Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Barclays Capital Global Financial Services Conference 2014
19 slides from Fifth Third Bancorp's conference presentation, Sep 8, 2014
Slide 1: Barclays Capital Global Financial Services Conference
Exhibit 99.1 Barclays Capital Global Financial Services Conference Kevin Kabat Vice Chair & Chief Executive Officer September 8, 2014 Refer to earnings release dated July 17, 2014 and 10-Q dated August 7, 2014 for further information Fifth Third Bank | All Rights Reserved
Slide 2: Solid 1H14 profitability results
Solid 1H14 profitability results 1 PPNR / Average assets 112% Total Payout Ratio 2.56% 2.13% 1.91% 1.90% 80% 76% 75% 1.84% 1.77% 73% 1.57% 1.54% 1.52% 64% 1.42% 1.38% 46% 44% 1.06% 41% 38% 20% 8% USB WFC PNC MTB FITB BBT HBAN STI RF KEY CMA ZION HBAN KEY FITB CMA USB WFC BBT MTB PNC STI RF ZION Divi
Slide 3: Broad scope of products and services addressing the needs of wide array of customers
Broad scope of products and services addressing the needs of wide array of customers Branch Banking Consumer Lending Wealth Management Wholesale Banking Footprint In footprint markets In footprint markets National consumer lending National commercial banking Business Retail Bank Mortgage Private Ban
Slide 4: Key strategies in the commercial bank driving success
Key strategies in the commercial bank driving success Industry Specialization Treasury Segment Management Specialization Capabilities Healthcare • Expanded suite of Currency Processing products designed to Mid-Corporate Solutions meet full range of • Target clients: healthcare clients’ needs • Innov
Slide 5: Key strategies in the commercial bank driving success
Key strategies in the commercial bank driving success Commercial Bank Revenue ($MM)1 Total Avg. Commercial Loans ($B) 1,400 $60 1,200 $50 1,000 430 403 354 $40 800 338 600 $30 400 772 814 $20 662 696 200 $10 - 1H11 1H12 1H13 1H14 $0 2Q11 2Q12 2Q13 2Q14 Net Interest Income Noninterest Income Middle M
Slide 6: Repositioning consumer bank with investments and strategic changes
Repositioning consumer bank with investments and strategic changes 1 Maximize the value offered and the revenue earned from every relationship • Growth in high value segments Execution consistency Dedicated team of specialists for focused segmentation 2 Optimize the current distribution model • Rede
Slide 7: Repositioning consumer bank with investments and strategic changes
Repositioning consumer bank with investments and strategic changes Consumer deposit activity Retail Banking Headcount Transaction volume by ATM and Mobile channels 18-month change (Dec. 2012 - June 2014) 40% Total Sales FTE 6% 30% 20% Total Service FTE (22%) 31% 10% 22% Total Banking 12% (11%) Cente
Slide 8: Wealth management contributing to ongoing momentum
Wealth management contributing to ongoing momentum Retail brokerage revenue ($MM) 144 Mass market and mass affluent clients 117 Retail – Retirement, investment and education planning, managed Brokerage money, annuities and transactional brokerage services FY11 FY13 Assets under management ($B) Finan
Slide 9: Wealth management contributing to ongoing momentum
Wealth management contributing to ongoing momentum Investment advisory fees ($MM) Total Revenue ($MM) $550 $390 $500 $450 154 $370 117 $22 $13 $400 113 $350 $350 $31 $393 $300 $330 $250 $361 373 396 406 $353 $200 $310 $330 $150 $100 $290 $50 2010 2011 2012 2013 2011 2012 2013 IA Fees (excl. mutual f
Slide 10: Adding value through newly created Payments and Commerce Solutions division
Adding value through newly created Payments and Commerce Solutions division Efficiencies Competitive Future Gained Advantage Opportunity How we will control expenses How we will compete with How we will increase our and grow revenue non-bank entities value proposition • Resource optimization • Exten
Slide 11: Balance sheet positioning
Balance sheet positioning • Asset sensitive positioning Fixed / Floating Portfolio 1 • Mix of asset classes (59% commercial, 41% Interest-Earning Assets Funding consumer) Investment Investment Portfolio 3% Portfolio • Disciplined loan growth 18% Non- Fixed – Focused in areas with strong cross-sell I
Slide 12: Expense discipline
Expense discipline 2Q14 Efficiency ratio • Operating leverage strategic priority in all Peer median: 64% environments • Expect continued improvement in 2014 • Mid-50% efficiency ratio target in normalized interest rate environment Noninterest expense ($MM) • Carefully managing expenses in response t
Slide 13: Strong capital position
Strong capital position 1 Tier 1 common equity 1Q12-2Q14 Common Equity Repurchased / 2011 Total Common Equity From building capital… …to maintaining …through share repurchase activity capital at relatively stable levels… Capital generation and overall capital position, well above current and future
Slide 14: Valuable ownership stake in Vantiv, Inc.
Valuable ownership stake in Vantiv, Inc. March 2009 March 2009 – Present Ongoing impact Significant unrecognized value unlocked Realizing earning potential Positioned well to generate future value $2.35 billion1 enterprise value Recognized value to date • Currently own 23% interest in ($MM pre-tax)
Slide 15: Investment thesis
Investment thesis Managing Investing in the prudently in the future of our current company competitive environment Creating Continuously shareholder value improving all of with long-term our business focus while platforms to optimizing our adapt to changing current environment opportunities 15 Fifth
Slide 16: Cautionary statement
Cautionary statement This report 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 pr
Slide 17: Appendix
Appendix 17 Fifth Third Bank | All Rights Reserved
Slide 18: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) For the Three Months Ended June March December September June 2014 2014 2013 2013 2013 Income before income taxes (U.S. GAAP) $606 $438 $561 $604 $841 Ad
Slide 19: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) For the Three Months Ended June March December September June 2014 2014 2013 2013 2013 Total Bancorp shareholders' equity (U.S. GAAP) $15,469 $14,826 $14
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