Daytrading, Eminis, Forex trading, Swing Trading TOP STORY - 491606

The company now sees fourth quarter earnings of approximately $0.06 to $0.08 per share, much below Street view.

On average, 21 analysts polled by First Call/Thomson Financial expect the company to report fourth quarter earnings of $0.66 per share on revenues of $1.39 billion.

The Cincinnati, Ohio-based company intends to sell approximately $11.5 billion in available-for-sale securities. It plans to reinvest approximately $2.

8 billion in available-for-sale securities that are more efficient when used as collateral. The company plans to reduce approximately $8.7 billion in wholesale borrowings at a weighted average rate paid of 5.

30% and terminate approximately $1.1 billion of repurchase and reverse repurchase agreements. According to the company, these actions are expected to reduce the size of the Company's available-for-sale securities portfolio to a size that is more consistent with its liquidity, collateral and interest rate risk management requirements.

It will also improve the composition of the balance sheet with a lower concentration in fixed-rate assets, lower wholesale borrowings to reduce leverage and better position Fifth Third for an uncertain economic and interest rate environment, the company noted. These actions are expected to result in a benefit to net interest income in 2007, given current market rate expectations, of approximately $110 to 120 million, and a benefit to the net interest margin in 2007 of approximately 35-40 bps, the company noted. The hedges will reduce net interest income in 2007 by approximately $40 million and reduce net interest margin by about 5 bps.

For the full year 2006, the company expects earnings per share to be approximately $2.07 to $2.09.

Analysts expect full year earnings to be $2.68 per share on revenues of $5.48 billion.

The company noted that before the effect of the above-mentioned items, it expects fourth quarter 2006 earnings to be lower than the third quarter. Net interest income is expected to be modestly higher than in the third quarter, while non-interest income is expected to be relatively flat compared with the third quarter. The company added that fourth quarter other non-interest income is expected to exhibit mid-single digit percentage growth over the same quarter last year and a mid-to-high single-digit decline from last quarter.

Total fourth quarter deposit service revenues are expected to be stable relative to the same quarter last year, while corporate banking revenues, compared to the same quarter last year, are expected to exhibit a low- to mid-teens digit decline. Net charge-offs, as a percentage of average loans and leases, are expected to increase to the high 40s to low 50s basis point range. For the third quarter, results of which were announced on October 19, the company reported of $377 million or $0.

68 per share, compared to net income of $395 million or $0.71 per share in the same period last year. Total revenue rose to $1.

38 billion from $1.37 billion a year ago. FITB closed the day's regular trade at $40.

86, up $0.07 or 0.17%, on 914,052 shares.

In the extended session, the stock dropped $0.36 and traded at $40.50.

For the past one year, the stock has been trending in the range of $35.86 - $42.50.