Fifth Third Bancorp (FITB), the largest lender based in Ohio, said the Federal Reserve didn’t object to its capital plan, which includes a 25 percent increase in the quarterly dividend and share buyback.
The stock repurchase could be as much as 100 million shares, the Cincinnati-based company said today in a statement. Fifth Third’s plan included potential share buybacks of as much as $600 million through the first quarter of next year, according to the statement. The payout could increase to 10 cents a share this quarter from 8 cents, Fifth Third said.
Fifth Third said in March that the Fed objected to its proposed dividend increase and some common share buybacks. The government didn’t object at the time to its redemption of as much as $1.4 billion in certain trust-preferred securities.
“We believe our plan for capital management and retention is a balanced and prudent one,” Chief Executive Officer Kevin Kabat, 55, said in the statement.
Fifth Third gained 2.6 percent to $14.77 at 4:29 p.m. in extended trading in New York. The shares increased 13 percent this year through the close of regular trading, compared with a 21 percent advance in the 24-company KBW Bank Index.
To contact the reporter on this story: Laura Marcinek in New York at firstname.lastname@example.org
To contact the editor responsible for this story: David Scheer at email@example.com