Fifth Third Bancorp Rises Pre-market After Jump In Q4 Profit: Retail’s Exuberant
During the fourth quarter, the bank reported adjusted earnings of $0.90 per share, excluding charges of $0.05 per share. Analysts were expecting an adjusted profit of $0.87 per share.
FollowFifth Third Bancorp (FITB) shares gained in pre-market trade on Tuesday after the lender posted an 18.3% year-over-year (YoY) rise in fourth-quarter profit.
The company reported a net income of $582 million, or $0.85 per share, compared with $492 million, or $0.72 per share, in the year-ago quarter.
The Cincinnati-based bank reported adjusted earnings of $0.90 per share, which excludes charges of $0.05 per share, during the fourth quarter. Analysts were expecting an adjusted profit of $0.87 per share, according to FinChat data.
FITB’s net interest income (NII) rose 1% to $1.44 billion for the quarter, aided by loan growth, deposit rate management, and fixed-rate asset re-pricing.
The company said its interest-bearing liabilities costs fell 38 basis points compared to the third quarter, improving its net interest margin by seven basis points.
The bank’s wealth and asset management revenue grew 11% to $163 million, aided by gains in personal asset management revenue, while its capital markets fees rose 16%.
The improvements helped offset a 14% slump in mortgage revenue.
Its total average portfolio loans and leases fell by 1% compared to last year, hurt by a decline in commercial and industrial loans. According to S&P data, U.S. manufacturing production was down for the fifth successive month in December, with the rate of contraction the fastest in a year and a half.
The bank’s provision for credit losses stood at $179 million, compared with $55 million in the year-ago quarter.
Fifth Third Bancorp forecast a 5% to 6% increase in NII in 2024.
However, it expects first-quarter NII to remain stable and sees non-interest income fall between 7% and 8% sequentially.
Retail sentiment on Stocktwits moved up to ‘extremely bullish’ (83/100) territory from ‘bullish’(58/100) a day ago, while retail chatter soared to ‘extremely high’ levels.
FITB’s Sentiment Meter and Message Volume as of 08:11 a.m. ET on Jan. 21, 2025 | Source: Stocktwits
Last week, major Wall Street banks, including Bank of America, Citigroup, JP Morgan & Chase, and Wells Fargo, topped Street estimates for quarterly profit.
Over the past year, FITB had gained 28.3%.
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