Slide 1: Fifth Third Bancorp 1Q24 Earnings Presentation
Fifth Third Bancorp 1Q24 Earnings Presentation April 19, 2024 Refer to earnings release dated April 19, 2024 for further information. © Fifth Third Bancorp | All Rights Reserved Ó 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: 1Q24 highlights
1Q24 highlights Reported1 Adjusted1 • Average deposits increased 5% compared to 1Q23 EPS $0.70 $0.76 • Net charge-offs, NPAs, and delinquencies remain below historical levels; zero CRE net charge-offs during the quarter ROA 0.98% 1.06% • Strong fee performance driven by 10% growth in wealth and asse
Slide 4: Net interest income
Net interest income1 4Q23 to 1Q24 Reported NII & NIM Walk $1,522 NII $ in millions; NIM change in bps NII NIM $1,423 $1,423 $1,390 4Q23 2.85% Net market rate impact 3 1 3.29% Total net interest income; $ millions Loan balances / mix (8) 1 Securities portfolio 1 1 2.85% 2.86% Deposit/wholesale fundin
Slide 5: Noninterest income
Noninterest income 1Q24 vs. 4Q23 $751 • Adjusted noninterest income1 down $34 million, or 5% $744 $723 $710 $717 $696 • Primary drivers: Total noninterest income; $ millions ‒ Commercial banking revenue (down 12%) reflecting decreases in institutional brokerage and client financial risk management r
Slide 6: Noninterest expense
Noninterest expense 1Q24 vs. 4Q23 • Adjusted noninterest expense1 up $93 million, or 8% $1,455 $1,342 • Primary drivers: $1,331 $1,319 $1,304 $1,211 ‒ Compensation and benefits (up 14%), reflecting a seasonal increase Total noninterest expense; $ millions ‒ Net occupancy expense (up 5%) ‒ Marketing
Slide 7: Interest earning assets
Interest earning assets Average loan & lease balances Average securities1 and short-term investments $ in billions; loan & lease balances excluding HFS $ in billions % change % change $122.8 $78.9 $77.7 $118.9 $117.3 QoQ YoY QoQ YoY $63.8 $21.5 $21.2 $45.4 $44.6 $5.3 $44.5 — (2%) (1%) +302% 3.26% 6.
Slide 8: Deposits and wholesale funding
Deposits and wholesale funding Average deposit balances Average wholesale funding balances $ in billions $ in billions $169.4 $168.1 $160.6 % change % change $4.3 $5.7 $5.5 $26.1 $24.8 QoQ YoY QoQ YoY $23.7 3.00% 3.01% (2%) +27% 5.39% 5.55% (5%) +4% $163.8 $162.6 4.49% $156.3 1.76% (1%) +4% 1Q23 4Q2
Slide 9: High-quality deposit franchise
High-quality deposit franchise 6 point outperformance vs. large commercial banks Fifth Third continues to outpace the industry in deposit share growth2 Average total deposits indexed to 100; H8, non-seasonally adjusted total deposits Significant locational share Deposit share rankings improvement si
Slide 10: Credit quality overview
Credit quality overview Key metrics 1Q23 2Q23 3Q23 4Q23 1Q24 NPL ratio 0.48% 0.52% 0.47% 0.55% 0.61% NPA ratio1 0.51% 0.54% 0.51% 0.59% 0.64% 30-89 days past due as a % of portfolio loans and leases 0.26% 0.28% 0.26% 0.31% 0.29% NCO ratio 0.26% 0.29% 0.41% 0.32% 0.38% ACL ratio as a % of portfolio l
Slide 11: Allowance for credit losses
Allowance for credit losses Allocation of allowance by product 1Q24 Change in rate $ in millions % of portfolio Compared to: Allowance for loan & lease losses Amount loans & leases 4Q23 1Q23 ••Drivers Driversofof$16MM $16MMdecrease decrease Commercial and industrial loans $756 1.44% — 0.03% ininACL:
Slide 12: Strong liquidity and capital position
Strong liquidity and capital position Capital position Common equity tier 1 ratio1 ~30 bps ~7 bps ~1 bp 10.44% 10.29% (~15 bps) (~8 bps) 4Q23 Net income RWA Common Modified CECL transition Other 1Q24 to common dividends Liquidity position $ in billions • Maintained full Category 1 LCR compliance dur
Slide 13: Securities portfolio AOCI accretion
Securities portfolio AOCI accretion Projected AOCI accretion1 $ in billions; 3/31 AFS and HTM portfolio unrealized loss, after-tax Assuming implied forward curve2 Assuming static rates $2.6 $2.4 $2.1 $1.9 $1.6 $1.4 $1.1 $0.9 $0.5 $0.4 ($1.6) ($1.8) ($2.1) ($2.3) ($2.6) ~62% ($2.8) ~57% ($3.1) capita
Slide 14: Current expectations: FY 2024 vs FY 2023
Current expectations FY 2024 compared to FY 2023 Avg. loans & leases down ~2% (including HFS) Total revenue1 down 1 – 2% (FY23 baseline: $8.826BN; Includes securities g/l) Net interest income1 down 2 – 4% (FY23 baseline: $5.852BN) Noninterest income1 up 1 – 2% (FY23 baseline: $2.956BN) Noninterest e
Slide 15: Current expectations: 2Q24 vs 1Q24
Current expectations 2Q24 compared to 1Q24 Avg. loans & leases stable (including HFS) Total revenue1 up ~1% (1Q24 baseline: $2.117BN; Includes securities g/l) Net interest income1 stable to up 1% (1Q24 baseline: $1.390BN) Noninterest income1 up 2 – 4% (1Q24 baseline: $717MM) Noninterest expense1 dow
Slide 16: Appendix
Appendix 16 © Fifth Third Bancorp | All Rights Reserved
Slide 17: Living our purpose guided by our vision and values
Living our purpose guided by our vision and values Our To improve the lives of our customers and the well-being of our Purpose communities Our Vision Be the One Bank people most value and trust Our Work as One Bank Take Accountability Core Values Be Respectful Act with Integrity Our purpose, vision,
Slide 18: Sustainability priorities and metrics
Sustainability priorities and metrics Demonstrating our Addressing climate Promoting inclusion Keeping the customer Strengthening our commitment to change and diversity at the center communities employees >$37BN in sustainable financing $3.7BN in lending, investments, 3.5MM customer outreach calls i
Slide 19: A recognized leader in sustainability among peers
A recognized leader in sustainability among peers Actions Demonstrating Leadership Third-party recognitions Executive compensation tied to sustainability priorities Received highest overall rating possible on most recent Sustainability & Stewardship Assessment modifier in 2023 Variable Compensation
Slide 20: Strong liquidity profile
Strong liquidity profile Unsecured debt maturities $ millions – excl. Retail Brokered & Institutional CDs $4,912 Holding company: • Holding Company cash as of March 31, 2024: $4.9BN $2,500 • Cash on hand at Holding Company currently sufficient to $1,850 $2,050 satisfy all fixed obligations for ~37 m
Slide 21: Balance sheet positioning
Balance sheet positioning Commercial loans1,2 Consumer loans1 Investment portfolio Long-term debt 3 $19.6BN fixed | $52.4BN variable 1,2 $38.4BN fixed | $6.1BN variable 1 $9.4BN fixed | $6BN variable 3 6,8 • 60% allocation to bullet/ locked- • 1M based: 50% 5,8 • 1M based: 1% • SOFR based: 39% out c
Slide 22: Investment portfolio composition
Investment portfolio composition Securities portfolio Investment portfolio characteristics AFS and HTM portfolio; amortized cost basis; as of 3/31/24 Amortized cost basis; as of 3/31/24 Held-to-maturity portfolio Reclassified $12.6BN of securities to held-to- • $11.5BN portfolio maturity on 1/3/24 •
Slide 23: Limited non-owner occupied exposure with very strong credit quality
Limited non-owner occupied exposure with very strong credit quality Non-owner occupied CRE represents <10% of total loans Office CRE portfolio stats As of 3/31/24 As of 1Q24; Non-owner occupied vs. PQ Total Bancorp loans Average loan commitment $11.0 million 5% $117BN NCOs / average loans (LTM) 0.00
Slide 24: Continued strong credit quality within portfolios of interest
Continued strong credit quality within portfolios of interest High quality Shared National Credit portfolio with limited exposure to leveraged lending1 $ in billions; as of 3/31/24 $32.4 $2.4 $2.0 Shared National Credits portfolio Leveraged lending portfolio Both SNC & leveraged lending As a % of to
Slide 25: Managing rate risk against conservative outcomes
Managing rate risk against conservative outcomes Estimated NII sensitivity profile and ALCO policy limits % Change NII (FTE) ALCO policy limit 13 to 24 13 to 24 Change in interest rates (bps) 12 months months 12 months months +200 Ramp over 12 months (2.8%) (4.6%) (5.0%) (6.0%) Rate Risk models assu
Slide 26: Interest-bearing deposit mix
Interest-bearing deposit mix Stable deposit portfolio well positioned for lower rates Interest-bearing deposit mix As of 3/31/24 • Mostly low-rate and stable consumer & relationship-based deposits • Beta in falling rate environment: ~0% 21% Low beta / low cost1 • Accounts with an intermediate rate 2
Slide 27: Cash flow hedges
Cash flow hedges Floors and receive-fixed swaps1 EOP notional value of cash flow hedges ($ in billions) Forward starting Floors Existing receive-fixed swaps4 ($3BN @ 2.25% 1- receive-fixed swaps3 month LIBOR strike)2 5 $15 $14 $11 $11 $11 $11 $10 $3 $3 $3 $10 $5 $1 $2 $10 $9 $8 $8 $7 $6 $6 $5 $5 4 1
Slide 28: Mortgage banking results
Mortgage banking results Mortgage banking$69 net revenue $66 Mortgage originations and margins $59 $57 $ in millions $ in billions $54 Origination fees and Originations HFS $2 $2 $1.7 gains on loan Originations HFI $1.5 sale $1.4 $83 $80 $79 $79 $0.5 $78 $0.3 $1.1 Gross $0.3 $1.0 servicing $1.1 $1.2
Slide 29: Preferred dividend schedule
Preferred dividend schedule Upcoming preferred dividend schedule1 2Q24 3Q24 4Q24 1Q25 $ in millions Series H ~$13 ~$13 ~$13 ~$12 Floating2 Series I ~$11 ~$10 ~$10 ~$10 Floating2 Series J ~$7 ~$7 ~$6 ~$6 Floating2 Series K ~$3 ~$3 ~$3 ~$3 Series L ~$4 ~$4 ~$4 ~$4 Class B Series A ~$3 ~$3 ~$3 ~$3 Tota
Slide 30: Total commercial portfolio overview
Total commercial portfolio overview Portfolio loans and leases Key statistics $ in billions Average QoQ change 1Q23 4Q23 1Q24 0.8% 0.4% (1.8%) (2.8%) (1.9%) NCO ratio1 0.17% 0.13% 0.19% Period-end QoQ change 30-89 Delinquencies 0.15% 0.11% 0.15% 1.1% (1.1%) (1.6%) (3.2%) (1.1%) 90+ Delinquencies 0.0
Slide 31: Commercial & industrial overview
Commercial & industrial overview Portfolio loans Key statistics $ in billions Average QoQ change 1Q23 4Q23 1Q24 0.9% — (2.0%) (4.2%) (2.7%) NCO ratio1 0.21% 0.20% 0.27% Period-end QoQ change 30-89 Delinquencies 0.17% 0.09% 0.12% 0.9% (1.4%) (1.9%) (4.5%) (2.0%) 90+ Delinquencies 0.03% 0.02% 0.02% $5
Slide 32: Commercial real estate overview
Commercial real estate overview Portfolio loans Key statistics $ in billions 1Q23 4Q23 1Q24 Average QoQ change 1.1% 1.7% (0.9%) 1.9% — NCO ratio1 0.04% (0.07%) 0.00% Period-end QoQ change 30-89 Delinquencies 0.04% 0.09% 0.15% 2.0% 0.1% (0.5%) 1.2% 1.4% 90+ Delinquencies 0.00% 0.00% 0.00% $16.6 $16.8
Slide 33: Total consumer portfolio overview
Total consumer portfolio overview Portfolio loans Key statistics $ in billions 1Q23 4Q23 1Q24 Average QoQ change NCO ratio1 0.42% 0.64% 0.67% 1.9% 0.5% (0.7%) (1.4%) (0.2%) 30-89 Delinquencies 0.44% 0.63% 0.52% Period-end QoQ change 90+ Delinquencies 0.06% 0.06% 0.05% 1.2% (0.2%) (1.2%) (1.1%) 0.2%
Slide 34: Residential Mortgage overview
Residential Mortgage overview Portfolio loans Key statistics $ in billions 1Q23 4Q23 1Q24 Average QoQ change NCO ratio1 0.00% (0.01%) (0.01%) — (0.4%) (0.7%) (1.6%) (0.9%) 30-89 Delinquencies 0.10% 0.18% 0.14% Period-end QoQ change 90+ Delinquencies 0.05% 0.04% 0.03% (0.1%) (0.6%) (1.2%) (1.5%) (0.2
Slide 35: Home equity overview
Home equity overview Portfolio balances Key statistics $ in billions 1Q23 4Q23 1Q24 Average QoQ change NCO ratio1 (0.04%) 0.05% 0.03% (0.5%) (1.7%) (1.0%) 0.2% 0.7% 30-89 Delinquencies 0.58% 0.72% 0.64% Period-end QoQ change 90+ Delinquencies 0.03% 0.00% 0.00% (2.0%) (1.2%) (0.3%) 0.5% (0.8%) Nonper
Slide 36: Indirect secured consumer overview
Indirect secured consumer overview Portfolio loans Key statistics $ in billions 1Q23 4Q23 1Q24 Average QoQ change NCO ratio1 0.34% 0.64% 0.64% 0.4% (1.9%) (3.0%) (4.2%) 0.3% 30-89 Delinquencies 0.67% 1.00% 0.82% Period-end QoQ change Nonperforming Loans2 0.16% 0.24% 0.21% (0.4%) (2.3%) (4.1%) (3.0%)
Slide 37: Credit card overview
Credit card overview Portfolio loans Key statistics $ in billions 1Q23 4Q23 1Q24 Average QoQ change NCO ratio1 3.43% 3.90% 4.19% (0.8%) 0.2% 1.4% 1.2% (3.1%) 30-89 Delinquencies 1.02% 1.13% 1.09% Period-end QoQ change 90+ Delinquencies 1.02% 1.13% 1.09% (6.0%) 3.2% (0.1%) 2.6% (6.9%) Nonperforming L
Slide 38: Solar energy installation overview
Solar energy installation overview Portfolio loans Key statistics $ in billions 1Q23 4Q23 1Q24 Average QoQ change NCO ratio1 0.45% 1.09% 1.31% 55.5% 28.5% 16.4% 11.9% 4.5% 30-89 Delinquencies 0.33% 0.48% 0.36% Period-end QoQ change Nonperforming Loans2 0.04% 1.61% 1.68% 45.5% 22.6% 14.3% 10.2% 3.8%
Slide 39: NPL Rollforward
NPL1 Rollforward Commercial $ in millions 1Q23 2Q23 3Q23 4Q23 1Q24 Balance, beginning of period $263 $334 $345 $281 $326 Transfers to nonaccrual status 121 185 53 93 108 Transfers to accrual status (1) (58) — — (1) Transfers to held for sale — (4) (6) — (3) Loan paydowns/payoffs (22) (77) (39) (20)
Slide 40: 1Q24 adjustments and notable items
1Q24 adjustments and notable items Adjusted EPS of $0.761 1Q24 reported EPS of $0.70 included a negative $0.06 impact from the following notable items: • $33 million pre-tax (~$25 million after-tax2) charge related to the updated FDIC special assessment • Interchange litigation matters: ‒ $17 millio
Slide 41: Non-GAAP reconciliation
Non-GAAP reconciliation Fifth Third Bancorp and Subsidaries For the Three Months Ended $ and shares in millions March December September June March (unaudited) 2024 2023 2023 2023 2023 Net income (U.S. GAAP) (a) $520 $530 $660 $601 $558 Net income (U.S. GAAP) (annualized) (b) $2,091 $2,103 $2,618 $2
Slide 42: Non-GAAP reconciliation
Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries For Three Months Ended $ and shares in millions March December September June March (unaudited) 2024 2023 2023 2023 2023 Average interest-earning assets (a) $195,349 $198,166 $192,216 $189,060 $187,407 Net interest income (U.S. GAAP) (b) $
Slide 43: Earnings presentation end notes
Earnings presentation end notes Slide 3 end notes 1. Reported ROTCE, NIM, pre-provision net revenue, and efficiency ratio are non-GAAP measures: all adjusted figures are non-GAAP measures; see reconciliation on pages 41 and 42 of this presentation and the use of non-GAAP measures on pages 26-28 of t
Slide 44: Earnings presentation end notes
Earnings presentation end notes Slide 18 end notes Data is fiscal year 2023, unless otherwise noted. 1. Data is through 3/31/2024. 2. For Scope 1, Scope 2 and business travel under Scope 3 emissions. 3. Sustainable Bond Report can be found at ir.53.com/esg/Sustainable-Bonds. 4. The timeframe for $2.
Slide 45: Earnings presentation end notes
Earnings presentation end notes Slide 27 end notes 1. Represents forward looking statement, please refer to page 2 of this presentation regarding forward-looking non-GAAP measures 2. Effective July 1, 2023 the rate index transitioned from 1-month LIBOR to compound SOFR + 11.448 bps 3. Forward starti
Slide 46: Earnings presentation end notes
Earnings presentation end notes Slide 37 end notes 1. Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis. 2. Nonperforming portfolio loans and leases as a percent of portfolio loans and leases. 3. FICO distributions at origination exclude ~$80