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Fifth Third: Bank Stock Winner

The KBW Bank Index (I:BKX) was up slightly to close at 56.87, with all but seven of the 24 index components ending with gains.


Fifth Third

Shares of Fifth Third Bancorp of Cincinnati have returned 13% this year, following a 23% return in 2012. The shares trade for 1.4 times tangible book value, according to Thomson Reuters Bank Insight, and for 9.8 times the consensus 2014 earnings estimate of $1.73. The consensus 2013 EPS estimate is $1.71.

Based on a quarterly payout of 11 cents, the shares have a dividend yield of 2.58%.

Fifth Third on April 18 reported first-quarter net income attributable to common shareholders of $413 million, or 46 cents a share, compared with $390 million, or 43 cents a share, in the fourth quarter, and $421 million, or 45 cents a share, in the first quarter of 2012.

The first-quarter results included a benefit of roughly $22 million, or 2 cents a share after taxes, on the valuation of the company's warrant holds in Vantiv (VNTV), Fifth Third's former payment processing subsidiary, which was spun off in 2009.

The results for the first quarter of 2012 had been boosted by positive adjustments of roughly $90 million, or 10 cents a share, on Vantiv shares and warrants.

Excluding the special items, Fifth Third said its first-quarter earnings came to 44 cents a share, increasing 22% from the first quarter of 2012.

Please see TheStreet's earnings coverage for a discussion on Fifth Third's financial results, which included very strong commercial loan growth.

FITB Chart FITB data by YCharts

Interested in more on Fifth Third Bancorp? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
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