Fifth Third's Profit Declines as Noninterest Expenses Climb 24%
July 23 2019 - 7:25AM
Dow Jones News
By Allison Prang
Fifth Third Bancorp's (FITB) profit fell as the company's
expenses and provision for credit losses increased and noninterest
income fell.
Net income was $453 million, down 25% from the comparable
quarter a year prior. Earnings were 57 cents a share, down from 82
cents a share. Analysts polled by FactSet were expecting 63 cents a
share.
Revenue rose 8.1% to $1.91 billion. Analysts were expecting $1.9
billion. Noninterest income fell 11% while net interest income on a
fully taxable equivalent basis rose 22%.
Fifth Third's provision for credit losses was $85 million up
from $14 million. Its provision fell from $90 million in the first
quarter.
Noninterest expenses rose 24%. Technology and communication
costs more than doubled to $136 million up from $67 million a year
earlier. The company said total merger-related costs -- which
include $49 million in technology and communications expense --
were $109 million, up from $2 million a year earlier.
Fifth Third's net interest margin was 3.37%, an increase of 16
basis points year over year and up nine basis points from the first
quarter. Its adjusted net interest margin, not including a purchase
accounting accretion from MB Financial's non-purchase credit
impaired loan portfolio, was 3.32%, up 11 basis points year over
year and up four basis points from the first quarter.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
July 23, 2019 07:10 ET (11:10 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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