Fifth Third Profit Increases on Lending Growth and Vantiv GainErika Waddell
Fifth Third Bancorp, Ohio’s largest lender, said second-quarter profit rose 58 percent as lending and fee income grew and the bank posted a gain from selling a stake in Vantiv Inc.
Net income climbed to $594 million, or 66 cents a share, from $376 million, or 40 cents, a year earlier, the Cincinnati-based bank said today in a statement. The average estimate of 26 analysts surveyed by Bloomberg was 42 cents a share.
“Nearly all fee income categories increased quarter-over-quarter, highlighted by mortgage banking net revenue and corporate banking,” Chief Executive Officer Kevin Kabat, 56, said in the statement. “Credit trends continued to improve.”
The bank incurred a gain of $242 million on the sale of its shares in Vantiv, a payment processor, and a $76 million benefit from the valuation of a Vantiv warrant. Fifth Third raised its quarterly dividend last month 9 percent to 12 cents a share. The bank’s stock has gained 25 percent this year, compared with the 26 percent advance of the 24-company KBW Bank Index.