Fifth Third Expects Net Interest Margin to Fall in 3Q
July 23 2019 - 10:22AM
Dow Jones News
By Allison Prang
Fifth Third Bancorp (FITB) is guiding for net interest margin
contraction in the third quarter.
The Cincinnati-based bank holding company said it is expecting
its adjusted net interest margin on a fully-taxable equivalent
basis to fall by about three basis points from the second
quarter.
The company's net interest margin should fall by about four
basis points in the third quarter, Chief Financial Officer Tayfun
Tuzun told analysts.
The company is expecting adjusted net interest income on a
fully-taxable equivalent basis to increase by about 1% from the
second quarter and for adjusted noninterest income to increase by
about 2%.
Fifth Third expects adjusted noninterest expense to be flat.
The company also expects average commercial loan and leases to
be stable and for average consumer loan and leases to increase by
about 2%. Its credit loss provision should primarily reflect loan
growth, the company said.
The company said it expects its effective tax rate will be
between 22% and 23% for the rest of the year.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
July 23, 2019 10:07 ET (14:07 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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