Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Goldman Sachs U.S. Financial Services Conference 2021
19 slides from Fifth Third Bancorp's conference presentation, Dec 7, 2021
Slide 1: Goldman Sachs U.S. Financial Services Conference
1 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Goldman Sachs U.S. Financial Services Conference Tim Spence President December 8, 2021
Slide 2: Cautionary statement
2 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 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
Slide 3: Living our purpose guided by our vision and values
3 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Living our purpose guided by our vision and values Our Vision Be the One Bank people most value and trust Our Core Values Our Purpose To improve the lives of our customers and the well-being of our communities Work as One Bank
Slide 4: Delivering on our financial commitments
4 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Delivering on our financial commitments 1 Differentiating our brand and customer experience 2 Optimizing the balance sheet 3 Driving fee income growth 4 Strategic expense management 2016 long-term commitments Select proof poin
Slide 5: Consistent household growth over the past several years has accelerated
5 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Consistent household growth over the past several years has accelerated ~15% Historical trend of household growth 1.4% 2.5% 2.4% 3.4% 4.0% 2017 2018 2019 2020 Oct-21 YTD Annualized Year-over-year % change; excludes MB Financia
Slide 6: Momentum Banking: Unparalleled value proposition
6 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Momentum Banking: Unparalleled value proposition Combining the best of fintech and traditional banks Free access to payroll up to two days early with direct deposit • ~770K Fifth Third Momentum accounts • ~75% of new customers
Slide 7: Diversified and growing fee revenues
7 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 12% 4% 13% 15% 9% 14% 17% 17% 2015 1Full year adjusted noninterest income and full year adjusted total revenue are Non-GAAP measures. See reconciliations disclosed in the 3Q21 & 4Q15 earnings presentations; 2Peer group is comp
Slide 8: Growing treasury management business while reducing reliance on punitive consumer deposit fees
8 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 19% Growing treasury management business while reducing reliance on punitive consumer deposit fees Successfully lowered the percentage of fees generated from consumers over the past several years ~25% ~75% Deposit fees as a %
Slide 9: Specialized industry verticals generate distinctive financial results and risk management
9 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 2015 3Q21 Specialized industry verticals generate distinctive financial results and risk management Healthcare ~$3.7B Energy (incl. Renewables) ~$3.3B Entertainment, Lodging and Leisure ~$1.7B Retail ~$4.0B Technology Media Te
Slide 10: Well positioned to generate strong commercial loan growth
10 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved % Change 9/30/20 9/30/21 11/30/21 11/30/21 vs. 9/30/21 Total Commercial Portfolio 33.4% 31.1% 31.4% 0.3% Middle Market 32.7% 32.3% 33.9% 1.6% All Industry Verticals 35.3% 31.1% 31.4% 0.3% Other 31.5% 30.3% 29.7% (0.7%) Well p
Slide 11: Significant earnings power in a rising rate scenario given excess liquidity
11 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Significant earnings power in a rising rate scenario given excess liquidity $0 +$5 +$10 $ b ill io n s Deposit Betas 37% 10% P o te n ti a l in c re a s e i n in v e s tm e n t s e c u ri ti e s 1 % change in annual NII versu
Slide 12: Fifth Third value proposition
12 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Fifth Third value proposition Generating strong relationship growth in all our markets with a focus on our Southeast expansion, and on continually improving the digital experience Diversified and growing fee revenues to suppo
Slide 13: Appendix
13 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Appendix
Slide 14: ESG priorities and actions
14 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved ESG priorities and actions Data is for fiscal year 2020, unless otherwise noted; 11/1/2012-6/30/2021; 2For Scope 1, Scope 2 and business travel under Scope 3 emissions; 3In terms of ethnicity or gender; 42016-2020; 5since 200
Slide 15: ESG ratings and recognitions
15 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved ESG ratings and recognitions ESG data providers Third-party recognitions Best Private Bank – Digitally Empowering RMs Global Private Banking Innovations Awards 2021 Winner Most Responsible Companies Recognized by Newsweek in
Slide 16: Securities portfolio will continue to provide differentiated performance
16 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved $2.3 $3.6 $4.5 $4.2 $4.0 $3.6 $3.8 $2.5 $1.6 2019 2020 FY21E FY22E FY23E FY24E FY25E FY26E Securities portfolio will continue to provide differentiated performance 52% 5% 12% 52% 19% 21% 9% 11% 11% Other Non-agency RMBS Non-a
Slide 17: Cash flow hedges continue to protect NIM for next 3+ years
17 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved $8 $8 $8 $8 $8 $8 $7 $7 $7 $3 $3 $2 $1 $1 $1 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $11 $12 $15 $15 $15 $15 $14 $14 $14 $10 $10 $9 $8 $5 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q
Slide 18: Paycheck Protection Program update
18 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Paycheck Protection Program update 1Represents forward looking statement, please refer to page 2 of this presentation regarding forward-looking non-GAAP measures $5.2 $5.1 $5.2 $4.8 $3.1 3Q20 4Q20 1Q21 2Q21 3Q21 Average PPP l
Slide 19: Digital channel usage and engagement
19 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 210 249 3Q20 3Q21 2.62 2.76 3Q20 3Q21 +5% Year-over year growth Digital channel usage and engagement Active digital banking users Digital banking log-ins Digital sales (includes deposits, card, & loans) Digital transactions +
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