Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Barclays Global Financial Services Conference 2020
10 slides from Fifth Third Bancorp's conference presentation, Sep 14, 2020
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference Greg D. Carmichael Chairman, President & Chief Executive Officer September 14, 2020 Classification: Internal Use 1 Fifth Third Bancorp | All Rights Reserved
Slide 2: Cautionary statement
Cautionary statement 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 Securities Exchange Act of 1934, as amended, and Rule 3
Slide 3: Well positioned to navigate the environment and generate top quartile returns
Well positioned to navigate the environment and generate top quartile returns in the near term and long term • Reduced credit risk exposures and built strong reserves • Built long-term protection to mitigate the impact of the low rate environment • Taking decisive actions to reduce the expense base
Slide 4: Customer activity and pandemic response update
Customer activity and pandemic response update COVID-19 hardship relief summary Payment deferrals % of Total loans Commercial: In payment deferral programs As of 6/30/201 As of 8/31/20 • ~75% of balances in commercial loan deferral programs have exited Commercial loans & leases: 5% 1% Commercial and
Slide 5: Disciplined credit risk management and proactive monitoring
Disciplined credit risk management and proactive monitoring Allowance coverage favorable vs. peers1 Remain disciplined in our CRE portfolio1 As of 2Q20 As of 2Q20 8% Peer 8 7% Peer 7 6% 5% 4% Peer 5 3% Peer 3 Peer 6 2% Peer 1 2Q20 High 2Q20High Volatility CRE as % a of CRE Peer 2 Peer 9 1% Peer 4 0%
Slide 6: Strong capital and liquidity position
Strong capital and liquidity position Significant loss absorbency relative to peers As a % of 2Q20 RWA1 14.1% 13.8% 0.9% 12.6% 12.4% 12.3% 11.8% 2.1% 11.5% 11.4% 11.3% 2.0% 0.6% 0.3% 11.2% 1.5% 0.2% 0.2% 0.1% 10.5% 2.0% 1.5% 2.1% 1.6% 0.2% 0.7% 1.6% 1.7% 1.6% 2.2% 1.4% 1.6% 11.3% 9.7% 10.2% 9.8% 10.
Slide 7: Aggressively reducing interest expense given the rate environment
Aggressively reducing interest expense given the rate environment Proactively managing deposit costs given the rate environment Deposit rates by product IB core deposit rate August 3Q15 2Q20 2020 0.77% 0.74% Interest checking 0.18% 0.24% 0.10% Savings 0.05% 0.06% 0.04% 0.54% Money market 0.21% 0.32%
Slide 8: Well positioned to mitigate impacts of lower rates
Well positioned to mitigate impacts of lower rates Securities portfolio continues to be favorably positioned Cash flows as a % of total securities portfolio1 Incremental impact; • Factors favoring continued outperformance: 27% 27% LTM ended 2Q20 1 24% LTM ended 2Q19 - Duration of 4.7 vs. peer averag
Slide 9: Reducing expenses to generate long-term efficiencies
Reducing expenses to generate long-term efficiencies • Taking prudent and proactive steps to sustainably improve the long-term expense trajectory • Reducing run-rate expenses by $200 million in 2021 • An additional $100 - $150 million run-rate savings by 2022 through lean process automation Structur
Slide 10: Well-positioned
1 Well-positioned Balance Sheet Remain well-positioned Diversified to navigate the 2 Revenue Mix uncertain economic environment Proactive focus 3 on maintaining strong returns Classification: Internal Use 10 Fifth Third Bancorp | All Rights Reserved
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