Fifth Third's Profit, Revenue Climb
July 28 2016 - 7:44AM
Dow Jones News
By Joshua Jamerson
Fifth Third Bancorp said its profit increased 5.7% in the second
quarter as its revenue climbed, while a key metric of lending
profitability edged down.
Earnings beat Wall Street estimates.
The bank posted earnings of $333 million, compared with $315
million in the prior-year period. On a per-share basis, earnings
rose to 40 cents from 36 cents.
Revenue at the Cincinnati-based bank increased 4.1% to $1.51
billion. Analysts had expected 38 cents a share in earnings and
$1.52 billion in revenue, according to Thomson Reuters.
Like other regional banks, Fifth Third has remained under
pressure from low interest rates, facing the challenge of pleasing
investors without the help of rate increases. Fifth Third Chief
Executive Greg D. Carmichael said in prepared remarks Thursday that
the bank's disciplined loan pricing helped its core business amid
an "extended low-growth, low-rate environment."
Net interest margin, an important measure of lending
profitability, fell to 2.88% from 2.91% in the first quarter and
2.9% in the year-ago quarter.
The company also said it extended its processing agreement with
payment-processing firm Vantiv through 2024.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
July 28, 2016 07:29 ET (11:29 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Fifth Third Bancorp (NASDAQ:FITB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Fifth Third Bancorp (NASDAQ:FITB)
Historical Stock Chart
From Apr 2023 to Apr 2024