Citi Maintains Hold Rating On FITB

Citi is maintaining its Hold rating on shares of Fifth Third Bancorp FITB. “Since earnings FITB shares have fallen ~5% vs flat a BKX – which we believe has been driven partly by more conservative n/t guidance (e.g. ~1% 2Q ROA vs “close to” 1.2% given at 4Q),” Citi writes. “While bulls argue FITB is cheap at just 8.6x 2012 estimates vs ~11-12x for peers, we estimate roughly 1/3 of FITB's 2012 EPS will be driven by reserve releases vs 10-15% of EPS at peers – we see valuation as fair at 1.3x TBV given expectation of a 13-14% over the next couple years.” Fifth Third Bancorp closed Monday at $12.92.