Fifth Third Bancorp (NASDAQ:FITB) Surpasses Earnings Estimates

Core Insights - Fifth Third Bancorp reported an earnings per share (EPS) of $1.04, exceeding the estimated $1.01, and revenue of approximately $2.34 billion, slightly above forecasts [1][6] Financial Performance - The bank's fourth-quarter profit increased due to a rise in interest income driven by stronger loan demand, contributing to the ability to exceed earnings expectations [2][6] - The company has consistently surpassed earnings estimates in the last four quarters with an average surprise of 4.52% [2] Financial Stability - Fifth Third Bancorp's net charge-off rate is recorded at 40 basis points, with commercial net charge-offs at 27 basis points [3] - The loan-to-core deposit ratio is 72%, and demand deposits grew by 4% year-over-year [3] - The Common Equity Tier 1 (CET1) ratio increased by 20 basis points to reach 10.77% [3][6] Valuation Metrics - The bank's price-to-earnings (P/E) ratio is approximately 13.58, and the price-to-sales ratio is about 2.53 [4] - The enterprise value to sales ratio is around 3.79, while the enterprise value to operating cash flow ratio is approximately 13.93 [4] Investment Indicators - Fifth Third Bancorp's earnings yield is about 7.36%, indicating the percentage of each dollar invested in equity that was earned by the company [5] - The debt-to-equity ratio is approximately 0.90, showing the proportion of debt used to finance the company's assets relative to shareholders' equity [5] - The current ratio is around 0.35, indicating the company's ability to cover its short-term liabilities with its short-term assets [5]