? And how much of that you expect to be just the outcome of rate scenarios?

好的，明白了。然後跟進您對我們創紀錄的 25 比 23 和 NII 的評論。您能跟我們談談您預計其中有多少與成長相關嗎？您預計其中有多少只是利率情境的結果？

I would actually tell you that most of it is just the natural transition and the balance sheet and the business today. I think our NII story is actually pretty simple. Right now it's the continued fixed rate asset pricing and slowing deposit cost. And if you look at just the trends that we're laying out, you know, we're adding about $8 million a quarter right now, just on the natural repricing of the existing balance sheet.

事實上，我想告訴你，其中大部分只是自然過渡、資產負債表和今天的業務。我認為我們的 NII 故事實際上非常簡單。目前是持續的固定利率資產定價和放緩的存款成本。如果你只看一下我們列出的趨勢，你就會知道，我們現在每季增加約 800 萬美元，只是根據現有資產負債表的自然重新定價。

And you think with, we've talked a lot about $4 billion to fixed rate asset repricing. That's happening at about 200 basis points. That's $20 million a quarter. And then the deposit costs up 4 bps this quarter on $120 billion interest bearing book versus 12of incremental costs to take us down to that net 8. We get a little bit of continued slowing on deposit cost side. That can approach $10 million, $15 million, $20 million a quarter. Day count, we're going to pick up $10 million here in the third quarter. And then that sets us up for an exit rate where if you just take the 4 times the fourth quarter math, you're right around what is our record NII of $58 million, $52 million.

你想一下，我們已經談論了很多關於 40 億美元固定利率資產重新定價的問題。這種情況發生在大約 200 個基點時。也就是說每季 2000 萬美元。然後，本季的存款成本上升了 4 個基點，計息帳面金額為 1,200 億美元，而增量成本則增加了 12 個基點，使我們的淨成本降至 8 個基點。存款成本方面持續放緩。每個季度可能接近 1000 萬美元、1500 萬美元、2000 萬美元。以天計算，我們將在第三季獲得 1000 萬美元的收入。然後，這為我們設定了一個退出率，如果你只計算第四季的 4 倍，你就接近我們創紀錄的 NII 5800 萬美元、5200 萬美元。

Throw on a little earning asset or loan growth on top of that and the path is there for us. That's what gives us confidence. The big wild card, like we always talk about, is just how competitive deposit pricing ultimately ends up being. But if we start to see rate cuts, we would expect to see some decent relief on the liability side.

除此之外，再加上一點獲利資產或貸款成長，我們的道路就在那裡。這給了我們信心。正如我們經常談論的那樣，最大的變數是存款定價最終的競爭力。但如果我們開始看到降息，我們預計負債方面會出現一些體面的緩解。

Yeah, Ken, it's Tim. We talked a while ago, and maybe we haven't been doing enough of this recently, but about the power of having these intermediate duration fixed rate loan origination platforms was, by that I really mean you think about provide, you think about the auto business, you think about dividends. Like if you just look at the yields on the indirect auto and specialty business year-over-year, we've added almost 100 basis points to the yield in the portfolio.

是的，肯，是提姆。我們不久前討論過，也許我們最近在這方面做得還不夠，但是關於擁有這些中間期限固定利率貸款發起平台的力量，我的意思是，你會考慮提供，你會考慮汽車做生意，你會想到股息。就像如果你只看間接汽車和特種業務的逐年收益率一樣，我們已經將投資組合的收益率增加了近 100 個基點。

And if you look at the solar product, it's north of 200 basis points that we have been able to add year-over-year. And that just speaks to the power of both the one, the sort of origination capacity that exists there that we can dial up in an environment where spreads widen and it makes sense for us to do it.

如果你看一下太陽能產品，你會發現我們已經能夠比去年增加 200 個基點以上。這恰恰說明了兩者的力量，即存在的那種起源能力，我們可以在傳播擴大的環境中發揮這種能力，而我們這樣做是有意義的。

And two, the fact that these are asset classes that are going to reprice a lot faster than the 3% mortgages that were originated at the low point in the rate cycle and that are going to persist much longer than the jumbo mortgages and the other fixed rate product that you see being available to banks out in the market today, which are all likely to prepay, if we get any sort of meaningful movement out of the Fed. So that will be an important part of the way that we continue to drive outcomes, even in an environment where you don't get a meaningful improvement in loan demand across the industry.

第二，事實上，這些資產類別的重新定價速度將比在利率週期低點產生的 3% 抵押貸款快得多，而且比巨額抵押貸款和其他固定抵押貸款持續的時間要長得多。到今天市場上的銀行可以使用的利率產品，如果我們從聯準會獲得任何有意義的行動，這些產品都可能會提前付款。因此，這將是我們繼續推動成果的重要組成部分，即使在整個產業的貸款需求沒有得到有意義的改善的環境下也是如此。

Got it. Thank you for that color.

知道了。謝謝你的那個顏色。

Gerard Cassidy at RBC.

加拿大皇家銀行的傑拉德·卡西迪。

Hi, Tim. Hi, Bryan.

嗨，提姆。嗨，布萊恩。

Good morning.

早安.

Tim, Bryan, can you give us a little color? On slide 29, the transfers to non-accrual status of loans fell nicely this quarter. And when you go back to you that give us the data back to the second quarter '23 and some meaningful drop from that was low levels and in color that you can give us on what led to that drop? And then second, I apologize if you addressed this already on the commercial loan charge off number that jumps in the quarter. Were there any specific idiosyncratic loans have caused that to happen?

提姆、布萊恩，你能給我們一點顏色嗎？在投影片 29 上，轉為非應計狀態的貸款本季大幅下降。當您返回給我們 23 年第二季的數據時，您可以告訴我們是什麼導致了這種下降？其次，如果您已經在本季跳躍的商業貸款沖銷數量上解決了這個問題，我深表歉意。是否有任何特定的特殊貸款導致了這種情況的發生？

George hey, it's Greg. A great question. So, I'll answer the second first. So yes, we had the two names that Bryan mentioned that were two different industries. I'm not seen any dramatic concerning trends emerged out of it, folios, your geographic. We've talked lumpiness on the commercial side, and that's what we experienced this quarter. We're normalizing of very low loss rates. And so when we have one or two of these episodic events within you'd highlighted, and that's what we that's what we saw. Good, as Brian mentioned, there were not a surprise.

喬治嘿，我是格雷格。這是一個很好的問題。那麼，我先回答第二個問題。所以，是的，我們有布萊恩提到的兩個不同行業的名字。我沒有看到任何戲劇性的趨勢從中出現，作品集，你的地理。我們已經討論過商業方面的不穩定，這就是我們本季經歷的情況。我們正在使極低的損失率正常化。因此，當我們內心發生一、兩個這樣的偶發事件時，你會強調，這就是我們所看到的。很好，正如布萊恩所說，這並不令人驚訝。

We had reserves against those two loans, and so we think we're through those the overall credit metrics remain really solid. Our delinquencies were down quarter-over-quarter. The NPAs that you referred to were down 13%, quarter-over-quarter at 55 basis points. That's below our 10-year average. We're up 1 basis point year-over-year on NPAs, and it's really across the Board. We had about $80 million in commercial losses this quarter, but we are down almost $100 million.

我們對這兩筆貸款有準備金，因此我們認為我們已經完成了這些，整體信用指標仍然非常穩定。我們的拖欠率環比下降。您提到的 NPA 環比下降 13%，下降 55 個基點。這低於我們 10 年的平均值。我們的 NPA 年比上升了 1 個基點，而且確實是全面的。本季我們的商業損失約為 8,000 萬美元，但現在已經減少了近 1 億美元。

So we are working the portfolio very hard. We're working out of some of the NPA loans without experiencing the loss rates, but it's really across the board. What we're not seeing the NPAs are in the commercial real estate portfolio. We had about $3 million in NPAs there. So that portfolio continues to perform very, very well. It had virtually no delinquencies in that portfolio. So it's really across the board where we're seeing the improvement in our NPA numbers. Had a little bit on the consumer side, both sides have been driven on the commercial side.

因此，我們正在非常努力地開發產品組合。我們正在處理一些不良資產貸款，但沒有經歷損失率，但這確實是全面的。我們在商業房地產投資組合中沒有看到不良資產。我們在那裡有大約 300 萬美元的不良資產。因此，該投資組合的表現繼續非常非常好。該投資組合中幾乎沒有拖欠款項。因此，我們看到 NPA 數字確實全面改善。消費端有了一點，商業端雙方都得到了推動。

Very good. Thank you for the color. And then second, when you look at your shared national credit portfolio and you could give us good details once again on slide 25, the Financial Services slice of our portfolio, how much, if any, is in sectors and is considered private equity or private credit? Because as we all know, it seems like the banking industry has been derisked since the financial crisis in the private equity private credit side of the equation might be taking on more of that risk. Do you guys have many loans to the Black Sea stones of Carlyle's or any of those types of companies and where there might be indirect exposure to that industry?

非常好。謝謝你的顏色。其次，當您查看共享的國家信貸投資組合時，您可以在幻燈片25 上再次向我們提供詳細信息，即我們投資組合中的金融服務部分，有多少（如果有的話）屬於行業並被視為私募股權或私人股本信用？因為眾所周知，自金融危機以來，銀行業似乎已經消除了風險，私募股權私募信貸方面可能承擔更多風險。你們是否向凱雷的黑海寶石公司或任何此類公司提供了許多貸款，以及可能間接接觸該行業的地方？

Yeah, another great question. So, we've got subscription lines to some of those type of companies, highly rated borrowers. But as you know, those are mostly predicated on and underwritten, overcollateralized to the LP Capital. But we're not in that leverage-on-leverage space. We're not active there. We've got a couple direct lending lines of credit. They're totaled about $30 million, so about $15 million fee. So, we're not active in that space.

是的，另一個很好的問題。因此，我們為其中一些類型的公司、高評級借款人提供了訂閱線路。但如您所知，這些大多是基於 LP Capital 的承保和超額抵押。但我們並不處於槓桿效應的空間。我們在那裡不活躍。我們有幾個直接貸款信用額度。它們的總金額約為 3000 萬美元，因此費用約為 1500 萬美元。因此，我們在該領域並不活躍。

Okay, good. Thank you again.

好的，很好。再次感謝您。

Thank you.

謝謝。

Thank you.

謝謝。

Bill Carache at Wolfe Research.

沃爾夫研究中心的比爾·卡拉什。

Thank you. Good morning. I wanted to follow up on your credit commentary and ask for your thoughts on the longer-term trajectory of charge-offs, given what you're seeing in both consumer and commercial. Crystal clear on all the sources of uncertainty that you highlighted, Tim. But if we assume that the software landing scenario materializes and think about the loss content implicit in your loan book today, would you expect Fifth Third's and CR rates to level off from here drift a little bit higher revert to 2019 levels? I know you can't give you 25 guidance, but any help on how you're thinking about that long-term trajectory would be super helpful?

謝謝。早安.鑑於您在消費者和商業領域所看到的情況，我想跟進您的信用評論，並詢問您對沖銷的長期軌蹟的看法。提姆，你強調的所有不確定性來源都非常清楚。但如果我們假設軟體落地場景成為現實，並考慮一下您今天貸款簿中隱含的損失內容，您是否會期望五分之三利率和CR 利率從這裡趨於平穩，稍微高一點，恢復到2019 年的水平？我知道你不能給你 25 個指導，但是任何關於你如何思考長期軌蹟的幫助都會非常有幫助嗎？

Yeah, it's Greg again. So Yeah, certainly, as Tim mentioned, any kind of rate cut is going to help us from an overall asset quality. It will on the consumer side. It will on the commercial side. It takes a little while for those rate cuts to play through the portfolio. So as Bryan mentioned in his prepared remarks, we still feel good about the 40 basis points or 45 basis points for the rest of this year. Then we'll see how the rest of the marketplace plays out. But as I just mentioned in the previous question, still feel really good about the overall metrics of the portfolio.

是的，又是格雷格。所以，是的，當然，正如蒂姆所提到的，任何形式的降息都將有助於我們的整體資產品質。它將在消費者方面。它將在商業方面。這些降息措施需要一段時間才能在投資組合中發揮作用。因此，正如布萊恩在他準備好的演講中提到的那樣，我們仍然對今年剩餘時間的 40 個基點或 45 個基點感到滿意。然後我們將看看市場的其他部分如何發揮作用。但正如我在上一個問題中提到的，我仍然對投資組合的整體指標感覺良好。

Our NPA rates is a good indicator of potential loss rates moving forward, and those numbers continue to come down and improve. And so I think even without rate increases, still feel really good about our portfolio, get a little bit of goodness from the rates and yeah, I think it certainly helps as we get into 2025.

我們的不良資產率是未來潛在損失率的良好指標，而這些數字繼續下降和改善。因此，我認為即使沒有升息，我們仍然對我們的投資組合感覺良好，從利率中獲得一點好處，是的，我認為隨著我們進入 2025 年，這肯定會有所幫助。

Thanks, That's helpful. And then separately, you talked about some of the variables impacting the curve. Can you discuss how a Fifth Third’s position for either a flatter or a steeper yield curve environment?

謝謝，這很有幫助。然後，您分別談到了影響曲線的一些變數。您能否討論一下五分之三在更平坦或更陡峭的殖利率曲線環境中的立場？

Yeah, absolutely. You know, we're typically, our normal business is about two-thirds sensitive to the front end of the curve. You know, I will tell you with our current cash position, we're probably closer to 75% sensitive on the front end of the curve. So relief on the front end is part of what would be the big driver from an asset sensitivity perspective.

是的，絕對是。你知道，我們的正常業務通常對曲線前端敏感約三分之二。你知道，我會告訴你，以我們目前的現金狀況，我們對曲線前端的敏感度可能接近 75%。因此，從資產敏感性的角度來看，前端的緩解是主要驅動因素的一部分。

And the interesting thing about how this environment could play out is we could potentially get some of that relief on the front end of the curve and still benefit from the fixed rate asset repricing that we're expecting over the next couple of years. Because what's rolling off right now is a lot of that loans that were originated in those periods of really low interest rates.

關於這種環境如何發揮作用的有趣之處在於，我們可能會在曲線前端得到一些緩解，並且仍然受益於我們預計未來幾年的固定利率資產重新定價。因為現在大量的貸款是在利率非常低的時期產生的。

So even if you see a little bit of lower rates on the longer-end of the curve, you would still have a nice pickup relative to the prompt of back with dynamic. So that front end relief and as Tim mentioned around our concerns around their concerns around continued treasury issuance, if that's the scenario that were to play out, it would be one that would be a nice situation from an NII perspective. But it would probably continue the longer-end of the curve could cause some additional challenges for the economy from a growth perspective.

因此，即使您看到曲線較長端的利率稍低，相對於動態返回的提示，您仍然會獲得不錯的回升。因此，前端的緩解以及正如蒂姆提到的我們對他們對持續國債發行的擔憂所提到的那樣，如果這種情況真的發生，那麼從國家資訊基礎設施的角度來看，這將是一個很好的情況。但它可能會持續下去，從成長的角度來看，曲線的較長一端可能會給經濟帶來一些額外的挑戰。

Understood. Very helpful. Thank you for taking my questions.

明白了。非常有幫助。感謝您回答我的問題。

Thank you.

謝謝。

Erika Najarian at UBS.

瑞銀 (UBS) 的 Erika Najarian。

Hi.

你好。

Hi, Erika.

嗨，艾莉卡。

Hey, just a few follow up questions. Your cash position was twice that of last year. You know, as we think about, obviously that makes you more sensitive to short rates coming down. How do we think about how you are managing that cash position from an interest rate standpoint versus an anticipation of liquidity rules coming standpoint? And maybe give us a sense of how much is there sort of supervisor encouragement today to keep, liquid liquidity as we anticipate new rules?

嘿，只是幾個後續問題。你的現金狀況是去年的兩倍。正如我們所想，這顯然會讓你對短期利率下降更加敏感。我們如何從利率的角度考慮您如何管理現金頭寸，而不是從流動性規則即將到來的預期角度來看？也許讓我們了解，在我們預期新規則的同時，監管者在多大程度上鼓勵保持流動性？

Yeah, I would tell you that we are very focused internally on maintaining plenty of liquidity to deal with any uncertainty associated with potential rules, as well as the market. So that has just been a big driver of our positioning and why we've done that. But the other thing that it allows for us, yes it is a good liquidity risk management tool, but it does allow us to have a little bit more confidence on the interest rate risk management side as well, because we can be more aggressive on our liability management actions because of that cash position.

是的，我想告訴你，我們內部非常注重保持充足的流動性，以應對與潛在規則以及市場相關的任何不確定性。因此，這是我們定位的一個重要驅動力，也是我們這樣做的原因。但它給我們帶來的另一件事是，是的，它是一個很好的流動性風險管理工具，但它確實讓我們在利率風險管理方面更有信心，因為我們可以在我們的利率風險管理方面更為積極。

So it really is the combination of that liquidity and liability management benefits that we are focused on and why we continue to keep those levels that we have. As rates come down, and as we get through that environment and see stability in the market from a liquidity perspective, we really have an ability to take that down over time. As you pointed out, it was a big increase year-over-year. The year-over-year increase was a 20 basis point impact on our NIM. So, getting back to more normalized levels would be a nice trend for us from a NIM perspective.

因此，我們真正關注的是流動性和負債管理效益的結合，也是我們繼續保持現有水準的原因。隨著利率下降，當我們經歷這種環境並從流動性角度看到市場穩定時，我們確實有能力隨著時間的推移將其降低。正如您所指出的，同比增長很大。年比成長對我們的淨利差產生了 20 個基點的影響。因此，從 NIM 的角度來看，回到更正常化的水平對我們來說將是一個很好的趨勢。

Got it. And I'll follow up with that on the liability side later. So I wanted to squeeze in the second question, and this is for you Tim. Tim, I think that you and management and the board have done such a great job in terms of the makeover of Fifth Third and now investors, essentially take for granted and see you as a high quality bank among your peers. To that end, it seems like the CFPB stuff in terms of your response to Scott's question is in the rearview mirror.

知道了。稍後我將在責任方面跟進。所以我想提出第二個問題，這是給你的提姆。提姆，我認為你、管理層和董事會在改造 Fifth Third 方面做得非常出色，現在投資者基本上認為你是理所當然的，並將你視為同行中的高品質銀行。為此，就您對斯科特問題的回答而言，CFPB 的內容似乎已成為過去。

The one question I keep getting from investors is, are you still the proper owner for dividend? And it made sense in terms of when you did the deal and obviously solar is the future, but it's clearly something that is a product that's sold, not bought.

我不斷從投資者那裡得到的一個問題是，你仍然是股息的適當所有者嗎？就你何時達成交易而言，這是有道理的，顯然太陽能是未來，但它顯然是一種出售的產品，而不是購買的產品。

And given all the litigation against you, it just doesn't feel on brand from a quality perspective in terms of how you've rebuilt Fifth Third’s. So how are you thinking about, it's so small, but it comes up in conversations often, right? Like the impact to your stock, it feels like more than the impact to earning. So, love your thoughts here.

考慮到針對您的所有訴訟，從品質角度來看，您如何重建「五分之三」並沒有給品牌帶來任何影響。那麼你怎麼想，它這麼小，但它經常出現在談話中，對吧？就像對股票的影響一樣，它感覺不僅僅是對收入的影響。所以，喜歡你在這裡的想法。

Sure. So, just to make sure that I'm clear, and I know you were, But I mean, dividend has nothing to do with the CFPB. So those are two separate issues. Right, right. Okay. Yeah. look, on the dividend front, we are believers that the best way to get growth is to attach yourself to long-term secular trends. So the focus on the Southeast was to get the bank linked to the demographic migration that was going to support the growth in that market.

當然。所以，只是為了確保我清楚，我知道你是清楚的，但我的意思是，股利與 CFPB 無關。所以這是兩個不同的問題。對，對。好的。是的。看，在股息方面，我們相信獲得成長的最佳方式是關注長期趨勢。因此，東南部地區的重點是讓銀行與人口遷移聯繫起來，從而支持該市場的成長。

The focus on commercial payments has been about attaching ourselves to this trend of digitization in general and in particular the intermediation of these legacy workflows with software and in the case of dividend and what we've elected to do on the project finance on the commercial solar side of the equation. The focus is on both the diversification of energy sources with a focus on renewable.

對商業支付的關注點一直是我們關注數位化的總體趨勢，特別是這些傳統工作流程與軟體的中介，在股息的情況下，以及我們選擇在商業太陽能專案融資方面採取的行動等式的一邊。重點是能源多樣化和再生能源。

And I think in particular in the case of dividend, the need that we are going to have across the country to have more distributed power generation and storage, if we're going to avoid rolling brownouts and other sorts of issues that come from the fact that we have a very old energy infrastructure.

我認為，特別是在股息方面，如果我們要避免輪流限電和其他類型的問題，我們將需要在全國範圍內進行更多的分散式發電和儲存。

And in particular now with the explosion in data centers that are going to be required to support AI and otherwise, a lot of very power intensive commercial applications. So we view the residential solar and battery storage, as an important part of the way that our customers and people we don't do business with today are going to be able to meet their power needs in the future. And I actually think that for our products like this with an intermediate duration and a super prime credit risk profile, banks are the best source of liquidity, not the worst.

特別是現在，隨著資料中心的爆炸式增長，需要支援人工智慧和其他許​​多非常耗電的商業應用。因此，我們將住宅太陽能和電池儲存視為我們的客戶和我們今天不與之開展業務的人員未來能夠滿足其電力需求的重要組成部分。事實上，我認為，對於我們這樣具有中等期限和超優質信用風險狀況的產品，銀行是最好的流動性來源，而不是最差的。

The focus is just making sure that you do business with the best because you're right, the same way that in auto we're reliant on the quality of care that the dealer provides to ensure that you know our borrower has a good experience, we are reliant on the quality of the installer and you know the actions that we took shortly after acquiring dividend to refocus the business on the 150 best installers in the portfolio are going to continue to be, we think a very viable and high quality way to go to market.

重點是確保您與最好的人做生意，因為您是對的，就像在汽車行業一樣，我們依賴經銷商提供的服務品質來確保您知道我們的借款人有良好的體驗，我們依賴安裝人員的質量，您知道我們在獲得股息後不久採取的行動，將業務重新集中在投資組合中的150 名最佳安裝人員上，我們認為這是一種非常可行和高質量的方式去市場。

And just to follow-up on science, and I'm talking about a third question on are you confident that after the vendor changes that we've made, that system is not going to be in the new reflect, you know, some older, ladies saying I see that sort of solar panels forward, right, that that's the rest. I told you that the secular trend and of everything that you have to make so much elegant plant. But I think that's that investors are trying to our shareholders over time. But in your stock, which is obviously not an EPS impact, necessarily about a reputational litigation side.

只是為了跟進科學，我正在談論第三個問題，您是否有信心在我們所做的供應商更改之後，該系統不會出現在新的反映中，您知道，一些較舊的系統女士們說我看到前面有那種太陽能電池板，對吧，剩下的就是這些。我告訴過你，世俗的潮流和一切，你必須做出如此優雅的植物。但我認為，隨著時間的推移，投資者正在努力幫助我們的股東。但在你的股票中，這顯然不是每股盈餘的影響，必然與聲譽訴訟有關。

Sure. And there were some installer failures as interest rates rose because of volume went down. I think as a matter of policy here, we take care of the customer service and installers unable to complete a job. We completed en masse to the installers. We have done that in every case where we had an installer who was unable to complete a project and get it to PTO.

當然。由於銷量下降導致利率上升，出現了一些安裝失敗的情況。我認為作為這裡的一項政策，我們會照顧無法完成工作的客戶服務和安裝人員。我們向安裝人員集體完成。在安裝人員無法完成專案並將其交付給 PTO 的每種情況下，我們都會這樣做。

and you would expect that we should expect that we're going to continue to do that. That's the standard of care that we would provide for any customer inside the bank regardless of the channel that they came through regardless of the product. And so as those installer failures work their way through the system, we're going to take care of the customer.

你會期望我們應該期望我們會繼續這樣做。這是我們為銀行內任何客戶提供的服務標準，無論他們透過何種管道進入，無論產品如何。因此，當這些安裝程序故障在系統中發揮作用時，我們將照顧客戶。

Thank you so much, Tim.

非常感謝你，提姆。

Manan Gosalia at Morgan Stanley.

摩根士丹利的馬南·戈薩利亞。

Hey, good morning. I just wanted to follow up on your comments on the level of cash. You noted that the LCR is 137%. Is there room to take on a little bit more duration and deploy some of this excess liquidity because you really need to be that far above the 100% threshold?

嘿，早安。我只是想跟進您對現金水平的評論。您注意到 LCR 是 137%。由於確實需要遠高於 100% 的閾值，是否有空間延長久期並部署部分過剩流動性？

No, I think the other issue that you're facing right now as you're actually not getting paid to extend your duration, given the inversion of the yield curve, I mean that's 10 year rate this morning is were 4.2% lower earning [5.40%, 5.5%] on the front end recur. And given our rate outlook, we just don't think it makes sense at this point to be adding duration giving up earnings today when we think over the horizon that we're not sure the fourth one is a good entry point.

不，我認為你現在面臨的另一個問題是，考慮到殖利率曲線的倒掛，你實際上沒有得到延長期限的報酬，我的意思是，今天早上的 10 年期利率是收入降低了 4.2% [ 5.40%, 5.5%]在前端重複出現。考慮到我們的利率前景，當我們認為我們不確定第四個是不是一個好的切入點時，我們認為目前增加久期放棄今天的收益是沒有意義的。

Got it. And then Bryan, at our conference last month, you noted that you were seeing some competition driving loan spreads lower across the industry, and that's not necessarily a level that you're always comfortable with. Has that continued since then? And if yes, I know you don't want to lean in here, but with deposit costs coming down, is there some more room to lean in there and do?

知道了。然後布萊恩，在我們上個月的會議上，您指出，您看到一些競爭導致整個行業的貸款利差下降，而這不一定是您總是感到滿意的水平。從那時起，這種情況一直持續嗎？如果是的話，我知道你不想在這裡依靠，但是隨著存款成本的下降，還有更多的空間可以依靠嗎？

We're looking for the spots where it makes sense to continue to evaluate where loan growth should come from. As Tim talked about, we're certainly not going to sacrifice on earning appropriate returns as part of this. But just given some of the confidence that we have in terms of that we think we are going to see a cut this year, that we are going to start to see some relief and we are starting to see a little bit of the animal spirits in the market start to build.

我們正在尋找有意義的地方來繼續評估貸款成長的來源。正如提姆所說，我們當然不會為此犧牲獲得適當的回報。但只要我們有信心，我們認為今年將會看到削減，我們將開始看到一些緩解，我們開始看到一些動物精神市場開始建立。

Like our pipelines are looking better than where they were three months ago, six months ago. So we think there's going to be opportunity to continue to see some growth in those areas and feel good about positioning.

就像我們的管道看起來比三個月前、六個月前更好。因此，我們認為這些領域將有機會繼續看到一些成長，並對定位感到滿意。

Great. Thank you.

偉大的。謝謝。

Matt O'Connor at Deutsche Bank.

德意志銀行的馬特·奧康納。

Hi, guys. as always, there was an article earlier this week just talking about risk in the commercial bond market. And you guys have commercial real estate bond market that is. You guys have a good Slide on 43, just reminding all of us that a lot of it or most of it is agency. Can you talk to the non-agency CMBF, and I guess kind of like almost like dumbed down what these (inaudible).

嗨，大家好。像往常一樣，本週早些時候有一篇文章討論了商業債券市場的風險。你們有商業房地產債券市場。你們在 43 上有一個很好的幻燈片，只是提醒我們所有人，其中很多或大部分都是代理。你能和非機構 CMBF 談談嗎？（聽不清楚）。

You cut out there right at the end. Could you repeat the end of the question?

你在最後就剪掉了。你能重複問題的結尾嗎？

Just a line (inaudible) thanks.

只需一行（聽不清楚）謝謝。

Yeah. So we obviously have had a very cautious outlook from a commercial real estate perspective for a really long time. We do think that there is some value in participating in the market, and so where we've chosen to do that is in that non-agency portfolio in structured form. Because we do think those structural enhancements create a lot of credit protections for us.

是的。因此，很明顯，我們長期以來從商業房地產的角度對前景持非常謹慎的態度。我們確實認為參與市場有一定的價值，因此我們選擇以結構化形式的非機構投資組合參與。因為我們確實認為這些結構性改進為我們創造了許多信用保護。

The article that you were mentioning this week was in regards to a specific structure called a SASB, a Single Asset Single Borrower structure, which funny enough, basically every commercial real estate loan is a Single Asset Single Borrower structure.

您本週提到的文章是關於一種稱為 SASB 的特定結構，即單一資產單一借款人結構，這很有趣，基本上每筆商業房地產貸款都是單一資產單一借款人結構。

But in our case for our broader portfolio, we have very little SASB within our portfolio. I had mentioned about a month ago at Morgan Stanley that amount was about $150 million for us and all of our bonds in that structure are continuing to be performing very, very strongly.

但就我們更廣泛的投資組合而言，我們的投資組合中只有很少的 SASB。大約一個月前，我曾在摩根士丹利提到過，我們的金額約為 1.5 億美元，我們該結構中的所有債券都繼續表現非常非常強勁。

The broader structure, we have nearly 40% credit enhancement that is in front of us from a first loss perspective. And the weighted average loan-to-value on the non-agency portfolio is still around 60%. We use some advanced analytic tools that the industry has available and we stress the portfolio regularly. As part of our process, our credit underwriting team underwrites and evaluates the top 10 loans in every structure to make sure that we are comfortable. We monitor the portfolio very closely and continue to have no concerns on what we're seeing.

從更廣泛的結構來看，從第一個損失的角度來看，我們面臨著近 40% 的信用增級。非機構投資組合的加權平均貸款價值仍在 60% 左右。我們使用業界可用的一些先進分析工具，並定期對投資組合進行壓力。作為我們流程的一部分，我們的信用承銷團隊承保並評估每個結構中的前 10 筆貸款，以確保我們感到放心。我們非常密切地監控投資組合，並且對我們所看到的情況仍然不擔心。

Okay, perfect. That's helpful. Thank you.

好的，完美。這很有幫助。謝謝。

Christopher Marinac of Janney Montgomery Scott.

詹尼·蒙哥馬利·斯科特的克里斯多福·馬裡納克。

Thanks. Good morning. I wanted to ask about the commercial criticized and the fact that you had some of the charge-offs this quarter, would that improve those? And do you see any other kind of upgrade trends that could happen in future quarters?

謝謝。早安.我想問一下受到批評的廣告以及本季你們進行了一些沖銷的事實，這會改善這些情況嗎？您是否認為未來幾季可能會出現其他類型的升級趨勢？

I mean yeah, the charge-offs are going to make both of those loans. And overall, charge-offs are coming out of the criticize. So yeah, any time we're going to have commercial charge-offs, it's going to improve. We were pretty stable quarter-over-quarter in our criticize. And we're starting to see it level off. And so we’re not overly worried that we're going to see continued increases based on what we know today, based on unforeseen economic conditions.

我的意思是，是的，沖銷將用於這兩筆貸款。總的來說，沖銷是因為批評而產生的。所以，是的，任何時候我們進行商業沖銷，情況都會有所改善。我們的批評季度環比相當穩定。我們開始看到它趨於平穩。因此，根據我們今天所知，基於不可預見的經濟狀況，我們不會過度擔心我們會看到經濟持續成長。

Yeah, I think that the trend in criticized in general has actually been encouraging from my perspective. Greg, you may want to talk about this, but the only real growth we've seen in criticized are a few ABL facilities. If you look at it over the last 12 months, and we're well secured there and well within the collateral.

是的，我認為從我的角度來看，總體上受到批評的趨勢實際上是令人鼓舞的。格雷格，你可能想談談這個，但我們在批評中看到的唯一真正的增長是一些 ABL 設施。如果你看看過去 12 個月的情況，你會發現我們的安全狀況良好，並且在抵押品範圍內。

Exactly right. That was the driver of our first quarter increase in criticized assets. About 16% of our criticized assets are in that ADL fully conforming. We're not doing (technical difficulty) we're within assets. So I think the loss content. Now that said, you could have a weakness or well-defined weakness that we'll work out of. But I feel good about the trending that we've seen and for the rest of this year, again based on what I know today, you know I would expect stable, criticized levels.

完全正確。這是我們第一季批評資產增加的驅動因素。我們受到批評的資產中約有 16% 完全符合 ADL。我們沒有在資產範圍內做（技術難度）。所以我認為損失內容。話雖如此，您可能有一個弱點或明確的弱點，我們將解決這些弱點。但我對我們所看到的趨勢感到滿意，並且在今年剩下的時間裡，再次根據我今天所了解的情況，你知道我預計會出現穩定的、受到批評的水平。

Great. Thank you both for the background. I appreciate it.

偉大的。謝謝兩位的背景介紹。我很感激。

And we'll go next to Gerard Cassidy, RBC.

接下來我們將請 RBC 的 Gerard Cassidy。

Welcome back.

歡迎回來。

Thank you. I got a follow-up for you. talking about loan growth, I noticed there was a small uptick in growth in the home equity portfolio and ticketless, Slide 35, you're going to show this data set. What's the opportunity for you? Because I'm one of your bank account precursor an uptick as well in home equity lending in view of the fact that people are not refinancing their houses because of where rates are, but there's a ton of equity in houses is have you guys considered and looking at this and maybe in a scenario of potential growth? I know the home equities got a bad reputation from what happened in 08, 09, but obviously the world is different today. Any of your thoughts here?

謝謝。我給你做了後續報道。談到貸款成長，我注意到房屋淨值投資組合的成長略有上升，而且無票，投影片 35，您將顯示此資料集。對你來說有什麼機會？因為我是你們銀行帳戶的前身之一，鑑於人們不會因為利率的問題而對房屋進行再融資，所以房屋淨值貸款也有所增加，但房屋淨值大量，你們考慮過嗎？在潛在成長的情況下？我知道房屋股票因 08、09 年發生的事情而名聲不佳，但顯然今天的世界已經不同了。在這裡你有什麼想法嗎？

Yeah, I tell people here all the time that the first rule of whole is that you have to stop digging. So it is nice after many years of having brackets around the change in balance number for home equity to see a turn of the tide there. I would not anticipate that it's a big driver of our loan growth over the course of the next few quarters, not because we wouldn't like it to be, but if you look at the amount of spending and home improvement in general right now, just look at the big home improvement retailers, you'll see that that's a category that remains pretty depressed.

是的，我一直告訴這裡的人們，第一條規則就是你必須停止挖掘。因此，經過多年對房屋淨值餘額變化的括號括起來，看到趨勢的轉變是件好事。我預計它不會成為我們未來幾季貸款成長的主要推動力，不是因為我們不希望這樣，而是如果你看看現在的總體支出和房屋裝修情況，只要看看大型家居裝修零售商，您就會發現這是一個仍然相當低迷的類別。

That said, I do think that the right strategy here for homeowners who have these 3% fixed rate mortgages is going to be to improve where they are as opposed to moving. And home equity is a great way to do that. So we would like to see more growth in home equity. We like the credit quality there. It's going to be slow and steady here in terms of the pickup.

也就是說，我確實認為，對於擁有 3% 固定利率抵押貸款的房主來說，正確的策略是改善他們的現狀，而不是搬家。房屋淨值是實現這一目標的好方法。因此，我們希望看到房屋淨值有更多成長。我們喜歡那裡的信用品質。就皮卡而言，這裡將會緩慢而穩定。

Great. Appreciate the color.

偉大的。欣賞顏色。

Absolutely.

絕對地。

And that does conclude our Q&A session. I want to now turn the conference back over to Matt Curoe for closing remarks.

我們的問答環節到此結束。我現在想將會議轉回由馬特·庫羅（Matt Curoe）發表閉幕詞。

Thank you, Audra, and thanks, everyone, for your interest in Fifth Third, please contact Investor Relations department. If you have any follow-up questions I'll address, you may now disconnect the call.

謝謝奧德拉，也謝謝大家，如果您對 Fifth Third 有興趣，請聯絡投資者關係部門。如果您有任何我要解決的後續問題，現在可以掛斷電話。

Thank you. This does conclude today's conference call. Thank you for your participation. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。