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Fifth Third Bancorp to Redeem its 1.35% Fixed Senior Notes
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Fifth Third Bancorp (FITB - Free Report) announced the redemption of all its outstanding 1.35% fixed rate senior notes due Jun 1, 2017. The notes, to be redeemed on May 2, 2017, had a principal amount of $650 million.
Fifth Third Bancorp stated that the total amount to be paid on redemption would be equal to the principal amount of the notes outstanding, plus accrued and unpaid interest thereof (excluding the redemption date).
The company had $2.39 billion in cash and due from banks as of Dec 31, 2016 and total assets worth $142.18 billion. The company’s liquidity position reflects its ability to easily pay off the debt.
The company’s strategic initiatives to improve revenues make it well positioned for future growth. Moreover, it has an efficient capital deployment strategy in place.
Though the company witnessed a year-over-year rise in expenses in 2016, its fourth-quarter 2016 non-interest expenses totaled $960 million, slightly lower than the previous-year quarter figure.
The latest debt redemption should help in reducing expenses in the near term.
In Sep 2016, Fifth Third launched Project North Star, which laid down several long-term financial targets without expecting any improvement in the present economic conditions. The initiatives are expected to enhance revenue growth, lower expenses and optimize balance sheet position.
Further, the company is of the opinion that excluding the implementation charges related to Project North Star, overall expenses will decrease 0.5% in 2017. Also, it expects to generate positive operating leverage in the upcoming years.
Some prominent stocks in the finance space are Bank of America Corporation (BAC - Free Report) , The PNC Financial Services Group, Inc. (PNC - Free Report) and U.S. Bancorp (USB - Free Report) .
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Fifth Third Bancorp to Redeem its 1.35% Fixed Senior Notes
Fifth Third Bancorp (FITB - Free Report) announced the redemption of all its outstanding 1.35% fixed rate senior notes due Jun 1, 2017. The notes, to be redeemed on May 2, 2017, had a principal amount of $650 million.
Fifth Third Bancorp stated that the total amount to be paid on redemption would be equal to the principal amount of the notes outstanding, plus accrued and unpaid interest thereof (excluding the redemption date).
The company had $2.39 billion in cash and due from banks as of Dec 31, 2016 and total assets worth $142.18 billion. The company’s liquidity position reflects its ability to easily pay off the debt.
The company’s strategic initiatives to improve revenues make it well positioned for future growth. Moreover, it has an efficient capital deployment strategy in place.
Though the company witnessed a year-over-year rise in expenses in 2016, its fourth-quarter 2016 non-interest expenses totaled $960 million, slightly lower than the previous-year quarter figure.
The latest debt redemption should help in reducing expenses in the near term.
In Sep 2016, Fifth Third launched Project North Star, which laid down several long-term financial targets without expecting any improvement in the present economic conditions. The initiatives are expected to enhance revenue growth, lower expenses and optimize balance sheet position.
Further, the company is of the opinion that excluding the implementation charges related to Project North Star, overall expenses will decrease 0.5% in 2017. Also, it expects to generate positive operating leverage in the upcoming years.
Some prominent stocks in the finance space are Bank of America Corporation (BAC - Free Report) , The PNC Financial Services Group, Inc. (PNC - Free Report) and U.S. Bancorp (USB - Free Report) .
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>