Fifth Third reports Q2 EPS 82cwith items, consensus 83c

Reported results included a negative 5c impact from certain items. Diluted earnings per share impact reflects 686.386 million average diluted shares outstanding. Reports Q2 tangible book value per share $15.61 vs. $17.10 last year. The provision for credit losses totaled $177M in the current quarter. The allowance for credit loss ratio represented 2.08% of total portfolio loans and leases at quarter end, compared with 1.99% for the prior quarter end and 1.85% for the year-ago quarter end. Net charge-offs were $90M in the current quarter, resulting in an NCO ratio of 0.29%. Compared to the prior quarter, net charge-offs increased $12M and the NCO ratio increased 3 bps. Tim Spence, Fifth Third President and CEO, said, “Fifth Third’s financial results once again reflected our balance sheet strength, disciplined credit risk management, and diversified revenue streams. We have continued to navigate the uncertain economic environment well, including delivering solid deposit outcomes once again this quarter. Additionally, our key return metrics improved compared to the year-ago quarter while we continued to raise our regulatory capital ratios through strong earnings results. We continue to prudently invest in this environment, adding net new households in consumer and new quality middle market relationships in commercial. Furthermore, we announced the acquisition of Rize Money to accelerate our embedded payments capabilities under the Newline brand. We also de-emphasized certain areas of the bank in order to optimize capital and returns going forward, including lowering production targets in indirect secured consumer lending.”