Fifth Third Rewards Shareholders With New Share Repurchase Program

Core Viewpoint - Fifth Third Bancorp (FITB) has approved a new share repurchase authorization of up to 100 million shares, replacing the previous authorization of 11.8 million shares, providing flexibility for stock buybacks without a set expiration or price limit [1][2][7] Group 1: Share Repurchase Program - The new repurchase authorization allows for buybacks through open-market transactions or privately negotiated transactions, including Rule 10b5-1 programs [2] - The repurchase program can be modified, suspended, or discontinued based on market conditions and legal requirements [2] Group 2: Dividend Actions - In September 2024, FITB announced a 5.7% increase in its quarterly dividend to 37 cents per share, marking the fourth increase in the last five years [3] - The company has a payout ratio of 44%, and with a closing price of $38.32, the annualized dividend yield stands at 3.86% [3] Group 3: Financial Position - As of March 31, 2025, FITB had cash and due from banks totaling $17.9 billion, with total debt at $19.9 billion and short-term borrowings of $5.5 billion [4] - The common equity tier (CET) 1 ratio was reported at 10.45%, indicating room for enhancing capital distribution plans [4][5] Group 4: Market Performance - Over the past year, FITB shares have gained 6.2%, while the industry has seen a growth of 17.8% [6] - Currently, FITB holds a Zacks Rank of 3 (Hold) [8]