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Fifth Third Bancorp Reports Operating Results (10-Q)

November 08, 2010 | About:
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10qk

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Fifth Third Bancorp (FITB) filed Quarterly Report for the period ended 2010-09-30.

Fifth Third Bancorp has a market cap of $10.38 billion; its shares were traded at around $13.03 with a P/E ratio of 144.78 and P/S ratio of 1.1. The dividend yield of Fifth Third Bancorp stocks is 0.31%.FITB is in the portfolios of David Tepper of APPALOOSA MANAGEMENT LP, Charles Brandes of Brandes Investment, Bruce Kovner of Caxton Associates, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, James Barrow of Barrow, Hanley, Mewhinney & Strauss, Richard Snow of Snow Capital Management, L.P., Chuck Royce of Royce& Associates, Richard Snow of Snow Capital Management, L.P., David Dreman of Dreman Value Management, John Buckingham of Al Frank Asset Management, Inc., Richard Pzena of Pzena Investment Management LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

The Bancorps net income available to common shareholders for the quarter ended September 30, 2010 was $175 million, or $0.22 per diluted share, which included $63 million in preferred stock dividends. For the quarter ended September 30, 2009, the Bancorps net loss available to common shareholders was $159 million, or $0.20 per diluted share, which included $62 million in preferred stock dividends.

The Bancorps net income available to common shareholders for the nine months ended September 30, 2010 was $233 million, or $0.29 per diluted share, which included $187 million in preferred stock dividends. For the nine months ended September 30, 2009, the Bancorps net income available to common shareholders was $670 million, or $0.91 per diluted share, which included $165 million in preferred stock dividends.

Net interest income (FTE) increased five percent in the third quarter of 2010 to $916 million, compared to $874 million in the same period last year, and increased nine percent to $2.7 billion during the nine months ended September 30, 2010, compared to $2.5 billion in the same period last year. The primary reason for the increase in net interest income was an increase in the interest rate spread, which increased 34 bp from the third quarter of 2009 and increased 42 bp compared to the nine months ended September 30, 2009. This was the result of a mix shift from higher cost term deposits to lower cost deposit products, as well as a decrease in average interest-bearing liabilities, partially offset by reduced loan demand. Third quarter 2010 and 2009 results included $14 million and $29 million, respectively, of net interest income due to the accretion of premiums and discounts on loans and deposits from acquisitions during 2008, while the nine months ended September 30, 2010 and 2009 included $52 million and $109 million, respectively. Excluding these adjustments, net interest income increased $57 million, or seven percent, from the third quarter of 2009 and increased $269 million, or 11%, from the nine months ended September 30, 2009. Net interest margin was 3.70% in the third quarter of 2010 and 3.63% for the nine months ended September 30, 2010, an increase of 27 bp from the third quarter of 2009 and 38 bp from the nine months end

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