Fifth Third Bancorp shares fall 3% as Q3 earnings miss estimates

CINCINNATI - Fifth Third Bancorp (NASDAQ:FITB ) reported third quarter earnings that fell short of analyst expectations, sending shares down 3.2% in early trading Thursday.

The regional bank posted earnings per share of $0.78, missing the consensus estimate of $0.83. Revenue came in at $2.13 billion, below the $2.16 billion analysts were expecting.

Net income available to common shareholders declined 15% YoY to $532 million. Net interest income fell 1% YoY to $1.43 billion, while noninterest income decreased 1% to $711 million.

"Fifth Third achieved another quarter of strong and consistent performance driven by our resilient balance sheet, diversified and growing revenue streams, and disciplined expense management," said Tim Spence, Fifth Third's Chairman, CEO and President.

The bank's net interest margin contracted to 2.90%, down from 2.98% in the year-ago quarter. Average loans decreased 4% YoY to $116.8 billion, while average deposits rose 1% to $167.2 billion.

Credit quality metrics showed some deterioration, with net charge-offs increasing to 0.48% of average loans from 0.41% a year ago. The allowance for credit losses rose to 2.09% of total loans, up from 2.11% last year.

Fifth Third maintained strong capital levels, with its Common Equity Tier 1 ratio improving to 10.75% from 9.80% a year ago. The bank repurchased $200 million of stock in the quarter and raised its quarterly dividend by 6% to $0.37 per share.

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Source: Investing.com