Upcoming AWS Coverage on National Bank Holdings Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 7, 2017 / Active Wall St. announces its post-earnings coverage on Fifth Third Bancorp (NASDAQ: FITB). The Company announced its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 24, 2017. The Cincinnati, Ohio-based Company's diluted earnings per share outperformed market consensus estimates. Register with us now for your free membership at:

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One of Fifth Third Bancorp's competitors within the Regional - Midwest Banks space, National Bank Holdings Corp. (NYSE: NBHC), announced on January 26, 2017, record Q4 and full year 2016 financial results. AWS will be initiating a research report on National Bank in the coming days.

Today, AWS is promoting its earnings coverage on FITB; touching on NBHC. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=FITB

http://www.activewallst.com/registration-3/?symbol=NBHC

Earnings Reviewed

During Q4 FY16, Fifth Third Bancorp's interest income on fully tax equivalent (FTE) grew 2% to $1.06 billion from $1.04 billion in Q4 FY15. The Company's total interest expense also increased to $149 million in Q4 FY16 from $131 million in Q4 FY15. The Company reported net interest income (FTE) of $909 million in Q4 FY16 compared to $904 million in Q4 FY15. Moreover, the Company's adjusted net interest income (FTE) was up by 1% y-o-y to $925 million in Q4 FY16.

The Company's total non-interest income declined 44% during Q4 FY16 to $620 million from $1.10 billion in the year ago same quarter. The adjusted non-interest income fell $15 million, or 2% in Q4 FY16 to $608 million from $623 million reported in Q4 FY15.

The regional bank reported net income available to common shareholders of $372 million, or $0.49 per diluted share, in Q4 FY16 compared to $634 million, or $0.79 per diluted share, in Q4 FY15. Excluding one-time gains of $0.01 per diluted, the Company's Q4 FY16 diluted earnings per share stood at $0.48 per diluted share, which was above Wall Street's expectations of $0.43 per diluted share.

In full year FY16, Fifth Third Bancorp's net income fell 9% to $1.6 billion from net income of $1.7 billion in FY15. Moreover, the Company's net income available to common shareholders for FY16 was $1.5 billion, or $1.93 per diluted share, down 9% from $1.6 billion, or $2.01 per diluted share, in FY15.

Earnings Metrics

During the reported quarter, the Company's return on average assets was 1.11% versus 1.83% in the prior year's comparable quarter. The return on average common equity came in at 9.7% in Q4 FY16 compared to 17.2% reported in the year ago same period. Moreover, return on average tangible common equity stood at 11.6% for Q4 FY16, down 900 basis points (bps) from 20.6% reported in Q4 FY15.

The Company's tangible book value improved to $16.60 per share in Q4 FY16 from $15.39 per share in Q4 FY15. Additionally, average total Bancorp shareholders' equity to average assets ratio was 11.66% in Q4 FY16, versus 11.26% in the year ago comparable quarter.

Net interest margin (FTE) for the reported quarter was 2.86% compared to 2.85% in Q4 FY15. Meanwhile, adjusted net interest margin (FTE) during Q4 FY16 came in at 2.91%. In Q4 FY16, average total interest earning assets improved marginally to $126.55 billion from $125.84 billion in the previous year's quarter. Furthermore, average yield on interest earning assets (FTE) grew to 3.33% in Q4 FY16 from 3.26% in Q4 FY15.

As on December 31, 2016, the Company's Common Equity Tier (CET) 1 capital ratio stood at 10.40% compared to 9.82% as at end of last year's fourth quarter. During Q4 FY16, the Company's Tier I leverage capital ratio grew to 9.90% from 9.54% in Q4 FY15. Furthermore, efficiency ratio during Q4 FY16 was 62.8% compared to 48.0% in Q4 FY15.

Balance Sheet Analyzed

Fifth Third Bancorp's total loans and leases balance during quarter ended December 31, 2016, was $92.85 billion compared to $93.49 billion in Q4 FY15. Total deposits amounted to $103.82 billion as on December 31, 2016, versus $103.21 billion recorded as on December 31, 2015.

The Company had total non-performing portfolio assets of $738 million as on December 31, 2016, compared to $647 million as on December 31, 2015. Furthermore, non-performing portfolio assets as a percent of portfolio loans and leases and OREO ratio stood at 0.80% as on December 31, 2016, versus 0.70% as on December 31, 2015.

Outlook

In its guidance for full year FY17, the Company expects net interest income (FTE) to grow in the range of 3.5% to 5%, while net interest margin (FTE) is forecasted to be between 2.95% and 3.00%.

For Q1 FY17, net interest income (FTE) is anticipated to rise sequentially by 1.5% to 2%. Furthermore, net interest margin (FTE) during Q1 FY17 is predicted to rise by 8 to 9 bps, sequentially.

Stock Performance

On Monday, February 06, 2017, the stock closed the trading session at $26.76, marginally climbing 0.90% from its previous closing price of $26.52. A total volume of 6.23 million shares have exchanged hands. Fifth Third Bancorp's stock price advanced 25.56% in the last three months, 38.30% in the past six months, and 79.34% in the previous twelve months. The stock is trading at a PE ratio of 13.80 and has a dividend yield of 2.09%.

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SOURCE: Active Wall Street