Reported diluted earnings per share of $0.57
Reported results included a negative $0.14 impact from certain
items on page 2 of the 2Q19 earnings release including
merger-related expenses Quarterly comparisons are impacted by
significant Worldpay gains from the prior quarter and year-ago
quarter
Fifth Third Bancorp (FITB):
Key Highlights
- Successful integration of MB Financial
- Remain on-track to achieve MB expense savings by 1Q20 ($255
million pre-tax); expect to achieve ~80% of run-rate savings by
year-end
- Noninterest expense, noninterest income, and net interest
income performance better than prior guidance
- NIM(a) up 16 bps compared to 2Q18 (up 11 bps excl. purchase
accounting accretion) and up 9 bps compared to 1Q19 (up 4 bps excl.
purchase accounting accretion)
- Period end loan to core deposit ratio decreased 2% while
effectively managing interest bearing core deposit costs (up 4 bps
vs. 1Q19)
- ROTCE(a) of 12.3% (adjusted 15.1%, or 15.8% excl. accumulated
other comprehensive income)
- Named “Best Regional Bank” for second consecutive year by
Kiplinger
Key Financial Data
$ millions for all balance sheet and
income statement items
2Q19
1Q19
2Q18
Income Statement Data
Net income available to common
shareholders
$427
$760
$579
Net interest income (U.S. GAAP)
1,245
1,082
1,020
Net interest income (FTE)(a)
1,250
1,086
1,024
Noninterest income
660
1,101
743
Noninterest expense
1,243
1,097
1,001
Per Share Data
Earnings per share, basic
$0.57
$1.14
$0.84
Earnings per share, diluted
0.57
1.12
0.82
Book value per share
26.17
24.77
21.75
Tangible book value per share(a)
20.03
18.64
18.08
Balance Sheet & Credit
Quality
Average portfolio loans and leases
$110,095
$97,773
$92,557
Average deposits
124,345
109,591
103,945
Net charge-off ratio(b)
0.29
%
0.32
%
0.41
%
Nonperforming asset ratio(c)
0.51
0.45
0.52
Financial Ratios
Return on average assets
1.08
%
2.11
%
1.71
%
Return on average common equity
9.1
19.6
15.9
Return on average tangible common
equity(a)
12.3
23.9
19.2
CET1 capital(d)(e)
9.58
9.60
10.91
Net interest margin(a)
3.37
3.28
3.21
Efficiency(a)
65.1
50.2
56.7
Other than the Quarterly Financial Review
tables beginning on page 14 of the 2Q19 earnings release,
commentary is on a fully taxable-equivalent (FTE) basis unless
otherwise noted. Consistent with SEC guidance in Industry Guide 3
that contemplates the calculation of tax-exempt income on a
taxable-equivalent basis, net interest income, net interest margin,
net interest rate spread, total revenue and the efficiency ratio
are provided on an FTE basis.
CEO Commentary
“Our second quarter performance reflected continued positive
momentum throughout our businesses as well as the impact of
integrating MB Financial. Excluding merger-related expenses, second
quarter financial results exceeded our prior expectations,
reflecting diligent expense management throughout the Company and
strong net interest income growth. The net charge-off ratio also
improved both sequentially and year-over-year, reflecting the
generally stable macroeconomic environment during the quarter.
During the quarter, we completed the conversion of substantially
all systems associated with our acquisition of MB Financial. We
remain on track to achieve the previously stated financial
synergies from the transaction, which will meaningfully improve our
key profitability metrics.
With a clearly defined set of strategic
priorities, we remain confident in our ability to generate revenue
growth, achieve positive operating leverage, and create significant
value for our shareholders.”
-Greg D. Carmichael, Chairman, President and
CEO
Income Statement Highlights
($ in millions, except per share
data)
For the Three Months Ended
% Change
June
March
June
2019
2019
2018
Seq
Yr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,250
$1,086
$1,024
15%
22%
Provision for credit losses
85
90
14
(6%)
507%
Noninterest income
660
1,101
743
(40%)
(11%)
Noninterest expense
1,243
1,097
1,001
13%
24%
Income before income taxes(a)
$582
$1,000
$752
(42%)
(23%)
Taxable equivalent adjustment
5
4
4
25%
25%
Applicable income tax expense
124
221
146
(44%)
(15%)
Net income
$453
$775
$602
(42%)
(25%)
Less: Net income attributable to
noncontrolling interests
-
-
-
NM
NM
Net income attributable to Bancorp
$453
$775
$602
(42%)
(25%)
Dividends on preferred stock
26
15
23
73%
13%
Net income available to common
shareholders
$427
$760
$579
(44%)
(26%)
Earnings per share, diluted
$0.57
$1.12
$0.82
(49%)
(30%)
Fifth Third Bancorp (Nasdaq: FITB) today reported second quarter
2019 net income of $453 million compared to net income of $602
million in the year-ago quarter. Net income available to common
shareholders was $427 million, or $0.57 per diluted share, compared
to $579 million, or $0.82 per diluted share in the year-ago
quarter. Prior quarter net income was $775 million and net income
available to common shareholders was $760 million, or $1.12 per
diluted share.
Diluted earnings per share impact of
certain items
(after-tax impacts(f); $ in millions,
except per share data)
Merger-related expenses
($84)
Valuation of Visa total return swap
($17)
After-tax impact(f) of certain items
($101)
Average diluted common shares outstanding
(thousands)
747,750
Diluted earnings per share impact
($0.14)
Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended
% Change
June
March
June
2019
2019
2018
Seq
Yr/Yr
Interest Income
Interest income
$1,641
$1,437
$1,273
14%
29%
Interest expense
391
351
249
11%
57%
Net interest income (NII)
$1,250
$1,086
$1,024
15%
22%
Adjusted NII(a)
$1,234
$1,085
$1,024
14%
21%
Average Yield/Rate Analysis
bps Change
Yield on interest-earning assets
4.42%
4.33%
3.98%
9
44
Rate paid on interest-bearing
liabilities
1.47%
1.46%
1.12%
1
35
Ratios
Net interest rate spread
2.95%
2.87%
2.86%
8
9
Net interest margin (NIM)
3.37%
3.28%
3.21%
9
16
Adjusted NIM(a)
3.32%
3.28%
3.21%
4
11
Compared to the year-ago quarter, NII increased $226 million, or
22%. Purchase accounting accretion associated with the non-purchase
credit impaired loan portfolio from the MB Financial acquisition
was $16 million in the second quarter of 2019. Excluding the
purchase accounting accretion, adjusted NII increased $210 million,
or 21%, primarily driven by the impact of the earning assets from
the MB Financial acquisition and higher short-term market rates.
Compared to the year-ago quarter, NIM increased 16 bps, or 11 bps,
excluding the purchase accounting accretion. Performance was driven
by higher short-term market rates, partially offset by higher
funding costs and a continued migration from demand deposits into
interest-bearing deposits.
Compared to the prior quarter, NII increased $164 million, or
15%. Excluding the purchase accounting accretion, adjusted NII
increased $149 million, or 14%, primarily reflecting the
full-quarter impact of the acquired earning assets from the MB
Financial acquisition and a higher day count, partially offset by
lower short-term market rates and a slight increase in funding
costs. Compared to the prior quarter, NIM increased 9 bps.
Excluding the purchase accounting accretion, adjusted NIM increased
4 bps, primarily reflecting the full-quarter impact of the acquired
earning assets from the MB Financial acquisition, partially offset
by lower short-term market rates and a higher day count.
Noninterest Income
($ in millions)
For the Three Months Ended
% Change
June
March
June
2019
2019
2018
Seq
Yr/Yr
Noninterest Income
Service charges on deposits
$143
$131
$137
9%
4%
Corporate banking revenue
137
112
120
22%
14%
Mortgage banking net revenue
63
56
53
13%
19%
Wealth and asset management revenue
122
112
108
9%
13%
Card and processing revenue
92
79
84
16%
10%
Other noninterest income
93
592
250
(84%)
(63%)
Securities gains (losses), net
8
16
(5)
(50%)
NM
Securities gains (losses), net -
non-qualifying
hedges on mortgage servicing rights
2
3
(4)
(33%)
NM
Total noninterest income
$660
$1,101
$743
(40%)
(11%)
Reported noninterest income decreased $83 million, or 11%, from
the year-ago quarter, and decreased $441 million, or 40%, from the
prior quarter. The reported results reflect the full-quarter impact
of the MB Financial acquisition on March 22, 2019, and the impact
of certain items in the table below including significant Worldpay
gains in both the prior quarter and year-ago quarter.
Noninterest Income excluding certain
items
($ in millions)
For the Three Months Ended
June
March
June
2019
2019
2018
Noninterest Income excluding certain
items
Noninterest income (U.S. GAAP)
$660
$1,101
$743
Valuation of Visa total return swap
22
31
10
Merger-related branch network impairment
charge
-
13
-
Gain on sale of Worldpay shares
-
(562)
(205)
Branch network impairment charge
-
-
30
Gain from GreenSky IPO
-
-
(16)
GreenSky equity securities (gains) /
losses
-
(9)
-
Securities (gains) / losses, net
(excluding GreenSky)
(8)
(7)
5
Noninterest income excluding certain
items(a)
$674
$567
$567
Compared to the year-ago quarter, service charges on deposits
increased $6 million, or 4%, primarily driven by higher commercial
deposit fees, partially offset by lower consumer deposit fees.
Corporate banking revenue increased $17 million, or 14%, primarily
driven by business solutions revenue resulting from the MB
Financial acquisition. Mortgage banking net revenue increased $10
million, or 19%, primarily driven by higher mortgage originations
of $2.9 billion, an increase of 36%. Wealth and asset management
revenue increased $14 million, or 13%, primarily driven by higher
personal asset management revenue and institutional trust fees.
Card and processing revenue increased $8 million, or 10%,
reflecting increases in credit and debit transaction volumes,
partially offset by higher rewards.
Compared to the prior quarter, service charges on deposits
increased $12 million, or 9%, primarily driven by higher commercial
deposit fees, partially offset by lower consumer deposit fees.
Corporate banking revenue increased $25 million, or 22%, primarily
driven by business solutions revenue resulting from the MB
Financial acquisition. Mortgage banking net revenue increased $7
million, or 13%, primarily driven by a 76% increase in origination
volumes. Wealth and asset management revenue increased $10 million,
or 9%, primarily driven by higher personal asset management revenue
and institutional trust fees, partially offset by seasonally strong
tax-related private client service revenue in the prior quarter.
Card and processing revenue increased $13 million, or 16%,
reflecting increases in credit and debit transaction volumes,
partially offset by higher rewards.
Compared to both the year-ago quarter and prior quarter,
noninterest income excluding the items in the table above increased
$107 million, or 19%, reflecting the full-quarter impact of the MB
Financial acquisition.
Other noninterest income results on a reported basis in the
current and previous quarters were impacted by the Visa total
return swap valuation adjustments, branch network impairment
charges, Worldpay-related gains, and GreenSky IPO gain. Excluding
these items, other noninterest income of $115 million increased $46
million, or 67%, compared to the year-ago quarter, primarily driven
by other noninterest income from MB Financial. Compared to the
prior quarter, other noninterest income excluding these items
increased $41 million, or 55%, primarily driven by other
noninterest income from MB Financial.
Noninterest Expense
($ in millions)
For the Three Months Ended
% Change
June
March
June
2019
2019
2018
Seq
Yr/Yr
Noninterest Expense
Compensation and benefits
$641
$610
$549
5%
17%
Net occupancy expense
88
75
74
17%
19%
Technology and communications
136
83
67
64%
103%
Equipment expense
33
30
30
10%
10%
Card and processing expense
34
31
30
10%
13%
Intangible amortization expense
14
3
1
NM
NM
Other noninterest expense
297
265
250
12%
19%
Total noninterest expense
$1,243
$1,097
$1,001
13%
24%
Impacts of Merger-Related
Expenses
($ in millions)
For the Three Months Ended
June
March
June
2019
2019
2018
Merger-Related Expenses
Compensation and benefits
$41
$35
$-
Net occupancy expense
6
-
-
Technology and communications
49
11
-
Equipment expense
1
-
-
Card and processing expense
1
-
-
Intangible amortization expense
-
-
-
Other noninterest expense
11
30
2
Total merger-related expenses
$109
$76
$2
Noninterest Expense excluding
Merger-Related Expenses(a)
($ in millions)
For the Three Months Ended
% Change
June
March
June
2019
2019
2018
Seq
Yr/Yr
Noninterest Expense excluding
Merger-Related Expenses
Compensation and benefits
$600
$575
$549
4%
9%
Net occupancy expense
82
75
74
9%
11%
Technology and communications
87
72
67
21%
30%
Equipment expense
32
30
30
7%
7%
Card and processing expense
33
31
30
6%
10%
Intangible amortization expense
14
3
1
NM
NM
Other noninterest expense
286
235
248
22%
15%
Total noninterest expense excluding
merger-related expenses
$1,134
$1,021
$999
11%
14%
Compared to the year-ago quarter, reported noninterest expense
increased $242 million, or 24%, impacted by merger-related expenses
and the full quarter impact of ongoing expenses from the MB
Financial acquisition. Excluding the merger-related expenses noted
in the table above and intangible amortization expense, noninterest
expense increased $122 million, or 12%, driven by higher other
noninterest expense from the MB Financial acquisition (primarily
operating lease expense), higher compensation and benefits as well
as continued technology investments. The growth was partially
offset by a decrease in incentive based payments and the
elimination of the FDIC surcharge. Noninterest expense from the
year-ago quarter included the impact of compensation expense
primarily related to a staffing review as well as a contribution to
the Fifth Third Foundation.
Compared to the prior quarter, reported noninterest expense
increased $146 million, or 13%, and was impacted by merger-related
expenses and elevated other noninterest expense. Excluding the
merger-related expenses and the aforementioned intangible
amortization expense, noninterest expense increased $102 million,
or 10%, driven by higher other noninterest expense from the MB
Financial acquisition (primarily operating lease expense), and an
increase in technology and communications expense.
Average Interest-Earning Assets
($ in millions)
For the Three Months Ended
% Change
June
March
June
2019
2019
2018
Seq
Yr/Yr
Average Portfolio Loans and
Leases
Commercial loans and leases:
Commercial and industrial loans
$52,078
$46,011
$42,292
13%
23%
Commercial mortgage loans
10,632
7,414
6,514
43%
63%
Commercial construction loans
5,248
4,838
4,743
8%
11%
Commercial leases
3,809
3,555
3,847
7%
(1%)
Total commercial loans and leases
$71,767
$61,818
$57,396
16%
25%
Consumer loans:
Residential mortgage loans
$16,804
$15,624
$15,581
8%
8%
Home equity
6,376
6,355
6,672
-
(4%)
Indirect secured consumer loans
10,190
9,176
8,968
11%
14%
Credit card
2,408
2,396
2,221
1%
8%
Other consumer loans
2,550
2,404
1,719
6%
48%
Total consumer loans
$38,328
$35,955
$35,161
7%
9%
Portfolio loans and leases
$110,095
$97,773
$92,557
13%
19%
Loans held for sale
898
589
675
52%
33%
Securities and other short-term
investments
37,797
36,101
34,935
5%
8%
Total average interest-earning assets
$148,790
$134,463
$128,167
11%
16%
Compared to the year-ago quarter, average total portfolio loans
and leases increased 19%, reflecting the impact of the MB Financial
acquisition near the end of the first quarter of 2019. Average
commercial portfolio loans and leases increased 25%, reflecting the
impact of MB Financial as well as higher commercial and industrial
(C&I) and commercial mortgage loans, partially offset by a
decline in commercial leases. Average consumer portfolio loans
increased 9%, reflecting the impact of MB Financial as well as
growth in other consumer loans and indirect secured consumer
loans.
Compared to the prior quarter, average total portfolio loans and
leases increased 13%, reflecting the full-quarter impact of MB
Financial. Average commercial portfolio loans and leases increased
16%, reflecting the full-quarter impact of MB Financial, partially
offset by a decline in commercial leases. Average consumer
portfolio loans increased 7%, reflecting the full-quarter impact of
MB Financial as well as growth in indirect secured consumer loans
and other consumer loans.
Period end commercial line utilization was 37%, compared to 35%
in the year-ago quarter and 38% in the prior quarter.
Average securities and other short-term investments were $37.8
billion compared to $34.9 billion in the year-ago quarter and $36.1
billion in the prior quarter. Growth in the portfolio reflected
both the impact from MB Financial and an increase in other
short-term investments driven by strong deposit growth in excess of
loan growth. Average available-for-sale debt and other securities
of $34.7 billion increased 6% compared to the year-ago quarter
increased 3% compared to the prior quarter.
Average Deposits
($ in millions)
For the Three Months Ended
% Change
June
March
June
2019
2019
2018
Seq
Yr/Yr
Average Deposits
Demand
$35,818
$30,557
$32,834
17%
9%
Interest checking
36,514
33,697
28,715
8%
27%
Savings
14,418
13,052
13,618
10%
6%
Money market
25,934
23,133
22,036
12%
18%
Foreign office(g)
163
208
371
(22%)
(56%)
Total transaction deposits
$112,847
$100,647
$97,574
12%
16%
Other time
5,678
4,860
4,018
17%
41%
Total core deposits
$118,525
$105,507
$101,592
12%
17%
Certificates - $100,000 and over
5,780
3,358
2,155
72%
168%
Other deposits
40
726
198
(94%)
(80%)
Total average deposits
$124,345
$109,591
$103,945
13%
20%
Compared to the year-ago quarter, average core deposits
increased 17%, primarily driven by higher interest checking
deposits, money market deposits, and demand deposits, reflecting
the impact of MB Financial. The increases were partially offset by
lower deposits in foreign offices. Compared to the prior quarter,
average core deposits increased 12%, primarily driven by higher
demand deposits, interest checking deposits, and money market
deposits. Average demand deposits represented 30% of total core
deposits in the second quarter of 2019, up from 29% in the prior
quarter.
Average Wholesale Funding
($ in millions)
For the Three Months Ended
% Change
June
March
June
2019
2019
2018
Seq
Yr/Yr
Average Wholesale Funding
Certificates - $100,000 and over
$5,780
$3,358
$2,155
72%
168%
Other deposits
40
726
198
(94%)
(80%)
Federal funds purchased
1,151
2,019
1,080
(43%)
7%
Other short-term borrowings
1,119
646
2,452
73%
(54%)
Long-term debt
15,543
15,438
14,579
1%
7%
Total average wholesale funding
$23,633
$22,187
$20,464
7%
15%
Compared to the year-ago quarter, average wholesale funding
increased 15% driven by growth in jumbo CD balances and long-term
debt, partially offset by a decrease in other short-term
borrowings. Compared to the prior quarter, average wholesale
funding increased 7% reflecting an increase in jumbo CD balances
and other short-term borrowings, partially offset by a decrease in
federal funds borrowings and other deposits.
Credit Quality Summary
($ in millions)
For the Three Months Ended
June
March
December
September
June
2019
2019
2018
2018
2018
Total nonaccrual portfolio loans and
leases (NPLs)
$521
$450
$348
$403
$437
Repossessed property
8
11
10
8
7
OREO
31
37
37
37
36
Total nonperforming portfolio assets
(NPAs)
$560
$498
$395
$448
$480
NPL ratio(h)
0.48%
0.41%
0.37%
0.43%
0.47%
NPA ratio(c)
0.51%
0.45%
0.41%
0.48%
0.52%
Total loans and leases 30-89 days past due
(accrual)
383
322
297
270
217
Total loans and leases 90 days past due
(accrual)
128
132
93
87
89
Allowance for loan and lease losses,
beginning
$1,115
$1,103
$1,091
$1,077
$1,138
Total net losses charged-off
(78)
(77)
(83)
(72)
(94)
Provision for loan and lease losses
78
89
95
86
33
Allowance for loan and lease losses,
ending
$1,115
$1,115
$1,103
$1,091
$1,077
Reserve for unfunded commitments,
beginning
$133
$131
$129
$131
$151
Reserve for acquired commitments
7
1
-
-
-
Provision for (benefit from) the reserve
for unfunded commitments
7
1
2
(2)
(20)
Reserve for unfunded commitments,
ending
$147
$133
$131
$129
$131
Total allowance for credit losses
$1,262
$1,248
$1,234
$1,220
$1,208
Allowance for loan and lease losses
ratios
As a percent of portfolio loans and
leases
1.02%
1.02%
1.16%
1.17%
1.17%
As a percent of nonperforming portfolio
loans and leases
214%
248%
317%
270%
247%
As a percent of nonperforming portfolio
assets
199%
224%
279%
243%
224%
Total losses charged-off
$(119)
$(108)
$(116)
$(112)
$(118)
Total recoveries of losses previously
charged-off
41
31
33
40
24
Total net losses charged-off
$(78)
$(77)
$(83)
$(72)
$(94)
Net charge-off ratio (NCO ratio)(b)
0.29%
0.32%
0.35%
0.30%
0.41%
Commercial NCO ratio
0.13%
0.11%
0.19%
0.19%
0.34%
Consumer NCO ratio
0.59%
0.68%
0.61%
0.50%
0.52%
Compared to the year-ago quarter, NPLs increased $84 million, or
19%, with the resulting NPL ratio of 0.48% increasing 1 bp. NPAs
increased $80 million, or 17%, with the resulting NPA ratio of
0.51% decreasing 1 bp. Compared to the prior quarter, NPLs
increased $71 million, or 16%, with the resulting NPL ratio
increasing 7 bps. NPAs increased $62 million, or 12%, with the
resulting NPA ratio increasing 6 bps.
The provision for loan and lease losses totaled $78 million in
the current quarter compared to $33 million in the year-ago quarter
and $89 million in the prior quarter. The resulting allowance for
loan and lease losses ratio represented 1.02% of total portfolio
loans and leases outstanding in the current quarter, compared with
1.17% in the year-ago quarter and 1.02% in the prior quarter. The
allowance for loan and lease losses represented 214% of
nonperforming portfolio loans and leases and 199% of nonperforming
portfolio assets in the current quarter.
Net charge-offs totaled $78 million in the current quarter
compared to $94 million in the year-ago quarter and $77 million in
the prior quarter. The resulting NCO ratio of 0.29% in the current
quarter decreased 12 bps compared to the year-ago quarter and
decreased 3 bps compared to the prior quarter.
Capital and Liquidity Position
For the Three Months Ended
June
March
December
September
June
2019
2019
2018
2018
2018
Capital Position
Average total Bancorp shareholders' equity
as a percent of average assets
12.02%
11.43%
10.95%
11.29%
11.28%
Tangible equity(a)
9.09%
9.03%
9.63%
9.97%
10.19%
Tangible common equity (excluding
unrealized gains/losses)(a)
8.27%
8.21%
8.71%
9.02%
9.23%
Tangible common equity (including
unrealized gains/losses)(a)
8.91%
8.44%
8.64%
8.53%
8.88%
Regulatory Capital and Liquidity
Ratios(e)
CET1 capital(d)
9.58%
9.60%
10.24%
10.67%
10.91%
Tier I risk-based capital(d)
10.64%
10.67%
11.32%
11.78%
12.02%
Total risk-based capital(d)
13.55%
13.57%
14.48%
14.94%
15.21%
Tier I leverage
9.24%
10.32%
9.72%
10.10%
10.24%
Modified liquidity coverage ratio
(LCR)
119%
113%
128%
119%
116%
Capital ratios remained strong during the quarter. The CET1
capital ratio was 9.58%, the tangible common equity to tangible
assets ratio was 8.27% excluding unrealized gains/losses, and 8.91%
including unrealized gains/losses. The Tier I risk-based capital
ratio was 10.64%, the Total risk-based capital ratio was 13.55%,
and the Tier I leverage ratio was 9.24%.
Fifth Third entered into or completed multiple share repurchases
during the quarter. Below is a summary of those share
repurchases.
- On April 29, 2019, Fifth Third initially settled a share
repurchase agreement whereby Fifth Third would purchase $200
million of its outstanding stock in two $100 million tranches. The
initial settlement reduced second quarter common shares outstanding
by 6.0 million shares. On May 23, 2019, and May 24, 2019, Fifth
Third settled both tranches from the forward contract. An
additional 1.2 million shares were repurchased in connection with
the completion of this agreement.
- On June 28, 2019, Fifth Third settled the forward contract
related to the March 2019 $913 million share repurchase agreement.
An additional 2.0 million shares were repurchased in connection
with the completion of this agreement.
Based on the transactions noted above, common shares outstanding
decreased by approximately 9.2 million shares in the second quarter
of 2019 from the first quarter.
On June 27, 2019, Fifth Third announced its capital distribution
projections for July 1, 2019 through June 30, 2020 reflecting the
ability to distribute approximately $2 billion in capital, which
include common share repurchases as well as increased common stock
dividends. Capital distribution projections include repurchases
related to common share issuances under employee benefit plans
(approximately $75 million) and excludes any potential additional
repurchases of common shares related to after-tax gains from the
previous sale of Worldpay, Inc. common stock.
Tax Rate
The effective tax rate was 21.5% compared with 19.6% in the
year-ago quarter and 22.2% in the prior quarter.
Other
In April 2019, Fifth Third exchanged its remaining Class B units
of GreenSky Holdings, LLC for Class A common stock of GreenSky,
Inc., and subsequently sold all of the stock. Fifth Third
recognized a minimal pre-tax gain as a result of this
transaction.
On May 30, 2019, Fifth Third filed an application with the
Office of the Comptroller of the Currency (“OCC”) to convert from
an Ohio state-chartered bank to a national bank.
Conference Call
Fifth Third will host a conference call to discuss these
financial results at 9:00 a.m. (Eastern Time) today. This
conference call will be webcast live and may be accessed through
the Fifth Third Investor Relations website at www.53.com (click on
“About Us” then “Investor Relations”).
Those unable to listen to the live webcast may access a webcast
replay through the Fifth Third Investor Relations website at the
same web address. Additionally, a telephone replay of the
conference call will be available after the conference call until
approximately August 6, 2019 by dialing 800-585-8367 for domestic
access or 404-537-3406 for international access (passcode
2784479#).
Corporate Profile
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of June 30, 2019, the Company
had $169 billion in assets and operates 1,207 full-service Banking
Centers, and 2,551 Fifth Third branded ATMs in Ohio, Kentucky,
Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia,
Georgia and North Carolina. In total, Fifth Third provides its
customers with access to approximately 53,000 fee-free ATMs across
the United States. Fifth Third operates four main businesses:
Commercial Banking, Branch Banking, Consumer Lending, and Wealth
& Asset Management. Fifth Third is among the largest money
managers in the Midwest and, as of June 30, 2019, had $399 billion
in assets under care, of which it managed $46 billion for
individuals, corporations and not-for-profit organizations through
its Trust and Registered Investment Advisory businesses. Investor
information and press releases can be viewed at www.53.com. Fifth
Third’s common stock is traded on the NASDAQ® Global Select Market
under the symbol “FITB.”
Earnings Release End Notes
- Non-GAAP measure; see discussion of non-GAAP and Reg. G
reconciliation beginning on page 26 of the 2Q19 earnings
release.
- Net losses charged-off as a percent of average portfolio loans
and leases.
- Nonperforming portfolio assets as a percent of portfolio loans
and leases and OREO.
- Under the U.S. banking agencies' Basel III Final Rule, assets
and credit equivalent amounts of off-balance sheet exposures are
calculated according to the standardized approach for risk-weighted
assets. The resulting values are added together resulting in the
Bancorp’s total risk-weighted assets.
- Current period regulatory capital and liquidity ratios are
estimated.
- Assumes a 23% tax rate, except for merger-related expenses
which were impacted by certain non-deductible items.
- Includes commercial customer Eurodollar sweep balances for
which the Bank pays rates comparable to other commercial deposit
accounts.
- Nonperforming portfolio loans and leases as a percent of
portfolio loans and leases and OREO.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190723005332/en/
Investors: Chris Doll (513) 534–2345 Media: Gary Rhodes (513)
534–4225
Fifth Third Bancorp (NASDAQ:FITB)
Historical Stock Chart
From Aug 2024 to Sep 2024
Fifth Third Bancorp (NASDAQ:FITB)
Historical Stock Chart
From Sep 2023 to Sep 2024