Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Goldman Sachs U.S. Financial Services Conference 2018
15 slides from Fifth Third Bancorp's conference presentation, Dec 3, 2018
Slide 1: Goldman Sachs U.S. Financial Services Conference
Goldman Sachs U.S. Financial Services Conference Greg D. Carmichael Chairman, President & Chief Executive Officer December 4, 2018 Exhibit 99.1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, Fifth Third Bancorp’s and MB Financial, Inc.’s expectations or predictions of future financial or business perfo
Slide 3: Strategic priorities for the company
Strategic priorities for the company 1 3 Implement remaining NorthStar initiatives and achieve standalone financial targets Pursue profitable organic growth opportunities 2 Successfully close & integrate MB Financial and realize expected financial benefits Focused on generating positive operating le
Slide 4: Sustainable business model to outperform peers through-the-cycle
Sustainable business model to outperform peers through-the-cycle Credit risk management Capital, liquidity, and interest rate risk management NPA ratio of 0.48% is lowest since 2004; third lowest among peers Criticized assets of 3.45% have declined more than all peers since 2015 CRE as a percentage
Slide 5: Expect to achieve standalone NorthStar targets
Expect to achieve standalone NorthStar targets Raised original ROTCE target over 300 bps to reflect rate hikes and tax law changes Standalone franchise momentum: Double digit capital markets fee growth Significant increase in consumer households driving strong deposit growth WAM on track for record
Slide 6: MB Financial acquisition remains on-track
MB Financial acquisition remains on-track Expect to realize previously announced expense and revenue synergies Expect to close and convert majority of systems applications in 1Q19 Highly successful talent and client retention to date; focused on maintaining positive momentum post-closing Resubmitted
Slide 7: Positioned to capitalize on organic growth opportunities
Positioned to capitalize on organic growth opportunities Optimizing network to create smart scale in targeted markets while maintaining top market share in existing markets Increasing sales force throughout company to drive improved returns while maintaining expense discipline Continued assessment o
Slide 8: Expect strong balance sheet growth while maintaining disciplined approach
Expect strong balance sheet growth while maintaining disciplined approach Total loans & leases ~3.5% Excluding one-time MB impact Commercial loans & leases Consumer loans Total core deposits ~5% 1 – 2% ~3.5% Standalone loan growth driven by: Total commercial loan growth consistent with GDP growth Mo
Slide 9: Strategic priorities for the company
Strategic priorities for the company 1 2 3 Implement remaining NorthStar initiatives and achieve standalone financial targets Successfully integrate MB Financial and realize expected financial benefits Pursue profitable organic growth opportunities Focused on top quartile through-the-cycle performan
Slide 10: Appendix
Appendix
Slide 11: Thoughtfully reduced Worldpay stake over time
Thoughtfully reduced Worldpay stake over time 49% ~$6BN Worldpay TRA revenue forecast1 Vantiv/Worldpay ownership and monetized gains 1Assumes Worldpay has sufficient U.S. taxable income to utilized the TRA-related deductions, and assumes a 21% federal tax rate; 2Assumes remaining units are exchanged
Slide 12: Strong liquidity profile – 3Q18
Strong liquidity profile – 3Q18 $ millions – excl. Retail Brokered & Institutional CDs Unsecured debt maturities Heavily core funded Holding company: Modified LCR of 119% Holding Company cash as of September 30, 2018: $3.1B Cash currently sufficient to satisfy all fixed obligations in a stressed env
Slide 13: Balance sheet positioning – 3Q18
Balance sheet positioning – 3Q18 Investment portfolio $13.1B fixed | $44.2B variable 1,2,3 Commercial loans1,2,3 Consumer loans1 Long-term debt4 $26.1B fixed | $10.0B variable 1 $9.8B fixed | $4.6B variable 4 56% allocation to bullet/ locked-out cash flow securities Yield: 3.22% Effective duration o
Slide 14: Interest rate risk management – 3Q18
Interest rate risk management – 3Q18 Estimated NII sensitivity profile and ALCO policy limits Estimated NII sensitivity with deposit beta changes Estimated NII sensitivity with demand deposit balance changes Interest rate sensitivity tables are based on conservative deposit assumptions: 70% beta on
Slide 15: Regulation G reconciliation
Regulation G reconciliation See pages 25-27 of the 3Q18 earnings release for a discussion on the use of non-GAAP financial measures. 1Assumes a 21% tax rate 92 91 90 Three Months Ended September June March 1H18 2018 2018 2018 Net interest income (U.S. GAAP) $1,043 $1,020 $996 $2,016 Add: FTE Adjustm
Fifth Third Bancorp — Goldman Sachs U.S. Financial Services Conference 2018 on 6ix