Fifth Third Bancorp (Nasdaq: FITB) today reported second quarter 2013 net income of $603 million, compared with net income of $422 million in the first quarter of 2013 and net income of $385 million in the second quarter of 2012. After preferred dividends, second quarter 2013 net income available to common shareholders was $594 million, or $0.66 per diluted share, compared with first quarter net income to common shareholders of $413 million, or $0.46 per diluted share, and net income to common shareholders of $376 million, or $0.40 per diluted share, in the second quarter of 2012.
Second quarter 2013 noninterest income results included a $242 million gain on the sale of Vantiv shares; a $76 million positive valuation adjustment on the Vantiv warrant; a pre-tax benefit of $10 million resulting from a settlement related to a previously surrendered bank-owned life insurance (BOLI) policy; and a $5 million charge related to the valuation of the Visa total return swap. Second quarter noninterest expense included $33 million in charges to increase litigation reserves.
First quarter 2013 noninterest income included a $34 million positive valuation adjustment on the Vantiv warrant; a $7 million gain on the sale of certain Fifth Third Asset Management (FTAM) advisory contracts; and a $7 million charge related to the valuation of the Visa total return swap. Net gains on investment securities were $17 million. First quarter noninterest expense included $9 million in charges to increase litigation reserves. First quarter income tax expense was higher by $12 million due to the seasonal expiration of employee stock options.
Second quarter 2012 results included a $56 million positive valuation adjustment on the Vantiv warrant; a $17 million negative valuation adjustment associated with bank premises held-for-sale; and an $11 million charge related to the valuation of the Visa total return swap. Net gains on investment securities were $3 million. Second quarter 2012 noninterest expense included a $9 million reduction to FDIC insurance expense.
For the Three Months Ended
|Earnings ($ in millions)|
|Net income attributable to Bancorp||$603||$422||$399||$363||$385||43%||57%|
|Net income available to common shareholders||$594||$413||$390||$354||$376||44%||58%|
|Common Share Data|
|Earnings per share, basic||0.69||0.47||0.44||0.39||0.41||47%||68%|
|Earnings per share, diluted||0.66||0.46||0.43||0.38||0.40||43%||65%|
|Cash dividends per common share||0.12||0.11||0.10||0.10||0.08||9%||50%|
|Return on average assets||1.98||%||1.41||%||1.33||%||1.23||%||1.32||%||40%||50%|
|Return on average common equity||17.6||12.5||11.5||10.4||11.4||41%||54%|
|Return on average tangible common equity||21.6||15.4||14.1||12.8||14.1||40%||53%|
|Tier I capital||11.07||10.83||10.65||10.85||12.31||2%||(10%)|
|Tier I common equity||9.44||9.70||9.51||9.67||9.77||(3%)||(3%)|
|Net interest margin (a)||3.33||3.42||3.49||3.56||3.56||(3%)||(6%)|
|ommon shares outstanding (in thousands)||851,474||874,645||882,152||897,467||918,913||(3%)||(7%)|
Average common shares outstanding (in thousands):
|(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 not the rounded dollar amounts.|