Daily News: January 23, 2015

Fifth Third Q4 Earnings Top Estimates

Fifth Third Bancorp reported full year 2014 net income, after preferred dividends, was $1.4 billion, down 21% compared with 2013 net income available to common shareholders of $1.8 billion.

Fourth quarter 2014 net income, after preferred dividends, was $362 million, or $0.43 per diluted share, compared to $383 million in the fourth quarter of 2013. Analysts polled by Thomson Reuters had expected EPS of $0.42.

Highlights from Q4 of the Fifth Third news release:

  • Net interest income of $888 million was down 2% from $905 million from Q4/13; the net interest margin of 2.96% was down 25 basis points from 3.21% in Q4/13. Average yield on interest-earning assets of 3.38% in Q4/14 was down from 3.57% in Q4/13.
  • Q4/14 net charge-offs of $191 million (0.83% of loans and leases) included $87 million of charge-offs related to the transfer of residential mortgage loans classified as troubled debt restructurings to held-for-sale. NCOs in Q4/13 were $148 million (0.67% of loans and leases).
  • Q4/14 provision expense of $99 million included $23 million impact related to the above referred transfer of loans to held-for-sale versus $53 million in Q4/13.
  • “Fifth Third reported full year net income available to common shareholders of $1.4 billion, which included solid performance across our business lines highlighted by growth in corporate banking, payments processing, and investment advisory revenue,” said Kevin T. Kabat, vice chairman and CEO of Fifth Third Bancorp. “Fourth quarter earnings of $385 million rounded out a solid year in a very tough operating environment. . We continue to make what we believe to be long-term value enhancing decisions when we deploy our shareholders’ equity and maintain our focus on earnings growth as we anticipate a healthier economy in 2015,” Kabat added.

    To read the entire news release, click here.