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Fifth Third (FITB) Q2 Earnings Beat on Lower Provisions

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Have you been eager to see how Fifth Third Bancorp FITB performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Ohio-based bank’s earnings release this morning:

An Earnings Beat

Fifth Third came out with adjusted earnings per share of 63 cents (excluding certain one-time items), beating the Zacks Consensus Estimate of 57 cents. Results were aided by higher revenues and reduced provisions, partly offset by higher expenses.

Including one-time items, earnings per share would have been 80 cents, up 78% year over year.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Fifth Third was stable prior to the earnings release. The Zacks Consensus Estimate remained unchanged at 57 cents over the last seven days.

Notably, Fifth Third has an impressive earnings surprise history. Before posting earnings beat in Q2, the company delivered positive surprises in three out of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 9.73% in the trailing four quarters.
 

Fifth Third Bancorp Price and EPS Surprise

Fifth Third Bancorp Price and EPS Surprise | Fifth Third Bancorp Quote

Revenue Came In Lower Than Expected

Fifth Third posted adjusted revenues of $1.59 billion, lagging the Zacks Consensus Estimate of $1.61 billion. However, revenues were up 4.6% year over year.

Key Stats:

 

  • Net income available to common shareholders increased 64% year over year to $563 million.
  • Provision for loan and lease losses decreased 37% year over year to $33 million.
  • Return on average assets increased to 1.66% from 1.05% in the prior year quarter.


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for Fifth Third. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this Fifth Third earnings report!

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