- The potential increase in the quarterly common stock dividend, which will be considered by the Board at its scheduled quarterly meeting in June
- The potential repurchase of up to $750 million in trust preferred securities (TruPS), subject to the determination of a regulatory capital event, and replacement with the issuance of a similar amount of Tier 2-qualifying subordinated debt
- The potential conversion of the $398 million in outstanding Series G 8.5 percent convertible preferred stock into approximately 35.5 million common shares issued to the holders. 1 (Note that these securities are currently accounted for under the “if-converted” method for inclusion in common shares for earnings per share reporting purposes.)
- If this conversion were to occur, we would intend to repurchase the common shares issued in the conversion up to $550 million in market value 2, and issue $550 million in preferred stock.
- The net effect of the potential Series G transactions described above is to produce a Tier 1 capital neutral outcome (Tier 1 common equity would be modestly reduced by $152 million). It would be approximately neutral to common shares outstanding, but would reduce diluted common shares for earnings per share reporting purposes by approximately 33.6 million shares. 3
- The potential repurchase of common shares in an amount up to $984 million, including any shares issued in a Series G preferred stock conversion (up to $550 million in value). 4
- In addition, we would currently intend to make incremental repurchases of common shares in the amount of any after-tax gains from the sale of Vantiv, Inc. (“Vantiv”) stock.
- These common share repurchase plans were intended to limit the further accumulation of excess common equity capital during the CCAR period.
- The potential issuance of an additional $500 million in preferred stock to increase the non-common portion of Tier 1 capital as defined under Basel III proposed rules
Fifth Third Announces 2013 CCAR Capital Plan
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