Slide 1: 3Q10 Earnings Conference Call
Exhibit 99.2 3Q10 Earnings Conference Call October 21, 2010 Please refer to earnings release dated October 21, 2010 for further information. © Fifth Third Bank | All Rights Reserved
Slide 2: 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 3: 3Q10 in review
3Q10 in review Continued strong operating results • Net income available to common shareholders of $175mm, or $0.22 per diluted share – Includes $127mm pre-tax net impact of BOLI settlement and 3Q10 credit actions described below • Pre-provision net revenue (PPNR)* of $760mm: $633mm excluding BOLI,
Slide 4: Financial summary
Financial summary Actual Seq. YOY ($ in millions) 3Q09 2Q10 3Q10 $ % $ % Average Balances Commercial loans $47,528 $44,331 $43,861 ($470) (1%) ($3,667) (8%) Consumer loans 32,532 32,642 32,756 114 - 224 1% Total loans & leases (excluding held-for-sale) $80,060 $76,973 $76,617 ($356) - ($3,443) (4%)
Slide 5: Net interest income
Net interest income NII and NIM (FTE) • Sequential trends in net interest income and net 4.0% $901 $916 $950 interest margin (FTE) reflect CD runoff and $874 $883 $887 3.5% $850 repricing, lower securities premium amortization, 3.63% 3.70% 3.55% 3.57% $750 and a mix shift towards higher-yielding loa
Slide 6: Balance sheet
Balance sheet Average loan growth ($B)^ Flat QoQ; (4%) YoY • Extended $22 billion of new and renewed credit in 3Q10 80 78 78 77 • C&I loans up 1% sequentially largely due to higher originations of ~$1.1 77 billion per month during the quarter 33 32 33 33 33 • CRE loans down 4% sequentially and 14% f
Slide 7: Noninterest income
Noninterest income Noninterest income Actual Seq. YOY 3Q09 2Q10 3Q10 $ % $ % ($ in millions) Service charges on deposits $164 $149 $143 ($6) (4%) ($21) (13%) Corporate banking revenue 77 93 86 (7) (8%) 8 11% Mortgage banking revenue 140 114 232 118 104% 92 66% Investment advisory services 82 87 90 3
Slide 8: Noninterest expense
Noninterest expense Noninterest expense Actual Seq. YOY 3Q09 2Q10 3Q10 $ % $ % ($ in millions) Salaries, wages and incentives $335 $356 $360 $4 1% $25 8% Employee benefits 83 73 82 9 13% (1) (1%) Net occupancy expense 75 73 72 (1) (1%) (3) (3%) Technology and communications 43 45 48 3 6% 5 10% Equip
Slide 9: Pre-tax pre-provision earnings
Pre-tax pre-provision earnings Core PPNR trend Core PPNR reconciliation Adjusted PPNR up 18%; Credit adjusted PPNR up 7% 3Q09 4Q09 1Q10 2Q10 3Q10 Reported PPNR $844 $562 $568 $567 $760 $800 Adjustments: BOLI litigation settlement - - - - (127) $700 67 Gain on sale of Visa shares (244) - 9 - - 111 73
Slide 10: Strong capital position
Strong capital position Tangible common equity ratio^ Tier I common equity 8% 8% 7% 7% 6% 6% 5% 5% 4% 4% 6.7% 6.5% 6.6% 6.7% 7.0% 7.0% 7.0% 7.2% 7.3% 3% 6.4% 3% 2% 2% 1% 1% 0% 0% 3Q09 4Q09 1Q10 2Q10 3Q10 3Q09 4Q09 1Q10 2Q10 3Q10 Tier I capital ratio Total risk-based capital ratio 14% 20% 12% 13.2% 1
Slide 11: Impact of portfolio actions
Impact of portfolio actions • Residential mortgage loan sale Residential mortgages sold Balances NCO – $228 million of balances sold Florida $141 $72 – $205 million of balances were Ohio 25 15 Illinois 15 9 nonaccrual Michigan 15 8 – $123 million of NCO realized Indiana 10 6 Other 23 13 • Commercial
Slide 12: Net charge-offs
Net charge-offs Net charge-offs ($mm) Net charge-offs by loan type $mm % $1,000 $956 Commercial $627 66% NCOs Consumer 329 34% $800 $756 $708 due to Total $956 100% 3Q10 256 $582 credit $600 240 $434 actions 240 $400 209 206 500 468 $200 342 225 240 $0 3Q09 4Q09 1Q10 2Q10 3Q10 Commercial Consumer Ov
Slide 13: Nonperforming assets
Nonperforming assets* Non-performing assets ($mm) • NPAs of $2.1B excluding held-for-sale $3,220 $3,244 $3,129 $2,969 • Commercial NPAs of $1.6B, down 29% from the previous quarter $2,082 – Homebuilder/developer NPAsof $280mm; represent 17% of total NPAs • Consumer NPAs of $478mm, down 31% from the
Slide 14: NPL Rollforward
NPL Rollforward NPL Rollforward Commercial 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Beginning NPL Amount 1,406 1,937 2,110 2,430 2,392 2,172 1,980 New nonaccrual loans 799 544 832 602 405 310 290 Paydowns, payoffs, sales and net other activity (157) (190) (246) (332) (425) (401) (631) Charge-offs (111) (1
Slide 15: Non-performing loans
Non-performing loans FITB NPL inflows (relative to loans) vs. peers Non-performing loans ($mm) $2.9B $2.9B $2.7B $2.5B $1.6B Non-performing loans improving with lower severity mix; benefit of sale/transfer New non-performing loan flows ($mm) FITB Fifth Third’s non-performing loan inflows (relative t
Slide 16: 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 Mortgage TDR 60+ redefault trend by vintage Fifth Third’s mortgage portfolio TDRs have redefaulted a
Slide 17: Strong relative credit trends
Strong relative credit trends Loans 30-89 days delinquent % vs. peers Loans 90+ days delinquent % vs. peers 2.5% 1.6% 1.4% 2.0% 1.2% 1.5% 1.0% 0.8% 1.0% 0.6% 0.4% 0.5% 0.2% 0.0% 0.0% 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q
Slide 18: Strong reserve position
Strong reserve position Industry leading reserve levels 4.88% 4.91% 4.85% 4.69% 5.00% $1,200 3Q10 coverage ratios are strong 4.20% relative to peers (2Q10) $1,000 4.00% $196 $800 202% $68 3.00% $8 99% $600 $956 2.00% $400 Reserves / NPLs $756 $708 $582 $434 $200 1.00% $0 0.00% ($109) 153% ($200) 85%
Slide 19: Updated credit loss expectations vs. SCAP scenarios
Updated credit loss expectations vs. SCAP scenarios $5,500 Fifth Third $5,250 capitalized for this level of credit losses Fifth Third’s realized credit losses $5,000 under SCAP (plus $5.0B have been significantly below its surplus raised vs. SCAP submitted baseline and $4,750 buffer) more adverse sc
Slide 20: Well-positioned for changed financial landscape
Well-positioned for changed financial landscape Fifth Third’s business model is driven by traditional banking activities — Making loans, taking deposits, treasury management — Largest bank headquartered within core Midwest footprint — No significant business at Fifth Third impaired during crisis; co
Slide 21: Appendix
Appendix 21 © Fifth Third Bank | All Rights Reserved
Slide 22: Potential impact of key elements of Dodd-Frank Act and other recent financial legislation
Potential impact of key elements of Dodd-Frank Act and other recent financial legislation* Scope of activity Potential impact** Debit • LTM^ debit interchange revenue of $197mm • Will not know what “reasonable” and “proportional” mean Interchange • LTM debit interchange $ volume: $15.3B until after
Slide 23: Fourth quarter 2010 outlook
Fifth Third: Fourth quarter 2010 outlook Category 3Q10 Actual 4Q10 Outlook Balance Sheet: Results Average loans & leases (incl. HFS) $78.9 billion Relatively Flat Average core deposits $75.2 billion CD run off, transaction deposit growth Income Statement: Net interest income* $916 million Relatively
Slide 24: Strong liquidity profile
Strong liquidity profile Holding Company cash at 9/30/10: $1.2B Holding company unsecured debt maturities ($mm) — Total Fed deposits ~$2.9B Expected cash obligations over the next 12 months (assuming no TARP repayment) — $0 debt maturities — ~$32mm common dividends — ~$205mm preferred dividends (~$3
Slide 25: Non-performing assets and net charge-offs: Product view
Non-performing assets and net charge-offs: Product view* Total NPAs Total NCOs 3,500 3,000 NCOs on loans sold 2,500 or moved to held-for- sale in 3Q10 2,000 1,500 1,000 500 0 3Q09 4Q09 1Q10 2Q10 3Q10 * NPAs exclude loans held-for-sale. 25 © Fifth Third Bank | All Rights Reserved
Slide 26: Non-performing assets and net charge-offs: Geographic view
Non-performing assets and net charge-offs: Geographic view* Total NPAs Total NCOs 3,500 1,000 3,000 800 NCOs on loans sold 2,500 or moved to held-for- sale in 3Q10 600 2,000 1,500 400 1,000 200 500 - - 3Q09 4Q09 1Q10 2Q10 3Q10 3Q09 4Q09 1Q10 2Q10 3Q10 * NPAs exclude loans held-for-sale. 26 © Fifth T
Slide 27: Commercial & industrial
Commercial & industrial* Credit trends Loans by geography C&I ($ in millions) 3Q09 4Q09 1Q10 2Q10 3Q10 3Q10# Balance $26,175 $25,683 $26,131 $26,008 $26,302 90+ days delinquent $256 $118 $63 $49 $28 as % of loans 0.98% 0.46% 0.24% 0.19% 0.11% NPAs $790 $781 $788 $792 $594 as % of loans 3.02% 3.04% 3
Slide 28: Commercial mortgage
Commercial mortgage* Credit trends Loans by geography Commercial mortgage ($ in millions) 3Q09 4Q09 1Q10 2Q10 3Q10 3Q10# Balance $12,105 $11,803 $11,744 $11,481 $10,985 90+ days delinquent $184 $59 $44 $53 $29 as % of loans 1.52% 0.50% 0.38% 0.46% 0.26% NPAs $968 $985 $1,002 $956 $679 as % of loans
Slide 29: Commercial construction
Commercial construction* Credit trends Loans by geography Commercial construction ($ in millions) 3Q09 4Q09 1Q10 2Q10 3Q10 3Q10# Balance $4,147 $3,784 $3,277 $2,965 $2,349 90+ days delinquent $168 $16 $9 $37 $5 as % of loans 4.04% 0.44% 0.28% 1.24% 0.21% NPAs $751 $707 $569 $482 $291 as % of loans 1
Slide 30: Homebuilders/developers
Homebuilders/developers* Credit trends Loans by geography Homebuilders/developers ($ in millions) 3Q09 4Q09 1Q10 2Q10 3Q10 3Q10# Balance $1,846 $1,563 $1,324 $1,207 $824 90+ days delinquent $79 $19 $6 $12 $3 as % of loans 4.29% 1.19% 0.43% 1.03% 0.37% NPAs $600 $548 $520 $431 $280 as % of loans 32.5
Slide 31: Residential mortgage
Residential mortgage Credit trends Loans by geography Residential mortgage FL MI ($ in millions) 3Q09 4Q09 1Q10 2Q10 3Q10 3Q10# 15% 24% Balance $8,229 $8,035 $7,918 $7,707 $7,975 90+ days delinquent $198 $189 $157 $107 $111 as % of loans 2.41% 2.35% 1.98% 1.38% 1.39% NPAs $484 $523 $521 $549 $328 as
Slide 32: Home equity
Home equity Credit trends Brokered loans by geography Direct loans by geography Home equity - brokered ($ in millions) 3Q09 4Q09 1Q10 2Q10 3Q10 Balance $2,028 $1,948 $1,906 $1,838 $1,770 90+ days delinquent $38 $33 $29 $29 $26 as % of loans 1.87% 1.72% 1.53% 1.57% 1.46% Net charge-offs $30 $34 $30 $
Slide 33: Florida market
Florida market* Deterioration in real estate values having effect on credit trends as evidenced by increased NPA/NCOs in real estate related products Florida NCOs # % of NPAs % of NCOs % of NCOs# % of Loans ($B) FITB ($mm) FITB ($mm) FITB ($mm) FITB Commercial loans 1.6 6% 61 10% 37 16% 9 7% Commerc
Slide 34: Michigan market
Michigan market* Deterioration in home price values coupled with weak economy impacting credit trends due to frequency of defaults and severity Michigan NCOs # % of NPAs % of NCOs % of NCOs# % of Loans ($B) FITB ($mm) FITB ($mm) FITB ($mm) FITB Commercial loans 3.8 14% 141 24% 32 13% 20 15% Commerci