Fifth Third Bancorp's (FITB) first-quarter earnings jumped 62% as results got a boost from the regional lender's gains on the initial public offering of Vantiv Inc. (VNTV) and an improved credit environment.
Vantiv, the parent of Cincinnati payment processor Vantiv LLC, went public on the New York Stock Exchange last month, a debut that gave Fifth Third the opportunity to cash out some of its ownership stake in the company.
Fifth Third reported a profit of $430 million, up from $265 million a year earlier. Per-share earnings, which reflect the payment of preferred dividends, jumped to 45 cents from 10 cents a year earlier.
The latest results included an 11-cent net per-share benefit from gains on the Vantiv IPO and warrant, as well as 2-cent per-share charge tied to Vantiv debt termination.
Revenue, a combination of noninterest income and net interest income, rose 14% to $1.67 billion.
Analysts were looking for a per-share profit of 37 cents on $1.54 billion in revenue, according to a poll conducted by Thomson Reuters.
Loan-loss provisions, or funds set aside to cover bad loans, totaled $91 million in the first quarter, compared with $168 million a year earlier and $55 million in the prior quarter.
Lenders across the banking industry have hugely benefited from improving credit quality in their loan books that has allowed them to slash funds set aside for bad loans.
Net charge-offs were $220 million in the first quarter, the lowest level since the fourth quarter of 2007, according to the bank.