10-QPeriod: Q3 FY2013

FIFTH THIRD BANCORP Quarterly Report for Q3 Ended Sep 30, 2013

Filed November 6, 2013For Securities:FITBFITBOFITBPFITB-PIFITB-PMFITB-PAFITBIFITB-PK

Summary

Fifth Third Bancorp (FITB) reported solid performance for the third quarter of 2013, demonstrating growth in net income and key financial metrics compared to the prior year. The company's net income available to common shareholders increased by 19% year-over-year, reaching $421 million, or $0.47 per diluted share. This growth was driven by an increase in noninterest income, notably from gains on Vantiv, Inc. share sales, and a significant reduction in provision for loan and lease losses due to improved credit quality. Total revenue saw a 3% increase, supported by a 7% rise in noninterest income, partially offset by a 1% decrease in net interest income. Credit quality continued to improve, with net charge-offs as a percentage of average loans declining significantly year-over-year. The Bancorp's capital position remained strong, with Tier 1 risk-based capital ratio at 11.14%, exceeding regulatory requirements. The company also actively managed its capital through share repurchases and strategic debt offerings, including the issuance of senior notes and preferred stock.

Financial Statements
Beta
Interest Expense$99.00M
Net Income$421.00M
EPS (Basic)$0.47
EPS (Diluted)$0.47
Shares Outstanding (Basic)880.18M
Shares Outstanding (Diluted)888.11M

Key Highlights

  • 1Net income available to common shareholders increased 19% to $421 million in Q3 2013 compared to Q3 2012.
  • 2Diluted earnings per share grew 24% to $0.47 in Q3 2013 compared to $0.38 in Q3 2012.
  • 3Total revenue increased 3% to $1.619 billion in Q3 2013 compared to Q3 2012.
  • 4Noninterest income rose 7% to $721 million, primarily driven by gains on Vantiv, Inc. share sales.
  • 5Provision for loan and lease losses decreased 22% to $51 million.
  • 6Net losses charged off as a percent of average loans and leases decreased 34% to 0.49%.
  • 7Tier 1 risk-based capital ratio remained strong at 11.14% as of September 30, 2013.

Frequently Asked Questions

Fifth Third Bancorp's net income available to common shareholders for the third quarter of 2013 was $421 million, or $0.47 per diluted share.

Total revenue increased by 3% to $1.619 billion in the third quarter of 2013 compared to $1.578 billion in the same period of 2012. This was primarily driven by a 7% increase in noninterest income.

The Bancorp's capital position remains strong, exceeding regulatory 'well-capitalized' guidelines. As of September 30, 2013, the Tier 1 risk-based capital ratio was 11.14%, the Tier 1 leverage ratio was 10.58%, and the total risk-based capital ratio was 14.35%.

Credit quality improved due to decreases in nonperforming loans and leases, improved delinquency metrics across commercial and consumer loans, and better underlying loss trends. This resulted in a lower provision for loan and lease losses and reduced net charge-offs.