2017 Earnings Per Diluted Share of $2.83
- 4Q17 net income available to common shareholders of $486 million, or $0.67 per diluted common share
- Results included a net positive $0.15 impact on reported 4Q17 EPS:
― Items primarily resulting from the Tax Cuts and Jobs Act(a):
- $220 million income tax reduction from a remeasurement of the deferred tax liability
- $68 million pre-tax (~$44 million after-tax)(b) impairment related to affordable housing investments within noninterest expense
- $27 million pre-tax (~$18 million after-tax)(b) remeasurement related to the tax treatment of leveraged leases reducing interest income
- $15 million pre-tax (~$10 million after-tax)(b) expense related to one-time employee bonuses
- $15 million pre-tax (~$10 million after-tax)(b) contribution to the Fifth Third Foundation
― $20 million tax expense related to a gain on the sale of Vantiv(c) shares sold in 3Q17
― $11 million pre-tax (~$7 million after-tax)(b) charge related to the valuation of the Visa total return swap
- Net interest income (NII) of $956 million; taxable equivalent NII of $963 million(d), down 1% from 3Q17 and up 6% from 4Q16
- Reported results were negatively impacted by the $27 million leveraged lease remeasurement in 4Q17 and $16 million estimated card refund charge in 4Q16
- Adjusted taxable equivalent NII(d) of $990 million, up 1% from 3Q17 and up 7% from 4Q16, driven by higher interest earning asset yields and higher yielding consumer loans
- Taxable equivalent net interest margin (NIM) of 3.02%(d), down 5 bps from 3Q17 and up 16 bps from 4Q16
- Reported results were negatively impacted by 8 bps from the leveraged lease remeasurement in 4Q17 and 5 bps from the estimated card refund charge in 4Q16
- Adjusted taxable equivalent NIM(d) of 3.10%, up 3 bps from 3Q17 and up 19 bps from 4Q16, impacted by higher securities portfolio and consumer loan yields
- Noninterest income of $577 million, compared with $1.561 billion in 3Q17 and $620 million in 4Q16
- Sequential decrease primarily reflected a gain on the sale of Vantiv shares in 3Q17
- Excluding the Vantiv gain, Visa total return swap charges and securities gains, noninterest income increased 3% from 3Q17 reflecting a $44 million Vantiv TRA payment and higher wealth and asset management revenue
- Noninterest expense of $1.073 billion, up 10% from 3Q17 and up 12 percent from 4Q16
- Sequential increase was driven primarily by the affordable housing impairment, one-time employee bonuses, and contribution to the Fifth Third Foundation in 4Q17
- Excluding these items, noninterest expense of $975 million was flat from 3Q17 reflecting lower other noninterest expense offset by higher employee benefits
- Average portfolio loans and leases of $92.3 billion, flat from 3Q17 and down 1% from 4Q16
- Portfolio nonperforming asset (NPA) ratio of 0.53%, down 7 bps from 3Q17 and down 27 bps from 4Q16
- Net charge-offs (NCOs) of $76 million, up $8 million from 3Q17 and up $3 million from 4Q16; NCO ratio of 0.33% compared to 0.29% in 3Q17 and 0.31% in 4Q16
- 4Q17 provision expense of $67 million flat from 3Q17 and up $13 million from 4Q16
- Common equity Tier 1 (CET1)(e) ratio of 10.61%
- Tangible common equity ratio of 8.99%(d); 8.94% excluding unrealized gains/losses(d)
- Book value per share of $21.67, up 2% from 3Q17 and up 9% 4Q16; tangible book value per share(d) of $18.10 up 1% from 3Q17 and up 9% from 4Q16
Fifth Third Bancorp (Nasdaq:FITB) today reported full year 2017 net
income of $2.2 billion, up 41 percent from net income of $1.6 billion in
2016. After preferred dividends, 2017 net income available to common
shareholders was $2.1 billion, or $2.83 per diluted share, compared with
2016 net income available to common shareholders of $1.5 billion, or
$1.93 per diluted share. Results were significantly impacted by
Vantiv-related transactions throughout 2016 and 2017 and items resulting
from the Tax Cuts and Jobs Act in 2017.
Fourth quarter 2017 net income was $509 million, a decrease of 50
percent from net income of $1.014 billion in the third quarter of 2017
and an increase of 29 percent from net income of $395 million in the
fourth quarter of 2016. After preferred dividends, net income available
to common shareholders was $486 million, or $0.67 per diluted share, in
the fourth quarter 2017, compared with $999 million, or $1.35 per
diluted share, in the third quarter of 2017, and $372 million, or $0.49
per diluted share, in the fourth quarter of 2016. Results were
significantly impacted by a Vantiv-related transaction in the third
quarter of 2017 and items resulting from the Tax Cuts and Jobs Act in
the fourth quarter of 2017.
“Our strong fourth quarter and full year 2017 results reflect continued
progress toward achieving our long term financial goals. Our business
strategies are well aligned with the interests of our shareholders, our
customers, our employees, and the communities we serve. Our balance
sheet remains strong and positions us well for growth in 2018,” said
Greg D. Carmichael, President and CEO of Fifth Third Bancorp.
“The investments that we have made following the passage of the new tax
law demonstrate our commitment to improving the lives of our employees
and our communities. In addition to the immediate positive impact of
lower corporate taxes on our company’s results, we are optimistic that
the new tax law will help to reinvigorate the economy and support
further growth in our businesses.”
“Underlying quarterly performance showed continued NIM expansion,
disciplined expense management, and another quarter of strong credit
metrics. As we discussed at our recent Investor Day, we have continued
to generate positive momentum over the past year. We remain focused on
driving improved shareholder returns in 2018 and beyond as we execute on
our strategic initiatives under Project North Star.”
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
December
|
|
|
September
|
|
|
June
|
|
|
March
|
|
|
December
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
Seq
|
|
Yr/Yr
|
|
Income Statement Data ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Bancorp
|
|
|
$509
|
|
|
$1,014
|
|
|
$367
|
|
|
$305
|
|
|
$395
|
|
|
(50%)
|
|
29%
|
|
Net income available to common shareholders
|
|
|
$486
|
|
|
$999
|
|
|
$344
|
|
|
$290
|
|
|
$372
|
|
|
(51%)
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
703,372
|
|
|
721,280
|
|
|
741,401
|
|
|
747,668
|
|
|
746,367
|
|
|
(2%)
|
|
(6%)
|
|
Diluted
|
|
|
716,908
|
|
|
733,285
|
|
|
752,328
|
|
|
760,809
|
|
|
757,704
|
|
|
(2%)
|
|
(5%)
|
|
Earnings per share, basic
|
|
|
$0.68
|
|
|
$1.37
|
|
|
$0.46
|
|
|
$0.38
|
|
|
$0.49
|
|
|
(50%)
|
|
39%
|
|
Earnings per share, diluted
|
|
|
0.67
|
|
|
1.35
|
|
|
0.45
|
|
|
0.38
|
|
|
0.49
|
|
|
(50%)
|
|
37%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per common share
|
|
|
$0.16
|
|
|
$0.16
|
|
|
$0.14
|
|
|
$0.14
|
|
|
$0.14
|
|
|
-
|
|
14%
|
|
Book value per share
|
|
|
21.67
|
|
|
21.30
|
|
|
20.42
|
|
|
20.13
|
|
|
19.82
|
|
|
2%
|
|
9%
|
|
Tangible book value per share(d)
|
|
|
18.10
|
|
|
17.86
|
|
|
17.11
|
|
|
16.89
|
|
|
16.60
|
|
|
1%
|
|
9%
|
|
Common shares outstanding (in thousands)
|
|
|
693,805
|
|
|
705,474
|
|
|
738,873
|
|
|
750,145
|
|
|
750,479
|
|
|
(2%)
|
|
(8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
bps Change
|
|
Return on average assets
|
|
|
1.43
|
%
|
|
2.85
|
%
|
|
1.05
|
%
|
|
0.88
|
%
|
|
1.11
|
%
|
|
(142)
|
|
32
|
|
Return on average common equity
|
|
|
12.7
|
|
|
25.6
|
|
|
9.0
|
|
|
7.8
|
|
|
9.7
|
|
|
(1290)
|
|
300
|
|
Return on average tangible common equity(d)
|
|
|
15.2
|
|
|
30.4
|
|
|
10.7
|
|
|
9.3
|
|
|
11.6
|
|
|
(1520)
|
|
360
|
|
CET1 capital(e)
|
|
|
10.61
|
|
|
10.59
|
|
|
10.63
|
|
|
10.76
|
|
|
10.39
|
|
|
2
|
|
22
|
|
Tier I risk-based capital(e)
|
|
|
11.74
|
|
|
11.72
|
|
|
11.76
|
|
|
11.90
|
|
|
11.50
|
|
|
2
|
|
24
|
|
Net interest margin (taxable equivalent)(d)
|
|
|
3.02
|
|
|
3.07
|
|
|
3.01
|
|
|
3.02
|
|
|
2.86
|
|
|
(5)
|
|
16
|
|
Efficiency (taxable equivalent)(d)
|
|
|
69.7
|
|
|
38.4
|
|
|
63.4
|
|
|
67.4
|
|
|
62.8
|
|
|
3130
|
|
690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Taxable equivalent basis; $ in millions)(d)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Seq
|
|
Yr/Yr
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
|
|
|
|
|
|
|
|
|
|
$1,151
|
|
$1,159
|
|
$1,112
|
|
$1,092
|
|
$1,058
|
|
(1%)
|
|
9%
|
|
Total interest expense
|
|
|
|
|
|
|
|
|
|
|
188
|
|
182
|
|
167
|
|
153
|
|
149
|
|
3%
|
|
26%
|
|
Net interest income
|
|
|
|
|
|
|
|
|
|
|
$963
|
|
$977
|
|
$945
|
|
$939
|
|
$909
|
|
(1%)
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
bps Change
|
|
Yield on interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
3.61%
|
|
3.64%
|
|
3.54%
|
|
3.51%
|
|
3.33%
|
|
(3)
|
|
28
|
|
Adjusted yield on interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
3.69%
|
|
3.64%
|
|
3.54%
|
|
3.51%
|
|
3.33%
|
|
5
|
|
36
|
|
Rate paid on interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
0.88%
|
|
0.85%
|
|
0.79%
|
|
0.73%
|
|
0.70%
|
|
3
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread
|
|
|
|
|
|
|
|
|
|
|
2.73%
|
|
2.79%
|
|
2.75%
|
|
2.78%
|
|
2.63%
|
|
(6)
|
|
10
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
|
|
3.02%
|
|
3.07%
|
|
3.01%
|
|
3.02%
|
|
2.86%
|
|
(5)
|
|
16
|
|
Adjusted net interest margin
|
|
|
|
|
|
|
|
|
|
|
3.10%
|
|
3.07%
|
|
3.01%
|
|
2.98%
|
|
2.91%
|
|
3
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
Loans and leases, including held for sale
|
|
|
|
|
|
|
|
|
|
|
$92,865
|
|
$92,617
|
|
$92,653
|
|
$92,791
|
|
$93,981
|
|
-
|
|
(1%)
|
|
Total securities and other short-term investments
|
|
|
|
|
|
|
|
|
|
|
33,756
|
|
33,826
|
|
33,481
|
|
33,177
|
|
32,567
|
|
-
|
|
4%
|
|
Total interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
126,621
|
|
126,443
|
|
126,134
|
|
125,968
|
|
126,548
|
|
-
|
|
-
|
|
Total interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
84,820
|
|
85,328
|
|
85,320
|
|
84,890
|
|
84,552
|
|
(1%)
|
|
-
|
|
Bancorp shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
16,493
|
|
16,820
|
|
16,615
|
|
16,429
|
|
16,545
|
|
(2%)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions, except per-share data)
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Seq
|
|
Yr/Yr
|
|
Condensed Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (taxable equivalent)(d)
|
|
|
|
|
|
|
$963
|
|
$977
|
|
$945
|
|
$939
|
|
$909
|
|
(1%)
|
|
6%
|
|
Provision for loan and lease losses
|
|
|
|
|
|
|
67
|
|
67
|
|
52
|
|
74
|
|
54
|
|
-
|
|
24%
|
|
Total noninterest income
|
|
|
|
|
|
|
577
|
|
1,561
|
|
564
|
|
523
|
|
620
|
|
(63%)
|
|
(7%)
|
|
Total noninterest expense
|
|
|
|
|
|
|
1,073
|
|
975
|
|
957
|
|
986
|
|
960
|
|
10%
|
|
12%
|
|
Income before income taxes (taxable equivalent)(d)
|
|
|
|
|
|
|
$400
|
|
$1,496
|
|
$500
|
|
$402
|
|
$515
|
|
(73%)
|
|
(22%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent adjustment
|
|
|
|
|
|
|
7
|
|
7
|
|
6
|
|
6
|
|
6
|
|
-
|
|
17%
|
|
Applicable income tax (benefit) expense
|
|
|
|
|
|
|
(116)
|
|
475
|
|
127
|
|
91
|
|
114
|
|
NM
|
|
NM
|
|
Net income
|
|
|
|
|
|
|
$509
|
|
$1,014
|
|
$367
|
|
$305
|
|
$395
|
|
(50%)
|
|
29%
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
Net income attributable to Bancorp
|
|
|
|
|
|
|
$509
|
|
$1,014
|
|
$367
|
|
$305
|
|
$395
|
|
(50%)
|
|
29%
|
|
Dividends on preferred stock
|
|
|
|
|
|
|
23
|
|
15
|
|
23
|
|
15
|
|
23
|
|
53%
|
|
-
|
|
Net income available to common shareholders
|
|
|
|
|
|
|
$486
|
|
$999
|
|
$344
|
|
$290
|
|
$372
|
|
(51%)
|
|
31%
|
|
Earnings per share, diluted
|
|
|
|
|
|
|
$0.67
|
|
$1.35
|
|
$0.45
|
|
$0.38
|
|
$0.49
|
|
(50%)
|
|
37%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent net interest income of $963 million in the fourth
quarter of 2017 was down $14 million, or 1 percent from the prior
quarter, primarily due to the $27 million impact from the leveraged
lease remeasurement described on page 1. Excluding the remeasurement,
taxable equivalent net interest income of $990 million in the fourth
quarter of 2017 was up $13 million, or 1 percent from the prior quarter,
reflecting higher interest earning asset yields as well as the continued
shift into higher yielding consumer loans. The taxable equivalent net
interest margin of 3.02 percent was negatively impacted 8 bps from the
aforementioned remeasurement. The adjusted taxable equivalent net
interest margin was 3.10 percent, up 3 bps sequentially, primarily
driven by higher securities portfolio and consumer loan yields,
partially offset by an increase in funding costs associated with deposit
rate changes and the full quarter impact of an auto securitization
executed in third quarter of 2017.
Compared to the fourth quarter of 2016, taxable equivalent net interest
income was up $54 million, or 6 percent, primarily driven by higher
short-term market rates and the $16 million estimated card refund charge
during the fourth quarter of 2016, partially offset by the
aforementioned leveraged lease remeasurement. Excluding the leveraged
lease remeasurement and the estimated card refund charge, adjusted
taxable equivalent net interest income was up 7 percent. The
year-over-year increase was primarily driven by higher short-term market
rates. The taxable equivalent net interest margin increased 16 bps from
the fourth quarter of 2016, primarily driven by higher short-term market
rates and a 5 bps positive impact from the estimated card refund charge,
partially offset by a negative 8 bps impact from the leveraged lease
remeasurement. Excluding the remeasurement and card refunds impact,
adjusted taxable equivalent net interest margin was up 19 bps from the
fourth quarter of 2016. The year-over-year increase was primarily driven
by higher-short-term market rates.
Securities
Average securities and other short-term investments were $33.8 billion
in the fourth quarter of 2017 compared to $33.8 billion in the previous
quarter and $32.6 billion in the fourth quarter of 2016.
Available-for-sale securities were $31.8 billion in the fourth quarter
of 2017 up $340 million, or 1 percent, sequentially and up $637 million,
or 2 percent, from the fourth quarter of 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
|
Seq
|
|
Yr/Yr
|
|
Average Portfolio Loans and Leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
|
$41,438
|
|
|
$41,302
|
|
|
$41,601
|
|
|
$41,854
|
|
|
$42,548
|
|
|
-
|
|
(3%)
|
|
Commercial mortgage loans
|
|
|
6,751
|
|
|
6,807
|
|
|
6,845
|
|
|
6,941
|
|
|
6,957
|
|
|
(1%)
|
|
(3%)
|
|
Commercial construction loans
|
|
|
4,660
|
|
|
4,533
|
|
|
4,306
|
|
|
3,987
|
|
|
3,890
|
|
|
3%
|
|
20%
|
|
Commercial leases
|
|
|
4,016
|
|
|
4,072
|
|
|
4,036
|
|
|
3,901
|
|
|
3,921
|
|
|
(1%)
|
|
2%
|
|
Total commercial loans and leases
|
|
|
$56,865
|
|
|
$56,714
|
|
|
$56,788
|
|
|
$56,683
|
|
|
$57,316
|
|
|
-
|
|
(1%)
|
|
Consumer loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
|
$15,590
|
|
|
$15,523
|
|
|
$15,417
|
|
|
$15,200
|
|
|
$14,854
|
|
|
-
|
|
5%
|
|
Home equity
|
|
|
7,066
|
|
|
7,207
|
|
|
7,385
|
|
|
7,581
|
|
|
7,779
|
|
|
(2%)
|
|
(9%)
|
|
Automobile loans
|
|
|
9,175
|
|
|
9,267
|
|
|
9,410
|
|
|
9,786
|
|
|
10,162
|
|
|
(1%)
|
|
(10%)
|
|
Credit card
|
|
|
2,202
|
|
|
2,140
|
|
|
2,080
|
|
|
2,141
|
|
|
2,180
|
|
|
3%
|
|
1%
|
|
Other consumer loans and leases
|
|
|
1,352
|
|
|
1,055
|
|
|
892
|
|
|
755
|
|
|
673
|
|
|
28%
|
|
NM
|
|
Total consumer loans and leases
|
|
|
$35,385
|
|
|
$35,192
|
|
|
$35,184
|
|
|
$35,463
|
|
|
$35,648
|
|
|
1%
|
|
(1%)
|
|
Total average portfolio loans and leases
|
|
|
$92,250
|
|
|
$91,906
|
|
|
$91,972
|
|
|
$92,146
|
|
|
$92,964
|
|
|
-
|
|
(1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans held for sale
|
|
|
$615
|
|
|
$711
|
|
|
$681
|
|
|
$645
|
|
|
$1,017
|
|
|
(14%)
|
|
(40%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average portfolio loan and lease balances were flat sequentially and
decreased 1 percent from the fourth quarter of 2016. Sequential
performance was primarily driven by increases in commercial real estate
and other consumer loans and leases, offset by decreases in home equity
and automobile loans. The year-over-year decrease was primarily driven
by declines in commercial and industrial (C&I) and automobile loans,
partially offset by increases in commercial real estate and other
consumer loans and leases. Period end portfolio loans and leases of
$92.0 billion were flat sequentially and year-over-year.
Average commercial portfolio loan and lease balances were flat
sequentially, and decreased 1 percent from the fourth quarter of 2016.
Sequential performance was primarily driven by an increase in commercial
real estate loans, offset by a decrease in commercial leases. Average
C&I loans were flat sequentially and decreased 3 percent from the fourth
quarter of 2016. The year-over-year decline in C&I loans was primarily
due to deliberate exits from certain C&I loans that did not meet our
targeted risk or return profile. Average commercial real estate loans
increased $71 million, or 1 percent, from the prior quarter and
increased $564 million, or 5 percent, from the fourth quarter of 2016.
Period end commercial line utilization of 34 percent was flat from both
the third quarter of 2017 and the fourth quarter of 2016.
Average consumer portfolio loan and lease balances were up 1 percent
sequentially and decreased 1 percent from the fourth quarter of 2016.
The sequential increase was primarily driven by the increase in other
consumer loans and leases, partially offset by a decline in average home
equity loans. The year-over-year decrease was primarily driven by the
decline in average automobile loans which continues to reflect a
decision to reduce lower-return originations to improve returns on
capital.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Seq
|
|
Yr/Yr
|
|
Average Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
|
$35,519
|
|
|
$34,850
|
|
|
$34,915
|
|
|
$35,084
|
|
|
$36,412
|
|
|
2%
|
|
(2%)
|
|
Interest checking
|
|
|
26,992
|
|
|
25,765
|
|
|
26,014
|
|
|
26,760
|
|
|
25,644
|
|
|
5%
|
|
5%
|
|
Savings
|
|
|
13,593
|
|
|
13,889
|
|
|
14,238
|
|
|
14,117
|
|
|
13,979
|
|
|
(2%)
|
|
(3%)
|
|
Money market
|
|
|
20,023
|
|
|
20,028
|
|
|
20,278
|
|
|
20,603
|
|
|
20,476
|
|
|
-
|
|
(2%)
|
|
Foreign office(f)
|
|
|
323
|
|
|
395
|
|
|
380
|
|
|
454
|
|
|
497
|
|
|
(18%)
|
|
(35%)
|
|
Total transaction deposits
|
|
|
$96,450
|
|
|
$94,927
|
|
|
$95,825
|
|
|
$97,018
|
|
|
$97,008
|
|
|
2%
|
|
(1%)
|
|
Other time
|
|
|
3,792
|
|
|
3,722
|
|
|
3,745
|
|
|
3,827
|
|
|
3,941
|
|
|
2%
|
|
(4%)
|
|
Total core deposits
|
|
|
$100,242
|
|
|
$98,649
|
|
|
$99,570
|
|
|
$100,845
|
|
|
$100,949
|
|
|
2%
|
|
(1%)
|
|
Certificates - $100,000 and over
|
|
|
2,429
|
|
|
2,625
|
|
|
2,623
|
|
|
2,579
|
|
|
2,539
|
|
|
(7%)
|
|
(4%)
|
|
Other
|
|
|
119
|
|
|
560
|
|
|
264
|
|
|
162
|
|
|
115
|
|
|
(79%)
|
|
3%
|
|
Total average deposits
|
|
|
$102,790
|
|
|
$101,834
|
|
|
$102,457
|
|
|
$103,586
|
|
|
$103,603
|
|
|
1%
|
|
(1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average core deposits increased 2 percent sequentially and decreased 1
percent from the fourth quarter of 2016. Average transaction deposits
increased 2 percent sequentially and decreased 1 percent from the fourth
quarter of 2016. The sequential increase was primarily driven by
increases in commercial interest checking deposit and commercial demand
deposit account balances, partially offset by lower consumer savings and
commercial money market account balances. Year-over-year performance was
primarily driven by lower commercial money market and commercial demand
deposit account balances, largely offset by higher consumer money market
and commercial interest checking deposit account balances. Other time
deposits increased by 2 percent sequentially and decreased 4 percent
year-over-year.
Average total commercial transaction deposits of $43 billion increased 4
percent sequentially and decreased 4 percent from the fourth quarter of
2016. Average total consumer transaction deposits of $53 billion were
flat sequentially and increased 3 percent from the fourth quarter of
2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Funding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Seq
|
|
Yr/Yr
|
|
Average Wholesale Funding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates - $100,000 and over
|
|
|
$2,429
|
|
|
$2,625
|
|
|
$2,623
|
|
|
$2,579
|
|
|
$2,539
|
|
|
(7%)
|
|
(4%)
|
|
Other deposits
|
|
|
119
|
|
|
560
|
|
|
264
|
|
|
162
|
|
|
115
|
|
|
(79%)
|
|
3%
|
|
Federal funds purchased
|
|
|
602
|
|
|
675
|
|
|
311
|
|
|
639
|
|
|
280
|
|
|
(11%)
|
|
NM
|
|
Other short-term borrowings
|
|
|
2,316
|
|
|
4,212
|
|
|
4,194
|
|
|
1,893
|
|
|
1,908
|
|
|
(45%)
|
|
21%
|
|
Long-term debt
|
|
|
14,631
|
|
|
13,457
|
|
|
13,273
|
|
|
13,856
|
|
|
15,173
|
|
|
9%
|
|
(4%)
|
|
Total average wholesale funding
|
|
|
$20,097
|
|
|
$21,529
|
|
|
$20,665
|
|
|
$19,129
|
|
|
$20,015
|
|
|
(7%)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average wholesale funding of $20.1 billion decreased $1.4 billion, or 7
percent, sequentially and was flat compared with the fourth quarter of
2016. The sequential decline was primarily due to a decrease in other
short-term borrowings reflecting higher core deposit balances, partially
offset by an increase in long-term debt from 3-year bank debt issued in
October of 2017. The year-over-year results reflect an increase in other
short-term borrowings, largely offset by a decrease in long-term debt.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits
|
|
|
$138
|
|
$138
|
|
$139
|
|
$138
|
|
$141
|
|
-
|
|
(2%)
|
|
Corporate banking revenue
|
|
|
77
|
|
101
|
|
101
|
|
74
|
|
101
|
|
(24%)
|
|
(24%)
|
|
Mortgage banking net revenue
|
|
|
54
|
|
63
|
|
55
|
|
52
|
|
65
|
|
(14%)
|
|
(17%)
|
|
Wealth and asset management revenue
|
|
|
106
|
|
102
|
|
103
|
|
108
|
|
100
|
|
4%
|
|
6%
|
|
Card and processing revenue
|
|
|
80
|
|
79
|
|
79
|
|
74
|
|
79
|
|
1%
|
|
1%
|
|
Other noninterest income
|
|
|
123
|
|
1,076
|
|
85
|
|
77
|
|
137
|
|
(89%)
|
|
(10%)
|
|
Securities gains (losses), net
|
|
|
1
|
|
-
|
|
-
|
|
-
|
|
(3)
|
|
NM
|
|
NM
|
|
Securities gains (losses), net - non-qualifying
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
hedges on mortgage servicing rights
|
|
|
(2)
|
|
2
|
|
2
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
Total noninterest income
|
|
|
$577
|
|
$1,561
|
|
$564
|
|
$523
|
|
$620
|
|
(63%)
|
|
(7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income of $577 million decreased $984 million sequentially
and decreased $43 million compared with prior year results. The
sequential and year-over-year comparisons reflect the impact of the
following items.
|
|
|
Noninterest Income excluding certain items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
|
December
|
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
|
2016
|
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Income excluding certain items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (U.S. GAAP)
|
|
|
$577
|
|
|
$1,561
|
|
|
$620
|
|
|
|
|
|
|
Valuation of Visa total return swap
|
|
|
11
|
|
|
47
|
|
|
(6)
|
|
|
|
|
|
|
Gain on sale of Vantiv shares
|
|
|
-
|
|
|
(1,037)
|
|
|
-
|
|
|
|
|
|
|
Vantiv warrant valuation
|
|
|
-
|
|
|
-
|
|
|
(9)
|
|
|
|
|
|
|
Securities (gains) / losses
|
|
|
(1)
|
|
|
-
|
|
|
3
|
|
|
|
|
|
|
Noninterest income excluding certain items(d)
|
|
|
$587
|
|
|
$571
|
|
|
$608
|
|
|
3%
|
|
(3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding the items in the table above, noninterest income of $587
million was up 3 percent from the previous quarter and decreased 3
percent from the fourth quarter of 2016. The sequential increase was
primarily due to $44 million in revenue recognized from Vantiv related
to the tax receivable agreement in the fourth quarter of 2017, and an
increase in wealth and asset management revenue. This was partially
offset by declines in corporate banking and mortgage banking revenue.
Corporate banking revenue was negatively impacted by a $25 million lease
remarketing impairment in the fourth quarter of 2017. The year-over-year
decrease was driven by lower corporate banking and mortgage banking
revenue.
Corporate banking revenue of $77 million was down 24 percent both
sequentially and year-over-year. The sequential and year-over-year
decreases were primarily driven by the aforementioned lease remarketing
impairment. Excluding the impact of the lease impairment, corporate
banking revenue was flat sequentially and year-over-year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Banking Net Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Seq
|
|
Yr/Yr
|
|
Mortgage Banking Net Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination fees and gains on loan sales
|
|
|
$32
|
|
$40
|
|
$37
|
|
$29
|
|
$30
|
|
(20%)
|
|
7%
|
|
Net mortgage servicing revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross mortgage servicing fees
|
|
|
54
|
|
56
|
|
49
|
|
47
|
|
48
|
|
(4%)
|
|
13%
|
|
MSR amortization
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(35)
|
|
NM
|
|
NM
|
|
Net valuation adjustments on MSRs and
|
|
|
(32)
|
|
(33)
|
|
(31)
|
|
(24)
|
|
22
|
|
(3%)
|
|
NM
|
|
free-standing derivatives purchased to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
economically hedge MSRs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net mortgage servicing revenue
|
|
|
22
|
|
23
|
|
18
|
|
23
|
|
35
|
|
(4%)
|
|
(37%)
|
|
Total mortgage banking net revenue
|
|
|
$54
|
|
$63
|
|
$55
|
|
$52
|
|
$65
|
|
(14%)
|
|
(17%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking net revenue was $54 million in the fourth quarter of
2017, down $9 million from the third quarter of 2017 and down $11
million from the fourth quarter of 2016. The sequential decrease was
driven by lower origination fees and gains on loan sales. The
year-over-year decrease was driven by a reduction in net valuation
adjustments (including MSR amortization) of $19 million. Originations of
$1.9 billion in the current quarter decreased 10 percent sequentially
and decreased 30 percent from the fourth quarter of 2016.
Wealth and asset management revenue of $106 million increased 4 percent
from the third quarter of 2017 and increased 6 percent from the fourth
quarter of 2016. The sequential and year-over-year increase was
primarily driven by higher personal asset management revenue.
Card and processing revenue of $80 million in the fourth quarter of 2017
was up 1 percent both sequentially and year-over-year. The sequential
and year-over-year performance reflected increased credit card spend
volume, largely offset by higher rewards.
Other noninterest income totaled $123 million in the fourth quarter of
2017, compared with $1.076 billion in the previous quarter and $137
million in the fourth quarter of 2016. The reported results included
Vantiv-related transactions and adjustments and the valuation of the
Visa total return swap in the table on page 8. For the fourth quarter of
2017, excluding these items, other noninterest income of $134 million
increased approximately $48 million, or 56 percent, from the third
quarter of 2017 and increased $12 million, or 10 percent, from the
fourth quarter of 2016. The sequential increase was primarily due to the
$44 million in revenue recognized from Vantiv related to the tax
receivable agreement in the fourth quarter of 2017. The year-over-year
increase was due to an $11 million increase in the aforementioned tax
receivable agreement.
Net gains on investment securities were $1 million in the fourth quarter
of 2017, compared with no gains or losses in the third quarter of 2017
and a $3 million net loss in the fourth quarter of 2016. Net
gains/losses on securities held as non-qualifying hedges for the MSR
portfolio were net losses of $2 million in the fourth quarter of 2017
and net gains of $2 million in the third quarter of 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
|
June
|
|
|
March
|
|
|
December
|
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and incentives
|
|
|
$418
|
|
|
$407
|
|
|
$397
|
|
|
$411
|
|
|
$403
|
|
|
3%
|
|
4%
|
|
Employee benefits
|
|
|
82
|
|
|
77
|
|
|
86
|
|
|
111
|
|
|
76
|
|
|
6%
|
|
8%
|
|
Net occupancy expense
|
|
|
74
|
|
|
74
|
|
|
70
|
|
|
78
|
|
|
73
|
|
|
-
|
|
1%
|
|
Technology and communications
|
|
|
68
|
|
|
62
|
|
|
57
|
|
|
58
|
|
|
56
|
|
|
10%
|
|
21%
|
|
Equipment expense
|
|
|
29
|
|
|
30
|
|
|
29
|
|
|
28
|
|
|
29
|
|
|
(3%)
|
|
-
|
|
Card and processing expense
|
|
|
34
|
|
|
32
|
|
|
33
|
|
|
30
|
|
|
31
|
|
|
6%
|
|
10%
|
|
Other noninterest expense
|
|
|
368
|
|
|
293
|
|
|
285
|
|
|
270
|
|
|
292
|
|
|
26%
|
|
26%
|
|
Total noninterest expense
|
|
|
$1,073
|
|
|
$975
|
|
|
$957
|
|
|
$986
|
|
|
$960
|
|
|
10%
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense of $1.073 billion increased $98 million, or 10
percent, compared with the third quarter of 2017, and increased $113
million, or 12 percent, compared with the fourth quarter of 2016.
Results reflected the affordable housing impairment, one-time employee
bonuses, and the Fifth Third Foundation contribution referenced on page
2. Excluding these items, noninterest expense of $975 million was flat
compared with the third quarter of 2017, impacted by lower other
noninterest expense and salaries, wages and incentives, offset by higher
employee benefits and technology and communications expense. Excluding
the aforementioned items, noninterest expense increased 2 percent
compared to the fourth quarter of 2016, impacted by higher employee
benefits and technology and communications expense, offset by lower
other noninterest expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Credit Loss Experience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
For the Three Months Ended
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Net losses charged-off
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
|
($32)
|
|
|
($27)
|
|
|
($18)
|
|
|
($36)
|
|
|
($25)
|
|
Commercial mortgage loans
|
|
|
1
|
|
|
(3)
|
|
|
(5)
|
|
|
(5)
|
|
|
(2)
|
|
Commercial leases
|
|
|
(1)
|
|
|
-
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
Residential mortgage loans
|
|
|
(1)
|
|
|
1
|
|
|
(2)
|
|
|
(5)
|
|
|
(2)
|
|
Home equity
|
|
|
(4)
|
|
|
(3)
|
|
|
(5)
|
|
|
(6)
|
|
|
(6)
|
|
Automobile loans
|
|
|
(10)
|
|
|
(8)
|
|
|
(6)
|
|
|
(11)
|
|
|
(11)
|
|
Credit card
|
|
|
(20)
|
|
|
(20)
|
|
|
(22)
|
|
|
(22)
|
|
|
(19)
|
|
Other consumer loans and leases
|
|
|
(9)
|
|
|
(8)
|
|
|
(5)
|
|
|
(3)
|
|
|
(7)
|
|
Total net losses charged-off
|
|
|
($76)
|
|
|
($68)
|
|
|
($64)
|
|
|
($89)
|
|
|
($73)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses charged-off
|
|
|
($94)
|
|
|
($85)
|
|
|
($95)
|
|
|
($107)
|
|
|
($97)
|
|
Total recoveries of losses previously charged-off
|
|
|
18
|
|
|
17
|
|
|
31
|
|
|
18
|
|
|
24
|
|
Total net losses charged-off
|
|
|
($76)
|
|
|
($68)
|
|
|
($64)
|
|
|
($89)
|
|
|
($73)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses charged-off as a percent of average portfolio loans and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
leases (excluding held for sale)
|
|
|
0.33%
|
|
|
0.29%
|
|
|
0.28%
|
|
|
0.40%
|
|
|
0.31%
|
|
Commercial
|
|
|
0.22%
|
|
|
0.21%
|
|
|
0.17%
|
|
|
0.29%
|
|
|
0.20%
|
|
Consumer
|
|
|
0.51%
|
|
|
0.43%
|
|
|
0.46%
|
|
|
0.56%
|
|
|
0.49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs were $76 million, or 33 bps of average portfolio loans
and leases on an annualized basis, in the fourth quarter of 2017
compared with net charge-offs of $68 million, or 29 bps, in the third
quarter of 2017 and $73 million, or 31 bps, in the fourth quarter of
2016.
Commercial net charge-offs of $32 million, or 22 bps, increased $2
million sequentially. This primarily reflected a $5 million increase in
net charge-offs of C&I loans, partially offset by a $4 million reduction
in net charge-offs of commercial mortgage loans.
Consumer net charge-offs of $44 million, or 51 bps, increased $6 million
sequentially. This primarily reflected a $2 million increase in net
charge-offs on residential mortgage loans and the automobile loans.
|
|
|
|
|
|
($ in millions)
|
|
|
For the Three Months Ended
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Allowance for Credit Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses, beginning
|
|
|
$1,205
|
|
|
$1,226
|
|
|
$1,238
|
|
|
$1,253
|
|
|
$1,272
|
|
Total net losses charged-off
|
|
|
(76)
|
|
|
(68)
|
|
|
(64)
|
|
|
(89)
|
|
|
(73)
|
|
Provision for loan and lease losses
|
|
|
67
|
|
|
67
|
|
|
52
|
|
|
74
|
|
|
54
|
|
Deconsolidation of a variable interest entity
|
|
|
-
|
|
|
(20)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Allowance for loan and lease losses, ending
|
|
|
$1,196
|
|
|
$1,205
|
|
|
$1,226
|
|
|
$1,238
|
|
|
$1,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded commitments, beginning
|
|
|
$157
|
|
|
$162
|
|
|
$159
|
|
|
$161
|
|
|
$162
|
|
Provision for unfunded commitments
|
|
|
4
|
|
|
(5)
|
|
|
3
|
|
|
(2)
|
|
|
(1)
|
|
Reserve for unfunded commitments, ending
|
|
|
$161
|
|
|
$157
|
|
|
$162
|
|
|
$159
|
|
|
$161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
|
|
$1,196
|
|
|
$1,205
|
|
|
$1,226
|
|
|
$1,238
|
|
|
$1,253
|
|
Reserve for unfunded commitments
|
|
|
161
|
|
|
157
|
|
|
162
|
|
|
159
|
|
|
161
|
|
Total allowance for credit losses
|
|
|
$1,357
|
|
|
$1,362
|
|
|
$1,388
|
|
|
$1,397
|
|
|
$1,414
|
|
Allowance for loan and lease losses ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of portfolio loans and leases
|
|
|
1.30%
|
|
|
1.31%
|
|
|
1.34%
|
|
|
1.35%
|
|
|
1.36%
|
|
As a percent of nonperforming portfolio loans and leases(g)
|
|
|
274%
|
|
|
238%
|
|
|
200%
|
|
|
188%
|
|
|
190%
|
|
As a percent of nonperforming portfolio assets(g)
|
|
|
245%
|
|
|
217%
|
|
|
185%
|
|
|
172%
|
|
|
170%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The provision for loan and lease losses totaled $67 million in the
fourth quarter of 2017, flat sequentially, reflecting improvement in
criticized assets and nonperforming loans, offset by an increase in net
charge-offs and higher period-end portfolio loan balances. Provision
expense increased $13 million from the fourth quarter of 2016.
As of quarter end, the allowance for loan and lease loss ratio
represented 1.30 percent of total portfolio loans and leases
outstanding, compared with 1.31 percent last quarter, and represented
274 percent of nonperforming loans and leases, and 245 percent of
nonperforming assets.
|
|
|
|
|
|
($ in millions)
|
|
|
As of
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
Nonperforming Assets and Delinquent Loans
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Nonaccrual portfolio loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
|
$144
|
|
$144
|
|
$225
|
|
$251
|
|
$302
|
|
Commercial mortgage loans
|
|
|
12
|
|
14
|
|
15
|
|
21
|
|
27
|
|
Commercial leases
|
|
|
-
|
|
1
|
|
1
|
|
-
|
|
2
|
|
Residential mortgage loans
|
|
|
17
|
|
19
|
|
19
|
|
21
|
|
17
|
|
Home equity
|
|
|
56
|
|
56
|
|
52
|
|
53
|
|
55
|
|
Total nonaccrual portfolio loans and leases (excludes restructured
loans)
|
|
|
$229
|
|
$234
|
|
$312
|
|
$346
|
|
$403
|
|
Nonaccrual restructured portfolio commercial loans and leases(h)
|
|
|
150
|
|
214
|
|
244
|
|
251
|
|
192
|
|
Nonaccrual restructured portfolio consumer loans and leases
|
|
|
58
|
|
58
|
|
58
|
|
60
|
|
65
|
|
Total nonaccrual portfolio loans and leases
|
|
|
$437
|
|
$506
|
|
$614
|
|
$657
|
|
$660
|
|
Repossessed property
|
|
|
9
|
|
10
|
|
11
|
|
14
|
|
15
|
|
OREO
|
|
|
43
|
|
39i
|
|
37i
|
|
50i
|
|
63i
|
|
Total nonperforming portfolio assets(g)
|
|
|
$489
|
|
$555
|
|
$662
|
|
$721
|
|
$738
|
|
Nonaccrual loans held for sale
|
|
|
5
|
|
18
|
|
7
|
|
7
|
|
4
|
|
Nonaccrual restructured loans held for sale
|
|
|
1
|
|
2
|
|
1
|
|
2
|
|
9
|
|
Total nonperforming assets
|
|
|
$495
|
|
$575
|
|
$670
|
|
$730
|
|
$751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured portfolio consumer loans and leases (accrual)
|
|
|
$927
|
|
$929
|
|
$933
|
|
$950
|
|
$959
|
|
Restructured portfolio commercial loans and leases (accrual)(h)
|
|
|
$249
|
|
$232
|
|
$224
|
|
$277
|
|
$321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases 30-89 days past due (accrual)
|
|
|
$280
|
|
$252
|
|
$190
|
|
$180
|
|
$231
|
|
Total loans and leases 90 days past due (accrual)
|
|
|
$97
|
|
$77
|
|
$75
|
|
$75
|
|
$84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming portfolio loans and leases as a percent of portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
loans and leases and OREO(g)
|
|
|
0.48%
|
|
0.55%
|
|
0.67%
|
|
0.72%
|
|
0.72%
|
|
Nonperforming portfolio assets as a percent of portfolio loans and
|
|
|
|
|
|
|
|
|
|
|
|
|
leases and OREO(g)
|
|
|
0.53%
|
|
0.60%
|
|
0.72%
|
|
0.79%
|
|
0.80%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming portfolio assets decreased $66 million, or 12
percent, from the previous quarter to $489 million. Portfolio
nonperforming loans and leases (NPLs) at quarter-end decreased $69
million from the previous quarter to $437 million. NPLs as a percent of
total loans, leases and OREO at quarter end decreased 7 bps from the
previous quarter to 0.48 percent.
Commercial portfolio NPLs decreased $67 million from last quarter to
$306 million, or 0.54 percent of commercial portfolio loans, leases and
OREO. Consumer portfolio NPLs decreased $2 million from last quarter to
$131 million, or 0.37 percent of consumer portfolio loans, leases and
OREO.
OREO balances increased $4 million from the prior quarter to $43
million, and included $18 million in commercial OREO and $25 million in
consumer OREO. Repossessed personal property decreased $1 million from
the prior quarter to $9 million.
Loans over 90 days past due and still accruing increased $20 million
from the third quarter of 2017 at $97 million. Loans 30-89 days past due
of $280 million increased $28 million from the previous quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and Liquidity Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
Capital Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total Bancorp shareholders' equity to average assets
|
|
|
11.69%
|
|
|
11.93%
|
|
|
11.84%
|
|
11.72%
|
|
|
11.66%
|
|
Tangible equity(d)
|
|
|
9.90%
|
|
|
9.84%
|
|
|
9.98%
|
|
10.12%
|
|
|
9.82%
|
|
Tangible common equity (excluding unrealized gains/losses)(d)
|
|
|
8.94%
|
|
|
8.89%
|
|
|
9.02%
|
|
9.15%
|
|
|
8.87%
|
|
Tangible common equity (including unrealized gains/losses)(d)
|
|
|
8.99%
|
|
|
9.00%
|
|
|
9.12%
|
|
9.20%
|
|
|
8.91%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital and Liquidity Ratios
|
|
|
|
|
CET1 capital(e)
|
|
|
10.61%
|
|
|
10.59%
|
|
|
10.63%
|
|
10.76%
|
|
|
10.39%
|
|
Tier I risk-based capital(e)
|
|
|
11.74%
|
|
|
11.72%
|
|
|
11.76%
|
|
11.90%
|
|
|
11.50%
|
|
Total risk-based capital(e)
|
|
|
15.16%
|
|
|
15.16%
|
|
|
15.22%
|
|
15.45%
|
|
|
15.02%
|
|
Tier I leverage
|
|
|
10.01%
|
|
|
9.97%
|
|
|
10.07%
|
|
10.15%
|
|
|
9.90%
|
|
Modified liquidity coverage ratio (LCR)(i)
|
|
|
129%
|
|
|
124%
|
|
|
115%
|
|
119%
|
|
|
128%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios remained strong during the quarter. The CET1 ratio was
10.61 percent, the tangible common equity to tangible assets ratio(d)
was 8.94 percent (excluding unrealized gains/losses), and 8.99 percent
(including unrealized gains/losses). The Tier I risk-based capital ratio
was 11.74 percent, the Total risk-based capital ratio was 15.16 percent,
and the Tier I leverage ratio was 10.01 percent.
Fifth Third entered into or completed multiple share repurchases during
the quarter. Below is a summary of those share repurchases.
-
On December 18, 2017, Fifth Third settled the forward contract related
to the August 15, 2017 $990 million share repurchase agreement. An
additional 4.3 million shares were repurchased in connection with the
completion of this agreement.
-
On December 19, 2017, Fifth Third initially settled a share repurchase
agreement whereby Fifth Third would purchase $273 million of its
outstanding stock. This reduced fourth quarter common shares
outstanding by 7.7 million shares. Settlement of the forward contract
related to this agreement is expected to occur on or before March 19,
2018.
In total, common shares outstanding decreased by approximately 11.7
million shares in the fourth quarter of 2017 from the third quarter of
2017.
Tax Rate
An income tax benefit was recognized in the fourth quarter of 2017. This
was a result of the new tax legislation and was primarily due to the
remeasurement of deferred tax liabilities at the lower statutory rate.
The benefit was partially offset by a tax expense related to a gain on
the sale of Vantiv shares sold in the prior quarter. The prior quarter’s
tax rate was also impacted by the aforementioned gain on the sale of
Vantiv shares. On a full year basis, the 2017 effective rate was 20.8
percent compared with 24.4 percent for the full year of 2016.
Other
As of December 31, 2017, Fifth Third Bank owned approximately 15 million
units representing an 8.6 percent interest in Vantiv Holding, LLC,
convertible into shares of Vantiv, Inc., a publicly traded firm. Based
upon Vantiv’s closing price of $73.55 on December 31, 2017, our interest
in Vantiv was valued at approximately $1.1 billion. The difference
between the market value and the book value of Fifth Third’s interest in
Vantiv’s shares is not recognized in Fifth Third’s equity or capital.
Conference Call
Fifth Third will host a conference call to discuss these financial
results at 9:00 a.m. (Eastern Time) today. This conference call will be
webcast live and may be accessed through the Fifth Third Investor
Relations website at www.53.com
(click on “About Us” then “Investor Relations”).
Those unable to listen to the live webcast may access a webcast replay
through the Fifth Third Investor Relations website at the same web
address. Additionally, a telephone replay of the conference call will be
available after the conference call until approximately February 6, 2018
by dialing 800-585-8367 for domestic access or 404-537-3406 for
international access (passcode 8195768#).
Corporate Profile
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of December 31, 2017, the Company
had $142 billion in assets and operates 1,154 full-service Banking
Centers, and 2,469 Fifth Third branded ATMs in Ohio, Kentucky, Indiana,
Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North
Carolina. In total, Fifth Third provides its customers with access to
more than 54,000 fee-free ATMs across the United States. Fifth Third
operates four main businesses: Commercial Banking, Branch Banking,
Consumer Lending, and Wealth & Asset Management. As of December 31,
2017, Fifth Third also had an 8.6% interest in Vantiv Holding, LLC.
Fifth Third is among the largest money managers in the Midwest and, as
of December 31, 2017, had $362 billion in assets under care, of which it
managed $37 billion for individuals, corporations and not-for-profit
organizations through its Trust and Registered Investment Advisory
businesses. Investor
information and press
releases can be viewed at www.53.com.
Fifth Third’s common stock is traded on the NASDAQ® Global Select Market
under the symbol “FITB.”
Earnings Release End Notes
|
(a)
|
|
Certain tax legislation amounts are considered reasonable
estimates as of December 31, 2017. As a result, the amounts could
be adjusted during the measurement period, which will end in
December 2018.
|
|
|
|
|
|
(b)
|
|
Assumes a 35% tax rate.
|
|
|
|
|
|
(c)
|
|
On January 16, 2018, Vantiv, Inc. changed its name to Worldpay,
Inc. and completed the previously announced acquisition of
Worldpay Group Limited, formerly Worldpay Group plc.
|
|
|
|
|
|
(d)
|
|
Non-GAAP measure; see discussion of non-GAAP and Reg. G
reconciliation beginning on page 30 in Exhibit 99.1 of 8-K filing
dated 1/23/2018.
|
|
|
|
|
|
(e)
|
|
Under the banking agencies' Basel III Final Rule, assets and
credit equivalent amounts of off-balance sheet exposures are
calculated according to the standardized approach for
risk-weighted assets. The resulting weighted values are added
together resulting in the total risk-weighted assets. Under the
banking agencies’ Final Rule published in November 2017 pertaining
to certain regulatory capital items for banks subject to the
standardized approach, the Bancorp is no longer subject to certain
transition provisions and phase-outs beyond 2017. Current period
regulatory capital ratios are estimated.
|
|
|
|
|
|
(f)
|
|
Includes commercial customer Eurodollar sweep balances for
which the Bancorp pays rates comparable to other commercial
deposit accounts.
|
|
|
|
|
|
(g)
|
|
Excludes nonaccrual loans held for sale.
|
|
|
|
|
|
(h)
|
|
As of June 30, 2017, March 31, 2017 and December 31, 2016,
excludes $7 million of restructured accruing loans and $19 million
of restructured nonaccrual loans associated with a consolidated
VIE in which the Bancorp has no continuing credit risk due to the
risk being assumed by a third party.
|
|
|
|
|
|
(i)
|
|
The Bancorp became subject to the Modified LCR regulations
effective January 1, 2016. Current period LCR is estimated.
|
|
|
|
|
FORWARD-LOOKING STATEMENTS
This release contains statements that we believe are “forward-looking
statements” within the meaning of Section 27A of the Securities Act of
1933, as amended, and Rule 175 promulgated thereunder, and Section 21E
of the Securities Exchange Act of 1934, as amended, and Rule 3b-6
promulgated thereunder. These statements relate to our financial
condition, results of operations, plans, objectives, future performance
or business. They usually can be identified by the use of
forward-looking language such as “will likely result,” “may,” “are
expected to,” “anticipates,” “potential,” “estimate,” “forecast,”
“projected,” “intends to,” or may include other similar words or phrases
such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,”
or similar expressions, or future or conditional verbs such as “will,”
“would,” “should,” “could,” “might,” “can,” or similar verbs. You should
not place undue reliance on these statements, as they are subject to
risks and uncertainties, including but not limited to the risk factors
set forth in our most recent Annual Report on Form 10-K as updated from
time to time by our Quarterly Reports on Form 10-Q. When considering
these forward-looking statements, you should keep in mind these risks
and uncertainties, as well as any cautionary statements we may make.
Moreover, you should treat these statements as speaking only as of the
date they are made and based only on information then actually known to
us. There is a risk that additional information may become known during
the company’s quarterly closing process or as a result of subsequent
events that could affect the accuracy of the statements and financial
information contained herein.
There are a number of important factors that could cause future
results to differ materially from historical performance and these
forward-looking statements. Factors that might cause such a difference
include, but are not limited to: (1) general economic or real estate
market conditions, either nationally or in the states in which Fifth
Third, one or more acquired entities and/or the combined company do
business, weaken or are less favorable than expected; (2) deteriorating
credit quality; (3) political developments, wars or other hostilities
may disrupt or increase volatility in securities markets or other
economic conditions; (4) changes in the interest rate environment reduce
interest margins; (5) prepayment speeds, loan origination and sale
volumes, charge-offs and loan loss provisions; (6) Fifth Third’s ability
to maintain required capital levels and adequate sources of funding and
liquidity; (7) maintaining capital requirements and adequate sources of
funding and liquidity may limit Fifth Third’s operations and potential
growth; (8) changes and trends in capital markets; (9) problems
encountered by larger or similar financial institutions may adversely
affect the banking industry and/or Fifth Third; (10) competitive
pressures among depository institutions increase significantly; (11)
changes in customer preferences or information technology systems; (12)
effects of critical accounting policies and judgments; (13) changes in
accounting policies or procedures as may be required by the Financial
Accounting Standards Board (FASB) or other regulatory agencies; (14)
legislative or regulatory changes or actions, or significant litigation,
adversely affect Fifth Third, one or more acquired entities and/or the
combined company or the businesses in which Fifth Third, one or more
acquired entities and/or the combined company are engaged, including the
Dodd-Frank Wall Street Reform and Consumer Protection Act; (15) ability
to maintain favorable ratings from rating agencies; (16) failure of
models or risk management systems or controls; (17) fluctuation of Fifth
Third’s stock price; (18) ability to attract and retain key personnel;
(19) ability to receive dividends from its subsidiaries; (20)
potentially dilutive effect of future acquisitions on current
shareholders’ ownership of Fifth Third; (21) declines in the value of
Fifth Third’s goodwill or other intangible assets; (22) effects of
accounting or financial results of one or more acquired entities; (23)
loss of income from any sale or potential sale of businesses (24)
difficulties in separating the operations of any branches or other
assets divested; (25) losses or adverse impacts on the carrying values
of branches and long-lived assets in connection with their sales or
anticipated sales; (26) inability to achieve expected benefits from
branch consolidations and planned sales within desired timeframes, if at
all; (27) ability to secure confidential information and deliver
products and services through the use of computer systems and
telecommunications networks; (28) the acquisition of Worldpay Group
Limited, formerly Worldpay Group plc. by Worldpay, Inc., formerly
Vantiv, Inc.; and(29)difficulties from Fifth Third’s investment in,
relationship with, and nature of operations of Worldpay, Inc. and (30)
the impact of reputational risk created by these developments on such
matters as business generation and retention, funding and liquidity. You
should refer to our periodic and current reports filed with the
Securities and Exchange Commission, or “SEC,” for further information on
other factors, which could cause actual results to be significantly
different from those expressed or implied by these forward-looking
statements.
In this release, we may sometimes provide non-GAAP financial
information. Please note that although non-GAAP financial measures
provide useful insight to analysts, investors and regulators, they
should not be considered in isolation or relied upon as a substitute for
analysis using GAAP measures. We provide a discussion of these non-GAAP
measures and reconciliation to the most directly comparable GAAP
measures beginning on page 31 in Exhibit 99.1 of 8-K filing dated
1/23/2018.
Fifth Third Bancorp
Investors
Sameer Gokhale, 513-534-2219
or
Media
Katrina Booker, 513-534-6858