Fifth Third Bancorp (Nasdaq: FITB) today reported record full year 2013 net income of $1.8 billion, up 16 percent from net income of $1.6 billion in 2012. After preferred dividends, 2013 net income available to common shareholders was a record $1.8 billion, or $2.02 per diluted share, up 17 percent compared with 2012 net income available to common shareholders of $1.5 billion, or $1.66 per diluted share.
Fourth quarter 2013 net income was $402 million, a decrease of 4 percent from net income of $421 million in the third quarter of 2013 and an increase of 1 percent from net income of $399 million in the fourth quarter of 2012. After preferred dividends, net income available to common shareholders was $383 million, or $0.43 per diluted share, in the fourth quarter 2013, compared with $421 million, or $0.47 per diluted share, in the third quarter 2013, and $390 million, or $0.43 per diluted share, in the fourth quarter of 2012.
Fourth quarter 2013 included:
- $91 million positive valuation adjustment on the Vantiv warrant
- ($18 million) charge related to the valuation of the total return swap entered into as part of the 2009 sale of Visa, Inc. Class B shares
- $9 million annual payment received from Vantiv pursuant to tax receivable agreement
- ($69 million) in net charges to increase litigation reserves
- ($8 million) of debt extinguishment costs associated with the redemption of Fifth Third Capital Trust IV trust preferred securities (TruPS)
- ($8 million) contribution to Fifth Third Foundation
- ($8 million) in severance expense
Results also included a benefit to the mortgage repurchase provision of $28 million primarily related to Fifth Third’s settlement with Freddie Mac and corresponding expectations for future repurchase requests and file claims. (As previously announced, Fifth Third entered into a settlement for $25 million with Freddie Mac to resolve certain repurchase claims associated with mortgage loans originated and sold prior to January 1, 2009, which was charged against the representation and warranty reserve.)