(Boursier.com) — Fifth Third Bancorp posted a net profit down 10% in the first quarter, as the rise in deposit costs weighed on the bank’s interest income. Regional banks have steadily increased the interest rates they offer on deposit accounts in a bid to retain customers looking to earn better returns by putting their money into higher-yielding alternatives. Net interest income – the difference between what a bank earns on loans and pays on deposits – fell nearly 8.8% to $1.38 billion in the quarter. The net interest margin thus contracted to 2.86%, compared to 3.29% the previous year. Net income reached $480 million, or 70 cents per share, compared to $535 million or 78 cents per share a year earlier. The Cincinnati-based group continues to expect its NII to decline between 2% and 4% in 2024.
©2024 Boursier.com