Slide 1: Investor Update
Exhibit 99.1 Investor Update August 12, 2009 Please refer to earnings release dated July 23, 2009 and 10-Q dated August 10, 2009 for further information, including full results reported on a U.S. GAAP basis Fifth Third Bank | All Rights Reserved
Slide 2: 2Q09 in review
2Q09 in review Continued core business momentum • Net income of $882M, diluted EPS of $1.15 • Net interest margin of 3.26%, up 20 bps sequentially • Noninterest income up 11% from 2Q08 excluding processing JV gain and investment securities gains/losses, on strong mortgage banking and payments proces
Slide 3: Net interest income
Net interest income Core NII and NIM • Net interest income increased 7% sequentially 4.0% $900 and net interest margin increased 20 bps, driven $800 by: 3.44% 3.37% 3.5% 3.15% 3.13% $700 2.92% – Wider spreads on loan originations 3.0% $600 – Deposit mix shift to lower cost core $500 2.5% deposits as
Slide 4: Fee income – core trends
Fee income – core trends* YOY $900 growth $800 $700 Payment 4% processing $600 $500 Deposit service 2% charges $400 Investment (21%) advisory $300 Corporate (11%) banking $200 Mortgage** 119% $100 Other NM $0 2Q08 3Q08 4Q08 1Q09 2Q09 Payment Processing: Investment Advisory: • Strong transaction volu
Slide 5: Fee income recap
Fee income recap* • Historical electronic payment processing revenue includes EFT revenue and Merchant Processing revenue as well as debit card and business credit card interchange – EFT Revenue and Merchant Processing Revenue now part of Fifth Third Processing Solutions, LLC – Debit and business ca
Slide 6: Pre-tax pre-provision earnings: Impact of FTPS
Pre-tax pre-provision earnings: Impact of FTPS Net interest income Fee income $1,100 $900 $1,000 $800 ~($177M) $900 net ~ +$30M $700 ($140M) $800 ~ +$37M) $700 $600 $600 $500 $500 $400 $400 $300 $300 $200 $200 $100 $100 $0 $0 2Q08 3Q08 4Q08 1Q09 2Q09 2Q09 Pro 2Q08 3Q08 4Q08 1Q09 2Q09 2Q09 Pro Forma
Slide 7: Balance sheet: continued shift back toward core funding
Balance sheet: continued shift back toward core funding Extended nearly $39B of new and renewed credit in 1H09 Average loan growth ($B) Commercial loans • Reduced exposure to homebuilder/developer and other non- 83 84 86 84 owner occupied loans; sale or transfer to held-for-sale of 82 $1.3B in 4Q08
Slide 8: Strong liquidity profile
Strong liquidity profile Holding company unsecured debt maturities ($M) Holding Company cash at 6/30/09: $3.5B 4,956 Expected cash obligations over the next 12 months — $0 debt maturities — ~$39M common dividends — ~$205M preferred dividends — ~$270M interest and other expenses 750 0 0 0 0 Cash curr
Slide 9: Credit by portfolio
Credit by portfolio* Commercial Commercial Commercial Total Residential Other Total loans & ($ in millions) C&I mortgage construction lease commercial mortgage Home equity Auto Credit card consumer Total consumer leases Loan balances $28,409 $12,407 $4,491 $3,532 $48,839 $8,489 $12,511 $8,741 $1,914
Slide 10: Portfolio performance drivers
Portfolio performance drivers No participation in Performance largely driven by • Subprime Geography • Option ARMs • Florida and Michigan most stressed, Michigan beginning to stabilize • Remaining Midwest and Southeast performance reflect economic trends Discontinued or suspended lending Discontinue
Slide 11: Aggressive loss mitigation
Aggressive loss mitigation Loss mitigation activities Reset policies and guidelines Loss mitigation and containment — Eliminated all brokered home equity — Implemented Watch and Criticized production Asset Reduction initiative — Significantly tightened underwriting — Major expansion of commercial an
Slide 12: 2Q09 credit trends
2Q09 credit trends NPA ratio versus peers Net charge-off ratio versus peers 4.0% 3.2% 2.7% 3.0% 2.4% 2.0% 1.5% 1.0% 0.0% 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 2008 1H09 FITB Peer Average FITB Peer Average NPA formation* NPA formation* versus peers 2Q09 YOY change SEQ change 80% 1. MTB 21% (41
Slide 13: Net loan losses vs. SCAP adverse scenario
Net loan losses vs. SCAP adverse scenario Net charge-offs ($B) Total net charge-offs for 1H09 were $1.1B, much lower than the assumption under $9.1 the SCAP adverse scenario Net loan losses in 3Q09 are expected to increase moderately due to higher commercial real estate charge-offs partially offset
Slide 14: Strong reserve position
Strong reserve position Industry leading reserve level Reserves / Loans $2,500 1. FHN 4.91% 2. FITB 4.28% 3. JPM 4.27% $2,000 729 4.28% 4. BAC 3.59% 3.72% 5. KEY 3.53% 3.31% 6. ZION 3.01% $1,500 7. MI 2.86% 2.41% 8. WFC 2.80% $1,000 1.85% 9. PNC 2.77% 1,627 415 10. USB 2.40% 478 283 375 11. HBAN 2.3
Slide 15: Strong capital position
Strong capital position Tier 1 common ratio Peer average: 7.0% 9.5% 8.4% 8.1% 7.7% 7.7% 7.4% 7.3% 6.9% 6.9% 6.8% 6.7% 6.7% 6.1% 6.0% 5.3% 4.5% FHN BBT RF CMA JPM STI KEY FITB BAC HBAN MI USB ZION MTB* PNC WFC Tier 1 capital ratio Peer average: 11.0% 15.6% 12.9% 12.4% 12.3% 12.2% 11.9% 11.9% 11.6% 10
Slide 16: Strong capital position continued
Strong capital position continued Tangible common equity ratio Peer average: 5.6% 7.6% 7.4% 7.3% 7.1% 6.6% 6.5% 6.0% 6.0% 5.7% 5.5% 5.0% 4.8% 4.7% 4.4% 3.6% 3.2% CMA KEY FHN MI RF FITB STI BBT ZION HBAN USB JPM BAC MTB WFC PNC TCE + Reserves / Loans Peer average: 11.4% 18.2% 15.5% 14.3% 13.6% 13.6%
Slide 17: Summary
Summary Aggressive management of Core franchise is sound Capital further strengthened credit issues • Everyday Great Rates strategy • Strong reserve coverage of • Strong liquidity profile driving core deposit growth problem loans • Advent sale completed capital • Consistent fee income • Aggressive m
Slide 18: Appendix
Appendix Fifth Third Bank | All Rights Reserved
Slide 19: Nonperforming assets
Nonperforming assets* Other $80M 3% • Total NPAs of $2.8B C&I^ $685M • Homebuilder/developer NPAs of $613M; 24% represent 22% of total NPAs CRE $1.5B • Commercial NPAs of $2.2B; growth driven 54% by CRE, particularly in MI and FL • Consumer NPAs of $628M; flat compared to previous quarter Residentia
Slide 20: Commercial & industrial
Commercial & industrial* Credit trends Loans by geography FL MI C&I 6% 16% ($ in millions) 2Q08 3Q08 4Q08 1Q09 2Q09 Balance $28,958 $29,424 $29,197 $28,617 $28,409 Other 90+ days delinquent $52 $108 $76 $131 $142 23% as % of loans 0.18% 0.37% 0.26% 0.46% 0.50% NPAs $414 $557 $548 $675 $634 as % of l
Slide 21: Commercial mortgage
Commercial mortgage* Credit trends Loans by geography FL Commercial mortgage 13% Other MI ($ in millions) 2Q08 3Q08 4Q08 1Q09 2Q09 2% 26% Balance $13,394 $13,355 $12,502 $12,560 $12,407 90+ days delinquent $150 $157 $136 $124 $131 NC 7% as % of loans 1.12% 1.17% 1.09% 0.99% 1.06% NPAs $540 $749 $502
Slide 22: Commercial construction
Commercial construction* Credit trends Loans by geography MI FL Commercial construction 15% 19% ($ in millions) 2Q08 3Q08 4Q08 1Q09 2Q09 Balance $6,007 $6,002 $5,114 $4,745 $4,491 90+ days delinquent $53 $84 $73 $49 $60 Other as % of loans 0.88% 1.40% 1.44% 1.02% 1.34% 5% NPAs $552 $659 $400 $597 $7
Slide 23: Homebuilders/developers
Homebuilders/developers* Credit trends Loans by geography FL MI Homebuilders/developers 19% 18% ($ in millions) 2Q08* 3Q08 4Q08 1Q09 2Q09 Balance $3,295 $3,065 $2,481 $2,322 $2,102 90+ days delinquent $123 $105 $74 $37 $53 Other as % of loans 3.73% 3.41% 2.98% 1.59% 2.51% 4% NPAs $547 $702 $366 $554
Slide 24: Residential mortgage
Residential mortgage Credit trends Loans by geography Residential mortgage MI ($ in millions) 2Q08 3Q08 4Q08 1Q09 2Q09 FL 14% 29% Balance $9,866 $9,351 $9,385 $8,875 $8,489 90+ days delinquent $229 $185 $198 $231 $242 as % of loans 2.32% 1.98% 2.11% 2.60% 2.85% NPAs $285 $339 $397 $475 $475 OH as %
Slide 25: Home equity
Home equity Credit trends Brokered loans by geography Direct loans by geography Home equity - direct FL FL 3% 9% ($ in millions) 2Q08* 3Q08 4Q08 1Q09 2Q09 MI Other MI Balance $9,988 $10,232 $10,439 $10,486 $10,386 Other 21% 1% 21% NC 90+ days delinquent $42 $41 $58 $61 $63 20% TN 5% as % of loans 0.
Slide 26: Florida market
Florida market* Deterioration in real estate values having effect on credit trends as evidenced by increasing NPA/NCOs in real estate related products Loans % of NPAs % of NCOs % of Homebuilders, developers tied to ($ in millions) (bn) FITB (mm) FITB (mm) FITB weakening real estate market Commercial
Slide 27: Michigan market
Michigan market* Deterioration in home price values coupled with weak economy impacting credit trends due to frequency of defaults and severity Loans % of NPAs % of NCOs % of ($ in millions) (bn) FITB (mm) FITB (mm) FITB Economic weakness impacts Commercial loans 4.7 16% 97 15% 30 17% commercial rea
Slide 28: Cautionary statement
Cautionary statement This report may contain statements that we believe are “forward-lookingstatements” 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