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Fifth Third Announces Second Quarter 2013 Net Income To Common Shareholders Of $594 Million Or $0.66 Per Diluted Share

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.

       

 

   

 

Earnings Highlights

                   
                                               

For the Three Months Ended

   

% Change

June March December September June
2013     2013     2012     2012     2012     Seq     Yr/Yr
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%
 
Financial Ratios
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%)
Efficiency (a) 52.3 59.8 65.2 63.7 59.4 (12%) (12%)
 
ommon shares outstanding (in thousands) 851,474 874,645 882,152 897,467 918,913 (3%) (7%)

Average common shares outstanding (in thousands):

Basic 858,583 870,923 884,676 904,475 913,541 (1%) (6%)
Diluted 900,625 913,163 925,585 944,821 954,622 (1%) (6%)
 
(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.
 

“Second quarter results were again strong for Fifth Third,” said Kevin T. Kabat, CEO of Fifth Third Bancorp. “The Company reported $594 million in net income to common shareholders. Return on assets was 1.98 percent and return on average tangible common equity* was 21.6 percent for the quarter including Vantiv-related gains, and were 1.30 percent and 14.1 percent, respectively, excluding them.

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