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The Company conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries.
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NetscribeBanking (94.20) Submitted: 1/10/07 7:57 AM : Start Price: $36.36 FITB Score: -43.07
Fifth Third Bancorp is a multi-bank holding company with $105.8 billion in assets and banking operations in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee and West Virginia. The group has four business divisions: retail banking, commercial banking, processing solutions and investment advisory. The recent decision to restructure the balance sheet would help to mitigate the interest rate risk and effectively manage capital. In line with this the transaction to sell $11.5 billion of available-for-sale securities would be used to retire the troublesome high cost wholesale borrowings and reinvest the remaining in higher yields. This would help the annual net interest income rise by $110 to $120 million per year and improve the net interest margin by 40 basis points.The bank has been very disciplined in keeping its expenses under check and religiously implementing the “great rate” strategy to improve customer satisfaction. Moreover it continuously reviews its distribution channels and closes non-profitable branches. Double-digit growth is expected in the processing solutions business as it enjoys economies of scale by leveraging the existing technology and infrastructure. Growth in merchant services is to be realized from the customer additions made in 2006 and Jeanie ATM network would supplement the same. The aggressive sale force along with conservative underwriting practices, has helped the bank in serving the small towns and acts as entry points for large potential markets regions of Florida
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NetscribeBanking (94.20) Submitted: 4/16/07 6:39 AM
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The 2006 year end witnessed Fifth Third reposition its balance sheet, shedding its low yielding securities that should help it improve its net interest margins. The new electronic deposit product launched in 35 states has helped in mobilizing deposits to the tune of $2 billion from remote places. Though it efficiency ratio has taken a big hit in 2006 at 60.5% it also represents big opportunities to improve with the implementation of new technology platform, risk management systems, outsourcing to call centers and other such initiatives. The banks had its own problems in 2006 from all quarters ranging from accounting errors, rising interest rates and management turn over that has reflected in its stock price and net income falling 23% to $1.19 billion Over the years the bank has engaged in many de novo branch expansions that would break even in three years and have deposits of around $40 million by the fifth year. It believes in getting its economic metrics right and has plans of opening around 50 new banks in 2007. Health care represents around 7% of current GDP with projections of 18% growth and over $4 trillion spending over the next 10 years. The bank is positioning itself recruited the big wigs to serve more than 600 health care companies which have revenues exceeding $100 million. Strength of the banking lies in its affiliate-banking model that seeks to improve the customer experience and mainly targets the middle market. Its image is more of a low cost provider serving those businesses, which have sales between $10 million and $500 million. Treasury management is another bright area to serve the small business for which it has customized and bundled product offerings. Standardized and centralized underwriting processes have helped it keep its asset quality at attractive levels. The bank looks well positioned deriving around 47% of its revenue from non-interest expenses apart from having a fairly diversified loan portfolio. Finally it has had a change of guard in the top and the other gaps being filled with promotions and outside hiring for key post that needs special knowledge and experience. Though the banks has its own set of problems, things are expected to change better in the second half of 2007 that would help it conformably cross the double digit mark.
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AresFinancial (99.68) Submitted: 7/20/07 7:43 PM
Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee and West Virginia = recession / bankruptcies and foreclosures.Seven analysts are recommending STRONG SELL on this stock and there are no BUY recommendations. Banking sector will underperform 07-08 with inflation and bad loans.Yes, I am short this stock.
AresFinancial (99.68) Submitted: 7/22/07 9:05 PM
First Horizon's results sank due to a "challenging operating environment," said CEO Jerry Baker. The bank said that its second-quarter net income slipped to $22.1 million, or 17 cents a share, from $104.3 million, or 82 cents a share, a year ago. Analysts had been expecting the company to post earnings of 58 cents a share, according to data complied by Thomson Financial.First Horizon's mortgage-banking business posted a pre-tax loss of $16.1 million for the second quarter, compared to a loss of $11.3 million for the first quarter of the year. The bank also spent $39.3 million on restructuring initiatives like consolidating facilities and divesting some loan portfolios.First Horizon's shares lost 0.6% to close at $37.50 on Thursday. End of Story.
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