Fifth Third Bancorp · NASDAQ:FITB

Fifth Third Bancorp — Investor Presentation (May 2011)

30 slides from Fifth Third Bancorp's investor presentation, May 23, 2011

  1. Slide 1: Investor Update

    Exhibit 99.1 Investor Update May 2011 Please refer to earnings release dated April 21, 2011 and 10-Q dated May 9, 2011 for further information Fifth Third Bank | All Rights Reserved

  2. Slide 2: A foundation of continued growth

    A foundation of continued growth Capital – foundation for continued growth — Tier 1 common capital has increased 464bps or $4.0bn¹ — 9.0% Tier 1 common ratio is $1.0bn in excess of internal ~8.0% target — Capital base transformed through series of capital actions – $1.7bn common equity offering; $1.

  3. Slide 3: Fifth Third franchise

    Fifth Third franchise $110 billion assets $84 billion deposits $13 billion market cap 15 affiliates in 12 states 1,310 banking centers 2,453 ATMs Leading market share in mature Midwest market Built strong presence in higher growth Southeastern markets over past 5 years 3 Fifth Third Bank | All Right

  4. Slide 4: 1Q11 in review

    1Q11 in review Continued strong operating results • Net income available to common shareholders of $88mm, or $0.10 per diluted share – Net income reduced by $153mm of discount accretion recorded in preferred dividends accelerated by February repurchase of $3.4B in TARP CPP Preferred Stock; $0.17 per

  5. Slide 5: Balance sheet

    Balance sheet • C&I loans up 4% sequentially and 4% from the previous year • CRE loans down 3% sequentially and 17% from the previous year • Consumer loans up 2% sequentially and 3% from the previous year • Warehoused residential mortgage loans held-for-sale were $1.5B at quarter end versus $2.3B at

  6. Slide 6: Net interest income

    Net interest income Net Interest Income Reconciliation ($ in millions) 4Q10 NII (FTE) $919 Daycount (12) FTPS loan restructuring (8) Lower mortgage warehouse (8) $1B debt issuance (7) 1Q11 NII (FTE) $884 Yield Analysis Seq. YoY Interest-earning assets 1Q10 4Q10 1Q11 (bps) (bps) Commercial and indust

  7. Slide 7: Diverse revenue stream

    Diverse revenue stream • Improving economy supportive of underlying revenue growth from loan growth and business fee income – Higher market interest rates in future should add further benefit • Negative impact of Reg E fully absorbed into results in 4Q10 • Timing and initial impact of debit intercha

  8. Slide 8: Strong relative credit trends

    Strong relative credit trends FITB credit metrics are now generally better than peers Peer average includes: BBT, CMA, HBAN, KEY, MTB, MI, PNC, RF,STI, USB, WFC, and ZION Source: SNL Financial and company filings. NPA and NCO ratios exclude loans held-for-sale and covered assets for peers where appr

  9. Slide 9: Industry leading reserve levels

    Industry leading reserve levels Source: SNL and company reports. NPAs/NPLs exclude held-for-sale portion for all banks as well as covered assets for BBT, USB, and ZION. 9 Fifth Third Bank | All Rights Reserved

  10. Slide 10: Strong capital position

    Strong capital position Capital ratios strong and reflect TARP CPP redemption Source: SNL Financial and Company reports. HFI NPAs exclude loans held-for-sale and also exclude covered assets for BBT, USB, and ZION 10 Fifth Third Bank | All Rights Reserved

  11. Slide 11: Capital management philosophy

    Capital management philosophy 11 FifthThird Bank | All Rights Reserved

  12. Slide 12: Customer-centric traditional banking model: well-positioned for changed financial landscape

    Customer-centric traditional banking model: well-positioned for changed financial landscape Fifth Third’s business model is driven by traditional banking activities — Largest bank headquartered within Fifth Third’s core Midwest footprint — Focus on expansion and development of businesses where regio

  13. Slide 13: Well-positioned for the future

    Well-positioned for the future Diversified traditional banking platform • Traditional commercial banking franchise built on customer-oriented localized operating model • Strong market share in key markets with focus on further improving density • Fee income ~40% of total revenues Strong industry lea

  14. Slide 14: 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

  15. Slide 15: Appendix

    Appendix Fifth Third Bank | All Rights Reserved

  16. Slide 16: Financial summary

    Financial summary Actual Seq. YOY ($ in millions) 1Q10 4Q10 1Q11 $ % $ % Average Balances Commercial loans $45,169 $42,808 $43,410 $602 1% ($1,759) (4%) Consumer loans 33,212 33,428 34,226 798 2% 1,014 3% Total loans & leases (excl. held-for-sale) $78,381 $76,236 $77,636 $1,400 2% ($745) (1%) Core d

  17. Slide 17: 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** • 1Q11 debit interchange revenue of $54mm • Fed has proposed limits on debt interchange; proposal Debit • 1Q11 debit interchange $ volume: $4.1B currently out for comment I

  18. Slide 18: Liquidity position

    Liquidity position 18 Fifth Third Bank | All Rights Reserved

  19. Slide 19: Mortgage repurchase overview

    Mortgage repurchase overview Demand requests and repurchase losses remain volatile Repurchase Reserves* ($ in millions) and near-term repurchase losses are expected to remain elevated 1Q10 2Q10 3Q10 4Q10 1Q11 Virtually all sold loans and new claims relate to GSEs or GNMA Beginning balance $58 $84 $8

  20. Slide 20: Troubled debt restructurings (TDR) overview

    Troubled debt restructurings (TDR) overview * Fifth Third data includes changes made to align with OCC/OTS methodology (i.e. excludes government loans, closed loans and OREO from calculations) 20 Fifth Third Bank | All Rights Reserved

  21. Slide 21: NPL Rollforward

    NPL Rollforward NPL HFI Rollforward Commercial 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Beginning NPL Amount 1,406 1,937 2,110 2,430 2,392 2,172 1,980 1,261 1,214 New nonaccrual loans 799 544 832 602 405 310 290 224 299 Paydowns, payoffs, sales and net other activity (157) (190) (246) (332) (425

  22. Slide 22: Non-performing loans

    Non-performing loans 22 Fifth Third Bank | All Rights Reserved

  23. Slide 23: Commercial & industrial*

    Commercial & industrial* 23 Fifth Third Bank | All Rights Reserved

  24. Slide 24: Commercial mortgage*

    Commercial mortgage* * NPAs exclude loans held-for-sale. 24 3Q10 includes losses on loans transferred to held-for-sale Fifth Third Bank | All Rights Reserved

  25. Slide 25: Commercial construction*

    Commercial construction* Credit trends Commercial construction ($ in millions) 1Q10 2Q10 3Q10 4Q10 1Q11 Balance $3,277 $2,965 $2,349 $2,048 $1,980 90+ days delinquent $9 $37 $5 $3 $23 as % of loans 0.28% 1.24% 0.21% 0.13% 1.16% NPAs $569 $482 $291 $259 $248 as % of loans 17.36% 16.26% 12.40% 12.65%

  26. Slide 26: Homebuilders/developers*

    Homebuilders/developers* Credit trends Homebuilders/developers ($ in millions) 1Q10 2Q10 3Q10 4Q10 1Q11 Balance $1,324 $1,207 $824 $699 $651 90+ days delinquent $6 $12 $3 $1 $1 as % of loans 0.43% 1.03% 0.37% 0.12% 0.16% NPAs $520 $431 $280 $259 $249 as % of loans 39.28% 35.68% 33.97% 37.12% 38.30%

  27. Slide 27: Residential mortgage

    Residential mortgage Credit trends Residential mortgage ($ in millions) 1Q10 2Q10 3Q10 4Q10 1Q11 Balance $7,918 $7,707 $7,975 $8,956 $9,530 90+ days delinquent $157 $107 $111 $100 $98 as % of loans 1.98% 1.38% 1.39% 1.12% 1.03% NPAs $521 $549 $328 $368 $338 as % of loans 6.57% 7.12% 4.11% 4.11% 3.55

  28. Slide 28: Home equity

    Home equity Credit trends Home equity - brokered ($ in millions) 1Q10 2Q10 3Q10 4Q10 1Q11 Balance $1,906 $1,838 $1,770 $1,698 1,637 90+ days delinquent $29 $29 $26 $25 $25 as % of loans 1.53% 1.57% 1.46% 1.46% 1.51% Net charge-offs $30 $24 $26 $25 $24 as % of loans 6.45% 5.29% 5.87% 5.74% 5.88% Home

  29. Slide 29: 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 % of % of NCOs % of Weak commercial real estate market Loans ($B) FITB NPAs ($M) FITB ($M) FITB Commercial loans 1.8 7% 73 12% 19 23% Commerci

  30. Slide 30: Michigan market*

    Michigan market* Deterioration in home price values coupled with weak economy impacting credit trends due to frequency of defaults and severity Michigan % of % of NCOs % of Loans ($B) FITB NPAs ($M) FITB ($M) FITB Commercial loans 3.3 12% 109 18% 28 34% Commercial mortgage 2.8 26% 160 23% 15 28% Com

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