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Fifth Third’s Vantiv Share Sale to Result in $140 Million Gain

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Dec. 7 (Bloomberg) -- Fifth Third Bancorp, Ohio’s largest lender, said a sale of part of its Vantiv Inc. stake will result in a $140 million pretax gain in the fourth quarter.

The pricing and sale of 12.5 million shares, or about 15 percent of the bank’s ownership stake, will result in a $91 million gain after tax, the Cincinnati-based company said today in a statement. Fifth Third will also book a $135 million pretax charge by prepaying $1 billion of term debt scheduled to mature on Jan. 5, 2016, according to the statement. That will contribute about $40 million to $45 million to net interest income annually, or about four basis points to the net interest margin, according to the statement.

Fifth Third said earlier this year it would use the after-tax proceeds of its Vantiv stake sale to repurchase its own shares, a plan that was not opposed by the Federal Reserve during the lender’s capital stress tests.

To contact the reporter on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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