Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — RBC Capital Markets Financial Institutions Conference 2020
14 slides from Fifth Third Bancorp's conference presentation, Mar 11, 2020
Slide 1: RBC Capital Markets Financial Institutions Conference 2020
RBC Capital Markets Financial Institutions Conference 2020 Greg D. Carmichael Chairman, President & Chief Executive Officer March 11, 2020 Exhibit 99.1
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 for the current economic environment
Well positioned for the current economic environment Credit risk management Interest rate, capital and liquidity risk management Well positioned given previous balance sheet optimization (which included $5BN of C&I and ~$2BN commercial leasing exits) CRE as a percentage of total capital <80% lowest
Slide 4: Early cycle hedge & investment portfolio management to provide long term NIM protection
Early cycle hedge & investment portfolio management to provide long term NIM protection Cash flow hedges ($s in billions) $8BN swaps @ ~3.02% receive fixed rate $3BN floors @ 2.25% 1 month LIBOR strike Less reinvestment risk and longer duration portfolio will continue to provide NII support vs. peer
Slide 5: Strong relative NIM performance
Strong relative NIM performance Peer leading YoY NIM performance, consistent with prior guidance and disclosures Actual change in adjusted NIM1 4Q18-4Q19 (bps) Expect to continue proactively repricing deposits ~90% of total CDs mature over next year 1Q20: $3.3BN @1.98% 2Q20: $2.6BN @1.88% 3Q20: $1.3
Slide 6: Diversified commercial loan portfolios
CRE as a % of Total Capital1 Exposures by industry Diversified commercial loan portfolios C&I Manufacturing Leveraged Lending Shared National Credit Portfolio SNC by industry sector Exposures by subsector Commercial Real Estate ~50% of SNC balances represent investor grade equivalent borrowers >75%
Slide 7: Limited exposures to stressed sectors and proactive balance sheet management
Limited exposures to stressed sectors and proactive balance sheet management Oil & Gas ~$3BN in balances (~2.7% of loans), mostly in oil >80% in reserve-based lending (RBL); <7% in OFS ~RBL clients are well-hedged against lower commodity prices Aviation Hotels & Resorts Amusement, Casinos & Gambling
Slide 8: Diversified and growing fee revenues
9% CAGR 2017 2019 Adjusted fees1 as a % of total revenue1 37% 36% 1Full year adjusted fee income and full year adjusted total revenue as disclosed in the 4Q19 & 4Q17 earnings presentations; 2Peers include: KEY, HBAN, CFG, CMA, FHN, RF, ZION, PNC, MTB, & TFC Deposit fees Wealth & Asset management Cor
Slide 9: Remain well-positioned to outperform through the full economic cycle
Remain well-positioned to outperform through the full economic cycle Resilient Balance Sheet Proactive Management Diversified Revenue Mix 1 2 3
Slide 10: Appendix
Appendix
Slide 11: Strong liquidity profile as of 4Q19
Strong liquidity profile as of 4Q19 $ millions – excl. Retail Brokered & Institutional CDs Unsecured debt maturities Heavily core funded Holding company: Holding Company cash as of December 31, 2019: $4.1B Cash currently sufficient to satisfy all fixed obligations in a stressed environment for ~26 m
Slide 12: Balance sheet positioning as of 4Q19
100% Fix | 0% Variable 76% Fix | 24% Variable Balance sheet positioning as of 4Q19 Investment portfolio $18.8B fixed | $51.3B variable 1,2,3 Commercial loans1,2,3 Consumer loans1 Long-term debt4 $30.5B fixed | $10.4B variable 1 $11.0B fix | $4.0B variable 4 1ML based: 60%6 3ML based: 6%6 Prime based
Slide 13: Interest rate risk management as of 4Q19
Interest rate risk management as of 4Q19 Estimated NII sensitivity profile and ALCO policy limits Estimated NII sensitivity with deposit beta changes Estimated NII sensitivity with demand deposit balance changes 1 Effective duration of the taxable available for sale portfolio; 2Re-pricing percentage
Slide 14: Oil & gas portfolio well-positioned to withstand lower energy prices
Oil & gas portfolio well-positioned to withstand lower energy prices Balance Mix Meaningful differences from last cycle Fifth Third RBL client cash flow leverage 2015 2019 Portfolio is less levered and more hedged than before the last downturn We are deliberately underweight in OFS which we believe
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