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
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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.