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Fifth Third Announces 2012 Earnings Per Share Of $1.66, Up 41 Percent From 2011

Third quarter 2012 noninterest income included a $16 million negative valuation adjustment on the Vantiv warrant; $13 million in gains recognized on the sale of certain Fifth Third funds; and a $1 million reduction related to the valuation of the Visa total return swap. Net gains on investment securities were $2 million. Third quarter noninterest expense included $26 million of debt extinguishment costs associated with the redemption of Fifth Third Capital Trust V and Fifth Third Capital Trust VI trust preferred securities (TruPS), a $5 million benefit from the sale of affordable housing investments, $5 million in charges to increase litigation reserves, and $2 million of expenses associated with the sale of certain Fifth Third funds. Results also included an additional $24 million of charges associated with the increase of the mortgage representation and warranty reserve. Fourth quarter 2011 results included a $54 million pre-tax charge to noninterest income related to the valuation of the Visa total return swap and $10 million in charges to increase litigation reserves, primarily reserves associated with bankcard association membership. Fourth quarter 2011 results also included $10 million in positive valuation adjustments on Vantiv puts and warrants and investment securities gains of $5 million.

Earnings Highlights

  For the Three Months Ended   % Change
December   September   June   March   December    
2012   2012   2012   2012   2011   Seq   Yr/Yr
Earnings ($ in millions)
Net income attributable to Bancorp $399 $363 $385 $430 $314 10% 27%
Net income available to common shareholders $390 $354 $376 $421 $305 10% 28%
Common Share Data
Earnings per share, basic 0.44 0.39 0.41 0.46 0.33 13% 33%
Earnings per share, diluted 0.43 0.38 0.40 0.45 0.33 13% 30%
Cash dividends per common share 0.10 0.10 0.08 0.08 0.08 - 25%
Financial Ratios
Return on average assets 1.33% 1.23% 1.32% 1.49% 1.08% 8% 23%
Return on average common equity 11.5 10.4 11.4 13.1 9.5 11% 21%
Return on average tangible common equity 14.1 12.8 14.1 16.2 11.9 10% 19%
Tier I capital 10.65 10.85 12.31 12.20 11.91 (2%) (11%)
Tier I common equity 9.51 9.67 9.77 9.64 9.35 (2%) 2%
Net interest margin (a) 3.49 3.56 3.56 3.61 3.67 (2%) (5%)
Efficiency (a) 65.2 63.7 59.4 58.3 67.5 2% (3%)
Common shares outstanding (in thousands) 882,152 897,467 918,913 920,056 919,804 (2%) (4%)
Average common shares outstanding (in thousands):
Basic 884,676 904,475 913,541 915,226 914,997 (2%) (3%)
Diluted 925,585 944,821 954,622 957,416 956,349 (2%) (3%)
(a) Presented on a fully taxable equivalent basis
The percentages in all of the tables in this earning release are calculated on actual dollar amounts rather than the rounded dollar amounts.

“Strong fourth quarter earnings of $399 million were highlighted by quality loan production, fee income growth, and credit improvement,” said Kevin Kabat, CEO of Fifth Third Bancorp. “Every caption in fee income was up for the quarter, including mortgage banking revenue up 29 percent and corporate banking revenue up 13 percent sequentially. Net interest income was consistent with third quarter results and stronger than expected.

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