Fifth Third Bank’s overall noninterest expenses increased in the third quarter driven by higher technology and communication spend. 

The $214 billion bank saw a $23 million increase from Q2 in noninterest expenses in the third quarter to $1.24 billion, driven by continued investments in its technology and branches, according to its earnings supplement released today. 

Technology and communications spend ticked up 5% year over year to $121 million. 

“Fourth-quarter total adjusted noninterest expenses are expected to be stable compared to the third quarter as the increases in revenue-based compensation and the investments in branches and technology are largely offset by efficiencies achieved in other areas,” Bryan Preston, chief financial officer at Fifth Third, said during today’s earnings call. 

BY THE NUMBERS: In Q3, Fifth Third reported: 

• Total revenue of $2.1 billion, down 1% YoY; 

• Headcount of 18,579, down 1% YoY;  

• Efficiency ratio of 56.1%, flat YoY; and 

• Branch count relatively flat YoY at 1,072. 

NOTEWORTHY: Earlier this month, the bank combined its commercial banking offerings under its newly established Corporate & Investment Banking Division to consolidate advisory and product sales offerings, Kevin Khanna, the recently appointed head of corporate and investment banking at Fifth Third, told Bank Automation News. 

The division will provide commercial clients with industry insights, financial expertise and data-driven advisory advice, Khanna said. 

“We really have the ultimate quarterback team here that can provide a lot of insight and advice and then make sure if there’s a specific product need that they have, that we then bring in that expert on that product,” he said. 

MARKET REACTION: Shares of Fifth Third Bancorp (FITB) were down 1.54% to $44.67 per share at market close. Fifth Third has a market capitalization of $30.2 billion. 

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