Slide 1: 2Q10 Earnings Conference Call
Exhibit 99.2 2Q10 Earnings Conference Call July 22, 2010 Please refer to earnings release dated July 22, 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: 2Q10 in review
2Q10 in review Strong operating trends Significant improvements in credit Actions driving progress • Net income of $192 million • Net charge-offs declined 25% • Focusing on credit versus 1Q10 net loss of $10 sequentially (lowest level since quality, portfolio million 2Q08) management and loss mitiga
Slide 4: Financial summary
Financial summary Actual Seq. YOY ($ in millions) 2Q09 1Q10 2Q10 $ % $ % Average Balances Commercial loans $48,674 $45,169 $44,331 ($838) (2%) ($4,343) (9%) Consumer loans 32,899 33,212 32,642 (570) (2%) (257) (1%) Total loans & leases (excluding held-for-sale) $81,573 $78,381 $76,973 (1,408) (2%) (
Slide 5: Net interest income
Net interest income NII and NIM (FTE) • Sequential trends in net interest income and net interest margin (FTE) reflect weak loan demand and impact of excess liquidity held in cash equivalents – NII down $14 million, or 2%, sequentially and up $51 million, or 6%, year-over-year – NIM down 6 bps seque
Slide 6: Balance sheet: Continued growth in core funding
Balance sheet: Continued growth in core funding • Extended $20B of new and renewed credit in 2Q10 • CRE loans down 4% sequentially and 14% from the previous year • C&I loans were flat sequentially and down 7% from the previous year largely due to lower line utilization and soft demand • Consumer loa
Slide 7: Stable income in difficult environment
Stable income in difficult environment Noninterest income Actual Seq. YOY ($ in millions) 2Q09 1Q10 2Q10 $ % $ % Service charges on deposits $162 $142 $149 $7 5% ($13) (8%) Corporate banking revenue 93 81 93 12 14% - - Mortgage banking revenue 147 152 114 (38) (25%) (33) (23%) Investment advisory se
Slide 8: Well-controlled expenses
Well-controlled expenses Noninterest expense Actual Seq. YOY ($ in millions) 2Q09 1Q10 2Q10 $ % $ % Salaries, wages and incentives $346 $329 $356 $27 8% $10 3% Employee benefits 75 86 73 (13) (15%) (2) (3%) Net occupancy expense 79 76 73 (3) (4%) (6) (8%) Technology and communications 45 45 45 - - -
Slide 9: Strong capital position
Strong capital position Tangible common equity ratio^ Tier I common equity Tier I capital ratio Total risk-based capital ratio Capital ratios remained strong during the quarter and increased from prior quarter and prior year. ^ Tangible common equity ratio excludes unrealized securities gains/losses
Slide 10: 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 $190M • Will not know what “reasonable”and “proportional”mean Interchange • LTM debit interchange $ volume: $15B until after Fed s
Slide 11: Fifth Third – Traditional Banking Model
Fifth Third – Traditional Banking Model Fifth Third’s business model is not oriented toward capital markets activities, trading, or other systemic or interconnected risks — $100B in assets, primarily core funded rather than wholesale; <1% U.S. banking assets Volcker Rule and derivatives legislation
Slide 12: Broad-based improvement in charge-off trends
Broad-based improvement in charge-off trends Net charge-offs ($M) Net charge-offs by loan type $ % $756 Commercial $225 52% $708 Consumer 209 48% $626 Total $434 100% $582 $434 Significant decline in charge-offs across both portfolios Net charge-offs by geography Actual Seq. YOY $ % ($ in millions)
Slide 13: Nonperforming assets
Nonperforming assets* Non-performing assets ($M) • NPAs, excluding held-for-sale, of $3.0B $3,220 $3,244 $3,129 $2,840 $2,969 – HFS portion represents additional $167M • Commercial NPAs of $2.3B; down 6% from the previous quarter – Homebuilder/developer NPAs of $431M; represent 19% of total NPAs • C
Slide 14: Troubled debt restructurings (TDR) overview
Troubled debt restructurings (TDR) overview Successive improvement in vintage performance during 2008 and 2009, even as volume of modification increased TDR performance has improved in newer vintages Mortgage TDR 60+ redefault trend by vintage Fifth Third’s mortgage portfolio TDRshave redefaulted at
Slide 15: Non-performing loans
Non-performing loans FITB NPL inflows (relative to loans) vs. Peers Non-performing loans ($M) $2.9B $2.9B $2.7B $2.5B $2.6B Non-performing loans improving with lower severity mix New non-performing loan flows ($M) FITB Fifth Third’s non-performing loan inflows (relative to loans) were higher than pe
Slide 16: Early stage delinquencies
Early stage delinquencies Loans 30-89 days delinquent % vs. peers Loans 90+ days delinquent % vs. peers NPA ratio vs. peers Net charge-off ratio vs. peers* FITB credit metrics were higher than peers but are now generally better than peers Source: SNL and company reports. NPA and NCO ratios exclude l
Slide 17: Strong reserve position
Strong reserve position Industry leading reserve level 2Q10 coverage ratios are strong relative to peers (1Q10) Fifth Third Peer Average (2Q10) (1Q10) Source: SNL and company reports. NPAs/NPLs exclude held-for-sale portion for all banks and covered assets for BBT, USB, and ZION. 17 © Fifth Third Ba
Slide 18: Updated credit loss expectations vs. SCAP scenarios
Updated credit loss expectations vs. SCAP scenarios $5,500 Fifth Third $5,250 capitalized for this Fifth Third’s realized credit losses level of credit losses have been significantly below its $5,000 under SCAP (plus $5.0B SCAP submitted baseline and surplus raised vs. more adverse scenarios $4,750
Slide 19: Appendix
Appendix 19 © Fifth Third Bank | All Rights Reserved
Slide 20: Fifth Third: Third quarter 2010 outlook
Fifth Third: Third quarter 2010 outlook Category 2Q10 Actual Results 3Q10 Outlook Balance Sheet: Average loans & leases (incl. HFS) $78.8 billion Flat to down modestly Average core deposits $76.8 billion Lower than 2Q Income Statement: Net interest income* $887 million Up $10-$20M Net interest margi
Slide 21: Pre-tax pre-provision earnings
Pre-tax pre-provision earnings Core PPNR trend Core PPNR reconciliation Core PPNR (2%); Credit adjusted PPNR (2%) 2Q09 3Q09 4Q09 1Q10 2Q10 Reported PPNR* $2,393 $844 $562 $568 $567 Adjustments: Gain on sale of Visa shares - (244) - - - BOLI charge - - - - (1) Gain from sale of processing interest (1
Slide 22: Updated stress testing - process overview
Updated stress testing - process overview Similar process to that used in our previous stress test applications; updated for actual performance and current economic expectations Moody’s “Base” and “Weaker Recovery/Mild Second Recession” scenarios key economic assumptions Weaker Recovery / Base Mild
Slide 23: Non-performing assets and net charge-offs: Product view
Non-performing assets and net charge-offs: Product view* Total NPAs Total NCOs * NPAs exclude loans held-for-sale. 23 © Fifth Third Bank | All Rights Reserved
Slide 24: Non-performing assets and net charge-offs: Geographic view
Non-performing assets and net charge-offs: Geographic view* Total NPAs Total NCOs * NPAs exclude loans held-for-sale. 24 © Fifth Third Bank | All Rights Reserved
Slide 25: Commercial & industrial
Commercial & industrial* Credit trends Loans by geography C&I ($ in millions) 2Q09 3Q09 4Q09 1Q10 2Q10 Balance $28,409 $26,175 $25,683 $26,131 $26,008 90+ days delinquent $142 $256 $118 $63 $49 as % of loans 0.50% 0.98% 0.46% 0.24% 0.19% NPAs $634 $790 $781 $788 $792 as % of loans 2.23% 3.02% 3.04%
Slide 26: Commercial mortgage
Commercial mortgage* Credit trends Loans by geography Commercial mortgage ($ in millions) 2Q09 3Q09 4Q09 1Q10 2Q10 Balance $12,407 $12,105 $11,803 $11,744 $11,481 90+ days delinquent $131 $184 $59 $44 $53 as % of loans 1.06% 1.52% 0.50% 0.38% 0.46% NPAs $791 $968 $985 $1,002 $956 as % of loans 6.37%
Slide 27: Commercial construction
Commercial construction* Credit trends Loans by geography Commercial construction ($ in millions) 2Q09 3Q09 4Q09 1Q10 2Q10 Balance $4,491 $4,147 $3,784 $3,277 $2,965 90+ days delinquent $60 $168 $16 $9 $37 as % of loans 1.34% 4.04% 0.44% 0.28% 1.24% NPAs $735 $751 $707 $569 $482 as % of loans 16.36%
Slide 28: Homebuilders/developers
Homebuilders/developers* Credit trends Loans by geography Homebuilders/developers ($ in millions) 2Q09 3Q09 4Q09 1Q10 2Q10 Balance $2,102 $1,846 $1,563 $1,324 $1,207 90+ days delinquent $53 $79 $19 $6 $12 as % of loans 2.51% 4.29% 1.19% 0.43% 1.03% NPAs $613 $600 $548 $520 $431 as % of loans 29.14%
Slide 29: Residential mortgage
Residential mortgage Credit trends Loans by geography Residential mortgage ($ in millions) 2Q09 3Q09 4Q09 1Q10 2Q10 Balance $8,489 $8,229 $8,035 $7,918 $7,707 90+ days delinquent $242 $198 $189 $157 $107 as % of loans 2.85% 2.41% 2.35% 1.98% 1.38% NPAs $475 $484 $523 $521 $549 as % of loans 5.59% 5.
Slide 30: Home equity
Home equity Credit trends Brokered loans by geography Direct loans by geography Home equity - brokered ($ in millions) 2Q09 3Q09 4Q09 1Q10 2Q10 Balance $2,125 $2,028 $1,948 $1,906 $1,838 90+ days delinquent $34 $38 $33 $29 $29 as % of loans 1.58% 1.87% 1.72% 1.53% 1.57% Net charge-offs $39 $30 $34 $
Slide 31: 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 Florida % of % of NCOs % of Homebuilders, developers tied to Loans ($B) FITB NPAs ($M) FITB ($M) FITB weakening real estate market Commercial loans 1
Slide 32: Michigan market
Michigan market* Deterioration in home price values coupled with weak economy impacting credit trends due to frequency of defaults and severity Michigan % of % of NCOs % of Economic weakness impacts Loans ($B) FITB NPAs ($M) FITB ($M) FITB commercial real estate market Commercial loans 3.9 15% 155 2