Fifth Third To Temporarily Suspend Share Repurchases
March 16 2020 - 7:00PM
Business Wire
Fifth Third Bancorp (Nasdaq: FITB) today announced it is joining
the largest U.S. banks in temporarily suspending share repurchases
through the second quarter of 2020.
The COVID-19 pandemic is an unprecedented challenge for
customers, employees, and the global economy. The decision on
repurchases is consistent with Fifth Third’s objective to use the
Company’s significant capital and liquidity to provide maximum
support to individuals, businesses, and the broader economy through
lending and other important services.
In addition to suspending share repurchases through the second
quarter of 2020, Fifth Third did not execute any share repurchases
in the first quarter of 2020. In total, Fifth Third has
approximately $830 million in repurchase capacity under CCAR 2019
that will not be deployed until after the second quarter of
2020.
Fifth Third retains the ability to reinstate its share
repurchase program as soon as circumstances warrant.
About Fifth Third
Bancorp
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio, and the indirect parent company
of Fifth Third Bank, National Association, a federally chartered
institution. As of December 31, 2019, Fifth Third had $169 billion
in assets and operated 1,149 full-service banking centers and 2,481
ATMs with Fifth Third branding 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 December 31, 2019, had $413 billion in assets
under care, of which it managed $49 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.” Fifth Third Bank was established in 1858. Deposit
and Credit products are offered by Fifth Third Bank, National
Association. Member FDIC.
FORWARD LOOKING STATEMENTS
This release contains statements that we believe are
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Rule 175 promulgated
thereunder, and Section 21E of the Securities Exchange Act of 1934,
as amended, and Rule 3b-6 promulgated thereunder. These statements
relate to our financial condition, results of operations, plans,
objectives, future performance or business. They usually can be
identified by the use of forward-looking language such as “will
likely result,” “may,” “are expected to,” “is anticipated,”
“potential,” “estimate,” “forecast,” “projected,” “intends to,” or
may include other similar words or phrases such as “believes,”
“plans,” “trend,” “objective,” “continue,” “remain,” or similar
expressions, or future or conditional verbs such as “will,”
“would,” “should,” “could,” “might,” “can,” or similar verbs. You
should not place undue reliance on these statements, as they are
subject to risks and uncertainties, including but not limited to
the risk factors set forth in our most recent Annual Report on Form
10-K as updated by our Quarterly Reports on Form 10-Q. When
considering these forward-looking statements, you should keep in
mind these risks and uncertainties, as well as any cautionary
statements we may make. Moreover, you should treat these statements
as speaking only as of the date they are made and based only on
information then actually known to us. We undertake no obligation
to release revisions to these forward-looking statements or reflect
events or circumstances after the date of this document.
There are a number of important factors that could cause future
results to differ materially from historical performance and these
forward-looking statements. Factors that might cause such a
difference include, but are not limited to: (1) deteriorating
credit quality; (2) loan concentration by location or industry of
borrowers or collateral; (3) problems encountered by other
financial institutions; (4) inadequate sources of funding or
liquidity; (5) unfavorable actions of rating agencies; (6)
inability to maintain or grow deposits; (7) limitations on the
ability to receive dividends from subsidiaries; (8) cyber-security
risks; (9) Fifth Third’s ability to secure confidential information
and deliver products and services through the use of computer
systems and telecommunications networks; (10) failures by
third-party service providers; (11) inability to manage strategic
initiatives and/or organizational changes; (12) inability to
implement technology system enhancements; (13) failure of internal
controls and other risk management systems; (14) losses related to
fraud, theft or violence; (15) inability to attract and retain
skilled personnel; (16) adverse impacts of government regulation;
(17) governmental or regulatory changes or other actions; (18)
failures to meet applicable capital requirements; (19) regulatory
objections to Fifth Third’s capital plan; (20) regulation of Fifth
Third’s derivatives activities; (21) deposit insurance premiums;
(22) assessments for the orderly liquidation fund; (23) replacement
of LIBOR; (24) weakness in the national or local economies; (25)
global political and economic uncertainty or negative actions; (26)
changes in interest rates; (27) changes and trends in capital
markets; (28) fluctuation of Fifth Third’s stock price; (29)
volatility in mortgage banking revenue; (30) litigation,
investigations, and enforcement proceedings by governmental
authorities; (31) breaches of contractual covenants,
representations and warranties; (32) competition and changes in the
financial services industry; (33) changing retail distribution
strategies, customer preferences and behavior; (34) risks relating
to Fifth Third’s ability to realize the anticipated benefits of the
merger with MB Financial, Inc.; (35) difficulties in identifying,
acquiring or integrating suitable strategic partnerships,
investments or acquisitions; (36) potential dilution from future
acquisitions; (37) loss of income and/or difficulties encountered
in the sale and separation of businesses, investments or other
assets; (38) results of investments or acquired entities; (39)
changes in accounting standards or interpretation or declines in
the value of Fifth Third’s goodwill or other intangible assets;
(40) inaccuracies or other failures from the use of models; (41)
effects of critical accounting policies and judgments or the use of
inaccurate estimates; (42) weather-related events, other natural
disasters, or health emergencies; and (43) the impact of
reputational risk created by these or other developments on such
matters as business generation and retention, funding and
liquidity.
You should refer to our periodic and current reports filed with
the Securities and Exchange Commission, or “SEC,” for further
information on other factors, which could cause actual results to
be significantly different from those expressed or implied by these
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20200316005889/en/
Chris Doll (Investor Relations) Christopher.Doll@53.com |
513-534-2345
Ed Loyd (Media Relations) March 16, 2020 Edgar.Loyd@53.com |
513-534-NEWS
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