- Fourth-quarter EPS of 43 cents beats the consensus estimate of a 41-cent profit.
- Mortgage revenue rises 38% sequentially.
- Period-end total commercial loans increase by 5% sequentially; C&I loans by 8%.
- Net interest income declines; net interest margin narrows.
- Fourth quarter ROA of 1.33%, ROTCE of 14.1%, both increasing sequentially and year-over-year.
Updated with midday market action and comments from Jefferies analyst Ken Usdin.
NEW YORK (TheStreet) -- Fifth Third Bancorp (FITB) of Cincinnati on Thursday announced another quarter of very strong mortgage revenue growth and solid increases in commercial and industrial loan balances.
The company reported fourth-quarter net earnings available to common shareholders of $390 million, or 43 cents a share, increasing from $354 million, or 38 cents a share in the third quarter, and $305 million, or 33 cents a share, in the fourth quarter of 2011.For all of 2012, Fifth Third reported earnings available to common shares of $1.541 billion, or $1.66 a share, increasing from $1.094 billion, or $1.18 a share, in 2011. The fourth-quarter results beat the consensus estimate of a 41-cent profit, among analyst polled by Thomson Reuters. The fourth-quarter results reflected a number of one-time items, including a $157 million gain on the sale of Vantiv (VNTV) shares, which amounted to $102 million after taxes, adding 11 cents a share to earnings. Fifth Third's former payment processing subsidiary completed its initial public offering in March. Fifth Third held a 33% stake in Vantiv as of Dec. 31. Negative after-tax one-time items for the fourth-quarter included:
- $87 million, or nine cents a share, for debt extinguishment.
- $12 million, or a penny a share, on a reduced valuation for a warrant to purchase Vantiv shares.
- $10 million, or a penny a share, "related to the valuation of a Visa total return swap."
- $19 million, or two cents a share, to increase mortgage putback reserves, "due to new Freddie Mac (FMCC) guidance for potential 2004-06 repurchase claims."
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