Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Q2 2009 Earnings Presentation
14 slides from Fifth Third Bancorp's earnings presentation, Jul 23, 2009
Slide 1: 2Q09 Credit Trends
Exhibit 99.3 2Q09 Credit Trends July 23, 2009 Please refer to earnings release dated July 23, 2009 for full results including those reported on a GAAP basis Fifth Third Bank | All Rights Reserved
Slide 2: Credit by portfolio
Credit by portfolio* Commercial Commercial Commercial Total Residential Other Total loans & ($ in millions) C&I mortgage construction lease commercial mortgage Home equity Auto Credit card consumer Total consumer leases Loan balances $28,409 $12,407 $4,491 $3,532 $48,839 $8,489 $12,511 $8,741 $1,914
Slide 3: Portfolio performance drivers
Portfolio performance drivers No Participation In Performance Largely Driven By • Subprime Geography • Option ARMs • Florida and Michigan most stressed • Remaining Midwest and Southeast performance reflect economic trends Discontinued or Suspended Lending 2Q09 NCO Ratios Coml Cons Total Discontinued
Slide 4: Non-performing assets and net charge-offs: Product view
Non-performing assets and net charge-offs: Product view* Total NPAs Total NCOs 3,000 1,000 2,500 800 2,000 600 1,500 400 1,000 200 500 0 0 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09 C&I/Lease Auto/Other CRE Res RE C&I/Lease Auto/Other CRE Res RE * NPAs exclude loans held-for-sale. Net charge-
Slide 5: Non-performing assets and net charge-offs: Geographic view
Non-performing assets and net charge-offs: Geographic view* Total NPAs Total NCOs 3,000 1,000 2,500 800 2,000 600 1,500 400 1,000 200 500 - - 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09 Other SE National Other MW Michigan Florida Other SE National Other MW Michigan Florida * NPAs exclude loans
Slide 6: Commercial loans held-for-sale summary
Commercial loans held-for-sale summary 3/31/2009 Customer FV Closed HFS HFS balance payments adjustments Gain/loss Sold $22 ($26) $0 $4 Settled or Closed 6 (16) 3 7 Transferred to OREO 13 (11) (2) 0 Total $40 ($52) $1 $11 3/31/2009 Customer FV 6/30/2009 Remaining HFS HFS balance payments adjustments
Slide 7: Nonperforming assets
Nonperforming assets* Other $80M 3% • Total NPAs of $2.8B C&I* $685M 24% • Homebuilder/developer NPAs of $613M; represent 22% of total NPAs CRE • Commercial NPAs of $2.2B; growth driven by $1.5B 54% CRE, particularly in MI and FL • Consumer NPAs of $628M; flat compared to Residential previous quarte
Slide 8: Commercial construction
Commercial construction* Credit trends Loans by geography MI FL 15% Commercial construction 19% ($ in millions) 2Q08 3Q08 4Q08 1Q09 2Q09 Balance $6,007 $6,002 $5,114 $4,745 $4,491 90+ days delinquent $53 $84 $73 $49 $60 Other as % of loans 0.88% 1.40% 1.44% 1.02% 1.34% 5% NPAs $552 $659 $400 $597 $7
Slide 9: Homebuilders/developers
Homebuilders/developers* Credit trends Loans by geography FL MI 19% 18% Homebuilders/developers ($ in millions) 2Q08* 3Q08 4Q08 1Q09 2Q09 Balance $3,295 $3,065 $2,481 $2,322 $2,102 90+ days delinquent $123 $105 $74 $37 $53 Other as % of loans 3.73% 3.41% 2.98% 1.59% 2.51% 4% NPAs $547 $702 $366 $554
Slide 10: Residential mortgage
Residential mortgage Credit trends Loans by geography MI Residential mortgage FL 14% ($ in millions) 2Q08 3Q08 4Q08 1Q09 2Q09 29% Balance $9,866 $9,351 $9,385 $8,875 $8,489 90+ days delinquent $229 $185 $198 $231 $242 as % of loans 2.32% 1.98% 2.11% 2.60% 2.85% NPAs $285 $339 $397 $475 $475 OH as %
Slide 11: Home equity
Home equity Credit trends Brokered loans by geography Direct loans by geography Home equity - direct FL FL 3% 9% ($ in millions) 2Q08* 3Q08 4Q08 1Q09 2Q09 MI Other MI Balance $9,988 $10,232 $10,439 $10,486 $10,386 Other 21% 1% 21% NC 90+ days delinquent $42 $41 $58 $61 $63 20% TN 5% as % of loans 0.
Slide 12: Florida market
Florida market* Deterioration in real estate values having effect on credit trends as evidenced by increasing NPA/NCOs in real estate related products Loans % of NPAs % of NCOs % of Homebuilders, developers tied to ($ in millions) (bn) FITB (mm) FITB (mm) FITB weakening real estate market Commercial
Slide 13: Michigan market
Michigan market* Deterioration in home price values coupled with weak economy impacting credit trends due to frequency of defaults and severity Loans % of NPAs % of NCOs % of ($ in millions) (bn) FITB (mm) FITB (mm) FITB Economic weakness impacts Commercial loans 4.7 16% 97 15% 30 17% commercial rea
Slide 14: 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