Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — BancAnalysts Association of Boston Conference 2018
17 slides from Fifth Third Bancorp's conference presentation, Nov 7, 2018
Slide 1: BancAnalysts Association of Boston Conference
BancAnalysts Association of Boston Conference Tayfun Tuzun Executive Vice President & Chief Financial Officer November 8, 2018 Exhibit 99.1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, Fifth Third Bancorp’s and MB Financial, Inc.’s expectations or predictions of future financial or business perfo
Slide 3: Strategic priorities for the company
Strategic priorities for the company 1 3 Implement remaining NorthStar initiatives and achieve standalone financial targets Pursue profitable organic growth opportunities 2 Successfully integrate MB Financial and realize expected financial benefits Leveraging advanced analytics to enhance the custom
Slide 4: More resilient balance sheet to outperform peers through-the-cycle
More resilient balance sheet to outperform peers through-the-cycle Credit risk management Capital & liquidity risk management Asset-liability management NPA ratio of 0.48% is lowest since 2004; third lowest among peers Criticized assets of 3.45% have declined more than all peers since 2015 CRE as a
Slide 5: Utilizing advanced data analytics to drive improved performance
Distribution Optimization Intelligent Automation Product Development Marketing Utilizing advanced data analytics to drive improved performance Direct marketing optimization Retail network optimization Back-office process automation Real-time fraud monitoring and alerts Personalized financial advice
Slide 6: Leveraging decision science capabilities to optimize retail network
Leveraging decision science capabilities to optimize retail network Current network health Optimal capacity in each market Network optimization opportunities M&A activities Decision science framework built upon big data platform… …generates insights which allow us to better assess: Thousands of attr
Slide 7: Improved marketing analytics to help drive organic growth
Improved marketing analytics to help drive organic growth 4X Enhanced marketing analytics to identify best opportunities to improve profitability Leveraging machine learning algorithms, evaluating over 700 variables Enhancements driving faster household growth and higher deposit balances in target m
Slide 8: Positioned to capitalize on organic growth opportunities
Positioned to capitalize on organic growth opportunities Optimizing network to create smart scale in targeted markets while maintaining top market share in existing markets Increasing sales force throughout company to drive improve returns Continued assessment of opportunities in high-growth markets
Slide 9: MB Financial acquisition remains on-track
MB Financial acquisition remains on-track and supports overall deposit growth strategy Expect to realize previously announced expense and revenue synergies Expect to close and convert majority of systems applications in 1Q19 Highly successful talent and client retention to date; focused on maintaini
Slide 10: Expect to achieve standalone NorthStar targets
Expect to achieve standalone NorthStar targets Raised original ROTCE target over 300 bps to reflect rate hikes and tax law changes Standalone franchise momentum: Significant increase in consumer households driving strong deposit growth WAM on track for record year (AUM and revenue), with positive in
Slide 11: Strategic priorities for the company
Strategic priorities for the company 1 2 3 Implement remaining NorthStar initiatives and achieve standalone financial targets Successfully integrate MB Financial and realize expected financial benefits Pursue profitable organic growth opportunities Focused on top quartile through-the-cycle performan
Slide 12: Appendix
Appendix
Slide 13: Thoughtful reduction in Worldpay stake
Thoughtful reduction in Worldpay stake 49% ~$6BN Worldpay TRA revenue forecast1 Vantiv/Worldpay ownership and monetized gains 1Assumes Worldpay has sufficient U.S. taxable income to utilized the TRA-related deductions, and assumes a 21% federal tax rate; 2Assumes remaining units are exchanged at $91
Slide 14: Strong liquidity profile – 3Q18
Strong liquidity profile – 3Q18 $ millions – excl. Retail Brokered & Institutional CDs Unsecured debt maturities Heavily core funded Holding company: Modified LCR of 119% Holding Company cash as of September 30, 2018: $3.1B Cash currently sufficient to satisfy all fixed obligations in a stressed env
Slide 15: Balance sheet positioning – 3Q18
Balance sheet positioning – 3Q18 Investment portfolio $13.1B fixed | $44.2B variable 1,2,3 Commercial loans1,2,3 Consumer loans1 Long-term debt4 $26.1B fixed | $10.0B variable 1 $9.8B fixed | $4.6B variable 4 56% allocation to bullet/ locked-out cash flow securities Yield: 3.22% Effective duration o
Slide 16: Interest rate risk management – 3Q18
Interest rate risk management – 3Q18 Estimated NII sensitivity profile and ALCO policy limits Estimated NII sensitivity with deposit beta changes Estimated NII sensitivity with demand deposit balance changes NII is near asset/liability neutral over the next 12 months with betas assumed at 70% and no
Slide 17: Regulation G reconciliation
Regulation G reconciliation 1Assumes a 21% tax rate 92 91 90 Three Months Ended September June March 1H18 2018 2018 2018 Net interest income (U.S. GAAP) $1,043 $1,020 $996 $2,016 Add: FTE Adjustment 4 4 3 7 Net interest income (FTE) $1,047 $1,024 $999 $2,023 Adjusted Net interest income (FTE) (g) $1
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