January 20, 2022

Cincinnati’s largest locally owned bank posted fourth quarter adjusted earnings of 93 cents per share. That was up 6% from year-ago adjusted earnings of 88 cents. Cincinnati Business Courier reporter Steve Watkins asked our Jim Russell about the report which beat analysts’ predictions:

“Fifth Third’s fourth-quarter results reflect the operating environment of a growing demand for commercial loans and solid credit trends,” Jim Russell, principal and portfolio manager at downtown-based Bahl & Gaynor Investment Counsel, told me.

Russell sees other positive trends, including high cash levels that “provide management options to add value opportunistically through the acquisition of business and share repurchase activities.”

Wealth management revenue was particularly strong, Russell said. Net interest income is tied to interest rates controlled by the Federal Reserve Fifth Third’s net interest income is expected to move higher as the Federal Reserve likely raises rates this year, he added. He sees a positive outlook overall for the bank too. “Management is optimistic regarding the bank’s positioning and current momentum despite a variety of economic and political uncertainties in the months ahead,” Russell said.

 

 

Jim Russell
Portfolio Manager
jrussell@bahl-gaynor.com

Read the full article HERE (a subscription may be required).