Per an article by Bizjournals, Fifth Third Bancorp (FITB - Free Report) has laid off a number of employees in the Cincinnati region. The bank’s spokesperson has mentioned no specific reasons behind the job cuts.
The company undergoes an employee level review program on a periodic basis to determine whether the current staff level is matching market demand and the bank’s operating scenario. Through this review system, Fifth Third remains successful in maintaining efficiency levels.
In times when Fifth Third invests targeting expansion of particular operation, it undergoes a recruitment drive. On the other hand, it trims the staff level if the bank feels that productivity has improved.
In order to fulfill its Project North Star initiatives that targets long-term improvement in profit, Fifth Third has undertaken several strategic initiatives.
In May 2018, Fifth Third entered into a stock-cash acquisition deal with MB Financial, for a total value of $4.7 billion. On completion of the deal, the combined entity will form the fourth largest bank in Chicago, in terms of deposits, with a 6.5% market share. Moreover, CEO Greg D. Carmichael expects that this merger will speed up NorthStar financial targets and be accretive to Fifth Third’s operating earnings per share.
Also, last month, the bank announced plans to open about 15 new branches in the Tampa Bay region, in a bid to expand footprint in various key markets. Fifth Third expects that the area’s growing market needs will boost its revenues from the region.
Fifth Third’s focus on strategic investments through North Star initiatives, which are expected to result in revenue growth, expense savings and operational excellence, remains a key positive point.
Also, it recently announced a 12.5% dividend hike in its quarterly common stock reflecting its commitment toward returning value to shareholders with its strong cash-generation capabilities.
Shares of Fifth Third have gained 24.2% in the past year, outperforming 14.6% growth recorded by the industry.
Currently, Fifth Third sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Comerica Incorporated (CMA - Free Report) has witnessed 1.2% upward estimate revisions for 2018 earnings over the last 30 days. Additionally, the stock has jumped more than 35% over the past six months. It currently carries a Zacks Rank #2 (Buy).
M&T Bank Corporation (MTB - Free Report) has been witnessing slight upward estimate revisions for the last 30 days. Also, the company’s shares have risen nearly 10.6% in the past year. It holds a Zacks Rank #2, at present.
KeyCorp (KEY - Free Report) has been witnessing marginal upward estimate revisions for the last 60 days. In a year’s time, this Zacks #2 Ranked company’s share price has been up more than 15%.
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