Fifth Third announced that second quarter net income was $376 million, or $0.40 per share, up from $328 million, or $0.35 per share, for the same year-ago period. Analysts polled by Thomas Reuters had expected earnings per share of $0.35.

The company said that second-quarter results included the benefit of $56 million pre-tax gain (~$36 million after-tax)on the valuation of the warrant Fifth Third holds in Vantiv.

Fifth Third noted that credit trends remain favorable with second-quarter net charge-offs of $181 million versus last year NCOs of $304 million. The company said this was the lowest NCO level since fourth quarter 2007.

The second-quarter’s provision expense of $71 million compared with last quarter’s provision of $91 million and last year’s provision of $113 million

“Earnings trends remained positive in the second quarter of 2012. Results came in better than we had anticipated and followed a very strong first quarter,” said Kevin Kabat, president and CEO of Fifth Third Bancorp. “Mortgage results remained strong. Our capabilities and strength of market position has enabled us to capture significant business as we assist our customers in taking advantage of historically low interest rates. Corporate banking revenue increased 5% sequentially as loan production and ancillary business volume remained healthy during the quarter.”

To view Fifth Third’s earnings release, click here.