Fifth Third Profit Tops Views

By Austen Hufford

Fifth Third Bancorp said its profit and revenue increased as loans and deposits grew.

Earnings beat Wall Street estimates as the company said results were strong despite a "tepid economic environment."

The bank posted earnings of $516 million, compared with $381 million in the prior-year period. On a per-share basis, earnings rose to 65 cents from 45 cents.

Revenue at the Cincinnati-based bank increased 8.3% to $1.75 billion. Analysts had expected 40 cents a share in earnings and $1.52 billion in revenue, according to Thomson Reuters.

Expenses grew 3%, driven by increased salary and employee benefits that were partially offset by cheaper occupancy costs and equipment expenses.

Like other regional banks, Fifth Third has been under pressure from low interest rates but without a boost from trading that has helped the big banks.

Total business loans grew 1.5% as consumer loans fell 1.9% due to increased residential mortgage and commercial construction loans, partially offset by decreases in automobile and home-equity loans.

Total loans grew 0.1% as deposits grew 0.5%.

Net interest margin, an important measure of lending profitability, fell to 2.88% from 2.89% last year and was flat from the previous quarter.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

October 20, 2016 08:33 ET (12:33 GMT)

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