For at least the fifth straight financial quarter, Fifth Third Bancorp, with multiple branch offices throughout Michigan’s Great Southwest, has met or beaten Wall Street analyst expectations, and they did it without even factoring in the substantial windfall gained from the new national tax cut plan implemented by the Trump administration.
Fifth Third Bancorp, the nation’s 13th largest, this week reported full year 2017 net income of $2.2 billion, up 41-percent from net income of $1.6 billion in 2016. After preferred dividends, 2017 net income available to common shareholders was $2.1 billion, or $2.83 per diluted share, compared with 2016 net income available to common shareholders of $1.5 billion, or $1.93 per diluted share.
Fourth quarter 2017 net income was $509 million, a decrease of 50-percent from net income of $1.014 billion in the third quarter of 2017 and an increase of 29-percent from net income of $395 million in the fourth quarter of 2016. After preferred dividends, net income available to common shareholders was $486 million, or $0.67 per diluted share, in the fourth quarter 2017, compared with $999 million, or $1.35 per diluted share, in the third quarter of 2017, and $372 million, or $0.49 per diluted share, in the fourth quarter of 2016.
Greg Carmichael is President & CEO at Fifth Third Bancorp. He says, “Our strong fourth quarter and full year 2017 results reflect continued progress toward achieving our long term financial goals. Our business strategies are well aligned with the interests of our shareholders, our customers, our employees, and the communities we serve. Our balance sheet remains strong and positions us well for growth in 2018.”
Carmichael went on to say, “The investments that we have made following the passage of the new tax law demonstrate our commitment to improving the lives of our employees and our communities. In addition to the immediate positive impact of lower corporate taxes on our company’s results, we are optimistic that the new tax law will help to reinvigorate the economy and support further growth in our businesses.”
The bank’s leader concludes, “As we discussed at our recent Investor Day, we have continued to generate positive momentum over the past year. We remain focused on driving improved shareholder returns in 2018 and beyond as we execute on our strategic initiatives under Project North Star.”
In a Tuesday morning conference call with analysts, Carmichael told listeners, “We continued to optimize and strengthen the balance sheet,” and added, “During the year, we re-launched our brand campaign through print, television, radio, and digital advertising. As we share with you this number, the re-launch was very well received adn continues to strengthen our brand in the marketplace.” Looking at the customer experience, Carmichael added, “We continue to focus on improving the customer experience by advancing our digital first, customer centric agenda and have made significant progress through several of our North Star initiatives.”
Regarding the Tax Cuts and Jobs Act, Fifth Third is taking a $15-million pre-tax expense related to one-time employee bonuses, and a similar $15-million pre-tax contribution to the Fifth Third Foundation.
