(By Balachander S) Fifth Third Bancorp (NASDAQ:FITB) reported a jump in quarterly profit, as non-interest income soared helped by Vantiv IPO and lower provision for loan losses.
Including gains and charges related to the initial public offering of Vantiv, earnings available to common shareholders were $421 million or $0.45 per share for the first quarter, up from $88 million or $0.10 per share in the year-ago quarter. In the fourth quarter of last year, the bank earned 33 cents a share.
Net interest income grew 2 percent to $903 million. Sequentially, interest income declined 2 percent due to lower yields on loans.
Total non-interest income was $769 million, up 32 percent from last year and 40 percent sequentially.
Due to lower loan yields, net interest margin dropped to 3.61 percent from 3.71 percent in the year-ago period and 3.67 percent on a sequential basis.
Provision for loan and lease losses decreased 46 percent to $91 million from last year levels, yet jumped 64 percent from the previous quarter.
The stock, which has been trading between $9.13 and $14.73 over the past year, ended Wednesday's regular trading at $14.16.