US FINANCIALS: Fifth Third Bank 3Q25
Oct-17 17:08
FITB had a decent quarter, and asset quality remains healthy, with the exception of the previously disclosed Tricolor charge which is a small piece of FITB’s $123B total loans. FITB performance metrics generally superior to CMA’s (CMA results follow), though there are LT strategic benefits to be gained depending on ability to execute.
- NII $1.5B up 2% QQ, NIM 3.13% flatish, loans of $123.1B flat QQ +5% YY
- Non interest income (~33% of total revs) of $789MM +5% YY
- Deposits up slightly QQ to $165B: 75% IBD
- NCO 1.09% rose on Commercial NCO (Tricolor charge), NPA of 0.65% flatish and inline with 3Q19.
- Commercial NCO of 1.46%, driven by previously disclosed Tricolor charge. Commercial NCO of 0.51% excluding Tricolor charge was till up versus 2Q25’s 0.38%.
- Consumer NCO of 0.52% steady YTD, modestly below 3Q19 level; 30D+ DEQ 0.47% in-line with LTM. Avg origination FICO 768 (2% sub 660).
- Autos NCO 0.4% , 30D+ DEQ 0.68% declined YY, QQ.
- CRE loans flat YY: NPL 0.24%, NCO 0.03%
- Leverage Loans 2.5% of $124B total loans spread broadly across industries, with criticized ratio lower this quarter.
- Overall ACL 1.96%
- Loans mix ~45% commercial/40% Consumer/15% CRE. Auto (within Consumer) is 14%.
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US TSYS: Extending Lows
Sep-17 17:03
- Treasury futures are currently extending lows, albeit on lighter volumes with the FOMC rate announcement an hour away.
- Currently, the Dec'25 10Y trades -8.5 at 113-09 (yld 4.0470% +.0209) vs. 113-08 low - remains above initial firm support to watch is 112-28, the 20-day EMA.
- Curves flatter: 2s10s -2.268 at 49.990, 5s30s -4.261 at 101.951.
- Cross asset update: Stocks mixed, DJIA up 197.81 points (0.43%) at 45955.83, S&P E-Minis down 14.75 points (-0.22%) at 6652.75, Nasdaq down 125.8 points (-0.6%) at 22208.25. Bbg US$ index inching off recent lows (BBDXY +.20 at 1189.10).
US: Americans Wary Of Speed Of AI Development - Gallup
Sep-17 16:57
A new Gallup survey has found that 80% of US adults believe the government should maintain rules for AI safety and data security, even if it means developing AI capabilities more slowly.
- According to Gallup, In contrast, 9% say the government should prioritize developing AI capabilities as quickly as possible, even if it means reducing rules for AI safety and data security. Eleven percent of Americans are unsure.
- Gallup notes, “This preference is notable against the backdrop of global competitiveness in AI development. Most Americans (85%) agree that global competition for the most advanced AI is already underway, and 79% say it is important for the U.S. to have more advanced AI technology than other countries.”
Figure 1: Which should the government prioritise when it comes to AI?
Source: Gallup
OPTIONS: Call Structures Bought In Sonia And Euribor Wednesdays
Sep-17 16:52
Wednesday's Europe rates/bond options flow included:
- ERH6 98.00/98.0625cs x1 vs 98.4375/97.875^^ x0.5, bought the cs for 1 in 8k total
- ERM6 98.375/98.25/97.9375p ladder, sold in ~4.58k, just over 5k Total on the day
- SFIZ5 96.15/96.20/96.25/96.30c condor, bought for 0.75 in 10k Total
