Slide 1: Investor Update
Exhibit 99.1 Investor Update September 15, 2010 Please refer to earnings release dated July 22, 2010 and 10-Q dated August 9, 2010 for further information, including full results reported on a U.S. GAAP basis Fifth Third Bank | All Rights Reserved
Slide 2: 2Q10 in review
2Q10 in review Continued strong operating results • Net income of $192 million versus 1Q10 net loss of $10 million • Pre-provision net revenue of $567 million consistent with 1Q10 • Average core deposits up $582 million, or 1% sequentially; Average transaction deposits up $1.3 billion, or 2% sequent
Slide 3: Strong profitability results
Strong profitability results Core PPNR / Average assets (Annualized) Core PPNR / NCOs Strong pre-provision profitability… …more than sufficient to absorb credit losses… ROAA Price to Book Value …driving above average profitability. Strong relative profitability not yet reflected in valuation. Source
Slide 4: Net interest income
Net interest income NII and NIM (FTE) • Sequential trends in net interest income and net interest margin reflect weak loan demand and impact of excess liquidity held in cash equivalents – NII down $14M and NIM down 6 bps in 2Q10 over prior quarter • Expect improved NII and NIM in 3Q10 from ($Ms) CD
Slide 5: Balance sheet: Continued growth in core funding
Balance sheet: Continued growth in core funding Average loan growth ($B)^ • CRE loans down 4% sequentially and 14% from the previous year 82 80 • C&I loans were flat sequentially and down 7% from the previous year largely 78 78 77 due to customer pay-downs and deleveraging despite strong origination
Slide 6: Stable income and expense in difficult environment
Stable income and expense in difficult environment • Core noninterest income of $601M declined $23M, or 4%, compared with Core fee income ($M) prior quarter, impacted by lower mortgage banking net revenue • Sequential strength in card and processing revenue (+15%), corporate banking revenue (+14%),
Slide 7: Strong credit metrics compared with peers
Strong credit metrics compared with peers Net Charge-off Ratio (Annualized) HFI NPA Ratio Peer average: 2.5% Peer average: 4.0% “Texas Ratio” HFI NPAs + Over 90s - Reserves / TCE (HFI NPAs + Over 90s) / (Reserves + TCE) Peer average: 11% FITB credit metrics lower than peer average and represent posi
Slide 8: Recent credit trends better than peers
Recent credit trends better than peers Loans 30-89 days delinquent % vs. peers Loans over 90 days delinquent % vs. peers NPA ratio vs. peers Net charge-off ratio vs. peers* (7.5%) (HFS transfer) FITB credit metrics were higher than peers but are now generally better than peers Source: SNL and compan
Slide 9: Non-performing loans
Non-performing loans FITB NPL inflows (relative to loans) vs. Peers Non-performing loans ($M) $2.9B $2.9B $2.7B $2.6B $2.5B Non-performing loans improving with lower severity mix New non-performing loan flows ($M) FITB Non-performing loan inflows have been lower than peers since early 2009. Source:
Slide 10: Strong reserve position
Strong reserve position Industry leading reserve level Reserves / Loans 1. FITB 4.85% 2. KEY 4.16% 3. ZION 4.11% 4. HBAN 3.79% 5. RF 3.71% 6. MI 3.69% 7. PNC 3.46% 8. WFC 3.21% 9. USB 2.83% 10. STI 2.79% 11. BBT 2.66% 12. CMA 2.38% 13. MTB 1.77% Peer Average 3.21% Coverage ratios are strong relative
Slide 11: Robust capital position
Robust capital position Tier 1 capital ratio (with and without TARP) Tangible common equity ratio 13.6% 13.7% Peer average w/ 13.5% 12.6% 12.5% TARP: 11.5% 12.0% 11.0% Peer average: 7.0% 9.2% Peer average w/o TARP: 9.7% Tier 1 common ratio (Tier 1 common + reserves) / RWA Peer average: 10.4% Peer av
Slide 12: Strong liquidity profile
Strong liquidity profile Holding Company cash at 6/30/10: $1.4B Holding company unsecured debt maturities ($M) — Total Fed deposits ~$4.0B Expected cash obligations over the next 12 months (assuming no TARP repayment) — $0 debt maturities — ~$39M common dividends — ~$205M preferred dividends (~$35M
Slide 13: Liquidity management
Liquidity management Over the past two years, Fifth Third has taken a number of steps to strengthen the overall liquidity position of the bank and to strengthen overall liquidity risk management. These items include: — A shift to a more core-funded balance sheet, with a focus on relationship deposit
Slide 14: Majority of footprint beginning to recover
Majority of footprint beginning to recover (Early cycle impact; strong industrial base) Source: Map from Moody’s Analytics, deposit market share data from SNL Financial and FDIC Categories based on Moody’s Analytics’ Adversity Index, which is a composite index of unemployment, industrial production,
Slide 15: Continuing to invest for the future
Continuing to invest for the future 15 Fifth Third Bank | All Rights Reserved
Slide 16: Well-positioned for changed financial landscape
Well-positioned for changed financial landscape Fifth Third’s business model is driven by traditional banking activities — Making loans, taking deposits, treasury management — Largest bank headquartered within core Midwest footprint No significant business at Fifth Third impaired during crisis; core
Slide 17: Peer performance summary – YoY Comparison
Peer performance summary – YoY Comparison Regional FITB bank peer Performance 2Q10 average (1) vs. peers 2Q10 Core pre-tax pre-provision earnings* / 2.0% 1.9% Better average assets (annualized) Average core deposits growth +12% +7% Better Net charge-off ratio / (bps) 2.26% (-82) 2.50% (-3) Better NP
Slide 18: Cautionary statement
Cautionary statement This report may contain 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
Slide 19: Liability mix and pricing discipline drive strong net interest income/NIM results
Liability mix and pricing discipline drive strong net interest income/NIM results Deposits / Assets 2Q10 Cost of Funds Peer Comparison Peer average 69% Peer average 1.06% C&I Spread to 1-month LIBOR • Strong, deposit rich core funding mix supports relatively low cost of funds – Low reliance on whole
Slide 20: Pre-tax pre-provision earnings
Pre-tax pre-provision earnings Core PPNR reconciliation Core PPNR 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Reported PPNR $511 $2,393 $844 $562 $568 $567 Adjustments: Gain on sale of Visa shares - - (244) - - - BOLI charge 54 - - - - - Gain from sale of processing interest - (1,764) 6 - - - Divested merchant an
Slide 21: Manageable commercial real estate exposure
Manageable commercial real estate exposure CRE / Assets CRE / (TCE + Reserves) Peer average: 22% Peer average: 256% CRE exposure lower than peer average; problems relatively more manageable given capital and reserves Source: SNL Financial and company reports. 21 Fifth Third Bank | All Rights Reserve
Slide 22: Troubled debt restructurings (TDR) overview
Troubled debt restructurings (TDR) overview Successive improvement in vintage performance during 2008 and 2009, even as volume of modification increased TDR performance has improved in newer vintages Mortgage TDR 60+ redefault trend by vintage Fifth Third’s mortgage portfolio TDRs have redefaulted a
Slide 23: Industry leading reserve levels
Industry leading reserve levels Reserves / Loans Reserves / NPLs Peer average: 3.2% Peer average: 99% Reserves / NPAs Reserves / Net Charge-offs (Annualized) Peer average: 85% Peer average: 140% Fifth Third is the only bank with both Reserve/NPAs above 1 and Reserves/NCOs >150% Source: SNL Financial
Slide 24: Potential impact of key elements of Dodd-Frank Act and other recent financial legislation
Potential impact of key elements of Dodd-Frank Act and other recent financial legislation* Scope of activity Potential impact** Debit • LTM^ debit interchange revenue $190M • Will not know what “reasonable” and “proportional” mean Interchange – Signature $171M, PIN $19M until after Fed study • LTM d
Slide 25: Fifth Third Debt Ratings
Fifth Third Debt Ratings As of 9/13/10 Fifth Third Bancorp Moody's Standard & Poor's Fitch DBRS Short Term Debt P-2 Short Term Issuer A-2 Short Term Issuer F1 Short Term R-1L Senior Unsecured Baa1 Long Term Issuer BBB Long Term Issuer A- Long Term Issuer AL Outlook Negative Outlook Stable Individual