12:29 PM EDT, 07/19/2024 (MT Newswires) -- Fifth Third Bancorp ( FITB ) , Huntington Bancshares ( HBAN ) and Regions Financial ( RF ) on Friday reported second-quarter financial results that fell year over year amid declines in net interest income.

Fifth Third Bancorp's ( FITB ) earnings decreased to $0.81 a share from $0.82 a year earlier, while revenue -- expressed as the sum of fully taxable equivalent net interest income and total noninterest income -- dropped to $2.09 billion from $2.19 billion. Analysts polled by Capital IQ were looking for $0.85 and $2.12 billion, respectively.

Net interest income, or NII, declined 5% to $1.39 billion, while net interest margin contracted to 2.88% from 3.10%. Excluding certain customer remediations, NII decreased 4%, reflecting the impact of higher funding costs and deposit mix shift from demand to interest-bearing accounts, offset in part by higher loan yields, the lender said.

"Our strong liquidity position continues to provide flexibility to navigate through uncertain economic and regulatory environments," Fifth Third Bancorp ( FITB ) Chief Executive Tim Spence said in a statement. "We remain well-positioned to respond to a range of economic outcomes."

Huntington's EPS fell year over year to $0.30 from $0.35, while revenue declined to $1.82 billion from $1.85 billion. The Street was looking for $0.28 per share. Fully taxable equivalent NII decreased 2% to $1.33 billion. Net interest margin fell to 2.99% from 3.11% amid higher cost of funds in an elevated interest rate environment, as well as $13 billion in average interest-bearing deposit growth, the company said.

"Our solid capital levels and robust liquidity profile enable us to continue to deliver accelerated loan growth," Huntington CEO Steve Steinour said in a statement. "This outlook is supported by both our existing and new teams across the company and is expected to drive higher revenues over the second half of the year, with continued momentum into 2025 and beyond."

Regions Financial's ( RF ) EPS decreased to $0.52 for the quarter through June 30 from $0.59 a year earlier, while revenue without the FTE adjustment for NII declined nearly 12% to $1.73 billion. The Street had projected $0.48 in EPS. NII excluding the FTE adjustment fell 14% to $1.19 billion, while net interest margin shrank to 3.51% from 4.04%.

The lender said it expects NII to "modestly increase" over the second half of the year. "The investments we are making in talent, technology, products and services will continue to benefit us as macroeconomic conditions improve," Regions Financial ( RF ) CEO John Turner said.

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