Exhibit 99.1
2005 BancAnalysts Association of Boston Annual Fall Conference
“Investing in a Franchise”
Kevin T. Kabat Executive Vice President
Neal E. Arnold Executive Vice President
November 4, 2005
1 |
|
Affiliates & Markets
I. Affiliate Operating Model II. Markets III. Deposit Performance IV. Loan Performance
2 |
|
Affiliate Bank Operating Model – 19 Affiliates
FITB Affiliates State Deposits % of 5/3 Assets Bkg Ctrs President Years @ 5/3
Cincinnati |
| OH 11.9 18% $19.2 106 R. Sullivan 4 |
Chicago |
| IL 8.7 13% 9.6 133 T. Zink 1 |
Western |
| Michigan MI 7.3 11% 9.4 134 M. VanDyke 4 |
Detroit |
| MI 4.4 7% 6.9 84 P. Fehring 25 |
Columbus |
| OH 3.8 6% 5.1 65 R. Eversole 20 |
Cleveland |
| OH 3.6 5% 5.5 84 T. Clossin 4 |
South |
| Florida FL 3.3 5% 6.6 43 K. Hale 1 |
Dayton |
| OH 3.3 5% 3.8 65 R. Webb 4 |
Toledo |
| OH 3.1 5% 4.6 50 R. LaClair 6 |
Indianapolis |
| IN 3.1 5% 5.4 82 M. Spagnoletti 4 |
Southern |
| Indiana IN 2.2 3% 3.3 51 J. Daniel 5 |
Louisville |
| KY 1.5 2% 2.2 46 P. McHugh 19 |
Northern |
| Michigan MI 1.4 2% 2.1 23 J. Pelizzari 4 |
Northern |
| Kentucky KY 1.3 2% 1.7 33 T. Rawe 19 |
Nashville |
| TN 1.0 2% 2.0 18 D. Hogan 1 |
Lexington |
| KY 1.0 2% 1.8 21 S. Barnes 11 |
Ohio |
| Valley OH 0.9 1% 1.5 27 D. Call 3 |
Tampa |
| FL 0.8 1% 1.3 26 B. Keenan 1 |
Orlando |
| FL 0.7 1% 1.2 15 G. Howlett 8 |
$ in billions
3 |
|
Metropolitan Market Focus
Significant De-Novo Market Share Opportunities in Footprint
Fifth Third MSA Markets
MSA |
| Population Rank Deposits Share % |
Chicago, |
| IL 9.5 5 $ 8,053 3.4 |
Detroit, |
| MI 4.6 7 3,403 4.4 |
Tampa, |
| FL 2.6 11 746 1.8 |
Cleveland-Elyria, |
| OH 2.2 5 2,707 4.2 |
Cincinnati, |
| OH-KY-IN 2.1 1 13,057 35.2 |
Orlando, |
| FL 2.0 9 529 1.8 |
Columbus, |
| OH 1.8 3 3,441 12.2 |
Indianapolis, |
| IN 1.7 4 2,032 8.2 |
Nashville, |
| TN 1.4 7 908 3.6 |
Louisville, |
| KY-IN 1.2 4 1,461 7.6 |
Naples/Sarasota, |
| FL 1.0 4 2,212 8.6 |
Grand |
| Rapids—0.8 1 3,597 31.2 |
Wyoming |
|
Dayton, |
| OH 0.9 1 2,574 26.1 |
Toledo, |
| OH 0.7 1 1,991 23.1 |
Detroit Grand Detroit
Rapids
Chicago Toledo
Cleveland
Chicago
Columbus
IndianapolisDayton
IndianapolisCincinnati Huntington
Lexington
Louisville St. Louis ?
Evansville
Nashville
Nashville
Orlando
Tampa
Sarasota
Naples
Source: SNL Branch Migration Database as of December 31, 2004 and U.S. Census Bureau including completed acquisitions
4 |
|
Demonstrated Long-Term Track Record
35,000
30,000
25,000 20,000 15,000 10,000 5,000
Avg Demand & NOW
1996 1997 1998 1999 2000 2001 2002 2003 2004 Q3-05
5-year CAGR
Interest Checking 18%
Demand Deposits 15%
95,000 85,000 75,000 65,000 55,000 45,000 35,000 25,000 $ Millions
5-year CAGR
Loans & Leases 8%
Earning Assets 9%
Avg Loans & Leases Avg Earning Assets
1996 1997 1998 1999 2000 2001 2002 2003 2004 Q3-05
5 |
|
Continued Strong Affiliate Loan Results
30% 25% 20% 15% 10% 5% 0%
Q3-05 YTD Average Total Loan & Lease Growth
Florida Chicago Cleveland Nashville North Mich Detroit Lexington North Ky OH Valley Cincinnati Columbus S. Indiana Toledo Grand Rapids Indianapolis Dayton Louisville
13 affiliates grew loans by 9% or more in the 1st nine months of 2005
Average Loans & Leases
9% growth in average loans & leases in 2004 10% annualized average loan growth in Q3-05 $ Billions
70 60 50 40 30
43
45
46
52
57
67
2000 2001 2002 2003
2004
Q3-05 YTD
6 |
|
Retail Banking
I. Funding Balance Sheet Growth II. Retail Deposit Strategy
7 |
|
Improving Balance Sheet Core Funding
Lexington 13 of 17 affiliates have grown loans faster than core deposits in 2005
Q3-05 YTD Average Loan & Core Deposit Growth
30% 25% 20% 15% 10% 5% 0%
Detroit Indianapolis Nashville Columbus Chicago OH Valley Florida
Toledo Cincinnati Grand Rapids S. Indiana North Mich Cleveland Louisville North Ky Dayton
Loans Core Deposits
8 |
|
Driving Deposit Growth
Deposit balance and account production growth
Quarterly deposit campaigns Bundled product sales Enhanced product offerings Competitive everyday rates
Improved distribution through de-novo expansion Increased retention and service focus
Right price Right product Customer surveys
9
Affiliate Updates
I. Fifth Third (Chicago) “Back on Track”
II. Fifth Third (Florida)….@ 9 months “It’s Early…but Promising”
10
Fifth Third (Chicago)…Regaining Traction
Almost 40 de-novo banking centers opened in Chicago area since efforts began in late 2002
133 banking centers $9.6 billion in assets $8.7 billion in deposits
Year-to-date 2005 Fifth Third (Chicago) highlights:
Loan growth of 17% Core Deposit growth of 10% Revenue growth of 14%
11
Fifth Third (Chicago) Balance Sheet Trends $ Millions
4,500 4,000 3,500 3,000 2,500
Average Commercial Loans
$718 million in growth in 2005
Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 $ Millions
3,500 3,250 3,000 2,750 2,500
Average Consumer Loans
$370 million in growth in 2005
Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05
Average Deposit Summary
2005 |
| YTD Avg. 2004 YTD Avg. % Change |
Consumer |
| Demand 412 384 7% |
Commercial |
| Demand 1,280 1,156 11% |
Interest |
| Checking 2,626 2,945 -11% |
Savings |
| & MM 2,526 1,799 40% |
Transaction |
| Deposits 6,844 6,284 9% |
Time |
| Deposits 1,701 1,497 14% |
Total |
| Deposits 8,545 7,781 10% |
12
Fifth Third (Chicago)…A 4 Year Look Back
Construction
10% Comm Mtg 24%
Comm Lease Consumer 0% 23%
C&I
Resi Mtg 25% Card 18% 0% Cons Lease 0%
Chicago Asset Mix
C&I up 72%
Consumer up 111%
Resi. Mtg. down 74%
Total loans up 30%
Card 1%
Construction Consumer 8% 37%
Comm Mtg 16% C&I
31% Comm Lease 1% Resi Mtg Cons Lease 4% 2%
June 2001
(conversion)
NOW 20%
CD’s 43%
Savings & MM
24%
Demand 13%
IN FOUR YEARS
July 2005
Chicago Deposit Mix
Demand up 90%
NOW up 99%
Savings & MM up 53%
CD’s down 43%
Total Deposits up 26%
Savings & MM
32%
CD’s Demand 12% 22%
NOW 34%
13
Fifth Third (Florida) Revenues $ Millions
55 45 35 25 15 5
Florida Non-interest Income
2004 2005
33% growth
Q1 Q2 Q3 YTD 9-30
YTD Highlights Investment Adv. 48% FTPS 172% Deposit Revenues 26% Mortgage 222% Insurance & Other (27%)
Year-to-date Revenues up 14% $ Millions
180 160 140 120 100 80 60 40
Florida Net Interest Income
10% growth
Q1 Q2 Q3 YTD 9-30
2004 Data includes First National
2004 2005
14
Fifth Third (Florida) Balance Sheet Trends $ Millions
3,500 3,400 3,300 3,200 3,100 3,000
Average Commercial Loans
$213 million in growth YTD
Jan Feb March April May June July August Sept $ Millions
2,250 2,000 1,750 1,500 1,250
Average Consumer Loans
$522 million in growth YTD
Jan Feb March April May June July August Sept
Average Deposit Summary
2005 |
| YTD Avg. 2004 YTD Avg. % Change |
Consumer |
| Demand 202 172 17% |
Commercial |
| Demand 715 540 32% |
Interest |
| Checking 1,656 1,742 -5% |
Savings |
| & MM 951 779 22% |
Transaction |
| Deposits 3,524 3,233 9% |
Time |
| Deposits 1,262 1,364 -7% |
Total |
| Deposits 4,786 4,597 4% |
15
Business Lines
2004 Revenues
Processing Solutions 11%
Investment Advisors 10%
Commercial 28%
Retail 51%
Processing revenues exclude gain-on-sale
Q3-05 Noninterest Revenues
Processing Solutions 30%
Investment Advisors 14%
Deposit Revenues 22%
Mortgage 7%
Commercial Banking 8%
Other 19%
16
Commercial Banking
I. Revenue & Net Income Performance II. Loan Performance
III. Deposit Performance
Commercial Banking Performance $ Millions
2,100 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000
Revenue Net Income
1232
425
1474
563
648
1632
777
1831
800 750 700 650 600 550 500 450 400 $ Millions
2002 2003 2004 Q3-05 annualized
11% revenue growth & 15% net income growth in 2004
Sales force additions still gaining momentum Superior loan growth through recent cycle will continue to drive results
18
Commercial Service Revenues
2004
Inst. Sales & Pub Fin 10%
Loan & Lease 9%
International 24%
Corporate Fin 6%
Other 13%
Deposit Revenue 38%
Selected Q3-05 Growth Rates Foreign exchange 12% Letters of credit 8% Derivative Sales 266% Underwriting Fees 39% Deposit -based revenues made up 38% of service revenues in 2004 compared to 33% in 2002 $ Millions
250 200 150 100 50
2000 2001 2002 2003
2004
Q3-05 Ann.
86
125
157
178
174
195
Commercial Banking Revenues (excluding deposit service)
19
Superior Commercial Loan Growth
30% 25% 20% 15% 10% 5% 0%
Florida Lexington OH Valley Indianapolis Chicago Nashville Louisville Detroit N. Mich.
Toledo
2004 Average Commercial Loan & Lease Growth
10 affiliates grew commercial loans by more than 10% in 2004 11 affiliates grew commercial loans by more than 10% YTD 2005
Period end commercial loans & leases up 23% over last year 5-year CAGR = 10% $ Billions
40 35 30 25 20 15
1999 2000 2001 2002 2003 2004 Q3-05
Period End Commercial Loans and Leases
20 22
23
25
28
31
37
20
Commercial Deposit Focused
60% 50% 40% 30% 20% 10% 0%
2004 Average Commercial Demand Deposit Growth
Florida Cleveland Cincinnati Chicago Columbus Nashville Indianapolis S. Indiana Detroit Lexington Dayton $ Billions
11 9 7 5 3
Average Commercial Demand Deposits
4.0
4.4
5.3
7.0
8.9
10.3
11 affiliates grew commercial demand deposits by 20% or more in 2004 7 affiliates are up 10% or more YTD through Q3-05
2000 2001 2002 2003 2004 Q3-05
Commercial demand deposits increased by 29% in 2004 5-year CAGR = 19%
21
Fifth Third Processing Solutions
I. Business Mix II. Revenue History III. Initiatives
22
Total FTPS Revenue Mix
FTPS |
| Revenue 2002 2003 2004 04 Growth |
Financial |
| Institution $206 $ 216 $250 16% |
Merchant |
| Services 261 306 305* 29%** |
Card |
| Services 76 87 102 17% |
TOTAL |
| $543 $609 $657 22%** |
Card Services
16%
38%
46%
Merchant Services
Financial Institution
* Includes 2004 impact of sold contracts totaling $70 million in comparable lost annual revenue ** Growth rate excludes impact of above mentioned lost revenue in 2003
23
FTPS Revenue History $ Millions
800 700 600 500 400 300 200 100
Compound Annual Growth Rate 5-year = 26%
204
272
372
543
609
657*
Projected
1999 2000 2001 2002 2003 2004 2005
* |
| Includes 2004 impact of sold contacts totaling $70 million in comparable lost annual revenue |
Fin. Inst. & Card Merchant
24
Initiatives
Cross-sell Merchant Card Processing into existing Commercial & Small Business Customers
Improving overall merchant offering to small and middle market customers 33% increase in middle market sales representatives in 2005 Improved per sales rep production from 2.3 to 7.0 deals per month Commercial merchant revenue up 40% year-to-date
Cross-sell new credit cards to existing Retail customers
Pre-approval and point of sale strategy in banking centers New product platform in 2005 (TSYS) Goal: 1 million 5/3 card accounts on file by year end 2005 Currently 18% of Fifth Third households have a 5/3 credit card Per banking center sales production up 38% year-to-date
25
Investment Advisors
I. Business Mix II. Initiatives
26
Fifth Third Investment Advisors
2004 Revenues
Asset Mgmt 4%
Retail Brokerage 16%
Private Client 64%
Institutional 16%
2004 Accomplishment
15% revenue growth compared to 4% expense growth
2005 & Beyond
Revenue diversification and growth are Job 1 Improving mix of IA revenue to be less dependent on overall market
27
Initiatives
Expand sales of investment management nationally through Fifth Third Asset Management (FTAM)
Taft-Hartley, Corporate and Public pension client focus
Penetrate commercial and small business client base with 401K Retirement Plans and Institutional Management
Continued Expansion of Private Client and Retail Brokerage
Sales force additions in private banking and brokerage in newer markets
New Affiliate Markets – Tennessee and Florida
Expanded and enhanced product offerings (wealth planning, insurance and equity derivatives)
28
The Deposit Opportunity
Fifth Third has only an 8% market share in the core six-state footprint
Fifth Third has a 7% market share on a combined basis in MSA’s greater than 1 million in population
FITB State Market Share
Ohio Michigan Kentucky Indiana Illinois Florida 6 State Total
11% 9% 7% 6% 3% 2%
8%
0% 5% 10% 15% 20%
29
Questions
This presentation may contain forward-looking statements about Fifth Third Bancorp and/or the company as combined with acquired entities within the meaning of Sections 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. This presentation may contain certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of Fifth Third Bancorp and/or the combined company including statements preceded by, followed by or that include the words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trend,” “objective,” “continue,” “remain” or similar expressions or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions increase significantly; (2) changes in the interest rate environment reduce interest margins; (3) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (4) general economic conditions, either national or in the states in which Fifth Third and/or combined entities do business, are less favorable than expected; (5) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (6) changes and trends in the securities markets; (7) legislative or regulatory changes or actions, or significant litigation, adversely affect Fifth Third and/or acquired entities or the businesses in which Fifth Third and/or combined entities are engaged; (8) difficulties in combining the operations of acquired entities and (9) the impact of reputational risk created by the developments discussed above on such matters as business generation and retention, funding and liquidity. We undertake no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release. Further information on other factors which could affect the financial results of Fifth Third are included in Fifth Third’s and/or the acquired entity’s filings with the Securities and Exchange Commission. These documents are available free of charge at the Commission’s website at http://www.sec.gov and/or from Fifth Third.
30