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Fifth Third (FITB) Q4 Earnings Beat on Lower Provisions

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Have you been eager to see how Fifth Third Bancorp (FITB - Free Report) performed in Q4 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 earnings per share of 48 cents (excluding certain one-time items), beating the Zacks Consensus Estimate of 43 cents. Results were aided by slightly lower expenses and reduced provisions.

Including one-time items, earnings per share would have been 49 cents, down 38% 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 43 cents over the last 7 days.

Notably, Fifth Third has a decent earnings surprise history. Before posting earnings beat in Q4, 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 18.9% in the trailing four quarters.
 

Revenue Came In As Expected

Fifth Third posted revenues of $1.53 billion, in line with the Zacks Consensus Estimate. Revenues were down 23.9% year over year.

Key Stats:

  • Net income available to common shareholders decreased 41% year over year to $372 million.
  • Provision for loan and lease losses decreased 41% year over year to $54 million.
  • Return on average assets decreased to 1.11% in the fourth-quarter 2016 from 1.83% 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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