Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Q1 2010 Earnings Presentation
19 slides from Fifth Third Bancorp's earnings presentation, Apr 22, 2010
Slide 1: 1Q10 Credit Trends
Exhibit 99.3 1Q10 Credit Trends April 22, 2010 Please refer to earnings release dated April 22, 2010 for full results including those reported on a U.S. GAAP basis Fifth Third Bank | All Rights Reserved
Slide 2: Updated stress testing - process overview
Updated stress testing - process overview Similar process to that used in 2008 and SCAP processes; updated for actual performance and current economic expectations Moody’s “Base” and “Longer Recession and Weaker Recovery” case scenarios key economic assumptions Base Adverse Economic Assumptions* 201
Slide 3: Updated credit loss expectations vs. SCAP scenarios
Updated credit loss expectations vs. SCAP scenarios $5,500 Fifth Third Fifth Third’s realized credit losses $5,250 capitalized for this have been significantly below its level of credit losses SCAP submitted baseline and $5,000 more adverse scenarios under SCAP (plus $5.0B $4,750 surplus raised vs.
Slide 4: Credit by portfolio
Credit by portfolio* Commercial Commercial Commercial Total Residential Other Total Total loans & ($ in millions) C&I mortgage construction lease commercial mortgage Home equity Auto Credit card consumer consumer leases Loan balances $26,131 $11,744 $3,277 $3,388 $44,541 $7,918 $12,186 $10,180 $1,86
Slide 5: Portfolio performance drivers
Portfolio performance drivers No Participation In Performance Largely Driven By • Subprime Geography • Option ARMs • Florida and Michigan most stressed • Remaining Midwest and Southeast performance reflect economic trends Discontinued or Suspended Lending 1Q10 NCO Ratios Coml Cons Total Discontinued
Slide 6: Non-performing assets and net charge-offs: Product view
Non-performing assets and net charge-offs: Product view* Total NPAs Total NCOs * NPAs exclude loans held-for-sale. Net charge-offs exclude losses on loans sold or transferred to held-for-sale in 4Q08. During 1Q09 the Bancorp modified its nonaccrual policy to exclude TDR loans less than 90 days past
Slide 7: Non-performing assets and net charge-offs: Geographic view
Non-performing assets and net charge-offs: Geographic view* Total NPAs Total NCOs * NPAs exclude loans held-for-sale. Net charge-offs exclude losses on loans sold or transferred to held-for-sale in 4Q08. During 1Q09 the Bancorp modified its nonaccrual policy to exclude TDR loans less than 90 days pa
Slide 8: Troubled debt restructurings (TDR) overview
Troubled debt restructurings (TDR) overview Successive improvement in vintage performance during 2008 and 2009, even as volume of modification increased TDR performance has improved in newer vintages Fifth Third’s mortgage portfolio TDRs have redefaulted at a lower Mortgage TDR 60+ redefault trend b
Slide 9: Nonperforming assets
Nonperforming assets* Other $96M 4% • Total NPAs of $3.1B C&I^ • Homebuilder/developer NPAs of $520M; $843M represent 17% of total NPAs 27% CRE • Commercial NPAs of $2.4B; down 5% from $1.6B the previous quarter 50% • Consumer NPAs of $715M; up 1% from the Residential previous quarter $590M 19% C&I^
Slide 10: Nonperforming loan rollforward
Nonperforming loan rollforward Commercial 1Q09 2Q09 3Q09 4Q09 1Q10 Beginning NPL amount 1,406 1,937 2,110 2,430 2,392 New nonaccrual loans 799 544 832 602 405 Paydowns, transfers and sales (157) (190) (246) (332) (425) Charge-offs (111) (181) (266) (308) (200) Ending Commercial NPL 1,937 2,110 2,430
Slide 11: Commercial & industrial
Commercial & industrial* Credit trends Loans by geography C&I ($ in millions) 1Q09 2Q09 3Q09 4Q09 1Q10 Balance $28,617 $28,409 $26,175 $25,683 $26,131 90+ days delinquent $131 $142 $256 $118 $63 as % of loans 0.46% 0.50% 0.98% 0.46% 0.24% NPAs $675 $634 $790 $781 $788 as % of loans 2.36% 2.23% 3.02%
Slide 12: Commercial mortgage
Commercial mortgage* Credit trends Loans by geography Commercial mortgage ($ in millions) 1Q09 2Q09 3Q09 4Q09 1Q10 Balance $12,560 $12,407 $12,105 $11,803 $11,744 90+ days delinquent $124 $131 $184 $59 $44 as % of loans 0.99% 1.06% 1.52% 0.50% 0.38% NPAs $718 $791 $968 $985 $1,002 as % of loans 5.72
Slide 13: Commercial construction
Commercial construction* Credit trends Loans by geography Commercial construction ($ in millions) 1Q09 2Q09 3Q09 4Q09 1Q10 Balance $4,745 $4,491 $4,147 $3,784 $3,277 90+ days delinquent $49 $60 $168 $16 $9 as % of loans 1.02% 1.34% 4.04% 0.44% 0.28% NPAs $597 $735 $751 $707 $569 as % of loans 12.59%
Slide 14: Homebuilders/developers
Homebuilders/developers* Credit trends Loans by geography Homebuilders/developers MI FL 17% ($ in millions) 1Q09 2Q09 3Q09 4Q09 1Q10 22% Balance $2,322 $2,102 $1,846 $1,563 $1,324 90+ days delinquent $37 $53 $79 $19 $6 as % of loans 1.59% 2.51% 4.29% 1.19% 0.43% NPAs $554 $613 $600 $548 $520 Other 3
Slide 15: Residential mortgage
Residential mortgage Credit trends Loans by geography Residential mortgage ($ in millions) 1Q09 2Q09 3Q09 4Q09 1Q10 Balance $8,875 $8,489 $8,229 $8,035 $7,918 90+ days delinquent $231 $242 $198 $189 $157 as % of loans 2.60% 2.85% 2.41% 2.35% 1.98% NPAs $475 $475 $484 $523 $521 as % of loans 5.35% 5.
Slide 16: Home equity
Home equity Credit trends Brokered loans by geography Direct loans by geography Home equity - brokered FL FL 3% Other 9% ($ in millions) 1Q09 2Q09 3Q09 4Q09 1Q10 MI MI Other 21% 1% 21% Balance $2,225 $2,125 $2,028 $1,948 $1,906 NC 20% 90+ days delinquent $42 $34 $38 $33 $29 TN 5% as % of loans 1.91%
Slide 17: Florida market
Florida market* Deterioration in real estate values having effect on credit trends as evidenced by increasing NPA/NCOs in real estate related products % of % of NCOs % of Homebuilders, developers tied to ($ in millions) Loans (bn) FITB NPAs (mm) FITB (mm) FITB Commercial loans 1.7 7% 128 16% 27 16%
Slide 18: Michigan market
Michigan market* Deterioration in home price values coupled with weak economy impacting credit trends due to frequency of defaults and severity % of % of NCOs % of ($ in millions) Loans (bn) FITB NPAs (mm) FITB (mm) FITB Economic weakness impacts Commercial loans 3.9 15% 143 18% 44 27% commercial re
Slide 19: Cautionary statement
Cautionary statement This report may contain statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6