Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Citi 2010 Financial Services Conference
21 slides from Fifth Third Bancorp's conference presentation, Mar 11, 2010
Slide 1: Citi 2010 Financial Services Conference
Exhibit 99.1 Citi 2010 Financial Services Conference Kevin T. Kabat Chairman, President & Chief Executive Officer March 11, 2010 Please refer to earnings release dated January 21, 2010 and 10-K dated February 26, 2010 for further information, including full results reported on a U.S. GAAP basis © Fi
Slide 2: 4Q09 in review
4Q09 in review Continued core business momentum • Net loss of $98 million vs. 3Q09 net loss of $97 million (3Q included Visa benefit of $206 million after-tax) – Pre-tax net loss of $210 million, vs. 3Q09 pre-tax $420 million loss excluding Visa benefit – Currently expect further improvement in 1Q10
Slide 3: Net interest income and net interest margin trends
Core 4.0% $816 3.15% $900 •Net – Reported 3.55% NIM FITB Yields 6.0% 4Q08 400 Spread Peers Source: * 4Q09 ©Fifth 3 Trends Expect Approximately NIM Core interest 300 NII NIM $746 $800 3.5% 5.0% include: Peer 1Q09 respectively. and 2.92% 3.47% Third results up (right SNL 200 in continued and NIM 12 gr
Slide 4: Liability spreads and funding costs
Liability Transaction 80% 76% ZION 4Q09 2.0% 1.53% Peer MI C&I 7.0% 1Q08 •Spread – Cost excluded © 4 Strong, Continued Low C&I Fifth KEY average Spread 75% 64% of 1.5% 6.0% Cost 2Q08 MTB spreads 1.50% reliance C&I Funds Third mix HBAN deposit from 70% 62% of 1.0% 5.0% Deposits 3Q08 pricing Yield to
Slide 5: Balance sheet: continued core deposit growth
Balance Continued 86 33 53 Commercial 64 +11% 15 21 28 Demand/IBT Average 40 (44%) 13 14 4Q08 LT Extended •– ©Fifth 5 CRE C&I Strong Core Everyday Reduced Portion Reduced New DDAs Commercial Retail Non-core Short Long-term 84 34 50 67 16 21 30 35 13 10 12 debt 1Q09 82 33 49 69 16 21 32 31 811 12 loa
Slide 6: Deposit share momentum
Deposit share momentum Affiliate 5/3 Deposit (08-09) 5/3 Market Share Name Deposit ($) (%) Share 2009 2008 • Continued focus on customer satisfaction Chicago 788,601 9.8% 4.0% 3.8% and building full Northeastern Ohio 606,708 17.0% 4.2% 3.8% relationships has South Florida 579,342 21.1% 3.1% 2.8% giv
Slide 7: Fee income and expenses – core trends
Fee income and expenses – core trends* Core fee income ($M) • Strong mortgage banking results continued in 4Q09, resulting in $4.4B of originations and $132M in net revenue $700 • Investment advisory revenue up 4% from the previous $600 quarter driven by higher market values $500 • Card and processi
Slide 8: Pre-tax pre-provision earnings vs. peers
Pre-tax 106 $0 $100 $200 $300 $400 $500 $600 $700 22 450 4Q08 Noninterest Fee 4Q09 Core /Credit Peer 4.8% 3.3% Fifth MI STI KEY CMA RF ZION HBAN MTB FITB BBT PNC USB WFC Source: appropriate. © 8Average Fifth 3Income 87 483 8average: Third’s PPNR 4.7% 1Q09 core adjusted 45 46 pre-provision Third sale
Slide 9: Portfolio performance drivers
Portfolio performance drivers No participation in exotic mortgages Performance largely driven by • Subprime Geography • Option ARMs • Florida and Michigan most stressed • Remaining Midwest and Southeast performance reflect economic trends Discontinued or suspended lending 4Q09 NCO Ratios Coml Cons T
Slide 10: Troubled debt restructurings and mortgage performance
Troubled Successive Other Total Included TDR Volume 1Q08 Third’s performance charge-offs vintage 2Q08 3Q08 4Q08 1Q09 2Q09 Months mortgage in debt 4TDR Outperforming Mortgage Fannie Fifth 3 0% 10% 20% 30% 40% 50% 60% 70% 6 Third $69M $135M $146M $176M $221M $257M 9 months 12 Source: Fifth 10 Mae sinc
Slide 11: Manageable CRE exposure
Manageable 34% 44% MI 632% Peer 500% MTB CRE Source: ©Fifth 11 MTB average: 30% 41% /MI exposure RF 420% 316% Assets TCE Loans (TCE Third SNL ZION RF MI 25% 38%commercial 419% 304% +ZION CMA and Bank 19% 27% 309% 229% Reserves) lower 24% 33% RF company 148% 249% |ZION CMA All 23% 32% than Rights rea
Slide 12: NPA and net charge-off trends vs. peers
NPA34% 4Q09 3Q09 2Q09 1Q09 4Q08 3Q08 2Q08 1Q08 4Q07 3Q07 0.5% 1.5% 2.5% 3.5% 4.5% 27% HBAN Net 3.2% 1.4% 2008 Year-over-year Peer 5% FITB Source: ©Fifth 12 charge-off Average average: 31% ratio 2009 3.2% 2.5% MTB credit Third CMA SNL 46% 36% versus RF results and Bank MI 100% 122% 49% ratio NPA NCO
Slide 13: Strong industry-leading reserve position
Strong Industry $2,500 4Q08 Reserves 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Peer Coverage 127% Reserves/NPLs FITB Source: ©Fifth 13 WFC FITB KEY HBAN ZION RF MI PNC STI BBT USB CMA MTB Average Peer 1Q09 3.36% 3.43% 90% 2.74% reserve Third $2,000 3.22% 4.31% SNL 3.13% 4.88% leading 3.81% 2.51% 2.
Slide 14: Updated stress testing - process overview
Updated stress testing - process overview Similar process to that used in 2008 and SCAP processes; updated for actual performance and current economic expectations Base and Stress case scenarios key economic assumptions (Moody’s Economy.com “Base” and “Longer Recession and Weaker Recovery Case”) Bas
Slide 15: Updated credit loss expectations vs. SCAP scenarios
Updated credit loss expectations vs. SCAP scenarios Fifth Third’s realized credit losses have been significantly below its SCAP submitted baseline and more adverse scenarios – In SCAP submissions, we incorporated significant conservatism, given then- prevailing negative economic and industry trends
Slide 16: Strong capital position
Strong capital position Tier 1 common ratio Tangible common equity ratio Peer average: 6.2% Peer average: 7.1% Tier 1 capital ratio (with and without TARP) (TCE + reserves) / Loans 13.3% 13.0% 12.8% Peer average w/ 12.5% 12.0% TARP: 11.2% 11.5% 11.5% 11.1% 10.5% Peer average: 12.0% 8.6% Peer average
Slide 17: Strong liquidity profile
Strong $5, Fifth Bank $800 0 2010 Holding – — on Heavily Long Equity Demand Other Interest ST Non-core Consumer Foreign Savings Retail Institutional 2/11/10 FHLB © 170Fifth ~$35M ~$170M $0 ~$39M ~$205M ~$221M dividends Borrowings 0018 Third $750 $500 2011 Term unsecured debt liabilities Brokered bor
Slide 18: Peer performance summary
Peer performance summary Large bank Midwest FITB SEQ performance peers (1) peers (2) 4Q09 vs. peers 4Q09 4Q09 Net interest margin / (bps) 3.55% (+12) 3.47% (+11) 3.19% (+16) Outperformed Operating fee growth^ 4% -1% 2% Outperformed Core pre-tax pre-provision earnings^ / loans 2.9% 2.7% 2.3% Outperfo
Slide 19: 2010 developments
2010 developments Macro themes Fifth Third response • Sluggish loan demand • Leverage existing customer relationships at the local level to offer our full portfolio of products and services across all of our lines of business • Deposits to grow but expect some diminution as later liquidity drawn • I
Slide 20: Summary
Summary Aggressive management of Core franchise remains strong Robust capital levels credit issues • Dedicated to serving the needs • Strong reserve coverage of • Successfully completed June of families and businesses for problem loans 2008 capital plan and SCAP more than 150 years capital actions •
Slide 21: Cautionary statement
Cautionary statement This report may contain statements that we believe are “forward-lookingstatements” 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
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