Slide 1: 3Q08 Trends
Exhibit 99.3 3Q08 Trends October 21, 2008 © Fifth Third Bank | All Rights Reserved
Slide 2: Agenda
Agenda Overview 3Q08 results Operating trends Credit trends Capital position Liquidity trends Debt ratings Summary and priorities 2 © Fifth Third Bank | All Rights Reserved
Slide 3: Fifth Third overview
Fifth Third overview $116 billion assets^ 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 states
Slide 4: 3Q08 in review
3Q08 in review Difficult quarter due to economic environment — Significant increase in net charge-offs and provision expense – Net charge-offs of $463 million, provision expense of $941 million — Minimal risk exposure to “headline issues”: subprime lending, credit default swaps, investments in faile
Slide 5: Increasing net interest income
Increasing net interest income 3.50% $900 $850 3.45% $800 3.40% $750 3.35% $700 $650 3.30% $600 3.25% $550 3.20% $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 le
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
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
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 $30 • Institutional Sales +33% +36% • Asset securitization/conduit fees • Loan/lease syn
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
Slide 10: …offset by credit costs
…offset by credit costs $800 $600 $400 $200 $0 -$200 Net charge- -$400 offs -$600 Additional -$800 provision -$1,000 3Q07 4Q07 1Q08 2Q08 3Q08 See note on p. 9 for adjustments. 10 © Fifth Third Bank | All Rights Reserved
Slide 11: Credit by portfolio
Credit by portfolio Commercial Commercial Commercial Total Residential Other Total Total loans & ($ in millions) C&I mortgage construction lease commercial mortgage Home equity Auto Credit card consumer consumer leases Loan balances $29,424 $13,355 $6,002 $3,642 $52,423 $9,351 $12,599 $8,306 $1,688
Slide 12: 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
Slide 13: 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
Slide 14: Credit containment
Credit containment Eliminated all brokered home equity production Suspended all new developer lending Significantly tightened underwriting limits and exception authorities Major expansion of commercial and consumer workout teams Aggressive write downs in stressed geographies Significant addition to
Slide 15: Capital position
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 to provide greater cushion Regulato
Slide 16: Active management of liquidity profile
Active management of liquidity profile Stable Funding Highlights Long Term Fifth Third remains heavily core funded Debt Demand 12% 11% Flexibility and liquidity further enhanced by Equity 9% Interest — Dividend reduction Checking 11% Other liabilities — Large capital raise further bolstered 3% Holdi
Slide 17: Strong holding company liquidity profile
Strong holding company liquidity profile Holding Company Unsecured Debt Maturities Highlights 6000 5,766 Current holding company cash position 5000 through 1Q10 4000 3000 Sufficient to: 2000 — Satisfy all fixed obligations over the Fifth Third Capital Trust next twelve months (debt maturities, 1000
Slide 18: Strong bank liquidity profile
Strong bank liquidity profile Bank Unsecured Debt Maturities Highlights 1500 1,233 1,279 Current unused borrowing capacity under secured facilities sufficient to fund all 1000 unsecured maturities for five years 825 — Assumes no access to capital markets 500 Active management to increase available F
Slide 19: Fifth Third debt ratings
Fifth Third debt ratings Fifth Third Bancorp Fifth Third Bank (OH, MI) Short- Rating Current Senior term LT Deposit Senior Short-term Date# Outlook Moody’s A1 P-1 Aa3 Aa3 P-1 9/18/08 Negative S&P A+ A-1 AA- AA- A-1+ 9/3/08 CreditWatch negative Fitch A+ F1 AA- A+ F-1+ 6/18/08 Stable DBRS AA (low) R-1
Slide 20: Fifth Third debt ratings
Fifth Third debt ratings Lead Bank Long-Term Issuer Rating Moody's S&P Fitch DBRS Wells Fargo (Wells Fargo Bank NA) Aaa AAA AA AAH Bank of America (Bank America America NA) Aaa AA AA- AA JPMorgan Chase (JPMorgan Chase Bank NA) Aaa AA AA- AAL US Bank (US Bank NA North Dakota) Aa1 AA+ AA- NR BB&T (BB&
Slide 21: 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 21 © Fifth Third Bank | All Rights Reserved
Slide 22: Summary and priorities
Summary and priorities Fifth Third has taken steps to ensure it is well-positioned to weather potential further deterioration in the credit environment Delivery of strong operating results remains a hallmark of Fifth Third despite sluggish economy Capital plan designed to maintain Tier 1 capital in
Slide 23: Fifth Third: building a better tomorrow
Fifth Third: building a better tomorrow Consistently outperform the U.S. banking industry Deliver growth in excess of industry Enhance the customer experience Increase employee engagement Institutionalize enterprise operational excellence 23 © Fifth Third Bank | All Rights Reserved
Slide 24: Appendix
Appendix 24 © Fifth Third Bank | All Rights Reserved
Slide 25: Nonperforming assets
Other Nonperforming assets $54M 2% C&I* • Total NPAs of $2.8B, or 330 bps $580M 20% • Homebuilder/developer NPAs of $702 M; represent 25% of total NPAs CRE $1.4B • Commercial NPAs of $2.0B; recent growth 50% driven by commercial construction and real estate, particularly in Michigan and Florida Resi
Slide 26: Commercial construction
Commercial construction Credit trends Loans by geography FL MI Commercial construction 20% 19% ($ in millions) 3Q07 4Q07 1Q08 2Q08 3Q08 Balance $5,463 $5,561 $5,592 $6,007 $6,002 90+ days delinquent $54 $67 $49 $53 $84 Other 90+ days ratio 0.99% 1.21% 0.87% 0.88% 1.40% 2% NPAs $106 $257 $418 $552 $6
Slide 27: Homebuilder/developer
Homebuilder/developer Credit trends Loans by geography MI Homebuilders/developers FL 21% ($ in millions) 3Q07 4Q07* 1Q08 2Q08** 3Q08 29% Balance $2,594 $2,868 $2,705 $3,295 $3,065 90+ days delinquent $50 $57 $60 $123 $105 90+ days ratio 1.94% 1.99% 2.21% 3.73% 3.41% NPAs $78 $176 $309 $547 $702 as %
Slide 28: Residential mortgage
Residential mortgage Credit trends Loans by geography MI Residential mortgage 14% FL ($ in millions) 3Q07 4Q07* 1Q08 2Q08 3Q08 30% Balance $9,057 $10,540 $9,873 $9,866 $9,351 90+ days delinquent $116 $186 $192 $229 $185 90+ days ratio 1.28% 1.76% 1.95% 2.32% 1.98% OH NPAs $150 $216 $333 $448 $593 24
Slide 29: Home equity
Home equity Credit trends Brokered loans by geography Direct loans by geography FL FL Home equity - brokered 3% MI Other 9% ($ in millions) 3Q07 4Q07 1Q08 2Q08 3Q08 MI 20% 1% Other NC/GA 22% Balance $2,746 $2,713 $2,651 $2,433 $2,368 21% TN 5% 90+ days delinquent $30 $34 $33 $34 $31 1% 90+ days rati
Slide 30: Michigan market
Michigan market Loans % of NPAs % of NCOs % of ($ in millions) (bn) FITB (mm) FITB (mm) FITB Economic weakness impacts Commercial loans 4.94 17% 113 20% 22 25% commercial real estate market Commercial mortgage 3.81 29% 258 34% 26 28% Commercial construction 1.11 19% 220 33% 49 56% Issues: homebuilde
Slide 31: Florida market
Florida market Loans % of NPAs % of NCOs % of Issues: homebuilders, developers tied ($ in millions) (bn) FITB (mm) FITB (mm) FITB to weakening real estate market Commercial loans 2.08 7% 82 15% 19 22% Commercial mortgage 1.94 15% 272 36% 56 59% Commercial construction 1.21 20% 205 31% 27 30% Issues:
Slide 32: 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