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Fifth Third Bancorp today reported net income of $46 million for its Processing Solutions segment for the fourth quarter ended Dec. 31, up 15% from $40 million during the same period last year. Electronic-payment processing revenue reached $230 million, up 3% from $223 million during the same period last year. The number of merchant transactions was "relatively flat," but the "average ticket size was down by approximately 6% consistent with softer retails sales in the quarter," said Ross J. Kari, Fifth Third executive vice president and chief financial officer, in a conference call this morning. Merchant services contributed 38%, or roughly $87.4 million, to Fifth Third's fourth quarter payment-processing revenue. Financial institutions contributed 35%, or roughly $80.5 million, while bankcard services contributed 27%, or roughly $62.1 million, according to Fifth Third's U.S. Securities and Exchange Commission Filing. Overall, Fifth Third reported a net loss of $2.2 billion for the fourth quarter, down from $16 million during the same period last year. The bank attributed the net loss in part to higher credit costs.
