Deutsche Bank Has Hold Rating On Fifth Third After Earnings

Deutsche Bank is out with a research report on Fifth Third Bancorp FITB and it has a Hold rating and a $16 price target on shares. In a note to clients, Deutsche Bank writes, "FITB reported 2Q EPS of $0.35 vs. consensus of $0.27. Upside was driven by better than expected credit and a variety of special/lumpy items--including $40m of net MSR gains (vs. -$18m in 1Q), $25m of net gains related to FITB's processing and VISA stakes and $12m of gains related to sales of securities and debt extinguishment. Losses on OREO (of $26m) were also higher than recent periods. Net interest income was weaker than expected while core fees were higher and expenses were lower vs. expectations. Credit also came in better than expected and included $191m of reserve release. Tier 1 common was 9.2% and 9.6% under Basel 3. No update on the SEC investigation." Shares of FITB are up 31 cents to $12.64, a gain of 2.5%.