3. Fifth Third Bancorp
Shares of Fifth Third Bancorp (FITB) of Cincinnati, Ohio closed at $11.90 Wednesday, 24% year-to-date. The company owes $3.4 billion in TARP money.Income Statement The company reported second net income to common stockholders of $130 million or 16 cents a share, compared a net loss to common stockholders of $72 million or nine cents a share in the first quarter and net income to common stockholders of $856 million or $1.15 a share in the second quarter of 2009, when Fifth Third recorded a $1.8 billion gain on the sale of its financial institutions processing business. A major factor in the company's second-quarter profit was release in reserves brought about by an improvement in asset quality. Fifth Third's second quarter loan loss provision was $325 million while its net loan charge-offs were $433 million, for a release of $108 million in reserves, however, the company's loan loss reserves were left covering a high 4.71% of total loans. Balance Sheet Total assets were $112 billion as of June 30. The nonperforming assets ratio was 3.14%, declining from 3.38% a year earlier. The second-quarter net charge-off ratio was 2.21%. As of June 30, Fifth Third's Tier 1 leverage ratio was 12.24%, its total risk-based capital ratio was 18.00% and its tangible common equity ratio was 7.79%. Stock Ratios Fifth Third's shares trade for 1.3 times tangible book value according to SNL Financial, and 12.1 times the consensus 2011 earnings estimate of 98 cents a share. The forward P/E would drop to 8.5 based on the 2012 consensus estimate of $1.41 in earnings per share among analysts polled by Thomson Reuters. Analyst Ratings Among the 21 analysts covering Fifth Third, four have buy ratings, 14 recommend holding the shares and three recommend investors sell the shares.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV