Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — BancAnalysts Association of Boston Conference 2014
18 slides from Fifth Third Bancorp's conference presentation, Nov 5, 2014
Slide 1: BancAnalysts Association of Boston Conference
Exhibit 99.1 BancAnalysts Association of Boston Conference Tayfun Tuzun Executive Vice President & Chief Financial Officer November 6, 2014 Refer to earnings release dated October 16, 2014 for further information © Fifth Third Bank | All Rights Reserved
Slide 2: Broad scope of products and services addressing the needs of wide array of customers
Broad scope of products and services addressing the needs of wide array of customers Branch Banking Consumer Lending Wealth Management Wholesale Banking Footprint In footprint markets In footprint markets National consumer lending National commercial banking Business Retail Bank Mortgage Private Ban
Slide 3: Third quarter 2014 earnings highlights
Third quarter 2014 earnings highlights • Earnings per diluted share of $0.39; included impact of negative valuation adjustment on Vantiv warrant ($53 million pre-tax, or $0.04 per share) • Solid operating results driven by expense discipline and healthy balance sheet with strong growth potential • O
Slide 4: Balance sheet strategy
Balance sheet strategy Achieve appropriate risk-adjusted returns on lending relationships Manage securities portfolio in a disciplined manner Target long-term efficiency in liquidity management Position deposit base for a competitive environment Proactive balance sheet management based on risk appet
Slide 5: Funding profile
Funding profile Loans and Core Deposits ($B) • Loan-to-core deposit ratio better positioned for rising rates and liquidity rules • 97% in 3Q 2014; 106% in 3Q 2004 • Future growth needs to be balanced • …and to remain above historical levels • Utilization of short-term borrowings no longer a prudent
Slide 6: Strengthened deposit profile
Strengthened deposit profile 3Q04 ($54B) Core Deposit Growth 3Q14 ($93B) • Over the last 10 years, core deposits have grown 72% from $54B to $93B Commercial – $17B increase in consumer core deposits Commercial Consumer – $22B increase in commercial core deposits Consumer 3Q04 Commercial ($20B) Core
Slide 7: Long-term industry balance sheet trends
Long-term industry balance sheet trends 1 U.S. Banks and Nominal GDP Loan-to-deposit ratios improving for the industry since the financial crisis – Deposit growth is consistent with its long-term trends – Loan growth exceeded nominal GDP growth pre-crisis and has now stabilized to match GDP growth F
Slide 8: Deposit composition trends
Deposit composition trends Industry Deposit Composition vs. Nominal 1 Deposit mix has been impacted by GDP prolonged low rates Longer term trend of slowly declining proportion of non-interest bearing balances reversed in 2008 — Future reversion to mean will be a function of the rate environment Fift
Slide 9: Value of retail deposits
Value of retail deposits 1 Retail deposits are the foundation of Consumer Deposit Pricing Sensitivity our balance sheet funding strategy: 5.25% — Provide more stable source of liquidity — Relative price advantage – 40% beta during the last Fed tightening cycle while commercial deposits had a 67% bet
Slide 10: Deposit offerings drive value contribution
Deposit offerings drive value contribution Single Service Households Cross Sell Ratio Accounts Paying a Maintenance Fee • Broader and deeper banking relationships with Fifth Third earn better rates and lower costs • Favorable execution trends contributing to stronger revenue • Could see additional b
Slide 11: Enhancing retail bank platform
Enhancing retail bank platform Consumer deposit activity Transaction volume by ATM and Mobile channels • Remote deposit capture launched in 2012 • All ATMs image-enabled and ~50 Smart ATMs Branch transactions Average monthly teller trans. in millions deployed with additional consumer-friendly upgrad
Slide 12: Deposit momentum delivering franchise value
Deposit momentum delivering franchise value Western Michigan and Northwestern Ohio affiliates #1 market shares (17% and 19% of FITB footprint deposits, respectively); incl. Grand Rapids, MI and Toledo, OH Chicago affiliate Fifth Third’s second largest affiliate market; 6.9% increase in deposits vs.
Slide 13: Conclusion
Conclusion Actively Managing managing expenses with balance sheet focus on based on risk improved appetite efficiency Continuously Creating improving shareholder business value with long- platforms in term focus while response to optimizing our changing current environment opportunities 13 © Fifth T
Slide 14: Cautionary statement
Cautionary statement This report 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 3b-6 pr
Slide 15: Appendix
Appendix 15 © Fifth Third Bank | All Rights Reserved
Slide 16: Interest rate risk management
Interest rate risk management Strategically positioned balance sheet to limit risk to downside rate scenarios • Balance sheet is well positioned for a rising rate environment — 62% of total loans are floating rate (80% of commercial and 35% of consumer) — Investment portfolio duration of approximate
Slide 17: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) For the Three Months Ended September June March December September 2014 2014 2014 2013 2013 Income before income taxes (U.S. GAAP) 464 606 438 561 604 Ad
Slide 18: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) For the Three Months Ended September June March December September 2014 2014 2014 2013 2013 Total Bancorp shareholders' equity (U.S. GAAP) 15,404 15,469
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