Fifth Third Bancorp Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : My first question is on the potential coming regulatory environment. And Jamie, you probably need something stronger than coffee for this question. But the first is on CET1. You generated 30 basis points of capital organically this quarter. And I'm wondering as there is no NPR yet, but the market is anticipating tighter capital liquidity standards. Tim, how do you think about the endpoint of capital for an institution like Fifth Third from this 9.25%? And how should we think about what that sort of end point is over the medium term and the role of share repurchases and potentially more RWA optimization?

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : Got it. It's amazing how resilient banks can be when there are some level to (inaudible). And just a follow-up question to that. Fifth Third -- this management team is sort of well known for being more forward thinking whether it's your balance sheet resilience to what's been happening in the rate environment or that ACL ratio. And as we think about, like you mentioned, Tim, sort of the market trying to force the regional banks into a tighter regime in terms of how they're valuing the stocks versus what we know to be -- what tends to be a very slow regulatory process in terms of NPR comment period phase-in. How do you balance that sort of market demand for higher capital, TLAC-eligible debt, greater cash liquidity versus the regulatory timeline that we don't know nothing concrete today?