Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Barclays Global Financial Services Conference 2021
20 slides from Fifth Third Bancorp's conference presentation, Sep 14, 2021
Slide 1: Barclays Global Financial Services Conference
1 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Barclays Global Financial Services Conference Tim Spence President September 15, 2021
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: Committed to generating sustainable value
4 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Committed to generating sustainable value Environmental, Social, and Governance (ESG) actions and impact Actions Impact Published ESG Report on June 30, 2021; Available on investor relations website World’s Most Ethical Compan
Slide 5: Delivering on our financial commitments
5 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved FY15 2Q21 LTM Commercial banking Deposit service W&AM Card & processing Leasing Mortgage Other Delivering on our financial commitments 1 Differentiating our brand and customer experience 2 Optimizing the balance sheet 3 Drivin
Slide 6: Data Center Modernization
6 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Data Center Modernization Investing in technology to improve our resiliency and better serve our customers Infrastructure Platforms Products & Capabilities Select tech partners Enterprise Data Optimization Network, Infrastruct
Slide 7: Momentum Banking: an unparalleled value proposition
7 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 1.67% Cash Back Card Savings goals Automated smart savings Momentum Banking: an unparalleled value proposition Fintech product with the local presence of an actual bank Early Pay Extra Time®MyAdvance™ Immediate funds Broadest
Slide 8: Investing in the Southeast franchise to generate smart scale
8 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 58% 16% 26% Midwest ex. Chicago Chicago Southeast Investing in the Southeast franchise to generate smart scale FITB SE market with a top 3 deposit share Key Southeast MSAs of focus Represents a FITB Southeast retail market for
Slide 9: Proprietary analytics help deepen and retain relationships
9 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved ~60M Annual interactions Proprietary analytics help deepen and retain relationships Baseline Pilot outcomes 2x improvement in pilot customer response rate Recent outcomes + 39% 1H21 vs. 1H19 Customer engagement trends Implemen
Slide 10: Expanding capital markets capabilities to create value for our clients
10 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 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 Brokera
Slide 11: Treasury Management transformation has delivered strong results
11 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Key Priorities • Invest in a differentiated and digitally-enabled TM experience • Scale success in managed services • Accelerate growth in embedded payments • Introduce vertical versions of managed services, e.g., Healthcare
Slide 12: Focused on growing middle market relationships to improve profitability
12 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Midwest ex. Chicago Southeast Chicago Expansion markets Total middle market 2020 2021E Focused on growing middle market relationships to improve profitability Go to market strategy • Strong local leadership and talent with ma
Slide 13: Strategic acquisition of Provide to accelerate growth
13 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Strategic acquisition of Provide to accelerate growth Overview • Provide is the leading fintech in the healthcare practice finance segment • Closed acquisition of Provide on August 2 • Digital capabilities delivers best-in- c
Slide 14: Third quarter 2021 expectations compared to second quarter 2021
14 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Third quarter 2021 expectations compared to second quarter 2021 Net interest income1 Noninterest income1 Noninterest expense1 down ~1% (2Q21 baseline: $768MM) (2Q21 baseline: $1.153BN) (including HFS) Loans & leases Average:
Slide 15: Fifth Third value proposition
15 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 Diversified and growing fee revenues to suppo
Slide 16: Appendix
16 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Appendix
Slide 17: Digital channel usage and engagement
17 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 2.60 2.73 2Q20 2Q21 +5% Year-over year growth Digital channel usage and engagement Active mobile banking users Digital banking log-ins 213 246 2Q20 2Q21 Digital sales (includes deposits, card, & loans) Digital transactions +1
Slide 18: Well positioned to benefit from higher rates
18 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 deposit beta changes Estimated NII benefit from increased securities balances4,5 NII is asse
Slide 19: Securities portfolio continues to provide differentiated performance
19 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Peer 4 Peer 6 Peer 2 Peer 3 Peer 5 Peer 7 (30%) (25%) (20%) (15%) (10%) (5%) 0% (32%) (24%) (16%) (8%) 0% 8% 16% 24% 32% Securities portfolio continues to provide differentiated performance 82% 80% 61% 58% 57% 44% 25% 9% 1.47
Slide 20: Paycheck Protection Program update
20 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 1Represents forward looking statement, please refer to page 2 of this presentation regarding forward-looking non-GAAP measures $3.8 $5.2 $5.1 $5.2 $4.8 2Q20 3Q20 4Q20 1Q21 2Q21 Average PPP loan balances Period-end PPP loan ba
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