Slide 1: Investor Update
Exhibit 99.1 Investor Update August 2010 Please refer to earnings release dated July 22, 2010 and 10-Q dated August 9, 2010 for further information, including full results reported on a U.S. GAAP basis Fifth Third Bank | All Rights Reserved
Slide 2: 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 3: Peer performance summary – YoY Comparison
Peer performance summary – YoY Comparison Regional Midwest FITB bank peer peers Performance 2Q10 average (1) average (2) vs. peers 2Q10 2Q10 Core pre-tax pre-provision earnings* / loans 2.9% 2.9% 2.7% Better Average core deposits growth +12% +7% +9% Better Net charge-off ratio / (bps) 2.26% (-82) 2.
Slide 4: Pre-tax pre-provision earnings
Pre-tax pre-provision earnings Core PPNR reconciliation Core PPNR 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Reported PPNR $511 $2,393 $844 $562 $568 $567 Adjustments: Gain on sale of Visa shares - - (244) - - - BOLI charge 54 - - - - - Gain from sale of processing interest - (1,764) 6 - - - Divested merchant an
Slide 5: Strong profitability results
Strong profitability results ROAA Core PPNR / NCOs 2Q10 core PPNR / average loans (annualized) • Return on assets higher than peer average Credit adjusted PPNR / Average Loans • PPNR more than covers net charge-offs (profitability not dependent on reserve releases) • Strong PPNR profitability create
Slide 6: Stable income and expense in difficult environment
Stable income and expense in difficult environment Core fee income ($M) • Core noninterest income of $601M declined $23M, or 4%, compared with prior quarter, impacted by lower mortgage banking net revenue • Sequential strength in card and processing revenue (+15%), corporate banking revenue (+14%),
Slide 7: Net interest income
Net interest income NII and NIM (FTE) • Sequential trends in net interest income and net interest margin reflect weak loan demand and impact of excess liquidity held in cash equivalents – NII down $14M and NIM down 6 bps in 2Q10 over prior quarter • Expect improved NII and NIM in 2H10 from ($Ms) CD
Slide 8: Balance sheet: Continued growth in core funding
Balance sheet: Continued growth in core funding Average loan growth ($B)^ • Extended $20B of new and renewed credit in 2Q10 82 80 78 78 77 • CRE loans down 4% sequentially and 14% from the previous year • C&I loans were flat sequentially and down 7% from the previous year largely due to lower line u
Slide 9: Credit trends better than peers
Credit trends better than peers Loans 30-89 days delinquent % vs. peers Loans 90+ days delinquent % vs. peers NPA ratio vs. peers Net charge-off ratio vs. peers* (7.5%) (HFS transfer) FITB credit metrics were higher than peers but are now generally better than peers Source: SNL and company reports.
Slide 10: Strong credit metrics compared with peers
Strong credit metrics compared with peers Net Charge-off Ratio (Annualized) HFI NPA Ratio Peer average: 2.5% Peer average: 4.0% NPAs + 90+ – Reserves / TCE “Texas Ratio” Peer average: 11% Source: SNL Financial and company reports. Data as of 2Q10. 10 Fifth Third Bank | All Rights Reserved
Slide 11: Non-performing loans
Non-performing loans FITB NPL inflows (relative to loans) vs. Peers Non-performing loans ($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 12: 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 Fifth Third’s mortgage portfolio TDRs have redefaulted at a Mortgage TDR 60+ redefault trend by vint
Slide 13: Manageable commercial real estate exposure
Manageable commercial real estate exposure CRE / Assets CRE / (TCE + Reserves) Peer average: 22% Peer average: 256% CRE exposure lower than peer average; problems relatively more manageable given capital and reserves Source: SNL and company reports. 13 Fifth Third Bank | All Rights Reserved
Slide 14: 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 15: Updated credit loss expectations vs. SCAP “stress test” scenarios
Updated credit loss expectations vs. SCAP “stress test” scenarios $5,500 Fifth Third $5,250 capitalized for this Fifth Third’s realized credit losses level of credit losses $5,000 have been significantly below its under SCAP (plus $5.0B SCAP submitted baseline and surplus raised vs. more adverse sce
Slide 16: Strong reserve position
Strong reserve position Industry leading reserve level Reserves / Loans 1. FITB 4.85% 2. KEY 4.16% 3. ZION 4.11% 4. HBAN 3.79% 5. RF 3.71% 6. MI 3.69% 7. PNC 3.46% 8. WFC 3.21% 9. USB 2.83% 10. STI 2.79% 11. BBT 2.66% 12. CMA 2.38% 13. MTB 1.77% Peer Average 3.21% Coverage ratios are strong relative
Slide 17: Robust capital position
Robust capital position Tier 1 capital ratio (with and without TARP) Tangible common equity ratio 13.6% 13.7% Peer average w/ 13.5% 12.6% 12.5% TARP: 11.5% 12.0% 11.0% Peer average: 7.1% 9.2% Peer average w/o TARP: 9.7% Tier 1 common ratio (Tier 1 common + reserves) / RWA Peer average: 10.4% Peer av
Slide 18: Strong liquidity profile
Strong liquidity profile Holding Company cash at 6/30/10: $1.4B Holding company unsecured debt maturities ($M) — Total Fed deposits ~$4.0B Expected cash obligations over the next 12 months (assuming no TARP repayment) — $0 debt maturities — ~$39M common dividends — ~$205M preferred dividends (~$35M
Slide 19: 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** • LTM^ debit interchange revenue $190M • Will not know what “reasonable” and “proportional” mean until Debit – Signature $171M, PIN $19M after Fed study Interchange • LTM d
Slide 20: 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 21: Continuing to invest for the future
Continuing to invest for the future 21 Fifth Third Bank | All Rights Reserved
Slide 22: 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