Fifth Third's Profit, Revenue Climb

By Joshua Jamerson 

Fifth Third Bancorp said its profit increased 5.7% in the second quarter as its revenue climbed, while a key metric of lending profitability edged down.

Earnings beat Wall Street estimates.

The bank posted earnings of $333 million, compared with $315 million in the prior-year period. On a per-share basis, earnings rose to 40 cents from 36 cents.

Revenue at the Cincinnati-based bank increased 4.1% to $1.51 billion. Analysts had expected 38 cents a share in earnings and $1.52 billion in revenue, according to Thomson Reuters.

Like other regional banks, Fifth Third has remained under pressure from low interest rates, facing the challenge of pleasing investors without the help of rate increases. Fifth Third Chief Executive Greg D. Carmichael said in prepared remarks Thursday that the bank's disciplined loan pricing helped its core business amid an "extended low-growth, low-rate environment."

Net interest margin, an important measure of lending profitability, fell to 2.88% from 2.91% in the first quarter and 2.9% in the year-ago quarter.

The company also said it extended its processing agreement with payment-processing firm Vantiv through 2024.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

July 28, 2016 07:29 ET (11:29 GMT)

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