Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Credit Suisse Financial Services Forum 2013
21 slides from Fifth Third Bancorp's conference presentation, Feb 13, 2013
Slide 1: Credit Suisse Financial Services Forum
Exhibit 99.1 Credit Suisse Financial Services Forum Kevin T. Kabat Vice Chairman and Chief Executive Officer February 13, 2013 Refer to earnings release dated January 17, 2013 for further information Fifth Third Bank | All Rights Reserved
Slide 2: Key themes
Key themes Well-positioned for success and leadership in new banking landscape 2 Fifth Third Bank | All Rights Reserved
Slide 3: A strong franchise with strong momentum
A strong franchise with strong momentum 3 Fifth Third Bank | All Rights Reserved
Slide 4: Strong revenue and profit generation
Strong revenue and profit generation 4Q12 returns strong relative to peers • Business mix provides higher than average diversity among spread and fee revenues (40+% of revenue) • Relatively strong margin and relatively high fee income contribution drives strong revenue and PPNR generation profitabil
Slide 5: Corporate banking business generating growth
Corporate banking business generating growth • Growth from investments in • Reflects investments in mid- • Growth in corporate banking treasury management corporate space (businesses revenue driven by: that generate $200MM to $2B business – Investments in capital in revenue) markets capabilities • R
Slide 6: Strong mortgage banking results
Strong mortgage banking results • Record origination fees and gain on loan sales in FY12 – Driven by record gain on sales margin and origination volumes – 2012 origination fees and gain on loan sales increased 108% to $822MM from 2011 – Originations increased 35% to $25.2B in 2012 versus $18.6B in 2
Slide 7: Momentum building in consumer bank as a result of investments and strategic changes
Momentum building in consumer bank as a result of investments and strategic changes More distribution channels for customers to access our products and services Card innovation New products that fit the way 4Q12 consumer deposit account average balance customers choose to bank increased 16% compared
Slide 8: NII results reflect continued moderate NIM pressure offset by balance sheet growth
NII results reflect continued moderate NIM pressure offset by balance sheet growth • Negative impact of lower rates on net interest income generally offset by loan growth • Spreads on new originations of variable rate assets consistent with historical spreads – Emphasis on variable rate C&I lending
Slide 9: Loan growth excelled in 2012, ample opportunities for ongoing growth
Loan growth excelled in 2012, ample opportunities for ongoing growth Loan composition Commercial 46% C&I / lease 11% Commercial real estate Consumer 26% Resi. mtg. / home equity 14% Auto 3% Card / other • Solid loan growth with disciplined lending standards throughout 2012 • C&I and residential mort
Slide 10: Strengthened deposit profile and increased value proposition to customers
Strengthened deposit profile and increased value proposition to customers Source: SNL Financial. Peer average includes: BBT, CMA, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC, ZION 10 Fifth Third Bank | All Rights Reserved
Slide 11: Disciplined expense management
Disciplined expense management 2012 expense trend ($MM) Efficiency ratio trend Reported expense $973 $937 $1,006 $1,163 • Long-term target for mid-50% efficiency ratio in normalized environment (with Non-recurring items*: higher interest rate environment) Decreasing expense $23 $18 $5 -- – Current i
Slide 12: Credit trends continue to improve with strong reserve coverage levels
Credit trends continue to improve with strong reserve coverage levels Continued decline in problem assets and corresponding decline in charge-offs combined with strong reserves on an absolute and relative basis Source: SNL Financial and Company Reports. Data as of 4Q12. HFI NPLs exclude loans held-f
Slide 13: Capital management philosophy
Capital management philosophy Capital Deployment Capital Return Organic growth opportunities Dividends* • Support growth of core banking franchise • Move towards levels more consistent with • Continued loan growth despite sluggish Fed’s near-term payout ratio guidance of economy 30% • Strong levels
Slide 14: Fifth Third's balance sheet and business model relatively advantaged under new capital standards
Fifth Third’s balance sheet and business model relatively advantaged under new capital standards Fifth Third’s capital position already well in excess of any established standards, likely standards, and most peers Source: SNL Financial and company reports (financial data as of 4Q12). * In 2Q12, HBAN
Slide 15: Fifth Third: A differentiated business model
Fifth Third: A differentiated business model “Trillionaire” Regional Community Investment FITB Banks Banks Banks Banks Diverse businesses Efficiencies of scale Local market focus Multi-channel delivery Customer-centric model Moderate risk profile Strong profitability and well-capitalized Competitive
Slide 16: Cautionary statement
Cautionary statement This report contains statements that we believe are “forward-lookingstatements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 pro
Slide 17: Appendix
Appendix 17 Fifth Third Bank | All Rights Reserved
Slide 18: Pre-tax pre-provision earnings
Pre-tax pre-provision earnings* PPNR reconciliation ($ in millions) 4Q11 1Q12 2Q12 3Q12 4Q12 Income before income taxes (U.S. GAAP) (a) $418 $603 $565 $503 $540 Add: Provision expense (U.S. GAAP) (b) 55 91 71 65 76 PPNR (a) + (b) $473 $694 $636 $568 $616 Adjustments to remove (benefit) / detriment^:
Slide 19: Credit-related costs
Credit-related costs In noninterest income ($MM) Actual ($ in millions) 4Q11 1Q12 2Q12 3Q12 4Q12 Gain / (loss) on sale of loans $9 $5 $8 $2 $4 Commercial loans HFS FV adjustment (18) (1) (5) (3) (3) Gain / (loss) on sale of OREO properties (22) (17) (19) (11) (10) Mortgage repurchase costs (1) (2) (
Slide 20: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) For the Three Months Ended December September June March December 2012 2012 2012 2012 2011 Income before income taxes (U.S. GAAP) $540 $503 $565 $603 $41
Slide 21: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) For the Three Months Ended December September June March December 2012 2012 2012 2012 2011 Total Bancorp shareholders' equity (U.S. GAAP) $13,716 $13,718
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