Tuzun told investors and analysts at the Deustche Bank Global Financial Services Conference in New York that ATMs that can take deposits, create check images, give out cash in different bills and provide various teller services allowed Fifth Third to trim staff and cut costs.
The 1,000 cut jobs represent 19% of Fifth Third's retail banking service employees. The company moved approximately 200 of those jobs to branch sales positions, but Tuzun said the net decrease of 800 jobs is a 10% reduction in banking center staff since the end of 2012.
The stock was up 1.77% to $21.32 at 10:43 a.m.
Separately, TheStreet Ratings team rates FIFTH THIRD BANCORP as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIFTH THIRD BANCORP (FITB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, FIFTH THIRD BANCORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for FIFTH THIRD BANCORP is currently very high, coming in at 89.15%. Regardless of FITB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.42% trails the industry average.
- FITB, with its decline in revenue, slightly underperformed the industry average of 2.4%. Since the same quarter one year prior, revenues fell by 10.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- FIFTH THIRD BANCORP's earnings per share declined by 21.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FIFTH THIRD BANCORP increased its bottom line by earning $2.01 versus $1.66 in the prior year. For the next year, the market is expecting a contraction of 15.4% in earnings ($1.70 versus $2.01).
- You can view the full analysis from the report here: FITB Ratings Report