Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Barclays 2015 Americas Select Franchise Conference
19 slides from Fifth Third Bancorp's conference presentation, May 15, 2015
Slide 1: Barclays 2015 Americas Select Franchise Conference
Exhibit 99.1 Barclays 2015 Americas Select Franchise Conference Tayfun Tuzun Executive Vice President & Chief Financial Officer May 19, 2015 Please refer to earnings release dated April 21, 2015 (as amended) and 10-Q dated May 11, 2015 for further information Fifth Third Bank | All Rights Reserved
Slide 2: Business composition at Fifth Third
Business composition at Fifth Third Commercial Branch Consumer Wealth Banking Banking Lending Management Footprint In footprint markets In footprint markets National commercial banking National consumer lending Business Commercial Bank Retail Bank Mortgage Private Bank Lines Cards Auto Retail Broker
Slide 3: Changing profile of commercial lending
Changing profile of commercial lending Commercial Loan Portfolio Changing credit profile post-crisis directly linked Commercial Banking Net Revenue2,3 to change in our risk appetite, indirectly a result of increased focus on mid-and large-corporate relationships Combination of lower credit spreads a
Slide 4: Deposit momentum delivering franchise value
Deposit momentum delivering franchise value Western Michigan and Northwestern Ohio affiliates #1 market shares (17% and 19% of FITB footprint deposits, respectively); incl. Grand Rapids, MI and Toledo, OH Chicago affiliate Fifth Third’s second largest affiliate market; 6.9% increase in deposits vs.
Slide 5: Enhancing retail bank platform
Enhancing retail bank platform Consumer Deposit Activity Transaction volume by ATM and mobile channels • Remote deposit capture launched in 2012, now 36% of all consumer deposits Branch Transactions Average monthly teller transaction in millions • 2,200 ATMs image-enabled broadens reach and effectiv
Slide 6: Consumer lending-stable source of earning assets
Consumer lending-stable source of earning assets Mortgage Auto Home Equity Card – Primarily in footprint lender – Stable portfolio balances – Valuable source of credit to – In footprint card portfolio – Flexible business model, – National lender; in 46 home owning customers sold to current customers
Slide 7: Wealth management increasing contribution to earnings
Wealth management increasing contribution to earnings Consumer Wholesale Retail Brokerage Private Bank Institutional Services ClearArc Capital Mass market and mass Financial elite clients Consulting, investment and Provides asset management affluent clients – Teams of professionals record-keeping se
Slide 8: 2014 performance at a glance
2014 performance at a glance Diluted earnings per share Book value per share Total payout ratio 1 Strong long-term earnings growth Creating value and sustaining ~$1.1B 1 payout to common momentum in results shareholders in 2014 Tier I common ratio 2 Nonperforming asset ratio ALLL / NPLs Solid capita
Slide 9: First quarter 2015 earnings highlights
First quarter 2015 earnings highlights Earnings per diluted share of $0.42; significant pre-tax items in 1Q15 results included a $70MM pre-tax positive valuation adjustment on the warrant Fifth Third holds in Vantiv, $37MM pre-tax gain on the sale of TDRs, a $17MM pre-tax charge related to the valua
Slide 10: Credit quality overview
Credit quality overview Accruing 90+ Days Past Due ($MM) HFI Nonperforming Assets ($MM) 90 + delinquencies declined 17% from 1Q14 NPAs down 7% sequentially and 27% from 1Q14; lowest level since 2007 Net Charge-offs ($MM) Reserve Coverage $191 $168 $115 $101 $91 NCO ratio 0.76% 0.45% 0.50% 0.83% 0.41
Slide 11: Strong capital position
Strong capital position 1Q12-1Q15 Common Equity Repurchased / 2011 Total Common Equity Tier I common equity1 Total Payout Ratio (ex. Vantiv) 2 Capital generation and overall capital position, sufficient to support balance sheet growth and continued prudent capital return to shareholders 1 Non-GAAP m
Slide 12: Investment thesis
Investment thesis 12 Fifth Third Bank | All Rights Reserved
Slide 13: Cautionary statement
Cautionary statement This report contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 pr
Slide 14: Appendix
Appendix 14 Fifth Third Bank | All Rights Reserved
Slide 15: Strong liquidity profile
Strong liquidity profile Holding company unsecured debt maturities ($MM) Holding Company cash at 3/31/15: $2.5B Cash currently sufficient to satisfy all fixed obligations in a stressed environment for more than 18 months (debt maturities, common and preferred dividends, interest and other expenses)
Slide 16: Interest rate risk management
Interest rate risk management Well-positioned for rising rates • NII benefits from asset re-pricings in a rising rate environment – 64% of total loans are floating rate (81% of commercial and 39% of consumer) – Investment portfolio duration of approximately 4.3 years – Short-term wholesale funding r
Slide 17: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) For the Three Months Ended March December September June March 2015 2014 2014 2014 2014 Income before income taxes (U.S. GAAP) 485 519 464 606 438 Add: P
Slide 18: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) For the Three Months Ended March December September June March 2015 2014 2014 2014 2014 Total Bancorp shareholders' equity (U.S. GAAP) N/A 15,626 15,404
Slide 19: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) For the Year Ended 2014 2013 2012 2011 2010 Total Bancorp shareholders' equity (U.S. GAAP) $15,626 $14,589 $13,716 $13,201 $14,051 Goodwill and certain o
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