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If You Invested $1000 in Fifth Third Bancorp 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Fifth Third Bancorp (FITB - Free Report) ten years ago? It may not have been easy to hold on to FITB for all that time, but if you did, how much would your investment be worth today?
Fifth Third Bancorp's Business In-Depth
With that in mind, let's take a look at Fifth Third Bancorp's main business drivers.
With assets of $211 billion as of Dec 31, 2021, Cincinnati-based Fifth Third Bancorp has 1,117 full-service banking centers in 11 states throughout the Midwestern and Southeastern regions of the United States. In September 2019, Fifth Third received the Office of the Comptroller of the Currency's approval to convert from an Ohio state-chartered bank to a national bank.
Fifth Third classifies its operations into mainly four reportable segments. Firstly, Branch Banking provides deposit and loan products, and credit cards to individuals and small businesses. Next, Consumer Lending includes residential mortgage, automobile and other indirect lending activities.
The Commercial Banking unit provides financial services and products to large and middle-market businesses, governments and professional customers. The Wealth and Asset Management division offers investment alternatives to individuals, companies and non-profit organizations.
The General Corporate and Other segment includes unallocated portion of investment securities portfolio, securities gains and losses, non-core deposit funding, unassigned equity, unallocated provision expense above net charge-offs or benefit from reduction of allowance for loan losses, representation and warranty expense above actual losses or benefit from reduction of representation and warranty reserves, payment of preferred stock dividends, and additional activities.
In August 2021, Fifth Third completed the buyout of Provide, a digital platform for healthcare practices. In January 2021, it acquired Hammond Hanlon Camp LLC. In 2019, the company completed the acquisition of MB Financial. In 2018, it acquired Coker Capital, a healthcare Merger & Acquisition advisory firm. In 2017, it acquired R.G. McGraw Insurance Agency.
Notably, Fifth Third has exited its entire stake in all publicly-traded companies. In March 2019, the company exchanged its remaining shares of Worldpay Holdings, LLC for shares of Worldpay, Inc., and subsequently sold its shares, recording a gain of $562 million. In March and April 2019, Fifth Third exchanged its Class B units of GreenSky Holdings, LLC for Class A common stock of GreenSky, Inc and sold all of the stock.
Note: Certain information will be updated once the company files its latest 10K.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Fifth Third Bancorp a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in February 2012 would be worth $3,494.93, or a 249.49% gain, as of February 21, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 219.48% and gold's return of 3.57% over the same time frame.
Going forward, analysts are expecting more upside for FITB.
Shares of Fifth Third have outperformed the industry in the past year. The company's earnings have surpassed the Zacks Consensus Estimate in all of the trailing four quarters. Strong financial performance in the fourth quarter enabled the company to achieve positive operating leverage. The announced acquisition of Dividend Finance enhances its expanded digital service capabilities. Such bolt-on buyouts will increase fee income, driving top-line growth, going forward. Also, branch expansions and recovery in the U.S economy are likely to drive loan growth and improvement in asset quality. However, mounting expenses due to investments in branch digitization initiatives are likely to hinder bottom-line growth. Also, margin pressure amid near-zero interest rates remains a significant concern. High exposure to commercial loans acts as a headwind.
The stock has jumped 7.08% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2022; the consensus estimate has moved up as well.
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If You Invested $1000 in Fifth Third Bancorp 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Fifth Third Bancorp (FITB - Free Report) ten years ago? It may not have been easy to hold on to FITB for all that time, but if you did, how much would your investment be worth today?
Fifth Third Bancorp's Business In-Depth
With that in mind, let's take a look at Fifth Third Bancorp's main business drivers.
With assets of $211 billion as of Dec 31, 2021, Cincinnati-based Fifth Third Bancorp has 1,117 full-service banking centers in 11 states throughout the Midwestern and Southeastern regions of the United States. In September 2019, Fifth Third received the Office of the Comptroller of the Currency's approval to convert from an Ohio state-chartered bank to a national bank.
Fifth Third classifies its operations into mainly four reportable segments. Firstly, Branch Banking provides deposit and loan products, and credit cards to individuals and small businesses. Next, Consumer Lending includes residential mortgage, automobile and other indirect lending activities.
The Commercial Banking unit provides financial services and products to large and middle-market businesses, governments and professional customers. The Wealth and Asset Management division offers investment alternatives to individuals, companies and non-profit organizations.
The General Corporate and Other segment includes unallocated portion of investment securities portfolio, securities gains and losses, non-core deposit funding, unassigned equity, unallocated provision expense above net charge-offs or benefit from reduction of allowance for loan losses, representation and warranty expense above actual losses or benefit from reduction of representation and warranty reserves, payment of preferred stock dividends, and additional activities.
In August 2021, Fifth Third completed the buyout of Provide, a digital platform for healthcare practices. In January 2021, it acquired Hammond Hanlon Camp LLC. In 2019, the company completed the acquisition of MB Financial. In 2018, it acquired Coker Capital, a healthcare Merger & Acquisition advisory firm. In 2017, it acquired R.G. McGraw Insurance Agency.
Notably, Fifth Third has exited its entire stake in all publicly-traded companies. In March 2019, the company exchanged its remaining shares of Worldpay Holdings, LLC for shares of Worldpay, Inc., and subsequently sold its shares, recording a gain of $562 million. In March and April 2019, Fifth Third exchanged its Class B units of GreenSky Holdings, LLC for Class A common stock of GreenSky, Inc and sold all of the stock.
Note: Certain information will be updated once the company files its latest 10K.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Fifth Third Bancorp a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in February 2012 would be worth $3,494.93, or a 249.49% gain, as of February 21, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 219.48% and gold's return of 3.57% over the same time frame.
Going forward, analysts are expecting more upside for FITB.
Shares of Fifth Third have outperformed the industry in the past year. The company's earnings have surpassed the Zacks Consensus Estimate in all of the trailing four quarters. Strong financial performance in the fourth quarter enabled the company to achieve positive operating leverage. The announced acquisition of Dividend Finance enhances its expanded digital service capabilities. Such bolt-on buyouts will increase fee income, driving top-line growth, going forward. Also, branch expansions and recovery in the U.S economy are likely to drive loan growth and improvement in asset quality. However, mounting expenses due to investments in branch digitization initiatives are likely to hinder bottom-line growth. Also, margin pressure amid near-zero interest rates remains a significant concern. High exposure to commercial loans acts as a headwind.
The stock has jumped 7.08% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2022; the consensus estimate has moved up as well.