Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Morgan Stanley US Financials, Payments, & CRE Conference 2024
18 slides from Fifth Third Bancorp's conference presentation, Jun 10, 2024
Slide 1: Morgan Stanley US Financials, Payments, & CRE Conference
© Fifth Third Bancorp | All Rights Reserved © Fifth Third Bancorp | All Rights Reserved Morgan Stanley US Financials, Payments, & CRE Conference Bryan Preston Chief Financial Officer June 11, 2024
Slide 2: Forward-looking statements
© Fifth Third Bancorp | All Rights Reserved This presentation 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,
Slide 3: Top performing regional bank with local scale and national reach
© Fifth Third Bancorp | All Rights Reserved Midwest footprint (branch count in white) Major FITB markets 2 with a top 5 deposit share London office Leading position in the markets we compete in 3 Key Southeast MSAs of focus Toronto office Top performing regional bank with local scale and national re
Slide 4: A simple, diversified business portfolio
© Fifth Third Bancorp | All Rights Reserved Commercial Banking Lending / Deposits / Capital Markets / Commercial Payments & Treasury Management $68B loans $64B deposits Consumer & Small Business Banking Wealth & Asset Management Business Offerings Loans / Deposits $4B loans $11B deposits $45B loans
Slide 5: Driving to consistently generate top quartile results
© Fifth Third Bancorp | All Rights Reserved 1.23% Peer 7 Peer 2 x Peer 5 Peer 8 Peer 4 Peer 9 Peer 1 Peer 3 Peer 10 Peer 11 Peer 6 15.3% Peer 7 Peer 2 x Peer 1 Peer 8 Peer 4 Peer 3 Peer 5 Peer 9 Peer 10 Peer 11 Peer 6 60.5% Peer 9 Peer 6 x Peer 10 Peer 8 Peer 7 Peer 3 Peer 4 Peer 11 Peer 1 Peer 2 Pe
Slide 6: Leading to top returns for our shareholders
© Fifth Third Bancorp | All Rights Reserved Leading to top returns for our shareholders 6 Total shareholder return Source: Bloomberg; Results exclude FCNCA as they participated in an FDIC assisted acquisition. Top performer in both a low-rate and rising rate environment Trailing TSR as of 5/31/2024;
Slide 7: Disciplined execution guided by core principles
© Fifth Third Bancorp | All Rights Reserved Disciplined execution guided by core principles Stability Profitability Growth Consistent and disciplined management, with a long-term focus throughout the company 7 • Resilient balance sheet positioning • Strong credit profile • Diverse fee mix with high
Slide 8: High concentration of retail insured and commercial operating deposit balances
© Fifth Third Bancorp | All Rights Reserved Manufacturing Other services Other financial services Healthcare Professional services Public administration Mortgage finance & other banking Insurance 7% 7% 7% 8% 8% 8% 8% 9% 8 High concentration of retail insured and commercial operating deposit balances
Slide 9: Maintaining top quartile deposit density while expanding branch network in the Southeast
© Fifth Third Bancorp | All Rights Reserved 30% 32% 35% 36% 36% 41% 43% 46% 46% 57% 57% 63% 75% 26% 34% 21% 43% 14% 3% 23% 22% 23% 6% 30% 14% 14% 35% 13% 30% 20% 12% 23% 20% 29% 18% 17% 11% 18% 8% Peer 12 Peer 11 Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 x Peer 1 MSA Rankings 1
Slide 10: Well-positioned to further market share gains in high-growth Southeast
© Fifth Third Bancorp | All Rights Reserved • Opened 100+ branches in Southeast markets over last 5 years • Added 2 nd most new branches in the Southeast over the past 3 years 164 101 Well-positioned to further market share gains in high- growth Southeast 1 Data sourced from S&P Global Market Intell
Slide 11: De Novo program is generating differentiated long-term growth
© Fifth Third Bancorp | All Rights Reserved 257 164 101 69 5 De Novo program is generating differentiated long-term growth 11 2018 Continuous improvement leading to differentiated results 2024 Market identification Site identification Support • Focus on vendor indices and ad-hoc process for expansio
Slide 12: Strong liquidity and capital position
© Fifth Third Bancorp | All Rights Reserved 12 Strong liquidity and capital position Liquidity position $ in billions Fed Reserves Unpledged Investment Securities Available FHLB Borrowing Capacity Current Fed Discount Window Availability Total ~$22 ~$20 ~$11 ~$54 ~$107 12/31/23 Available BTFP Capaci
Slide 13: CRE portfolio is well-positioned
© Fifth Third Bancorp | All Rights Reserved 41% 37% 36% 30% 26% 22% 17% 16% 16% 15% 14% 14% 13% Peer 12 Peer 11 Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 x Peer 1 CRE portfolio is well-positioned 13 Comparing CRE portfolios relative to peers 1 Source: FR Y-9C filings; CRE inclu
Slide 14: Intentionally diversifying fee revenue to perform well in any environment
© Fifth Third Bancorp | All Rights Reserved Intentionally diversifying fee revenue to perform well in any environment • Total adjusted fee revenue accounted for ~34% of total adjusted revenue for the last twelve months ending 3/31/24 • Focused on diversified revenue to lessen cyclical impacts, with
Slide 15: Differentiated Commercial Payments business drives commercial deposit franchise growth
© Fifth Third Bancorp | All Rights Reserved 0.05% 0.06% 0.06% 0.08% 0.08% 0.10% 0.10% 0.10% 0.11% 0.13% 0.15% 0.19% 0.41% Peer 12 Peer 11 Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 x Differentiated Commercial Payments business drives commercial deposit franchise growth 15
Slide 16: Disciplined expense management and productive labor force
© Fifth Third Bancorp | All Rights Reserved 2.7% 5.8% x Peer average $200 $185 $176 $163 $157 $155 $152 $145 $144 $142 $106 $95 x Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 16 Disciplined expense management and productive labor force Generating top-quartile effici
Slide 17: Current expectations 2Q24 compared to 1Q24
© Fifth Third Bancorp | All Rights Reserved stable to up 1% Noninterest expense 1 down ~6% (1Q24 baseline: $1.304BN) Net charge-off ratio 35 – 45 bps Effective tax rate 22 – 23% 1 Non-GAAP measure: see forward-looking statements on page 2 of this presentation regarding forward-looking non-GAAP measu
Slide 18: Why Fifth Third
© Fifth Third Bancorp | All Rights Reserved ✓ Well positioned to navigate the potential capital and liquidity regulatory changes ✓ Well-diversified and resilient balance sheet to provide stability in uncertain environments ✓ Consistent investments to generate balanced and growing revenue streams whi
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