Slide 1: Fifth Third Bancorp 4Q23 Earnings Presentation
© Fifth Third Bancorp | All Rights Reserved Ó Fifth Third Bancorp | All Rights Reserved Fifth Third Bancorp 4Q23 Earnings Presentation January 19, 2024 Refer to earnings release dated January 19, 2024 for further information.
Slide 2: Forward-looking statements
© Fifth Third Bancorp | All Rights Reserved 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,
Slide 3: 4Q23 highlights
© Fifth Third Bancorp | All Rights Reserved Reported1 Adjusted1 EPS $0.72 $0.99 ROA 0.98% 1.33% ROE 12.9% 17.9% ROTCE 19.8% 16.8% NIM 2.85% 2.85% Efficiency ratio 67.2% 55.3% PPNR $712MM $978MM CET12 10.29% excl. AOCI For end note descriptions, see end note summary starting on page 42 4Q23 highlight
Slide 4: Reported NII & NIM walk
© Fifth Third Bancorp | All Rights Reserved Excess cash growth $1,582 $1,445 $1,423 3.35% 2.98% 2.85% 4Q22 3Q23 4Q23 NII $ in millions; NIM change in bps 3Q23 to 4Q23 Reported NII & NIM walk T o ta l n et i n te re st i n co m e; $ m il li o n s NII NIM For end note descriptions, see end note summar
Slide 5: Noninterest income
© Fifth Third Bancorp | All Rights Reserved $735 $715 $744 $777 $732 $751 Noninterest income Adjusted noninterest income (excl. securities gains/losses,net)¹ 4Q22 3Q23 4Q23 Noninterest income • Adjusted noninterest income1 up $19 million, or 3% • Primary drivers: ‒ Commercial banking revenue (up 6%)
Slide 6: Noninterest expense
© Fifth Third Bancorp | All Rights Reserved $1,218 $1,188 $1,455 $1,218 $1,188 $1,211 Noninterest expense Adjusted noninterest expense¹ 4Q22 3Q23 4Q23 • Adjusted noninterest expense1 up $23 million, or 2% • Primary drivers: ‒ Compensation and benefits (up 4%) driven by the impact of NQDC mark-to-mar
Slide 7: Loan and interest earning asset balances
© Fifth Third Bancorp | All Rights Reserved QoQ YoY (1%) — (3%) (3%) $121.5 $120.1 $117.2 $76.4 $75.1 $72.7 $45.1 $45.0 $44.5 4Q22 3Q23 4Q23 $0.9 $0.5 $0.3 $1.0 $0.6 $0.4 4Q22 3Q23 4Q23 QoQ YoY (37%) (64%) (46%) (40%) QoQ YoY (1%) (1%) (3%) (5%) Interest earning assets Commercial Average securities1
Slide 8: Deposits and wholesale funding
© Fifth Third Bancorp | All Rights Reserved $160.5 $161.4 $163.7 $163.7 $167.7 $168.9 4Q22 3Q23 4Q23 $161.1 $165.6 $169.4 $157.5 $159.7 $163.8 1.12% 2.76% 3.00% 4Q22 3Q23 4Q23 $23.4 $24.3 $26.1 3.83% 5.24% 5.39% 4Q22 3Q23 4Q23 $22.0 $27.4 $24.6 4Q22 3Q23 4Q23 Deposits and wholesale funding Average w
Slide 9: High-quality deposit franchise
© Fifth Third Bancorp | All Rights Reserved 69% 31% FITB Peer median H8 4Q22 1Q23 2Q23 3Q23 4Q23 High-quality deposit franchise 8 point outperformance vs. large commercial banks Average total deposits indexed to 100; H8, non-seasonally adjusted total deposits Commercial and consumer deposit franchis
Slide 10: Credit quality overview
© Fifth Third Bancorp | All Rights Reserved Net charge-offs (NCOs) $68 $78 $90 $124 $96 4Q22 1Q23 2Q23 3Q23 4Q23 For end note descriptions, see end note summary starting on page 42 Credit quality overview 10 Key metrics 4Q22 1Q23 2Q23 3Q23 4Q23 NPL ratio 0.42% 0.48% 0.52% 0.47% 0.55% NPA ratio1 0.44
Slide 11: Allowance for credit losses
© Fifth Third Bancorp | All Rights Reserved Allowance for loan & lease losses Commercial and industrial loans Commercial mortgage loans Commercial construction loans Commercial leases Total commercial loans and leases Residential mortgage loans Home equity Indirect secured consumer loans Credit card
Slide 12: Strong liquidity and capital position
© Fifth Third Bancorp | All Rights Reserved $(4.4) $(2.4) 03/31/23 12/31/2024E 9.80% ~41 bps ~31 bps (~15 bps) (~11 bps) ~3 bps 10.29% 3Q23 Net income to common RWA Common dividends FDIC special assessment Other 4Q23 12 Strong liquidity and capital position Liquidity position $ in billions Fed Reser
Slide 13: Projected AOCI accretion
© Fifth Third Bancorp | All Rights Reserved ($4.1) ($3.6) ($3.1) ($2.5) ($2.1) ($1.7) $0.5 $1.1 $1.6 $2.0 $2.4 12/31/23 12/31/24E 12/31/25E 12/31/26E 12/31/27E 12/31/28E ($4.1) ($3.3) ($2.8) ($2.3) ($1.8) ($1.4) $0.8 $1.3 $1.8 $2.3 $2.7 12/31/23 12/31/24E 12/31/25E 12/31/26E 12/31/27E 12/31/28E Secu
Slide 14: Current expectations FY 2024 compared to FY 2023
© Fifth Third Bancorp | All Rights Reserved expect $100 – $150MM build Noninterest expense1 up ~1% (FY23 baseline: $4.937BN) Net charge-off ratio 35 – 45 bps Effective tax rate 22 - 23% For end note descriptions, see end note summary starting on page 42 As of January 19, 2024; please see cautionary
Slide 15: Current expectations 1Q24 compared to 4Q23
© Fifth Third Bancorp | All Rights Reserved expect $0 – $25MM build Noninterest expense1 up ~8% (4Q23 baseline: $1.211BN) Net charge-off ratio 35 – 40 bps Effective tax rate 22 - 23% For end note descriptions, see end note summary starting on page 42 As of January 19, 2024; please see cautionary sta
Slide 16: Appendix
© Fifth Third Bancorp | All Rights Reserved Appendix 16
Slide 17: Our purpose, vision, and core values
© Fifth Third Bancorp | All Rights Reserved 17 Our purpose, vision, and core values support our commitment to generating sustainable value for stakeholders 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 o
Slide 18: ESG commitments and community
© Fifth Third Bancorp | All Rights Reserved 18 Addressing climate change Promoting inclusion and diversity Demonstrating our commitment to employees Strengthening our communities Keeping the customer at the center >$193MM in lending, investments, and philanthropy towards Empowering Black Futures Nei
Slide 19: Actions demonstrating leadership
© Fifth Third Bancorp | All Rights Reserved 19 Actions Demonstrating Leadership Third-party recognitions Published 2022 Sustainability report Available on ir.53.com Announced 10-year $100BN Environmental & Social Finance Target Expansion of the original $8BN renewable energy goal achieved in June 20
Slide 20: Holding company liquidity and debt maturities
© Fifth Third Bancorp | All Rights Reserved • Holding company: ‒ Holding Company cash as of December 31, 2023: $6.3BN ‒ Cash on hand at Holding Company currently sufficient to satisfy all fixed obligations for ~33 months (debt maturities, common and preferred dividends, interest, and other expenses)
Slide 21: Balance sheet positioning
© Fifth Third Bancorp | All Rights Reserved 72% 16% 8% 4% • 61% allocation to bullet/ locked- out cash flow securities • AFS yield: 3.08% 4 • Effective duration of 4.81 5 • Net unrealized pre-tax loss: $5.4BN • 98% AFS 9 $20.6BN fixed | $52.2BN variable 1,2 Commercial loans1,2 Balance sheet position
Slide 22: Non-owner occupied CRE and office portfolio
© Fifth Third Bancorp | All Rights Reserved As of 12/31/23 Non-owner occupied CRE represents <10% of total loans 22 Office CRE portfolio stats $ billions $ balance % of total loans LTM NCO % NPLs / loans Multifamily $3.3 2.8% 0.00% 0.00% Hospitality 1.5 1.3 0.00 0.00 Retail 1.3 1.1 0.00 0.00 Office
Slide 23: Shared National Credits and leveraged lending
© Fifth Third Bancorp | All Rights Reserved • Reduced balances 4% compared to 1Q23 • Industry concentration is well diversified • 0.00% early stage delinquency ratio $32.9 $2.5 $2.0 Shared National Credits portfolio Leveraged lending portfolio Both SNC & leveraged lending 23 Continued strong credit
Slide 24: Investment portfolio composition
© Fifth Third Bancorp | All Rights Reserved 24 Investment portfolio composition Total securities portfolio CMBS portfolio is AAA-rated Total securities portfolio $56B ~28% of interest earning assets Agency CMBS • $29BN portfolio • ~86% in Fannie/Freddie deals risk weighted at 20% and remaining ~14%
Slide 25: Managing rate risk against conservative outcomes
© Fifth Third Bancorp | All Rights Reserved Managing rate risk against conservative outcomes Estimated NII sensitivity profile and ALCO policy limits Estimated NII sensitivity at specific betas2 Rate Risk models assume ~75% effective up betas and ~65% down betas in our baseline NII sensitivity used
Slide 26: Cash flow hedges
© Fifth Third Bancorp | All Rights Reserved $8 $8 $7 $6 $6 $5 4 $1 $2 $5 $10 $10 $10 $9 $8 $5 $3 $3 $3 $3 $11 $11 $11 $11 $11 $15 $14 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 1Q30 4Q30 2Q31 3Q31 4Q31 Terminated $4BN of CRE cash flow hedges in 4Q23 Cash flow hedges ($3BN @ 2.25% 1- month LIBOR strike)2 Floors a
Slide 27: Mortgage banking results
© Fifth Third Bancorp | All Rights Reserved $1.9 $1.1 $1.2 $1.2 $0.8 $0.4 $0.3 $0.5 $0.3 $0.2 $2.3 $1.4 $1.7 $1.5 $1.0 Originations HFS Originations HFI 4Q22 1Q23 2Q23 3Q23 4Q23 $18 $18 $22 $19 $20 $79 $83 $80 $79 $79 $3 $2 ($3) ($2) $2 ($37) ($34) ($40) ($39) ($35) $63 $69 $59 $57 $66 Origination f
Slide 28: Future TRA payment schedule
© Fifth Third Bancorp | All Rights Reserved Estimated potential GAAP noninterest income recognition1,2 $ in millions; pre-tax For end note descriptions, see end note summary starting on page 42 Future TRA payment schedule 28 $22 $10 4Q23 4Q24 Actual
Slide 29: Preferred dividend schedule
© Fifth Third Bancorp | All Rights Reserved Preferred dividend schedule 1Q24 2Q24 3Q24 4Q24 Series H ~$13 ~$12 ~$12 ~$11 Series I ~$11 ~$10 ~$10 ~$9 Series J ~$7 ~$6 ~$6 ~$6 Series K ~$3 ~$3 ~$3 ~$3 Series L ~$4 ~$4 ~$4 ~$4 Class B Series A ~$3 ~$3 ~$3 ~$3 Total ~$40 ~$39 ~$38 ~$36 Upcoming preferre
Slide 30: Total commercial portfolio overview
© Fifth Third Bancorp | All Rights Reserved $76.8 $77.4 $77.7 $76.4 $74.2 $76.4 $77.2 $76.4 $75.1 $72.7 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 3Q23 4Q23 NCO ratio1 0.13% 0.34% 0.13% 30-89 Delinquencies 0.14% 0.10% 0.11% 90+ Delinquencies 0.02% 0.00% 0.01% Nonperforming Loans2 0.34% 0.37% 0.45% 30 Portfolio l
Slide 31: Commercial & industrial overview
© Fifth Third Bancorp | All Rights Reserved $57.6 $58.1 $58.1 $57.0 $54.6 $57.2 $57.7 $56.9 $55.8 $53.3 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 3Q23 4Q23 NCO ratio1 0.14% 0.45% 0.20% 30-89 Delinquencies 0.14% 0.08% 0.09% 90+ Delinquencies 0.02% 0.01% 0.02% Nonperforming Loans2 0.38% 0.47% 0.57% 31 Portfolio l
Slide 32: Commercial real estate overview
© Fifth Third Bancorp | All Rights Reserved 54%46% 38% 17% 12% 7% 7% 3% 16% 4Q22 3Q23 4Q23 NCO ratio1 0.00% 0.00% (0.07%) 30-89 Delinquencies 0.16% 0.04% 0.09% 90+ Delinquencies 0.00% 0.00% 0.00% Nonperforming Loans2 0.29% 0.11% 0.12% Commercial real estate overview Commercial mortgage Commercial co
Slide 33: Total consumer portfolio overview
© Fifth Third Bancorp | All Rights Reserved 17% 17% 64% 4Q22 3Q23 4Q23 NCO ratio1 0.38% 0.53% 0.64% 30-89 Delinquencies 0.57% 0.54% 0.63% 90+ Delinquencies 0.06% 0.06% 0.06% Nonperforming Loans2 0.56% 0.64% 0.73% Weighted average FICO at origination3 765 765 765 Weighted average LTV at origination 7
Slide 34: Residential mortgage overview
© Fifth Third Bancorp | All Rights Reserved 13% 15% 69% 4Q22 3Q23 4Q23 NCO ratio1 0.01% 0.00% (0.01%) 30-89 Delinquencies 0.17% 0.12% 0.18% 90+ Delinquencies 0.04% 0.03% 0.04% Nonperforming Loans2 0.70% 0.73% 0.73% Weighted average FICO at origination3 765 764 764 Weighted average LTV at origination
Slide 35: Home equity overview
© Fifth Third Bancorp | All Rights Reserved 18% 16% 64% $4.0 $4.0 $3.9 $3.9 $3.9 $4.0 $4.0 $3.9 $3.9 $3.9 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 3Q23 4Q23 NCO ratio1 0.02% 0.03% 0.05% 30-89 Delinquencies 0.74% 0.72% 0.72% 90+ Delinquencies 0.02% 0.00% 0.00% Nonperforming Loans2 1.66% 1.49% 1.46% Weighted ave
Slide 36: Indirect secured consumer overview
© Fifth Third Bancorp | All Rights Reserved 4Q22 3Q23 4Q23 NCO ratio1 0.32% 0.47% 0.64% 30-89 Delinquencies 0.86% 0.89% 1.00% 90+ Delinquencies 0.00% 0.00% 0.00% Nonperforming Loans2 0.18% 0.20% 0.24% 79% 21% Auto Specialty lending 21% 17% 61% Indirect secured consumer overview 36 Portfolio FICO sco
Slide 37: Credit card overview
© Fifth Third Bancorp | All Rights Reserved 4Q22 3Q23 4Q23 NCO ratio1 2.85% 3.25% 3.90% 30-89 Delinquencies 1.12% 1.16% 1.13% 90+ Delinquencies 0.96% 1.10% 1.13% Nonperforming Loans2 1.44% 1.76% 1.82% 27% 20% 49% Credit card overview 37 Portfolio FICO score at origination3 750+720-749<660 660-719 $
Slide 38: NPL rollforward
© Fifth Third Bancorp | All Rights Reserved 4Q22 1Q23 2Q23 3Q23 4Q23 Balance, beginning of period $298 $263 $334 $345 $281 Transfers to nonaccrual status 68 121 185 53 93 Transfers to accrual status (5) (1) (58) — — Transfers to held for sale — — (4) (6) — Loan paydowns/payoffs (63) (22) (77) (39) (
Slide 39: 4Q23 notable items
© Fifth Third Bancorp | All Rights Reserved 4Q23 reported EPS of $0.72 included a negative $0.27 impact from the following notable items: • $224 million pre-tax (~$172 million after-tax2) charge related to the FDIC special assessment • $22 million pre-tax (~$17 million after-tax2) charge related to
Slide 40: Non-GAAP reconciliation
© Fifth Third Bancorp | All Rights Reserved For end note descriptions, see end note summary starting on page 42; totals shown above may not foot due to rounding 40 Fifth Third Bancorp and Subsidaries For the Three Months Ended For the Year Ended $ and shares in millions December September June March
Slide 41: Non-GAAP reconciliation
© Fifth Third Bancorp | All Rights Reserved Non-GAAP reconciliation For end note descriptions, see end note summary starting on page 42; totals shown above may not foot due to rounding 41 Fifth Third Bancorp and Subsidiaries For Three Months Ended For the Year Ended $ and shares in millions December
Slide 42: Slide end notes
© Fifth Third Bancorp | All Rights Reserved 42 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 p
Slide 43: Slide end notes
© Fifth Third Bancorp | All Rights Reserved Earnings presentation end notes 43 Slide 18 end notes Data is for fiscal year 2022, unless otherwise noted. 1. Data is through 12/31/2023 2. Three-year $2.8BN commitment to Accelerate Racial Equity, Equality and Inclusion initiative timeframe is from 1/1/2
Slide 44: Slide end notes
© Fifth Third Bancorp | All Rights Reserved Slide 28 end notes 1. Assumes FIS will have sufficient taxable income to utilize TRA related deductions and have a marginal tax rate of 25%. 2. Represents forward looking statement, please refer to page 2 of this presentation regarding forward-looking non-
Slide 45: Slide end notes
© Fifth Third Bancorp | All Rights Reserved Slide 37 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. FICO distributions at origination e