Fifth Third Bancorp (NASDAQ:FITB) Q1 2023 Earnings Call Transcript

This is all stuff that’s tied to the $2 trillion that the government intends to invest and rebuilding supply chains here in the U.S. And if you just look at the manufacturing jobs that were added last year, like there were 348,000 manufacturing jobs added in the U.S., compared to I think 6000 in 2010, as an example and 60% of those were in our footprint.So the markets that are going to benefit from the government’s investment in infrastructure and domestic supply chain. And that sort of broader trend and reshoring are going to do better than markets that were more reliant on technology and professional services or that have more profound challenges as it relates to state budget deficits, or challenged city centers, there just is going to be a divergence that materializes there.

So I at least think you should be more focused on regional economic data than on the economy overall, as you think about where losses may materialize.Ebrahim Poonawala That’s great color. Thanks.Operator Our final question comes from the line of Christopher Marinec from Janney Montgomery Scott. Please proceed.Christopher Marinec Thanks for taking my question. Tim, just want to ask about dividend finance kind of skewing the loan growth this year maybe in a positive way to where the loan growth ex dividend is very conservative. Is that a fair way of thinking it through?Timothy Spence Yes. Yes, the two areas of the portfolio where there is any material loan growth this year Chris are the dividend finance portfolio as we see the benefit of the balances rolling on because we are portfolio in their production.

They were originated to sell before we bought them. And then in C&I which is really good core steady production in the middle market where I have been a part because of the dynamics around manufacturing, you’re seeing really solid production out of our legacy markets in the Midwest and the continued growth and provide right which is of course linked to healthcare and primarily, non-elective dental invent.Christopher Marinec Got it. And the rest is rolling off and not…Timothy Spence It’s kind of receivable or in modest decline.Christopher Marinec Got it? Very well. Thank you, Tim. I appreciate it.Operator I would now like to turn the call over to Chris Doll for closing remarks.Chris Doll Thanks, Molly. And thanks everyone for your interest in Fifth Third.

Please contact the IR department if you have any follow up questions. Molly, you can now disconnect the call.Operator Thank you ladies and gentlemen. This does conclude today’s call. Thank you for your participation. You may now disconnect.