Fifth Third Bancorp Earnings Cheat Sheet: Beats Wall Street Expectations

S&P 500 (NYSE:SPY) component Fifth Third Bancorp (NASDAQ:FITB) reported net income above Wall Street’s expectations for the third quarter. Fifth Third Bancorp is a diversified financial services company which conducts its lending, deposit gathering, transaction processing and service advisory activities through its subsidiaries.

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Fifth Third Bancorp Earnings Cheat Sheet for the Third Quarter

Results: Net income for Fifth Third Bancorp rose to $381 million (40 cents per share) vs. $238 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 60.1% from the year earlier quarter.

Revenue: Noninterest income was $665 million last quarter.

Actual vs. Wall St. Expectations: FITB beat the mean analyst estimate of 33 cents per share.

Quoting Management: “Fifth Third’s third quarter results showed continued strength as we generated a profit of $373 million, up 14 percent from last quarter and more than doubling from last year,” said Kevin T. Kabat, president and CEO of Fifth Third Bancorp. “Return on assets was 1.34 percent and we generated a return on average tangible common equity of nearly 15 percent. Tangible book value per share grew a strong five percent sequentially. Revenue increased three percent sequentially. The primary driver of growth during the quarter was a four percent increase in net interest income. Average loan balances excluding loans held-for-sale were up one percent over last quarter and up two percent on a period end basis.”

Key Stats:

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 35 cents versus a mean estimate of net income of 28 cents per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 33 cents per share, up from 30 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $1.12 per to share to $1.26.

Competitors to Watch: Huntington Bancshares Inc. (NASDAQ:HBAN), FirstMerit Corporation (NASDAQ:FMER), Dearborn Bancorp, Inc. (NASDAQ:DEAR), Marshall & Ilsley Corp. (NYSE:MI), Wells Fargo & Company (NYSE:WFC), Bank of America Corp. (NYSE:BAC), PNC Financial Services (NYSE:PNC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup (NYSE:C), SunTrust Banks, Inc. (NYSE:STI), and PrivateBancorp, Inc. (NASDAQ:PVTB).

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(Source: Xignite Financials)