Slide 1: Fifth Third Bancorp 4Q24 Earnings Presentation
Fifth Third Bancorp 4Q24 Earnings Presentation January 21, 2025 Refer to earnings release dated January 21, 2025 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: 4Q24 highlights
4Q24 highlights Reported1 Adjusted1 • Continued momentum in net interest income and net interest EPS $0.85 $0.90 margin due to loan growth, deposit rate management, and fixed rate asset re-pricing ROA 1.17% 1.22% • Interest-bearing liabilities costs down 38 bps sequentially ROE 13.0% 13.7% • Strong
Slide 4: Focus on strength and stability leads to expected outcomes
Focus on strength and stability leads to expected outcomes Full year guidance as of January 19, 2024 Full year 2024 adjusted1 results Total revenue1 down 1 - 2% down 2% (FY23 baseline: $8.826 billion; Includes securities g/l) Net interest income1 down 2 – 4% down 3% (FY23 baseline: $5.852 billion) N
Slide 5: Net interest income
Net interest income1 3Q24 to 4Q24 adjusted NII & NIM walk $1.44$1.44 NII $ in millions; NIM change in bps NII NIM $1.43 $1.43 $1.42 $1.42 3Q24 $1,427 2.90% $1.40 Net market rate impact 3 1 $1.39 $1.39 $1.39 Total net interest income; $ billions Loan balances / mix 10 1 2.97% Securities portfolio / o
Slide 6: Noninterest income
Noninterest income 4Q24 vs. 3Q24 • Adjusted noninterest income1 up $43 million, or 6% $791 $744 $750 $748 $732 • Primary drivers: $711 Total noninterest income; $ millions ‒ Commercial banking revenue (up 17%) primarily reflecting increases in lease syndication and remarketing ‒ Capital market fees
Slide 7: Strategic investments resulting in fee diversification and growth
Strategic investments resulting in fee diversification and growth Fee contribution as a percent of revenue stands out favorably Fee revenue mix is well-diversified relative to peers LTM 4Q24 adjusted noninterest income mix1,2 LTM 4Q24 adjusted noninterest income as a percent of adjusted revenue2, un
Slide 8: Noninterest expense
Noninterest expense Includes $224 due to the FDIC special 4Q24 vs. 3Q24 $1,455 assessment • Adjusted noninterest expense1 down $7 million, or 1% $1,244 $1,225 • Primary drivers: $1,211 $1,226 $1,218 ‒ Compensation and benefits (down 2%) Total noninterest expense; $ millions ‒ Marketing expense (down
Slide 9: 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 $118.9 $116.8 $117.9 $78.9 $78.4 $75.0 $44.6 $45.1 $45.9 QoQ YoY QoQ YoY $21.5 $21.7 $18.3 6.48% +2% +3% 3.25% 3.27%
Slide 10: Deposits and wholesale funding
Deposits and wholesale funding Average deposit balances Average wholesale funding balances $ in billions $ in billions $169.4 $167.2 $167.2 % change % change $5.7 $3.5 $2.5 $164.7 $26.1 QoQ YoY $163.8 $163.7 QoQ YoY $23.4 (28%) (55%) $20.2 3.00% 3.03% 5.39% 5.52% (14%) (23%) 5.23% 2.68% +1% +1% 4Q23
Slide 11: Historical net charge-off and NPA ratios
Historical net charge-off and NPA ratios Net charge-off ratio Non-performing assets ratio2 1.00% 10 year average excluding COVID1 1.00% 10 year average excluding COVID1 4Q24 0.75% 0.75% 0.71% 4Q24 0.46% 0.50% 0.50% 0.25% 0.25% 0.00% 0.00% 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22 4Q23 4Q24 4Q14 4
Slide 12: Credit quality overview
Credit quality overview Key metrics 4Q23 1Q24 2Q24 3Q24 4Q24 NPL ratio 0.55% 0.61% 0.52% 0.59% 0.69% NPA ratio1 0.59% 0.64% 0.55% 0.62% 0.71% 30-89 days past due as a % of portfolio loans and leases 0.31% 0.29% 0.26% 0.24% 0.25% NCO ratio 0.32% 0.38% 0.49% 0.48% 0.46% ACL ratio as a % of portfolio l
Slide 13: Allowance for credit losses
Allowance for credit losses Allocation of allowance by product 4Q24 Change in rate $ in millions % of portfolio Compared to: Allowance for loan & lease losses Amount loans & leases 3Q24 4Q23 ••Drivers $43MMofincrease $43MM in ACL is decrease Commercial and industrial loans $728 1.39% 0.01% (0.05%) i
Slide 14: Strong liquidity and capital position
Strong liquidity and capital position Capital position Common equity tier 1 ratio1 ~35 bps 10.75% ~2 bps 10.51% (~28 bps) (~18 bps) (~15 bps) 3Q24 Net income RWA Share Common Other 4Q24 to common repurchases dividends Liquidity position $ in billions • Maintained full Category 1 LCR compliance durin
Slide 15: Current expectations
Current expectations FY 2025 compared to FY 2024 Avg. loans & leases up 3 – 4% (including HFS) Net interest income1 up 5 – 6% (FY24 baseline: $5.658 billion) assumes 12/31/25 Fed funds rate of 4.0% Noninterest income1 up 3 – 6% (FY24 baseline: $2.973 billion; Excludes securities g/l) Noninterest exp
Slide 16: Current expectations
Current expectations 1Q25 compared to 4Q24 Avg. loans & leases up ~2% (including HFS) Net interest income1 stable (4Q24 baseline: $1.443 billion) assumes 3/31/25 Fed funds rate of 4.25% Noninterest income1 down 7 – 8% (4Q24 baseline: $791 million; down 6 - 7% excluding TRA impact Excludes securities
Slide 17: Appendix
Appendix 17 © Fifth Third Bancorp | All Rights Reserved
Slide 18: Noninterest income and expense reclassification
Noninterest income and expense reclassification Commercial payments revenue Capital markets fees Includes the following captions: Includes the following captions previously in Commercial banking revenue: Treasury management fee equivalent and earnings credits - Financial risk management revenue (com
Slide 19: Total commercial portfolio overview
Total commercial portfolio overview Portfolio loans and leases Key statistics $ in billions Average QoQ change 4Q23 3Q24 4Q24 (2.8%) (1.9%) (0.8%) (0.6%) 0.3% NCO ratio1 0.13% 0.40% 0.32% Period-end QoQ change 30-89 Delinquencies 0.11% 0.07% 0.07% (3.2%) (1.1%) (0.2%) (0.9%) 3.0% 90+ Delinquencies 0
Slide 20: Commercial & industrial overview
Commercial & industrial overview Portfolio loans Key statistics $ in billions Average QoQ change 4Q23 3Q24 4Q24 (4.2%) (2.7%) (1.6%) (1.4%) (0.1%) NCO ratio1 0.20% 0.55% 0.42% Period-end QoQ change 30-89 Delinquencies 0.09% 0.06% 0.05% (4.5%) (2.0%) (0.7%) (1.8%) 2.7% 90+ Delinquencies 0.02% 0.02% 0
Slide 21: High quality Shared National Credit portfolio
High quality Shared National Credit portfolio Shared National Credit portfolio is well diversified $ in billions; as of 12/31/24 • Reduced balances 14% compared to 1Q23 Industry mix SNC $32.2BN • ~60% of SNC balances are at or near portfolio ~27% of total loans investment grade equivalent borrowers;
Slide 22: Commercial real estate overview
Commercial real estate overview Portfolio loans Key statistics $ in billions 4Q23 3Q24 4Q24 Average QoQ change 1.9% — 1.2% 1.2% 0.1% NCO ratio1 (0.07%) 0.00% 0.00% Period-end QoQ change 30-89 Delinquencies 0.09% 0.04% 0.05% 1.2% 1.4% 0.6% 0.6% 2.8% 90+ Delinquencies 0.00% 0.02% 0.00% $17.5 $17.3 $17
Slide 23: CRE portfolio is well-positioned
CRE portfolio is well-positioned Comparing CRE portfolios relative to peers CRE loans1 / total loans CRE loans1 / total capital CRE net charge-off ratio2 As of 9/30/24 unless otherwise noted As of 9/30/24 unless otherwise noted 3Q24 LTM unless otherwise noted Peer 1 13% FITB 3Q24 73% FITB 3Q24 LTM (
Slide 24: Total consumer portfolio overview
Total consumer portfolio overview Portfolio loans Key statistics $ in billions 4Q23 3Q24 4Q24 Average QoQ change NCO ratio1 0.64% 0.62% 0.68% (1.4%) (0.2%) 0.3% 0.8% 1.9% 30-89 Delinquencies 0.63% 0.52% 0.54% Period-end QoQ change 90+ Delinquencies 0.06% 0.06% 0.06% (1.1%) 0.2% 0.5% 1.7% 2.1% Nonper
Slide 25: Residential Mortgage overview
Residential Mortgage overview Portfolio loans Key statistics $ in billions 4Q23 3Q24 4Q24 Average QoQ change NCO ratio1 (0.01%) (0.02%) (0.01%) (1.6%) (0.9%) 0.2% 0.2% 1.7% 30-89 Delinquencies 0.18% 0.16% 0.19% Period-end QoQ change 90+ Delinquencies 0.04% 0.05% 0.03% (1.5%) (0.2%) 0.3% 0.7% 2.2% No
Slide 26: Home equity overview
Home equity overview Portfolio balances Key statistics $ in billions 4Q23 3Q24 4Q24 Average QoQ change NCO ratio1 0.05% (0.02%) (0.01%) 0.2% 0.7% (0.1%) 2.3% 2.7% 30-89 Delinquencies 0.72% 0.56% 0.60% Period-end QoQ change Nonperforming Loans2 1.46% 1.64% 1.67% 0.5% (0.8%) 2.2% 2.6% 2.8% Weighted av
Slide 27: Indirect secured consumer overview
Indirect secured consumer overview Portfolio loans Key statistics $ in billions 4Q23 3Q24 4Q24 Average QoQ change NCO ratio1 0.64% 0.54% 0.66% (4.2%) 0.3% 1.3% 2.0% 2.7% 30-89 Delinquencies 1.00% 0.77% 0.80% Period-end QoQ change Nonperforming Loans2 0.24% 0.31% 0.34% (3.0%) 2.3% 0.9% 3.2% 2.3% Weig
Slide 28: Credit card overview
Credit card overview Portfolio loans Key statistics $ in billions 4Q23 3Q24 4Q24 Average QoQ change NCO ratio1 3.90% 3.74% 4.00% 1.2% (3.1%) (2.5%) (1.2%) (2.3%) 30-89 Delinquencies 1.13% 1.17% 1.04% Period-end QoQ change 90+ Delinquencies 1.13% 1.06% 1.15% 2.6% (6.9%) (0.2%) (1.7%) 1.8% Nonperformi
Slide 29: Solar energy installation overview
Solar energy installation overview Portfolio loans Key statistics $ in billions 4Q23 3Q24 4Q24 Average QoQ change NCO ratio1 1.09% 1.44% 1.64% 11.9% 4.5% 3.2% 1.9% 3.7% 30-89 Delinquencies 0.48% 0.42% 0.48% Period-end QoQ change Nonperforming Loans2 1.61% 1.57% 1.52% 10.2% 3.8% 2.1% 3.2% 3.0% $4.1 $
Slide 30: NPL Rollforward
NPL1 Rollforward Commercial $ in millions 4Q23 1Q24 2Q24 3Q24 4Q24 Balance, beginning of period $281 $326 $372 $274 $334 Transfers to nonaccrual status 93 108 51 191 240 Transfers to accrual status — (1) — — (1) Transfers to held for sale — (3) — (5) (5) Loan paydowns/payoffs (20) (18) (66) (47) (49
Slide 31: Balance sheet positioning
Balance sheet positioning Commercial loans1,2 Consumer loans1 Investment portfolio Long-term debt 3 $24.7BN fixed | $48.6BN variable 1,2 $40.1BN fixed | $6.4BN variable 1 $9.4BN fixed | $5.0BN variable 3 • 55% allocation to bullet/ locked- • 1M based: 42% 4,7 • 1M based: 1% 5,7 out cash flow securit
Slide 32: 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 (3.6%) (4.0%) (6.0%) (7.0%) Rate Risk models assu
Slide 33: Investment portfolio composition
Investment portfolio composition Securities portfolio Investment portfolio characteristics AFS and HTM portfolio; amortized cost basis; as of 12/31/24 Amortized cost basis; as of 12/31/24 Held-to-maturity portfolio • $11.3BN portfolio • Reclassification during 1Q24 aimed to de-risk potential AOCI vo
Slide 34: Securities portfolio AOCI accretion
Securities portfolio AOCI accretion AOCI accretion1 assuming implied forward curve2 $ in billions; 12/31/24 AFS and HTM portfolio unrealized loss, after-tax; Historical AOCI accretion Projected AOCI accretion ($1.4) ($1.8) ($2.3) ~55% ($2.8) capital accretion ($3.3) ($3.3) ($4.0) ($4.0) ~18% ($4.1)
Slide 35: Structure of securities portfolio drives continued AOCI accretion
Structure of securities portfolio drives continued AOCI accretion FITB accumulated other comprehensive loss compared to the 10-Year Treasury yield $ millions on an end of period basis, net of tax; 10-year treasury yield close price • Unrealized losses on Available-for- $5,840 (29%) Sale securities d
Slide 36: Cash flow hedges
Cash flow hedges Receive-fixed swaps1 EOP notional value of cash flow hedges ($ in billions) Forward starting Existing receive-fixed swaps3 receive-fixed swaps2 $15 $14 $5 $11 $5 $10 $3 $9 $8 $5 $5 $5 $10 $9 $8 $5 $5 $4 $3 4Q24 1Q25 1Q30 4Q30 2Q31 3Q31 4Q31 Actual weighted average receive fixed rate
Slide 37: Mortgage banking results
Mortgage banking results Mortgage banking$66 net revenue Mortgage originations and margins $ in millions $57 $ in billions $54 $50 $50 $1.9 $1.9 Origination fees and $1.6 $2 $0.6 $0.6 gains on loan $3 sale $1.1 $0.6 $79 $78 $77 $75 $1.0 Gross $78 Originations HFS servicing $0.2 $0.4 $1.0 fees Origin
Slide 38: Preferred dividend schedule
Preferred dividend schedule Upcoming preferred dividend schedule1 1Q25 2Q25 3Q25 4Q25 $ in millions Series H ~$11 ~$11 ~$11 ~$11 Floating2 Series I ~$9 ~$9 ~$9 ~$9 Floating2 Series J ~$6 ~$6 ~$6 ~$6 Floating2 Series K ~$3 ~$3 ~$3 ~$3 Series L3 ~$4 ~$4 ~$4 ~$8 Class B Series A ~$3 ~$3 ~$3 ~$3 Total ~
Slide 39: 4Q24 adjustments and notable items
4Q24 adjustments and notable items Adjusted EPS of $0.901 4Q24 reported EPS of $0.85 included a negative $0.05 impact from the following notable items: • $55 million pre-tax (~$42 million after-tax2) charge related to interchange litigation matters • $15 million pre-tax (~$12 million after-tax2) cha
Slide 40: Non-GAAP reconciliation
Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries For the Three Months Ended For the Year Ended $ and shares in millions December September June March December (unaudited) 2024 2024 2024 2024 2023 2024 Net income (U.S. GAAP) (a) $620 $573 $601 $520 $530 $2,314 Net income (U.S. GAAP) (annu
Slide 41: Non-GAAP reconciliation
Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries For Three Months Ended For the Year Ended $ and shares in millions December September June March December (unaudited) 2024 2024 2024 2024 2023 2024 Average interest-earning assets (a) $193,513 $195,836 $194,499 $195,349 $198,166 $194,800 N
Slide 42: Earnings presentation 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 40 and 41 of this presentation and the use of non-GAAP measures on pages 27-29 of t
Slide 43: Earnings presentation end notes
Earnings presentation end notes Slide 20 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 44: Earnings presentation end notes
Earnings presentation end notes Slide 31 end notes Note: Data as of 12/31/2024. 1. Excludes HFS Loans & Leases. 2. Fifth Third had $12B of commercial variable loans classified as fixed given the impacts of $11BN in C&I receive-fix swaps and $1BN in CRE receive-fixed swaps (effective 1/3/25); Exclude