NEW YORK (Standard&Poor's) Oct. 22, 2009--Standard&Poor's Ratings Services said today that its rating on Fifth Third Bancorp (BBB/Negative/A-2) remains unchanged. Reported third-quarter results are in line with management's preannouncement on Sept. 16, 2009, and are within our expectations given economic conditions and the loan mix. Management announced a $97 million quarterly loss due to another outsize loan-loss provision of $952 million to build the reserve to 4.69% of loans. Net charge-offs increased sequentially to 3.75% of loans from 3.08% and nonperforming assets (NPAs) increased to 4.09% from 3.48%. (NPAs exclude $1.3 billion [1.54% of loans] of restructured mortgage loans [$1.0 billion in June 2009].) Capital remains adequate with a tangible common equity-to-tangible assets ratio of 6.74%.
