Fifth Third's Average Loans and Leases Post Slight Increase From a Year Ago -- Earnings Review

07/19/18 07:27 AM EDT
   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 allison.prang@wsj.com

 

(END) Dow Jones Newswires

July 19, 2018 07:27 ET (11:27 GMT)

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