Fifth Third reported its second-quarter results on Friday, with quarterly profit rising year-over-year, driven by an increase in net interest income and higher fee income from its capital markets and wealth management businesses.

The financial results show that net income available to common shareholders for the quarter was $763 million, or $0.83 per share, compared to $591 million, or $0.88 per share, in the same period last year. Excluding one-time items, adjusted earnings per share were $1.02.

Net interest income—the difference between interest earned from loans and interest paid on deposits—grew by more than 48% year-over-year to $2.22 billion. Noninterest income increased by 41% to $1.059 billion. Total revenue for the second quarter reached $3.28 billion, a 46.7% increase from the prior year, surpassing analyst expectations. The net interest margin expanded to 3.36%, up 6 basis points from the previous quarter.

Breaking down the business segments, capital markets fees surged 71% to $154 million, benefiting from a rebound in merger and acquisition activity. Wealth and asset management revenue saw a significant 54% increase to $256 million. Credit performance improved, with the provision for credit losses at $129 million, lower than the $173 million recorded a year ago. The net charge-off rate was 0.30%, its lowest level since the second quarter of 2023.

CEO Tim Spence stated that core businesses continue to grow, with strong momentum in fee-based businesses, particularly in wealth and asset management, commercial payments, and capital markets. He noted that deposit generation efforts in the southwestern markets acquired from Comerica have exceeded expectations.

The bank forecasts full-year net interest income to be between $8.74 billion and $8.8 billion. Following the earnings release, shares of Fifth Third rose nearly 2% in pre-market trading.