Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Goldman Sachs U.S. Financial Services Conference 2014
8 slides from Fifth Third Bancorp's conference presentation, Dec 9, 2014
Slide 1: Goldman Sachs U.S. Financial Services Conference
Exhibit 99.1 Goldman Sachs U.S. Financial Services Conference Tayfun Tuzun Executive Vice President & Chief Financial Officer December 9, 2014 Refer to earnings release dated October 16, 2014 and 10-Q dated November 7, 2014 for further information. © Fifth Third Bank | All Rights Reserved
Slide 2: Business composition at Fifth Third
Business composition at Fifth Third Commercial Branch Consumer Wealth Banking Banking Lending Management Footprint In footprint markets In footprint markets National commercial banking National consumer lending Business Commercial Bank Retail Bank Mortgage Private Bank Lines Cards Auto Retail Broker
Slide 3: Overview of our Commercial Bank
Overview of our Commercial Bank • Approximately 33% of Commercial revenue driven by National business and 67% in footprint at 3Q14 – Compared with approximately 25% National and 75% in footprint at 1Q11 In footprint markets National commercial banking National commercial hub cities Commercial loan p
Slide 4: Strategic direction in commercial banking
Strategic direction in commercial banking Strengthening vertical Increasing Growing expertise relationships utilization of with larger non-credit companies offerings Selection of verticals Alignment of risk appetite based on market size, identified non-credit Areas of historical and stronger post-cr
Slide 5: Changing profile of commercial lending
Changing profile of commercial lending Commercial Loan Portfolio 8 7% Noninterest Income Composition 6% 4% BL Fees 7 1% 1% 5% 4% Syndication Fees 6 4% FX Revenue 27% Institutional Sales 3% 14% 5 LOC Fees 2% 16% Derivative Income 17% 4 1% Lease Remarketing PD Yield / 16% Commodities Revenue Rating Ot
Slide 6: Changing trajectory of earnings composition
Changing trajectory of earnings composition • In the long-run, focus on non-credit revenue streams and continued upgrade of portfolio credit profile is likely to favor growth rates in fee items relative to margin income Growth rates in margin income in the transition to higher interest rates are exp
Slide 7: Conclusion
Conclusion • Current capital levels in banking combined with current pricing of credit risk require shift in corporate lending strategy Minimum stress scenario capital levels serve as binding constraint Optimal capital management requires changes in borrower risk profile Relationship-focused to incl
Slide 8: Cautionary statement
Cautionary statement This report contains 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 pr
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