Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Barclays Americas Select Franchise Conference 2022
44 slides from Fifth Third Bancorp's conference presentation, May 9, 2022
Slide 1: Barclays Americas Select Franchise Conference
1 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Barclays Americas Select Franchise Conference Tim Spence President May 10, 2022
Slide 2: Cautionary statement
2 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Cautionary statement 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
Slide 3: Living our purpose guided by our vision and values
3 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Living our purpose guided by our vision and values Our Vision Be the One Bank people most value and trust Our Core Values Our Purpose To improve the lives of our customers and the well-being of our communities Work as One Bank
Slide 4: The Fifth Third value proposition
4 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved The Fifth Third value proposition A leading U.S. financial institution in a large and diverse market A fundamentally transformed bank from a decade ago, with a track record of financial excellence Strategically positioned to c
Slide 5: One of the largest U.S. financial institutions across lending, deposits, investments, and payments
5 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved One of the largest U.S. financial institutions across lending, deposits, investments, and payments Note: Data as of 1Q22, except AUM data where most recent available data was used; Rankings consist of commercial banks and excl
Slide 6: A simple, diversified business portfolio
6 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Commercial Banking 45% Credit, cash management, and other financial solutions to large and middle market business and government and professional customers $3.0B total revenue $66B loans $60B deposits A simple, diversified bus
Slide 7: Well-positioned in a large addressable market
7 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Well-positioned in a large addressable market Regional footprint (branch count in white) Out of footprint corporate and middle market banking office Major FITB markets1 with a top 5 deposit share 1MSAs with $5BN+ in capped dep
Slide 8: A recognized ESG leader among peers
8 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved A recognized ESG leader among peers Recent actions Third-party recognitions Aligned executive compensation to ESG topics ESG Funding Modifier added to 2022 Variable Compensation Plan Established sustainability office Leading c
Slide 9: A significantly different bank from a decade ago
9 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 14% 12% 8% 14% 11% 27% 14% 1Q12 LTM Commercial banking Commercial deposit fees Consumer deposit fees W&AM Card & Processing Leasing Mortgage banking Other noninterest income 20% 15% 5% 19% 13% 9% 8% 12% 1Q22 LTM 1.64% 0.46% 1Q
Slide 10: A track record of delivering on our commitments
10 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved A track record of delivering on our commitments 1 Differentiating our brand and customer experience 2 Optimizing the balance sheet 3 Driving fee income growth 4 Strategic expense management 2016 long-term commitments Select p
Slide 11: Leadership position in manufacturing lending
11 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 6% 10% 10% 12% 14% 15% 18% 21% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 X Strategically positioned to win as firms strengthen supply chains, onshore production for the US market Major rail freight hub Leadership posit
Slide 12: Expanding presence to take market share in high growth Southeast metro areas
12 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 64% 14% 22% Midwest ex. Chicago Chicago Southeast Expanding presence to take market share in high growth Southeast metro areas Key Southeast MSAs of focus Represents a FITB Southeast retail market for 10+ years Well-positione
Slide 13: Growing households through digital product innovation
13 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Growing households through digital product innovation • Launched in 2021, Fifth Third’s Momentum Banking consumer product suite is unparalleled among peers • Offering combines the best of fintechs and traditional banks (Early
Slide 14: Treasury management solutions delivering client insights, automation and efficiency
14 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved • ~9,500 TM clients; TM relationships with 31 of Fortune 100 companies • Fifth Third has a #2-8 market share rank for most TM products • ~1/3 of TM business consists of Managed Services, which continues to grow at a significa
Slide 15: FinTech acquisition Provide accelerates SME growth
15 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved FinTech acquisition Provide accelerates SME growth Overview • Provide is the leading fintech in the healthcare practice finance segment • Digital capabilities delivers best-in-class experience and speed to close • 3+ year rel
Slide 16: FinTech acquisition Dividend Finance provides entry to consumer point-of-sale financing
16 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved FinTech acquisition Dividend Finance provides an entry point to high growth consumer point-of-sale financing • Founded in 2013 and headquartered in San Francisco, Dividend Finance is a national tech-enabled point-of-sale fina
Slide 17: Balance sheet management focused on long-term outperformance
17 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Balance sheet management focused on long-term outperformance Asset sensitive, with continued focus on hedging risks over the long-term Prudent deployment of excess liquidity to generate long-term value Disciplined credit unde
Slide 18: Fifth Third value proposition
18 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Fifth Third value proposition Generating strong relationship growth in all our markets with a focus on our Southeast expansion and on continually improving the digital experience Diversifying and growing fee revenues to suppo
Slide 19: Appendix
19 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Appendix
Slide 20: ESG priorities and metrics
20 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved ESG priorities and metrics Addressing climate change Promoting inclusion and diversity Demonstrating our commitment to employees Strengthening our communities Keeping the customer at the center $180MM Neighborhood Investment
Slide 21: Dividend Finance acquisition is compelling on several dimensions
21 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Dividend Finance acquisition is compelling on several dimensions ✓ Best-in-class lending experience to meet customers’ evolving preferences ✓ Furthers Fifth Third’s existing indirect consumer POS capabilities with a leading,
Slide 22: Operational sustainability targets
22 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Operational sustainability targets Original 2017-2022 target performance New 2030 targets Fifth Third has been carbon neutral in our operations1 since 2020 1For Fifth Third’s Scope 1, Scope 2 and business travel under Scope 3
Slide 23: Diversified commercial loan portfolios
23 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 18% 12% 11% 7% 7% 6% 5% 5% 4% 4% 3% 2% 2% 14% Metal Transportation equipment Chemical Food Machinery Computer & Electronic Plastics & Rubber Beverage & tobacco Paper Electrical equipment Furniture & related Nonmetallic minera
Slide 24: Commercial revolver rates by portfolio
24 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved $11 $16 $13 $11 $11 $11 $11 $11 $13 $14 $14 35% 52% 40% 35% 34% 32% 32% 31% 33% 36% 37% 0 2 4 6 8 10 12 14 16 18 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Apr. 22 Commercial utilization rate $27 $35 $28 $25 $24 $23 $2
Slide 25: Specialized industry verticals generate distinctive financial results
25 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 2015 1Q22 Specialized industry verticals generate distinctive financial results and risk management Healthcare ~$4.1B Energy (incl. Renewables) ~$3.9B Entertainment, Lodging and Leisure ~$1.8B Retail ~$4.9B Technology Media T
Slide 26: Focused on growing middle market relationships
26 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Midwest ex. Chicago Southeast Chicago Expansion marketsTotal middle market 2020 2021 2022E Focused on growing middle market relationships to improve profitability with strong credit quality Go to market strategy • Strong loca
Slide 27: Expanding capital markets capabilities to create value for our clients
27 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 56% 92% Financial Risk Management (FRM) Strategic Advisory & Investment Banking (incl. M&A) Expanding capital markets capabilities to create value for our clients Growing fees across the Capital Markets business Institutional
Slide 28: Stable core deposit funded balance sheet
28 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 0.04% Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 FITB Peer 2 Peer 1 56% 36% 8% Branch Banking Commercial Banking Wealth & Asset Management 92% 91% 91% 82% 75% 71% 72% 71% 70% 69% 70% 60% 70% 80% 90% 100% 3Q19 1Q
Slide 29: Cash flow hedges continue to protect NIM
29 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved $6 4Q29 $12 $12 $12 $12 $11 $11 $11 $7 $7 $6 $5 $5 $1 $1 $1 $5 $5 $6 $6 $6 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $14 $11 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Floors Fo
Slide 30: Balance sheet positioning as of 3/31/22
30 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 0% 100% Fix | 0% Variable 80% Fix | 20% Variable Balance sheet positioning as of 3/31/22 Investment portfolio $26.0BN fixed 3 | $46.3BN variable 1,2 Commercial loans1,2,3 Consumer loans1 Long-term debt4 $36.2BN fixed | $6.7BN
Slide 31: Well positioned to benefit from higher rates
31 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Well positioned to benefit from higher rates Estimated NII sensitivity profile and ALCO policy limits Estimated NII sensitivity with demand deposit balance changes Estimated NII sensitivity with deposit beta changes NII is as
Slide 32: Strong capital and liquidity position
32 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Strong capital and liquidity position 7.2% 9.3% 8.1% 3Q07 1Q22 DFAST 2020 Severely Adverse Scenario Minimum CET1 Tier 1 Total Risk-Based 10.6% • Loan-to-core deposit ratio of 68% • ~$112 billion of available liquidity sources
Slide 33: Technology modernization and spend composition
33 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Data Center Modernization Infrastructure Platforms Products & Capabilities Select tech partners Enterprise Data Optimization Network, Infrastructure and Application Resiliency TM Cash Management - Expert AR Mobile Modernizati
Slide 34: Top tier mobile satisfaction position among peers
34 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Average app store rating vs mobile banking satisfaction1,2 Top tier mobile satisfaction position among peers Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Trillionaires Peer 3 Peer 2 FITB Peer 1 650 660 670 680 690 700 710 720 3.75 4 4.
Slide 35: Digital channel usage and engagement
35 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 1.1 1.4 1Q21 1Q22 2.7 2.9 1Q21 1Q22 +5% Year-over year growth Digital channel usage and engagement Active digital banking users Digital sales (includes deposits, card, & loans) +31% Year-over year growth 1Q21 1Q22 2x growth M
Slide 36: Disciplined credit underwriting and client selection
36 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved • Prime and super prime focus; WA portfolio FICO of 765 • ~90% of total portfolio secured • 18 bps year-over-year decline in 90 days past due as a % of loans • Expect indirect auto and specialty originations of ~$8BN in 2022,
Slide 37: Commercial & industrial overview
37 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 36.2% 47.1% 37.6% 33.4% 31.8% 31.2% 31.3% 31.1% 33.4% 35.5% 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 $49.6 $48.8 $47.8 $49.6 $52.6 $49.1 $47.6 $47.8 $51.7 $53.9 $5.2 $4.8 $3.1 $1.8 $1.0$5.4 $3.7 $2.3 $1.3 $0.7 $0.0 $
Slide 38: Commercial real estate overview
38 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Non-Owner Occupied 54% Owner Occupied 46% Multifamily 29% Home Builder 19% Office 10% Hospitality 9% Retail 5% Industrial 9% Other 19% $10.5 $10.5 $10.3 $10.2 $10.5$10.5 $10.3 $10.3 $10.3 $10.7 $6.0 $6.0 $5.7 $5.3 $5.4 $6.2 $
Slide 39: Residential mortgage overview
39 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved $15.8 $15.9 $16.2 $16.2 $16.5 $15.8 $16.1 $16.2 $16.4 $17.1 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 4Q21 1Q22 NCO ratio1 (0.01%) (0.06%) (0.02%) 30-89 Delinquencies 0.11% 0.12% 0.09% 90+ Delinquencies 0.46% 0.44% 0.08% Nonperforming Lo
Slide 40: Home equity overview
40 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved $5.0 $4.7 $4.4 $4.2 $4.0 $4.8 $4.5 $4.3 $4.1 $3.9 1Q21 2Q21 3Q21 4Q21 1Q22 2% 18% 16% 64% Home equity overview Portfolio loans Key statistics 1Q21 4Q21 1Q22 NCO ratio1 0.01% (0.18%) (0.07%) 30-89 Delinquencies 0.46% 0.61% 0.6
Slide 41: Indirect secured consumer overview
41 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved $14.0 $14.7 $15.6 $16.3 $17.1 $14.3 $15.2 $16.0 $16.8 $17.4 1Q21 2Q21 3Q21 4Q21 1Q22 Indirect secured consumer overview Portfolio loans $ in billions 5.1% 5.4% 6.0% 4.8% 4.8% Average QoQ change 2% 22% 16% 60% 1Q21 4Q21 1Q22 N
Slide 42: Credit card overview
42 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved $1.9 $1.8 $1.7 $1.7 $1.7 $1.8 $1.8 $1.7 $1.8 $1.7 1Q21 2Q21 3Q21 4Q21 1Q22 Credit card overview Portfolio loans $ in billions (8.0%) (5.8%) (1.2%) (0.5%) (2.8%) Average QoQ change 5% 29% 20% 46% Key statistics 1Q21 4Q21 1Q22
Slide 43: Regulation G non-GAAP reconciliation
43 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Regulation G non-GAAP reconciliation 1Assumes 35% tax rate for LTM 1Q12 and 23% tax rate for LTM 1Q22 Fifth Third Bancorp and Subsidiaries For the Last Twelve Months Ended For the Last Twelve Months Ended $ in millions (unaud
Slide 44: Regulation G non-GAAP reconciliation
44 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Regulation G non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries For the Last Twelve Months Ended For the Last Twelve Months Ended $ in millions (unaudited) 1Q12 1Q22 Net interest income (U.S. GAAP) (a) $3,576 $4,789
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