Fifth Third's Average Loans and Leases Post Slight Increase From a Year Ago -- Earnings Review
By Allison Prang
Fifth Third Bancorp (FITB) released its second-quarter financial results before the market opened Thursday. Here's what you need to know.
PROFIT: The financial-services company reported a profit of $586 million, or 80 cents a share, up 60% from the $367 million, or 45 cents a share, that the company made for the comparable quarter a year ago.
NET INTEREST INCOME: Net interest income rose 8.4% to $1.02 billion.
NET INTEREST MARGIN: The company's net interest margin expanded 20 basis points to 3.21%.
NONINTEREST INCOME: Total noninterest income rose 32% to $743 million, helped by a double-digit percentage increase in corporate banking revenue. Net revenue for mortgage banking declined, but card and processing revenue and revenue from wealth and asset management both rose by single-digit percentages. Other noninterest income nearly tripled. Taking out some items -- including gains related to Worldpay and from the IPO of GreenSky -- total noninterest income fell 1%.
NONINTEREST EXPENSES: Total noninterest expenses rose 8.4% to $1.04 billion as costs for salaries, wages and incentives along with technology and communications both rose by double-digit percentages.
PROVISION FOR LOAN AND LEASE LOSSES: The provision for loan and lease losses fell 37% to $33 million.
LOANS: Total average portfolio loans and leases rose 0.6% to $92.56 billion. Consumer loans were almost unchanged compared to the second quarter a year ago while commercial loans and leases rose 1.1%.
Shares, down 0.3% year to date, were unchanged premarket.
Write to Allison Prang at firstname.lastname@example.org
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July 19, 2018 07:27 ET (11:27 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.