Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — RBC Capital Markets Global Financials Conference 2021
17 slides from Fifth Third Bancorp's conference presentation, Mar 10, 2021
Slide 1: RBC Capital Markets Global Financials Conference 2021
1 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved RBC Capital Markets Global Financials Conference 2021 Greg D. Carmichael Chairman & Chief Executive Officer March 10, 2021
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
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
Slide 4: Committed to generating sustainable value
4 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved Committed to generating sustainable value Environmental, Social, and Governance (ESG) actions and impact Actions Impact $35.5BN Community commitment delivered1 $18 Minimum wage per hour (since 2019) $2.8BN commitment To accele
Slide 5: Strong regional banking footprint well positioned in high growth markets
5 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved 17.2% 5.9% 20-Apr 20-Dec 14.6% 6.7% 20-Apr 20-Dec 6.7% 5.6% USA SE of F 3.1% 6.1% USA SE of F 10.0% 11.8% USA SE of F Strong regional banking footprint well positioned in high growth markets FITB markets with a top 3 deposit s
Slide 6: Continually improving the digital experience and deepening relationships
6 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved 5.3% 1.8% 2.4% 0.5% Southeast FITB Midwest FITB Total FITB U.S. Average Continually improving the digital experience and deepening relationships Fifth Third checking household growth Checking Savings Card Unsecured loans Indir
Slide 7: Securities portfolio continues to provide differentiated performance
7 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved Peer 6 Peer 8 Peer 2 Peer 5 Peer 4 Peer 3 Peer 7 Peer 9 (40%) (35%) (30%) (25%) (20%) (15%) (10%) (5%) 0% (30%) (20%) (10%) 0% 10% 20% Securities portfolio continues to provide differentiated performance 58% 45% 39% 34% 34% 33
Slide 8: Well positioned to benefit from higher rates
8 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved Well positioned to benefit from higher rates Record deposit growth combined with stable securities and loan balances has led to significant cash position… +$15 $0 +$5 +$10$ b ill io n s Deposit Betas 70% 38% 30% 20% P o te n t
Slide 9: Robust capital levels well above current targets reflect strong earnings power
9 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved Robust capital levels well above current targets reflect strong earnings power Under the current 12-month net income look back test: Assuming the SCB framework is in effect: • Fifth Third has $1BN+ of 2021 repurchase capacity,
Slide 10: Fifth Third value proposition
10 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
Slide 11: Appendix
11 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved Appendix
Slide 12: Customer trends in the current environment
12 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved 5% 14% 34% 45% Financial Elite Mass Affluent Mass Market Lower Market $3,581 $3,779 $2,454 $1,317 Financial Elite Mass Affluent Mass Market Lower Market Customer trends in the current environment Deposits remain elevated vs.
Slide 13: Delivering a better commercial client experience and growing revenues
13 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved Delivering a better commercial client experience and growing revenues Completed acquisition of H2C Greenwich 2020 middle market customer experience winner Augment industry verticals Deepen relationships with enhanced Trea
Slide 14: Paycheck Protection Program update
14 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved Paycheck Protection Program update1 PPP loan balance assumptions ($ billions; Average Balance) 1Q21 2Q21 3Q21 4Q21 Wave 1 & 2 Wave 3 Total 3Q20 4Q20 $5.2 $5.1 $4.4 $3.2 $1.3 $0.4 - - $0.8 $1.6 $1.7 $1.6 $5.2 $5.1 $5.2 $4.8 $3
Slide 15: Cash flow hedges provide long-term NII protection
15 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved $8 $8 $8 $8 $8 $8 $8 $8 $8 $7 $7 $7 $3 $3 $2 $1 $1 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $11 $11 $11 $11 $11 $11 $11 $11 $11 $10 $10 $10 $6 $6 $5 $4 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1
Slide 16: Additional opportunities to reduce funding costs as debt and CDs mature
16 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved Additional opportunities to reduce funding costs as long-term debt and CDs mature Long-term debt and CD maturities present additional opportunities to reduce interest expense in 2021 and beyond $ in millions; rates disclosed
Slide 17: Disciplined credit risk management and proactive monitoring
17 Classification: Internal Use Fifth Third Banc rp | All Rights Reserved Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 10 Peer 9 0% 1% 2% 3% 4% 5% 6% 7% 8% 65% 95% 125% 155% 185% 215% 245% 275% 10.3% 9.8% 10.8% 10.3% 10.3% 9.0% 10.0% 10.0% 9.7% 9.9% 9.7% 1.8% 2.1% 1.4% 2.2% 1.5% 2.2
Fifth Third Bancorp — RBC Capital Markets Global Financials Conference 2021 on 6ix