Slide 1: Fifth Third Bancorp 2Q24 Earnings Presentation
Fifth Third Bancorp 2Q24 Earnings Presentation July 19, 2024 Refer to earnings release dated July 19, 2024 for further information. © Fifth Third Bancorp | All Rights Reserved Ó Fifth Third Bancorp | All Rights Reserved
Slide 2: Cautionary statement
Cautionary statement This presentation contains 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 3
Slide 3: 2Q24 highlights
2Q24 highlights • First quarter of sequential NII growth since 2022 Reported1 Adjusted1 EPS $0.81 $0.86 • Strong profitability resulted in CET1 increasing 13 bps while also executing $125 million of share repurchases ROA 1.14% 1.21% • Average deposits increased 4% compared to 2Q23 ROE 13.6% 14.5% •
Slide 4: Driving to consistently generate top quartile results
Driving to consistently generate top quartile results Return on tangible common equity1,2 Return on assets1 Efficiency ratio1 LTM 1Q24 unless otherwise noted; Adjusted basis LTM 1Q24 unless otherwise noted; Adjusted basis LTM 1Q24 unless otherwise noted; Adjusted basis FY18 LTM FY18 LTM FY18 LTM Pee
Slide 5: Net interest income
Net interest income1 1Q24 to 2Q24 adjusted NII & NIM walk NII $ in millions; NIM change in bps NII NIM 1Q24 $1,390 2.86% Total net interest income; $ millions Net market rate impact 11 2 Loan balances / mix 8 2 Securities portfolio (2) - Deposit/wholesale funding (10) (2) balances / mix Other, net 1
Slide 6: Noninterest income
Noninterest income 2Q24 vs. 1Q24 • Adjusted noninterest income1 flat compared to the prior quarter • Primary drivers: Total noninterest income; $ millions ‒ Service charges on deposits (up 5%) reflecting an increase in commercial payments revenue ‒ Card and processing revenue (up 6%) reflecting an i
Slide 7: Noninterest expense
Noninterest expense 2Q24 vs. 1Q24 • Adjusted noninterest expense1 down $86 million, or 7% • Primary drivers: ‒ Compensation and benefits (down 13%) due to seasonal compensation awards in the first quarter Total noninterest expense; $ millions ‒ Net occupancy expense (down 5%) due to seasonal factors
Slide 8: Interest earning assets
Interest earning assets Average loan & lease balances Average securities1 and short-term investments $ in billions; loan & lease balances excluding HFS $ in billions % change % change QoQ YoY QoQ YoY — (2%) (3%) +164% (1%) (7%) — (1%) Period-end loan & lease balances Period-end HFS loan & lease bala
Slide 9: Deposits and wholesale funding
Deposits and wholesale funding Average deposit balances Average wholesale funding balances $ in billions $ in billions % change % change $5.4 $5.5 $4.7 QoQ YoY QoQ YoY (14%) (12%) (2%) (6%) — +4% CDs > $250K Core deposits Total interest-bearing deposit costs Total wholesale funding Wholesale funding
Slide 10: High-quality deposit franchise
High-quality deposit franchise 4 point outperformance vs. large commercial banks Fifth Third continues to outpace the industry in deposit share growth 2 Average total deposits indexed to 100; H8, non-seasonally adjusted total deposits Significant locational share improvement Deposit share rankings s
Slide 11: Maintaining top quartile deposit density while expanding branch network in the Southeast
Maintaining top quartile deposit density while expanding branch network in the Southeast Deposit density market rank1 Total Top 5 Peer 1 75% 14% 8% 89% x 63% 14% 18% 77% Peer 2 57% 30% 11% 87% Peer 3 57% 6% 17% 63% Peer 4 46% 23% 18% 69% Peer 5 46% 22% 29% 68% Peer 6 43% 23% 20% 66% Peer 7 41% 3% 23
Slide 12: Credit quality overview
Credit quality overview Key metrics 2Q23 3Q23 4Q23 1Q24 2Q24 NPL ratio 0.52% 0.47% 0.55% 0.61% 0.52% NPA ratio1 0.54% 0.51% 0.59% 0.64% 0.55% 30-89 days past due as a % of portfolio loans and leases 0.28% 0.26% 0.31% 0.29% 0.26% NCO ratio 0.29% 0.41% 0.32% 0.38% 0.49% ACL ratio as a % of portfolio l
Slide 13: Allowance for credit losses
Allowance for credit losses Allocation of allowance by product 2Q24 Change in rate $ in millions Compared to: % of portfolio Allowance for loan & lease losses Amount loans & leases 1Q24 2Q23 ••Drivers Driversofof$47MM $47MMdecrease decrease Commercial and industrial loans $721 1.39% (0.05%) (0.09%)
Slide 14: Strong liquidity and capital position
Strong liquidity and capital position Capital position Common equity tier 1 ratio1 Liquidity position $ in billions • Maintained full Category 1 LCR compliance during the quarter Liquidity Sources 3/31/24 6/30/24 • Loan-to-core deposit ratio of 72% Fed Reserves ~$22 ~$21 • For several years, we have
Slide 15: Current expectations: FY 2024
Current expectations FY 2024 compared to FY 2023 Avg. loans & leases down ~3% (including HFS) Total revenue1 down ~2% (FY23 baseline: $8.826 billion; Includes securities g/l) Net interest income1 down 2 – 4% (FY23 baseline: $5.852 billion) Noninterest income1 stable to down ~1% (FY23 baseline: $2.95
Slide 16: Current expectations: 3Q24
Current expectations 3Q24 compared to 2Q24 Avg. loans & leases stable to up ~1% (including HFS) Total revenue1 up 1 – 2% (2Q24 baseline: $2.118 billion; Includes securities g/l) Net interest income1 up ~2% (2Q24 baseline: $1.398 billion) Noninterest income1 up 1 – 2% (2Q24 baseline: $717 million) No
Slide 17: Appendix
Appendix 17 © Fifth Third Bancorp | All Rights Reserved
Slide 18: Top performing regional bank with local scale and national reach
Top performing regional bank with local scale and national reach Assets Leading position in the markets we compete in3 $213 billion Toronto office Deposit share rankings4 Ranked 11th in the U.S.1 161 #3 Fifth Third footprint improved 1 spot YoY Deposits 249 $167 billion 157 100 5 #2 Midwest #6 South
Slide 19: Living our purpose guided by our vision and values
Living our purpose guided by our vision and values Our To improve the lives of our customers and the well-being of Purpose our communities Our Vision Be the One Bank people most value and trust Our Work as One Bank Take Accountability Core Values Be Respectful Act with Integrity Our purpose, vision,
Slide 20: Sustainability priorities and metrics
Sustainability priorities and metrics Keeping the Demonstrating our Addressing climate Promoting inclusion Strengthening our customer at the commitment to change and diversity communities center employees >$39BN in sustainable financing ~$3.7BN in lending, investments, >6.7MM customer outreach calls
Slide 21: A recognized leader in sustainability among peers
A recognized leader in sustainability among peers Actions Demonstrating Leadership Third-party recognitions 2023 Sustainability report Aligned with industry standards and frameworks, including SASB and GRI, available on ir.53.com Executive compensation tied to sustainability priorities Sustainabilit
Slide 22: Intentionally diversifying fee revenue to perform well in any environment
Intentionally diversifying fee revenue to perform well in any environment Fee contribution as a percent of revenue stands out Fee revenue mix is well-diversified favorably relative to peers LTM 2Q24 adjusted noninterest income mix2,3 Adjusted noninterest income as a percent of adjusted revenue3 Othe
Slide 23: Significant fee scale with strong organic growth
Significant fee scale with strong organic growth Commercial payments business Capital markets hedging business Median is the intersect Median is the intersect Capital markets hedging revenue2 as 6% 3.5% Commercial payments revenue1 as a FITB FITB 5% 1Q24 LTM 3.0% 1Q24 LTM unless otherwise noted 1Q24
Slide 24: Mortgage banking results
Mortgage banking results Mortgage banking net revenue Mortgage originations and margins $ in millions $ in billions Rate lock margin 1.52% 1.45% 1.34% 1.53% 1.30% Gain-on-sale margin 1.71% 1.82% 1.29% 1.68% 1.48% Rate lock margin represents gains recorded associated with salable rate locks divided b
Slide 25: High quality Shared National Credit portfolio
High quality Shared National Credit portfolio Shared National Credit portfolio is well diversified $ in billions; as of 6/30/24 • Reduced balances 12% compared to Industry mix 2Q23 SNC $31.9BN • ~40% of SNC balances are investment portfolio ~27% of total loans Other Retail grade equivalent borrowers
Slide 26: CRE portfolio is well-positioned
CRE portfolio is well-positioned Comparing CRE portfolios relative to peers As of 3/31/24 unless otherwise noted CRE loans1 / total loans CRE loans1 / total capital CRE criticized asset ratio2 Peer 1 13% FITB 2Q24 72% 30% FITB 1Q24 14% FITB 1Q24 73% Peer 9 FITB 2Q24 14% Peer 2 80% 25% 1Q24 CRE criti
Slide 27: Fed stress test CRE loss rate comparison vs. peers
Fed stress test CRE loss rate comparison vs. peers 2024 Fed stress test loss rate1 vs. CRE criticized asset ratio 2024 Fed stress test loss rate1 vs. 2008 - 2009 loss rate2 Median is the intersect Median is the intersect Median Median 14.0% 3.1% 14% 14% 13% 2Q24 13% 2024 Fed stress test CRE loss rat
Slide 28: Limited non-owner occupied exposure with very strong credit quality
Limited non-owner occupied exposure with very strong credit quality Non-owner occupied CRE represents <10% of total loans Office CRE portfolio stats As of 6/30/24 As of 2Q24; Non-owner occupied vs. PQ Total Bancorp loans Average loan commitment $11.3 million 3% $117BN NCOs / average loans (LTM) 0.02
Slide 29: NPL Rollforward
NPL1 Rollforward Commercial $ in millions 2Q23 3Q23 4Q23 1Q24 2Q24 Balance, beginning of period $334 $345 $281 $326 $372 Transfers to nonaccrual status 185 53 93 108 51 Transfers to accrual status (58) — — (1) — Transfers to held for sale (4) (6) — (3) — Loan paydowns/payoffs (77) (39) (20) (18) (66
Slide 30: Total commercial portfolio overview
Total commercial portfolio overview Portfolio loans and leases Key statistics $ in billions Average QoQ change 2Q23 1Q24 2Q24 0.4% (1.8%) (2.8%) (1.9%) (0.8%) NCO ratio1 0.16% 0.19% 0.45% Period-end QoQ change 30-89 Delinquencies 0.16% 0.15% 0.09% (1.1%) (1.6%) (3.2%) (1.1%) (0.2%) 90+ Delinquencies
Slide 31: Commercial & industrial overview
Commercial & industrial overview Portfolio loans Key statistics $ in billions Average QoQ change 2Q23 1Q24 2Q24 — (2.0%) (4.2%) (2.7%) (1.6%) NCO ratio1 0.22% 0.27% 0.61% Period-end QoQ change 30-89 Delinquencies 0.13% 0.12% 0.03% (1.4%) (1.9%) (4.5%) (2.0%) (0.7%) 90+ Delinquencies 0.01% 0.02% 0.01
Slide 32: Commercial real estate overview
Commercial real estate overview Portfolio loans Key statistics $ in billions Average QoQ change 2Q23 1Q24 2Q24 1.7% (0.9%) 1.9% — 1.2% NCO ratio1 0.00% 0.00% 0.01% Period-end QoQ change 30-89 Delinquencies 0.17% 0.15% 0.18% 0.1% (0.5%) 1.2% 1.4% 0.6% 90+ Delinquencies 0.12% 0.00% 0.01% Nonperforming
Slide 33: Total consumer portfolio overview
Total consumer portfolio overview Portfolio loans Key statistics $ in billions 2Q23 1Q24 2Q24 Average QoQ change NCO ratio1 0.50% 0.67% 0.57% 0.5% (0.7%) (1.4%) (0.2%) 0.3% 30-89 Delinquencies 0.48% 0.52% 0.52% Period-end QoQ change 90+ Delinquencies 0.05% 0.05% 0.06% (0.2%) (1.2%) (1.1%) 0.2% 0.5%
Slide 34: Residential Mortgage overview
Residential Mortgage overview Portfolio loans Key statistics $ in billions 2Q23 1Q24 2Q24 Average QoQ change NCO ratio1 0.00% (0.01%) (0.01%) (0.4%) (0.7%) (1.6%) (0.9%) 0.2% 30-89 Delinquencies 0.11% 0.14% 0.15% Period-end QoQ change 90+ Delinquencies 0.04% 0.03% 0.05% (0.6%) (1.2%) (1.5%) (0.2%) 0
Slide 35: Home equity overview
Home equity overview Portfolio balances Key statistics $ in billions 2Q23 1Q24 2Q24 Average QoQ change NCO ratio1 0.06% 0.03% (0.05%) (1.7%) (1.0%) 0.2% 0.7% (0.1%) 30-89 Delinquencies 0.61% 0.64% 0.66% Period-end QoQ change 90+ Delinquencies 0.03% 0.00% 0.00% (1.2%) (0.3%) 0.5% (0.8%) 2.2% Nonperfo
Slide 36: Indirect secured consumer overview
Indirect secured consumer overview Portfolio loans Key statistics $ in billions 2Q23 1Q24 2Q24 Average QoQ change NCO ratio1 0.38% 0.64% 0.46% (1.9%) (3.0%) (4.2%) 0.3% 1.3% 30-89 Delinquencies 0.76% 0.82% 0.83% Period-end QoQ change Nonperforming Loans2 0.14% 0.21% 0.23% (2.3%) (4.1%) (3.0%) 2.3% 0
Slide 37: Credit card overview
Credit card overview Portfolio loans Key statistics $ in billions 2Q23 1Q24 2Q24 Average QoQ change NCO ratio1 3.61% 4.19% 3.98% 0.2% 1.4% 1.2% (3.1%) (2.5%) 30-89 Delinquencies 1.10% 1.09% 1.10% Period-end QoQ change 90+ Delinquencies 0.94% 1.09% 0.98% 3.2% (0.1%) 2.6% (6.9%) (0.2%) Nonperforming L
Slide 38: Solar energy installation overview
Solar energy installation overview Portfolio loans Key statistics $ in billions 2Q23 1Q24 2Q24 Average QoQ change NCO ratio1 0.95% 1.31% 1.25% 28.5% 16.4% 11.9% 4.5% 3.2% 30-89 Delinquencies 0.27% 0.36% 0.33% Period-end QoQ change Nonperforming Loans2 0.84% 1.68% 1.67% 22.6% 14.3% 10.2% 3.8% 2.1% We
Slide 39: Balance sheet positioning
Balance sheet positioning Commercial loans1,2 Consumer loans1 Investment portfolio Long-term debt 3 $19.3BN fixed | $52.5BN variable 1,2 $38.6BN fixed | $6.2BN variable 1 $10.3BN fixed | $6BN variable 3 • 58% allocation to bullet/locked-out • 1M based: 49% 5,8 • 1M based: 1% 6,8 cash flow securities
Slide 40: Strong liquidity profile
Strong liquidity profile Unsecured debt maturities $ millions – excl. Retail Brokered & Institutional CDs Holding company: • Holding Company cash as of June 30, 2024: $4.7BN • Cash on hand at Holding Company currently sufficient to satisfy all fixed obligations for ~34 months (debt maturities, commo
Slide 41: Managing rate risk against conservative outcomes
Managing rate risk against conservative outcomes Estimated NII sensitivity profile and ALCO policy limits % Change NII (FTE) ALCO policy limit 13 to 24 13 to 24 Change in interest rates (bps) 12 months months 12 months months +200 Ramp over 12 months (3.3%) (4.6%) (5.0%) (6.0%) Rate Risk models assu
Slide 42: Interest-bearing deposit mix
Interest-bearing deposit mix Stable deposit portfolio well positioned for lower rates Interest-bearing deposit mix As of 6/30/24 • Mostly low-rate and stable consumer & relationship-based deposits • Beta in falling rate environment: ~0% Low beta / low cost1 • Accounts with an intermediate rate Mid-b
Slide 43: Investment portfolio composition
Investment portfolio composition Securities portfolio Investment portfolio characteristics AFS and HTM portfolio; amortized cost basis; as of 6/30/24 Amortized cost basis; as of 6/30/24 Held-to-maturity portfolio • $11.4BN portfolio • Reclassification during 1Q24 aimed to de-risk potential AOCI vola
Slide 44: Securities portfolio AOCI accretion
Securities portfolio AOCI accretion Projected AOCI accretion1 $ in billions; 6/30/24 AFS and HTM portfolio unrealized loss, after-tax Assuming implied forward curve2 Assuming static rates ~62% ~57% capital accretion capital accretion ~26% capital accretion ~21% capital accretion 44 © Fifth Third Ban
Slide 45: Cash flow hedges
Cash flow hedges Floors and receive-fixed swaps1 EOP notional value of cash flow hedges ($ in billions) Forward starting Existing receive-fixed Floors ($3BN @ 2.25% 1- receive-fixed swaps3 swaps4 month LIBOR strike)2 5 Actual weighted average receive fixed rate 3.03%6 3.02% 3.05% 3.17% 3.19% 3.27% 3
Slide 46: Preferred dividend schedule
Preferred dividend schedule Upcoming preferred dividend schedule1 3Q24 4Q24 1Q25 2Q25 $ in millions Series H ~$13 ~$13 ~$12 ~$12 Floating2 Series Floating I 2 ~$11 ~$10 ~$10 ~$10 Series J ~$7 ~$7 ~$6 ~$6 Floating2 Series K ~$3 ~$3 ~$3 ~$3 Series L ~$4 ~$4 ~$4 ~$4 Class B Series A ~$3 ~$3 ~$3 ~$3 Tot
Slide 47: 2Q24 adjustments and notable items
2Q24 adjustments and notable items Adjusted EPS of $0.861 2Q24 reported EPS of $0.81 included a negative $0.05 impact from the following notable items: • $23 million pre-tax (~$18 million after-tax2) charge related to the valuation of the Visa total return swap • $18 million pre-tax (~$14 million af
Slide 48: Non-GAAP reconciliation
Non-GAAP reconciliation For the Three Months Ended Fifth Third Bancorp and Subsidiaries $ and shares in millions June March December September June (unaudited) 2024 2024 2023 2023 2023 Net income (U.S. GAAP) (a) $601 $520 $530 $660 $601 Net income (U.S. GAAP) (annualized) (b) $2,417 $2,091 $2,103 $2
Slide 49: Non-GAAP reconciliation
Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries For Three Months Ended $ and shares in millions June March December September June (unaudited) 2024 2024 2023 2023 2023 Average interest-earning assets (a) $194,499 $195,349 $198,166 $192,216 $189,060 Net interest income (U.S. GAAP) (b) $1
Slide 50: End notes
Earnings presentation end notes Slide 3 end notes 1. Reported ROTCE, NIM, pre-provision net revenue, and efficiency ratio are non-GAAP measures: all adjusted figures are non-GAAP measures; see reconciliation on pages 48 and 49 of this presentation and the use of non-GAAP measures on pages 27-29 of t
Slide 51: End notes
Earnings presentation end notes Slide 18 end notes Note: Assets, deposits, and branches as of 6/30/24. 1. Rankings as of 3/31/24 and consist of US commercial banks and exclude foreign, trust, & traditional investment banks. 2. Includes MSAs with $5BN+ in deposits on a capped basis (deposits per bran
Slide 52: End notes
Earnings presentation end notes Slide 31 end notes 1. Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis. 2. Nonperforming portfolio loans and leases as a percent of portfolio loans and leases. 3. Total commercial portfolio line utilization. Sl
Slide 53: End notes
Earnings presentation end notes Slide 41 end notes Note: Data as of 6/30/24; actual results may vary from these simulated results due to differences between forecasted and actual balance sheet composition, timing, magnitude, and frequency of interest rate changes, as well as other changes in market