Fifth Third (FITB) to Shut Down 44 Branches in Chicago Area

Zacks Equity Research

Fifth Third Bancorp FITB will be shuttering about 44 branches that are located in close vicinity to each other in the Chicago area next month, to save costs.

The move comes post MB Financial buyout in May 2018. During that time the company had expected to close 50 branches. It noted that 25 of the branches are located within one mile of each other and 18 are only one-half mile apart.

Per an article by The Chicago Tribune, branch closings include 19 Fifth Third branches and 25 former MB Financial branches. Eight of those branches are in the city of Chicago and the rest are in the suburbs. Employees of the affected branches will be moved to other facilities.

The bank sent notices to customers with information regarding branches that will shut down, and provided alternative options to continue banking.

Though the acquisition has made Fifth Third undertake several restructuring moves, it is expected to deliver significant financial benefits to the company. The merged entity is likely to record an internal rate of return of about 18.5% and be accretive to Fifth Third’s operating earnings in the first year. Moreover, accretion of about 7% is projected in the second year on realization of full cost savings.

Fifth Third’s efforts to expand geographically and bolster operations bode well for its financials. Further, it remains focused on strategic investments through North Star initiatives, which are expected to boost revenue growth, save expenses and drive efficiency.

The stock has gained around 21% over the past six months compared with 12% growth of the industry.

Currently, Fifth Third carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Citigroup C has witnessed slight upward estimate revision over the past 60 days. Also, the company’s shares have risen nearly 30% in the past six months. It has a Zacks Rank #2 (Buy) at present.

BankUnited’s BKU earnings estimates for the current year have been revised 2.5% upward over the past 60 days. Also, the company’s shares have risen 15.2% in the past six months. It carries a Zacks Rank #2.

The Zacks Consensus Estimate for M&T Bank Corporation MTB earnings for the current year has been revised slightly upward over the past 60 days. Also, the company’s shares have risen nearly 18% in the past six months. It currently carries a Zacks Rank of 2.

This Could Be the Fastest Way to Grow Wealth in 2019

Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.

These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.

Click here to see these breakthrough stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Citigroup Inc. (C) : Free Stock Analysis Report
BankUnited, Inc. (BKU) : Free Stock Analysis Report
Fifth Third Bancorp (FITB) : Free Stock Analysis Report
M&T Bank Corporation (MTB) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research