- 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) 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), 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.
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 Plus 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