FIFTH THIRD ANNOUNCES 2012 EARNINGS PER SHARE OF $
FIFTH THIRD ANNOUNCES 2012 EARNINGS PER SHARE OF $1.66, UP 41 PERCENT FROM 2011
Fourth quarter earnings per share $0.43, up 30 percent from fourth quarter 2011
4Q12 net income available to common shareholders of $390 million, or $0.43 per diluted share, vs. $354 million, or $0.38 per diluted share, in 3Q12 and $305 million, or $0.33 per diluted share, in 4Q11. 4Q12 results included:
$157 million pre-tax gain (~$102 million after-tax, or $0.11 per share) on the sale of Vantiv shares
$134 million pre-tax expense for debt extinguishment (~$87 million after-tax, or $0.09 per share) associated with the termination of FHLB debt
$19 million pre-tax negative adjustment (~$12 million after-tax, or $0.01 per share) on the valuation of the warrant Fifth Third holds in Vantiv
$15 million pre-tax charge ($10 million after-tax, or $0.01 per share) related to valuation of Visa total return swap
$29 million (~$19 million after-tax, or $0.02 per share) in charges related to an increase in the mortgage representation and warranty reserve due to new Freddie Mac guidance for potential 2004-06 repurchase claims
4Q12 return on assets (ROA) of 1.33%; return on average common equity of 11.5%; return on average tangible common equity** of 14.1%
Pre-provision net revenue (PPNR)** of $616 million in 4Q12
Net interest income (FTE) of $903 million, down $4 million from 3Q12; net interest margin 3.49%; end of period loans up $2.7 billion, or 3 percent, sequentially
Noninterest income of $880 million included $157 million gain on Vantiv shares and $37 million charges above
Noninterest expense of $1.2 billion included $134 million of debt extinguishment costs associated with the termination of FHLB debt as well as $26 million in additional expenses resulting from an increase in mortgage representation and warranty reserve
4Q12 effective tax rate of 26.8% compared with 27.7% in 3Q12
Credit trends remain favorable
4Q12 net charge-offs of $147 million (0.70% of loans and leases) vs. 3Q12 NCOs of $156 million and 4Q11 NCOs of $239 million; lowest NCO level since 3Q07; 4Q12 provision expense of $76 million compared with 3Q12 provision of $65 million and 4Q11 provision of $55 million
Loan loss allowance declined $71 million sequentially reflecting continued improvement in credit trends; allowance to loan ratio of 2.16%, 144% of nonperforming assets, 180% of nonperforming loans and leases, and 3.2 times 4Q12 annualized net charge-offs
Total nonperforming assets (NPAs) of $1.3 billion including loans held-for-sale (HFS) declined $174 million, or 12%, sequentially; NPAs excluding loans HFS of $1.3 billion declined $160 million, or 11%, lowest since 4Q07; NPA ratio of 1.49% down 24 bps from 3Q12, NPL ratio of 1.19% down 19 bps from 3Q12
Total delinquencies (includes loans 30-89 days past due and over 90 days past due) down 4% sequentially, lowest levels since 2Q04
Strong capital ratios*
Tier 1 common ratio 9.51%**, down 16 bps sequentially (Basel III pro forma estimate of ~8.8%)
Tier 1 capital ratio 10.65%, Total capital ratio 14.42%, Leverage ratio 10.05%
Tangible common equity ratio** of 8.83% excluding unrealized gains/losses; 9.10% including them
Repurchased ~14 million common shares through share repurchase transactions expected to settle in 1Q13 (these transaction are expected to further reduce average share count in 1Q13 versus 4Q12 by ~5 million shares)
Book value per share of $15.10; tangible book value per share** of $12.33 up 2% from 3Q12 and 10% from 4Q11
* Capital ratios estimated; presented under current U.S. capital regulations. The pro forma Basel III Tier I common equity ratio is management’s estimate based upon its current interpretation of the three draft Federal Register notices proposing enhancements to regulatory capital requirements published in June 2012. The actual impact to the Bancorp’s Tier I common equity ratio may change significantly due to revisions to the agencies’ final rules. See pp. 15-16 in Exhibit 99.1 of 8-k filing dated 1/17/13 for more information.
** Non-GAAP measure; see Reg. G reconciliation on page 34 in Exhibit 99.1 of 8-k filing dated 1/17/13.
CINCINNATI--(BUSINESS WIRE)--Jan. 17, 2013-- Fifth Third Bancorp (Nasdaq: FITB) today reported full year 2012 net income of $1.6 billion, up 22 percent from net income of $1.3 billion in 2011. After preferred dividends, 2012 net income available to common shareholders was $1.5 billion, or $1.66 per diluted share, up 41 percent compared with 2011 net income available to common shareholders of $1.1 billion, or $1.18 per diluted share.
Fourth quarter 2012 net income was $399 million, an increase of 10 percent from net income of $363 million in the third quarter of 2012 and 27 percent from net income of $314 million in the fourth quarter of 2011. After preferred dividends, net income available to common shareholders was $390 million, or $0.43 per diluted share, in the fourth quarter of 2012, compared with $354 million, or $0.38 per diluted share, in the third quarter of 2012, and $305 million, or $0.33 per diluted share, in the fourth quarter of 2011. Earnings per diluted share increased 13 percent from the third quarter of 2012 and 30 percent from the fourth quarter of 2011.
Fourth quarter 2012 noninterest income included a $157 million gain on the sale of Vantiv shares; a $19 million negative valuation adjustment on the Vantiv warrant; and a $15 million charge related to the valuation of the Visa total return swap. Net gains on investment securities were $2 million. Fourth quarter noninterest expense included $134 million of debt extinguishment costs associated with the termination of Federal Home Loan Bank (FHLB) debt and $13 million in charges to increase litigation reserves. Results also included an additional $29 million of charges to increase the mortgage representation and warranty reserve due to new Freddie Mac guidance for potential 2004-2006 repurchase claims. Fourth quarter 2012 taxes were reduced by approximately $10 million due to the termination of certain leases.
Third quarter 2012 noninterest income included a $16 million negative valuation adjustment on the Vantiv warrant; $13 million in gains recognized on the sale of certain Fifth Third funds; and a $1 million reduction related to the valuation of the Visa total return swap. Net gains on investment securities were $2 million. Third quarter noninterest expense included $26 million of debt extinguishment costs associated with the redemption of Fifth Third Capital Trust V and Fifth Third Capital Trust VI trust preferred securities (TruPS), a $5 million benefit from the sale of affordable housing investments, $5 million in charges to increase litigation reserves, and $2 million of expenses associated with the sale of certain Fifth Third funds. Results also included an additional $24 million of charges associated with the increase of the mortgage representation and warranty reserve. Fourth quarter 2011 results included a $54 million pre-tax charge to noninterest income related to the valuation of the Visa total return swap and $10 million in charges to increase litigation reserves, primarily reserves associated with bankcard association membership. Fourth quarter 2011 results also included $10 million in positive valuation adjustments on Vantiv puts and warrants and investment securities gains of $5 million.