CINCINNATI (AP) — Fifth Third Bancorp said Thursday that its first-quarter profit fell nearly 10 percent from a year ago as its costs rose and it set aside more money to protect itself from bad loans or leases.
But the regional bank’s results were still better than Wall Street expected and its shares rose Thursday.
The regional bank reported first-quarter net income of $312 million, or 40 cents per share, in the three months ending in March. That compares with $346 million, or 42 cents per share, in the same period a year earlier.
Earnings, adjusted for non-recurring gains, were 37 cents per share, beating expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of 34 cents per share.
Revenue rose more than 4 percent to $1.55 billion, which also topped Street forecasts. Analysts expected revenue of $1.47 billion, according to Zacks.
Expenses rose 7 percent to $986 million. And the company said it set aside $119 million for loan and lease losses, up 72 percent from the year before. Fifth Third said much of the increase was due to low oil prices, which may hurt its energy portfolio.
Fifth Third, based in Cincinnati, has more than 1,240 banking locations. The company’s shares rose 26 cents, or 1.4 percent, to $18.65 in morning trading Thursday.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on FITB at http://www.zacks.com/ap/FITB
Keywords: Fifth Third Bancorp, Earnings Report