Fifth Third Bancorp Announces Ten Percent Increase in Quarterly Cash Dividend on its Common Stock

 

 

Fifth Third Bancorp (Nasdaq: FITB) today declared a cash dividend on its

common shares of $0.11 for the first quarter of 2013. The dividend is

payable on Thursday, April 18, 2013 to shareholders of record as of

Friday, March 29, 2013. This dividend is consistent with Fifth Third’s

proposed potential dividends as submitted to the Federal Reserve in its

2012 Comprehensive Capital Analysis & Review (“CCAR”) plan for the CCAR

process covering the period ending March 31, 2013.

 

 

Fifth Third’s 2013 CCAR plan included the potential increase in the

quarterly dividend to $0.12 per share in the second quarter of 2013

through the first quarter of 2014. As noted last week, Fifth Third’s

Board will consider the potential to increase the dividend under the

2013 CCAR process at its scheduled quarterly meeting in June.

 

 

Fifth Third also announced that its Board of Directors approved a new

share repurchase authorization of up to 100 million shares, which

replaces the previous authorization from 2012 under which approximately

54 million shares remain. Fifth Third’s capital plan included potential

common share repurchases of up to $984 million through the first quarter

of 2014, in addition to any incremental repurchases related to any

after-tax gains from the sale of Vantiv, Inc. (“Vantiv”) stock.

 

 

Any capital distributions, including those contemplated in the above

announced actions, are subject to evaluation and approval by the Board

of Directors at any given time, Fifth Third’s performance, the state of

the economic environment, market conditions, regulatory factors, and

other risks and uncertainties. Fifth Third has no current information

and makes no representations as to whether, when or in what amounts

there may be future gains from the sale of Vantiv stock. The new

repurchase authorization does not have an expiration date, does not

include specific price targets, may be executed through open market

purchases or one or more private negotiated transactions, including Rule

10b5-1 programs, and may be suspended at any time.

 

 

Fifth Third Bancorp is a diversified financial services company

headquartered in Cincinnati, Ohio. The Company has $122 billion in

assets and operates 18 affiliates with 1,320 full-service Banking

Centers, including 104 Bank Mart® locations open seven days a week

inside select grocery stores and 2,413 ATMs in Ohio, Kentucky, Indiana,

Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania,

Missouri, Georgia and North Carolina. Fifth Third operates four main

businesses: Commercial Banking, Branch Banking, Consumer Lending, and

Investment Advisors. Fifth Third also has a 33% interest in Vantiv

Holding, LLC. Fifth Third is among the largest money managers in the

Midwest and, as of December 31, 2012, had $308 billion in assets under

care, of which it managed $27 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® National Global

Select Market under the symbol “FITB.”

 

 

Forward-Looking Statements

 

 

This report 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,” “is anticipated,” “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. 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 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 conditions and

weakening in the economy, specifically the real estate market, either

nationally or in the states in which Fifth Third, one or more acquired

entities and/or the combined company do business, 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 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 the separation of or the results of

operations of Vantiv, LLC from Fifth Third; (21) loss of income from any

sale or potential sale of businesses that could have an adverse effect

on Fifth Third’s earnings and future growth; (22) ability to secure

confidential information and deliver products and services through the

use of computer systems and telecommunications networks; and (23) 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.