Fifth Third Bank 2002 Annual Report Download - page 62

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FIFTH THIRD BANCORP AND SUBSIDIARIES
60
Management’s Discussion and Analysis of
Financial Condition and Results of Operations
Consolidated Six Year Summary Of Operations
For the Years Ended December 31 ($ in millions, except per share data) 2002 2001 2000 1999 1998 1997
Interest Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,129.4 4,708.8 4,947.4 4,199.4 4,052.2 3,933.4
Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,429.1 2,275.8 2,692.9 2,021.7 2,042.0 2,026.1
Net Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,700.3 2,433.0 2,254.5 2,177.7 2,010.2 1,907.3
Provision for Credit Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . 246.6 200.6 125.7 143.2 156.2 176.6
Merger-Related Loan Loss Provision . . . . . . . . . . . . . . . . . . . . — 35.4 12.0 26.2 20.2 —
Net Interest Income After Provision for Credit Losses . . . . . . . 2,453.7 2,197.0 2,116.8 2,008.3 1,833.8 1,730.7
Other Operating Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,194.1 1,797.4 1,482.4 1,339.0 1,165.2 904.8
Operating Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,216.1 1,992.8 1,831.8 1,784.4 1,621.6 1,463.7
Merger-Related Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 348.6 87.0 108.1 146.3 —
Income Before Income Taxes, Minority Interest
and Cumulative Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,431.7 1,653.0 1,680.2 1,454.8 1,231.1 1,171.8
Applicable Income Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 759.3 550.0 539.1 507.5 423.5 394.6
Income Before Minority Interest and Cumulative Effect . . . . . . 1,672.4 1,103.0 1,141.1 947.3 807.6 777.2
Minority Interest, Net of Tax . . . . . . . . . . . . . . . . . . . . . . . . . 37.7 2.5————
Income Before Cumulative Effect . . . . . . . . . . . . . . . . . . . . . . 1,634.7 1,100.5 1,141.1 947.3 807.6 777.2
Cumulative Effect of Change in Accounting Principle, Net of Tax — 6.8————
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,634.7 1,093.7 1,141.1 947.3 807.6 777.2
Dividends on Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . .7 .7 .7 .7 .7 .7
Net Income Available to Common Shareholders . . . . . . . . . . . $1,634.0 1,093.0 1,140.4 946.6 806.9 776.5
Earnings Per Share (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.82 1.90 2.02 1.68 1.44 1.39
Earnings Per Diluted Share (a) . . . . . . . . . . . . . . . . . . . . . . . . $ 2.76 1.86 1.98 1.66 1.42 1.37
Cash Dividends Declared Per Share (a) . . . . . . . . . . . . . . . . . . $ .98 .83 .70 .582⁄3.471⁄3.379⁄10
Condensed Consolidated Balance Sheet Information
As of December 31 ($ in millions) 2002 2001 2000 1999 1998 1997
Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,515.9 20,523.0 19,581.4 16,663.7 16,509.9 15,620.9
Loans and Leases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,928.1 41,547.9 42,530.4 38,836.6 34,115.4 33,906.1
Loans Held for Sale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,357.5 2,180.1 1,655.0 1,198.4 2,861.3 1,590.3
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,894.4 71,026.3 69,658.3 62,156.7 58,201.9 55,260.1
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,208.4 45,854.1 48,359.5 41,855.8 41,014.0 39,609.0
Short-Term Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,823.1 7,452.7 6,344.0 10,095.4 6,214.0 6,541.5
Long-Term Debt and Convertible Subordinated Debentures . . 8,178.7 7,029.9 6,238.1 3,278.7 4,285.2 2,952.8
Shareholders’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,475.0 7,639.3 6,662.4 5,562.8 5,371.4 5,004.6
Summarized Quarterly Financial Information
2002 2001
Fourth Third Second First Fourth Third Second First
($ in millions, except per share data) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
Interest Income . . . . . . . . . . . . . . . . $1,027.9 1,036.5 1,047.3 1,017.7 1,065.7 1,155.5 1,228.4 1,259.2
Net Interest Income. . . . . . . . . . . . . 698.5 677.7 678.0 646.2 629.0 608.0 607.7 588.4
Provision for Credit Losses . . . . . . . . 72.1 55.5 64.0 55.0 61.6 47.5 25.6 65.9
Merger-Related Loan Loss
Provision . . . . . . . . . . . . . . . . . . . — —————35.4 —
Merger-Related Charges . . . . . . . . . . — ————129.4 219.2 —
Income Before Income Taxes,
Minority Interest and
Cumulative Effect. . . . . . . . . . . . . 640.4 610.6 601.0 579.6 557.0 406.6 239.2 450.3
Net Income Available to
Common Shareholders . . . . . . . . . 423.4 416.6 404.1 390.0 385.5 279.4 128.7 299.4
Earnings Per Share . . . . . . . . . . . . . .73 .72 .69 .67 .67 .48 .22 .52
Earnings Per Diluted Share . . . . . . . .72 .70 .68 .66 .65 .47 .22 .51
(a) Per share amounts have been adjusted for the three-for-two stock splits effected in the form of stock dividends paid July 14, 2000 and April 15, 1998 and July 15, 1997.