Fifth Third Bancorp (Nasdaq: FITB) today reported third quarter 2013 net income of $421 million, compared with net income of $591 million in the second quarter of 2013 and net income of $363 million in the third quarter of 2012. Third quarter 2013 net income available to common shareholders was also $421 million, or $0.47 per diluted share, as there were no preferred dividends paid in the third quarter. After preferred dividends, second quarter 2013 net income to common shareholders was $582 million, or $0.65 per diluted share, and third quarter 2012 net income to common shareholders was $354 million, or $0.38 per diluted share.
Third quarter 2013 noninterest income included an $85 million gain on the sale of Vantiv shares and a $6 million positive valuation adjustment on the Vantiv warrant. Third quarter noninterest expense included $30 million in charges to increase litigation reserves, $5 million in severance expense, and $5 million in large bank assessments for 2012 and 2013 initiated by regulators under the Dodd-Frank Act. Results also included the benefit of a $15 million reduction in the mortgage representation and warranty reserve and a $4 million seasonal pension settlement charge.
Second quarter 2013 noninterest income included a $242 million gain on the sale of Vantiv shares, a $76 million positive valuation adjustment on the Vantiv warrant, and a pre-tax benefit of $10 million resulting from a settlement related to a previously surrendered bank-owned life insurance (BOLI) policy. Second quarter noninterest expense included $51 million in charges to increase litigation reserves and $1 million in severance expense. Results also included $9 million of charges to increase the mortgage representation and warranty reserve.
Third quarter 2012 noninterest income included a $16 million negative valuation adjustment on the Vantiv warrant and $13 million in gains recognized on the sale of certain Fifth Third funds. Third quarter 2012 noninterest expense included $26 million of debt extinguishment costs associated with the redemption of Fifth Third Capital Trust V and Fifth Third Capital Trust VI trust preferred securities (TruPS), $5 million in charges to increase litigation reserves, $2 million of expenses associated with the sale of certain Fifth Third funds, and $2 million of severance expense. Results also included $24 million of charges to increase the mortgage representation and warranty reserve.
|For the Three Months Ended||% Change|
|Earnings ($ in millions)|
|Net income attributable to Bancorp||$||421||$||591||$||422||$||399||$||363||(29||%)||16||%|
|Net income available to common shareholders||$||421||$||582||$||413||$||390||$||354||(28||%)||19||%|
|Common Share Data|
|Earnings per share, basic||0.47||0.67||0.47||0.44||0.39||(30||%)||21||%|
|Earnings per share, diluted||0.47||0.65||0.46||0.43||0.38||(28||%)||24||%|
|Cash dividends per common share||0.12||0.12||0.11||0.10||0.10||-||20||%|
|Return on average assets||1.35||%||1.94||%||1.41||%||1.33||%||1.23||%||(30||%)||10||%|
|Return on average common equity||12.1||17.3||12.5||11.5||10.4||(30||%)||15||%|
|Return on average tangible common equity||14.7||21.1||15.4||14.1||12.8||(31||%)||14||%|
|Tier I risk-based capital||11.15||11.07||10.83||10.65||10.85||1||%||3||%|
|Tier I common equity||9.89||9.43||9.70||9.51||9.67||5||%||2||%|
|Net interest margin (a)||3.31||3.33||3.42||3.49||3.56||(1||%)||(7||%)|
|Common shares outstanding (in thousands)||887,030||851,474||874,645||882,152||897,467||4||%||(1||%)|
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 and not the rounded dollar amounts.|