Slide 1: 4Q15 Earnings Presentation
4Q15 Earnings Presentation January 21, 2016 Refer to earnings release dated January 21, 2016 for further information. Exhibit 99.2
Slide 2: Cautionary statement
Cautionary statement This release 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 p
Slide 3: 4Q15 in review
4Q15 in review ($ in millions) 4Q15 Seq. D YOY D Average Balances Total loans & leases1 $93,594 $221 $2,553 Core deposits $99,728 $1,011 $3,378 Income Statement Data Net interest income (taxable equivalent) $904 - 2% Provision for loan and lease losses 91 (42%) (8%) Noninterest income 1,104 55% 69%
Slide 4: Balance sheet
Balance sheet Avg +3% YoY; EOP +3% YoY Loan balances ($B) Average commercial loans HFI flat sequentially and up 5% year-over-year Year-over-year growth primarily driven by C&I and commercial construction Average consumer loans HFI flat sequentially and were down 1% year-over-year Lower utilization a
Slide 5: Net interest income
Net interest income NII and NIM (FTE) Net interest income down $2MM from 3Q15, as expected NII decrease driven by the full quarter impact of $2.4 billion of wholesale debt issuances in the third quarter, the $750 million auto securitization completed in November, and commercial loan yield compressio
Slide 6: Noninterest income
4Q14 3Q15 4Q15 Seq. ∆ YOY ∆ ($ in millions) Service charges on deposits $142 $145 $144 (1%) 1% Corporate banking revenue 120 104 104 - (13%) Mortgage banking net revenue 61 71 74 4% 21% Investment advisory revenue 100 103 102 (1%) 2% Card and processing revenue 76 77 77 - 1% Other noninterest income
Slide 7: Noninterest expense
Noninterest expense Expenses were up 2% sequentially, primarily due to a $10MM contribution to the Fifth Third Foundation and higher lease expense due to expenses related to retail market exits Expenses were up 5% YoY due to higher compensation, technology, and other expenses 4Q14 3Q15 4Q15 Seq. D Y
Slide 8: Credit quality overview
Credit quality overview Net charge-offs ($MM) $86 $191 NCO ratio 0.83% 0.41% 0.37% 0.80% 0.34% $188 HFI Nonperforming assets ($MM) $691 $626 $606 $744 $647 Reserve Coverage Accruing 90+ Days Past Due ($MM) NPA ratio 0.82% 0.76% 0.67% 0.65% 0.70% $91 $80 1 Charge-off related to restructuring of a stu
Slide 9: Select Commercial Portfolios
Select Commercial Portfolios CRE Energy Commodities Traders Size: $10.2BN % of Total Loans: 11% % of Total Capital1: 59% Size: $1.7BN % of Total Loans: 2% % of Total Capital1: 10% Size: $306MM % of Total Loans: 0.3% % of Total Capital1: 2% 1 Percentage of total Risk-based capital 2 Average HFI Loans
Slide 10: Strong capital position
Strong capital position 1 Non-GAAP measure; See Reg. G reconciliation in appendix. 2 Represents Basel III common equity tier 1 ratio under the final capital rule, subject to phase-in periods. Fifth Third made a one-time permanent election to not include AOCI in common equity tier 1 capital in the Ma
Slide 11: Incremental Risk & Compliance Expense
Incremental Risk & Compliance Expense While we added 373 employees in risk and compliance, we reduced the total employee count in other areas by 464 in 2015, resulting in a net decrease of 91 In 2016, total compensation in all other areas, which includes ongoing inflationary increases, merit adjustm
Slide 12: Select Strategic Investments
Select Strategic Investments Mortgage & Home Equity Loan Operating System Improved omni-channel customer experience in origination, fulfillment and servicing Achieves best-in-class cost to originate and service by streamlining and simplifying processes, leading to productivity gains Significantly im
Slide 13: Appendix
Appendix ‘© Fifth Third Bank | All Rights Reserved FIFTH THIRD BANK
Slide 14: Pre-tax pre-provision earnings
Pre-tax pre-provision earnings1 PPNR trend 1 Non-GAAP measure; see Reg. G reconciliation in appendix. 2 Prior quarters include similar adjustments. PPNR increased 55% sequentially, reflecting the impact of $469MM in net benefit in 4Q15 primarily related to Vantiv Excluding those items, adjusted PPNR
Slide 15: Strong Liquidity Profile
Strong Liquidity Profile Available and contingent borrowing capacity (4Q15): FHLB ~$12.6B available, ~$14.3B total Federal Reserve ~$26.0B Bancorp LCR of ~115% at 12/31/15 Holding Company cash at 12/31/15: $3.0B Cash currently sufficient to satisfy all fixed obligations in a stressed environment for
Slide 16: Portfolio Compositions
Portfolio Compositions Commercial: Fixed: $9.7BN1 Float: $46.5BN1 1M Libor based: 68% 3M Libor based: 9% Prime based: 5% Weighted Avg. Life: 1.76 74% Float / 26% Fix 95% Float / 5% Fix 0% Float / 100% Fix 91% Float / 9% Fix 1% Float / 99% Fix 70% Float / 30% Fix 100% Float / 0% Fix 26% Float / 74% F
Slide 17: Interest Rate Risk Management
Interest Rate Risk Management Actual results may vary from these simulated results due to differences between forecasted and actual balance sheet composition, timing, magnitude, and frequency of interest rate changes, as well as other changes in market conditions and management strategies. Re-pricin
Slide 18: NPL rollforward
NPL rollforward FIFTH THIRD BANK NPL HA Roliforward [Commercial ars 1015 201s SANS [Beginning NPL amount 365 S$ 367 S$ 325 S 287 § 266 infers to nonperforming 99 68 195 165 Transfers to performing « ) fo) @) @) Transfers from held for sale : : : : Transters to held for sale : (12) Loans sold from po
Slide 19: Credit Trends
Credit Trends Residential Mortgage Commercial & Industrial Home Equity & Automobile Commercial Real Estate * Excludes loans held-for-sale.
Slide 20: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation
Slide 21: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation