Fifth Third Bancorp · NASDAQ:FITB

Fifth Third Bancorp — BancAnalysts Association of Boston Conference (November 2008)

20 slides from Fifth Third Bancorp's conference presentation, Nov 7, 2008

  1. Slide 1: BancAnalysts Association of Boston Conference

    Exhibit 99.1 BancAnalysts Association of Boston Conference Kevin Kabat Chairman, President & CEO November 7, 2008 Fifth Third Bank | All Rights Reserved

  2. Slide 2: Agenda

    Agenda Overview 3Q08 results Operating trends Credit trends Capital position Summary and priorities Appendix 2 Fifth Third Bank | All Rights Reserved

  3. Slide 3: Fifth Third overview

    Fifth Third overview $116 billion assets #13^ Traverse City Grand Rapids $8 billion market cap #12* Chicago Detroit Toledo Cleveland Pittsburgh 1,298 banking centers Indianapolis Columbus Cincinnati Huntington Over 2,300 ATMs St. Louis Florence Evansville Louisville Lexington 18 affiliates in 12 sta

  4. Slide 4: 3Q08 in review

    3Q08 in review Strong core operating results offset by higher credit costs, market valuation adjustments Reported $0.14 loss per diluted share, compared to $0.61 income per diluted share in 3Q07 — Net charge-offs of $463 million, provision expense of $941 million — $51 million pre-tax loss on Fannie

  5. Slide 5: Increasing net interest income

    Increasing net interest income 4.00% $900 $850 3.80% $800 $750 3.60% $700 3.40% $650 $600 3.20% $550 3.00% $500 3Q07 4Q07 1Q08 2Q08* 3Q08* Net interest income NIM * 3Q08 reported results: 41% year-over-year growth and 4.24% NIM. Results above exclude $130 million charge related to leveraged lease li

  6. Slide 6: Fee income growth and diversification

    Fee income growth and diversification $900 YOY $800 growth $700 Payment +11% $600 processing $500 Deposit +13% $400 service charges $300 Investment -5% advisory $200 Corporate +15% banking $100 Mortgage +74% Secs/other NM $0 3Q07 4Q07 1Q08 2Q08 3Q08 Continued strong growth in processing, deposit fee

  7. Slide 7: FTPS: key growth engine

    FTPS: key growth engine 3Q08 revenue Financial Merchant Institutions Services 35% 2-Yr YOY $250 CAGR growth 38% $200 Bankcard +19% +9% 27% $150 Merchant +17% +19% $100 • 4 th Largest U.S. Acquirer • Over 37,500 merchants • $26.7B in credit/debit processing volume $50 +7% +6% • Over 5.6B acquired tra

  8. Slide 8: Corporate banking

    Corporate banking International 2-Yr YOY • Letters of credit $120 CAGR growth • Foreign exchange $90 +10% +14% Derivatives • Customer interest rate derivatives -10% -29% $60 +8% +11% Capital markets lending fees • Institutional Sales $30 +33% +36% • Asset securitization/conduit fees • Loan/lease syn

  9. Slide 9: Strong operating performance…

    Strong operating performance… $800 $700 $600 $500 $400 $300 3Q07 4Q07 1Q08 2Q08 3Q08 3Q08 reported results of 40% growth in pre-tax, pre-provision earnings. 3Q08 results above exclude $27 million BOLI charge, $215 million in loan discount accretion from the acquisition of First Charter, $76 million

  10. Slide 10: …offset by credit costs

    …offset by credit costs $800 $600 $400 $200 $0 -$200 Net charge- -$400 offs -$600 Additional -$800 provision -$1,000 3Q07 4Q07 1Q08 2Q08 3Q08 See note on p. 9 for adjustments. 10 Fifth Third Bank | All Rights Reserved

  11. Slide 11: Real estate driving credit deterioration

    Real estate driving credit deterioration Total NPAs Total NCOs 3,000,000 500,000 2,500,000 Res 400,000 RE Res 2,000,000 RE 300,000 1,500,000 CRE CRE 200,000 1,000,000 500,000 100,000 0 0 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 C&I/Lease Auto Credit Card C&I/Le

  12. Slide 12: Michigan and Florida: most stressed markets

    Michigan and Florida: most stressed markets Total NPAs Total NCOs 3,000,000 500,000 2,500,000 400,000 Highest 2,000,000 stress Highest markets stress 300,000 markets 1,500,000 200,000 1,000,000 500,000 100,000 - - Q3 2007 Q4 2007 Q1 2008 Q2 2008 3Q 2008 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Other

  13. Slide 13: Portfolio performance drivers

    Portfolio performance drivers No Previous Lending Performance Largely Driven By Subprime Geography: Option ARMs Florida, Michigan most stressed (3Q08 C/O ratio) Total loan portfolio 4.74% Commercial portfolio 5.14% Consumer portfolio 4.10% Discontinued or Suspended Lending Remaining Midwest, Southea

  14. Slide 14: Loss mitigation activities

    Loss mitigation activities Reset policies and guidelines — Eliminated all brokered home equity production — Significantly tightened underwriting limits and exception authorities — Further restrictions on consumer guidelines for weaker geographies — Suspended all new residential development lending a

  15. Slide 15: Strong capital position

    Strong capital position • Capital plan and targets designed to help ensure strong capital levels, positioning Fifth Third to absorb significant potential losses and provisions in a potentially more difficult environment through 2009 • Revised capital targets in June 2008 in order to provide greater

  16. Slide 16: Strong capital position

    Strong capital position 11.1 10.7 9.6 9.5 TE 9.3 9.3 Impact 8.5 8.4 8.3 8.0 7.8 7.1 Tangible Equity/ 4.9 Tangible Assets 3Q08 7.6 8.1 6.9 7.0 6.6 6.2 5.8 6.4 5.7 3.7 TE 5.2 5.4 CMA COF MI KEY ZION FITB HBAN STI RF USB BBT WFC/ MTB PNC/ 14.3 WB* NCC* Tier 1 12.3 Impact 11.9 11.6 11.5 10.9 10.9 10.8 1

  17. Slide 17: Fifth Third differentiators

    Fifth Third differentiators Integrated affiliate delivery model Strong sales culture Operational efficiency Streamlined decision making Integrated payments platform (FTPS) Acquisition integration Customer satisfaction 17 Fifth Third Bank | All Rights Reserved

  18. Slide 18: Freedom Bank

    Freedom Bank • 1.16% deposit premium – assumed all deposits • Exclusive right to purchase branches at appraised value within 90 days of close • Increases market share from 8th to 4th in Bradenton-Sarasota-Venice MSA Bradenton-Sarasota-Venice, FL 2008 2008 2008 Total Total Number Deposits in Market 2

  19. Slide 19: Summary and priorities

    Summary and priorities Delivery of strong operating results remains a hallmark of Fifth Third despite sluggish economy — Despite a difficult operating environment, core businesses are creating new and profitable opportunities to enhance franchise value Fifth Third has taken steps to ensure it is wel

  20. Slide 20: Cautionary statement

    Cautionary statement This report may contain forward-looking statements about Fifth Third Bancorp 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 of 1934, as amended, and Rule 3b-6 promulgated t

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