Is Fifth Third Bancorp a Buy?
Fifth Third Bancorp's (NASDAQ: FITB) situation was a bit hard to read when it first released some contradictory metrics in its first-quarter financials. The bad news was the bank's profits dropped 96% in the quarter. Add in some potentially problematic litigation, and it has been trading below its peers for much of the time since the coronavirus pandemic struck the economy.
But the bank also set aside a lot of cash to cover future expected loan losses -- more so than its competitors -- and still managed to turn a profit. Its portfolio does not look to be crazily impacted by the pandemic, and its low price to tangible book value (P/TBV) could make it a good acquisition candidate when mergers and acquisitions (M&A) activity resumes if the bank stays at those levels. Fifth Third still looks like a buy.
Source Fool.com
