Usdin said that the company's fourth-quarter guidance "calls for: 1) $890mm of net interest income (worse than expected), 2) NIM compression, 3) $710mm in fees (better than expected), 4) $970mm-$975mm in expenses (worse than expected), and 5) $150mm in charge-offs (better than expected)." In sum, the guidance calls for fourth-quarter pre-provision earnings of about $617 million, which is ahead of Usdin's estimate of $594 million.
Fifth Third Bancorp's shares returned 21% year-to-date, through Wednesday's close at $15.13.
The shares trade for 1.3 times their reported Sept. 30 tangible book value of $12.12, and for 10.5 times the consensus 2013 EPS estimate of $1.59. Based on a quarterly payout of f10 cents, the shares have a dividend yield of 2.64%.
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Written by Philip van Doorn in Jupiter, Fla.