Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — 2005 Merrill Lynch Financial Services Conference
35 slides from Fifth Third Bancorp's conference presentation, Nov 17, 2005
Slide 1: Investing in a Franchise
Exhibit 99.1 2005 E. “Investing Neal Terry November 1 Merrill E.Arnold Zink in 17,Lynch aPresident 2005 Franchise” Executive Financial Fifth ViceThird Services President Bank Conference (Chicago)
Slide 2: Agenda
Affiliates I. II. III. IV. 2 Affiliate Markets Deposit Loan Performance &Operating Performance Markets Model
Slide 3: Fifth Third Affiliates
Affiliate 19 FITB Affiliates Chicago Western Detroit Columbus Affiliates CincinnatiBank MI in OH ILOH 8.7Operating 77% Michigan 4.4 States State $11.9 13% 3.8 MI Deposits 18% 9.6 6.9 6% 84Model 133 7.3 5.1 $19.2 11% P. 65 T. %Eversole R.Zink 9.4 Fehring of134 106 15/3 R.M. 25 Assets Sullivan Bkg Van
Slide 4: Fifth Third Markets: Largest MSA Markets and Deposit Share
Metropolitan 10 Fifth MSAof Third thePopulation Chicago, Detroit, Tampa, Elyria, Cleveland-14 MI FL MSA ILLargest Market 9.511 4.6 2.6 OH Markets Rank Markets 5 3,403 71.8 2.2 Focus $8,052 746 Deposits 4.4 1.8 3.4Have Share Significant % Deposit Opportunity Cincinnati, Orlando, Columbus, FL Indianap
Slide 5: Strong Affiliate Loan Growth
Continued Florida 0% 5% 15% 20% 25% 30% Louisville 13 10% Average 67 57 52 46 45 43 30 40 50 60 70 2000 Q3-05 2004 5 ofannualized 2001 17 YTD Chicago Loans affiliates Strong 2002 Average &average Cleveland 2003 Affiliate Leases grew Total loans loan Loan Nashville by growth & 9% Results Lease or in
Slide 6: Improving Core Deposit Growth
Improving 13 Q3-05 Loans 0% 5% 10% 15% 20% 25% 30% Lexington Nashville 6 of 17 Core YTD affiliates Columbus Detroit Balance Deposits Averagehave Indianapolis Sheet Chicago Loan grown Core & Core OH loans Funding Valley Deposit fasterFlorida than Growth core Toledo deposits Cincinnati in 2005 W. Mich
Slide 7: Driving Deposit Growth
Driving Deposit Bundled Enhanced Competitive Quarterly Increased Right Customer Improved 2006 1 7 N.MichPlanned price product 1Columbus Improved balance product 1retention deposit distribution surveys product 1everyday 1De-novo 1and sales 2campaigns –offerings Deposit 3and OH“Voice account 3 through
Slide 8: De-novo Performance Expectations
40 000’s) Total Performance IRR Daytime Business Residential Competitive De-novo ($ 1,200 Year 8 30Target 161: Loans 20 1,000 Year (mature): $11 employment Performance Loan Site Net 10 market of household million 2Total 0demographics 800 Expectations Income Selection Year 18% &600 $35 density Deposi
Slide 9: Demonstrated Demand for Interest Checking
Demonstrated 25,000 30,000 35,000 Interest Demand 5-year Loans Earning 95,000 Avg 1996 9 Demand Loans 1997 & CAGR 20,000 85,000 Checking Assets Deposits Leases 1998 &&Leases Core 15,000 75,000 9% NOW 8% 1999 18% 15% $Balance Avg Millions 10,000 65,000 2000Earning 2001 Sheet 5,000 55,000 2002 Assets
Slide 10: Deposit Market Share Opportunity
The5% Fifth FITB Michigan 0% 5% 1% 3% 6% 7% 8% 9% 10 Deposit Third State 10% Ohio has Market Opportunity 15%only Kentucky 20% Share an 5%Indiana marketIllinois share inFlorida the core Tennessee seven-state 7 State footprint Total Fifth Third has a 7% market share on a combined basis in MSA’s greate
Slide 11: 2004 Revenue by Business Line
2004 Revenue Investment Retail Commercial Processing 11 51% revenues Solutions Advisors 28% by Business exclude 10% 11% Line gain-on-sale
Slide 12: Q3-05 Revenue Diversity
Service19% Q3-05 Processing Investment Mortgage Commercial Other Deposit 12 Noninterest Income Revenues 7% Solutions Advisors Banking Diversity 22% Revenues 14% 30% 8%
Slide 13: Fifth Third (Chicago)
Fifth I. II. III. IV. V. 13 Market Commercial Historical De-novo Retail ThirdSummary Banking Bank Strategy Performance Banking (Chicago)
Slide 14: Fragmented Chicago Market
Fragmented Northern Harris LaSalle All Chase Fifth Chicago Population: MSA 3 Others Rank 1 Third 16.0% 9.8% MARKET 12.9% Demographics Trust 54.4% 3.4% 9.5 Market 3.5% million Institution JPMorgan SHARE with Count ChaseDeposits Opportunity & Branch in market: in30,956,884 Market Co 327 Deposits Share
Slide 15: Fifth Third (Chicago) Highlights
Fifthbanking Almost 133 Year-to-date Loan 15 Third growth 40 de-novo (Chicago) 2005 centers of 17% Chicago banking $9.6 Corebillion Deposit highlights: centers in growth assets opened$8.7 ofin10% Chicago billion inarea deposits since efforts began in late 2002
Slide 16: Fifth Third (Chicago) Revenue Mix
Fifth 600,000 2001 Net Retail Commercial Consumer IA FTPS Total 16 2005 6% Interest Third 2002 Business Revenues Chicago 4% 55% 500,000 6% 2003 (Chicago) Income 29% revenues Mix 2004 400,000 Service Revenue Q3-2005 have 300,000 Income increased Mix annualized 200,000 by 14 percent YTD (9/30) over th
Slide 17: Fifth Third Chicago Balance Sheet Summary and Trends
Fifth 9,000 Chicago 8,000 2001 Total Q3-2005 2004 2005 Third Average 2002 8,500 7,000 Consumer YTD Commercial Interest Savings Affiliate &2003 (Chicago) 8,000 6,000 Avg. Deposit Demand Total 7,500 5,000 Demand Checking MM 2004Balance Summary Avg. 412 2,626 2,526 YTD 7,000 4,000 384 1,280 Deposits Lo
Slide 18: Four Years Look Back
Fifth June NOW (conversion) 24% Card Consumer Construction Comm Resi C&I Cons IN Chicago July Now Savings CD’s 32% Demand 18 FOUR 2005 25% up 31% Mtg 2001 Third 0% 1% 34% Lease 43% 12% 20% Mtg Lease 72% & Asset Deposit 13% up 22% 18% 4% YEARS 23% 37% MM (Chicago)…A 90% 0% 2% 24% 16% Consumer 10% 8%
Slide 19: The Goal: Increasing Market Share Over the Next Five Years
The Goal: 1. 2. 3. 4. 5. 19 Increasing Improving Distribution Next To Meaningfully Fiveproduct primary high-value productivity Years… expansion penetration bank Increase customer and ofrelationships new optimization Market and and retention cross-sell existing Share acrossOver sales all intobusiness
Slide 20: Historical Performance: Retail Banking
Fifth I. 20 Historical Third (Chicago) Performance Retail II. Banking Customer Acquisition III. Product Penetration IV. Customer Retention
Slide 21: Fifth Third Chicago Transaction Deposits
Fifth Third Chicago 8,000 Transaction 2001 Four-year Q3-2005 2004 Consumer 3,000 Average $370 Q1-02 21 2002 million 7,000 2,500 Q2-02 Consumer Deposit transaction loans 2003 (Chicago) Deposits 6,000 2,000 in Q3-02 growth are Mix 5,000 1,500 Loans up Q4-02 CD’s deposit $Retail 16% in Millions 4,000 2
Slide 22: Customer Acquisition
Customer Multiple Total Bundled Reliable “Everyday Small Identity Tailor Language Execute Event Ongoing, Managers 22 financial sponsorship/participation Business offerings Theft sustained and products convenient targeted Acquisition services more Great competitive Solutions solutions product that ac
Slide 23: Product Penetration
Product Increase Success Cross Secure Total 3,500 Dec-04 2.60 Services New 23 Svcs/HH 2.40 Households—12/31/04 HHs New 3,000 sell 4Jan-05 Penetration would existing per services 2.20 to Households 2,500 Household existing new2.00 Feb-05 result customer customers per 2,000 1.80 households in new Mar-
Slide 24: Customer Retention
Customer Pricing “Everyday Continuously “Voice Convenience Friendly, Total Higher Product Relationship VIP Differentiated 24 events financial of rewards strategy bundling responsive the Retention Great pricing locations/banking Customer” improved service solution for Rates” loyalty banking provider
Slide 25: De-novo Expansion
Fifth To 25 strategically Third (Chicago) position De-novo Fifth Third Expansion as the preferred “Convenience and Community” financial provider in optimal neighborhoods and urban work-hoods
Slide 26: Growing Our Distribution: Banking Center Locations
De-novoFifth Current Planned Growing 26 De-novo Banking our distribution ThirdBanking Center Locations by Expansion Centers 18 new(2005-7) banking centers in 2006
Slide 27: Focusing Banking Center Expansion
Focusing 1. 2. – 3. 4. Targeted 5. 27 Full Metropolitan Suburban Emerging Community Mature service revitalization on Banking Density “A” Growth drive Commitment Density Sites Center through Convenience -Identify in and Convenience Key Reconfiguration diversity Growth new housing -Suburban Markets &/
Slide 28: Fostering Enhanced Community Involvement
Fostering Enhanced Community Increased Extended 8:00 Pre-opening Targeted Goal: 28 am $3to calling million banking De-novo stand-alone Grand 3:00 Involvement sales pm efforts in Openings efforts center Growth deposits onATM Saturdays across hours Celebrity distribution before business 6:30 doors Spo
Slide 29: Chicago De-novo Performance
Chicago novo De- Branch 2002 2003 2004 27 Average 120 5 11 16 18 ($ 25100 2002 250 De-novo 29 16 73Deposits 2003 14 De-novo 20Openings 20 300Millions) 30 13 20 $27 20 13 200 80 &15 20$28 13 Total 60150 40 Balances 12 2004 10 8 Bancorp 522Performance Average 11$28 11 452 De-novo 100 0 620 $16 10 4 05
Slide 30: Commercial Banking
Fifth I. II. III. IV. 30 Strong Target Continue Increase Third Historical high-value (Chicago) customer marketPerformance positioning customers Commercial penetration Banking
Slide 31: Strong Commercial Banking Performance
Strong2003 1,600 2002 2001 Four-year Q3-05 Deposit Demand Average 4,500 Q4-02 31 1,400 4,000 Q1-03 Commercial revenues Commercial deposits CAGR 2004 1,200 3,500 Q2-03four-year up of 1,000 3,000 Banking 20 Q3-03 11 Demand Loans percent 800CAGR 2,500 Q4-03 $Performance 600 Millions Deposits over 400 Q
Slide 32: Target High-Value Customers
Targetfinancial More Elevated Number Access Improved “Your Total 32 than Vision; High-Value toof standards and coordination 300 touches Our participation solution commercial Partnership” Customers of perservice, year across encompassing bankers with dictated products business -senior comprehensive d
Slide 33: Increase Customer Penetration
Increase Goal Introducing Each Scorecard Supported Measured 33 is customer toCustomer penetrate systematically will bycompetitively weekly be meeting uniform Penetration existing coaching includes topriced for recognize Commercial all sessions arelationship and different innovative andand reward Fif
Slide 34: Continued Market Momentum
Ongoing Maintain Continued Local Total Sense Responsiveness Driving 34 value decision ofincreased urgency Market Momentum strength proposition making Positioning awareness in By: loan and through deposittargeted generation marketing, with ongoing PR & advertising commitment to credit quality Continu
Slide 35: Questions and Forward-Looking Statements
This Questions of uncertainties. Third “objective,” important limited and than markets; entities generation Further Commission. The Allocations necessarily operations 35 1933, sale financial expected; presentation Bancorp to: are information volumes, as (7) factors (1) if and engaged; amended, compa
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