8-K/AEarnings & Results

FIFTH THIRD BANCORP 8-K/A Report, Financial Results (Aug 6, 2013)

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

Summary

This Form 8-K/A filing by Fifth Third Bancorp (FITB) serves as an amendment to a previous 8-K dated July 18, 2013. The primary purpose of this amendment is to update the company's previously reported second quarter 2013 financial results. Specifically, Fifth Third has adjusted its figures due to new information regarding a litigation loss contingency. The adjustment increased the related reserve by $18 million, leading to an $18 million increase in noninterest expense for the quarter. This, in turn, reduced net income and net income attributable to common shareholders by $12 million, and consequently lowered earnings per fully diluted share by $0.01. The revised figures anticipate second quarter 2013 net income of $591 million, net income to common shareholders of $582 million, earnings per fully diluted share of $0.65, and noninterest expense of $1,035 million.

Key Highlights

  • 1Amendment to previously reported Q2 2013 financial results.
  • 2Adjustment due to increased litigation loss contingency reserve by $18 million.
  • 3Noninterest expense for Q2 2013 increased by $18 million.
  • 4Net income for Q2 2013 reduced by $12 million.
  • 5Net income to common shareholders for Q2 2013 reduced by $12 million.
  • 6Earnings per fully diluted share for Q2 2013 reduced by $0.01 (from $0.66 to $0.65).
  • 7Revised Q2 2013 net income expected to be $591 million.

Frequently Asked Questions

This amended 8-K filing is to update and correct previously reported second quarter 2013 financial results due to new information regarding a litigation loss contingency.

The company increased its reserve for a litigation loss by $18 million. This resulted in an $18 million increase in noninterest expense, a $12 million reduction in net income, and a $0.01 reduction in earnings per fully diluted share for the second quarter of 2013.

Fifth Third Bancorp now expects to report second quarter 2013 net income of $591 million, net income to common shareholders of $582 million, earnings per fully diluted share of $0.65, and noninterest expense of $1,035 million.

While the $12 million reduction in net income and $0.01 decrease in EPS are noted, the overall Q2 2013 net income remains substantial at $591 million. Investors should consider this adjustment within the context of the company's total revenue and profitability for the quarter and its ongoing litigation strategy.