Fifth Third Bank 2012 Annual Report Download - page 8
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Vantiv, whose market capitalization was $4.6 billion
at year-end. is is a valuable stake relative to
our market capitalization and we have signicant
exibility in our future actions and our options for
deploying that capital.
Our strong earnings results produce high rates of
internal capital generation, which have been supple-
mented by the Vantiv gains. Our capital levels
substantially exceed required regulatory well-capital-
ized minimums and proposed future standards.
ese characteristics position Fih ird with the
ability to distribute excess capital to shareholders
while maintaining already strong capital levels. In
2012, we increased our quarterly dividend to $0.10,
which moved us closer to levels consistent with the
Federal Reserve’s near-term dividend payout ratio
guidance of 30 percent. In addition, under our 2012
capital plan approved during the Federal Reserve’s
Comprehensive Capital Analysis and Review, we
repurchased $475 million of common shares and also
repurchased $175 million of common shares as a
result of gains on the sale of Vantiv shares. Despite
these repurchases, our Tier 1 common ratio* in-
creased 16 bps in 2012 to 9.5 percent, and our Tier 1
risk-based capital ratio was 10.7 percent at year-end
compared with the 6 percent regulatory well-capital-
ized minimum.
We believe we are well-positioned to continue the
momentum reected in a protable 2012, and
our business model has a demonstrated ability to
generate organic growth even in a challenging
environment. e economy is recovering, albeit
slowly, and we are well-suited to take advantage of
marketplace developments and opportunities. Our
employees are determined, ready and able to meet
the demands of the environment and I thank them
for their dedication to Fih ird, our customers and
our shareholders. Our workforce is more engaged
than ever and is committed to providing a top-notch
customer experience that incorporates customers’
input and delivers innovative solutions. We share a
vision for Fih ird to be the one bank that people
most value and trust. As we work to achieve this
vision, I am condent that through a thoughtful,
straightforward and balanced approach, our
Company will be an industry leader into the future.
Sincerely,
Kevin T. Kabat
Vice Chairman and Chief Executive Ocer
February 2013
6 * Non-GAAP measure. For further information, see the Non-GAAP Financial Measures section of MD&A.
We believe we are well-positioned to continue the
momentum reflected in a profitable 2012, and our
business model has a demonstrated ability to generate
organic growth even in a challenging environment.