Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — RBC Capital Markets Financial Institutions Conference 2023
34 slides from Fifth Third Bancorp's conference presentation, Mar 7, 2023
Slide 1: RBC Capital Markets Financial Institutions Conference
© Fifth Third Bancorp | All Rights Reserved © Fifth Third Bancorp | All Rights Reserved RBC Capital Markets Financial Institutions Conference Tim Spence President and Chief Executive Officer March 8, 2023
Slide 2: Cautionary statement
© Fifth Third Bancorp | All Rights Reserved Cautionary statement 2 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 Section 21E of the Securitie
Slide 3: Why Fifth Third
© Fifth Third Bancorp | All Rights Reserved Why Fifth Third Expanding share in high-growth geographies while generating granular, high-quality loan growth led with fintech lending platforms Through the cycle discipline throughout the bank – credit, liquidity, rates, expense, and capital management F
Slide 4: Diversification across the franchise
© Fifth Third Bancorp | All Rights Reserved Southeast & expansion ~50% Midwest ~50%C&I Corporate Banking 33% Residential mortgage 15% Indirect secured 14% Commercial mortgage 9% Commercial construction 4% Home Equity 3% Dividend Finance 2% Other 6% C&I Regional Banking 14% Consumer and Small Busines
Slide 5: Strong deposit franchise in consumer and commercial
© Fifth Third Bancorp | All Rights Reserved Strong deposit franchise in consumer and commercial 5 Leading consumer deposit franchise – stable and granular 33% 35% 35% 36% 37% 40% 43% 46% 48% 48% 49% 53% Peer 11 Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 x Peer 1 Deposits for ind
Slide 6: Consistently investing for growth through the cycle
© Fifth Third Bancorp | All Rights Reserved 6 1 See forward-looking statements on page 2 of this presentation Consistently investing for growth through the cycle Consistent strong financial results and top tier profitability Consistent NIM and credit discipline Consistent customer acquisition growth
Slide 7: Regional footprint
© Fifth Third Bancorp | All Rights Reserved Regional footprint 1 (branch count in white) Major FITB markets 2 with a top 5 deposit share Major FITB markets 2 with a top 10 deposit share 169 103159 72 5 41 76 5 30 162 269 Footprint is well positioned to benefit from the resurgence of domestic manufac
Slide 8: Southeast franchise overview
© Fifth Third Bancorp | All Rights Reserved #6 largest retail bank and growing at 4x the rate of the population in priority Southeast MSAs Charleston, SC Opening 1 st branch in 2H23 → expect ~10 branches by YE25 64% 14% 22% Midwest ex. Chicago Chicago Southeast 8 Key Southeast MSAs Represents a FITB
Slide 9: Customer-centric, technology-led product innovation and development
© Fifth Third Bancorp | All Rights Reserved 9 Example Fifth Third Solutions: Product innovation and development: Market leadership: • #3 residential solar national market share • #2 practice finance national market share • Ecosystem revenue of ~$175MM in 2022 (expect to grow at 12% CAGR through 2025
Slide 10: Taking advantage of fintech disruption in healthcare managed services
© Fifth Third Bancorp | All Rights Reserved Taking advantage of fintech disruption in healthcare managed services to support our broader strategic growth Healthcare provider revenue cycle management value chain Set up medical billing structure Enable pre- and point-of-care financial analysis Prepare
Slide 11: Anticipated timeline of application and platform upgrades
© Fifth Third Bancorp | All Rights Reserved 11 Anticipated timeline of application and platform upgrades Enhanced mobile app rollout Workday GL conversion FIS: CDs conversions 4Q22 2H23 4Q24 FIS: checking & savings conversions AFS: commercial loan system conversion 4Q25 Unique and simplified product
Slide 12: What you should expect from Fifth Third
© Fifth Third Bancorp | All Rights Reserved 12 1 Innovative, software-enabled products that simplify customers’ lives and enhance the client experience Sustained organic growth from positioning the bank to benefit from secular trends and through gaining market share Proactive balance sheet managemen
Slide 13: Appendix
© Fifth Third Bancorp | All Rights Reserved 13 Appendix
Slide 14: Peer rankings
© Fifth Third Bancorp | All Rights Reserved 1. JPMorgan Chase 3,666 1. JPMorgan Chase 1,185 1. JPMorgan Chase 2,340 1. JPMorgan Chase 501 1. Wells Fargo 7,725 2. Bank of America 3,051 2. Bank of America 1,082 2. Bank of America 1,930 2. Bank of America 382 2. JPMorgan Chase 5,135 3. Citigroup 2,417
Slide 15: Focused on generating long-term shareholder value
© Fifth Third Bancorp | All Rights Reserved 12.2% Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 x Peer 2 Peer 1 Focused on generating long-term shareholder value 60.5% Peer 10 x Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 11.7% Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 X Peer
Slide 16: ESG and community commitments
© Fifth Third Bancorp | All Rights Reserved ~$24BN in sustainable financing towards $100BN goal 208 due diligence reviews for sensitive sectors in compliance with E&S Risk Management Framework 1 52% reduction in Scope 1 and 2 GHG emissions since 2014 4 100% renewable energy purchased since 2019 Achi
Slide 17: Actions Demonstrating Leadership
© Fifth Third Bancorp | All Rights Reserved 17 Actions Demonstrating Leadership Third-party recognitions $500,000 donated for hurricane relief in Florida Through Fifth Third Foundation in addition to other assistance programs Published 3 rd ESG report Available on ir.53.com Announced 10-year $100BN
Slide 18: Combining the best of fintech and traditional banks
© Fifth Third Bancorp | All Rights Reserved Combining the best of fintech and traditional banks Free access to direct deposit up to two days early ✓ Expanded to include gov’t payments & retirement accounts ✓ Expanded to include income from gig work ✓ Expanded to receive federal tax refund up to 5 da
Slide 19: Generating differentiated outcomes through fintech lending platforms
© Fifth Third Bancorp | All Rights Reserved $2.6 ~$4.5 $1.1 ~$1.0 $3.7 ~$5.5 FY22 FY23E Dividend Provide Generating differentiated outcomes through fintech lending platforms Dividend Finance and Provide 19 Dividend and Provide driving high quality, granular loan growth 1 1 See forward-looking statem
Slide 20: Well diversified commercial portfolio
© Fifth Third Bancorp | All Rights Reserved 20 Well diversified commercial portfolio favoring large borrowers with a track record of resilience 15% 14% 13% 8%7% 7% 6% 6% 5% 4% 4% 11% Real Estate Manufacturing Financial Services & Insurance Business Services Health Care Wholesale Trade Retail Trade A
Slide 21: Consumer portfolio uniquely positioned
© Fifth Third Bancorp | All Rights Reserved 56% 18% 22% 4% 63% 16% 18% 3% 12/31/19 21 Portfolio focused on prime and super prime borrowers 12/31/22 Consumer Loan Portfolio FICO at origination Conservative consumer loan portfolio well positioned in this environment 750+ 720-749 <660 660-719 • ~85% of
Slide 22: Significantly improved credit profile
© Fifth Third Bancorp | All Rights Reserved 0.38% 0% 1% 2% 3% 4% 5% 1Q04 1Q08 4Q12 1Q20 4Q22 0.22% 0% 2% 4% 6% 8% 1Q04 1Q08 4Q12 1Q20 4Q22 0.42% 0% 1% 2% 3% 4% 5% 1Q04 1Q08 4Q12 1Q20 4Q22 0.13% 0% 4% 8% 12% 1Q04 1Q08 4Q12 1Q20 4Q22 Significantly improved credit profile Non-Performing Loans 1 Total N
Slide 23: Cash flow hedges continue to protect NIM
© Fifth Third Bancorp | All Rights Reserved 23 ($3BN @ 2.25% 1- month LIBOR strike) Cash flow hedges continue to protect NIM 1 EOP notional value of cash flow hedges ($ in billions) Actual Cash flow hedges 1 Represents forward looking statement, please refer to page 2 of this presentation regarding
Slide 24: Balance sheet positioning as of 12/31/22
© Fifth Third Bancorp | All Rights Reserved 37% 39% 9% 11% 4% 75% 14% 7% 4% • 66% allocation to bullet/ locked- out cash flow securities • AFS yield: 2.97% 5 • Effective duration of 5.36 6 • Net unrealized pre-tax loss: $6.0BN • 99% AFS 11 $24.6BN fixed 3 | $51.7BN variable 1,2 Commercial loans 1,2,
Slide 25: Securities portfolio
© Fifth Third Bancorp | All Rights Reserved 12% 2% 48% 17% 2% 14% 4% Agency CMBS ABS Agency RMBS Agency CMO Other Non-agency CMBS US Treasury Muni Non-Agency RMBS Securities portfolio mix 1,2 52% 12% 11% 11% 9% 5% Differentiated securities portfolio has generated peer- leading yields for 7+ years an
Slide 26: Total commercial portfolio overview
© Fifth Third Bancorp | All Rights Reserved 4Q21 3Q22 4Q22 NCO ratio 1 0.10% 0.17% 0.13% 30-89 Delinquencies 0.11% 0.19% 0.14% 90+ Delinquencies 0.03% 0.03% 0.02% Nonperforming Loans 2 0.48% 0.39% 0.34% 26 Total loans $ in billions; including HFS Period-end QoQ change Average QoQ change Key statisti
Slide 27: Commercial & industrial overview
© Fifth Third Bancorp | All Rights Reserved Classification: Internal Use 4Q21 3Q22 4Q22 NCO ratio 1 0.11% 0.24% 0.14% 30-89 Delinquencies 0.14% 0.22% 0.14% 90+ Delinquencies 0.03% 0.03% 0.02% Nonperforming Loans 2 0.54% 0.45% 0.38% 27 Portfolio loans $ in billions Period-end QoQ change Average QoQ c
Slide 28: Commercial real estate overview
© Fifth Third Bancorp | All Rights Reserved Classification: Internal Use 4Q21 3Q22 4Q22 NCO ratio 1 0.03% (0.03%) 0.00% 30-89 Delinquencies 0.03% 0.10% 0.16% 90+ Delinquencies 0.01% 0.00% 0.00% Nonperforming Loans 2 0.35% 0.25% 0.29% Commercial real estate overview 28 CRE Mortgage Balance by owner o
Slide 29: Total consumer portfolio overview
© Fifth Third Bancorp | All Rights Reserved 4Q21 3Q22 4Q22 NCO ratio 1 0.21% 0.28% 0.38% 30-89 Delinquencies 0.43% 0.43% 0.57% 90+ Delinquencies 0.23% 0.07% 0.06% Nonperforming Loans 2 0.39% 0.51% 0.56% Weighted average FICO at origination 3 765 765 765 Weighted average LTV at origination 4 74% 80%
Slide 30: Residential mortgage overview
© Fifth Third Bancorp | All Rights Reserved Classification: Internal Use 4Q21 3Q22 4Q22 NCO ratio 1 (0.06%) (0.02%) 0.01% 30-89 Delinquencies 0.12% 0.10% 0.17% 90+ Delinquencies 0.44% 0.04% 0.04% Nonperforming Loans 2 0.20% 0.65% 0.70% Weighted average FICO at origination 3 765 766 765 Weighted aver
Slide 31: Home equity overview
© Fifth Third Bancorp | All Rights Reserved Classification: Internal Use 4Q21 3Q22 4Q22 NCO ratio 1 (0.18%) (0.08%) 0.02% 30-89 Delinquencies 0.61% 0.55% 0.74% 90+ Delinquencies 0.02% 0.03% 0.02% Nonperforming Loans 2 1.89% 1.70% 1.66% Weighted average FICO at origination 3 763 767 767 Weighted aver
Slide 32: Indirect secured consumer overview
© Fifth Third Bancorp | All Rights Reserved Classification: Internal Use 4Q21 3Q22 4Q22 NCO ratio 1 0.14% 0.24% 0.32% 30-89 Delinquencies 0.61% 0.65% 0.86% 90+ Delinquencies 0.05% 0.06% 0.00% Nonperforming Loans 2 0.16% 0.09% 0.18% Indirect secured consumer overview 32 Portfolio FICO score at origin
Slide 33: Credit card overview
© Fifth Third Bancorp | All Rights Reserved Classification: Internal Use 4Q21 3Q22 4Q22 NCO ratio 1 2.90% 2.69% 2.85% 30-89 Delinquencies 1.02% 1.02% 1.12% 90+ Delinquencies 0.85% 0.79% 0.96% Nonperforming Loans 2 1.30% 1.30% 1.44% Credit card overview 33 Portfolio FICO score at origination 3 750+72
Slide 34: Non-GAAP reconciliation
© Fifth Third Bancorp | All Rights Reserved 34 Non-GAAP reconciliation Note: For specific adjustments refer to non-GAAP reconciliations in the 1Q19 and 4Q22 earnings presentations; 1 Assumes 23% tax rate; totals may not foot due to rounding Fifth Third Bancorp and Subsidiaries For the Last Twelve Mo
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