Fifth Third Bancorp · NASDAQ:FITB

Fifth Third Bancorp — RBC Capital Markets Global Financial Institutions Conference 2022

30 slides from Fifth Third Bancorp's conference presentation, Mar 9, 2022

  1. Slide 1: RBC Capital Markets Global Financial Institutions Conference

    1 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved RBC Capital Markets Global Financial Institutions Conference Greg D. Carmichael Chairman & Chief Executive Officer March 9, 2022

  2. Slide 2: Cautionary statement

    2 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 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

  3. Slide 3: Living our purpose guided by our vision and values

    3 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Living our purpose guided by our vision and values Our Vision Be the One Bank people most value and trust Our Core Values Our Purpose To improve the lives of our customers and the well-being of our communities Work as One Bank

  4. Slide 4: Delivering on our financial commitments

    4 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Delivering on our financial commitments 1 Differentiating our brand and customer experience 2 Optimizing the balance sheet 3 Driving fee income growth 4 Strategic expense management 2016 long-term commitments Select proof poin

  5. Slide 5: Consistent household growth has accelerated

    5 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Consistent household growth over the past several years has accelerated ~15% Historical trend of household growth Year-over-year % change; 2019 and 2020 excludes the impact of MB Financial • In 2021 every Fifth Third market ha

  6. Slide 6: Growing treasury management business while reducing reliance on consumer deposit fees

    6 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 8% 14% 17% 20% 30% 30% 35% 36% 37% 39% 44% Peer 1 Peer 2 FITB Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 2.3% 2.3% 2.4% 2.6% 2.9% 2.9% 4.0% 4.4% 5.0% 5.7% 5.8% Peer 1 Peer2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer

  7. Slide 7: Diversified and growing fee revenues

    7 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 12% 4% 13% 15% 9% 14% 17% 17% 2015 1Full year adjusted noninterest income and full year adjusted total revenue are Non-GAAP measures. See reconciliations disclosed in the 4Q21 & 4Q15 earnings presentations; 2Peer group is comp

  8. Slide 8: Specialized industry verticals generate distinctive financial results

    8 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 2015 2021 Specialized industry verticals generate distinctive financial results and risk management Healthcare ~$4.0B Energy (incl. Renewables) ~$3.6B Entertainment, Lodging and Leisure ~$1.9B Retail ~$4.5B Technology Media Te

  9. Slide 9: Expect continued momentum in middle market business

    9 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Midwest ex. Chicago Southeast Chicago Expansion marketsTotal middle market 2020 2021 2022E Focused on growing middle market relationships to improve profitability with strong credit quality Go to market strategy • Strong local

  10. Slide 10: Balance sheet management focused on long-term outperformance

    10 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Balance sheet management focused on long-term outperformance 1 Highly asset sensitive, with continued focus on hedging risks over the long-term 2 Differentiated securities portfolio to provide stability under various rate sce

  11. Slide 11: Highly asset sensitive, with continued focus on hedging risks

    11 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved • Each of the first four 25 bps rate hikes add $120MM - $140MM of annual NII (6 - 7 bps to NIM); each successive rate hike likely to be slightly less impactful given assumed deposit betas • ~80% of rate sensitivity to front-e

  12. Slide 12: Prudent deployment of excess liquidity

    12 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved (6%) (5%) (3%) (3%) (2%) (1%) 1% 1% 2% 6% 8% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 FITB 33% 29% 26% 25% 25% 22% 21% 19% 18% 16% 11% 4% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 FITB Peer 6 FITB Peer

  13. Slide 13: Differentiated securities portfolio to provide stability under various rate scenarios

    13 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Differentiated securities portfolio to provide stability under various rate scenarios Consistent securities yield outperformance1 1Source: Regulatory data pulled from S&P Market Intelligence; Peer group is comprised of Fifth

  14. Slide 14: Disciplined credit underwriting and client selection

    14 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved • Prime and super prime focus; WA portfolio FICO of 765 • ~90% of total portfolio secured • 14 bps year-over-year decline in 30-89 days past due as a % of loans • Expect indirect auto and specialty originations of ~$11BN in 2

  15. Slide 15: Fifth Third value proposition

    15 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Fifth Third value proposition Generating strong relationship growth in all our markets with a focus on our Southeast expansion, and on continually improving the digital experience Diversified and growing fee revenues to suppo

  16. Slide 16: Appendix

    16 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Appendix

  17. Slide 17: Digital channel usage and engagement

    17 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 0.9 1.4 4Q20 4Q21 2.6 2.8 4Q20 4Q21 +6% Year-over year growth Digital channel usage and engagement Active digital banking users Digital sales (includes deposits, card, & loans) +56% Year-over year growth 4Q20 4Q21 3x growth M

  18. Slide 18: ESG priorities and actions

    18 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved ESG priorities and actions Addressing climate change Promoting inclusion and diversity Demonstrating our commitment to employees Strengthening our communities Keeping the customer at the center $180MM Neighborhood Investment

  19. Slide 19: ESG ratings and recognitions

    19 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved ESG ratings and recognitions ESG data providers Peer group comprises of Fifth Third’s board approved peers SSGA R-Factor Score Feb 2022 Outperformer Top 10-30% among Commercial Banks S&P Global ESG Score Corporate Sustainabil

  20. Slide 20: Commercial revolver utilization rates by portfolio

    20 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 35% 52% 40% 35% 34% 32% 32% 31% 33% 35% 0 2 4 6 8 10 12 14 16 18 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 2/28/22 Commercial utilization rate $27 $35 $28 $25 $24 $23 $24 $25 $28 $29 36% 47% 38% 33% 32% 31% 31% 31% 33% 35%

  21. Slide 21: Diversified commercial loan portfolios

    21 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 18% 11% 11% 8% 7% 7% 5% 5% 4% 3% 3% 2% 2% 14% Metal Chemical Transportation equipment Machinery Food Computer & Electronic Plastics & Rubber Beverage & tobacco Paper Electrical equipment Nonmetallic mineral Furniture & relate

  22. Slide 22: Investing in the Southeast franchise to generate smart scale

    22 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 56% 16% 28% Midwest ex. Chicago Chicago Southeast Investing in the Southeast franchise to generate smart scale FITB SE market with a top 5 deposit share Key Southeast MSAs of focus Represents a FITB Southeast retail market fo

  23. Slide 23: Momentum Banking: Unique value proposition

    23 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Momentum Banking: Unique value proposition Combining the best of fintech and traditional banks Free access to payroll, social security income, or other recurring ACH payments up to two days early with direct deposit • ~817K F

  24. Slide 24: Strategic acquisition of Provide to accelerate growth

    24 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Strategic acquisition of Provide to accelerate growth Overview • Provide is the leading fintech in the healthcare practice finance segment • Closed acquisition of Provide on August 2 • Digital capabilities delivers best-in- c

  25. Slide 25: Dividend Finance overview

    25 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Dividend Finance overview • Founded in 2013 and headquartered in San Francisco, Dividend Finance is a national tech-enabled point-of-sale finance provider assisting homeowners with the renewable energy transition (solar and h

  26. Slide 26: Technology investments and capabilities

    26 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved Data Center Modernization Infrastructure Platforms Products & Capabilities Select tech partners Enterprise Data Optimization Network, Infrastructure and Application Resiliency TM Cash Management - Expert AR Mobile Modernizati

  27. Slide 27: Expanding capital markets capabilities to create value for clients

    27 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 56% 80% Financial Risk Management (FRM) Strategic Advisory & Investment Banking (incl. M&A) Expanding capital markets capabilities to create value for our clients Growing fees across the Capital Markets business Institutional

  28. Slide 28: Cash flow hedges continue to protect NIM for next 3+ years

    28 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved $9 $12 $12 $12 $12 $11 $11 $11 $7 $7 $6 $5 $5 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $12 $15 $15 $15 $15 $14 $14 $14 $10 $10 $9 $8 $5 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Floors Swaps ($3BN @ 2.25% 1-

  29. Slide 29: Paycheck Protection Program update

    29 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved 1See forward-looking statements on page 2 of this presentation regarding forward-looking non-GAAP measures and use of non-GAAP measures on pages 27-29 of the 4Q21 earnings release $5.1 $5.2 $4.8 $3.1 $1.8 4Q20 1Q21 2Q21 3Q21

  30. Slide 30: GNMA forbearance loan purchase update

    30 Classification: Internal Use© Fifth Third Banc rp | All Rights Reserved $3.6 $2.6 $1.8 $1.2 $0.8 4Q21 1Q22 2Q22 3Q22 4Q22 $32.9 $22.6 $13.0 $8.2 $5.0 4Q21 1Q22 2Q22 3Q22 4Q22 $13.8 $8.6 $5.2 $3.4 $2.4 4Q21 1Q22 2Q22 3Q22 4Q22 Average loan balances • Third-party serviced GNMA forbearance loan purc

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