Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — BancAnalysts Association of Boston Annual Fall Conference 2005
30 slides from Fifth Third Bancorp's conference presentation, Nov 4, 2005
Slide 1: BancAnalysts Association of Boston Annual Fall Conference
BancAnalysts Association of Boston Annual Fall Conference “Investing in a Franchise” Kevin T. Kabat Executive Vice President Neal E. Arnold Executive Vice President November 4, 2005
Slide 2: Affiliates & Markets
Affiliates & Markets I. Affiliate Operating Model II. Markets III. Deposit Performance IV. Loan Performance
Slide 3: Affiliate Bank Operating Model – 19 Affiliates
Affiliate Bank Operating Model – 19 Affiliates FITB Affiliates State Deposits % of 5/3 Assets Bkg Ctrs President Years @ 5/3 Cincinnati OH 11.9 18% $19.2 106 R. Sullivan 4 Chicago IL 8.7 13% 9.6 133 T. Zink 1 Western Michigan MI 7.3 11% 9.4 134 M. VanDyke 4 Detroit MI 4.4 7% 6.9 84 P. Fehring 25 Col
Slide 4: Metropolitan Market Focus
Metropolitan Market Focus Significant De-Novo Market Share Opportunities in Footprint Fifth Third MSA Markets MSA Population Rank Deposits Share % Chicago, IL 9.5 5 $ 8,053 3.4 Detroit, MI 4.6 7 3,403 4.4 Tampa, FL 2.6 11 746 1.8 Cleveland-Elyria, OH 2.2 5 2,707 4.2 Cincinnati, OH-KY-IN 2.1 1 13,057
Slide 5: Demonstrated Long-Term Track Record
Demonstrated Long-Term Track Record 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Avg Demand & NOW 1996 1997 1998 1999 2000 2001 2002 2003 2004 Q3-05 5-year CAGR Interest Checking 18% Demand Deposits 15% 95,000 85,000 75,000 65,000 55,000 45,000 35,000 25,000 $ Millions 5-year CAGR Loans & Leases
Slide 6: Continued Strong Affiliate Loan Results
Continued Strong Affiliate Loan Results 30% 25% 20% 15% 10% 5% 0% Q3-05 YTD Average Total Loan & Lease Growth Florida Chicago Cleveland Nashville North Mich Detroit Lexington North Ky OH Valley Cincinnati Columbus S. Indiana Toledo Grand Rapids Indianapolis Dayton Louisville 13 affiliates grew loans
Slide 7: Retail Banking
Retail Banking I. Funding Balance Sheet Growth II. Retail Deposit Strategy
Slide 8: Improving Balance Sheet Core Funding
Improving Balance Sheet Core Funding Lexington 13 of 17 affiliates have grown loans faster than core deposits in 2005 Q3-05 YTD Average Loan & Core Deposit Growth 30% 25% 20% 15% 10% 5% 0% Detroit Indianapolis Nashville Columbus Chicago OH Valley Florida Toledo Cincinnati Grand Rapids S. Indiana Nor
Slide 9: Driving Deposit Growth
Driving Deposit Growth Deposit balance and account production growth Quarterly deposit campaigns Bundled product sales Enhanced product offerings Competitive everyday rates Improved distribution through de-novo expansion Increased retention and service focus Right price Right product Customer survey
Slide 10: Affiliate Updates
Affiliate Updates I. Fifth Third (Chicago) “Back on Track” II. Fifth Third (Florida)….@ 9 months “It’s Early…but Promising”
Slide 11: Fifth Third (Chicago)…Regaining Traction
Fifth Third (Chicago)…Regaining Traction Almost 40 de-novo banking centers opened in Chicago area since efforts began in late 2002 133 banking centers $9.6 billion in assets $8.7 billion in deposits Year-to-date 2005 Fifth Third (Chicago) highlights: Loan growth of 17% Core Deposit growth of 10% Rev
Slide 12: Fifth Third (Chicago) Balance Sheet Trends
Fifth Third (Chicago) Balance Sheet Trends $ Millions 4,500 4,000 3,500 3,000 2,500 Average Commercial Loans $718 million in growth in 2005 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 $ Millions 3,500 3,250 3,000 2,750 2,500 Average Consumer Loans $370 million in growth in 2005 Q1-04 Q2-04 Q3-04 Q4-04
Slide 13: Fifth Third (Chicago)…A Year Look Back
Fifth Third (Chicago)…A 4 Year Look Back Construction 10% Comm Mtg 24% Comm Lease Consumer 0% 23% C&I Resi Mtg 25% Card 18% 0% Cons Lease 0% Chicago Asset Mix C&I up 72% Consumer up 111% Resi. Mtg. down 74% Total loans up 30% Card 1% Construction Consumer 8% 37% Comm Mtg 16% C&I 31% Comm Lease 1% Re
Slide 14: Fifth Third (Florida) Revenues
Fifth Third (Florida) Revenues $ Millions 55 45 35 25 15 5 Florida Non-interest Income 2004 2005 33% growth Q1 Q2 Q3 YTD 9-30 YTD Highlights Investment Adv. 48% FTPS 172% Deposit Revenues 26% Mortgage 222% Insurance & Other (27%) Year-to-date Revenues up 14% $ Millions 180 160 140 120 100 80 60 40 F
Slide 15: Fifth Third (Florida) Balance Sheet Trends
Fifth Third (Florida) Balance Sheet Trends $ Millions 3,500 3,400 3,300 3,200 3,100 3,000 Average Commercial Loans $213 million in growth YTD Jan Feb March April May June July August Sept $ Millions 2,250 2,000 1,750 1,500 1,250 Average Consumer Loans $522 million in growth YTD Jan Feb March April M
Slide 16: Business Lines
Business Lines 2004 Revenues Processing Solutions 11% Investment Advisors 10% Commercial 28% Retail 51% Processing revenues exclude gain-on-sale Q3-05 Noninterest Revenues Processing Solutions 30% Investment Advisors 14% Deposit Revenues 22% Mortgage 7% Commercial Banking 8% Other 19%
Slide 17: Commercial Banking
Commercial Banking I. Revenue & Net Income Performance II. Loan Performance III. Deposit Performance
Slide 18: Commercial Banking Performance
Commercial Banking Performance $ Millions 2,100 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 Revenue Net Income 800 750 700 650 600 550 500 450 400 $ Millions 2002 2003 2004 Q3-05 annualized 11% revenue growth & 15% net income growth in 2004 Sales force additions still gaining m
Slide 19: Commercial Service Revenues
Commercial Service Revenues Inst. Sales & Pub Fin 10% Loan & Lease 9% International 24% Corporate Fin 6% Other 13% Deposit Revenue 38% Selected Q3-05 Growth Rates Foreign exchange 12% Letters of credit 8% Derivative Sales 266% Underwriting Fees 39% Deposit -based revenues made up 38% of service reve
Slide 20: Superior Commercial Loan Growth
Superior Commercial Loan Growth 30% 25% 20% 15% 10% 5% 0% Florida Lexington OH Valley Indianapolis Chicago Nashville Louisville Detroit N. Mich. Toledo 2004 Average Commercial Loan & Lease Growth 10 affiliates grew commercial loans by more than 10% in 2004 11 affiliates grew commercial loans by more
Slide 21: Commercial Deposit Focused Growth
Commercial Deposit Focused 60% 50% 40% 30% 20% 10% 0% 2004 Average Commercial Demand Deposit Growth Florida Cleveland Cincinnati Chicago Columbus Nashville Indianapolis S. Indiana Detroit Lexington Dayton $ Billions 11 9 7 5 3 Average Commercial Demand Deposits 4.0 4.4 5.3 7.0 8.9 10.3 11 affiliates
Slide 22: Fifth Third Processing Solutions
Fifth Third Processing Solutions I. Business Mix II. Revenue History III. Initiatives
Slide 23: Total FTPS Revenue Mix
Total FTPS Revenue Mix FTPS Revenue 2002 2003 2004 04 Growth Financial Institution $206 $ 216 $250 16% Merchant Services 261 306 305* 29%** Card Services 76 87 102 17% TOTAL $543 $609 $657 22%** Card Services 16% 38% 46% Merchant Services Financial Institution * Includes 2004 impact of sold contract
Slide 24: FTPS Revenue History
FTPS Revenue History $ Millions 800 700 600 500 400 300 200 100 Compound Annual Growth Rate 5-year = 26% 657* Projected 1999 2000 2001 2002 2003 2004 2005 * Includes 2004 impact of sold contacts totaling $70 million in comparable lost annual revenue Fin. Inst. & Card Merchant
Slide 25: Initiatives
Initiatives Cross-sell Merchant Card Processing into existing Commercial & Small Business Customers Improving overall merchant offering to small and middle market customers 33% increase in middle market sales representatives in 2005 Improved per sales rep production from 2.3 to 7.0 deals per month C
Slide 26: Investment Advisors
Investment Advisors I. Business Mix II. Initiatives
Slide 27: Fifth Third Investment Advisors
Fifth Third Investment Advisors 2004 Revenues Asset Mgmt 4% Retail Brokerage 16% Private Client 64% Institutional 16% 2004 Accomplishment 15% revenue growth compared to 4% expense growth 2005 & Beyond Revenue diversification and growth are Job 1 Improving mix of IA revenue to be less dependent on ov
Slide 28: Initiatives
Initiatives Expand sales of investment management nationally through Fifth Third Asset Management (FTAM) Taft-Hartley, Corporate and Public pension client focus Penetrate commercial and small business client base with 401K Retirement Plans and Institutional Management Continued Expansion of Private
Slide 29: The Deposit Opportunity
The Deposit Opportunity Fifth Third has only an 8% market share in the core six-state footprint Fifth Third has a 7% market share on a combined basis in MSA’s greater than 1 million in population FITB State Market Share Ohio Michigan Kentucky Indiana Illinois Florida 6 State Total 11% 9% 7% 6% 3% 2%
Slide 30: Questions
Questions This presentation may contain forward-looking statements about Fifth Third Bancorp and/or the company as combined with acquired entities within the meaning of Sections 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and 21E of the Securities Exchange Act
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