Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Goldman Sachs U.S. Financial Services Conference 2009
21 slides from Fifth Third Bancorp's conference presentation, Dec 9, 2009
Slide 1: Goldman Sachs U.S. Financial Services Conference
Exhibit 99.1 Goldman Sachs U.S. Financial Services Conference Kevin Kabat Chairman, President & CEO December 9, 2009 Please refer to earnings release dated October 22, 2009 and 10-Q dated November 6, 2009 for further information, including full results reported on a U.S. GAAP basis © Fifth Third Ban
Slide 2: 3Q09 results vs. peers
3Q09 results vs. peers Metric Range Rank / 13 Peer average Seq. net interest income growth 4.5% 3 2.3% 1 (4.2%) 9.2% 17 bps 2 Seq. net interest margin growth (18 bps) 18 bps 2 7 bps 3.43% 3 Net interest margin 2.68% 4.36% 7 3.36% 7.0% 4 Tangible common equity ratio 4.0% 8.0% 3 6.0% 13.2% 5 Tier 1 ra
Slide 3: Pre-tax pre-provision earnings
Pre-tax pre-provision earnings Core PPNR trend Core PPNR reconciliation $700 4Q08 1Q09 2Q09 3Q09 100 Reported PPNR (GAAP) (488) 511 2,393 844 $600 46 Adjustments: 8 45 87 Gain on sale of Visa shares - - - (244) 106 $500 3 BOLI charges 34 54 - - 22 Gain from sale of processing interest - - (1,764) 6
Slide 4: 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 3Q09 NCO Ratios Coml Cons Total Discontinued
Slide 5: Commercial Real Estate
Commercial Real Estate CRE / Assets CRE / Loans HFI 40% 50% 45% 44% 35% 34% 41% 30% 40% 39% 30% 26% 35% 33% 32% 25% 25% 24% 30% 27% Peer average: 27% Peer average: 19% 23% 20% 25% 17% 17% 21% 19% 15% 20% 19% 18% 15% 13% 17% 13% 15% 11% 11% 15% 10% 9% 10% 5% 5% 0% 0% MI MTB RF ZION CMA KEY HBAN FITB
Slide 6: 3Q09 credit results
3Q09 credit results NPA ratio versus peers Net charge-off ratio versus peers 5.0% 3.2% 3.0% 4.0% 2.4% 3.0% 1.4% 2.0% 1.0% 0.0% 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 2008 2009 YTD FITB Peer Average FITB Peer Average Sequential NPA growth versus peers Year-over-year NPA growth versus peers 28%
Slide 7: Strong reserve position
Strong reserve position Industry leading reserve level Reserves / Total Loans 1. FITB 4.69 $2,500 2. KEY 4.00 4.69% 3. ZION 3.44 $2,000 729 4.28% 4. MI 3.08 3.72% 5. WFC 3.00 $1,500 3.31% 6. PNC 2.99 7. RF 2.83 2.41% 8. HBAN 2.77 $1,000 9. USB 2.64 1,627 415 196 478 283 10. STI 2.60 $500 11. BBT 2.2
Slide 8: Tier 1 common capital actions
Tier 1 common capital actions $2.0B $1B common equity issuance (6/4/09) $0.29B Visa sale — Completed upsized $1B common equity issuance ($750M at-the-market program launched 5/20/09) $1.0B Public — Significantly oversubscribed $1.1B common issuance Conversion of Series G convertible preferred stock
Slide 9: Performance vs. SCAP scenarios
Performance vs. SCAP scenarios $5,500 SCAP Supervisory Adverse Scenario (timing of supervisory losses estimated) Fifth Third’s realized credit losses have $5.0B been significantly below its SCAP $5,000 Fifth Third capitalized submitted baseline and more adverse for this level of losses scenarios $4,
Slide 10: Strong capital position
Strong capital position Tier 1 capital ratio (with and without TARP) Tangible common equity ratio 13.2% 13.0% 12.6% 12.6% 12.2% 12.2% Peer average w/ 11.1% 10.9% TARP: 11.1% 10.6% Peer average: 6.0% 10.0% 9.6% 9.5% 8.4% Peer average w/o TARP: 8.7% 8.0% 7.6% 11.1% 7.0% 6.9% 6.9% 6.6% 9.9% 9.9% 9.9% 9
Slide 11: Summary
Summary Aggressive management of Core franchise is solid Strong capital levels credit issues • Dedicated to serving the needs • Strong reserve coverage of • Successfully completed June of families and businesses for problem loans 2008 capital plan and SCAP more than 150 years capital actions • Aggre
Slide 12: 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
Slide 13: Appendix
Appendix 13 © Fifth Third Bank | All Rights Reserved
Slide 14: Net interest income
Net interest income Core NII and NIM 4.0% $900 • Trends in net interest income and net $800 interest margin compare favorably with 3.5% 3.37% 3.15% 3.33% peers 3.13% $700 2.92% 3.0% $600 – Stable NII in 4Q09 $500 2.5% • Expect continued expansion in NIM in $400 4Q09 2.0% $300 3Q08 4Q08 1Q09 2Q09 3Q0
Slide 15: Deposit share momentum
Deposit share momentum Affiliate 5/3 Deposit (08-09) 5/3 Market Share Name Deposit ($) (%) Share 2009 2008 • Continued focus on customer satisfaction Chicago 788,601 9.8% 4.0% 3.8% and building full Northeastern Ohio 606,708 17.0% 4.2% 3.8% relationships has given South Florida 579,342 21.1% 3.1% 2.
Slide 16: Loss mitigation effort impact on PPNR
Loss mitigation effort impact on PPNR • Commercial Special Assets Group — Approximately 275 full-time employees, compared with 100 at the beginning of 2009 — Special vertical teams and “war rooms” dedicated to existing and emerging problem areas 3Q07 3Q08 2Q09 3Q09 Credit related fee income: – Const
Slide 17: Consumer portfolio
Consumer portfolio Home Equity Mortgage Other Balance $12.4B Balance $8.2B Auto NPA + 90+ Ratio: 1.4% NPA + 90+ Ratio: 8.2% NCO Ratio: 2.6% NCO Ratio: 4.5% $9.0B NPA + 90+ Ratio 0.5% NCO Ratio 1.7% Brokered Direct Lots Resi Construct Card $2.0B $10.4B $0.7B $0.1B $2.0B NPA + 90+ Ratio NPA + 90+ Rati
Slide 18: Commercial portfolio
Commercial portfolio C&I Commercial Mortgage Commercial Construction Balance $26.2B Balance $12.1B Balance $4.1B NPA Ratio: 3.0% NPA Ratio: 8.0% NPA Ratio: 18.1% NCO Ratio: 2.5% NCO Ratio: 3.0% NCO Ratio: 8.1% Owner Occ’d Non-owner Occ’d Owner Occ’d Non-owner Occ’d $5.6B $6.5B $0.6B $3.5B NPA Ratio
Slide 19: Commercial credit summary
Commercial credit summary Portfolio comments Delinquency trends Loss trends 4.0% • 18% of 3Q09 losses on loans to auto dealers and companies in NPAs 30-89 90+ 5.03% real estate related industries 3.0% 3.70% – Loans to auto dealers of $1.2B, of which $0.8B are C&I loans; YTD NCO ratio on C&I portion:
Slide 20: Consumer credit summary
Consumer credit summary Portfolio comments Delinquency trends Loss trends • 29% FL concentration driving 66% of total losses 7.0% NPAs 30-89 90+ 5.17% 6.0% 4.38% • FL lots ($299M) running at 32% annualized loss rate (YTD) 5.0% 3.30% • Mortgage company originations targeting 95% salability 4.0% 3.16%
Slide 21: Strong liquidity profile
Strong liquidity profile Holding company unsecured debt maturities ($M) Holding Company cash at 9/30/09: $2.1B Expected cash obligations over the next 12 months 5,018 — $0 debt maturities — ~$32M common dividends — ~$205M preferred dividends – ~$35MM Series G dividend – ~$170MM TARP dividend 750 — ~
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