Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Barclays Global Financial Services Conference 2024
16 slides from Fifth Third Bancorp's conference presentation, Sep 10, 2024
Slide 1: Barclays Global Financial Services Conference
© Fifth Third Bancorp | All Rights Reserved © Fifth Third Bancorp | All Rights Reserved Barclays Global Financial Services Conference Tim Spence Chairman, Chief Executive Officer and President September 11, 2024
Slide 2: Forward-looking statements
© Fifth Third Bancorp | All Rights Reserved 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 2
Slide 3: Disciplined execution guided by core principles
© Fifth Third Bancorp | All Rights Reserved Disciplined execution guided by core principles Stability Profitability Growth Consistent and disciplined management, with a long-term focus throughout the company 3 • Defensive balance sheet positioning • Strong credit profile • Diverse fee mix with high
Slide 4: Top performing regional bank with local scale and national reach
© Fifth Third Bancorp | All Rights Reserved Midwest footprint (branch count in white) Major FITB markets 2 with a top 5 deposit share London office Leading position in the markets we compete in 3 Key Southeast MSAs of focus Toronto office Top performing regional bank with local scale and national re
Slide 5: A simple, diversified business portfolio
© Fifth Third Bancorp | All Rights Reserved Commercial Banking Lending / Deposits / Capital Markets / Treasury Management & Payments $67B loans $63B deposits Consumer & Small Business Banking Wealth & Asset Management Business Offerings Loans / Deposits $4B loans $11B deposits $46B loans $88B deposi
Slide 6: Driving to consistently generate top quartile results
© Fifth Third Bancorp | All Rights Reserved 1.22% Peer 7 FITB Peer 2 Peer 8 Peer 5 Peer 4 Peer 1 Peer 9 Peer 10 Peer 11 Peer 3 Peer 6 15.1%FITB Peer 2 Peer 1 Peer 7 Peer 8 Peer 4 Peer 10 Peer 5 Peer 9 Peer 3 Peer 11 Peer 6 60.5% Peer 9 Peer 6 x Peer 10 Peer 8 Peer 7 Peer 3 Peer 4 Peer 11 Peer 1 Peer
Slide 7: Leading to top returns for our shareholders
© Fifth Third Bancorp | All Rights Reserved Leading to top returns for our shareholders 7 Total shareholder return Source: Bloomberg; Note: Results exclude FCNCA as they participated in an FDIC assisted acquisition. Top quartile performer in both a low-rate and rising rate environment Trailing TSR a
Slide 8: Intentionally diversifying fee revenue to perform well in any environment
© Fifth Third Bancorp | All Rights Reserved Intentionally diversifying fee revenue to perform well in any environment • Total adjusted fee revenue accounted for ~34% of total adjusted revenue for the last twelve months ending 6/30/24 • Focused on diversified revenue to lessen cyclical impacts, with
Slide 9: Rich history of payments innovation
© Fifth Third Bancorp | All Rights Reserved Rich history of payments innovation 9 1970s 1980s 1990s 2000s 2010s 2020 2024 Fifth Third takes leadership position with Check 21. Embedded Payments business unit formed. Among first banks to join Zelle network. Acquired Big Data Healthcare to accelerate T
Slide 10: Well established commercial payments organization with significant scale
© Fifth Third Bancorp | All Rights Reserved 0.05% 0.06% 0.06% 0.08% 0.08% 0.10% 0.10% 0.10% 0.11% 0.13% 0.15% 0.19% 0.41% Peer 12 Peer 11 Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 x Well established commercial payments organization with significant scale 10 ACH Credit se
Slide 11: Significant opportunity within B2B payments
© Fifth Third Bancorp | All Rights Reserved Significant opportunity within B2B payments 11 Significant growth off a sizable base Significant opportunity to automate back-office processes related to cash conversion cycle $29.2 trillion ~12% B2B payment market in the United States Expected annual grow
Slide 12: Case studies: Managed services solutions
© Fifth Third Bancorp | All Rights Reserved Case studies: Managed services solutions 12 Big Data HealthcareCash logistic solutions Managed payables Robust portfolio of managed payables automation solutions that maximize client value Optimizing healthcare payments by automating the reconciliation of
Slide 13: Newline embedded payment and deposit solutions
© Fifth Third Bancorp | All Rights Reserved • Newline is vertically integrated API platform that enables enterprises to launch payment, card, and deposit solutions directly with Fifth Third Bank. 13 Client Payment & Deposit Solutions Client list includes a broad range of category leaders Newline off
Slide 14: Expect strong commercial payments growth
© Fifth Third Bancorp | All Rights Reserved Expect strong commercial payments growth 14 FY17 2Q24 LTM Future state Embedded payments/ Newline Managed Services Traditional treasury management 16% CAGR 4% CAGR 20+% ~10% ~5% >2x growth 1 See forward-looking statements on page 2 of this presentation reg
Slide 15: Current expectations 3Q24 compared to 2Q24
© Fifth Third Bancorp | All Rights Reserved Fifth Third Bancorp | All Rights Reserved up ~2% Noninterest expense 1 up ~1% (2Q24 baseline: $1.204 billion) Net charge-off ratio 40 – 45 bps Effective tax rate 22 – 23% 1 Non-GAAP measure: see forward-looking statements on page 2 of this presentation reg
Slide 16: Why Fifth Third
© Fifth Third Bancorp | All Rights Reserved ✓ Well-diversified and resilient balance sheet to provide stability and profitability ✓ Consistent investments to generate balanced and growing revenue streams while maintaining peer-leading expense discipline ✓ Multi-year track record of making appropriat
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