Slide 1: 4Q11 Earnings Conference Call
Exhibit 99.2 4Q11 Earnings Conference Call January 20, 2012 Please refer to earnings release dated January 20, 2012 for further information. Fifth Third Bank | All Rights Reserved
Slide 2: Cautionary statement
Cautionary statement 2 Fifth Third Bank | All Rights Reserved
Slide 3: 4Q11 in review
4Q11 in review Continued strong operating results • Net income available to common shareholders of $305mm, or $0.33 per diluted share • 1.1% ROA; 12% ROTCE^ • Pre-provision net revenue^ of $473mm, down 23% sequentially • Average and end of period loans and leases* up 2% sequentially; average transac
Slide 4: Financial summary
Financial summary Actual Seq. YOY ($ in millions) 4Q10 3Q11 4Q11 $ % $ % Average Balances Commercial loans* $42,808 $43,879 $44,636 $757 2% $1,828 4% Consumer loans* 33,428 34,741 35,278 537 2% 1,850 6% Total loans & leases* $76,236 $78,620 $79,914 $1,294 2% $3,678 5% Core deposits $76,454 $78,222 $
Slide 5: Net interest income
Net interest income NII and NIM (FTE) • Sequential net interest income trends reflected growth in C&I, residential mortgage, auto, and bankcard loan balances, which more than offset lower yields on loans and lower reinvestment rates on securities reflecting the current interest rate environment – NI
Slide 6: Balance sheet
Balance sheet • C&I loans up 4% sequentially and 13% from 4Q10 • CRE loans down 3% sequentially and 13% from 4Q10 • Consumer loans up 2% sequentially and 6% from 4Q10 • Warehoused residential mortgage loans held-for-sale were $2.2B in 4Q11 versus $1.2B in 3Q11 • Core deposit to loan ratio of 101%, u
Slide 7: Noninterest income
Noninterest income Noninterest income Actual Seq. YOY 4Q10 3Q11 4Q11 $ % $ % ($ in millions) Service charges on deposits $140 $134 $136 $2 1% ($4) (3%) Corporate banking revenue 103 87 82 (5) (5%) (21) (20%) Mortgage banking net revenue 149 178 156 (22) (12%) 7 5% Investment advisory revenue 93 92 9
Slide 8: Noninterest expense
Noninterest expense Noninterest expense Actual Seq. YOY 4Q10 3Q11 4Q11 $ % $ % ($ in millions) Salaries, wages and incentives $385 $369 $393 $24 7% $8 2% Employee benefits 73 70 84 14 21% 11 16% Net occupancy expense 76 75 79 4 5% 3 4% Technology and communications 52 48 48 - - (4) (8%) Equipment ex
Slide 9: Pre-tax pre-provision earnings
Pre-tax pre-provision earnings* PPNR trend PPNR reconciliation ($ in millions) 4Q10 1Q11 2Q11 3Q11 4Q11 $800 Income before income taxes (U.S. GAAP) (a) $417 $377 $506 $530 $418 $700 Add: Provision expense (U.S. GAAP) (b) 166 168 113 87 55 45 PPNR (a) + (b) $583 $545 $619 $617 $473 52 36 25 44 $600 3
Slide 10: Strong capital position
Strong capital position Strong capital ratios under Basel I; estimated Basel III Tier 1 common ratio of 9.7%*
Slide 11: Net charge-offs
Net charge-offs Net charge-offs ($mm) Net charge-offs by loan type $mm % Commercial $113 47% Consumer $126 53% Total $239 100% Actual Seq. YOY ($ in millions) 4Q10 3Q11 4Q11 $ % $ % C&I $85 $55 $62 $7 13% ($23) (27%) Net charge-offs by geography Commercial mortgage 80 47 47 - - (33) (41%) $mm % Comm
Slide 12: Nonperforming assets
Nonperforming assets • NPAs of $1.8B excluding held-for-sale down 16% year-over-year • Commercial NPAs of $1.3B, down 15% from the previous year – Homebuilder / developer NPAs of $155mm; represent 12% of total commercial NPAs • Consumer NPAs of $478mm, down 20% from the previous year Nonperforming a
Slide 13: NPL Rollforward
NPL Rollforward NPL HFI Rollforward Commercial 4Q10 1Q11 2Q11 3Q11 4Q11 Beginning NPL Amount 1,261 1,214 1,211 1,253 1,155 Transfers to nonperforming 269 329 340 217 190 Transfers to performing (2) (2) (10) (11) - Transfers to performing (restructured) - - - (1) - Transfers from held for sale - - -
Slide 14: Troubled debt restructurings overview
Troubled debt restructurings overview Successive improvement in vintage performance during TDR performance has improved in newer vintages 2008 and 2009 as volume of modification increased Mortgage TDR 60+ redefault trend by vintage* Fifth Third’s mortgage portfolio TDRs have redefaulted Volume by at
Slide 15: Strong relative credit trends
Strong relative credit trends FITB credit metrics are in line with or better than peers Peer average includes: BBT, CMA, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC, and ZION Source: SNL Financial and company filings. All ratios exclude loans held-for-sale and covered assets for peers where appropriate.
Slide 16: Strong reserve position
Strong reserve position 4Q11 coverage ratios strong relative to peers (3Q11) Peer average includes: BBT, CMA, HBAN, KEY, MTB, PNC, RF,STI, USB, WFC, and ZION Source: SNL and company reports. NPAs / NPLs exclude held-for-sale portion for all banks as well as covered assets for BBT, USB, and ZION 16 F
Slide 17: Mortgage repurchase overview
Mortgage repurchase overview 22% drop in 4Q11 outstanding claims balance from prior quarter Repurchase Reserves* ($ in millions) — Increase in file requests by GSEs on current (performing) loans 4Q10 1Q11 2Q11 3Q11 4Q11 Virtually all sold loans and the majority of new claims relate to agencies Begin
Slide 18: European Exposure
European Exposure • International exposure primarily related to trade finance and financing activities of U.S. companies with foreign parent or overseas activities of U.S. customers • No European sovereign exposure (total international sovereign exposure $3mm) • Total exposure to European financial
Slide 19: Traditional banking focus consistent with direction of financial reform
Traditional banking focus consistent with direction of financial reform • Fifth Third’s business model is driven by traditional banking activities, consistent with direction of financial reform Dodd-Frank / • Do not require substantial changes to Fifth Third’s business model or asset mix with Basel
Slide 20: Appendix
Appendix 20 Fifth Third Bank | All Rights Reserved
Slide 21: Well-positioned for the future
Well-positioned for the future Diversified traditional banking platform • Traditional commercial banking franchise built on customer-oriented localized operating model • Strong market share in key markets with focus on further improving density • Fee income ~40% of total revenues Industry leader in
Slide 22: Fifth Third: Outlook
Fifth Third: Outlook Please see cautionary statement on slide 2 for risk factors related to forward-looking statements Category 4Q11 Actual 1Q12 Outlook Balance Sheet: Average loans & leases (excl. HFS) $79.9 billion Solid growth vs. 4Q11 Average transaction deposits $75.6 billion Stable vs. 4Q11 In
Slide 23: Strong liquidity profile
Strong liquidity profile Holding company unsecured debt maturities ($mm) Holding Company cash at 12/31/11: $2.6B Cash currently sufficient to satisfy all fixed obligations for more than 2 years (debt maturities, common and preferred dividends, interest and other expenses) without accessing capital m
Slide 24: Non-performing assets and net charge-offs: Product view
Non-performing assets and net charge-offs: Product view* *NPAs exclude loans held-for-sale. 24 Fifth Third Bank | All Rights Reserved
Slide 25: Non-performing assets and net charge-offs: Geographic view
Non-performing assets and net charge-offs: Geographic view* *NPAs exclude loans held-for-sale. 25 Fifth Third Bank | All Rights Reserved
Slide 26: Commercial & industrial
Commercial & industrial* Credit trends Loans by geography C&I ($ in millions) 4Q10 1Q11 2Q11 3Q11 4Q11 EOP Balance $27,191 $27,344 $28,099 $29,258 $30,783 Avg Loans $26,338 $27,331 $27,909 $28,777 $29,891 90+ days delinquent $16 $8 $7 $9 $4 as % of loans 0.06% 0.03% 0.02% 0.03% 0.01% NPAs $612 $620
Slide 27: Commercial mortgage
Commercial mortgage* Credit trends Loans by geography Commercial mortgage ($ in millions) 4Q10 1Q11 2Q11 3Q11 4Q11 EOP Balance $10,845 $10,510 $10,233 $10,330 $10,138 Avg Loans $10,985 $10,685 $10,394 $10,050 $10,262 90+ days delinquent $11 $8 $12 $9 $3 as % of loans 0.10% 0.08% 0.11% 0.09% 0.03% NP
Slide 28: Commercial construction
Commercial construction* Credit trends Loans by geography Commercial construction ($ in millions) 4Q10 1Q11 2Q11 3Q11 4Q11 EOP Balance $2,048 $1,980 $1,778 $1,213 $1,020 Avg Loans $2,171 $2,030 $1,918 $1,752 $1,132 90+ days delinquent $3 $23 $48 $44 $1 as % of loans 0.13% 1.16% 2.71% 3.65% 0.09% NPA
Slide 29: Homebuilders/developers
Homebuilders/developers* (included in previous slides) Credit trends Loans by geography Homebuilders/developers ($ in millions) 4Q10 1Q11 2Q11 3Q11 4Q11 EOP Balance $699 $651 $597 $578 $512 90+ days delinquent $1 $1 $1 $3 $0 as % of loans 0.12% 0.16% 0.19% 0.59% 0.03% NPAs $259 $249 $243 $207 $155 a
Slide 30: Residential mortgage
Residential mortgage Credit trends Loans by geography Residential mortgage ($ in millions) 4Q10 1Q11 2Q11 3Q11 4Q11 EOP Balance $8,956 $9,530 $9,849 $10,249 $10,672 Avg Loans $8,382 $9,282 $9,654 $10,006 $10,464 90+ days delinquent $100 $98 $87 $91 $79 as % of loans 1.12% 1.03% 0.88% 0.89% 0.74% NPA
Slide 31: Home equity
Home equity Credit trends Brokered loans by geography Direct loans by geography Home equity - brokered ($ in millions) 4Q10 1Q11 2Q11 3Q11 4Q11 EOP Balance $1,698 $1,637 $1,586 $1,540 $1,487 90+ days delinquent $25 $25 $23 $21 $18 as % of loans 1.46% 1.51% 1.46% 1.37% 1.21% Net charge-offs $25 $24 $
Slide 32: Florida market
Florida market* Deterioration in real estate values having effect on credit trends as evidenced by increased NPA/NCOs in real estate related products Florida % of % of NCOs % of Weak commercial real estate market Loans ($B) FITB NPAs ($M) FITB ($M) FITB Commercial loans 2.0 7% 66 13% 7 11% Commercia
Slide 33: Michigan market
Michigan market* Deterioration in home price values coupled with weak economy impacting credit trends due to frequency of defaults and severity Michigan % of % of NCOs % of Loans ($B) FITB NPAs ($M) FITB ($M) FITB Commercial loans 3.2 10% 101 20% 12 20% Commercial mortgage 2.6 26% 150 24% 21 45% Com
Slide 34: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation $ and shares in millions (unaudited) For the Three Months Ended December September June March December 2011 2011 2011 2010 2010 Income before income taxes (U.S. GAAP) 418 530 506 377 417 Add: Provision expense (U.S. GAAP) 55 87 113 168 166 Pre-provision net reven
Slide 35: Regulation G Non-GAAP reconciliation
Regulation G Non-GAAP reconciliation $ in millions (unaudited) For the Three Months Ended December September June March December 2011 2011 2011 2010 2010 Total Bancorp shareholders' equity (U.S. GAAP) 13,201 13,029 12,572 12,163 14,051 Goodwill and certain other intangibles (2,514) (2,514) (2,536) (