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Fifth Third EPS down 38% YOY

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Fifth Third EPS down 38% YOY

Fifth Third Bancorp on Jan. 24 reported fourth-quarter 2016 net income available to common shareholders of $372 million, or 49 cents per share. In comparison, it was $634 million, or 79 cents per share, a year ago.

Full-year 2016 net income available to common shareholders, meanwhile, was $1.5 billion, or $1.93 per share, compared with 2015's $1.6 billion, or $2.01 per share.

The fourth quarter saw the Cincinnati-based company's EPS adjusted by a penny, thanks to a $9 million pretax gain on the Vantiv warrant net exercise, a $6 million benefit related to the valuation of the Visa total return swap, a $16 million reduction to net interest income for refunds to certain bankcard customers and a $6 million tax benefit from the early adoption of an accounting standard.

The S&P Capital IQ consensus normalized EPS estimate was 44 cents for the recent quarter and $1.89 for the full year.

Fifth Third's taxable equivalent net interest margin for the quarter was 2.86%, down sequentially from 2.88% but slightly up from fourth-quarter 2015's 2.85%.

It noted that its average portfolio loan and lease balances were down 1% both sequentially and year over year, because of its reduction in auto loan originations and its exit from certain commercial and industrial loans. There was an increase, however, in residential mortgage and commercial real estate loans.

Total nonperforming assets stood at $751 million, down from the third quarter's $798 million. Net losses charged-off amounted to $73 million in the recent quarter, compared with $107 million in the quarter prior and the $80 million of a year ago.

The company recorded a provision for loan and lease losses of $54 million, down from the linked quarter's $80 million and the year-ago period's $91 million.