Fifth Third Bancorp reported Q3/16 net income, after preferred dividends, was $501 million, up 37% or $135 million from $366 million in Q3/15. The bank noted an 18% gain ($127 million) in noninterest income, primarily as a result of a gain from the termination of a Vantiv tax receivable agreement and a 49% drop ($76 million) in loan loss provisions.

The following highlights were excerpted from the Fifth Third news release:

• Q3/16 operating lease equipment of $771 million was up 13% from $680 million in the same quarter a year earlier.
• The net interest margin in Q3 of 2.88% was essentially flat compared to the same quarter in 2015 (2.89%).
• The Q3/16 provision for loan and lease losses of $80 million was down 49% from $156 million a year earlier. The bank noted the $76 million decrease was impacted by improving criticized assets.
• Q3/16 net charge-offs were $107 million compared $188 million in Q3/15 which included $102 million related to the restructuring of a student loan backed commercial credit.

Greg D. Carmichael, president and CEO of Fifth Third said, “Our third quarter results were strong despite the tepid economic environment. Higher net interest income, stable underlying fee revenue, and lower expenses whelp us achieve improved returns for our shareholders.”