Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Investor Day (December 2017)
193 slides from Fifth Third Bancorp's investor day presentation, Dec 7, 2017
Slide 1: Fifth Third Bancorp Investor Day December 7, 2017
Fifth Third Bancorp Investor Day December 7, 2017 Exhibit 99.1
Slide 2: Firm Overview
Firm Overview Greg D. Carmichael President & Chief Executive Officer 1
Slide 3: 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 4: History of growth and developing innovative customer solutions
History of growth and developing innovative customer solutions 3 Fifth Third traces its origins to the Bank of the Ohio Valley, which opened in Cincinnati in 1858. 1858 In 1871, the bank was purchased by the Third National Bank. The Queen City National Bank of Cincinnati (which eventually changed it
Slide 5: Well-positioned franchise and focused footprint
Well-positioned franchise and focused footprint 1Consumer includes branch banking and consumer lending business segments; 2SNL Financial as of 3Q17, EOP loans including HFS; 3The 2016 Monitor Daily – The 100 Largest Equipment Finance/Leasing companies in the U.S., banks only included in ranking; 4EY
Slide 6: Inaugural investor day – why now?
Transparency of key objectives and expectations Highlight our ability to execute Opportunity to meet the broader Fifth Third management team Inaugural investor day – why now? 5
Slide 7: What is different about Fifth Third today?
Building a franchise that will allow us to perform well through business cycles Assembled a team of experienced leaders that deliver results, think strategically, and operate at an accelerated “pace of play” Leveraging data, technology, strategic partnerships, and agile methodology to deliver soluti
Slide 8: Taking decisive actions to drive the company forward
Taking decisive actions to drive the company forward Balance sheet optimization Deliberately exited ~$5 billion in C&I loans Improved criticized and non-performing assets Thoughtfully monetized Vantiv ownership Curtailed indirect auto originations Sold non-core agent credit card portfolio Efficiency
Slide 9: Strategic priorities for the company
Strategic priorities for the company 1 2 3 Growing profitable and enduring relationships Continuously improving the customer experience 4 Leveraging analytics and technology Prudent capital management Focused on creating long term shareholder value 8
Slide 10: Growing profitable and enduring relationships
Growing profitable and enduring relationships Partnering with commercial clients Maintaining disciplined underwriting standards Growing credit cards and personal loans Generating household growth 1 $ 9
Slide 11: Improving the customer experience
Improving the customer experience Our customer solutions aim to be seamless, convenient, fast and flexible Tailored and needs-based We want our customers to see us as a strategic partner 2 4+ #3 Retail Banking 12017 Greenwich Associates National Best Brand Awards for Middle Market Banking (companies
Slide 12: Prudent capital management
Prudent capital management 3 3Q17 YTD total payout ratio exceeded 100% CCAR 2017 non-objection to pay out ~120% of consensus earnings3 Continue to thoughtfully lower ownership stake in Vantiv; generated over $5 billion in cumulative pre-tax gains for shareholders Strengthened balance sheet and impro
Slide 13: Leveraging analytics, technology, and innovation
Leveraging analytics, technology, and innovation Return and risk-focused technology investments 4 Growth through improved analytics, data-driven solutions, and agile methodology Branch analytics Marketing analytics Agile methodology Partnerships and growth incubators Innovation center Information-dr
Slide 14: Led by an experienced & energized management team
Led by an experienced & energized management team Management team is listed by alphabetical order of last name Name Title Industry Experience Greg Carmichael President & CEO 14 years Lars Anderson Chief Operating Officer 33 years Frank Forrest Chief Risk Officer 41 years Aravind Immaneni Chief Opera
Slide 15: Governed by an accomplished and diverse Board
Governed by an accomplished and diverse Board Name Title Retired CFO, Orbitz Worldwide, Inc. Chairman, President and CEO, American Electric Power Company Partner, McGuire-Woods LLP Retired CEO, North America Accenture Executive Vice President, Cincinnati Bengals, Inc. Retired President and COO, M&T
Slide 16: Executive compensation aligned with shareholder interests
Stock appreciation rights Restricted stock units Executive compensation aligned with shareholder interests A significant portion of executive compensation consists of long-term incentive awards Executive compensation is designed to be aligned with the long-term interest of shareholders Compensation
Slide 17: Ensuring Fifth Third remains a great place to work
Ensuring Fifth Third remains a great place to work New workspace design Focus on healthy living Maternity concierge Dedicated employees driving the execution of strategic priorities Recent Accolades Engaged employees have the single biggest impact on customer satisfaction 4x Recipient Attract and re
Slide 18: Implementing NorthStar strategies to achieve financial targets
Capital Markets Financial Risk Mgmt. ‘2020’; Advisory Implementing NorthStar strategies to achieve financial targets 1 Differentiating our brand and customer experience 2 Optimizing the balance sheet Driving fee income growth 3 4 Strategic expense management Consumer Payments Commercial Wealth 5 Pos
Slide 19: Making lives a Fifth Third better
Making lives a Fifth Third better $30 Billion Community Commitment $312 million invested through the Fifth Third Community Development Corporation $13 billion as of September 2017 (ahead of schedule by 20%) $3.3 billion of small business loans $4 billion in community development loans $32 million in
Slide 20: Guided by the vision to be the One Bank
Guided by the vision to be the One Bank people most value and trust One Bank We have organized our bank around collaborating together and providing holistic solutions for our customers People Including current and prospective customers, employees, shareholders, regulators and the communities we serv
Slide 21: In summary
In summary Annualized 4Q19 targets ROTCE: upper end of 12 - 14% ROA: mid to upper end of 1.1 - 1.3% Efficiency: <60% Through-the-cycle outperformance Executing on strategic priorities Differentiated Driving long-term shareholder value 20
Slide 22: Schedule for the day
Schedule for the day Start Topic Speaker(s) 9:00 AM Firm Overview Greg Carmichael Risk Management Frank Forrest Brand, Analytics, Digital & Payments Tim Spence, Melissa Stevens, & Jed Scala 10:50 AM Break (10 minutes) Technology & Operations Aravind Immaneni Consumer Bank Phil McHugh 12:00 PM Lunch
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Slide 24: Risk Management
Risk Management Frank Forrest Executive Vice President Chief Risk Officer
Slide 25: 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 26: Risk Management mission
Risk Management mission To ensure enterprise risks are managed within our risk appetite and in alignment with our strategic and financial plans. We manage risk through disciplined programs and practices designed to: Drive consistent performance through the cycle Ensure regulatory compliance Enable p
Slide 27: Risk management organization has been enhanced
Frank Forrest Chief Risk Officer Risk management organization has been enhanced Consolidated risk management, credit, and compliance functions in 2014 Improved depth of risk management talent throughout the organization Average of 26 years of experience across the leadership team at large financial
Slide 28: Transformed risk management infrastructure across the bank
$65M incremental investment in people $10M investment in process $84M investment in technology Transformed risk management infrastructure across the bank ~$160 million invested to strengthen compliance and risk management over the last 5 years Key enhancements in risk and compliance programs, govern
Slide 29: Targeted areas of focus
Targeted areas of focus Compliance risk Operational risk Compliance risk management Financial crimes compliance Regulatory change management Operational risk management Vendor risk management Fraud risk management Cyber risk management Improved identification, monitoring and reporting of financial c
Slide 30: Conduct Risk is well managed across the organization
Conduct Risk is well managed across the organization in alignment with our core values Our Corporate Responsibility and Reputation Office focuses on five key areas: Corporate responsibility and ethics community & economic development diversity & social responsibility corporate communications reputat
Slide 31: Significant progress to enhance risk management across all risk categories
Significant progress has been made to enhance risk management across all risk categories All risk categories are at solid or strong maturity Progress is reported to our Board of Directors on a quarterly basis Strong risk management Credit risk Market risk Liquidity risk Compliance risk Operational r
Slide 32: Significant reduction in operational losses
Enhanced compliance and risk management practices have contributed to significant reduction in operational losses Since the peak in 2013, losses have been reduced by over 60% Significant reduction in legal losses, including resolution of material regulatory matters, has driven the decline in operati
Slide 33: Credit
Credit Risk Management Fith Third Bancorp | Al Rights Reserved
Slide 34: Disciplined credit risk management has resulted in improved asset quality
Disciplined credit risk management has resulted in improved asset quality Significant decrease in non-performing assets (NPA) and credit losses Portfolio distribution 2007 Portfolio distribution 2017 3Q17
Slide 35: Re-aligned strategies to reduce risk profile
Re-aligned strategies to reduce risk profile Exited or curtailed several business that no longer fit our risk profile Improved portfolio composition should perform more consistently through the cycle New growth strategies are aligned with risk appetite for effective balance of risk and return Commer
Slide 36: Consumer Credit
Consumer Credit
Slide 37: Growth strategies for Consumer lending products within risk appetite
Growth strategies for Consumer lending products will remain within risk appetite Consumer Portfolio annual net charge-off rate Long-term portfolio mix Consumer charge-offs by product type Long-term outlook 0.45 - 0.55% Long-term growth objectives Mortgage Product Type Balances Projected Growth Auto
Slide 38: Unsecured Personal Lending targeted for growth
Unsecured Personal Lending is targeted for growth within our prudent risk profile Targeting growth in Unsecured Personal Lending based on response to digital transformation and consumer borrowing preference Currently 4% of Consumer portfolio, projected to rise to 6% - 8% over time Average Yield of 6
Slide 39: Consumer Auto strategy focused on better risk adjusted returns
Term at origination Consumer Auto strategy is focused on driving better risk adjusted returns Auto balance and spread Auto portfolio annual net charge-off ratio Long-term outlook 0.35 - 0.45% FICO score at origination Successfully driving better risk-adjusted returns in a highly competitive market t
Slide 40: Consumer Card strategy focused on disciplined growth
Consumer Card strategy focused on disciplined growth 12005 losses elevated due to bankruptcy law change which pulled forward losses that likely would have been occured in 2006/2007 FICO Score at origination $2.2 billion portfolio; 6% of overall Consumer Portfolio Strategy to grow portfolio within ri
Slide 41: Commercial Credit
Commercial Credit
Slide 42: Continued asset quality improvement
Continued asset quality improvement Well diversified portfolio; managed through strict industry and concentration limits Favorable credit quality trends across criticized, non-performing assets, and losses Commercial Portfolio annual net charge-off rate Commercial portfolio Commercial Portfolio crit
Slide 43: CRE is 15% of total commercial loan portfolio
CRE is 15% of our total commercial loan portfolio by exposure Land and Residential Home Builder exposure has declined by $6 billion since 2007, and is now 11% of portfolio compared to 42% in 2007 Largest concentration in multi-family which historically has shown better performance Portfolio is manag
Slide 44: Shared National Credit portfolio is well diversified
Shared National Credit portfolio is well diversified with solid credit quality By industry sector We have relationships beyond credit with approximately 75% of SNC clients Independently underwrite each transaction Borrowers are investment grade or near investment grade Supportive of Vertical and Cap
Slide 45: We have transformed risk management
Strengthened risk leadership, programs, and governance Enhanced risk culture and accountability Significantly improved asset quality Substantially reduced operational losses Well positioned with our regulators These outcomes have positioned us to perform well through all cycles In summary, we have t
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Slide 47: Frank Forrest Bio
Frank Forrest Bio Executive Vice President Chief Risk Officer Date Joined Fifth Third: September 2013 Positions Held at Fifth Third: 2013Chief Risk Officer Frank Forrest, executive vice president and chief risk officer, assumed his current role in September 2013. He is responsible for all risk manag
Slide 48: Mortgage portfolio managed well with minimal losses
Mortgage portfolio managed well with minimal losses FICO distribution at origination Mortgage portfolio annual net charge-off rate Trend weighted average FICO and LTV Long-term outlook 0.05 - 0.10%
Slide 49: Home Equity portfolio managed to risk appetite
Home Equity portfolio managed to risk appetite Home Equity portfolio annual net charge-off rate FICO distribution at origination Trend weighted average FICO and LTV Long-term outlook 0.27 - 0.37%
Slide 50: Limited higher-risk retailer exposure
Limited higher-risk retailer exposure with stringent client selection $3.1B of higher-risk Retailer exposure, which represents 3% of the portfolio ~98% of Specialty & general C&I balances are ABL or investment grade; ~2% of balances are criticized ~16% of CRE balances are investment grade; ~1% of ba
Slide 51: Market Risk is managed to a low risk tolerance
Market Risk is managed to a low risk tolerance Prudent management of interest rate risk in recognition of uncertain environment Client focused Capital Market activities – limited market risk Subject to Independent Risk oversight program Governed by Asset Liability Management Committee (ALCO) and Mar
Slide 52: Liquidity Coverage Ratio well within regulatory minimums
Liquidity Coverage Ratio well within regulatory minimums Measured and managed daily Holding Company has cash to satisfy obligations for 21 months in a stressed environment Transparent disclosures Subject to independent risk oversight program Based on initial U.S. NPR, we believe we would be complian
Slide 53: Strategic Differentiators: Brand, Analytics, Digital & Payments
Strategic Differentiators: Brand, Analytics, Digital & Payments Tim Spence Executive Vice President Chief Strategy Officer Melissa Stevens Senior Vice President Chief Digital Officer Jed Scala Executive Vice President Head of Payments reprint
Slide 54: 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 55: Forces reshaping banking market dynamics
Forces reshaping banking market dynamics Expectations are evolving, driven by the customer’s ‘last best experience’ Technology is transforming when and how we interact The pace and volume of data growth is exponential Competition is increasing driven by macro economics and new entrants
Slide 56: Key differentiators that will accelerate achieving our goals
Key differentiators that will accelerate achieving our goals for the company 1 Growing profitable and enduring relationships 2 Continuously improving the customer experience 4 Leveraging analytics and technology 3 Prudent capital management Leveraging advanced analytics to deliver a highly personali
Slide 57: A key focus for our NorthStar targets
Capital Markets Fin Risk Mgmt. ‘2020’; Advisory A key focus for our NorthStar targets 1 Differentiating our brand and customer experience 2 Optimizing the balance sheet Driving fee income growth 3 4 Strategic expense management Consumer Payments Commercial Wealth 5 Positive operating leverage from t
Slide 58: A strong brand drives business performance
A strong brand drives business performance Low consideration markets3 High consideration markets3 Low consideration markets3 High consideration markets3 50% Millward Brown’s Top-100 global brands index1 outperform the S&P 500 by 10-50% of purchase decisions are accounted for by brand loyalty and per
Slide 59: What do customers want? A better kind of bank
What do customers want? A better kind of bank Simplicity, speed, and security Access Value-added advice and solutions “Be different” 1Fifth Third’s collective wisdom community survey – customer panel of 5,000 participants surveyed twice per month 91% of Millennials prefer simple, streamlined solutio
Slide 60: Our story: Putting 166.7% into everything we do
Our story: Putting 166.7% into everything we do Heritage & culture | Brand linkage | Competitive commitment ®
Slide 61: Strong early returns from A Fifth Third Better
Strong early returns from A Fifth Third Better Ad Salience “Stands out as very / somewhat different.” +12% Ad Recall “I remember the ad.” +22% Brand Linkage “I know it was Fifth Third.” +31% Brand Consideration “I would consider Fifth Third for my next financial need.” +16%
Slide 62: Sustaining momentum with new campaign creative
Sustaining momentum with new campaign creative reprint
Slide 63: Building best-in-class data & analytics capabilities
Next Generation Data Architecture Dedicated Data Organization Analytics & Info Delivery Services Data Science & Innovation Building best-in-class data & analytics capabilities Significant investment in big data infrastructure ~70 TB of data within the data lake today ~1,000 TB of data in the lake by
Slide 64: Strategic focus on applications that drive revenue and efficiency
Distribution Optimization Intelligent Automation Product Innovation Marketing Strategic focus on applications that drive improved revenue and efficiency Direct marketing optimization Retail network optimization Back-office process automation Real-time fraud monitoring and alerts Personalized financi
Slide 65: Customer Focused Innovation
Customer Focused Innovation The Amplify Program Emerging Technologies & Monetizing Investments Collaborative Ecosystem Development FinTech@53 Delivering innovative solutions to our clients with a “Buy-Partner-Build” philosophy
Slide 66: FinTech partnerships
2018+ pre-2016 Technology provider to merchants offering POS financing for customers Leading provider of electronic billing and payment solutions Industry leader in automating invoice and payment processes Leader in cash mgmt and payment solutions across the gaming industry Provider of payroll servi
Slide 67: FinTech partnerships contributing to NorthStar
Super-prime focus Within risk appetite $550+ 2017 forecast 2019 EOP Current partnerships In active negotiation High margin, recurring revenue Improved loyalty benefits not included $10+ $100+ 2017 forecast 2019 Q4 annualized Current partnerships Loan balances (in $MMs) NII + Fees (in $MMs) $2,000+ F
Slide 68: Digital Strategies
Digital Strategies Melissa Stevens Senior Vice President Chief Digital Officer
Slide 69: Technology is changing customer expectations and behavior
Technology is changing customer expectations and behavior Customers desire a simple, seamless experience Customers want to be met at their point of need Customers require immediacy Customers seek extreme personalization
Slide 70: Digital adoption is increasing rapidly: Consumer Bank
Digital adoption is increasing rapidly Consumer Bank Mobile Channel Usage Number of mobile channel logins Adoption in Alerts % of digital checking household enrolled in alerts Mobile & ATM Deposit Transactions % of non-teller deposit transactions (mobile & ATM) +40% Checking Account Sales via Digita
Slide 71: Digital adoption is increasing rapidly: Commercial Bank
Digital adoption is increasing rapidly Commercial Bank 1Number of transactions made YTD 3Q 2016 & 2017 2Companies considered active have used mobile at least one time in the past month 53 Direct adoption Number of companies setup 53 Direct users Number of users set up Transactions processed through
Slide 72: Ratings and reviews reflect strength of core digital channels
Ratings and reviews reflect the strength of our core digital channels A top rated mobile app Leader in online banking capabilities Top quartile digital performance Leader in business intelligence implementation Named a Leader in Money Movement and Customer Service for online banking categories Top q
Slide 73: Customer insights drive omnichannel experience design
Customer insights drive omnichannel experience design and innovation opportunities
Slide 74: Transforming how we work
Transforming how we work Promoting a culture where business innovation is tangible and encouraged Clearly defining roles and identifying innovation facilitators Outlining a roadmap to guide all Fifth Third innovation activities Created a digital and innovation capability center Enabled a comfortable
Slide 75: Introducing Fifth Third Momentum
Developing digital experiences that are attractive to millennials Introducing Fifth Third MomentumTM Number of downloads in the first 90 days Paid per day towards customers’ student loans 25k+ $1,300+ Through using Momentum, I am on track to pay off my loans 7 years earlier! Download the app and enr
Slide 76: Digital experiences attractive to millennials: Zelle
Developing digital experiences that are attractive to millennials Increase in transaction volume of P2P payments Amount transacted by Zelle users since launch 238% $100MM+ The first bank to launch Zelle with Siri integration
Slide 77: Enhancing digital capabilities within the commercial experience
Enhancing digital capabilities within the commercial experience Enhancing online and mobile capabilities to improve our client and their team’s experience Iris (RM Portal): Improving banker digital / analytic capabilities
Slide 78: What’s next: advancing digital capabilities
What’s next: advancing digital capabilities Digital Mortgage Application Digital Personal Lending Commercial Liquidity Portal Electronic FX trading platform 25
Slide 79: Payments & Commerce Solutions
Payments & Commerce Solutions Jed Scala Executive Vice President Head of Payments Print to the end
Slide 80: Growing payments is strategically important
Large, growing, attractive market New entrants present opportunities Increased expectations Relationship cornerstone Higher return business Provides diversification & resiliency Key contributor to NorthStar strategy Growing payments is strategically important Market Dynamics Customer Imperative Fina
Slide 81: A Top Industry Player
1The Nilson Report – data full year 2016 22017 EY Cash Management Survey; data for January 2017; currency processing as of full year 2016 3 Number of Debit cards, credit cards, banking households with a card and annual transactions, number of middle market and corporate banking relationships and mid
Slide 82: Significant financial contribution with strong returns
12Q17 ROA given substantial impact in 3Q17 from the gain on sale of Vantiv shares 1 Mix of Consumer vs. Commercial Revenue Fee Oriented Revenue Strong Return on Assets Significant Revenue Contribution Significant financial contribution with strong returns
Slide 83: Momentum and opportunity by product
YoY Momentum1 Opportunity Products Optimize Traditional Offerings Accelerate Momentum in New Offerings Credit Cards (Consumer) Commercial Product Suite (Commercial Card + Treasury Mgmt.) Health Accounts Currency Processing Digital Payments & Commerce Solutions Deposits Revenue Revenue Revenue Spend
Slide 84: Four advantages to collectively leverage for growth
“Right Level” of Scale Commercializing Innovation Relationship Leverage Single Payments Organization Agile with resources Penetrate payment niches Heritage of innovation FinTech & digital solutions Lower marketing costs Wide data set Focused talent & expertise Synergies & efficiency Four advantages
Slide 85: NorthStar: Investing in customer solutions and advanced analytics
NorthStar: Investing in two key focus areas – customer solutions and advanced analytics 1 Insight-driven customer solutions to create differentiation Refresh products Design new services Enhance customer experiences 2 Advanced analytics to drive engagement and results Increase analytical talent Orga
Slide 86: Commercial solutions in cash processing
Insight-driven customer solutions create differentiation Commercial solutions in cash processing 1 Cash logistics--costly & operationally intensive Reimagined “vault” and associated cash servicing Created Currency Processing Solutions (CPS) Expected 2017 revenue from service fees Annual revenue grow
Slide 87: Commercial solutions with FinTech partners
Insight-driven customer solutions create differentiation Commercial solutions with FinTech partners 1 Partnered with a FinTech for e-commerce receivables solution Extended reach & relevance of current solution Created adjacent revenue streams + equity investment YoY revenue growth YoY increase in tr
Slide 88: Commercial Solutions across the B2B value chain
Insight-driven customer solutions create differentiation Commercial Solutions across the B2B value chain 1 Changed Supplier Management to Green per discussion with Bridgit Billing & delivery Payment collection Customer loyalty Sales Ordering Payment disbursement Invoice reconciliation Order processi
Slide 89: Consumer solutions in credit cards
Insight-driven customer solutions create differentiation Consumer solutions in credit cards 1 Increase in spend active cards in the portfolio1 +6.4% More relevant rewards & revolver value propositions for customers and prospects Upgrading our value proposition to attract high potential customers Fif
Slide 90: Advanced analytics in Commercial
Advanced analytics drive results and engagement Advanced analytics in Commercial 2 Created “data lake” of all payment data Developed B2B payments insights Enabled card payment optimization Spend increase from early adopters Early spend pipeline growth 2x $259MM Reduced costs from electronic payments
Slide 91: Advanced analytics in Credit Card
Advanced analytics drive results and engagement Advanced analytics in Credit Card 2 Foundational analytic testing on key portfolio management levers Deploying first set of enhanced line increase campaigns Implemented inactive card cancellation— ongoing process to reduce risk Projected growth in bala
Slide 92: Payments & Commerce Solutions summary
Payments & Commerce Solutions summary Existing large scale business with attractive returns Extending advantages by investing in customer solutions & analytics Executing at pace against a range of growth opportunities Targeting profitable growth and consistent performance
Slide 93: Brand, Analytics, Digital, and Payments summary
Market dynamics are creating the opportunity and imperative to reimagine the business model Brand, Analytics, Digital, and Payments summary Fifth Third is investing in key areas of differentiation to deliver a superior client experience and our NorthStar targets Strategies in each area are already b
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Slide 95: Tim Spence Biography
Tim Spence Biography Tim Spence is executive vice president and chief strategy officer. He is responsible for Fifth Third’s corporate strategy, innovation, marketing, decision analytics, corporate development and FinTech partnerships teams, as well as the bank’s Payments & Commerce Solutions line of
Slide 96: Melissa Stevens Biography
Melissa Stevens Biography Melissa Stevens serves as senior vice president, chief digital officer and head of omnichannel banking, design and innovation. She is charged with ensuring a client-centric, digital-first approach to all areas of the Bank, including Consumer Banking, Commercial Banking, and
Slide 97: Jed Scala Biography
Jed Scala Biography Executive Vice President, Head of Payments & Commerce Solutions Date Joined Fifth Third: October 2017 Positions Held at Fifth Third: 2017Head of Payments & Commerce Solutions Jed Scala serves as Executive Vice President and Head of Payments & Commerce Solutions for Fifth Third Ba
Slide 98: Technology & Operations
Technology & Operations Aravind Immaneni Executive Vice President Chief Operations & Technology Officer
Slide 99: 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 100: Technology & Operations is a significant contributor to NorthStar
Capital Markets Financial Risk Mgmt. ‘2020’; Advisory Technology & Operations is a significant contributor to our NorthStar strategy 1 Differentiating our brand and customer experience 2 Optimizing the balance sheet Driving fee income growth 3 4 Strategic expense management Consumer Payments Commerc
Slide 101: The evolution of technology is changing banking
The evolution of technology is changing banking Digitization, Automation & Big Data are Enabling Transformation An opportunity exists to differentiate against our peers, deliver against our objectives, and continue to provide a great customer experience Mobile is Changing the Way the Experiences are
Slide 102: FinTechs are leveraging evolving technologies to disrupt Financial Services
FinTechs are leveraging evolving technologies to disrupt Financial Services across the ecosystem References to trademarks and/or names of third parties or third party products or services are not an endorsement and are not intended to designate an association with Fifth Third.
Slide 103: Transformation along 4 key dimensions
Build an innovation culture Transform how we work Upgrade employee tools to empower collaboration Reengineer our infrastructure and technology architecture HOW? Transformation along 4 key dimensions
Slide 104: Reengineering infrastructure & technology architecture
Reengineering our infrastructure & technology architecture Transform Infrastructure Transition To Cloud Migrate To API Based Architecture Platform as a Service (PaaS) Private Cloud Public Cloud Legacy Architecture Standardize Connectivity & Access Software Providers Service Providers Customized, Poi
Slide 105: Leveraging newly-built data environment
Leveraging newly-built data environment to deliver against our NorthStar strategy Data as a corporate asset for multiple bank-wide use cases Hadoop Big Data Environment Payment Transactions Card Analytics Regulatory Reporting Predictive Fraud Analytics Geospatial Customer 360
Slide 106: Enhancing information security capabilities
Enhancing information security capabilities Being mindful of potential cyber security risks as we transform our infrastructure and evolve our capabilities Investing in a state-of-the-art cyber fusion center Anomaly detection capabilities NSA/DHS accredited workforce Continuous cyber resiliency testi
Slide 107: Transforming how we work
Transforming how we work Agile Intelligent Automation Workforce Management Cross Functional Teams Eliminate Waste Iterative & Collaborative Approach Frequent User Feedback 80-100 squads across multiple business lines by end of 2018 70 targeted use cases by end of 2018 ~2,600 employees on WFM system
Slide 108: Upgrading employee tools to empower collaboration
Upgrading employee tools to empower collaboration Soft Phones Bring Your Own Device Virtual Desktop Cloud Applications & Workplace Mobility Integrated Web Conferencing Wi-Fi Mobility via tablet in Branches & Call Center 2016 2017 2018 2019 Enables innovation and Agile transformation
Slide 109: Building an innovation culture
Building an innovation culture Collaborating with local universities and start-ups to attract talent that can innovate in emerging technologies such as Blockchain, Artificial Intelligence and Big Data Customer-Focused Innovation Collaborative Ecosystem Development FinTech@53 Emerging Technologies
Slide 110: Closing Comments
Closing Comments 1 Enabling our NorthStar strategy 2 Upgrading our infrastructure to adapt to rapidly evolving environment 3 Leveraging big data to drive insights, products, services, and relationships 4 Building a culture, work practices, and tools to enable agility and innovation 5 Attracting top
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Slide 112: Aravind Immaneni Biography
Aravind Immaneni Biography Aravind Immaneni is Executive Vice President and Chief Operations and Technology officer at Fifth Third Bank. He leads more than 6,000 domestic employees and offshore partners who provide innovative solutions in support of the Bank’s strategy. His organization provides tec
Slide 113: Consumer Bank
Consumer Bank Phil McHugh Executive Vice President Head of the Consumer Bank
Slide 114: 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 115: Substantial scale across the franchise
Substantial scale across the franchise Retail branch banking in 10 states Mortgage direct sales in 24 states Indirect auto sales in 44 states Correspondent mortgage in 47 states Business banking in 48 states Consumer bank footprint Retail financial center footprint Capabilities beyond traditional fo
Slide 116: Consumer bank positioned to deliver holistic customer experience
Consumer bank is positioned to deliver holistic customer experience 1 3Q17 Quarterly weighted average, Business Banking = <$10 MM 2 Full year forecast ’17, Business Banking = <$10 MM Retail Mortgage Indirect auto 2.1 MM Households $47.6 BN deposits1 1,155 financial centers $2.2 BN revenue2 $7.8 BN o
Slide 117: Significant market share of deposits
Significant market share of deposits LEGACY MARKETS Ohio 3rd $45.7 325 806 K Indiana 3rd $8.8 123 192 K Kentucky 3rd $5.7 91 109 K Michigan 5th $17.0 201 319 K GROWTH OPPORTUNITIES Illinois 11th $10.7 135 289 K Florida 12th $10.1 150 189 K North Carolina 12th $3.3 54 85 K Tennessee 13th $1.8 36 48 K
Slide 118: The Consumer Bank is well diversified
The Consumer Bank is well diversified +3% CAGR 51.4 53.5 55.7 57.9 3Q14 3Q15 3Q16 Loan and lease contribution Revenue by business Diversified fee income Consumer deposits 3Q17 average 3Q17 YTD fee income 3Q17 YTD net revenue Quarterly average balance ($ BN) 3Q17
Slide 119: Strategic priorities
Strategic priorities Continue to build relationships through consultative approach Leverage omnichannel strategy Relationship driven Focus on data analytics Grow consumer loan portfolio Accelerate acquisition retention of households Identify consumer behavioral changes to help grow revenue per house
Slide 120: Philosophy on brick and mortar vs. digital
Philosophy on brick and mortar vs. digital 1includes online, mobile and ATM transactions Customer preferences have changed and continue to evolve… … therefore we have a “bricks and clicks” approach Human contact for the big moments Education seminars Continuous optimization to ensure right density E
Slide 121: Transforming retail business to match evolving customer preferences
Transforming retail business to match evolving customer preferences FTE reduction Financial impact Description ~1,800 FTE (21%) ~500 FTE (8%) 2014 – ongoing 2015 – ongoing 2013 – 2017 $72 MM Annual run-rate cost savings Omnichannel infrastructure to accelerate revenue growth and improve customer ser
Slide 122: Proprietary data analytics to enhance branch network
Proprietary data analytics to further enhance the strength of our branch network Network health Optimal capacity De novo Relocation, consolidation, divestiture Geospatial information sciences built upon big data platform… …give insights for smarter service delivery 1 2 3 4 Patent pending proprietary
Slide 123: Analytics improving efficiency of marketing programs
Analytics helping improve efficiency of marketing programs +400% Enhanced marketing analytics to identify best opportunities… …generate households with substantially lower cost-to-acquire Leverage a machine learning algorithm 700+ variables evaluated Predicts openness to buy (50%)
Slide 124: Targeted segmentation driving household growth
Targeted segmentation driving household growth Emerging mass market Mass market Upper mass market Mass affluent Income producing asset balances1 Product Average Revenue per Household Primary driver < $10 K $10 K - $50 K $50 K - $100 K $100 K - $1 MM $170 $950 $1,700 $4,600 Entry product for new-to-b
Slide 125: Mass Affluent segment captured through Preferred Program
Mass Affluent segment opportunity captured through the Preferred Program 1Average Fifth Third customer data for 2017 on Essential checking holders (Mass Market) versus Preferred checking (Mass Affluent) Mass affluents represent a substantial pool of high-value relationships… … and our Preferred Prog
Slide 126: Preferred Program is a key driver of household and revenue growth
Preferred Program is a key driver of household and revenue growth +9.5% CAGR +8.6% CAGR +7.5% CAGR 2014 2015 2016 20171 2014 2015 2016 20171 2014 2015 2016 20171 $20.7 BN Deposits2 $3.2 BN Loans2 $14.7 BN Investments2 Preferred checking households Customer investment and deposit balances Recurring i
Slide 127: Consultative sales and service model
Consultative sales and service model puts the customer at the center by matching solutions to needs The Fifth Third Consultative Sales and Service Model Technology capabilities enable delivery of the model Customer at the center Build customer’s trust Skills include: connection, questioning, encoura
Slide 128: Indirect auto: excellent credit quality, short duration
Delivers excellent credit quality business with short term duration Good tool to manage balance sheet Reduces geographic concentration risk Market-differentiated fast-funding and Elite Dealer program ~70% of credit decisions automated and delivered almost instantly Deployed new indirect auto strateg
Slide 129: Mortgage customer journey informs strategic roadmap
Analysis of mortgage customer journey informs our strategic roadmap and process design Chris cares about: Self-service Expert advice Being in control Getting a great deal We also learned: Consumers consider realtors their primary advisor Primary bank is not top of mind for mortgages Shop (Find a Hom
Slide 130: Strategic roadmap delivers value to mortgage customers
Strategic roadmap delivers value to our mortgage customers Sales Products Servicing Sales force growth Process and technology improvements to drive fulfillment quality New Loan Origination System to enhance the customer journey Digital journey in development to span entire value chain Product differ
Slide 131: Consumer is a significant contributor to NorthStar
Capital Markets Financial Risk Mgmt. ‘2020’; Advisory Consumer is a significant contributor to the NorthStar strategy 1 Differentiating our brand and customer experience 2 Optimizing the balance sheet Driving fee income growth 3 4 Strategic expense management Consumer Payments Commercial Wealth 5 Po
Slide 132: Delivering on NorthStar programs
Delivering on NorthStar programs Consumer HHs Omnichannel capabilities Personal Lending GreenSky partnership Mortgage LOS replacement & channel expansion Program Objective Current Status Approach Accelerate acquisition and retention of consumer households while deepening current relationships, with
Slide 133: Strategic priorities
Strategic priorities Leverage omnichannel strategy Relationship driven Focus on data analytics Grow consumer loan portfolio Consultative Selling approach Preferred program expansion for Mass Affluent segment Leverage customer journey maps and personas in our process design “Bricks and clicks” philos
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Slide 135: Phil McHugh Biography
Phil McHugh Biography Phil McHugh is executive vice president and head of Fifth Third’s Consumer Bank, which focuses on making our retail, small business and mortgage franchises even more valuable to our customers and communities. Previously serving as head of Fifth Third’s Wealth and Asset Manageme
Slide 136: Commercial Bank, Wealth and Asset Management, One Bank Strategy
Commercial Bank Wealth and Asset Management One Bank Strategy
Slide 137: 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 138: Commercial Bank
Commercial Bank Richard Stein Executive Vice President Head of the Commercial Bank
Slide 139: Commercial Bank overview
Commercial Bank overview Revenue contribution Regional and national footprint Critical scale Corporate Banking London $33bn Core deposits #10 Commercial & Industrial Lending1 ~14,000 Clients Loan and lease contribution 3Q17 average loans from lines of business 3Q17 YTD revenue from lines of business
Slide 140: Well-diversified balance sheet and revenue streams
Well-diversified balance sheet and revenue streams Loan and lease balances by type Loan and lease balances by segment Revenue by product Revenue by segment 3Q17 YTD net revenue 3Q17 YTD net revenue 3Q17 average 3Q17 average All financial information represents Commercial Banking segment
Slide 141: Overview of customer base and product capabilities
Overview of customer base and product capabilities Lending Treasury Management Capital Markets and Advisory Middle Market $20MM - $500MM sales Corporate Banking $500MM+ sales Asset-based Lending Specialized Industry Verticals Leveraged Lending Traditional Lending & Leasing Integrated Payables Soluti
Slide 142: Overview of key Commercial Bank segments
Overview of key Commercial Bank segments Middle Market Commercial Real Estate Credit Products Customer and Transaction Profile Industries Served $21.6BN1 $16.4BN1 $8.4BN1 Energy Technology, Media, Telecom Retail Financial Institutions Entertainment, Lodging & Leisure Healthcare Manufacturi
Slide 143: Commercial Bank evolution
Commercial Bank evolution Pre - 2009 2009 - 2015 2015 + Primarily Middle Market in-footprint focus: C&I and CRE Decentralized strategy and credit underwriting Product centric sales approach Centralized and significantly enhanced credit processes Centralized CRE originations and credit underwriting B
Slide 144: Strategic priorities and value proposition
Strategic priorities and value proposition Continued expansion of product capabilities and industry expertise to create strategic partnerships and generate higher returns Leverage technology and analytical advancements Significant focus on core middle market lending to expand market share and enhanc
Slide 145: Commercial is a significant contributor to NorthStar
Capital Markets Financial Risk Mgmt. ‘2020’; Advisory Commercial is a significant contributor to the NorthStar strategy 1 Differentiating our brand and customer experience 2 Optimizing the balance sheet Driving fee income growth 3 4 Strategic expense management Consumer Payments Commercial Wealth 5
Slide 146: Portfolio optimization has strengthened the balance sheet
Portfolio optimization has strengthened the balance sheet and positioned for profitability Exited nearly $5 billion loans over the past two years Loans with low-mid single digit ROEs and no viable relationship growth Loans with higher loss expectations in stress environment Utilized liquid capital m
Slide 147: Expanding industry verticals
Expanding industry verticals to offer tailored products and industry insights Expertise from industry verticals provide: Better insights and solutions to serve the tailored needs of the client A better client experience Better risk management Distinctive financial results New verticals evaluated to
Slide 148: Investing in the middle market segment
Investing in the middle market segment to grow market share Significant focus on middle market strategy to expand market share and enhance profitability Build tools, invest in product capabilities, improve processes, and upgrade talent to deliver a distinctive value proposition to our customers Stra
Slide 149: End-to-end lending process redesigned
End-to-end lending process redesigned to enhance the client experience End-to-end review of lending process uncovered inconsistencies and opportunities to improve the client experience Redesigned the operating model to deliver a better client experience: Create additional capacity for prospecting St
Slide 150: Strategic Advisory & Investment Banking
Strategic Advisory & Investment Banking Continued expansion of capital market capabilities to deepen client relationships Strategic Advisory & Investment Banking Equity Capital Markets (ECM) M&A Advisory Debt Capital Markets (DCM) Loan Syndications Corporate Bond Underwriting Bridge Commitments Inst
Slide 151: Enhanced electronic trading capabilities
Enhanced electronic trading capabilities Enhancing Financial Risk Management capabilities State-of-the-art client analytics Digital client and relationship manager experience Optimizing clients’ credit and liquidity Scalable and flexible operations and technology Current 2020 Target Enhanced capabil
Slide 152: Leveraging analytics for improved client insights
Leveraging analytics for improved client insights Deepening relationships Middle market opportunity assessment Client and prospect prioritization Utilizing data to enhance productivity and profitability analytics Leveraging insights through a single analytical engine Advanced Client /Product Profita
Slide 153: Select examples of recent success
Select examples of recent success Transaction Summary Key Takeaways Radio Systems Corporation Sycamore Partners Acquisition of Staples, Inc. Radio Systems Corporation (“RSC”) - a leading worldwide innovator and marketer of pet products sold under the Invisible Fence, PetSafe, and SportDog brands – r
Slide 154: Positioned for future growth and profitability
Strengthened the core Invested in capabilities Macroeconomic and capital market conditions Balance sheet optimization Positioned for future growth and profitability +1% ~+1% ~+2% GDP+% +7% +3% Expect growth from investments in: Processes Talent Products Analytics macroeconomic conditions and competi
Slide 155: The franchise is well-positioned for the future
The franchise is well-positioned for the future Improved credit quality Diversified sources of growth and revenues Enhanced portfolio mix Industry verticals and specialty lending Enhanced focus on middle market and geographic expansion Client experience initiatives Talent New products and capabiliti
Slide 156: Wealth & Asset Management (WAM)
Wealth & Asset Management (WAM) Mike Michael Executive Vice President Head of Wealth & Asset Management
Slide 157: Wealth & Asset Management overview
Wealth & Asset Management overview Revenue contribution Fee revenue growth Critical scale $36bn Assets under management $348bn Assets under care Global Finance Private Banking 2017 Best Private Bank in the Midwest 3Q17 YTD revenue from lines of business As of 3Q17 As of 3Q17 Revenue by segment Consu
Slide 158: Wealth & Asset Management strategic priorities
Wealth & Asset Management strategic priorities Aggressively pursue sales force expansion and regional acquisitions of asset managers Enhance scope of products and services to address the needs of current and future clients Leverage technology investments to match client preferences Partner with comm
Slide 159: NorthStar strategies address evolving landscape
Hired wealth management teams across footprint Completed acquisition of Retirement Corporation of America NorthStar strategies address evolving landscape Strategic focus areas Actions taken 1 2 3 M&A / Strategic Talent Hiring Add talent and scale to our platform through strategically acquiring wealt
Slide 160: One Bank Strategy
One Bank Strategy Lars Anderson Executive Vice President Chief Operating Officer
Slide 161: Regional and national resources provide collaborative solutions
Regional and national resources provide collaborative solutions Middle Market Banking Wealth & Asset Management Business Banking Consumer Banking Public Relations Community Development 13 Regional Presidents Regional footprint Corporate Banking Regional office Local Advisory Board reprint
Slide 162: Client view of One Bank approach
Client view of One Bank approach Key Client Constituents One Bank Team Client Solutions Capital and credit solutions Working capital and liquidity solutions Wealth & asset management solutions Risk management solutions Strategic solutions Employee benefit solutions One Bank Team Collaboration Relati
Slide 163: Internal view of One Bank approach
Internal view of One Bank approach Centralized strategy and regional distribution channel Centralized risk management & credit underwriting Leverage vertical and specialty teams to address local client needs Enhancing capabilities added over the past 2-3 years Recognized, measured, and compensated o
Slide 164: Growing insurance to help clients with financial and risk management needs
Completed acquisition of R.G. McGraw Insurance which specializes in providing property and casualty insurance for both personal lines and commercial lines Completed acquisition of Epic Insurance and Integrity HR, widening our geographic coverage while enabling us to also enter into the employee bene
Slide 165: One Bank strategy
One Bank strategy Accelerate middle market lending growth Leverage strengths of regional resources with national lending & credit teams Deliver market leading insights and solutions One point of contact with robust suite of products and services Fulfill vision to be the One Bank clients most value a
Slide 166: Leveraging Commercial and WAM to capture additional business
Leveraging Commercial and WAM to capture additional business opportunities Collaboration between WAM, credit products, and investment banking Focus on serving full scope of clients’ needs through a holistic approach Strive for lifetime client partnerships One Bank approach utilizes single primary co
Slide 167: One Bank success story: Roadworks Manufacturing
One Bank success story: Roadworks Manufacturing
Slide 168: Well positioned franchise for the future
Well positioned franchise for the future Balance sheet optimization and portfolio mix Improved credit quality Diversified sources of growth and revenues 1 2 3 Working together to provide solutions, insights, and building enduring relationships Executing to be the One Bank our clients most value and
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Slide 170: Lars Anderson Biography
Lars Anderson Biography Lars C. Anderson joined Fifth Third Bancorp as executive vice president and chief operating officer in August 2015. As chief operating officer, Lars oversees the Bank’s regional banking network, as well as the Bank’s Commercial, Capital Markets, Insurance, and Wealth & Asset
Slide 171: Richard Stein Biography
Richard Stein Biography Richard Stein serves as executive vice president and Head of Commercial Bank for Fifth Third Bancorp. He is responsible for strategy and execution across the commercial line of business client coverage, capital markets and credit product teams. He assumed this expanded role i
Slide 172: Mike Michael Biography
Mike Michael Biography Ralph (Mike) Michael is executive vice president, as head of Wealth & Asset Management, with line-of-business oversight of wealth management, institutional services solutions including wealth planning, fiduciary services, private banking, investments, insurance, retirement pla
Slide 173: Finance Update
Finance Update Tayfun Tuzun Executive Vice President Chief Financial Officer
Slide 174: 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 175: Strategic financial priorities
Growth aligned with NorthStar priorities Efficient capital management Positive operating leverage in all environments Through the cycle top quartile peer group performance Strategic financial priorities Return on tangible common equity Return on assets Efficiency ratio Flexible cost structure to all
Slide 176: Balance sheet progress in line with corporate priorities
Balance sheet progress in line with corporate priorities 2017 2009 Long-term targets 2009-2017 drivers Long-term drivers 2009 – 2015: Higher loan demand in mid- and large-corporate sectors combined with investments in verticals and capital markets resulting in C&I expansion 2015 – 2017: Focus on ret
Slide 177: Long-term perspective on managing liability structure
Long-term perspective on managing liability structure 2017 2009 % interest bearing1 79% 66% Deposit growth is a critical component of return on capital as well as sound risk management Steady, long-term oriented liability management is critical in order to buffer the impact of short term market fluc
Slide 178: Significant change in profile and focus on long-term value preservation
Significant change in profile and focus on long-term value preservation 2009 2017 NPA ratio1 Short-term funding %5 NII at risk6 NCO ratio2 Criticized assets ratio3 Texas Ratio4 4.22% 0.60% 3.20% 0.29% 22.2% 5.5% 40.1% 4.7% 29% 6% (0.50%) 1.52% Significant improvement in criticized assets due to bala
Slide 179: Strong organic capital generation allowing for significant capital distribution
Strong organic capital generation allowing for significant capital distribution Highest focus is on avoidance of shareholder value destruction and stable growth in return on capital Long-term stability is achieved with strong capital levels aligned with the risk profile of the company Maintaining id
Slide 180: Thoughtful reduction in Vantiv stake
Thoughtful reduction in Vantiv stake 49% >$5BN Vantiv noninterest income1 At current tax rates, incremental TRA revenue from potential future sales expected to offset lowered equity method earnings Vantiv ownership and monetized gains 1Vantiv equity method earnings are net of intangible amortization
Slide 181: Strong NII and NIM performance
Strong NII and NIM performance Continued NIM expansion with a long-term oriented, prudently managed interest rate risk profile Planning to remain moderately asset sensitive in a competitive higher deposit beta environment Expect betas to be 50%, 60%, and 60% respectively, for next 3 rate hikes Expec
Slide 182: Focused on growing and diversifying fee revenue
Focused on growing and diversifying fee revenue 2017 2009 Long-term target 2009 - 2017 Drivers Long-term drivers Fee revenues are more diversified post-mortgage boom Improved capital markets capabilities have resulted in sector leading growth rates Innovative solutions for in-store currency processi
Slide 183: Continuous improvement in expense infrastructure
Continuous improvement in expense infrastructure 2017 2009 Long-term target 2009-2017 drivers Long-term drivers Positive operating leverage is a top priority Planning to maintain a flexible cost structure to manage profitability in all economic environments Expansion of agile management approach to
Slide 184: Current outlook
Current outlook 1H18 (6/30/18 vs. 12/31/17) Loan growth Commercial Consumer Expenses Tax Rate1 1.75 – 2.25% 2.50 – 3.00% $2.0 – 2.1 BN 26 – 27% Noninterest income $1.15 – 1.2 BN NII (FTE) $1.95 – 2.0 BN NIM (FTE) 3.10 – 3.12% Efficiency Ratio 65.0 – 66.0% 2H18 (12/31/18 vs. 6/30/18) 2.00 – 2.50% 2.5
Slide 185: Positioned to benefit from corporate tax reform
Unrealized Vantiv ownership gain (after-tax)2 Positioned to benefit from corporate tax reform 1Estimated FY 2018 effective tax rate, excluding potential impact of step-up gain resulting from Vantiv/WorldPay deal; 2Based on a $75.13 VNTV closing price as of 12/1/2017; 3Assumes federal corporate tax r
Slide 186: NorthStar return target progression
NorthStar return target progression September 2016 commitment April 2017 update December 2017 update ROTCE: 12 – 14% ROA: 1.1 – 1.3% Efficiency ratio: <60% Lower-end of range with no rate increases and higher-end of ranges with 3 or so rate hikes Stable environment persists (lending, regulatory, mac
Slide 187: North Star initiative update
North Star initiative update Wealth & Asset Management Balance Sheet Optimization Customer Experience & Brand Awareness Continuous Expense Improvement Household growth Mortgage Utilizing newly developed marketing analytics and piloting alternative product and fee structures Focus Initiative Pre-tax
Slide 188: Why invest in Fifth Third?
Why invest in Fifth Third? Comprehensive long-term strategy to grow shareholder value without compromising on risk management practices, customer service quality, or our focus on regulatory excellence Prioritizing initiatives and investments to drive top quartile performance through the cycle Accele
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Slide 190: The investment portfolio has been an attractive, well executed alternative
The investment portfolio has been an attractive, well executed alternative given the environment Fifth Third portfolio mix Solid liquidity source: ~$11 billion in Level 1 securities ~$9 billion eligible Level 2s; ~$2 billion ineligible due to 40% cap Managing credit risk: Non-agency CMBS portfolio c
Slide 191: Tayfun Tuzun Biography
Tayfun Tuzun Biography Tayfun Tuzun is executive vice president and chief financial officer, responsible for Finance, Treasury, Business Planning and Analysis, Corporate Tax, Investor Relations and Accounting for Fifth Third Bancorp. He previously served as treasurer, overseeing funding and liquidit
Slide 192: Peer group
Peer group BB&T CorporationBBT Citizens Financial GroupCFG Comerica IncorporatedCMA Huntington Bancshares IncorporatedHBAN KeyCorpKEY M&T Bank CorporationMTB PNC Financial Services Group, Inc.PNC Regions Financial CorporationRF SunTrust Banks, Inc.STI U.S. BancorpUSB Zions BancorporationZION
Slide 193: Regulation G non-GAAP reconciliation
Regulation G non-GAAP reconciliation