Fifth Third Bank 1 year stories

Fifth Third's stock shot up at the end of 2010. News articles from that period indicate they had just settled an overdraft lawsuit at $10 million and their 3rd quarter earnings reported as more than doubled. This news came out right before the stock rose.
The stock steadily declined from that high, but then dropped precipitously from late June 2011 to early August. It was difficult to find any news stories that explained this behavior, but the stock does mirror the overall pattern in NASDAQ and DOW indexes.
The stock has, in recent months, steadily climbed upwards. Recent news stories report that banks overall did well in the 3rd quarter of 2011, and that Fifth Third's profits increased 2.5 times in that quarter.

http://www.bizjournals.com/louisville/news/2011/10/20/fifth-third-profits-more-than-double.html
http://www.cleveland.com/business/index.ssf/2010/12/fifth_third_settles_overdraft.html
http://www.thestreet.com/story/10930418/1/us-banks-earned-145-billion-in-q3.html
http://www.cleveland.com/business/index.ssf/2011/07/fifth_third_profits_increase_2.html

Story Ideas about SWOT analysis

One of the major threats listed on the SWOT analysis for Fifth Third Bank is forthcoming regulations in the Dodd-Frank bill. A reporter could try to interview people at the bank and ask what specifically they are concerned about. They could then follow up by trying to interview people in the government involved in financial regulation, and ask about the changes in the industry because of this bill. This threat is especially interesting for Fifth Third which has listed as one of its strengths that it had "nil exposure to exotic securities." I don't know much about financial regulation, but it seems like Fifth Third might actually fair better than other banks under new regulations since those exotic securities were a major problem in the 2008 stock market crash and ostensibly will be major targets in Dodd-Frank.

FITB

2010 Earnings per Share: 17.1

Alternate Walmart Story Leads

Boston residents and community activists work to block Walmart's expansion into the city, while the company looks to expand its customer base by appealing to high income consumers.


Walmart has had success appealing to thrifty grocery consumers, but hopes to reach a new source of revenue--the high income grocery shopper.

Story Ideas

Working with the group on Tuesday we came up with story ideas about Publix grocery store. Mainly investigating how they are able to maintain such a high ROE over their competition. Also their unusually high percentage of assets in inventory.

Some story ideas from my own research. I found the federal funds purchased item in the banks interesting. I'm guessing this could refer to bailout money. Bank of America has a high percentage. Bank of America was also different in other ways, having much lower liabilities in deposits, much more in long term debt. With the assets Bank of America is also different in that they have fewer loans and leases, more in securities and short term investments, and more in cash and other assets.

Bank Name	Fifth Third	Bank of America	PNC
2008 Return on Equity	(17.5%)	2.3%	3.3%
2009 Return on Equity	3.8%	2.7%	7.4%
2010 Return on Equity	3.6%	(0.1%)	10.3%
2010 Assets
Cash and due from banks	1.9%	4.8%	1.2%
Securities and short term investments	17.8%	37.2%	28.3%
Loans and Leases	67.1%	39.7%	55.1%
Premises and Equipment	2.6%	1.3%	0%
Goodwill	2.2%	3.3%	3.1%
Other Assets	8.4%	13.8%	12.2%
Total Assets	100%	100%	100%
2010 Liabilities
Total deposits	73.6%	44.6%	69.4%
Federal funds purchased	0.3%	10.8%	1.6%
Short term borrowing	1.4%	8.3%	13.4%
Accrued taxes, interest, and expenses	0.8%	6.4%	1.2%
Long term debt	8.6%	19.8%	0%
Other	2.7%	0%	2.0%
Total Liabilities	87.3%	90.0%	87.6%
2010 Shareholders' Equity
Common stock	1.6%	6.7%	1.0%
Preferred stock	3.3%	0.7%	0%
Capital surplus	1.5%	0%	4.8%
Retained earnings	6.1%	2.7%	6.0%
Other	0.2%	0%	(0.4%)
Total Equity	12.7%	10.1%	11.4%
Total Liabilities and Equity	100%	100%	100%

Fifth Third Bank CEO pay:
2010: $4.8 million
2009: $5.2 million
2008: $3.4 million

Stock Price: (End of each year)
2010: 7.65
2009: 9.82
2008: 14.39