This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fifth Third Beats as Expenses Decline (Update 2)

  • Fifth Third reports second-quarter earnings of 40 cents a share, beating the consensus estimate by a nickel.
  • Results include $36 million after-tax gain on sale of Vantiv shares.
  • Net interest income flat; noninterest expense down 4% sequentially.

Updated with comment from Jefferies analyst Ken Usdin and FBR analyst Paul Miller and market close information.

NEW YORK ( TheStreet) -- Fifth Third Bancorp (FITB - Get Report) of Cincinnati on Thursday reported second-quarter earnings available to common shareholders of $376 million, or 40 cents a share, beating the 35-cent share consensus estimate, among analysts polled by Thomson Reuters.

The second-quarter results included after-tax gains of roughly $36 million, or four cents a share, on the sale of shares in Vantiv (VNTV - Get Report), Fifth Third's former payment processing subsidiary, which was spun-off during the first quarter.

Earnings declined from $421 million, or 46 cents a share, during the first quarter, when the company saw after-tax benefits of roughly $82 million, or nine cents a share, from the Vantiv spinoff, but increased slightly from $328 million, or 35 cents a share, in the second quarter of 2011.

Fifth Third's shares rose slightly to close at $13.80.

Second-quarter net interest income declined to $899 million from $903 million the previous quarter, while increasing from $869 million a year earlier. Fifth Third's net interest margin -- the difference between the average yield on loans and investments and the average cost for deposits and borrowings -- narrowed by five basis points during the second quarter, to 3.56%, in line with the industry trend in the prolonged low-rate environment.

Second-quarter noninterest income totaled $678 million, declining from $769 million during the first quarter, again mainly reflecting the Vantiv spinoff, and increased from $656 million during the second quarter of 2011. During the second quarter, mortgage banking income totaled $183 million, declining from $204 million the previous quarter, but increasing from $162 million a year earlier.

Second-quarter noninterest expenses totaled 937 million and were "reduced by $17 million related to affordable housing investments and FDIC insurance." Noninterest expenses were $973 million the previous quarter, which included a seasonal spike in compensation and employee benefits and $901 million in the second quarter of 2011.

The second-quarter bottom line was boosted by a $110 million release of loan loss reserves.

The company's second-quarter return on average assets was 1.32%, declining from 1.49% in the first quarter, but increasing from 1.22% in the second quarter of 2011. The second-quarter return on average common equity was 11.4%, declining from 13.1% the previous quarter, and increasing from 11.0% a year earlier.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FITB $18.68 0.00%
VNTV $46.36 0.00%
AAPL $110.38 0.00%
FB $92.07 0.00%
GOOG $626.91 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs