October 20, 2011 06:30 AM Eastern Daylight Time
- 3Q11 net income available to common shareholders of $373 million or $0.40 per diluted common share
- EPS up 14 percent versus $0.35 per share in 2Q11; up 82 percent versus $0.22 per share in 3Q10
- Net income to common increased 14 percent versus $328 million in 2Q11; increased 112 percent versus $175 million in 3Q10
- 3Q11 net income of $381 million
- 3Q11 return on assets of 1.3 percent
- 3Q11 return on average common equity* of 11.9 percent; return on average tangible common equity* of 14.9 percent
- Pre-provision net revenue (PPNR)* of $617 million
- Net interest income (FTE) of $902 million, up 4 percent sequentially; net interest margin 3.65 percent; period end loans up 2 percent sequentially driven by 4 percent growth in C&I loans
- Noninterest income of $665 million, up 1 percent sequentially driven primarily by securities gains, stronger mortgage-related revenue, and service charges on deposits, partially offset by the sequential effects of valuation adjustments on Visa total return swap and Vantiv puts and warrants
- Noninterest expense of $946 million, up 5 percent sequentially driven by costs related to the termination of certain FHLB borrowings and hedging transactions
- Credit trends remain favorable
- 3Q11 net charge-offs of $262 million (1.32 percent of loans and leases), the lowest level since 4Q07, versus 2Q11 NCOs of $304 million and 3Q10 NCOs of $956 million ($510 million on the sale or transfer of loans to held-for-sale and $446 million of losses on remaining loan portfolio)
- Total nonperforming assets of $2.1 billion including held-for-sale declined $123 million or 5 percent sequentially; nonperforming assets excluding held-for-sale of $1.9 billion declined $144 million or 7 percent; lowest levels since 2Q08
- NPA ratio of 2.44 percent down 22 bps from 2Q11, NPL ratio of 1.93 percent down 16 bps from 2Q11; Gross NPL inflows of $418 million down 25 percent sequentially
- Total delinquencies (includes 30-89 days past dues and over 90 days past dues) flat sequentially
- Allowance to loan ratio of 3.08 percent, 125 percent of nonperforming assets, 158 percent of nonperforming loans and leases, and 2.4 times 3Q11 annualized net charge-offs
- No direct European sovereign exposure; total exposure to European peripheral** borrowers less than $0.2 billion; gross exposure to European banks less than $0.3 billion
- Strong capital ratios; exceed fully phased-in Basel III proposed standards
- Tier 1 common ratio 9.33 percent, up 13 bps sequentially (pro forma*** ~9.8 percent on a fully-phased in Basel III-adjusted basis, estimated among highest of large cap U.S. banks)
- Tier 1 ratio 11.96 percent, Total capital ratio 16.25 percent, Leverage ratio 11.08 percent
- Tangible common equity ratio* of 8.63 percent excluding unrealized gains/losses; 9.04 percent including unrealized gains/losses
- Book value per share of $13.73, tangible book value per share* of $11.05
- Tangible book value per share growth 5 percent from 2Q11, 13 percent from 3Q10
* non-GAAP measure; See Reg. G reconciliation on page 32 in Exhibit 99.1 of 8-k filing dated 10/20/11
** Greece, Ireland, Italy, Portugal, Spain
*** Current estimate (non-GAAP), subject to final rule-making and clarification by U.S. banking regulators; currently assumes unrealized securities gains are included in common equity for purposes of this calculation
CINCINNATI--(BUSINESS WIRE)--Fifth Third Bancorp (Nasdaq: FITB) today reported third quarter 2011 net income of $381 million, compared with net income of $337 million in the second quarter of 2011 and net income of $238 million in the third quarter of 2010. After preferred dividends, third quarter 2011 net income available to common shareholders was $373 million or $0.40 per diluted share, compared with second quarter net income of $328 million or $0.35 per diluted share, and net income of $175 million or $0.22 per diluted share in the third quarter of 2010.
“Return on assets was 1.34 percent and we generated a return on average tangible common equity of nearly 15 percent. Tangible book value per share grew a strong 5 percent sequentially.”
Third quarter 2011 results included a $17 million reduction in other noninterest income related to the valuation of a total return swap entered into as part of the 2009 sale of Visa, Inc. Class B shares. There were similar reductions of $4 million in the second quarter of 2011 and $5 million in the third quarter of 2010. Third quarter 2011 results included $3 million in positive valuation adjustments on Vantiv LLC puts and warrants, compared with positive $29 million in the second quarter of 2011 and negative $5 million in the third quarter of 2010. Third quarter 2011 results included investment securities gains of $26 million, compared with $6 million in the second quarter and $4 million in the year ago quarter. Third quarter 2011 results also included $28 million of expense related to the termination of certain FHLB borrowings and hedging transactions. Third quarter 2010 net income included a pre-tax benefit, net of associated expenses, of $127 million from the settlement of litigation related to a bank-owned life insurance (BOLI) policy.
