Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Barclays Global Financial Services Conference 2013
20 slides from Fifth Third Bancorp's conference presentation, Sep 10, 2013
Slide 1: Barclays Global Financial Services Conference
Exhibit 99.1 Barclays Global Financial Services Conference Kevin T. Kabat Vice Chairman & Chief Executive Officer September 10, 2013 Please refer to earnings release dated July 18, 2013 and 10-Q dated August 7, 2013 for further information © Fifth Third Bank | All Rights Reserved
Slide 2: A strong franchise delivering value
A strong franchise delivering value • Commitment to improving Diluted franchise value earnings per share vs 2Q12 +19% • Maintain balanced view of Return on managing expenses and making investments for the long term Average Assets 1.26% • Orient business around strong Return on employee engagement an
Slide 3: Strong core businesses driving quality, consistent earnings
Strong core businesses driving quality, consistent earnings Coml bank net income Avg Bancorp coml loans ($MM) ($MM) - HFI • Expertise in treasury management, capital markets, and specialized verticals combined with leverage of affiliate operating model Commercial bank Assets under mgmt Retail broker
Slide 4: Commercial Bank – Executing on key strategies
Commercial Bank – Executing on key strategies Industry Specialization Treasury Segment Management Specialization Capabilities Healthcare • Full suite of products Currency Processing designed to meet full Mid-Corporate Solutions range of healthcare • Target clients: clients’ needs • Innovative cash b
Slide 5: Corporate banking business generating growth
Corporate banking business generating growth Corporate banking Commercial deposit fees C&I Portfolio^ ($B) revenue ($MM) % growth* $39 $110 8% +7% $37 $105 7% 6% $35 $100 +5% 5% $33 $95 4% $31 37.6 $90 106 36.4 102 3% 99 $29 $85 +2% 32.7 2% $27 $80 1% $25 $75 0% 2Q12 1Q13 2Q13 2Q12 1Q13 2Q13 1H11 1H
Slide 6: Repositioning consumer bank with investments and strategic changes
Repositioning consumer bank with investments and strategic changes Provide Differentiated Customer Experience Improve share of wallet and household penetration • Affiliate model provides • Product bundles to build full localized, high touch service relationship • Integrated systems to facilitate • I
Slide 7: Repositioning consumer bank with investments and strategic changes
Repositioning consumer bank with investments and strategic changes Consumer deposit activity Alternative channel delivery Transaction volume by channel % of checking households with 5% Mobile Online banking Mobile banking ATM 50% 19% 18% 47% Branch 9% 77% 2009 2Q13 2011 2Q13 Enhanced distribution ca
Slide 8: Strong revenue and profit generation
Strong revenue and profit generation 2Q13 PPNR* / Average Assets 2Q13 returns strong relative to peers Significant purchase accounting benefit ROAA ROATCE 2.1% 21.1% 1.94% Peer med. 1.7% 1.35% 14.7% 1.08% 12.3% As reported Adjusted^ Fee income as % of 2Q13 revenue^^ • Business mix provides higher th
Slide 9: Adaptive and responsive to near-term concerns
Adaptive and responsive to near-term concerns Mortgage environment Fifth Third’s position • Increase in mortgage rates • Actively managing variable expense in line with revenue expectations • Waning refinance boom • Increased percentage of purchase volumes • Competitive pressure on industry margins
Slide 10: Disciplined expense management
Disciplined expense management Expense trend ($MM) Efficiency ratio trend $1,200 65% 64% 62% 62% $1,100 60% 59% 61% 60% 60% $1,000 53% $900 $800 $700 2Q12 3Q12 4Q12 1Q13 2Q13 $600 2Q12 3Q12 4Q12 1Q13 2Q13 Efficiency Ratio Adjusted* Reported expense $937 $1,006 $1,163 $978 $1,035 • Long-term target f
Slide 11: Strong capital position and capital generation support ability to return capital to shareholders
Strong capital position and capital generation support ability to return capital to shareholders ~$1.2 billion in capital returned 2Q13 Tier 1 common / RWA to common shareholders 10.0% 9.4 10.0% 7.0% (2019 (5 quarters through 3/31/13) 9.1 Basel III 8.0% 8.0% buffered $1,200 6.0% 5.0% 6.0% minimum) (
Slide 12: Investment thesis
Investment thesis Strong profitability approaching target range for normalized environment • Industry leader in earnings • Problem assets at very • Capital levels solid power with strong returns low levels and strong despite increased and efficient businesses reserve coverage payouts to shareholders
Slide 13: Cautionary statement
Cautionary statement This report contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 pr
Slide 14: Appendix
Appendix © Fifth Third Bank | All Rights Reserved
Slide 15: Pre-tax pre-provision earnings*
Pre-tax pre-provision earnings* PPNR trend PPNR reconciliation ($ in millions) 2Q12 3Q12 4Q12 1Q13 2Q13 Income before income taxes (U.S. GAAP) (a) $565 $503 $540 $591 $841 Add: Provision expense (U.S. GAAP) (b) 71 65 76 62 64 PPNR (a) + (b) $636 $568 $616 $653 $905 Adjustments to remove (benefit) /
Slide 16: Consistent loan growth & strengthened deposit profile
Consistent loan growth & strengthened deposit profile Loan balances ($B) Average deposit balances ($B) $87.0 $85.5 $82.0 $82.4 $85.9 $86.7 $80.2 $80.9 $81.7 $82.6 $82.9 $83.9 $77.6 $77.5 2Q12 3Q12 4Q12 1Q13 2Q13 2Q12 3Q12 4Q12 1Q13 2Q13 Transaction deposits Other time deposits EOP loans HFI Avg loan
Slide 17: Strong credit position
Strong credit position Net charge-off ratio NPLs / Loans Peer average: 0.5% Peer average: 1.4% Reserves / Loans Reserves / NPLs Peer average: 1.8% Peer average: 156% Continued decline in problem assets and corresponding decline in charge-offs combined with strong reserves on an absolute and relative
Slide 18: Capital management philosophy
Capital management philosophy Capital Retention / Deployment Capital Return Organic growth opportunities Dividends* • Support growth of core banking franchise • As previously indicated, target levels more • Continued loan growth despite sluggish consistent with Fed’s near-term payout ratio economy g
Slide 19: 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 June March December September June 2013 2013 2012 2012 2012 Income before income taxes (U.S. GAAP) $841 $591 $540 $503 $565 Ad
Slide 20: 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 June March December September June 2013 2013 2012 2012 2012 Total Bancorp shareholders' equity (U.S. GAAP) $14,239 $13,882 $13
Fifth Third Bancorp — Barclays Global Financial Services Conference 2013 on 6ix