Fifth Third Bancorp Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Reports Net Charge Offs for the Fourth Quarter Ended December 31, 2013; Provides Financial Guidance for 2014
January 23, 2014 at 11:39 am
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Fifth Third Bancorp reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported net income of $402 million, a decrease of 4% from net income of $421 million in the third quarter of 2013 and an increase of 1% from net income of $399 million in the fourth quarter of 2012. After preferred dividends, net income available to common shareholders was $383 million, or $0.43 per diluted share, in the fourth quarter 2013, compared with $421 million, or $0.47 per diluted share, in the third quarter 2013, and $390 million, or $0.43 per diluted share, in the fourth quarter of 2012. Net interest income (taxable equivalent) was $905 million compared to $903 million a year ago. Income before taxes (taxable equivalent) was $566 million compared to $544 million a year ago. Return on average assets was 1.24% against 1.33% a year ago. Return on average common equity was 10.8% against 11.5% a year ago. Return on average tangible common equity was 13.1% against 14.1% a year ago. Tangible common equity was 8.63% compared to 8.83% a year ago.
For the full year, the company reported net income of $1.8 billion, up 16% from net income of $1.6 billion in 2012. After preferred dividends, 2013 net income available to common shareholders was a record $1.8 billion, or $2.02 per diluted share, up 17% compared with 2012 net income available to common shareholders of $1.5 billion, or $1.66 per diluted share. Return on average assets was 1.48% against 1.34% a year ago. Return on average common equity was 13.1% against 11.6% a year ago. Return on average tangible common equity was 16.0% against 14.3% a year ago. Tangible common equity was 8.63% compared to 8.83% a year ago. Book value per share at December 31, 2013 was $15.85 and tangible book value per share was $13.00, compared with December 31, 2012 book value per share of $15.10 and tangible book value per share of $12.33.
For the fourth quarter of December 2013, the company reported net charge offs of $148 million (0.67% of loans and leases) compared to $147 million a year ago.
The company currently expects 2014 expenses to decline in the mid-single-digits relative to reported 2013 expenses. The expected decline is primarily due to lower legal costs and lower personnel cost, primarily mortgage-related. The company expects the full year 2014 effective tax rate to be about 28% range, consistent with the 2013 adjusted rate.
The company expects the full year net charge-off ratio to be in the 40 to 45-basis-point range compared with the 58 basis points reported this year. NPAs should decline another 20% or so in 2014, which would push the NPA ratio solidly below 1% during the year.
Fifth Third Bancorp is a banking group primarily organized around three sectors of activity:
- retail banking (55.5% of Net Interest Income): sales of banking products and services to individuals and small businesses;
- commercial banking (40.7%): sales of banking and financial products and services to medium-sized and large businesses, government institutions, and professionals;
- investment services (3.8%): investment consulting services, asset management, brokerage services, etc.
At the end of 2023, the group had USD 168.9 billion in current deposits and USD 114.9 billion in current loans.
The products and services are marketed through a network of 1,088 banking centers located in the United States.
Fifth Third Bancorp Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Reports Net Charge Offs for the Fourth Quarter Ended December 31, 2013; Provides Financial Guidance for 2014