By Chelsey Dulaney
Fifth Third Bancorp said earnings in its December quarter fell
4% as revenue from its mortgage banking slid further.
Still, results came in above Wall Street expectations.
The Cincinnati, Ohio-based regional lender said profit fell to
$385 million in the fourth quarter, from $402 million a year
earlier. On a per-share basis, earnings were flat at 43 cents.
Revenue fell to $1.54 billion from $1.61 billion a year earlier.
Analysts polled by Thomson Reuters had expected the bank would earn
42 cents a share on revenue of $1.51 billion.
Shares were little changed in early morning trading.
On a conference call with analysts Wednesday, Fifth Third
executives cautioned that expenses would be higher in the first
quarter of 2015. They said noninterest income, generated from
businesses like investment advisory and mortgage banking, would be
lower in the first quarter of this year, partly as a result of
seasonal factors. Also, net interest income is expected to decline
in the first quarter.
Mortgage banking revenue fell 51% in the quarter to $61
million.
Fifth Third has faced pressure on its mortgage business
recently, on top of the stubbornly low interest rates that have
limited interest income and prompted cost-cutting among many
banks.
In the latest quarter, noninterest expense fell 7% to $918
million.
Corporate banking revenue, meanwhile, increased 27% to $120
million, while card and processing revenue increased 7% to $76
million.
The bank's profit had fallen 25%, 26% and 19%, respectively, in
the first three quarters.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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