Stable and improving credit trends helped generate 10% growth in Fifth Third Bancorp’s first quarter card-processing volume, to $80 million from $73 million a year earlier, the bank announced April 21.
The year-over-year volume comparison reflects higher transaction volumes as general improvement in the economy drove increased spending, the bank noted in its earnings release.
Credit card losses charged off during the quarter totaled $31 million, down 29.5% from $44 million during the same quarter last year and down 6.1% from $33 million during the fourth quarter. The net charge-off rate during the quarter was 2.43%, down 50 basis points from 2.93% a year earlier but up 23 basis points from 2.2% in the fourth quarter.
Average credit card loans decreased 5.6%, to $1.85 billion from $1.94 billion during the same period last year. Card loans 90 days or more past due decreased by 12%, hitting the lowest level since 2006, according to Fifth Third. The company did not provide specific numbers.
As a company, Fifth Third reported first quarter net income of $265 million, up significantly from a $10 million loss during the same period last year.
Fifth Third also owns a 49% interest in Fifth Third Processing Solutions LLC. Advent International Corp., a Boston-based private-equity firm, owns the rest.
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