Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Lehman Brothers Financial Services Conference 2006
15 slides from Fifth Third Bancorp's conference presentation, Sep 12, 2006
Slide 1: Lehman Brothers Financial Services Conference
Lehman Brothers Financial Services Conference Christopher G. Marshall Chief Financial Officer September 12, 2006 Exhibit 99.1
Slide 2: Agenda
Lehman Brothers Financial Services Conference, September 2006 2 Agenda Historical context 2006 trends Open issues and decisions
Slide 3: Historical context: extraordinary growth
Lehman Brothers Financial Services Conference, September 2006 3 1990 2006 CAGR Assets $8 billion $106 billion 18% Net income $120 million $1.5 billion* 18% Earnings per share $0.41 $2.68* 13% Market cap $1.3 billion $22 billion # 20% Branches 1,138 11% ATMs 2,034 14% Rank, U.S. # 50 - # 11 * 1H06 an
Slide 4: Three year performance: challenging
Lehman Brothers Financial Services Conference, September 2006 4 2002 Stock price $68.95 Market cap $40B ROE 18.4% NIM 3.96% Efficiency ratio 47.5% 2006 Stock price $38.80* Market cap $22B* ROE 16.0% NIM 3.01% Efficiency ratio 55.3% Three year performance: challenging * as of 9/07/06.
Slide 5: Recent performance: securities portfolio
Lehman Brothers Financial Services Conference, September 2006 5 2002 2003 2004 2005 2Q06 Avg. Securities Yield Wholesale borrowings* Margin pressure primarily related to fixed rate securities funded with floating rate liabilities Average Securities and Spread * Interest bearing liabilities excluding
Slide 6: Strong core business results (YTD 2006 vs. YTD 2005)
Lehman Brothers Financial Services Conference, September 2006 6 Strong core business results (YTD 2006 vs. YTD 2005) Source: SNL Financial. *Median of top 20 banks (excluding trust banks, C, JPM); median net income of six processing companies (FDC, ADS, FISV, GPN, TSS, FIS). Fifth Third Industry* Lo
Slide 7: Strong core business results (Q2 2006 vs. Q2 2005)
Lehman Brothers Financial Services Conference, September 2006 7 Strong core business results (Q2 2006 vs. Q2 2005) -31% 5% 17% 29% 56% -13% 6% 11% 12% 29% Net Income Growth Revenue Growth Investment Advisors Processing Solutions Branch Banking Commercial Banking Consumer Lending Source: Second quart
Slide 8: Strong deposit growth performance
Lehman Brothers Financial Services Conference, September 2006 8 New Locations Within 5/3 Footprint 6/04 – (deposits in millions) Avg. Total Deposits/ Holding Company Deposits Locations Branch Bank of America 588.7 16.9 Fifth Third 1062.4 16.3 TCF Financial 163.4 14.9 Independent Bank 145.8 14.6 Roya
Slide 9: Deposit rates by product above peers
Lehman Brothers Financial Services Conference, September 2006 9 2.90 KEY USB RF NCC PNC CMA STI BBT FITB 4.00 USB PNC STI CMA BBT FITB KEY NCC MI Deposit rates by product above peers… Source: Company reports, if disclosed. 2.39 USB PNC STI BBT RF FITB Q206 Interest Checking Rates Q206 Savings Rates
Slide 10: Weighted interest-bearing core deposit rates in line with peers
Lehman Brothers Financial Services Conference, September 2006 10 Weighted interest - bearing core deposit rates in line with peers — due to higher proportion of 5/3rd balances in lower cost transaction accounts (vs. CDs) …but in line overall given low-cost emphasis 3.08 USB STI RF PNC CMA BBT KEY FI
Slide 11: Tough decisions
Lehman Brothers Financial Services Conference, September 2006 11 Tough decisions * Earnings effect vs. 1Q04 annualized; securities above 17.5% of earning assets, at spread calculated as average securities yield less weighted average wholesale borrowing cost. # Actual expense base vs. expenses if gro
Slide 12: Mid-quarter update — expectations
Lehman Brothers Financial Services Conference, September 2006 12 Mid-quarter update — expectations Core results slightly lower than 2Q06 Solid noninterest income, expense trends, mitigated by higher charge-offs Net interest income expected to be relatively flat; NIM down 3-5 bps Loan growth in mid-h
Slide 13: Open issues and decisions
Lehman Brothers Financial Services Conference, September 2006 13 Balance sheet rationalization Mortgage/home equity Indirect auto Denovos Credit cards Open issues and decisions Conservative, “vanilla” capital structure “Underwater” securities, liability sensitivity Share repurchases Alternative fina
Slide 14: Fifth Third: Moving forward
Lehman Brothers Financial Services Conference, September 2006 14 Fifth Third: Moving forward Achieving the proper balance between growth and profitability Capitalizing on our strengths and developing plans to address areas of weakness Communicating clearly with our investors Delivering on our promis
Slide 15: Cautionary statement
Lehman Brothers Financial Services Conference, September 2006 15 Cautionary statement This presentation may contain forward-looking statements about Fifth Third Bancorp and/or the company as combined with acquired entities within the meaning of Sections 27A of the Securities Act of 1933, as amended,
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