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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