Fifth Third Bancorp Reports Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter of 2016; Provides Earnings Guidance for the First Quarter and Full Year of Fiscal 2017
The company reported full year 2016 net income of $1.6 billion, down 9% from net income of $1.7 billion in 2015. After preferred dividends, 2016 net income available to common shareholders was $1.5 billion, or $1.93 per diluted share, down 9% compared with 2015 net income available to common shareholders of $1.6 billion, or $2.01 per diluted share. Results were significantly impacted by Vantiv-related transactions throughout 2015 and 2016.
For the fourth quarter of 2016, the company reported net charge-offs were $73 million, decreased from third quarter of 2016 NCOs of $107 million. For the same period last year, the company announced net charge-offs of $80 million.
The company expects first quarter 2017 tax rate to be in the mid-25% range. The company expects its first quarter net interest income to be up by 1.5% to 2% from the reported fourth quarter net interest income.
The company expects to continue to generate improved results in 2017. The company expects full year 2017 tax rate to be in the mid-25% range. The company is projecting full year net interest income growth of 3.5% to 5%, bracketed by the two rate scenarios that I just outlined.