Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — RBC Capital Markets Financial Institutions Conference 2019
14 slides from Fifth Third Bancorp's conference presentation, Mar 12, 2019
Slide 1: RBC Capital Markets Financial Institutions Conference 2019
RBC Capital Markets Financial Institutions Conference 2019 Greg D. Carmichael Chairman, President & Chief Executive Officer March 12, 2019 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: Well-positioned franchise and focused footprint
Well-positioned franchise and focused footprint Regional footprint Out of footprint middle market and corporate banking FITB markets with a top 3 deposit share 2019 Bloomberg Gender-Equality Index1 Best Regional Bank4 Best Bank for HNW Families (runner-up)4 2019 World’s Most Ethical Companies2 2019
Slide 4: Strategic priorities
Strategic priorities 1 2 Maintain credit, expense and capital discipline Invest to drive organic growth and profitability 3 Expand market share in key geographies Committed to achieving 4Q19 financial targets, including expected benefits from MB Financial Focused on generating positive operating lev
Slide 5: Consistently delivering on financial commitments
Consistently delivering on financial commitments Significant improvement in key profitability metrics over the past three years, with strong momentum going into 2019 All periods reflect change in accounting policy for LIHTC 1Non-GAAP measure: see reconciliation on pages 13 and 14 of this presentatio
Slide 6: Sustainable strategies and execution to outperform peers through-the-cycle
Sustainable strategies and execution to outperform peers through-the-cycle Net interest margin1 Average core deposits Nonperforming assets CRE as a % of total capital Significantly improved the risk and return profile over the last several years Change from 3Q15 – 4Q18 Change from 4Q17 – 4Q18 As of
Slide 7: Growing market share in Commercial business while maintaining risk profile
Growing market share in Commercial business while maintaining risk profile C&I loan growth Strategic priorities: Enhancing profitability through expansion and select acquisitions Growing differentiated capabilities in capital markets and treasury management Focused on creating distinctive client exp
Slide 8: Retail: Investing in high growth markets while accelerating digital transformation
Mobile Banking 44% Retail: Investing in high growth markets while accelerating digital transformation Transactions increasingly digital, but a physical presence remains important Reallocate 100 – 125 branches to higher growth markets within existing footprint in the Southeast while maintaining top m
Slide 9: Well-positioned for outsized growth
Well-positioned for outsized growth Market share vs. household income growth Note: Peers are pro forma for announced/completed mergers; Deposits capped at $500 million per branch per FDIC Summary of Deposits as of June 30, 2018; 1Reflects deposit-weighted average household income growth from 2019 to
Slide 10: MB Financial remains on track
MB Financial remains on track Received regulatory approval on 3/6 Highly successful talent and client retention to date Expect to close transaction on 3/22 Focused on maintaining positive momentum post-closing Primary systems conversion expected occur in early May 2019 MB acquisition accomplishments
Slide 11: Current outlook
Current outlook ROTCE: ROA: Efficiency Ratio: ~17.5% ~1.50% <55% Projected 4Q19 financial metrics, including expected benefits from MB Financial Expect 6-8 bps of core NIM expansion (excluding purchase accounting benefits) Continue to expect ~$255MM in annual expense synergies (50% in year 1; fully
Slide 12: Strategic priorities
Strategic priorities Focused on top quartile through-the-cycle performance to create long term shareholder value 1 3 2 4 Leverage technology as a key enabler Maintain credit, expense and capital discipline Expand market share in key geographies Invest to drive organic growth and profitability
Slide 13: Regulation G non-GAAP reconciliation
Regulation G non-GAAP reconciliation 1Pre-tax items: for 4Q18 and FY 2018 assume a 21% tax rate, for FY 2017 and FY 2016 assume a 35% tax rate Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconciliation For the Three Months Ended $ and shares in millions December FY FY FY (unaudited) 2
Slide 14: Regulation G non-GAAP reconciliation
Regulation G non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconciliation For the Three Months Ended $ and shares in millions December FY FY FY (unaudited) 2018 2018 2017 2016 Average interest-earning assets (n) $,131,072 $,128,905 $,126,293 $,126,285 Net interes
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