Fifth Third Bancorp's income available to common shareholders rose 36% in the third quarter, while diluted earnings per share declined to $0.90 from $0.91 and average diluted shares increased 37%.
The company furnished its earnings release in a Form 8-K dated Oct. 19. It reported $828 million in income available to common shareholders, compared with $608 million a year earlier and $763 million in the second quarter. Average diluted shares outstanding totaled 917.1 million.
Net interest income increased to $2.271 billion from $1.520 billion, up 49% year over year. Fifth Third said Comerica's addition was the primary driver of the annual increase, with fixed-rate asset repricing and balance-sheet management also contributing.
On a sequential basis, fully taxable-equivalent net interest income grew 3%. Fifth Third cited higher market rates, loan growth and repricing of fixed-rate assets as support for the gain. Higher deposit costs and the movement of Comerica sweep balances into interest-bearing deposits offset part of it. The 3% figure compares with the prior quarter, while the 49% rise compares with a year earlier.
The after-tax impact of certain items totaled $211 million: $171 million in merger-related charges, $26 million in interchange litigation matters and $14 million in technology-related asset impairments. After excluding those items, adjusted diluted earnings per share were $1.13.
Fifth Third reported a $122 million credit-loss provision, down from $129 million in the second quarter. Net charge-offs rose to $139 million from $135 million over the same comparison.
Fifth Third said it completed the Comerica systems conversion. For the fourth quarter, it expects fully taxable-equivalent net interest income to rise 2.5% to 3.5% from the third quarter, using $2.28 billion as the third-quarter comparison base. The outlook assumes a 4.25% federal funds rate at year-end.
