Even in the wake of closing another 37 bank branches, Fifth Third Bancorp reports a 7-percent decline in first quarter profits, while revenues fell by 5-percent and non-interest income slid 18-percent. In spite of the rough quarter, Fifth Third President & CEO Greg Carmichael says, “We continued to make progress towards our long-term performance goals.”
The bank, which has multiple branches throughout the region in Michigan’s Great Southwest, reports first quarter 2017 net income of $305-million as compared to a new income of $395-million in the fourth quarter of 2016 and $326-million in the first quarter of 2016. After preferred dividends, net income available to common shareholders was $290-million, or $0.38 per diluted share, in the first quarter of 2017, compared with $372-million, or $0.49 per diluted share, in the fourth quarter of 2016, and $311-million, or $0.40 per diluted share, in the first quarter a year ago.
Carmichael says, “Our net interest margin continued to improve as our balance sheet positioning allowed us to benefit from increased short term market rates. The growth in our net interest income and our focus on expense management are indicative of our ability to achieve positive operating leverage.”
The earnings per share matched Wall Street expectations, and Carmichael is buoyed by the benefits coming from recent interest rate increases by The Fed.
This year’s round of 37 bank closings, coming on the heels of 105 that were closed or sold last year, have also seen the bank completely leave both Missouri and Pennsylvania, leaving a marketplace now spread across ten states instead of a dozen. Bank officials blame the loss of brick and mortar to a substantial spike in digital transactions by customers across the spectrum.
