Summary
Fifth Third Bancorp (FITB) filed an 8-K on March 19, 2013, primarily detailing its capital return plans and updated share repurchase authorization. The company announced a cash dividend of $0.11 per common share for the first quarter of 2013, payable in April. Importantly, their 2013 Comprehensive Capital Analysis & Review (CCAR) plan includes the potential to increase this dividend to $0.12 per share in the second quarter of 2013 and maintain it through the first quarter of 2014, subject to Board approval in June. The most significant announcement is the Board's approval of a new share repurchase program, authorizing the repurchase of up to 100 million shares of outstanding common stock. This new authorization supersedes a previous one, under which approximately 54 million shares were still available. The company plans to execute these repurchases through various methods, including open market purchases and derivative instruments.
Key Highlights
- 1Declaration of a $0.11 cash dividend per common share for Q1 2013, payable April 18, 2013.
- 2Potential increase of the quarterly dividend to $0.12 per share in Q2 2013, subject to Board approval.
- 3New share repurchase authorization for up to 100 million shares of common stock approved.
- 4The new repurchase authorization replaces a prior one, with approximately 54 million shares remaining under the old authorization.
- 5Repurchases can be conducted via open market transactions or derivative instruments.
- 6The announcements are part of Fifth Third's 2013 Comprehensive Capital Analysis & Review (CCAR) plan.
- 7The press release attached as Exhibit 99.1 contains the full details of these announcements.