Fifth Third Releases Stress Capital Buffer Requirement
June 30 2020 - 8:36AM
Business Wire
Results reaffirm Fifth Third’s capital
strength
Fifth Third Bancorp (Nasdaq: FITB) today released its indicative
stress capital buffer requirement resulting from the Federal
Reserve Board’s (“FRB”) 2020 Comprehensive Capital Analysis and
Review results incorporating the FRB’s supervisory severely adverse
scenario published in February 2020. Fifth Third’s indicative
stress capital buffer under this scenario is 2.5%, effective
October 1, 2020. The stress capital buffer of 2.5% is the floor
under the regulatory capital rules. Without the floor, Fifth Third
estimates its buffer would have been approximately 2.1%.
Consistent with its planned capital actions originally submitted
to the Federal Reserve, Fifth Third intends on maintaining its
current common dividend per share of $0.27 and extending its
previously-announced suspension of share repurchases through at
least the remainder of 2020. All future capital actions are subject
to evaluation of Fifth Third’s performance, the state of the
economic environment, market conditions, regulatory factors, other
risks and uncertainties, and approval by the Board of
Directors.
“The stress test results reaffirm our belief that our
already-strong capital ratios would remain above buffered minimum
levels for the duration of a nine-quarter severely adverse stress
test, while maintaining our dividend and continuing to provide
support to the broader economy,” said Greg D. Carmichael, chairman,
president and CEO of Fifth Third Bancorp. “The outcomes of the
stress test demonstrate Fifth Third’s balance sheet resilience,
pre-provision net revenue capabilities, and the soundness of our
capital levels. As always, our board of directors monitors the
situation very closely and will continue to make a quarterly
decision on the dividend based on the economic outlook and the
strength of our balance sheet.”
About Fifth Third
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 March 31, 2020, the Company had $185 billion in
assets and operates 1,123 full-service Banking Centers, and 2,464
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 March 31, 2020, had $374 billion in assets under
care, of which it managed $42 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.”
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version on businesswire.com: https://www.businesswire.com/news/home/20200630005575/en/
Chris Doll (Investor Relations) Christopher.Doll@53.com |
513-534-2345 Ed Loyd (Media Relations) Edgar.Loyd@53.com |
513-534-6397
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