NEW YORK (TheStreet) -- Fifth Third Bancorp (FITB) dipped Thursday after the company announced the Board of Governors of the Federal Reserve System did not object to Fifth Third's Comprehensive Capital Analysis and Review (CCAR) plan for the period of April 1, 2014 through March 31, 2015.
The proposed potential actions under the plan include an increase in quarterly common stock dividend to 13 cents a share during the aforementioned period, a repurchase of common stock up to $669 million and the ability to repurchase shares in the amount of any after-tax gains from the sale of Vantiv if applicable.
"Our capital plan reflects our strong capital base, profitability and earnings generation, which enable us to return excess capital to shareholders while retaining more than sufficient capital to support ongoing business opportunities and balance sheet growth," said CEO Kevin Kabat in a statement. "Our proposed capital distributions would represent an estimated total payout ratio in the mid to upper end of our longer-term target range of 60 to 80 percent.
"We designed our 2014 CCAR plan to maintain regulatory common equity capital ratios generally at current levels, similar to our goals in previous submissions. We believe our plan for capital management and retention is balanced and prudent given our expectations, our capital position, current regulatory capital rules and expectations, and the current economic outlook."
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: