Fifth Third Bancorp's (NASDAQ:FITB) net income increased and topped Wall Street expectations in the second quarter.
Earnings and Revenue The company experienced stronger-than-expected EPS and revenues. The company reported EPS of 40 cents a share versus the 35 cents a share estimate and revenues of $1.58 billion versus the $1.54 billion estimate. The company's reported EPS came in above the high estimate of 24 analysts of a profit of 38 cents.
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The company's net income for the quarter rose 11.6% to $376 million. Revenue climbed 3.4% from $1.7 billion in the same period last year.
Company Fundamental Trends
History Against Expectations The company has managed to top estimates the last two quarters. In the first quarter, it beat expectations with net income of 45 cents versus a mean estimate of net income of 36 cents per share.
Official Comment: Quot"Earnings trends remained positive in the second quarter of 2012. Results came in better than we had anticipated and followed a very strong first quarter," said Kevin Kabat, President and CEO of Fifth Third Bancorp. "Mortgage results remained strong. Our capabilities and strength of market position has enabled us to capture significant business as we assist our customers in taking advantage of historically low interest rates. Card and processing revenue was up nine percent sequentially, and corporate banking revenue increased five percent sequentially as loan production and ancillary business volume remained healthy during the quarter. "Expenses were well managed and declined four percent in the quarter. We remain focused on expenses as we navigate through a relatively sluggish economic environment, even as we continue to develop new products and enhance services to customers. Charged-off loans dropped to 88 basis points of loans and leases, the lowest level since 2007 and we continue to expect further improvement in the second half of the year."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.