 BancAnalysts Association of Boston BancAnalysts Association of Boston 25 Annual Bank Conference 25 Annual Bank Conference November 3, 2006 Kevin Kabat President Chris Marshall Chief Financial Officer Exhibit 99.1 th |
 2 BAAB Conference – Friday, November 3, 2006 Agenda Historical performance Focus: leveraging our model Focus: deposit gathering Focus: credit Focus: balance sheet Summary |
 3 BAAB Conference – Friday, November 3, 2006 1990 2006 CAGR Assets $8 billion $106 billion 18% Net income $120 million $1.5 billion* 18% Earnings per share $0.41 $2.69* 13% Market cap $1.3 billion $22 billion # 20% Branches 214 1,145 11% ATMs 262 2,114 14% Rank, U.S. # 50 - 60 # 11 * YTD 9/30/2006 annualized; diluted earnings per share as originally reported (split-adjusted). # as of 10/27/06. Historical context: extraordinary growth |
 4 BAAB Conference – Friday, November 3, 2006 2002 Stock price $68.95 Market cap $40B ROE 18.4% Efficiency ratio 47.5% NIM 3.96% 2006 Stock price $39.53* Market cap $22B* ROE 15.5% Efficiency ratio 55.2% NIM 3.03% Recent performance: challenging * as of 10/27/06. |
 5 BAAB Conference – Friday, November 3, 2006 (CAGR: 3Q06* vs. 3Q02: per share) Source: SNL Financial; date shown per share to adjust for effect of acquisitions. * Comparisons as of 3Q06 except for core deposits, cards, which use regulatory data as of 2Q06. # Median of top 20 banks (excluding trust banks, C, JPM); median revenue growth of six processing companies (FDC, ADS, FISV, GPN, TSS, FIS); FTPS adjusted for 2Q04 sale of certain merchant processing contracts. ^ Median of large Midwest peers (NCC, PNC, HBAN, MI, KEY, CMA, USB). Focus: leveraging our model 16.2% 15.4% 15.1% ROE 57.3% 57.1% 55.5% Efficiency ratio 5% 3% 16% Credit card loan growth N/A 17% 18% Processing fee growth 6% 7% 8% Core deposit growth 7% 10% 14% Loan growth Midwest Peers ^ Peer Group # Fifth Third |
 6 BAAB Conference – Friday, November 3, 2006 Focus: leveraging our model Better delivery to the customer Entrepreneurial culture Attract better employee talent Collaboration across lines of business Development and sharing of best practices Differentiation that creates competitive advantage in the marketplace Local management and full line-of-business and staff accountability Local board of directors Local decision-making Cohesive geography Common platform |
 7 BAAB Conference – Friday, November 3, 2006 Focus: leveraging our model Credit Cards Deposits Private client Merchant acquisition Financial institutions Institutional products Credit Bundled Payments Products Business Banking Banking Fifth Third Bank Investments Processing |
 8 BAAB Conference – Friday, November 3, 2006 Deposit rates by product typically above peers… 1.10 1.87 1.92 2.26 2.49 0.00 1.00 2.00 3.00 4.00 5.00 6.00 USB STI BBT RF FITB Source: Company reports (if disclosed). 2.56 2.80 2.89 2.92 3.05 3.07 3.47 4.30 0.00 1.00 2.00 3.00 4.00 5.00 6.00 RF STI NCC HBAN KEY CMA MI FITB 0.19 0.40 0.41 0.64 0.87 1.71 1.75 2.60 3.08 0.00 1.00 2.00 3.00 4.00 5.00 6.00 KEY USB RF NCC CMA STI HBAN BBT FITB 3.93 4.11 4.17 4.24 4.24 4.29 4.32 4.40 4.43 4.55 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Q306 IBT rates Q306 MMDA rates Q306 savings rates Q306 consumer CD rates |
 9 BAAB Conference – Friday, November 3, 2006 …but in line overall given low-cost emphasis Source: Company reports (if disclosed). 2.06 2.70 3.20 3.27 3.30 3.31 3.31 3.43 3.45 3.90 3.04 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Q306 interest-bearing core deposit rates |
 10 BAAB Conference – Friday, November 3, 2006 15.4% 10.1% 7.5% 7.4% 6.2% 5.8% 5.5% 5.4% 4.9% 4.3% 2.9% 2.3% 0.6% -0.7% -1.4% -2.0% -5.2% Focus: deposit gathering June 2005 to June 2006 (FDIC data) Additionally: 20 of 21* Fifth Third affiliate banks grew deposits (all 21 excluding >$1B branches) 17 of 21 affiliates grew deposit market share (18 of 21 excluding >$1B branches) Source: SNL Financial; FBR report, October 25, 2006. * 19 affiliates plus Pittsburgh and St. Louis. #3 overall among large cap banks |
 11 BAAB Conference – Friday, November 3, 2006 Focus: credit 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% Median Fifth Third Bancorp Gross C/Os Net C/Os Gross and net charge- offs have historically fallen within a relatively stable band Credit underwriting standards do not oscillate significantly from cycle to cycle – “we stick with our customers” Midwest economy 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 Median Fifth Third Bancorp |
 12 BAAB Conference – Friday, November 3, 2006 Margin pressure primarily related to fixed rate securities funded with floating rate liabilities Average Securities and Spread * Interest bearing liabilities excluding core deposits. Focus: balance sheet in rates in NII in EPS* +200 bps - 1.76% - 5-6 ¢ +100 bps - 0.81% - 2-3 ¢ - 100 bps +1.39% +4-5 ¢ - 200 bps +2.46% +8-9 ¢ Interest rate sensitivity Source: 3Q06 10-Q. Parallel shocks phased in over 12 mo. policy period. * Change in NII from 10-Q, using 3Q06 NII annualized, 35% tax rate, and 3Q06 average fully diluted shares. Not a projection. • # Estimates including effects of expected deposit betas and maturation of loans and deposits. Sensitivity primarily to moves in short end of curve Liability sensitivity has been reduced in recent quarters through securities portfolio runoff Approximately 40-45% of assets, 50-55% of funding variable rate # 0 5 10 15 20 25 30 2002 2003 2004 2005 3Q06 0 100 200 300 400 500 600 Avg. Securities Yield Wholesale borrowings* |
 13 BAAB Conference – Friday, November 3, 2006 Balance sheet rationalization Mortgage/home equity De novos Credit cards Open issues and decisions Broaden product mix Review risk-based pricing on high LTV home equity loans (e.g., high LTVs) How many; where Portfolio unrepresentative of market position — strategic plan for growth Resize bond portfolio as appropriate — More likely 10-20% of earning assets vs. 22% currently Optimize capital structure Implement securitization capability |
 14 BAAB Conference – Friday, November 3, 2006 Fifth Third: building a better future Achieving the proper balance between growth and profitability Capitalizing on our strengths and developing plans to address areas of weakness Communicating clearly with our investors Delivering on our promises and returning to above- par performance and shareholder returns |
 15 BAAB Conference – Friday, November 3, 2006 Cautionary statement 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. The financial information for affiliate operating segments in this presentation is reported on the basis used internally by the Bancorp’s management to evaluate performance and allocate resources. Allocations have been consistently applied for all periods presented. The performance measurement of the operating segments is based on the management structure of the Bancorp and is not necessarily comparable with similar information for any other financial institution. The information presented is also not necessarily indicative of the segments’ financial condition and results of operations if they were independent entities. |