Thomas Letty's questions to Fifth Third Bancorp (FITB) leadership • Q4 2024
Question
Thomas Letty, on behalf of Gerard Cassidy, asked for the 2025 outlook on deposit rates assuming the Fed is done cutting, and requested color on the quarterly increase in C&I nonaccrual loans.
Answer
CFO Bryan Preston projected continued modest reductions in deposit costs, aided by maturing CDs, with the ultimate trajectory dependent on loan growth. Chief Credit Officer Greg Schroeck explained the C&I nonaccrual increase was driven by a few specific credits without a discernible trend, noting the largest inflow is expected to pay down within the first half of the year.