Fifth Third Bancorp in Cincinnati reported higher first-quarter profit as higher fee income and lower expenses offset a decline in net interest income.
The $140 billion-asset company said net income rose 19% to $367 million, or 44 cents per share, from a year earlier. Total revenue rose 3% to $1.5 billion.
Net interest income fell 2% to $970 million. The net interest margin narrowed by 36 basis points to 2.86%.
Fee income rose 17% to $660 million, as Fifth Third benefited from valuation adjustments on its holdings of Vantiv warrants, a gain on sale of troubled debt restructurings and other factors.
Noninterest expense fell 3% to $923 million. The efficiency ratio improved to 61%.
