Fifth Third Bancorp (FITB) 8-K Fifth Third Bancorp Reports Fourth Quarter 2008 Results

Exhibit 99.1

		News Release
CONTACTS:	Jeff Richardson (Investors)	FOR IMMEDIATE RELEASE
	(513) 534-0983	January 22, 2009
	Jim Eglseder (Investors)
	(513) 534-8424
	Debra DeCourcy, APR (Media)
	(513) 534-4153

FIFTH THIRD BANCORP REPORTS FOURTH QUARTER 2008 RESULTS

• Net loss of $2.2 billion ($3.82 per diluted common share) driven primarily by goodwill impairment, credit actions, higher credit costs and market valuation adjustments

• Non-cash goodwill impairment charge of $965 million; no negative effect on regulatory, other capital ratios

• Securities other-than-temporary impairment (OTTI) of $0.05 per share; estimated non-cash BOLI charge of $0.06 per share; changes in loss estimates related to an indemnification obligation with Visa of $0.01 per share (all per share figures after-tax)

• Losses on loans sold or transferred to held-for-sale of $800 million pre-tax; provision for loan losses $729 million in excess of loan losses

• Reported net interest income up 14 percent versus the fourth quarter 2007; up 4 percent excluding First Charter loan discount accretion

• Average core deposits up 2 percent, average total deposits up 8 percent

• Noninterest income increased 26 percent from the fourth quarter 2007, or 4 percent excluding BOLI charges and OTTI charges

• Payments processing revenue up 3 percent

• Deposit service revenue up 2 percent

• Corporate banking revenue growth of 14 percent

• Completed the sale of approximately $3.4 billion in preferred shares to U.S. Department of the Treasury under the Capital Purchase Program

• Tier 1 capital ratio of 10.59 percent (target range 8-9 percent)

• Total capital ratio of 14.79 percent (target range 11.5-12.5 percent)

• Tangible equity ratio of 7.86 percent (target range 6-7 percent)

• Allowance to loan ratio increased to 3.31 percent, allowance to nonperforming loans ratio of 123 percent

Earnings Highlights

	For the Three Months Ended															% Change
	December 2008			September 2008			June 2008			March 2008			December 2007			Seq		Yr/Yr
Net income (loss) (in millions)	($	2,142	)	($	56	)	($	202	)	$	286		$	16		NM		NM
Net income (loss) available to common shareholders	($	2,184	)	($	81	)	($	202	)	$	286		$	16		NM		NM
Common Share Data
Earnings per share, basic		(3.82	)		(0.14	)		(0.37	)		0.54			0.03		NM		NM
Earnings per share, diluted		(3.82	)		(0.14	)		(0.37	)		0.54			0.03		NM		NM
Cash dividends per common share		0.01			0.15			0.15			0.44			0.44		(93	%)	(98	%)
Financial Ratios
Return on average assets		(7.16	%)		(.19	%)		(.72	%)		1.03	%		0.06	%	NM		NM
Return on average equity		(94.6	)		(3.3	)		(8.5	)		12.3			0.7		NM		NM
Tier I capital		10.59			8.57			8.51			7.72			7.72		24	%	37	%
Net interest margin (a)		3.46			4.24			3.04			3.41			3.29		(18	%)	5	%
Efficiency (a)		131.3			54.2			58.6			42.3			72.6		142	%	81	%
Common shares outstanding (in thousands)		577,387			577,487			577,530			532,106			532,672		—		8	%
Average common shares outstanding (in thousands):
Basic		571,809			571,705			540,030			528,498			529,120		—		8	%
Diluted		571,809			571,705			540,030			530,372			530,939		—		8	%

(a) Presented on a fully taxable equivalent basis

NM: not meaningful

Fifth Third Bancorp (Nasdaq: FITB) today reported a full year 2008 net loss of $2.2 billion, or $3.94 per diluted share, compared with net income of $1.1 billion, or $1.99 per diluted share in 2007. Reported fourth quarter 2008 earnings were a net loss of $2.2 billion, or $3.82 per diluted share, compared with a net loss of $81 million, or $0.14 per diluted share, in the third quarter of 2008 and net income of $16 million, or $0.03 per diluted share, in the fourth quarter of 2007.

Fourth quarter results included a non-cash charge of $965 million pre-tax, or $1.64 per share after-tax, to record the impairment of goodwill. This write-down resulted from goodwill impairment testing that was performed at the end of the fourth quarter due to the decline in the stock price during the quarter, and the resulting difference between market capitalization and book value of the Bancorp. The results of the goodwill impairment testing showed that the estimated fair values of certain of the Bancorp’s reporting units were less than their book values, resulting in this charge.

Fourth quarter results also included the effect of actions taken to address areas of the loan portfolio exhibiting the most significant credit deterioration. During the fourth quarter, the Bank sold or transferred to held-for-sale loans with contractual balances of $1.6 billion and a carrying value of approximately $1.3 billion at the end of the third quarter. Approximately 90 percent of these loans were commercial real estate secured loans in Florida and Michigan. Loans sold had contractual balances of $240 million, carrying values (net of prior charge-offs) at the end of the third quarter of $177 million, on which we recorded fourth quarter net charge-offs of $120 million. Loans transferred to held-for-sale had contractual balances of $1.4 billion and carrying values of $1.2 billion at the end of the third quarter. Net charge-offs of $680 million were recorded in the fourth quarter on these loans as they were written down to bids received or collateral liquidation values. Overall, net charge-offs on loans either sold or transferred to held-for-sale during the fourth quarter totaled $800 million, which reflected a reduction in the value of loans sold or transferred to approximately 33 cents of their contractual balances. Fifth Third also significantly increased its reserve for loan and lease losses to $2.8 billion, resulting in an allowance to loan and lease ratio of 3.31 percent, up from 2.41 percent in the third quarter, and an allowance to nonperforming loans ratio of 123 percent, up from 79 percent in the third quarter.

Reported results for the fourth quarter also included $40 million pre-tax, or $0.05 per share after-tax, in other-than-temporary impairment (OTTI) charges on securities, a non-cash estimated charge of $34 million pre-tax, or $0.06 per share after-tax, to lower the current cash surrender value of one of our BOLI policies, and an estimated $8 million pre-tax, or $0.01 per share after-tax, due to changes on loss estimates related to the Bancorp’s indemnification obligation with Visa.

During the quarter, Fifth Third Bancorp sold $3.4 billion in preferred shares to the U.S. Department of the Treasury under its Capital Purchase Program, which represented approximately 3.0% of September 30, 2008 risk-weighted assets. This investment was the primary cause of the increase in our tangible equity ratio to 7.86 percent, our Tier 1 capital ratio to 10.59 percent, and our total capital ratio to 14.79 percent. In order to meet the standard terms of the Capital Purchase Program, Fifth Third repurchased its Series D and Series E

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preferred stock for aggregate consideration in cash of $28 million. The purchase was accounted for as a retirement of the $9 million par value of Series D and Series E preferred stock and the remaining $19 million was paid as an extraordinary dividend to the holders of those preferred stock issues. Overall, this action represented a charge of $0.05 per diluted share.

“Economic conditions have deteriorated across our footprint and have placed both our consumer and commercial loan portfolios under significant stress, as evident in our bottom line results for the year,” said Kevin T. Kabat, Chairman, President and CEO of Fifth Third Bancorp. “The resultant decline in our stock price during the quarter, and the evaluation of goodwill, led to our recording of goodwill impairment of $940 million after-tax during the quarter. This is a non-cash charge and it doesn’t negatively affect our cash flow or our capital ratios.”

Our underlying business results continue to be solid. We produced growth in both consumer and commercial deposit accounts of 4%, excluding acquisitions. Our Everyday Great Rates strategy helped us expand our customer base despite the extremely aggressive deposit competition we saw in 2008. Additionally, corporate banking fees were $444 million for the full year, up 21% in 2008, and electronic payments processing revenue and service charges on deposits were both up 11%.

Since the beginning of the current credit cycle in the second half of 2007, we have been aggressively addressing our loan portfolio exposure to the geographies and industries most affected by this credit downturn. Actions we’ve taken include suspending originations of residential homebuilder and developer loans and commercial non-owner occupied real estate loans, discontinuing all brokered home equity products, and implementing more stringent underwriting standards. We have significantly increased our reserves by over $1.9 billion over the course of 2008, including over $700 million in the fourth quarter.

During the fourth quarter, we took actions that resulted in the recording of significant losses. We sold or transferred to held-for-sale of $1.3 billion of commercial loans, based on the combined carrying value of these loans at the end of the third quarter. These steps were intended to further reduce the risk of our most problematic loan portfolios, primarily residential homebuilder and commercial non-owner occupied real estate loans in Michigan and Florida. During the quarter, $800 million in losses were recorded on these loans sold or transferred to held-for-sale. We also continued to be very aggressive in dealing with problematic loans in our consumer portfolio, modifying a total of $218 million loans during the quarter. Modifying these loans is beneficial not only to our shareholders but is also consistent with the needs of our customers, and result in a greater likelihood of payment and more value ultimately received by Fifth Third. As of year-end, we had $574 million in restructured customer loans on our books. We understand that these actions significantly impacted our bottom line results, but we believe the actions taken in 2008 to mitigates risks and fortify the balance sheet will benefit our shareholders and customers in 2009 as this credit cycle progresses.

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During 2008, we raised a combined $4.5 billion in preferred equity, including $3.4 billion under the U.S. Treasury’s Capital Purchase Program, and increased our reserve for loan and lease losses by $1.9 billion from the prior year’s level, bolstering the strength of our balance sheet. The investment by the Treasury was made on December 31, 2008. This additional capital increases our capacity to provide credit to businesses and consumers in our markets in coming periods and to further assist struggling borrowers as we work together to manage through this difficult environment.”

Income Statement Highlights

	For the Three Months Ended													% Change
	December 2008			September 2008			June 2008			March 2008		December 2007		Seq		Yr/Yr
Condensed Statements of Income ($ in millions)
Net interest income (taxable equivalent)	$	897		$	1,068		$	744		$	826	$	785	(16%)		14	%
Provision for loan and lease losses		2,356			941			719			544		284	151%		729	%
Total noninterest income		642			717			722			864		509	(11%)		26	%
Total noninterest expense		2,022			967			858			715		940	109%		115	%
Income before income taxes (taxable equivalent)		(2,839	)		(123	)		(111	)		431		70	NM		NM
Taxable equivalent adjustment		5			5			6			6		6	—		(17	%)
Applicable income taxes		(702	)		(72	)		85			139		48	NM		NM
Net income (loss)		(2,142	)		(56	)		(202	)		286		16	NM		NM
Dividends on preferred stock		42			25			—			—		—	68	%	NM
Net income (loss) available to common shareholders		(2,184	)		(81	)		(202	)		286		16	NM		NM
Earnings per share, diluted	($	3.82	)	($	0.14	)	($	0.37	)	$	0.54	$	0.03	NM		NM

NM: not meaningful

Net Interest Income

	For the Three Months Ended															% Change
	December 2008			September 2008			June 2008			March 2008			December 2007			Seq		Yr/Yr
Interest Income ($ in millions)
Total interest income (taxable equivalent)	$	1,411		$	1,553		$	1,213		$	1,453		$	1,556		(9	%)	(9	%)
Total interest expense		514			485			469			627			771		6	%	(33	%)
Net interest income (taxable equivalent)	$	897		$	1,068		$	744		$	826		$	785		(16	%)	14	%
Average Yield
Yield on interest-earning assets		5.44	%		6.16	%		4.95	%		5.99	%		6.52	%	(12	%)	(17	%)
Yield on interest-bearing liabilities		2.28	%		2.25	%		2.23	%		2.99	%		3.78	%	1	%	(40	%)
Net interest rate spread (taxable equivalent)		3.16	%		3.91	%		2.72	%		3.00	%		2.74	%	(19	%)	15	%
Net interest margin (taxable equivalent)		3.46	%		4.24	%		3.04	%		3.41	%		3.29	%	(18	%)	5	%
Average Balances ($ in millions)
Loans and leases, including held for sale	$	87,426		$	85,772		$	85,212		$	84,912		$	82,172		2	%	6	%
Total securities and other short-term investments		15,683			14,515			13,363			12,597			12,506		8	%	25	%
Total interest-bearing liabilities		89,440			85,990			84,417			84,353			80,977		4	%	10	%
Shareholders’ equity		10,291			10,843			9,629			9,379			9,446		(5	%)	9	%

Net interest income of $897 million on a taxable equivalent basis declined $171 million from the third quarter of 2008, largely driven by a $134 million reduction in loan discount accretion related to the second quarter 2008 acquisition of First Charter Corporation (“First Charter”). Excluding the benefit of the loan discount accretion of $81 million in the fourth quarter and $215 million in the third quarter, net interest income declined $37 million, or 4 percent, from the third quarter 2008. This sequential decline was driven by a number of factors, which included the effect of loan interest reversals and higher nonperforming loan balances, a change in the mix of deposits to higher priced CDs and savings products as a result of a highly competitive deposit pricing environment, and the effect of lower market interest rates on deposit spreads. In a low rate

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environment, asset yields decline but it is difficult to reduce rates paid on lower yielding deposit accounts to the same extent. These negative effects were partially offset by wider loan spreads and the addition of assets related to certain off-balance sheet programs.

The reported net interest margin was 3.46 percent, down 78 bps from 4.24 percent in the third quarter of 2008. The decrease was primarily due to a 54 bps reduction in the impact of purchase accounting adjustments for First Charter loan discount accretion, which contributed 31 bps to the fourth quarter margin versus 85 bps of benefit to the third quarter margin. Excluding this impact, the net interest margin would have been 3.15 percent, a decline of 24 bps from the previous quarter. This decline was driven by the change in mix of deposits, deposit costs declining less than asset yields, higher interest reversals, and the addition of assets due to customer use of contingent liquidity facilities related to certain off-balance sheet programs. These items were partially offset by wider loans spreads.

Compared with the fourth quarter of 2007, net interest income increased $112 million and the net interest margin increased 17 bps from 3.29 percent, both primarily due to the impact of loan discount accretion from the First Charter acquisition. Excluding this effect, net interest income increased by $31 million, or 4 percent, from the same period in 2007, and the net interest margin declined 14 bps.

Average Loans

	For the Three Months Ended										% Change
	December 2008		September 2008		June 2008		March 2008		December 2007		Seq		Yr/Yr
Average Portfolio Loans and Leases ($ in millions)
Commercial:
Commercial loans	$	30,227	$	28,284	$	28,299	$	25,367	$	23,650	7	%	28	%
Commercial mortgage		13,189		13,257		12,590		12,016		11,497	(1	%)	15	%
Commercial construction		5,990		6,110		5,700		5,577		5,544	(2	%)	8	%
Commercial leases		3,610		3,641		3,747		3,723		3,692	(1	%)	(2	%)
Subtotal - commercial loans and leases		53,016		51,292		50,336		46,683		44,383	3	%	19	%
Consumer:
Residential mortgage loans		9,335		9,681		9,922		10,395		9,943	(4	%)	(6	%)
Home equity		12,677		12,534		12,012		11,846		11,843	1	%	7	%
Automobile loans		8,428		8,303		8,439		9,278		9,445	2	%	(11	%)
Credit card		1,748		1,720		1,703		1,660		1,461	2	%	20	%
Other consumer loans and leases		1,165		1,165		1,125		1,083		1,099	—		6	%
Subtotal - consumer loans and leases		33,353		33,403		33,201		34,262		33,791	—		(1	%)
Total average loans and leases (excluding held for sale)	$	86,369	$	84,695	$	83,537	$	80,945	$	78,174	2	%	10	%
Average loans held for sale		1,057		1,077		1,676		3,967		3,998	(2	%)	(74	%)

Average portfolio loan and lease balances increased 2 percent sequentially and were up 10 percent from the fourth quarter of 2007. Acquisitions had no impact on sequential growth and accounted for 3 percent of average loan growth on a year-over-year basis.

Average commercial loan and lease balances grew 3 percent sequentially and 19 percent compared with the previous year. During the fourth quarter, commercial and industrial (C&I) average loans grew by approximately $1.7 billion primarily due to the use of contingent liquidity facilities related to certain off-balance sheet programs. Excluding these items and the impact of acquisitions, commercial loan balances were

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consistent with third quarter balances and increased 12 percent from the previous year, with year-over-year growth driven by C&I lending, up 19 percent due primarily to strong production during the first and second quarters of 2008. Nearly half of the growth in commercial mortgage balances and all of the growth in commercial construction balances from the same period in 2007 was attributable to acquisitions. During the fourth quarter, $1.3 billion in commercial loans were either sold or transferred to held-for-sale, but there was minimal impact to average loan balances due to the timing of these actions.

Consumer loan and lease balances were flat sequentially and declined 1 percent from the fourth quarter of 2007. Excluding acquisitions, consumer loan balances declined 5 percent from the previous year, which included a decline in auto loans as a result of $2.7 billion in securitizations in the first quarter of 2008. Sequentially, modest home equity loan growth, a result of lower pay-downs in the quarter, along with credit card and auto loan growth was offset by declines in residential mortgage loans. On a year-over-year basis, growth in home equity and credit card loans was more than offset by a reduction in residential mortgage and auto loan balances. Excluding acquisitions, residential mortgage loans declined 14 percent from the previous year.

Average Deposits

	For the Three Months Ended										% Change
	December 2008		September 2008		June 2008		March 2008		December 2007		Seq		Yr/Yr
Average Deposits ($ in millions)
Demand deposits	$	14,602	$	14,225	$	14,023	$	13,208	$	13,345	3	%	9	%
Interest checking		13,315		13,843		14,396		14,836		14,394	(4	%)	(7	%)
Savings		15,960		16,154		16,583		16,075		15,616	(1	%)	2	%
Money market		4,983		6,051		6,592		6,896		6,363	(18	%)	(22	%)
Foreign office (a)		1,876		2,126		2,169		2,443		2,249	(12	%)	(17	%)
Subtotal - Transaction deposits		50,736		52,399		53,763		53,458		51,967	(3	%)	(2	%)
Other time		13,337		10,780		9,517		10,884		11,011	24	%	21	%
Subtotal - Core deposits		64,073		63,179		63,280		64,342		62,978	1	%	2	%
Certificates - $100,000 and over		12,468		11,623		8,143		5,835		6,613	7	%	89	%
Other		1,473		395		2,948		3,861		2,464	273	%	(40	%)
Total deposits	$	78,014	$	75,197	$	74,371	$	74,038	$	72,055	4	%	8	%

(a) Includes commercial customer Eurodollar sweep balances for which the Bancorp pays rates comparable to other commercial deposit accounts.

Average core deposits increased 1 percent sequentially and were up 2 percent from the fourth quarter of 2007. Acquisitions had no effect on sequential core deposit growth and a 4 percent positive effect compared with the same quarter last year. Sequential growth in average demand deposit (DDA) and consumer CD balances was partially offset by lower interest checking, savings and money market deposits, and foreign office commercial sweep deposits. On a year-over-year basis, growth in DDA, savings, and consumer CD balances more than offset lower interest checking, money market, and foreign office commercial sweep deposits. Average transaction deposits (excluding consumer time deposits) were down 3 percent from the third quarter and declined 2 percent from a year ago. The decline was driven by lower average balances resulting from weaker economic conditions, as well as the migration of savings balances to higher rate CDs.

Retail average core deposits increased 4 percent both sequentially and from the fourth quarter of 2007. Strong sequential growth in consumer CD balances was partially offset by lower interest checking balances, a

6

result of lower average balances during the quarter. DDA and savings balances were consistent with the previous quarter as lower average balances offset net new account growth. Commercial core deposits decreased 5 percent sequentially and were down 6 percent from the previous year as lower market rates led customers to carry lower balances and to substitute fees for compensating balances in payment for treasury management services. Sequential growth in DDA and interest checking account balances was driven by customers shifting balances into DDA products given the increased FDIC insurance limits, and was more than offset by lower savings and money market account balances. The sequential increase in CDs $100,000 and over was driven by growth in customer jumbo CDs and other time deposits in an overall effort to reduce exposure to market-related funding sources.

Noninterest Income

	For the Three Months Ended														% Change
	December 2008			September 2008			June 2008			March 2008		December 2007			Seq		Yr/Yr
Noninterest Income ($ in millions)
Electronic payment processing revenue	$	230		$	235		$	235		$	213	$	223		(2	%)	3	%
Service charges on deposits		162			172			159			147		160		(6	%)	2	%
Investment advisory revenue		78			90			92			93		94		(13	%)	(17	%)
Corporate banking revenue		121			104			111			107		106		16	%	14	%
Mortgage banking net revenue		(29	)		45			86			97		26		NM		NM
Other noninterest income		24			112			49			177		(113	)	(79	%)	NM
Securities gains (losses), net		(40	)		(63	)		(10	)		27		7		(37	%)	NM
Securities gains, net - non-qualifying hedges on mortgage servicing rights		96			22			—			3		6		345	%	1583	%
Total noninterest income	$	642		$	717		$	722		$	864	$	509		(11	%)	26	%

Noninterest income of $642 million decreased $75 million sequentially and increased $133 million from a year ago. Fourth quarter results included a non-cash estimated charge of $34 million to lower the current cash surrender value of one of our BOLI policies. The remaining carrying value on this BOLI policy is $290 million. Fourth quarter results also included securities OTTI charges of $40 million. Third quarter results were impacted by a $76 million gain related to a satisfactory resolution of a court case related to goodwill stemming from a previous acquisition in 1998, a $51 million OTTI charge on Fannie Mae and Freddie Mac preferred stock, and a non-cash BOLI charge of $27 million. Excluding these items, noninterest income of $716 million was consistent with the third quarter, driven primarily by strong corporate banking revenue offset by declines in deposit fees and investment advisory fees. Fourth quarter 2007 results included a $177 million non-cash BOLI charge. Excluding the BOLI charge in both periods and the $40 million in OTTI charges in the fourth quarter of 2008, noninterest income increased by $30 million, or 4 percent from the previous year. Year-over-year growth in noninterest income was driven by stronger mortgage activity, growth in corporate banking, and growth in payments processing revenue.

Electronic payment processing (EPP) revenue of $230 million declined 2 percent sequentially and increased 3 percent from a year ago. Merchant processing revenue was relatively flat sequentially and compared to the previous year, as the benefit of continued account acquisition was offset by a decline in average dollar amount per credit card transaction due to lower consumer spending. Card issuer interchange revenue declined 2 percent sequentially, driven primarily by a decline in the average dollar amount per debit and credit

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card transaction. Interchange revenue increased 7 percent from the previous year, driven by higher credit card transactions as a result of the Bancorp’s credit card growth initiative, partially offset by a lower dollar amount per transaction. Financial institutions revenue decreased 3 percent compared with the previous quarter, relating to lower transaction volume in a weaker economic environment, and grew 4 percent from the fourth quarter of 2007 on higher transaction volumes as card use continues to replace cash at the point of transaction.

Service charges on deposits of $162 million decreased 6 percent sequentially and increased 2 percent compared with the same quarter last year. Retail service charges decreased 12 percent from the third quarter and 7 percent from the fourth quarter of 2007 due to lower checking account transaction volume. Commercial service charges increased 3 percent sequentially and 14 percent compared with last year. This growth primarily reflected an increase in customer accounts and lower market interest rates, as reduced earnings credit rates paid on customer balances have resulted in higher realized net services fees to pay for treasury management services.

Corporate banking revenue of $121 million increased by $17 million, or 16 percent from the previous quarter. Sequential results were driven by strong growth in interest rate derivative revenue, up 50 percent; business lending fees, up 13 percent; institutional sales, up 7 percent; and foreign exchange revenue, up 4 percent. Corporate banking revenue increased by $15 million, or 14 percent on a year-over-year basis. Strong growth in foreign exchange revenue, up 64 percent, business lending fees, up 10 percent, and institutional sales revenue, up 4 percent, more than offset declines in interest rate derivative revenue, down 27 percent.

Investment advisory revenue of $78 million was down 13 percent sequentially and 17 percent from the fourth quarter of 2007. Institutional trust revenue decreased 22 percent from the same period the previous year largely driven by lower asset values. Mutual fund fees were down 21 percent year-over-year, as a shift to lower yielding investments and lower asset values drove declines. Brokerage fees were down 14 percent from the fourth quarter of 2007, reflecting the continued shift in assets from equity products to lower yielding money market funds due to extreme market volatility as well as a decline in transaction-based revenues.

Mortgage banking net revenue was a net loss of $29 million in the fourth quarter of 2008, a decline of $74 million from third quarter results and a $55 million decline from the fourth quarter of 2007. MSR valuation adjustments, including mark-to-market related adjustments on free-standing derivatives, represented a net loss of $96 million in the fourth quarter of 2008, compared with a net loss of $15 million last quarter and a net loss of $6 million a year ago. These losses were fully offset by gains in MSR balance sheet hedges reported in securities gains and losses. Fourth quarter originations were $2.1 billion, up from $2.0 billion the previous quarter, and resulted in fees and the sale of mortgages held-for-sale of $45 million compared with gains of $43 million during the previous quarter, and $18 million during the same period in 2007. Revenue for the fourth quarter included $3 million of gains on the sale of portfolio loans compared with $8 million in the previous quarter and $1 million in the fourth quarter of 2007. The adoption of FAS 159 for mortgage banking in the first

8

quarter of 2008 contributed $12 million of the year-over-year increase in mortgage banking revenue, with corresponding origination costs recorded in noninterest expense. Net servicing revenue, before mortgage servicing rights (MSR) valuation adjustments, totaled $22 million in the fourth quarter, compared with $17 million last quarter and $14 million a year ago. The mortgage-servicing asset, net of the valuation reserve, was $496 million at quarter end on a servicing portfolio of $40.4 billion.

Net securities gains on non-qualifying hedges on MSRs were $96 million in the fourth quarter of 2008, $22 million in the third quarter and $6 million in the fourth quarter of 2007.

Net losses on investment securities were $40 million in the fourth quarter of 2008 compared with a net loss of $63 million last quarter. The fourth quarter losses were driven by an OTTI charge of $37 million on trust preferred securities. These securities are now carried at $172 million on a combined basis, versus an original par value of $209 million. Results also included an OTTI charge of $3 million on Fannie Mae and Freddie Mac preferred stock, which are now carried at $1 million in aggregate versus original par values of $69 million.

Other noninterest income totaled $24 million in the fourth quarter of 2008 compared with $112 million last quarter and negative $113 million in the fourth quarter of 2007. Fourth quarter results included an estimated non-cash charge of $34 million that lowered the current cash surrender value of one of our BOLI policies, while third quarter 2008 results included the $76 million gain related to a satisfactory resolution of a court related to supervisory goodwill in a case stemming from a prior acquisition in 1998, partially offset by a $27 million non-cash BOLI charge. Fourth quarter 2007 results also included a $177 million BOLI charge. Excluding these items, other noninterest income decreased by $5 million from the previous quarter and $6 million from the previous year. Both the sequential and year-over-year declines were primarily driven by higher write-downs on other real estate owned (OREO) properties.

Noninterest Expense

	For the Three Months Ended										% Change
	December 2008		September 2008		June 2008		March 2008		December 2007		Seq		Yr/Yr
Noninterest Expense ($ in millions)
Salaries, wages and incentives	$	337	$	321	$	331	$	347	$	328	5	%	3	%
Employee benefits		61		72		60		85		56	(14	%)	10	%
Payment processing expense		70		70		67		66		68	1	%	3	%
Net occupancy expense		77		77		73		72		70	1	%	11	%
Technology and communications		48		47		49		47		47	3	%	3	%
Equipment expense		35		34		31		31		32	3	%	7	%
Other noninterest expense		1,394		346		247		67		339	303	%	311	%
Total noninterest expense	$	2,022	$	967	$	858	$	715	$	940	109	%	115	%

Noninterest expense of $2.0 billion increased $1.1 billion both sequentially and from a year ago. The significant increase in expenses was primarily driven by the $965 million pre-tax charge to record goodwill impairment in the fourth quarter of 2008. Excluding this charge, noninterest expense of $1.1 billion increased $90 million sequentially and $117 million from a year ago. Fourth quarter results included higher expenses related to the difficult operating environment that included higher provision for unfunded commitments, higher

9

reinsurance reserve accruals to cover losses on proprietary private residential mortgage insurance, and increased reserves for derivative counterparty losses. The combination of these expenses accounted for $91 million of expense increase sequentially and $96 million compared to the previous year. Additionally, fourth quarter 2008 results included an estimated net $8 million charge due to changes on loss estimates related to our indemnification obligation with Visa, while third quarter results included a $45 million charge related to Visa litigation, $36 million related to legal expenses associated with the satisfactory resolution of a goodwill suit related to a 1998 acquisition, and $7 million in seasonally higher pension expense. Fourth quarter 2007 results included a $94 million charge due to Visa litigation and $8 million in acquisition related expenses. On a year-over-year comparison basis, acquisitions added approximately $26 million of additional operating expense, and the impact of the adoption of FAS 159 on the classification of mortgage origination costs has added approximately $12 million. Remaining expense growth on both a sequential and year-over-year basis was attributable to higher volume-related payment processing expense, increased equipment and occupancy expense, and higher loan and lease processing costs as a result of increased collection activities.

Credit Quality

	For the Three Months Ended
	December 2008			September 2008			June 2008			March 2008			December 2007
Total net losses charged off ($ in millions)
Commercial loans	($	422	)	($	85	)	($	107	)	($	36	)	($	48	)
Commercial mortgage loans		(465	)		(94	)		(21	)		(33	)		(15	)
Commercial construction loans		(539	)		(88	)		(49	)		(72	)		(12	)
Commercial leases		—			—			—			—			—
Residential mortgage loans		(68	)		(77	)		(63	)		(34	)		(18	)
Home equity		(54	)		(55	)		(54	)		(41	)		(32	)
Automobile loans		(43	)		(32	)		(26	)		(35	)		(30	)
Credit card		(30	)		(24	)		(21	)		(20	)		(15	)
Other consumer loans and leases		(6	)		(8	)		(3	)		(5	)		(4	)
Total net losses charged off		(1,627	)		(463	)		(344	)		(276	)		(174	)
Total losses		(1,652	)		(481	)		(365	)		(293	)		(193	)
Total recoveries		25			18			21			17			19
Total net losses charged off	($	1,627	)	($	463	)	($	344	)	($	276	)	($	174	)
Ratios
Net losses charged off as a percent of average loans and leases (excluding held for sale)		7.50	%		2.17	%		1.66	%		1.37	%		0.89	%
Commercial		10.70	%		2.07	%		1.41	%		1.21	%		0.66	%
Consumer		2.40	%		2.33	%		2.04	%		1.58	%		1.18	%

Net charge-offs totaled $1.6 billion in the fourth quarter. Results included net losses of $800 million on commercial loans that were either sold or transferred to held-for-sale during the quarter and an additional $827 million of losses, or 381 bps, on average portfolio loans and leases. Loss experience overall continues to be primarily associated with commercial residential builder and developer loans and consumer residential real estate loans, and to be disproportionately concentrated in Michigan and Florida. In aggregate, Florida and Michigan represented approximately 66 percent of total losses during the quarter and less than 30 percent of total loans and leases. Losses on commercial and consumer real estate loans in these states represented approximately 56 percent of total fourth quarter net charge-offs. Losses on loans to homebuilders and developers represented $568 million, or 35 percent of total losses, of which $128 million were incurred on

10

loans remaining in the loan portfolio (primarily states outside of Florida and Michigan) and $440 million were on loans sold or transferred to held-for-sale.

Commercial net charge-offs were $1.4 billion in the fourth quarter and represented 88 percent of total losses. During the quarter, the Bank either sold or transferred to held-for-sale commercial loans that had contractual balances of $1.6 billion. At the end of the third quarter, the loans sold or transferred to held-for-sale had balances of $1.3 billion, and net losses on these loans totaled $800 million for the quarter. Of that, $120 million was realized on loans sold and $680 million was recognized on loans transferred to held-for-sale, with $39 million on C&I loans, $389 million on commercial construction loans, and $372 million on commercial mortgage loans. Approximately 49 percent of those losses were on real estate secured loans in Florida, while another 44 percent were on real estate secured loans in Michigan. Loans to residential builder and developers accounted for $440 million, or 55 percent of these total losses, of which $17 million were C&I losses, $233 million were commercial construction losses, and $190 million were commercial mortgage losses. Loans sold during the quarter had customer balances of $240 million and carrying values of $177 million at the end of the third quarter. Loans transferred to held-for-sale during the quarter had customer balances of $1.4 billion and carrying values of $1.2 billion as of the end of the third quarter.

Excluding losses from loans sold or transferred to held-for-sale, commercial net charge-offs on portfolio loans were $626 million or 470 bps. Portfolio C&I losses were $383 million, an increase of $298 million from the previous quarter. Auto dealers accounted for $84 million, or 22 percent, of C&I net charge-offs and included a $26 million customer fraud loss in Illinois. Additionally, $105 million of C&I losses were attributable to loans to companies in real estate related industries. Commercial mortgage net losses totaled $93 million, a decrease of $1 million from the previous quarter. Michigan and Florida accounted for 47 percent of commercial mortgage losses. Commercial construction net losses were $150 million, and increased $62 million from the previous quarter. Michigan and Florida accounted for 47 percent of commercial construction losses. Net losses on residential builder and developer portfolio loans totaled $128 million and decreased by 24 percent from the third quarter, and were composed of $15 million on C&I loans, $32 million on commercial mortgage loans, and $81 million on commercial construction loans. Originations of homebuilder/developer loans were suspended in 2008 and remaining portfolio balances total $2.5 billion. Commercial portfolio net charge-offs for the quarter were $498 million, or 393 bps, excluding losses on the suspended homebuilder/developer portfolio.

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Consumer net charge-offs of $201 million, or 240 bps, were up $5 million from the third quarter of 2008. Net charge-offs in Michigan and Florida represented 49 percent of consumer losses in the fourth quarter, down from 52 percent in the third quarter of 2008. Home equity net charge-offs of $54 million declined $1 million sequentially and continued to be driven by losses on brokered home equity loans, reflecting borrower stress and lower home price valuations. Net losses on brokered home equity loans were $26 million or 49 percent of fourth quarter home equity losses, while brokered home equity loans represented $2.3 billion, or 18 percent, of the total home equity portfolio. Originations of brokered home equity loans were discontinued in 2007. Michigan and Florida represented 45 percent of fourth quarter home equity losses and 29 percent of total home equity loans. Net charge-offs within the residential mortgage portfolio were $68 million, a decrease of $9 million from the previous quarter, with losses in Michigan and Florida representing 80 percent of losses in the fourth quarter. Net charge-offs in the auto portfolio increased by $11 million from the third quarter to $43 million and losses on consumer credit card loans were $30 million, up $6 million from the third quarter, as higher unemployment and weakening economic conditions continue to impact these portfolios. Auto losses were also affected by declining values of repossessed autos at auction.

	For the Three Months Ended
	December 2008			September 2008			June 2008			March 2008			December 2007
Allowance for Credit Losses ($ in millions)
Allowance for loan and lease losses, beginning	$	2,058		$	1,580		$	1,205		$	937		$	827
Total net losses charged off		(1,627	)		(463	)		(344	)		(276	)		(174	)
Provision for loan and lease losses		2,356			941			719			544			284
Allowance for loan and lease losses, ending		2,787			2,058			1,580			1,205			937
Reserve for unfunded commitments, beginning		132			115			103			95			79
Provision for unfunded commitments		63			17			10			8			13
Acquisitions		—			—			2			—			3
Reserve for unfunded commitments, ending		195			132			115			103			95
Components of allowance for credit losses:
Allowance for loan and lease losses		2,787			2,058			1,580			1,205			937
Reserve for unfunded commitments		195			132			115			103			95
Total allowance for credit losses	$	2,982		$	2,190		$	1,695		$	1,308		$	1,032
Allowance for loan and lease losses ratio
As a percent of loans and leases		3.31	%		2.41	%		1.85	%		1.49	%		1.17	%
As a percent of nonperforming loans and leases (a)		123	%		79	%		79	%		87	%		105	%
As a percent of nonperforming assets (a)		111	%		73	%		72	%		76	%		88	%

(a) excludes nonaccrual loans and leases in loans held for sale

Provision for loan and lease losses totaled $2.8 billion in the fourth quarter of 2008, exceeding net charge-offs by $729 million. The increase in the allowance for loan and lease losses is reflective of a number of factors including: increased estimated loss factors due to negative trends in nonperforming assets and overall delinquencies; increased loss estimates due to the real estate price deterioration in some of the Bancorp’s key lending markets; and significant declines in general economic conditions.

The allowance for loan and lease losses represented 3.31 percent of total loans and leases outstanding as of quarter end, compared with 2.41 percent last quarter, and represented 123 percent of nonperforming loans, up from 79 percent the previous quarter.

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	As of
	December 2008			September 2008			June 2008			March 2008			December 2007
Nonperforming Assets and Delinquency ($ in millions)
Nonaccrual loans and leases:
Commercial loans	$	541		$	550		$	407		$	300		$	175
Commercial mortgage		482			724			524			312			243
Commercial construction		362			636			537			408			249
Commercial leases		21			23			18			11			5
Residential mortgage		259			216			142			138			92
Home equity		26			27			35			42			45
Automobile		5			3			7			13			3
Other consumer loans and leases		—			—			—			—			1
Total nonaccrual loans and leases	$	1,696		$	2,179		$	1,670		$	1,224		$	813
Restructured loans and leases		574			427			318			164			80
Total nonperforming loans and leases	$	2,270		$	2,606		$	1,988		$	1,388		$	893
Repossessed personal property		24			24			22			22			21
Other real estate owned (a)		206			198			190			182			150
Total nonperforming assets (b)	$	2,500		$	2,828		$	2,200		$	1,592		$	1,064
Nonaccrual loans held for sale		473			—			—			—			—
Total nonperforming assets including loans held for sale	$	2,973		$	2,828		$	2,200		$	1,592		$	1,064
Total loans and leases 90 days past due	$	662		$	671		$	608		$	539		$	491
Nonperforming loans and leases as a percent of portfolio loans, leases and other assets, including other real estate owned (b)		2.69	%		3.04	%		2.32	%		1.71	%		1.11	%
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned (b)		2.96	%		3.30	%		2.57	%		1.96	%		1.32	%

a) Excludes government insured advances.

b) Does not include nonaccrual loans held for sale.

Nonperforming assets (NPAs) at quarter end were $3.0 billion, of which $473 million were classified as held-for-sale and have been charged down or marked to their fair market value. Excluding the held-for-sale portion, NPAs were $2.5 billion, or 2.96 percent of total loans and leases and OREO, down from $2.8 billion, or 3.30 percent, last quarter. This reduction in NPAs was driven by the sale or transfer to held-for-sale of a portion of the Bank’s Florida and Michigan real estate secured loan portfolios, partially offset by the effect of continued restructurings of mortgage and home equity loans in the consumer portfolio. Portfolio NPAs at quarter end consisted of $1.7 billion of non-accrual loans, down $483 million from last quarter; $574 million of restructured consumer loans, up $147 million from the previous quarter; and $230 million of other real estate owned (OREO) and repossessed personal property, up $8 million from the third quarter of 2008.

Excluding NPAs in held-for-sale, commercial NPAs of $1.5 billion, or 2.91 percent, declined $515 million, or 26 percent, from the third quarter of 2008. Residential real estate builder and developer NPAs were $366 million in the fourth quarter, down $377 million, or 51 percent, from the previous quarter. Of the residential real estate builder and developer NPAs, $21 million were C&I NPAs, $210 million were commercial construction NPAs, and $135 million were commercial mortgage NPAs. C&I portfolio NPAs of $548 million decreased $9 million, or 2 percent, from the previous quarter. Commercial construction NPAs were $400 million, a decrease of $259 million, or 39 percent, from the third quarter of 2008. Commercial mortgage NPAs were $502 million, a sequential decline of $247 million, or 33 percent. Commercial real estate loans in Michigan and Florida represented 38 percent of our total commercial real estate portfolio in the fourth quarter 2008, compared with 42 percent the previous quarter, and 37 percent of commercial real estate NPAs, compared to 68 percent the previous quarter.

Consumer NPAs of $1.0 billion, or 3.04 percent, increased $186 million, or 22 percent, from the third quarter of 2008, of which $175 million were in residential real estate portfolios. Included in consumer NPAs were $574 million in debt restructurings, of which $218 million represented loans restructured in the fourth quarter

13

of 2008. These debt restructurings assist qualifying borrowers by creating workable payment plans to enable them to remain in their homes. Residential mortgage NPAs increased $126 million to $719 million and home equity NPAs increased $49 million to $243 million. Fourth quarter other real estate owned (OREO) of $206 million included $118 million of total residential mortgage NPAs and $21 million in total home equity NPAs, compared with OREO of $198 million in the third quarter of 2008. Residential real estate loans in Michigan and Florida represented 52 percent of the growth in residential real estate NPAs, 57 percent of total residential real estate NPAs, and 35 percent of total residential real estate loans.

Loans still accruing over 90 days past due were $662 million, down $9 million from the third quarter of 2008. Commercial 90 days past due balances declined 18 percent from the previous quarter, driven by a 30 percent reduction in C&I 90 days past due balances. Consumer 90 days past due balances increased 17 percent from the previous quarter, driven by 14 percent growth in residential real estate, 30 percent growth in auto and 29 percent growth in credit card 90 days past due balances.

Capital Position

	For the Three Months Ended
	December 2008 (a)		September 2008		June 2008		March 2008		December 2007
Capital Position
Tangible equity	7.86	%	6.19	%	6.37	%	6.19	%	6.14	%
Tangible common equity	4.23	%	5.23	%	5.40	%	6.19	%	6.14	%
Regulatory capital ratios:
Tier I capital	10.59	%	8.57	%	8.51	%	7.72	%	7.72	%
Total risk-based capital	14.79	%	12.30	%	12.15	%	11.34	%	10.16	%
Tier I leverage	10.27	%	8.77	%	9.08	%	8.28	%	8.50	%
Book value per share	13.57		16.65		16.75		17.56		17.18
Tangible book value per share	8.74		10.10		10.16		12.66		12.27

(a) Current period regulatory capital data and ratios are estimated

Regulatory capital ratios and the tangible equity ratio increased significantly during the quarter. The tangible equity ratio increased 167 bps to 7.86 percent, the Tier 1 capital ratio increased 202 bps to 10.59 percent, and the total capital ratio increased 249 bps to 14.79. These ratios were higher in the fourth quarter as the issuance of $3.4 billion of preferred shares to the U.S. Treasury more than offset the effect of losses recognized during the quarter. The goodwill impairment charge of $965 million did not significantly affect our capital ratios as goodwill is excluded from these ratios by definition. The Tier 1 and total capital ratios were also helped by a reduction in risk-weighted assets due to lower off-balance sheet exposures and the increase in the reserve for loan and lease losses.

Fifth Third’s tangible equity to tangible assets ratio target is 6 to 7 percent; the Tier 1 capital ratio target is 8 to 9 percent; and the total capital ratio target is 11.5 to 12.5 percent.

Other

During the fourth quarter of 2008, Fifth Third acquired approximately $250 million of deposits from the Federal Deposit Insurance Corporation (FDIC), acting as receiver for Freedom Bank in Bradenton, Florida. The FDIC

14

retained substantially all of Freedom Bank’s loan portfolio. This transaction raised Fifth Third’s market share in the Bradenton-Sarasota-Venice Metropolitan Statistical Area (MSA) to 4^th, according to FDIC data at the time of the acquisition.

During the fourth quarter, Fifth Third reduced its common dividend due to the outlook for a continued negative credit environment. The reduction is expected to conserve approximately $300 million of common equity on a full year basis, relative to the previous dividend level.

Conference Call

Fifth Third will host a conference call to discuss these financial results at 8:30a.m. (Eastern Time) today. This conference call will be webcast live by Thomson Financial and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Fifth Third” then “Investor Relations”). The webcast also is being distributed over Thomson Financial’s Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Financial’s individual investor center at www.earnings.com or by visiting any of the investor sites in Thomson Financial’s Individual Investor Network. Institutional investors can access the call via Thomson Financial’s password-protected event management site, StreetEvents (www.streetevents.com).

Those unable to listen to the live webcast may access a webcast replay or podcast through the Fifth Third Investor Relations website at the same web address. Additionally, a telephone replay of the conference call will be available beginning approximately two hours after the conference call until Thursday, February 5^th by dialing 800-642-1687 for domestic access and 706-645-9291 for international access (passcode 78343257#).

Corporate Profile

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of December 31, 2008, the Company has $120 billion in assets, operates 18 affiliates with 1,307 full-service Banking Centers, including 92 Bank Mart^® locations open seven days a week inside select grocery stores and 2,341 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates five main businesses: Commercial Banking, Branch Banking, Consumer Lending, Investment Advisors and Fifth Third Processing Solutions. Fifth Third is among the largest money managers in the Midwest and, as of December 31, 2008, has $179 billion in assets under care, of which it managed $25 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the NASDAQ^® National Global Select Market under the symbol “FITB.”

FORWARD-LOOKING STATEMENTS

This report may contain forward-looking statements about Fifth Third Bancorp 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 report 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 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.

15

Factors that might cause such a difference include, but are not limited to: (1) general economic conditions and weakening in the economy, specifically the real estate market, either national or in the states in which Fifth Third, does business, are less favorable than expected; (2) deteriorating credit quality; (3) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (4) changes in the interest rate environment reduce interest margins; (5) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (6) Fifth Third’s ability to maintain required capital levels and adequate sources of funding and liquidity; (7) changes and trends in capital markets; (8) competitive pressures among depository institutions increase significantly; (9) effects of critical accounting policies and judgments; (10) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; (11) legislative or regulatory changes or actions, or significant litigation, adversely affect Fifth Third, or the businesses in which Fifth Third, is engaged; (12) ability to maintain favorable ratings from rating agencies; (13) fluctuation of Fifth Third’s stock price; (14) ability to attract and retain key personnel; (15) ability to receive dividends from its subsidiaries; (16) potentially dilutive effect of future acquisitions on current shareholders’ ownership of Fifth Third; (17) effects of accounting or financial results of one or more acquired entities; (18) difficulties in combining the operations of acquired entities; (19) lower than expected gains related to any potential sale of businesses, (20) loss of income from any potential sale of businesses that could have an adverse effect on Fifth Third’s earnings and future growth (21) ability to secure confidential information through the use of computer systems and telecommunications networks; and (22) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the United States Securities and Exchange Commission (SEC). Copies of this filing are available at no cost on the SEC’s Web site at www.sec.gov or on the Fifth Third’s Web site at www.53.com. Fifth Third undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this report.

# # #

16

Quarterly Financial Review for December 31, 2008

Table of Contents

Financial Highlights	18-19
Consolidated Statements of Income	20
Consolidated Statements of Income (Taxable Equivalent)	21
Consolidated Balance Sheets	22-23
Consolidated Statements of Changes in Shareholders’ Equity	24
Average Balance Sheet and Yield Analysis	25-27
Summary of Loans and Leases	28
Regulatory Capital	29
Summary of Credit Loss Experience	30
Asset Quality	31
Segment Presentation	32

17

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)

	For the Three Months Ended									% Change				Year to Date						% Change
	December 2008			September 2008			December 2007			Seq		Yr/Yr		December 2008			December 2007			Yr/Yr
Income Statement Data
Net interest income (a)	$	897		$	1,068		$	785		(16	%)	14	%	$	3,536		$	3,033		17	%
Noninterest income		642			717			509		(11	%)	26	%		2,946			2,467		19	%
Total revenue (a)		1,539			1,785			1,294		(14	%)	19	%		6,482			5,500		18	%
Provision for loan and lease losses		2,356			941			284		151	%	729	%		4,560			628		626	%
Noninterest expense		2,022			967			940		109	%	115	%		4,564			3,311		38	%
Net income (loss)		(2,142	)		(56	)		16		3,754	%	NM			(2,113	)		1,076		NM
Net income (loss) available to common shareholders		(2,184	)		(81	)		16		2,609	%	NM			(2,180	)		1,075		NM
Common Share Data
Earnings per share, basic		($3.82	)		($0.14	)		$0.03		2,629	%	NM			($3.94	)	$	2.00		NM
Earnings per share, diluted		(3.82	)		(0.14	)		0.03		2,629	%	NM			(3.94	)		1.99		NM
Cash dividends per common share	$	0.01		$	0.15		$	0.44		(93	%)	(98	%)	$	0.75		$	1.70		(56	%)
Book value per share		13.57			16.65			17.18		(18	%)	(21	%)		13.57			17.18		(21	%)
Market price per share		8.26			11.90			25.13		(31	%)	(67	%)		8.26			25.13		(67	%)
Common shares outstanding (in thousands)		577,387			577,487			532,672		—		8	%		577,387			532,672		8	%
Average common shares outstanding (in thousands):
Basic		571,809			571,705			529,120		—		8	%		553,113			537,670		3	%
Diluted		571,809			571,705			530,939		—		8	%		553,113			540,118		2	%
Market capitalization	$	4,769		$	6,872		$	13,386		(31	%)	(64	%)	$	4,769		$	13,386		(64	%)
Financial Ratios
Return on assets		(7.16	%)		(0.19	%)		0.06	%	3,668	%	NM			(1.85	%)		1.05	%	NM
Return on average common equity		(94.6	%)		(3.3	%)		0.7	%	2,767	%	NM			(23.0	%)		11.2	%	NM
Noninterest income as a percent of total revenue		42	%		40	%		39	%	5	%	8	%		45	%		45	%	—
Average equity as a percent of average assets		8.65	%		9.45	%		8.77	%	(8	%)	(1	%)		8.78	%		9.35	%	(6	%)
Tangible equity (b)		7.86	%		6.19	%		6.14	%	27	%	28	%		7.86	%		6.14	%	28	%
Tangible common equity		4.23	%		5.23	%		6.14	%	(19	%)	(31	%)		4.23	%		6.14	%	(31	%)
Net interest margin (a)		3.46	%		4.24	%		3.29	%	(18	%)	5	%		3.54	%		3.36	%	5	%
Efficiency (a)		131.3	%		54.2	%		72.6	%	142	%	81	%		70.4	%		60.2	%	17	%
Effective tax rate		(24.7	%)		56.6	%		74.5	%	NM		NM			20.7	%		30.0	%	(31	%)
Credit Quality
Net losses charged off	$	1,627		$	463		$	174		251	%	835	%	$	2,710		$	462		487	%
Net losses charged off as a percent of average loans and leases		7.50	%		2.17	%		0.89	%	246	%	743	%		3.23	%		0.61	%	430	%
Allowance for loan and lease losses as a percent of loans and leases		3.31	%		2.41	%		1.17	%	37	%	183	%		3.31	%		1.17	%	183	%
Allowance for credit losses as a percent of loans and leases		3.54	%		2.56	%		1.29	%	38	%	174	%		3.54	%		1.29	%	174	%
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned (c)		2.96	%		3.30	%		1.32	%	(10	%)	124	%		2.96	%		1.32	%	124	%
Average Balances
Loans and leases, including held for sale	$	87,426		$	85,772		$	82,172		2	%	6	%	$	85,835		$	78,348		10	%
Total securities and other short-term investments		15,683			14,515			12,506		8	%	25	%		14,045			12,034		17	%
Total assets		118,953			114,784			107,727		4	%	10	%		114,296			102,477		12	%
Transaction deposits (e)		50,736			52,399			51,967		(3	%)	(2	%)		52,584			50,987		3	%
Core deposits (f)		64,073			63,179			62,978		1	%	2	%		63,719			61,765		3	%
Wholesale funding (g)		39,969			37,036			31,344		8	%	28	%		36,357			27,254		33	%
Shareholders’ equity		10,291			10,843			9,446		(5	%)	9	%		10,038			9,582		5	%
Regulatory Capital Ratios (d)
Tier I capital		10.59	%		8.57	%		7.72	%	24	%	37	%		10.59	%		7.72	%	37	%
Total risk-based capital		14.79	%		12.30	%		10.16	%	20	%	46	%		14.79	%		10.16	%	46	%
Tier I leverage		10.27	%		8.77	%		8.50	%	17	%	21	%		10.27	%		8.50	%	21	%
Operations
Banking centers		1,307			1,298			1,227		1	%	7	%		1,307			1,227		7	%
ATMs		2,341			2,329			2,211		1	%	6	%		2,341			2,211		6	%
Full-time equivalent employees		21,476			21,522			21,683		—		(1	%)		21,476			21,683		(1	%)

(a) Presented on a fully taxable equivalent basis

(b) Total assets and total shareholders’ equity are reduced by goodwill, intangibles and accumulated other comprehensive income to calculate tangible equity

(c) Excludes nonaccrual loans held for sale

(d) Current period regulatory capital ratios are estimates

(e) Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers

(f) Includes transaction deposits plus other time deposits

(g) Includes certificates $100,000 and over, other deposits, federal funds purchased, short-term borrowings and long-term debt

18

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)

	For the Three Months Ended
	December 2008			September 2008			June 2008			March 2008			December 2007
Income Statement Data
Net interest income (a)	$	897		$	1,068		$	744		$	826		$	785
Noninterest income		642			717			722			864			509
Total revenue (a)		1,539			1,785			1,466			1,690			1,294
Provision for loan and lease losses		2,356			941			719			544			284
Noninterest expense		2,022			967			858			715			940
Net income (loss)		(2,142	)		(56	)		(202	)		286			16
Net income (loss) available to common shareholders		(2,184	)		(81	)		(202	)		286			16
Common Share Data
Earnings per share, basic		($3.82	)		($0.14	)		($0.37	)	$	0.54		$	0.03
Earnings per share, diluted		(3.82	)		(0.14	)		(0.37	)		0.54			0.03
Cash dividends per common share	$	0.01		$	0.15		$	0.15		$	0.44		$	0.44
Book value per share		13.57			16.65			16.75			17.56			17.18
Market price per share		8.26			11.90			10.18			20.92			25.13
Common shares outstanding (in thousands)		577,387			577,487			577,530			532,106			532,672
Average common shares outstanding (in thousands):
Basic		571,809			571,705			540,030			528,498			529,120
Diluted		571,809			571,705			540,030			530,372			530,939
Market capitalization	$	4,769		$	6,872		$	5,879		$	11,132		$	13,386
Financial Ratios
Return on assets		(7.16	%)		(0.19	%)		(0.72	%)		1.03	%		0.06	%
Return on average common equity		(94.6	%)		(3.3	%)		(8.5	%)		12.3	%		0.7	%
Noninterest income as a percent of total revenue		42	%		40	%		49	%		51	%		39	%
Average equity as a percent of average assets		8.65	%		9.45	%		8.59	%		8.43	%		8.77	%
Tangible equity (b)		7.86	%		6.19	%		6.37	%		6.19	%		6.14	%
Tangible common equity		4.23	%		5.23	%		5.40	%		6.19	%		6.14	%
Net interest margin (a)		3.46	%		4.24	%		3.04	%		3.41	%		3.29	%
Efficiency (a)		131.3	%		54.2	%		58.6	%		42.3	%		72.6	%
Effective tax rate		(24.7	%)		56.6	%		(72.4	%)		32.6	%		74.5	%
Credit Quality
Net losses charged off	$	1,627		$	463		$	344		$	276		$	174
Net losses charged off as a percent of average loans and leases		7.50	%		2.17	%		1.66	%		1.37	%		0.89	%
Allowance for loan and lease losses as a percent of loans and leases		3.31	%		2.41	%		1.85	%		1.49	%		1.17	%
Allowance for credit losses as a percent of loans and leases		3.54	%		2.56	%		1.98	%		1.62	%		1.29	%
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned (c)		2.96	%		3.30	%		2.57	%		1.96	%		1.32	%
Average Balances
Loans and leases, including held for sale	$	87,426		$	85,772		$	85,212		$	84,912		$	82,172
Total securities and other short-term investments		15,683			14,515			13,363			12,597			12,506
Total assets		118,953			114,784			112,098			111,291			107,727
Transaction deposits (e)		50,736			52,399			53,763			53,458			51,967
Core deposits (f)		64,073			63,179			63,280			64,342			62,978
Wholesale funding (g)		39,969			37,036			35,160			33,219			31,344
Shareholders’ equity		10,291			10,843			9,629			9,379			9,446
Regulatory Capital Ratios (d)
Tier I capital		10.59	%		8.57	%		8.51	%		7.72	%		7.72	%
Total risk-based capital		14.79	%		12.30	%		12.15	%		11.34	%		10.16	%
Tier I leverage		10.27	%		8.77	%		9.08	%		8.28	%		8.50	%
Operations
Banking centers		1,307			1,298			1,308			1,232			1,227
ATMs		2,341			2,329			2,329			2,221			2,211
Full-time equivalent employees		21,476			21,522			21,617			21,726			21,683

(a) Presented on a fully taxable equivalent basis

(b) Total assets and total shareholders’ equity are reduced by goodwill, intangibles and accumulated other comprehensive income to calculate tangible equity

(c) Excludes nonaccrual loans held for sale

(d) Current period regulatory capital ratios are estimates

(e) Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers

(f) Includes transaction deposits plus other time deposits

(g) Includes certificates $100,000 and over, other deposits, federal funds purchased, short-term borrowings and long-term debt

19

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income

$ in millions

(unaudited)

	For the Three Months Ended									% Change				Year to Date					% Change
	December 2008			September 2008			December 2007			Seq		Yr/Yr		December 2008			December 2007		Yr/Yr
Interest Income
Interest and fees on loans and leases	$	1,218		$	1,378		$	1,386		(12	%)	(12	%)	$	4,935		$	5,418	(9	%)
Interest on securities		187			165			157		14	%	19	%		660			590	12	%
Interest on other short-term investments		1			5			7		(76	%)	(84	%)		13			19	(31	%)
Total interest income		1,406			1,548			1,550		(9	%)	(9	%)		5,608			6,027	(7	%)
Interest Expense
Interest on deposits		322			291			493		11	%	(35	%)		1,289			2,007	(36	%)
Interest on short-term borrowings		55			64			100		(14	%)	(45	%)		248			324	(24	%)
Interest on long-term debt		137			130			178		5	%	(23	%)		557			687	(19	%)
Total interest expense		514			485			771		6	%	(33	%)		2,094			3,018	(31	%)
Net Interest Income		892			1,063			779		(16	%)	15	%		3,514			3,009	17	%
Provision for loan and lease losses		2,356			941			284		151	%	729	%		4,560			628	626	%
Net interest income (loss) after provision for loan and lease losses		(1,464	)		122			495		NM		NM			(1,046	)		2,381	NM
Noninterest Income
Electronic payment processing revenue		230			235			223		(2	%)	3	%		912			825	11	%
Service charges on deposits		162			172			160		(6	%)	2	%		641			579	11	%
Investment advisory revenue		78			90			94		(13	%)	(17	%)		353			382	(8	%)
Corporate banking revenue		121			104			106		16	%	14	%		444			367	21	%
Mortgage banking net revenue		(29	)		45			26		NM		NM			199			133	50	%
Other noninterest income		24			112			(113	)	(79	%)	NM			363			154	135	%
Securities gains (losses), net		(40	)		(63	)		7		(37	%)	NM			(86	)		21	NM
Securities gains, net - non-qualifying hedges on mortgage servicing rights		96			22			6		345	%	1,583	%		120			6	2,005	%
Total noninterest income		642			717			509		(11	%)	26	%		2,946			2,467	19	%
Noninterest Expense
Salaries, wages and incentives		337			321			328		5	%	3	%		1,337			1,239	8	%
Employee benefits		61			72			56		(14	%)	10	%		278			278	—
Payment processing expense		70			70			68		1	%	3	%		274			244	12	%
Net occupancy expense		77			77			70		1	%	11	%		300			269	11	%
Technology and communications		48			47			47		3	%	3	%		191			169	13	%
Equipment expense		35			34			32		3	%	7	%		130			123	6	%
Other noninterest expense		1,394			346			339		303	%	311	%		2,054			989	108	%
Total noninterest expense		2,022			967			940		109	%	115	%		4,564			3,311	38	%
Income (loss) before income taxes		(2,844	)		(128	)		64		2,123	%	NM			(2,664	)		1,537	NM
Applicable income taxes		(702	)		(72	)		48		875	%	NM			(551	)		461	NM
Net income (loss)		(2,142	)		(56	)		16		3,754	%	NM			(2,113	)		1,076	NM
Dividends on preferred stock		42			25			—		68	%	NM			67			1	6,600	%
Net income (loss) available to common shareholders		($2,184	)		($81	)	$	16		2,609	%	NM			($2,180	)	$	1,075	NM

20

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income (Taxable Equivalent)

$ in millions

(unaudited)

	For the Three Months Ended
	December 2008			September 2008			June 2008			March 2008		December 2007
Interest Income
Interest and fees on loans and leases	$	1,218		$	1,378		$	1,050		$	1,290	$	1,386
Interest on securities		187			165			155			152		157
Interest on other short-term investments		1			5			2			5		7
Total interest income		1,406			1,548			1,207			1,447		1,550
Taxable equivalent adjustment		5			5			6			6		6
Total interest income (taxable equivalent)		1,411			1,553			1,213			1,453		1,556
Interest Expense
Interest on deposits		322			291			278			399		493
Interest on short-term borrowings		55			64			49			80		100
Interest on long-term debt		137			130			142			148		178
Total interest expense		514			485			469			627		771
Net interest income (taxable equivalent)		897			1,068			744			826		785
Provision for loan and lease losses		2,356			941			719			544		284
Net interest income (loss) (taxable equivalent) after provision for loan and lease losses		(1,459	)		127			25			282		501
Noninterest Income
Electronic payment processing revenue		230			235			235			213		223
Service charges on deposits		162			172			159			147		160
Investment advisory revenue		78			90			92			93		94
Corporate banking revenue		121			104			111			107		106
Mortgage banking net revenue		(29	)		45			86			97		26
Other noninterest income		24			112			49			177		(113	)
Securities gains (losses), net		(40	)		(63	)		(10	)		27		7
Securities gains, net—non-qualifying hedges on mortgage servicing rights		96			22			—			3		6
Total noninterest income		642			717			722			864		509
Noninterest Expense
Salaries, wages and incentives		337			321			331			347		328
Employee benefits		61			72			60			85		56
Payment processing expense		70			70			67			66		68
Net occupancy expense		77			77			73			72		70
Technology and communications		48			47			49			47		47
Equipment expense		35			34			31			31		32
Other noninterest expense		1,394			346			247			67		339
Total noninterest expense		2,022			967			858			715		940
Income (loss) before income taxes (taxable equivalent)		(2,839	)		(123	)		(111	)		431		70
Taxable equivalent adjustment		5			5			6			6		6
Income (loss) before income taxes		(2,844	)		(128	)		(117	)		425		64
Applicable income taxes		(702	)		(72	)		85			139		48
Net income (loss)		(2,142	)		(56	)		(202	)		286		16
Dividends on preferred stock		42			25			—			—		—
Net income (loss) available to common shareholders		($2,184	)		($81	)		($202	)	$	286	$	16

21

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)

	As of									% Change
	December 2008			September 2008			December 2007			Seq		Yr/Yr
Assets
Cash and due from banks	$	2,739		$	2,774		$	2,660		(1	%)	3	%
Available-for-sale and other securities (a)		12,728			13,177			10,677		(3	%)	19	%
Held-to-maturity securities (b)		360			360			355		—		1	%
Trading securities		1,191			915			171		30	%	597	%
Other short-term investments		3,578			229			620		1,462	%	477	%
Loans held for sale		1,452			1,000			4,329		45	%	(66	%)
Portfolio loans and leases:
Commercial loans		29,197			29,424			24,813		(1	%)	18	%
Commercial mortgage loans		12,502			13,355			11,862		(6	%)	5	%
Commercial construction loans		5,114			6,002			5,561		(15	%)	(8	%)
Commercial leases		3,666			3,642			3,737		1	%	(2	%)
Residential mortgage loans		9,385			9,351			10,540		—		(11	%)
Home equity		12,752			12,599			11,874		1	%	7	%
Automobile loans		8,594			8,306			9,201		3	%	(7	%)
Credit card		1,811			1,688			1,591		7	%	14	%
Other consumer loans and leases		1,122			1,131			1,074		(1	%)	4	%
Portfolio loans and leases		84,143			85,498			80,253		(2	%)	5	%
Allowance for loan and lease losses		(2,787	)		(2,058	)		(937	)	35	%	197	%
Portfolio loans and leases, net		81,356			83,440			79,316		(2	%)	3	%
Bank premises and equipment		2,494			2,470			2,223		1	%	12	%
Operating lease equipment		463			369			353		25	%	31	%
Goodwill		2,624			3,592			2,470		(27	%)	6	%
Intangible assets		168			188			147		(11	%)	14	%
Servicing rights		499			687			618		(27	%)	(19	%)
Other assets		10,112			7,093			7,023		43	%	44	%
Total assets	$	119,764		$	116,294		$	110,962		3	%	8	%
Liabilities
Deposits:
Demand	$	15,287		$	14,241		$	14,404		7	%	6	%
Interest checking		13,826			13,251			15,254		4	%	(9	%)
Savings		16,063			15,955			15,635		1	%	3	%
Money market		4,689			5,352			6,521		(12	%)	(28	%)
Foreign office		2,144			1,999			2,572		7	%	(17	%)
Other time		14,350			11,778			11,440		22	%	25	%
Certificates - $100,000 and over		11,851			13,173			6,738		(10	%)	76	%
Other		403			1,711			2,881		(76	%)	(86	%)
Total deposits		78,613			77,460			75,445		1	%	4	%
Federal funds purchased		287			2,521			4,427		(89	%)	(94	%)
Other short-term borrowings		9,959			8,791			4,747		13	%	110	%
Accrued taxes, interest and expenses		2,029			1,757			2,427		15	%	(16	%)
Other liabilities		3,214			2,122			1,898		51	%	69	%
Long-term debt		13,585			12,947			12,857		5	%	6	%
Total liabilities		107,687			105,598			101,801		2	%	6	%
Total shareholders’ equity (c)		12,077			10,696			9,161		13	%	32	%
Total liabilities and shareholders’ equity	$	119,764		$	116,294		$	110,962		3	%	8	%
(a)    Amortized cost	$	12,550		$	13,249		$	10,821		(5	%)	16	%
(b)    Market values		360			360			355		—		1	%
(c)    Common shares, stated value $2.22 per share (in thousands):
Authorized		2,000,000			2,000,000			1,300,000		—		54	%
Outstanding, excluding treasury		577,387			577,487			532,672		—		8	%
Treasury		6,040			5,941			51,516		2	%	(88	%)

22

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)

	As of
	December 2008			September 2008			June 2008			March 2008			December 2007
Assets
Cash and due from banks	$	2,739		$	2,774		$	2,853		$	3,092		$	2,660
Available-for-sale and other securities (a)		12,728			13,177			12,718			12,421			10,677
Held-to-maturity securities (b)		360			360			361			353			355
Trading securities		1,191			915			241			184			171
Other short-term investments		3,578			229			286			517			620
Loans held for sale		1,452			1,000			889			2,573			4,329
Portfolio loans and leases:
Commercial loans		29,197			29,424			28,958			26,590			24,813
Commercial mortgage loans		12,502			13,355			13,394			12,155			11,862
Commercial construction loans		5,114			6,002			6,007			5,592			5,561
Commercial leases		3,666			3,642			3,647			3,727			3,737
Residential mortgage loans		9,385			9,351			9,866			9,873			10,540
Home equity		12,752			12,599			12,421			11,803			11,874
Automobile loans		8,594			8,306			8,362			8,394			9,201
Credit card		1,811			1,688			1,717			1,686			1,591
Other consumer loans and leases		1,122			1,131			1,152			1,066			1,074
Portfolio loans and leases		84,143			85,498			85,524			80,886			80,253
Allowance for loan and lease losses		(2,787	)		(2,058	)		(1,580	)		(1,205	)		(937	)
Portfolio loans and leases, net		81,356			83,440			83,944			79,681			79,316
Bank premises and equipment		2,494			2,470			2,444			2,265			2,223
Operating lease equipment		463			369			364			317			353
Goodwill		2,624			3,592			3,603			2,460			2,470
Intangible assets		168			188			203			143			147
Servicing rights		499			687			701			596			618
Other assets		10,112			7,093			6,368			6,794			7,023
Total assets	$	119,764		$	116,294		$	114,975		$	111,396		$	110,962	��
Liabilities
Deposits:
Demand	$	15,287		$	14,241		$	16,259		$	14,949		$	14,404
Interest checking		13,826			13,251			14,002			14,842			15,254
Savings		16,063			15,955			16,602			16,572			15,635
Money market		4,689			5,352			6,806			7,077			6,521
Foreign office		2,144			1,999			2,174			2,354			2,572
Other time		14,350			11,778			9,839			9,883			11,440
Certificates - $100,000 and over		11,851			13,173			10,870			4,993			6,738
Other		403			1,711			864			731			2,881
Total deposits		78,613			77,460			77,416			71,401			75,445
Federal funds purchased		287			2,521			2,447			5,612			4,427
Other short-term borrowings		9,959			8,791			5,628			6,387			4,747
Accrued taxes, interest and expenses		2,029			1,757			1,864			2,377			2,427
Other liabilities		3,214			2,122			1,820			2,226			1,898
Long-term debt		13,585			12,947			15,046			14,041			12,857
Total liabilities		107,687			105,598			104,221			102,044			101,801
Total shareholders’ equity (c)		12,077			10,696			10,754			9,352			9,161
Total liabilities and shareholders’ equity	$	119,764		$	116,294		$	114,975		$	111,396		$	110,962
(a)    Amortized cost	$	12,550		$	13,249		$	12,935		$	12,417		$	10,821
(b)    Market values		360			360			361			353			355
(c)    Common shares, stated value $2.22 per share (in thousands):
Authorized		2,000,000			2,000,000			2,000,000			1,300,000			1,300,000
Outstanding, excluding treasury		577,387			577,487			577,530			532,106			532,672
Treasury		6,040			5,941			5,897			51,321			51,516

23

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

$ in millions

(unaudited)

	For the Three Months Ended						Year to Date
	December 2008			December 2007			December 2008			December 2007
Total shareholders’ equity, beginning	$	10,696		$	9,293		$	9,161		$	10,022
Net income (loss)		(2,142	)		16			(2,113	)		1,076
Other comprehensive income, net of tax:
Change in unrealized gains and (losses):
Available-for-sale securities		163			55			209			26
Qualifying cash flow hedges		47			18			63			25
Change in accumulated other comprehensive income related to employee benefit plans		(52	)		(1	)		(49	)		2
Comprehensive income		(1,984	)		88			(1,890	)		1,129
Cash dividends declared:
Common stock		(6	)		(234	)		(413	)		(914	)
Preferred stock		(42	)		—			(67	)		(1	)
Issuance of preferred stock, series G		—			—			1,072			—
Redemption of preferred stock		(9	)		—			(9	)		—
Issuance of preferred stock, series F		3,408			—			3,408			—
Stock-based awards exercised, including treasury shares issued		—			1			—			47
Stock-based compensation expense		14			15			57			61
Loans repaid (issued) related to exercise of stock-based awards, net		1			(1	)		4			2
Change in corporate tax benefit related to stock-based compensation		(1	)		(2	)		(16	)		2
Shares issued in an acquisition		—			—			770			—
Shares acquired for treasury		—			—			—			(1,084	)
Impact of cumulative effect of change in accounting principle (a)		—			—			—			(98	)
Other		—			1			—			(5	)
Total shareholders’ equity, ending	$	12,077		$	9,161		$	12,077		$	9,161

(a) 2007 includes $96 million impact due to the adoption of FSP FAS 13-2, “Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leverage Lease Transaction” on January 1, 2007 and $2 million impact due to the adoption of FIN No. 48, “Accounting for Uncertainty in Income Taxes—An Interpretation of FASB Statement No. 109” on January 1, 2007.

24

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)

	For the Three Months Ended									% Change
	December 2008			September 2008			December 2007			Seq		Yr/Yr
Assets
Interest-earning assets:
Commercial loans	$	30,227		$	28,284		$	24,526		7	%	23	%
Commercial mortgage loans		13,194			13,257			11,588		—		14	%
Commercial construction loans		5,990			6,110			5,544		(2	%)	8	%
Commercial leases		3,610			3,642			3,692		(1	%)	(2	%)
Residential mortgage loans		10,327			10,711			11,181		(4	%)	(8	%)
Home equity		12,677			12,534			11,843		1	%	7	%
Automobile loans		8,428			8,303			11,158		2	%	(24	%)
Credit card		1,748			1,720			1,461		2	%	20	%
Other consumer loans and leases		1,225			1,211			1,179		1	%	4	%
Taxable securities		14,882			13,310			11,360		12	%	31	%
Tax exempt securities		288			315			464		(9	%)	(38	%)
Other short-term investments		513			890			682		(42	%)	(25	%)
Total interest-earning assets		103,109			100,287			94,678		3	%	9	%
Cash and due from banks		2,897			2,468			2,424		17	%	19	%
Other assets		15,089			13,683			11,444		10	%	32	%
Allowance for loan and lease losses		(2,142	)		(1,654	)		(819	)	29	%	162	%
Total assets	$	118,953		$	114,784		$	107,727		4	%	10	%
Liabilities
Interest-bearing liabilities:
Interest checking	$	13,315		$	13,843		$	14,394		(4	%)	(7	%)
Savings		15,960			16,154			15,616		(1	%)	2	%
Money market		4,983			6,051			6,363		(18	%)	(22	%)
Foreign office		1,876			2,126			2,249		(12	%)	(17	%)
Other time		13,337			10,780			11,011		24	%	21	%
Certificates - $100,000 and over		12,468			11,623			6,613		7	%	89	%
Other		1,473			395			2,464		273	%	(40	%)
Federal funds purchased		2,016			1,013			4,189		99	%	(52	%)
Other short-term borrowings		10,912			9,613			4,890		14	%	123	%
Long-term debt		13,100			14,392			13,188		(9	%)	(1	%)
Total interest-bearing liabilities		89,440			85,990			80,977		4	%	10	%
Demand deposits		14,602			14,225			13,345		3	%	9	%
Other liabilities		4,620			3,726			3,959		24	%	17	%
Total liabilities		108,662			103,941			98,281		5	%	11	%
Shareholders’ equity		10,291			10,843			9,446		(5	%)	9	%
Total liabilities and shareholders’ equity	$	118,953		$	114,784		$	107,727		4	%	10	%
Yield Analysis
Interest-earning assets:
Commercial loans		4.96	%		5.46	%		6.99	%
Commercial mortgage loans		6.10	%		8.71	%		7.00	%
Commercial construction loans		5.32	%		6.97	%		6.75	%
Commercial leases		3.75	%		3.85	%		4.26	%
Residential mortgage loans		6.37	%		7.05	%		6.10	%
Home equity		5.08	%		5.76	%		7.20	%
Automobile loans		6.40	%		6.32	%		6.41	%
Credit card		10.68	%		9.93	%		9.31	%
Other consumer loans and leases		5.70	%		4.93	%		5.56	%
Total loans and leases		5.55	%		6.41	%		6.70	%
Taxable securities		4.91	%		4.81	%		5.29	%
Tax exempt securities		7.41	%		7.38	%		7.20	%
Other short-term investments		0.91	%		2.21	%		4.30	%
Total interest-earning assets		5.44	%		6.16	%		6.52	%
Interest-bearing liabilities:
Interest checking		0.54	%		0.78	%		1.91	%
Savings		1.27	%		1.29	%		2.69	%
Money market		1.29	%		1.67	%		3.80	%
Foreign office		0.95	%		1.37	%		3.74	%
Other time		3.62	%		3.31	%		4.53	%
Certificates - $100,000 and over		3.39	%		2.97	%		4.88	%
Other		1.15	%		1.83	%		4.57	%
Federal funds purchased		0.71	%		1.78	%		4.55	%
Other short-term borrowings		1.87	%		2.46	%		4.19	%
Long-term debt		4.13	%		3.63	%		5.36	%
Total interest-bearing liabilities		2.28	%		2.25	%		3.78	%
Ratios:
Net interest margin (taxable equivalent)		3.46	%		4.24	%		3.29	%
Net interest rate spread (taxable equivalent)		3.16	%		3.91	%		2.74	%
Interest-bearing liabilities to interest-earning assets		86.74	%		85.74	%		85.53	%

25

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)

	Year to Date						% Change
	December 2008			December 2007			Yr/Yr
Assets
Interest-earning assets:
Commercial loans	$	28,426		$	22,351		27	%
Commercial mortgage loans		12,776			11,078		15	%
Commercial construction loans		5,846			5,661		3	%
Commercial leases		3,680			3,683		—
Residential mortgage loans		10,993			10,489		5	%
Home equity		12,269			11,887		3	%
Automobile loans		8,925			10,704		(17	%)
Credit card		1,708			1,276		34	%
Other consumer loans and leases		1,212			1,219		(1	%)
Taxable securities		13,082			11,131		18	%
Tax exempt securities		342			499		(31	%)
Other short-term investments		621			404		54	%
Total interest-earning assets		99,880			90,382		11	%
Cash and due from banks		2,490			2,275		9	%
Other assets		13,411			10,613		26	%
Allowance for loan and lease losses		(1,485	)		(793	)	87	%
Total assets	$	114,296		$	102,477		12	%
Liabilities
Interest-bearing liabilities:
Interest checking	$	14,095		$	14,820		(5	%)
Savings		16,192			14,836		9	%
Money market		6,127			6,308		(3	%)
Foreign office		2,153			1,762		22	%
Other time		11,135			10,778		3	%
Certificates - $100,000 and over		9,531			6,466		47	%
Other		2,163			1,393		55	%
Federal funds purchased		2,975			3,646		(18	%)
Other short-term borrowings		7,785			3,244		140	%
Long-term debt		13,903			12,505		11	%
Total interest-bearing liabilities		86,059			75,758		14	%
Demand deposits		14,017			13,261		6	%
Other liabilities		4,182			3,876		8	%
Total liabilities		104,258			92,895		12	%
Shareholders’ equity		10,038			9,582		5	%
Total liabilities and shareholders’ equity	$	114,296		$	102,477		12	%
Yield Analysis
Interest-earning assets:
Commercial loans		5.35	%		7.33	%
Commercial mortgage loans		6.78	%		7.23	%
Commercial construction loans		5.86	%		7.44	%
Commercial leases		0.49	%		4.29	%
Residential mortgage loans		6.41	%		6.13	%
Home equity		5.71	%		7.54	%
Automobile loans		6.34	%		6.30	%
Credit card		9.77	%		10.39	%
Other consumer loans and leases		5.28	%		5.36	%
Total loans and leases		5.77	%		6.93	%
Taxable securities		4.91	%		5.08	%
Tax exempt securities		7.35	%		7.29	%
Other short-term investments		2.15	%		4.80	%
Total interest-earning assets		5.64	%		6.70	%
Interest-bearing liabilities:
Interest checking		0.89	%		2.14	%
Savings		1.38	%		3.07	%
Money market		1.92	%		4.26	%
Foreign office		1.60	%		4.15	%
Other time		3.69	%		4.59	%
Certificates - $100,000 and over		3.40	%		5.07	%
Other		2.42	%		4.91	%
Federal funds purchased		2.34	%		5.04	%
Other short-term borrowings		2.29	%		4.32	%
Long-term debt		4.01	%		5.50	%
Total interest-bearing liabilities		2.43	%		3.98	%
Ratios:
Net interest margin (taxable equivalent)		3.54	%		3.36	%
Net interest rate spread (taxable equivalent)		3.21	%		2.72	%
Interest-bearing liabilities to interest-earning assets		86.16	%		83.82	%

26

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)

	For the Three Months Ended
	December 2008			September 2008			June 2008			March 2008			December 2007
Assets
Interest-earning assets:
Commercial loans	$	30,227		$	28,284		$	28,557		$	26,617		$	24,526
Commercial mortgage loans		13,194			13,257			12,590			12,052			11,588
Commercial construction loans		5,990			6,110			5,700			5,577			5,544
Commercial leases		3,610			3,642			3,747			3,723			3,692
Residential mortgage loans		10,327			10,711			11,244			11,699			11,181
Home equity		12,677			12,534			12,012			11,846			11,843
Automobile loans		8,428			8,303			8,439			10,542			11,158
Credit card		1,748			1,720			1,703			1,660			1,461
Other consumer loans and leases		1,225			1,211			1,220			1,196			1,179
Taxable securities		14,882			13,310			12,554			11,560			11,360
Tax exempt securities		288			315			364			403			464
Other short-term investments		513			890			445			634			682
Total interest-earning assets		103,109			100,287			98,575			97,509			94,678
Cash and due from banks		2,897			2,468			2,357			2,236			2,424
Other assets		15,089			13,683			12,370			12,477			11,444
Allowance for loan and lease losses		(2,142	)		(1,654	)		(1,204	)		(931	)		(819	)
Total assets	$	118,953		$	114,784		$	112,098		$	111,291		$	107,727
Liabilities
Interest-bearing liabilities:
Interest checking	$	13,315		$	13,843		$	14,396		$	14,836		$	14,394
Savings		15,960			16,154			16,583			16,075			15,616
Money market		4,983			6,051			6,592			6,896			6,363
Foreign office		1,876			2,126			2,169			2,443			2,249
Other time		13,337			10,780			9,517			10,884			11,011
Certificates - $100,000 and over		12,468			11,623			8,143			5,835			6,613
Other		1,473			395			2,948			3,861			2,464
Federal funds purchased		2,016			1,013			3,643			5,258			4,189
Other short-term borrowings		10,912			9,613			5,623			4,937			4,890
Long-term debt		13,100			14,392			14,803			13,328			13,188
Total interest-bearing liabilities		89,440			85,990			84,417			84,353			80,977
Demand deposits		14,602			14,225			14,023			13,208			13,345
Other liabilities		4,620			3,726			4,029			4,351			3,959
Total liabilities		108,662			103,941			102,469			101,912			98,281
Shareholders’ equity		10,291			10,843			9,629			9,379			9,446
Total liabilities and shareholders’ equity	$	118,953		$	114,784		$	112,098		$	111,291		$	107,727
Yield Analysis
Interest-earning assets:
Commercial loans		4.96	%		5.46	%		5.04	%		5.99	%		6.99	%
Commercial mortgage loans		6.10	%		8.71	%		5.93	%		6.28	%		7.00	%
Commercial construction loans		5.32	%		6.97	%		5.44	%		5.64	%		6.75	%
Commercial leases		3.75	%		3.85	%		-9.77	%		4.30	%		4.26	%
Residential mortgage loans		6.37	%		7.05	%		6.10	%		6.14	%		6.10	%
Home equity		5.08	%		5.76	%		5.61	%		6.46	%		7.20	%
Automobile loans		6.40	%		6.32	%		6.23	%		6.41	%		6.41	%
Credit card		10.68	%		9.93	%		9.28	%		9.15	%		9.31	%
Other consumer loans and leases		5.70	%		4.93	%		4.97	%		5.52	%		5.56	%
Total loans and leases		5.55	%		6.41	%		4.97	%		6.13	%		6.70	%
Taxable securities		4.91	%		4.81	%		4.83	%		5.13	%		5.29	%
Tax exempt securities		7.41	%		7.38	%		7.32	%		7.31	%		7.20	%
Other short-term investments		0.91	%		2.21	%		2.12	%		3.08	%		4.30	%
Total interest-earning assets		5.44	%		6.16	%		4.95	%		5.99	%		6.52	%
Interest-bearing liabilities:
Interest checking		0.54	%		0.78	%		0.78	%		1.44	%		1.91	%
Savings		1.27	%		1.29	%		1.16	%		1.81	%		2.69	%
Money market		1.29	%		1.67	%		1.76	%		2.74	%		3.80	%
Foreign office		0.95	%		1.37	%		1.42	%		2.48	%		3.74	%
Other time		3.62	%		3.31	%		3.52	%		4.30	%		4.53	%
Certificates - $100,000 and over		3.39	%		2.97	%		3.29	%		4.44	%		4.88	%
Other		1.15	%		1.83	%		2.10	%		3.22	%		4.57	%
Federal funds purchased		0.71	%		1.78	%		2.08	%		3.26	%		4.55	%
Other short-term borrowings		1.87	%		2.46	%		2.15	%		3.02	%		4.19	%
Long-term debt		4.13	%		3.63	%		3.85	%		4.48	%		5.36	%
Total interest-bearing liabilities		2.28	%		2.25	%		2.23	%		2.99	%		3.78	%
Ratios:
Net interest margin (taxable equivalent)		3.46	%		4.24	%		3.04	%		3.41	%		3.29	%
Net interest rate spread (taxable equivalent)		3.16	%		3.91	%		2.72	%		3.00	%		2.74	%
Interest-bearing liabilities to interest-earning assets		86.74	%		85.74	%		85.64	%		86.51	%		85.53	%

27

Fifth Third Bancorp and Subsidiaries

Summary of Loans and Leases

$ in millions

(unaudited)

	For the Three Months Ended
	December 2008		September 2008		June 2008		March 2008		December 2007
Average Loans and Leases
Commercial:
Commercial loans	$	30,227	$	28,284	$	28,299	$	25,367	$	23,650
Commercial mortgage loans		13,189		13,257		12,590		12,016		11,497
Commercial construction loans		5,990		6,110		5,700		5,577		5,544
Commercial leases		3,610		3,641		3,747		3,723		3,692
Subtotal - commercial		53,016		51,292		50,336		46,683		44,383
Consumer:
Residential mortgage loans		9,335		9,681		9,922		10,395		9,943
Home equity		12,677		12,534		12,012		11,846		11,843
Automobile loans		8,428		8,303		8,439		9,278		9,445
Credit card		1,748		1,720		1,703		1,660		1,461
Other consumer loans and leases		1,165		1,165		1,125		1,083		1,099
Subtotal - consumer		33,353		33,403		33,201		34,262		33,791
Total average loans and leases (excluding held for sale)	$	86,369	$	84,695	$	83,537	$	80,945	$	78,174
Average loans held for sale		1,057		1,077		1,676		3,967		3,998
End of Period Loans and Leases
Commercial:
Commercial loans	$	29,197	$	29,424	$	28,958	$	26,590	$	24,813
Commercial mortgage loans		12,502		13,355		13,394		12,155		11,862
Commercial construction loans		5,114		6,002		6,007		5,592		5,561
Commercial leases		3,666		3,642		3,647		3,727		3,737
Subtotal - commercial		50,479		52,423		52,006		48,064		45,973
Consumer:
Residential mortgage loans		9,385		9,351		9,866		9,873		10,540
Home equity		12,752		12,599		12,421		11,803		11,874
Automobile loans		8,594		8,306		8,362		8,394		9,201
Credit card		1,811		1,688		1,717		1,686		1,591
Other consumer loans and leases		1,122		1,131		1,152		1,066		1,074
Subtotal - consumer		33,664		33,075		33,518		32,822		34,280
Total portfolio loans and leases	$	84,143	$	85,498	$	85,524	$	80,886	$	80,253
Core business activity		979		1,000		889		2,573		4,329
Portfolio management activity		473		—		—		—		—
Total loans held for sale		1,452		1,000		889		2,573		4,329
Operating lease equipment		463		369		364		317		353
Loans and Leases Serviced for Others (a):
Commercial loans		2,518		3,016		3,463		3,429		3,441
Commercial mortgage loans		312		290		279		250		260
Commercial construction loans		264		271		287		257		231
Commercial leases		170		167		174		182		179
Residential mortgage loans		40,378		39,777		38,740		36,487		34,475
Home equity		273		274		275		279		289
Automobile loans		1,946		2,138		2,358		2,619		—
Credit card		17		18		16		19		20
Other consumer loans and leases		7		8		5		20		17
Total loans and leases serviced for others		45,885		45,959		45,597		43,542		38,912
Total loans and leases serviced	$	131,943	$	132,826	$	132,374	$	127,318	$	123,847

(a) Fifth Third sells certain loans and leases and obtains servicing responsibilities

28

Fifth Third Bancorp and Subsidiaries

Regulatory Capital (a)

$ in millions

(unaudited)

	As of
	December 2008			September 2008			June 2008			March 2008			December 2007
Tier I capital:
Shareholders’ equity	$	12,077		$	10,696		$	10,754		$	9,352		$	9,161
Goodwill and certain other intangibles		(2,750	)		(3,729	)		(3,774	)		(2,571	)		(2,590	)
Unrealized (gains) losses		(109	)		54			141			(23	)		118
Qualifying trust preferred securities		2,763			2,763			2,763			2,302			2,303
Other		(57	)		(50	)		(55	)		(67	)		(68	)
Total tier I capital	$	11,924		$	9,734		$	9,829		$	8,993		$	8,924
Total risk-based capital:
Tier I capital	$	11,924		$	9,734		$	9,829		$	8,993		$	8,924
Qualifying allowance for credit losses		1,413			1,415			1,429			1,327			1,051
Qualifying subordinated notes		3,309			2,824			2,773			2,884			1,758
Total risk-based capital	$	16,646		$	13,973		$	14,031		$	13,204		$	11,733
Risk-weighted assets	$	112,572		$	113,601		$	115,481		$	116,451		$	115,529
Regulatory capital ratios:
Fifth Third Bancorp
Tier I capital		10.59	%		8.57	%		8.51	%		7.72	%		7.72	%
Total risk-based capital		14.79	%		12.30	%		12.15	%		11.34	%		10.16	%
Tier I leverage		10.27	%		8.77	%		9.08	%		8.28	%		8.50	%
Fifth Third Bank
Tier I capital		8.13	%		8.63	%		8.36	%		8.30	%		8.13	%
Total risk-based capital		10.92	%		11.35	%		11.02	%		10.71	%		10.39	%
Tier I leverage		7.03	%		7.64	%		7.65	%		8.07	%		8.11	%
Fifth Third Bank (Michigan)
Tier I capital		11.06	%		9.65	%		9.68	%		9.02	%		9.09	%
Total risk-based capital		12.95	%		11.50	%		11.51	%		10.83	%		10.13	%
Tier I leverage		10.45	%		10.04	%		10.22	%		9.85	%		10.55	%
Fifth Third Bank N.A.
Tier I capital		16.33	%		14.59	%		11.13	%		21.10	%		21.07	%
Total risk-based capital		17.59	%		15.35	%		11.65	%		22.03	%		21.76	%
Tier I leverage		14.11	%		14.17	%		26.53	%		24.18	%		25.59	%

(a) Current period regulatory capital data and ratios are estimated

29

Fifth Third Bancorp and Subsidiaries

Summary of Credit Loss Experience

$ in millions

(unaudited)

	For the Three Months Ended
	December 2008			September 2008			June 2008			March 2008			December 2007
Average loans and leases (excluding held-for-sale):
Commercial loans	$	30,227		$	28,284		$	28,299		$	25,367		$	23,650
Commercial mortgage loans		13,189			13,257			12,590			12,016			11,497
Commercial construction loans		5,990			6,110			5,700			5,577			5,544
Commercial leases		3,610			3,641			3,747			3,723			3,692
Residential mortgage loans		9,335			9,681			9,922			10,395			9,943
Home equity		12,677			12,534			12,012			11,846			11,843
Automobile loans		8,428			8,303			8,439			9,278			9,445
Credit card		1,748			1,720			1,703			1,660			1,461
Other consumer loans and leases		1,165			1,165			1,125			1,083			1,099
Total average loans and leases (excluding held-for-sale)	$	86,369		$	84,695		$	83,537		$	80,945		$	78,174
Losses charged off:
Commercial loans	$	(430	)	$	(89	)	$	(109	)	$	(39	)	$	(50	)
Commercial mortgage loans		(468	)		(94	)		(22	)		(33	)		(16	)
Commercial construction loans		(541	)		(88	)		(49	)		(72	)		(12	)
Commercial leases		—			—			—			—			—
Residential mortgage loans		(68	)		(77	)		(63	)		(34	)		(18	)
Home equity		(55	)		(58	)		(57	)		(42	)		(35	)
Automobile loans		(50	)		(40	)		(35	)		(44	)		(37	)
Credit card		(32	)		(25	)		(23	)		(21	)		(17	)
Other consumer loans and leases		(8	)		(10	)		(7	)		(8	)		(8	)
Total losses		(1,652	)		(481	)		(365	)		(293	)		(193	)
Recoveries of losses previously charged off:
Commercial loans		8			4			2			3			2
Commercial mortgage loans		3			—			1			—			1
Commercial construction loans		2			—			—			—			—
Commercial leases		—			—			—			—			—
Residential mortgage loans		—			—			—			—			—
Home equity		1			3			3			1			3
Automobile loans		7			8			9			9			7
Credit card		2			1			2			1			2
Other consumer loans and leases		2			2			4			3			4
Total recoveries		25			18			21			17			19
Net losses charged off:
Commercial loans		(422	)		(85	)		(107	)		(36	)		(48	)
Commercial mortgage loans		(465	)		(94	)		(21	)		(33	)		(15	)
Commercial construction loans		(539	)		(88	)		(49	)		(72	)		(12	)
Commercial leases		—			—			—			—			—
Residential mortgage loans		(68	)		(77	)		(63	)		(34	)		(18	)
Home equity		(54	)		(55	)		(54	)		(41	)		(32	)
Automobile loans		(43	)		(32	)		(26	)		(35	)		(30	)
Credit card		(30	)		(24	)		(21	)		(20	)		(15	)
Other consumer loans and leases		(6	)		(8	)		(3	)		(5	)		(4	)
Total net losses charged off	$	(1,627	)	$	(463	)	$	(344	)	$	(276	)	$	(174	)
Net charge-off Ratios:
Commercial loans		5.55	%		1.19	%		1.52	%		0.57	%		0.80	%
Commercial mortgage loans		14.05	%		2.82	%		0.66	%		1.10	%		0.52	%
Commercial construction loans		35.81	%		5.71	%		3.46	%		5.20	%		0.83	%
Commercial leases		(0.04	%)		(0.03	%)		(0.01	%)		—			(0.01	%)
Residential mortgage loans		2.90	%		3.16	%		2.57	%		1.33	%		0.72	%
Home equity		1.68	%		1.77	%		1.83	%		1.39	%		1.10	%
Automobile loans		2.00	%		1.51	%		1.21	%		1.52	%		1.27	%
Credit card		6.82	%		5.45	%		4.93	%		4.78	%		3.91	%
Other consumer loans and leases		2.41	%		2.84	%		1.31	%		1.78	%		1.86	%
Total net charge-off ratio		7.50	%		2.17	%		1.66	%		1.37	%		0.89	%

30

Fifth Third Bancorp and Subsidiaries

Asset Quality

$ in millions

(unaudited)

	For the Three Months Ended
	December 2008			September 2008			June 2008			March 2008			December 2007
Allowance for Credit Losses
Allowance for loan and lease losses, beginning	$	2,058		$	1,580		$	1,205		$	937		$	827
Total net losses charged off		(1,627	)		(463	)		(344	)		(276	)		(174	)
Provision for loan and lease losses		2,356			941			719			544			284
Allowance for loan and lease losses, ending	$	2,787		$	2,058		$	1,580		$	1,205		$	937
Reserve for unfunded commitments, beginning	$	132		$	115		$	103		$	95		$	79
Provision for unfunded commitments		63			17			10			8			13
Acquisitions		—			—			2			—			3
Reserve for unfunded commitments, ending	$	195		$	132		$	115		$	103		$	95
Components of allowance for credit losses:
Allowance for loan and lease losses	$	2,787		$	2,058		$	1,580		$	1,205		$	937
Reserve for unfunded commitments		195			132			115			103			95
Total allowance for credit losses	$	2,982		$	2,190		$	1,695		$	1,308		$	1,032
Nonperforming Assets and Delinquent Loans
Nonaccrual loans and leases:
Commercial loans	$	541		$	550		$	407		$	300		$	175
Commercial mortgage loans		482			724			524			312			243
Commercial construction loans		362			636			537			408			249
Commercial leases		21			23			18			11			5
Residential mortgage loans		259			216			142			138			92
Home equity		26			27			35			42			45
Automobile loans		5			3			7			13			3
Other consumer loans and leases		—			—			—			—			1
Total nonaccrual loans and leases		1,696			2,179			1,670			1,224			813
Restructured loans and leases		574			427			318			164			80
Total nonperforming loans and leases		2,270			2,606			1,988			1,388			893
Repossessed personal property		24			24			22			22			21
Other real estate owned		206			198			190			182			150
Total nonperforming assets (a)		2,500			2,828			2,200			1,592			1,064
Nonaccrual loans held for sale		473			—			—			—			—
Total nonperforming assets including loans held for sale	$	2,973		$	2,828		$	2,200		$	1,592		$	1,064
Ninety days past due loans and leases
Commercial loans	$	76		$	109		$	54		$	73		$	44
Commercial mortgage loans		136			157			150			97			73
Commercial construction loans		74			84			53			49			67
Commercial leases		4			3			1			3			4
Residential mortgage loans		198			185			228			192			186
Home equity		96			72			76			76			72
Automobile loans		21			16			12			14			13
Credit card		56			44			33			34			31
Other consumer loans and leases		1			1			1			1			1
Total ninety days past due loans and leases	$	662		$	671		$	608		$	539		$	491
Ratios
Net losses charged off as a percent of average loans and leases		7.50	%		2.17	%		1.66	%		1.37	%		0.89	%
Allowance for loan and lease losses:
As a percent of loan and lease losses		3.31	%		2.41	%		1.85	%		1.49	%		1.17	%
As a percent of nonperforming loans and leases (a)		123	%		79	%		79	%		87	%		105	%
As a percent of nonperforming assets (a)		111	%		73	%		72	%		76	%		88	%
Nonperforming loans and leases as a percent of portfolio loans, leases and other assets, including other real estate owned (a)		2.69	%		3.04	%		2.32	%		1.71	%		1.11	%
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned (a)		2.96	%		3.30	%		2.57	%		1.96	%		1.32	%
Nonperforming assets as a percent of total loans, leases and other assets, including other real estate owned		3.46	%		3.26	%		2.54	%		1.90	%		1.26	%

(a) Does not include nonaccrual loans held for sale

31

Fifth Third Bancorp and Subsidiaries

Segment Presentation

$ in millions

(unaudited)

For the three months ended December 31, 2008 ($ in millions)	Commercial Banking		Branch Banking		Consumer Lending		Processing Solutions		Investment Advisors		Other/ Eliminations		Total
Net interest income (a)	435		436		136		4		46		(160	)	897
Provision for loan and lease losses	(1,347	)	(125	)	(121	)	(5	)	(27	)	(731	)	(2,356	)
Net interest income after provision for loan and lease losses	(912	)	311		15		(1	)	19		(891	)	(1,459	)
Total noninterest income	175		196		76		216		87		(108	)	642
Total noninterest expense	(999	)	(324	)	(326	)	(143	)	(91	)	(139	)	(2,022	)
Net income (loss) before taxes	(1,736	)	183		(235	)	72		15		(1,138	)	(2,839	)
Applicable income taxes (a)	637		(64	)	83		(26	)	(5	)	72		697
Net income (loss)	(1,099	)	119		(152	)	46		10		(1,066	)	(2,142	)
Dividends on preferred stock	—		—		—		—		—		42		42
Net income (loss) available to common shareholders	(1,099	)	119		(152	)	46		10		(1,108	)	(2,184	)
For the three months ended September 30, 2008 ($ in millions)	Commercial Banking		Branch Banking		Consumer Lending		Processing Solutions		Investment Advisors		Other/ Eliminations		Total
Net interest income (a)	502		442		141		1		46		(64	)	1,068
Provision for loan and lease losses	(235	)	(87	)	(124	)	(3	)	(12	)	(480	)	(941	)
Net interest income after provision for loan and lease losses	267		355		17		(2	)	34		(544	)	127
Total noninterest income	161		212		73		213		96		(38	)	717
Total noninterest expense	(228	)	(310	)	(81	)	(144	)	(90	)	(114	)	(967	)
Net income (loss) before taxes	200		257		9		67		40		(696	)	(123	)
Applicable income taxes (a)	(45	)	(91	)	(3	)	(24	)	(14	)	244		67
Net income (loss)	155		166		6		43		26		(452	)	(56	)
Dividends on preferred stock	—		—		—		—		—		25		25
Net income (loss) available to common shareholders	155		166		6		43		26		(477	)	(81	)
For the three months ended June 30, 2008 ($ in millions)	Commercial Banking		Branch Banking		Consumer Lending		Processing Solutions		Investment Advisors		Other/ Eliminations		Total
Net interest income (a)	350		400		104		—		47		(157	)	744
Provision for loan and lease losses	(156	)	(75	)	(104	)	(3	)	(5	)	(376	)	(719	)
Net interest income after provision for loan and lease losses	194		325		—		(3	)	42		(533	)	25
Total noninterest income	158		212		85		216		101		(50	)	722
Total noninterest expense	(216	)	(308	)	(87	)	(141	)	(99	)	(7	)	(858	)
Net income (loss) before taxes	136		229		(2	)	72		44		(590	)	(111	)
Applicable income taxes (a)	(22	)	(81	)	1		(25	)	(16	)	52		(91	)
Net Income (loss)	114		148		(1	)	47		28		(538	)	(202	)
For the three months ended March 31, 2008 ($ in millions)	Commercial Banking		Branch Banking		Consumer Lending		Processing Solutions		Investment Advisors		Other/ Eliminations		Total
Net interest income (a)	359		384		117		1		45		(80	)	826
Provision for loan and lease losses	(126	)	(64	)	(77	)	(3	)	(6	)	(268	)	(544	)
Net interest income after provision for loan and lease losses	233		320		40		(2	)	39		(348	)	282
Total noninterest income	160		191		112		198		102		101		864
Total noninterest expense	(222	)	(296	)	(90	)	(136	)	(95	)	124		(715	)
Net income before taxes	171		215		62		60		46		(123	)	431
Applicable income taxes (a)	(36	)	(76	)	(22	)	(21	)	(16	)	26		(145	)
Net Income (loss)	135		139		40		39		30		(97	)	286
For the three months ended December 31, 2007 ($ in millions)	Commercial Banking		Branch Banking		Consumer Lending		Processing Solutions		Investment Advisors		Other/ Eliminations		Total
Net interest income (a)	335		383		105		(3	)	40		(75	)	785
Provision for loan and lease losses	(57	)	(58	)	(55	)	(2	)	(3	)	(109	)	(284	)
Net interest income after provision for loan and lease losses	278		325		50		(5	)	37		(184	)	501
Total noninterest income	161		208		42		202		100		(204	)	509
Total noninterest expense	(211	)	(292	)	(64	)	(135	)	(97	)	(141	)	(940	)
NI Before Tax	228		241		28		62		40		(529	)	70
Applicable income taxes (a)	(57	)	(85	)	(10	)	(22	)	(14	)	134		(54	)
Net Income (loss)	171		156		18		40		26		(395	)	16

(a) Includes taxable equivalent adjustments of $5 million for the three months ended December 31, 2008 and September 30, 2008 and $6 million for the three months ended June 30, 2008, March 31, 2008 and December 31, 2007.

32