No Objection from Federal Reserve to Company's
Capital Plan
Fifth Third Bancorp (NASDAQ: FITB) announced today that the
Board of Governors of the Federal Reserve System (“the Federal
Reserve”) did not object to Fifth Third’s proposed potential
capital actions from July 1, 2016 through June 30, 2017 included in
its capital plan submitted in April under the Comprehensive Capital
Analysis and Review (“CCAR”) process.
In comments related to this announcement, Greg Carmichael,
president and CEO of Fifth Third Bancorp, said, “Our 2016 CCAR plan
reflects prudent capital management and is consistent with our
intent to generally maintain regulatory capital ratios at current
levels while achieving a healthy payout ratio. We are also pleased
that we received no objection to potential Vantiv related actions.
These results are consistent with Fifth Third’s effective credit
and capital management policies.”
2016 CCAR Capital Plan
Fifth Third’s capital plan included the following capital
actions related to common dividends and share repurchases for the
period beginning July 1, 2016 and ending June 30, 2017.
- The increase in the quarterly common
stock dividend to $0.14 in 4Q 2016
- The repurchase of common shares in an
amount up to $660 million, which includes $84 million in
repurchases related to share issuances under employee benefit
plans
- The additional ability to repurchase
shares in the amount of any after-tax gains from the sale of
Vantiv, Inc. (“Vantiv”) stock, if realized.
- The additional ability to repurchase
shares in the amount of any after-tax gains from the sale of any
portion of the tax receivable agreement with Vantiv, Inc.
(“Vantiv”), if realized.
The Federal Reserve’s non-objection applies only to those
actions proposed in Fifth Third’s CCAR submission to be taken from
July 1, 2016 through June 30, 2017. Any potential actions that
Fifth Third assumed it could take subsequent to June 30, 2017 as
part of this CCAR submission would be subject to another CCAR plan
submission and non-objection for that subsequent period. Any
capital actions, including those contemplated in the above
announced actions, are subject to evaluation of Fifth Third’s
performance, the state of the economic environment, market
conditions, regulatory factors, and other risks and uncertainties
and approval by the Board of Directors at any given time. Fifth
Third has no current information and makes no representations as to
whether, when or in what amounts there may be a) future gains from
the sale of Vantiv stock, b) future gains from the sale of any
portion of the tax receivable agreement with Vantiv or c) other
capital actions or distributions requiring future Board approval,
future regulatory developments, or future requisite market
conditions.
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of March 31, 2016, the
Company had $142 billion in assets and operates 1,241 full-service
Banking Centers (including 95 Bank Mart® locations) and 2,556 ATMs
in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee,
West Virginia, Pennsylvania, Georgia and North Carolina. Fifth
Third operates four main businesses: Commercial Banking, Branch
Banking, Consumer Lending and Investment Advisors. Fifth Third also
has an 18.3% interest in Vantiv Holding, LLC. Fifth Third is among
the largest money managers in the Midwest and, as of March 31,
2016, had $303 billion in assets under care, of which it managed
$26 billion for individuals, corporations and not-for-profit
organizations. Investor information and press releases can be
viewed at www.53.com. Fifth Third’s common stock is traded on the
NASDAQ® Global Select Market under the symbol “FITB.”
Forward-Looking Statements
This release contains statements that we believe are
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Rule 175 promulgated
thereunder, and Section 21E of the Securities Exchange Act of 1934,
as amended, and Rule 3b-6 promulgated thereunder. These statements
relate to our financial condition, results of operations, plans,
objectives, future performance or business. They usually can be
identified by the use of forward-looking language such as “will
likely result,” “may,” “are expected to,” “anticipates,”
“potential,” “estimate,” “forecast,” “projected,” “intends to,” or
may include other similar words or phrases such as “believes,”
“plans,” “trend,” “objective,” “continue,” “remain,” or similar
expressions, or future or conditional verbs such as “will,”
“would,” “should,” “could,” “might,” “can,” or similar verbs. You
should not place undue reliance on these statements, as they are
subject to risks and uncertainties, including but not limited to
the risk factors set forth in our most recent Annual Report on Form
10-K as updated from time to time by our Quarterly Reports on Form
10-Q. When considering these forward-looking statements, you should
keep in mind these risks and uncertainties, as well as any
cautionary statements we may make. Moreover, you should treat these
statements as speaking only as of the date they are made and based
only on information then actually known to us. There is a risk that
additional information may become known during the company’s
quarterly closing process or as a result of subsequent events that
could affect the accuracy of the statements and financial
information contained herein.
There are a number of important factors that could cause future
results to differ materially from historical performance and these
forward-looking statements. Factors that might cause such a
difference include, but are not limited to: (1) general economic or
real estate market conditions, either nationally or in the states
in which Fifth Third, one or more acquired entities and/or the
combined company do business, weaken or are less favorable than
expected; (2) deteriorating credit quality; (3) political
developments, wars or other hostilities may disrupt or increase
volatility in securities markets or other economic conditions; (4)
changes in the interest rate environment reduce interest margins;
(5) prepayment speeds, loan origination and sale volumes,
charge-offs and loan loss provisions; (6) Fifth Third’s ability to
maintain required capital levels and adequate sources of funding
and liquidity; (7) maintaining capital requirements and adequate
sources of funding and liquidity may limit Fifth Third’s operations
and potential growth; (8) changes and trends in capital markets;
(9) problems encountered by larger or similar financial
institutions may adversely affect the banking industry and/or Fifth
Third; (10) competitive pressures among depository institutions
increase significantly; (11) effects of critical accounting
policies and judgments; (12) changes in accounting policies or
procedures as may be required by the Financial Accounting Standards
Board (FASB) or other regulatory agencies; (13) legislative or
regulatory changes or actions, or significant litigation, adversely
affect Fifth Third, one or more acquired entities and/or the
combined company or the businesses in which Fifth Third, one or
more acquired entities and/or the combined company are engaged,
including the Dodd-Frank Wall Street Reform and Consumer Protection
Act; (14) ability to maintain favorable ratings from rating
agencies; (15) fluctuation of Fifth Third’s stock price; (16)
ability to attract and retain key personnel; (17) ability to
receive dividends from its subsidiaries; (18) potentially dilutive
effect of future acquisitions on current shareholders’ ownership of
Fifth Third; (19) effects of accounting or financial results of one
or more acquired entities; (20) difficulties from Fifth Third’s
investment in, relationship with, and nature of the operations of
Vantiv, LLC; (21) loss of income from any sale or potential sale of
businesses (22) difficulties in separating the operations of any
branches or other assets divested; (23) inability to achieve
expected benefits from branch consolidations and planned sales
within desired timeframes, if at all; (24) ability to secure
confidential information and deliver products and services through
the use of computer systems and telecommunications networks; and
(25) the impact of reputational risk created by these developments
on such matters as business generation and retention, funding and
liquidity.
You should refer to our periodic and current reports filed with
the Securities and Exchange Commission, or “SEC,” for further
information on other factors, which could cause actual results to
be significantly different from those expressed or implied by these
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20160629006419/en/
Fifth Third BancorpSameer Gokhale (Investors)513-534-2219orLarry
Magnesen (Media)513-534-8055
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