(Updates with closing share price in second paragraph.)
Oct. 20 (Bloomberg) -- Fifth Third Bancorp., Ohio’s biggest lender, climbed the most in the Standard & Poor’s 500 Financials Index after quarterly net income more than doubled and the profitability of loans improved.
The stock jumped 9.1 percent, the biggest gain in the 81- company S&P index, to $11.63 at the close of trading in New York. The index gained 1.8 percent.
Net income surged to $373 million, or 40 cents a share, from $175 million, or 22 cents, in the same period a year earlier, the company said today in a statement. The average per- share profit estimate of 31 analysts surveyed by Bloomberg was 33 cents. The net interest margin, the difference between what a bank pays in deposits and charges for loans, rose to 3.65 percent from 3.62 percent in the second quarter.
“They had a bigger benefit from their funding costs going down than many other banks,” Kenneth Usdin, a senior analyst for Jefferies & Co. in New York, said by phone.
Provisions for souring loans fell 81 percent to $87 million, and charge-offs for bad debts fell to the lowest level since the fourth quarter of 2007, according to the statement.
--Editors: David Scheer, William Ahearn
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