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Fifth Third CEO: Bank In Good Position To Weather Downturn

Apr 15, 2008 Market Outlook

Fifth Third CEO: Bank In Good Position To Weather Downturn

Last Update: 4/15/2008 7:03:10 PM

CINCINNATI (AP)–Fifth Third Bancorp’s (FITB) chief executive on Tuesday said the
company’s decision to avoid the subprime loan market will help the regional bank
weather an economic downturn and fare better than its peers.

CEO Kevin Kabat told nervous shareholders at their annual meeting that Fifth
Third has outperformed its peers in the past year, despite a slide in share
price, and that some of those peers might not survive.

“It’s been a very tough year for the industry,” said Kabat, who became CEO at
last year’s meeting. “The U.S. economy has been under extreme stress, and that is
unlikely to subside for some time.”

Shares of the 11-state regional bank have been battered during the past year,
closing at a multiyear low of $19.02 on Monday, down from a 52-week high of
$43.32. Shares rose 24 cents to $19.26 in trading Tuesday.

Kabat said the bank should be able to take advantage of any economic rebound. The
current downturn could even improve Fifth Third’s competitive position, Kabat
said.

“Fifth Third is well-positioned, relative to our peers, to weather this storm,”
he said. “There is reason for optimism.”

Not all shareholders were so upbeat. A shareholder proposal that Fifth Third hire
an investment banker to find a buyer for the company received the support of 8.2%
of the voting shares.

Still, Fifth Third has expanded in the past few years from the Midwest to the
Southeast, including 150 branches in Florida, Kabat noted.

The company often is included among banks believed to be looking at further
expansion, and was mentioned as a possible suitor for National City Corp. In an
interview, Kabat declined to comment on the possibility of more acquisitions.

“One of the key messages we tried to deliver today to shareholders is that the
core businesses are working very, very well,” Kabat said. “So we don’t feel
pressured that we have to do one thing or another.”

Fifth Third Bancorp operates 18 affiliates with 1,232 offices in Ohio, Kentucky,
Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania,
Missouri and Georgia.

It said Tuesday that it received regulatory approval to acquire First Charter
Corp. (FCTR), which operates 57 branches in North Carolina and two in suburban
Atlanta. The deal was announced last August.

___

On the Net: www.53.com

(END) Dow Jones Newswires

April 15, 2008 19:03 ET (23:03 GMT)

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Technorati Tags: Acquisitions, Annual Meeting, Chief Executive, Core Businesses, Economic Downturn, Economic Rebound, Extreme Stress, Fifth Third Bancorp, Investment Banker, Kevin Kabat, National City Corp, Optimism, Peers, Regional Bank, Share Price, Shareholder Proposal, Shareholders, Subprime Loan Market, Suitor, Time Shares

Tags: Acquisitions, Annual Meeting, Chief Executive, Core Businesses, Economic Downturn, Economic Rebound, Extreme Stress, Fifth Third Bancorp, Investment Banker, Kevin Kabat, National City Corp, Optimism, Peers, Regional Bank, Share Price, Shareholder Proposal, Shareholders, Subprime Loan Market, Suitor, Time Shares