Fifth Third’s Profit Climbs 14% Despite $178 M Tricolor Loss

Fifth Third Bancorp boosted its Q3 profit by 14% to $608 million (91 cents/share), thanks to strong fee income growth. 

The bank’s non-interest income rose to $781 million, a 10% jump from a year ago, led by an 11% increase in wealth and asset management fees and a 16% surge in mortgage banking fees. 

Net interest income also climbed 7% to $1.53 billion, fueled by lower deposit costs and higher yields on assets. 

However, the quarter included a $178 million loss tied to the bankruptcy of auto dealer Tricolor and its $200 million loan, contributing to total net charge-offs of $339 million. 

The bank announced a $10.9 billion all-stock deal to acquire Comerica, which would make it the ninth-largest U.S. lender. 

Shares rose about 2.8% in pre-market trading on the upbeat earnings.