Fifth Third Bank on target for growth, posts profit as originations soar

Mortgages grow 28% from one year earlier

Fifth Third Bank's (FITB) second-quarter 2013 mortgage originations reached $7.5 billion, up from $5.9 billion in 2Q 2012, and a slight uptick from the first quarter. 

Mortgage banking net revenue also grew, increasing 6% from the first quarter and 28% from $233 million in the second quarter of last year.

"We posted our tenth consecutive quarter of sequential average portfolio loan growth, driven by C&I loan growth of 3%. Nearly all fee income categories increased quarter-over-quarter, highlighted by mortgage banking net revenue and corporate banking revenue, which grew 6% and 7%, respectively," Kevin Kabat, CEO of Fifth Third Bancorp, said.

Meanwhile, mortgage servicing fees climbed to $62 million, compared with $61 million in the previous quarter and $63 million for 2Q 2012.

Net charge-offs on residential mortgage loans in the portfolio also improved, reaching $15 million, down $5 million from the last quarter.

As a whole, Fifth Third Bank's 2Q13 net income available to common shareholders soared to $594 million, or 66 cents a share, up 43% from $413 million, or 46 cents a share, in 1Q13, and up 65% from $376 million, or 40 cents a share, in 2Q12.

"Second-quarter results were again strong for Fifth Third," said Kabat. "Credit trends continued to improve as net charge-offs declined 16% to $112 million, or 51 basis points of loans, and we saw continued, broad based improvement in nearly every key credit metric."

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