Fifth Third Bancorp 8K Announces Second Quarter 2010 Earnings | FITB 22 Jul 10

Exhibit 99.1

LOGO


		News Release

CONTACTS:	Jim Eglseder (Investors)	FOR IMMEDIATE RELEASE
	(513) 534-8424	July 22, 2010
	Rich Rosen (Investors)
	(513) 534-3307
	Debra DeCourcy, APR (Media)
	(513) 579-4153

FIFTH THIRD BANCORP ANNOUNCES SECOND QUARTER 2010 EARNINGS

Net income of $192 million driven by further reductions in credit costs

•

2Q10 net income of $192 million versus 1Q10 net loss of $10 million

•

2Q10 net income available to common shareholders of $130 million, or $0.16 per diluted share

•

Per share results include preferred dividends, which reduced net income available to common shareholders by $0.08 per diluted share

•

Significantly improved credit results

•

Net charge-off ratio of 2.26 percent, down 75 bps sequentially from 3.01 percent; net charge-offs declined $148 million, or 25 percent, sequentially (lowest level of net charge-offs since 2Q08)

•

Nonperforming assets declined 5 percent and nonperforming loans declined 8 percent sequentially (lowest levels since the first half of 2009)

•

Total delinquencies (includes loans and leases 30-89 days past due and 90 days past due) declined 17 percent sequentially (lowest level since 2Q07)

•

Provision expense reflecting $434 million of net charge offs and $109 million reduction in the allowance for loan and lease losses

•

Loan loss allowance of 4.85 percent of loans, 146 percent of nonperforming loans and leases, and more than two times 2Q10 annualized net charge-offs

•

Pre-provision net revenue (PPNR)* of $567 million, consistent with strong 1Q10 levels

•

PPNR represented 174 percent of provision expense and 131 percent of net charge-offs

•

Liquidity position remains very strong

•

Average loans and leases decreased 2 percent sequentially, due to continued low loan demand

•

Average core deposits up 12 percent year-over-year and up 1 percent sequentially; sequential comparison reflects run-off of lower value institutional public funds

•

Wholesale funding down 40 percent from 2Q09

•

Strong capital ratios

•

Tier 1 common ratio of 7.22 percent up 25 bps sequentially, Leverage ratio of 12.21 percent up 21 bps sequentially, Tier 1 ratio of 13.75 percent up 35 bps sequentially, total capital ratio of 18.11 percent up 56 bps sequentially

•

Tangible common equity ratio of 6.55 percent excluding unrealized gains/losses and 6.91 percent including unrealized gains/losses

•

Book value per share of $12.65 increased 3 percent sequentially; tangible book value per share of $9.51 increased 4 percent sequentially

•

Extended $20 billion of new and renewed credit in the second quarter

*	Pre-provision net revenue (PPNR): net interest income plus noninterest income minus noninterest expense.

Fifth Third Bancorp (Nasdaq: FITB) today reported second quarter 2010 net income of $192 million compared with a net loss of $10 million in the first quarter and net income of $882 million in the second quarter of 2009. After preferred dividends, the second quarter 2010 net income available to common shareholders was $130 million or $0.16 per diluted share, compared with a first quarter net loss of $72 million or $0.09 per diluted share, and net income of $856 million or $1.15 per diluted share in the second quarter of 2009.

For comparison purposes, second quarter 2009 results included a pre-tax gain of $1,764 million related to the processing business sale, and a pre-tax charge of $55 million related to the special FDIC deposit insurance fund assessment. Second quarter 2009 net income available to common shareholders also included a $35 million benefit, recorded as a reduction to preferred dividend expense, reflecting the excess of the carrying value of preferred shares over the fair value of the common shares and cash exchanged through our tender offer for Series G preferred stock.

Earnings Highlights


	For the Three Months Ended															% Change
	June 2010			March 2010			December 2009			September 2009			June 2009			Seq		Yr/Yr
Earnings ($ in millions)
Net income (loss)	$	192		($	10	)	($	98	)	($	97	)	$	882		NM		(78	%)
Net income (loss) available to common shareholders	$	130		($	72	)	($	160	)	($	159	)	$	856		NM		(85	%)
Common Share Data
Earnings per share, basic		0.16			(0.09	)		(0.20	)		(0.20	)		1.35		NM		(88	%)
Earnings per share, diluted		0.16			(0.09	)		(0.20	)		(0.20	)		1.15		NM		(86	%)
Cash dividends per common share		0.01			0.01			0.01			0.01			0.01		—		—
Financial Ratios
Return on average assets		0.68	%		(.04	%)		(.35	%)		(.34	%)		3.05	%	NM		(78	%)
Return on average common equity		5.2			(3.0	)		(6.3	)		(6.1	)		41.2		NM		(87	%)
Tier I capital		13.75			13.40			13.31			13.19			12.90		3	%	7	%
Tier I common equity		7.22			6.97			7.00			7.01			6.94		3	%	7	%
Net interest margin (a)		3.57			3.63			3.55			3.43			3.26		(2	%)	10	%
Efficiency (a)		62.1			62.6			63.1			50.8			29.9		(1	%)	108	%
Common shares outstanding (in thousands)		796,320			794,816			795,068			795,316			795,313		—		—
Average common shares outstanding (in thousands):
Basic		790,839			790,473			790,442			790,334			629,789		—		26	%
Diluted		802,255			790,473			790,442			790,334			718,245		1	%	12	%

(a)	Presented on a fully taxable equivalent basis

NM: Not Meaningful

“Second quarter results marked a solid return to profitability, reflecting continued strong pre-provision earnings and significant further improvement in credit results,” said Kevin Kabat, president and CEO of Fifth Third Bancorp.

“Credit trends remained favorable, reflecting the benefit of our actions to aggressively address problems and continued efforts to improve the quality of originations and proactively resolve credit issues. Delinquent loans declined 17 percent to the lowest level since 2007. Nonperforming loans declined 8 percent to the lowest level we’ve seen since mid-2009. The net charge-off ratio of 2.26 percent is at the lowest level experienced since 2008. Net charge-offs declined $148 million, or 25 percent, from last quarter and are down over $300 million,

or more than 40%, from their peak in the third quarter of 2009. These positive developments contributed to a reduction in our loan loss reserves. Reserve coverage levels remain very strong relative to peers – reserves were 4.85 percent of loans, and other coverage levels increased, with reserves of 146 percent of nonperforming loans and 2.1 times second quarter annualized net charge-offs. We currently expect provision expense and reserve levels to trend down given our expectation of a stable to improving economic environment and credit trends.

Operating results were consistent with those reported in the first quarter. Pre-provision net revenue of $567 million reflected better than expected fee income results and lower expenses, which were partially offset by lower net interest income. Market developments during the quarter, particularly in Europe and in U.S. equity markets, led to an increased level of caution among potential borrowers and investors. This resulted in a substantial decline in market interest rates and a continuation of weak loan demand. As noted, fee income results remained strong. Corporate banking revenue grew 14% and card and processing revenue was up 15% sequentially, partially offset by lower mortgage banking revenue. Total noninterest expenses were down 2% sequentially. Average core deposits were up 12% over 2009 levels and wholesale funding levels were down 40% reflecting our strong liquidity position.

Capital levels remained strong. The Tier 1 common equity ratio was 7.2 percent, Tier 1 capital was 13.8 percent, and Total capital was 18.1 percent. We expect ongoing profitability to produce continued organic growth in capital levels.

The finalization of the financial reform bill is a significant development for the industry. The elements of the bill addressing financial stability are largely focused on issues related to systemic risks and capital markets-related activities. We would not expect these elements to have significant negative effects on Fifth Third, given its traditional regional banking model, although they will involve higher compliance costs. Other elements, particularly the debit interchange legislation, are likely to negatively affect our revenue and earnings although the rules are yet to be written. We expect to adapt to these changes while ensuring that we continue to provide beneficial payment services to our customers and while generating an appropriate return for those services. Additionally, capital treatment of trust preferred securities will be impacted on a phased-in basis in 2013, which we expect to deal with through capital management over time. We look forward to receiving clarity on these issues through rule-making and on changes to the Basel capital framework for financial institutions, which we also would currently expect to be manageable for Fifth Third and to have a relatively lower impact on us given our business model compared with large and global banks.

Ultimately, we believe that the evolution of the financial landscape plays to our strengths, and while capital levels and costs will be higher going forward, we are in a strong position to compete in a setting that places greater emphasis on traditional lending and deposit-taking activities.”

Income Statement Highlights


	For the Three Months Ended													% Change
	June 2010		March 2010			December 2009			September 2009			June 2009		Seq		Yr/Yr
Condensed Statements of Income ($ in millions)
Net interest income (taxable equivalent)	$	887	$	901		$	882		$	874		$	836	(2	%)	6	%
Provision for loan and lease losses		325		590			776			952			1,041	(45	%)	(69	%)
Total noninterest income		620		627			651			851			2,583	(1	%)	(76	%)
Total noninterest expense		935		956			967			876			1,021	(2	%)	(8	%)

Income (loss) before income taxes (taxable equivalent)		247		(18	)		(210	)		(103	)		1,357	NM		(82	%)

Taxable equivalent adjustment		5		4			4			5			5	25	%	—
Applicable income taxes		50		(12	)		(116	)		(11	)		470	NM		(89	%)

Net income (loss)		192		(10	)		(98	)		(97	)		882	NM		(78	%)
Dividends on preferred stock		62		62			62			62			26	—		138	%

Net income (loss) available to common shareholders		130		(72	)		(160	)		(159	)		856	NM		(85	%)

Earnings per share, diluted	$	0.16	($	0.09	)	($	0.20	)	($	0.20	)	$	1.15	NM		(86	%)

NM: Not Meaningful

Net Interest Income


	For the Three Months Ended															% Change
	June 2010			March 2010			December 2009			September 2009			June 2009			Seq		Yr/Yr
Interest Income ($ in millions)
Total interest income (taxable equivalent)	$	1,121		$	1,147		$	1,147		$	1,174		$	1,184		(2	%)	(5	%)
Total interest expense		234			246			265			300			348		(5	%)	(33	%)

Net interest income (taxable equivalent)	$	887		$	901		$	882		$	874		$	836		(2	%)	6	%

Average Yield
Yield on interest-earning assets		4.51	%		4.62	%		4.61	%		4.61	%		4.62	%	(2	%)	(2	%)
Yield on interest-bearing liabilities		1.23	%		1.29	%		1.39	%		1.51	%		1.67	%	(5	%)	(26	%)

Net interest rate spread (taxable equivalent)		3.28	%		3.33	%		3.22	%		3.10	%		2.95	%	(2	%)	11	%

Net interest margin (taxable equivalent)		3.57	%		3.63	%		3.55	%		3.43	%		3.26	%	(2	%)	10	%
Average Balances ($ in millions)
Loans and leases, including held for sale	$	78,808		$	80,136		$	79,920		$	82,888		$	84,996		(2	%)	(7	%)
Total securities and other short-term investments		20,890			20,559			18,869			18,065			17,762		2	%	18	%
Total interest-bearing liabilities		76,415			77,655			75,815			78,759			83,407		(2	%)	(8	%)
Shareholders’ equity		13,563			13,518			13,724			13,885			12,490		—		9	%

Net interest income of $887 million on a taxable equivalent basis decreased 2 percent from $901 million in the first quarter of 2010. The net interest margin was 3.57 percent, down 6 bps from 3.63 percent in the previous quarter. The decline in net interest income reflected continued weak loan demand, prepayments of securities, the deferral of reinvestment of securities cash flows into our investment portfolio, and resulting excess liquidity held in low-yielding cash equivalents. These negative effects were partially offset by reduced funding costs, a deposit mix shift to lower cost core deposits from higher priced term deposits, and wider Libor spreads. Second quarter 2010 results were negatively affected by $6 million, or 3 bps, of higher premium amortization, including the effect of GSE repurchases of delinquent loans out of mortgage-backed securities. The net interest margin also reflected 2 bps reduction due to a higher day count in the current quarter and 2 bps reduction due to lower purchase accounting accretion on acquired loans.

Compared with the second quarter of 2009, net interest income increased $51 million and the net interest margin increased 31 bps, largely the result of the mix shift from higher cost term deposits to lower cost

deposit products throughout the year, which more than offset the effect of a $20 million, or 8 bps, reduction in purchase accounting accretion on acquired loans and lower loan balances.

Average Securities

Average securities and other short-term investments were $20.9 billion as of the second quarter of 2010 compared with $20.6 billion in the previous quarter and $17.8 billion in the second quarter of 2009. The increase from the prior quarter was driven by a $1.1 billion increase in average short-term investments, reflecting excess liquidity, which more than offset an $810 million decrease in investment securities resulting from prepayments and cash flows that were not reinvested. The year-over-year increase was driven by a $3.5 billion increase in average short-term investments.

Average Loans


	For the Three Months Ended										% Change
	June 2010		March 2010		December 2009		September 2009		June 2009		Seq		Yr/Yr
Average Portfolio Loans and Leases ($ in millions)
Commercial:
Commercial and industrial loans	$	26,176	$	26,294	$	25,816	$	27,400	$	28,027	—		(7	%)
Commercial mortgage		11,659		11,708		11,981		12,269		12,463	—		(6	%)
Commercial construction		3,160		3,700		4,024		4,337		4,672	(15	%)	(32	%)
Commercial leases		3,336		3,467		3,574		3,522		3,512	(4	%)	(5	%)

Subtotal - commercial loans and leases		44,331		45,169		45,395		47,528		48,674	(2	%)	(9	%)

Consumer:
Residential mortgage loans		7,805		7,976		8,129		8,355		8,713	(2	%)	(10	%)
Home equity		12,102		12,338		12,291		12,452		12,636	(2	%)	(4	%)
Automobile loans		10,170		10,185		8,973		8,871		8,692	—		17	%
Credit card		1,859		1,940		1,982		1,955		1,863	(4	%)	—
Other consumer loans and leases		706		773		831		899		995	(9	%)	(29	%)

Subtotal - consumer loans and leases		32,642		33,212		32,206		32,532		32,899	(2	%)	(1	%)

Total average loans and leases (excluding held for sale)	$	76,973	$	78,381	$	77,601	$	80,060	$	81,573	(2	%)	(6	%)
Average loans held for sale		1,834		1,756		2,319		2,828		3,422	4	%	(46	%)

Average portfolio loan and lease balances declined 2 percent sequentially and 6 percent from the second quarter of 2009.

Average commercial loan and lease balances declined 2 percent sequentially and 9 percent from the second quarter of 2009. Sequential and year-over-year declines were impacted by continued low loan demand and lower commercial line utilization. Commercial and industrial (C&I) average loans were flat sequentially and declined 7 percent from the previous year. Year-over-year comparisons were affected by the addition of $724 million in C&I balances that were consolidated on January 1, 2010 due to an accounting change in U.S. GAAP. Average commercial mortgage and commercial construction loan balances declined by a combined 4 percent sequentially and 14 percent from the same period the previous year, reflecting low customer demand and tighter underwriting standards. Line usage, on an end of period basis for the second quarter, remained fairly stable at 32.1 percent of committed lines versus 32.6 percent in the first quarter of 2010 and 32.7 percent in the fourth quarter of 2009. Line utilization was 38.5 percent in the second quarter of 2009.

Average consumer loan and lease balances decreased 2 percent sequentially and 1 percent from the second quarter of 2009. The sequential decline reflected lower demand for consumer loans and leases, while year-over-year declines in residential mortgage loans and home equity loans were partially offset by growth in auto loans. The year-over-year comparisons were impacted by $1.2 billion of securitized auto loans and $263 million of securitized home equity loans that were consolidated on January 1, 2010 due to the previously mentioned accounting change.

Nearly all of Fifth Third’s mortgages are originated to be sold to agencies and are not reflected in portfolio loans or portfolio loan growth. Period end warehoused residential mortgage loans held-for-sale increased to $2.0 billion in the second quarter.

Average Deposits


	For the Three Months Ended										% Change
	June 2010		March 2010		December 2009		September 2009		June 2009		Seq		Yr/Yr
Average Deposits ($ in millions)
Demand deposits	$	19,406	$	18,822	$	18,137	$	17,059	$	16,689	3	%	16	%
Interest checking		18,652		19,533		16,324		14,869		14,837	(5	%)	26	%
Savings		19,446		18,469		17,540		16,967		16,705	5	%	16	%
Money market		4,679		4,622		4,279		4,280		4,167	1	%	12	%
Foreign office (a)		3,325		2,757		2,516		2,432		1,717	21	%	94	%

Subtotal - Transaction deposits		65,508		64,203		58,796		55,607		54,115	2	%	21	%

Other time		11,336		12,059		13,049		14,264		14,612	(6	%)	(22	%)

Subtotal - Core deposits		76,844		76,262		71,845		69,871		68,727	1	%	12	%

Certificates - $100,000 and over		6,354		7,049		8,200		10,055		11,455	(10	%)	(45	%)
Other		5		8		51		95		240	(36	%)	(98	%)

Total deposits	$	83,203	$	83,319	$	80,096	$	80,021	$	80,422	—		3	%

(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 12 percent from the second quarter of 2009. Consumer CDs declined while average transaction deposits increased over these periods. Average transaction deposits excluding consumer time deposits were up 2 percent from the first quarter of 2010 and increased 21 percent over the prior year quarter. Sequential growth in demand deposit balances, savings and foreign office deposits was partially offset by lower interest checking balances, primarily in public funds. The year-over-year increase was driven by growth across all transaction deposit account categories.

Retail average transaction deposits increased 5 percent sequentially and 12 percent from the second quarter of 2009 and reflected growth in savings, interest checking, and demand deposit balances.

Commercial average transaction deposits decreased 2 percent sequentially and increased 41 percent from the previous year. Excluding public funds balances, commercial average transaction deposits increased 8 percent sequentially and increased 46 percent from the second quarter of 2009 driven by increased demand deposit, interest checking, and foreign office deposit balances, reflecting excess customer liquidity. Average public funds balances were $6.5 billion, down $1.8 billion sequentially and up $1.5 billion from the second quarter of 2009. The sequential decline was largely due to adjustments in pricing reflecting our excess liquidity position, particularly with single-product relationships that do not contribute appreciably to net interest

income. The annual increase reflected the effect of larger peers opting out of the Transaction Account Guarantee Program (TAG) late last year. Given our liquidity position and our opting out of the TAG program on June 30, 2010, we would expect public funds balances to continue to decline in the third quarter.

Consumer CDs included in core deposits declined 6 percent sequentially and 22 percent year-over-year, reflecting maturities of higher priced, shorter-term CDs largely originated in the second half of 2008 as well as current pricing strategies given our strong liquidity position.

Noninterest Income


	For the Three Months Ended											% Change
	June 2010		March 2010		December 2009		September 2009			June 2009		Seq		Yr/Yr
Noninterest Income ($ in millions)
Service charges on deposits	$	149	$	142	$	159	$	164		$	162	5	%	(8	%)
Corporate banking revenue		93		81		89		77			93	14	%	—
Mortgage banking net revenue		114		152		132		140			147	(25	%)	(23	%)
Investment advisory revenue		87		91		86		82			79	(4	%)	10	%
Card and processing revenue		84		73		76		74			243	15	%	(65	%)
Gain on sale of processing business		—		—		—		(6	)		1,764	NM		(100	%)
Other noninterest income		85		74		107		312			49	15	%	75	%
Securities gains (losses), net		8		14		2		8			5	(43	%)	60	%
Securities gains, net - non-qualifying hedges on mortgage servicing rights		—		—		—		—			41	NM		(100	%)

Total noninterest income	$	620	$	627	$	651	$	851		$	2,583	(1	%)	(76	%)

NM: Not Meaningful

Noninterest income of $620 million decreased $7 million, or 1 percent, sequentially and $2.0 billion from a year ago. Sequential growth in corporate banking revenue, card and processing revenue, and deposit fees was more than offset by lower mortgage banking revenue. The decline from a year ago was driven by the $1.8 billion gain from the completion of the processing business sale in the second quarter of 2009 and the inclusion in prior year results of the revenue divested in that transaction.

Noninterest income was impacted by $10 million in positive valuation adjustments on warrants and puts related to the processing business sale, compared with a $2 million negative adjustment in the first quarter. Both the second quarter and first quarter of 2010 results included $13 million in revenue associated with the transition service agreement (TSA) entered into as part of our processing business sale, under which the Bancorp provides services to the processing business to support its operations during the deconversion period. First quarter of 2010 results included a $9 million reduction in income due to the increase in fair value of the liability related to the total return swap entered into as part of the 2009 sale of Visa, Inc. Class B shares. Second quarter of 2009 results included a $1.8 billion gain from the completion of the processing business sale and a $15 million write-down on a facility that we have since vacated. Excluding these items, as well as investment securities gains/losses in all periods, noninterest income decreased $22 million, or 4 percent, from the previous quarter, driven by weaker mortgage banking revenue partially offset by strong corporate banking revenue and card and processing revenue. On the same basis, the $199 million, or 25 percent, decrease from the second quarter of 2009 was largely due to merchant processing and financial

institution revenue in the second quarter of 2009 that was included with the processing business sale on June 30, 2009, as well as lower mortgage-related revenue.

Service charges on deposits of $149 million increased 5 percent sequentially and decreased 8 percent compared with the same quarter last year. Retail service charges increased 12 percent from the previous quarter and declined 11 percent compared with the second quarter of 2009. The sequential increase was largely driven by seasonal weakness in the first quarter. The year-over-year decline was due to a reduction of NSF fees related to a lower number of occurrences. Commercial service charges decreased 1 percent sequentially and 4 percent versus last year, reflecting higher client use of compensating balances to pay for treasury management services.

Corporate banking revenue of $93 million increased 14 percent from the first quarter of 2010 and was flat compared with the same period last year. Sequential results were driven by growth in foreign exchange revenue, institutional sales and lease termination fees, partially offset by declines in business lending fees and revenue from interest rate derivative sales. On a year-over-year basis, lower foreign exchange and letter of credit fees offset growth in institutional sales and business lending fees.

Mortgage banking net revenue was $114 million in the second quarter of 2010, a decrease of $38 million from the first quarter of 2010 results and a decrease of $33 million from the second quarter of 2009. Second quarter 2010 originations were $3.8 billion, an increase from $3.5 billion in the previous quarter and a decline from strong levels of $7.2 billion in the second quarter of 2009. Second quarter 2010 originations resulted in gains of $89 million on mortgages sold compared with gains of $70 million during the previous quarter and $161 million during the same period in 2009. Net servicing revenue, before MSR valuation adjustments, totaled $29 million in the second quarter, compared with $31 million last quarter and $2 million a year ago. MSR valuation adjustments, including mark-to-market related adjustments on free-standing derivatives used to economically hedge the MSR portfolio, represented a net loss of $4 million in the second quarter of 2010, compared with a net gain of $51 million last quarter and a net loss of $16 million a year ago. The mortgage-servicing asset, net of the valuation reserve, was $646 million at quarter end on a servicing portfolio of $51 billion.

Investment advisory revenue of $87 million declined 4 percent sequentially and increased 10 percent from the second quarter of 2009. The sequential decline was primarily driven by seasonally high tax-related private client services fees in the first quarter partially offset by an increase in institutional trust and mutual fund fees in the current quarter. On a year-over-year basis, growth in brokerage fees, private client services, and institutional trust revenue, primarily due to higher retail trading volumes and market value increases, was offset by lower mutual fund fees.

Card and processing revenue was $84 million in the second quarter of 2010, an increase of $11 million, or 15 percent, from the previous quarter. 2009 results included $169 million in merchant processing and financial institutions revenue which transitioned with the processing business sale. Excluding the divested revenue,

card and processing revenue increased by 14 percent from the previous year. The sequential and year-over-year increase was driven by growth in transaction volumes.

Other noninterest income totaled $85 million in the second quarter of 2010 versus $74 million in the previous quarter and $49 million in the second quarter of 2009. Second quarter 2010 results included the $10 million positive valuation adjustment of warrants and puts related to the processing business sale. Current quarter results also included $13 million of TSA revenue and $6 million of revenue from our equity interest in the processing business. First quarter 2010 results included the $9 million reduction in income related to the total return swap entered into as part of the 2009 sale of Visa, Inc. Class B shares, a $2 million decline in the valuation of warrants related to the processing business sale, $13 million of TSA revenue, and $5 million of revenue from our processing business equity interest. Second quarter 2009 results included the $15 million facility write-down. Excluding these items, other noninterest income decreased $11 million from the previous quarter and $8 million from the second quarter of 2009 primarily due to increased credit-related costs. Credit-related costs recognized in noninterest income were $14 million in the second quarter of 2010 versus $1 million last quarter and $8 million in the second quarter of 2009. This quarter, we realized $6 million of net gains on the sale of loans held-for-sale and recorded $7 million of fair value charges on commercial loans held-for-sale and $13 million of losses on the sale of other real estate owned (OREO). First quarter 2010 results included net gains of $25 million on sale of loans held-for-sale, $9 million of fair value charges on commercial loans held-for-sale, and $16 million of losses on the sale of OREO. Second quarter 2009 results included net gains of $11 million on the sale of loans held-for-sale, $6 million of fair value charges on commercial loans held-for-sale, and $13 million of losses on the sale of OREO.

There were no net securities gains on non-qualifying hedges on MSRs in the second quarter of 2010 or in the previous quarter while second quarter 2009 results included net gains of $41 million.

Net gains on investment securities were $8 million in the second quarter of 2010, compared with securities gains of $14 million in the previous quarter and $5 million in the same period the previous year.

Noninterest Expense


	For the Three Months Ended										% Change
	June 2010		March 2010		December 2009		September 2009		June 2009		Seq		Yr/Yr
Noninterest Expense ($ in millions)
Salaries, wages and incentives	$	356	$	329	$	331	$	335	$	346	8	%	3	%
Employee benefits		73		86		69		83		75	(15	%)	(3	%)
Net occupancy expense		73		76		75		75		79	(4	%)	(8	%)
Technology and communications		45		45		47		43		45	—		(1	%)
Equipment expense		31		30		31		30		31	3	%	—
Card and processing expense		31		25		27		25		75	28	%	(58	%)
Other noninterest expense		326		365		387		285		370	(11	%)	(12	%)

Total noninterest expense	$	935	$	956	$	967	$	876	$	1,021	(2	%)	(8	%)

Noninterest expense of $935 million decreased $21 million sequentially and $86 million from a year ago. The sequential decrease was primarily driven by a $36 million decline in credit-related expenses, outlined below, offset by higher salaries, wages and incentives due to higher levels of production and investment in sales force expansion. The decrease from a year ago was primarily driven by lower payments processing expense related to the sale of the processing business and the $55 million FDIC special assessment charge incurred in the prior year. Both the second quarter and first quarter of 2010 results included operating expenses related to the processing business that are offset by revenue under the TSA reported in other noninterest income.

Noninterest expenses incurred related to problem assets totaled $55 million in the second quarter of 2010, compared with $91 million in the first quarter of 2010 and $57 million in the second quarter of 2009. Included within this $55 million were expenses related to mortgage repurchase reserves of $18 million, compared with $39 million in the first quarter of 2010 and $10 million a year ago. (Realized mortgage repurchase losses were $18 million in the second quarter of 2010, compared with $13 million last quarter and $15 million in the second quarter of 2009.) Provision expense for unfunded commitments represented a reduction of expense of $6 million in the second quarter of 2010 versus expense of $9 million last quarter and $9 million a year ago. Derivative valuation adjustments related to customer credit risk resulted in $9 million in expenses this quarter versus $8 million last quarter and $2 million a year ago. OREO expense was $7 million this quarter, compared with $6 million last quarter and $4 million a year ago. Other work-out related expenses were $26 million in the second quarter, compared with $29 million the previous quarter and $32 million in the same period last year.

Credit Quality


	For the Three Months Ended
	June 2010			March 2010			December 2009			September 2009			June 2009
Total net losses charged off ($ in millions)
Commercial and industrial loans	($	104	)	($	161	)	($	183	)	($	256	)	($	177	)
Commercial mortgage loans		(78	)		(99	)		(142	)		(118	)		(85	)
Commercial construction loans		(43	)		(78	)		(135	)		(126	)		(79	)
Commercial leases		—			(4	)		(8	)		—			(1	)
Residential mortgage loans		(85	)		(88	)		(78	)		(92	)		(112	)
Home equity		(61	)		(73	)		(82	)		(80	)		(88	)
Automobile loans		(20	)		(31	)		(32	)		(34	)		(36	)
Credit card		(42	)		(44	)		(44	)		(45	)		(45	)
Other consumer loans and leases		(1	)		(4	)		(4	)		(5	)		(3	)

Total net losses charged off		(434	)		(582	)		(708	)		(756	)		(626	)
Total losses		(472	)		(622	)		(743	)		(796	)		(658	)
Total recoveries		38			40			35			40			32

Total net losses charged off	($	434	)	($	582	)	($	708	)	($	756	)	($	626	)
Ratios (annualized)
Net losses charged off as a percent of average loans and leases (excluding held for sale)		2.26	%		3.01	%		3.62	%		3.75	%		3.08	%
Commercial		2.03	%		3.07	%		4.08	%		4.17	%		2.81	%
Consumer		2.57	%		2.93	%		2.97	%		3.13	%		3.48	%

Net charge-offs were $434 million in the second quarter of 2010, or 226 bps of average loans on an annualized basis, and declined $148 million from first quarter net charge-offs of $582 million, or 301 bps. The decrease from the prior quarter represents improvement across most geographies, although loss experience continues to be disproportionately affected by commercial and residential real estate loans in Michigan and Florida. In aggregate, Florida and Michigan accounted for $52 million of the sequential net charge-off improvement, but represented approximately 50 percent of total losses during the quarter compared with 26 percent of total loans and leases.

Commercial net charge-offs were $225 million, or 203 bps, in the second quarter of 2010, a decrease of $117 million, or 104 bps, from the first quarter. Michigan and Florida accounted for $42 million of the sequential improvement, but 51 percent of the total commercial losses during the quarter. Within the commercial portfolio, C&I losses were $104 million, a decrease of $57 million from the previous quarter. Within C&I, losses on loans to companies in real estate-related industries were $37 million, a decrease of $14 million from the previous quarter. Commercial mortgage net losses totaled $78 million, a decrease of $21 million from the previous quarter, with Michigan and Florida accounting for 63 percent of losses. Commercial construction net losses were $43 million, a decrease of $35 million from the previous quarter, with Michigan and Florida accounting for 34 percent of losses and $16 million of the sequential improvement. Across all commercial portfolios, net losses on residential builder and developer portfolio loans totaled $48 million, down $33 million from the first quarter. These homebuilder losses included $22 million on commercial construction loans, $25 million on commercial mortgage loans, and $2 million on C&I loans. Originations of homebuilder/developer loans were suspended in 2007 and the remaining portfolio balance is $1.2 billion, down from a peak of $3.3 billion in the second quarter of 2008.

Consumer net charge-offs of $209 million, or 257 bps, were down $31 million, or 36 bps, from the first quarter of 2010. Net charge-offs within the residential mortgage portfolio were $85 million, a decrease of $3 million from the previous quarter, with losses in Florida representing 61 percent of residential mortgage losses in the second quarter and approximately 27 percent of total residential mortgage loans. Home equity net charge-offs of $61 million declined $12 million sequentially, with Michigan and Florida representing 41 percent of second quarter home equity losses and 29 percent of total home equity loans. Net losses on brokered home equity loans were $24 million, down $5 million sequentially, and represented 40 percent of second quarter home equity losses and 15 percent of the total home equity portfolio. The home equity portfolio included $1.8 billion of brokered loans; originations of these loans were discontinued in 2007. Net charge-offs in the auto portfolio of $20 million decreased $11 million from the first quarter as a result of the combination of seasonality, tighter underwriting standards, and continued strong values received at auction. Net losses on consumer credit card loans were $42 million, down $2 million from the previous quarter.


	For the Three Months Ended
	June 2010			March 2010			December 2009			September 2009			June 2009
Allowance for Credit Losses ($ in millions)
Allowance for loan and lease losses, beginning	$	3,802		$	3,749		$	3,681		$	3,485		$	3,070
Impact of cumulative effect of change in accounting principle		—			45			—			—			—
Total net losses charged off		(434	)		(582	)		(708	)		(756	)		(626	)
Provision for loan and lease losses		325			590			776			952			1,041

Allowance for loan and lease losses, ending		3,693			3,802			3,749			3,681			3,485
Reserve for unfunded commitments, beginning		260			294			284			239			231
Impact of cumulative effect of change in accounting principle		—			(43	)		—			—			—
Provision for unfunded commitments		(6	)		9			10			45			8

Reserve for unfunded commitments, ending		254			260			294			284			239
Components of allowance for credit losses:
Allowance for loan and lease losses		3,693			3,802			3,749			3,681			3,485
Reserve for unfunded commitments		254			260			294			284			239

Total allowance for credit losses	$	3,947		$	4,062		$	4,043		$	3,965		$	3,724
Allowance for loan and lease losses ratio
As a percent of loans and leases		4.85	%		4.91	%		4.88	%		4.69	%		4.28	%
As a percent of nonperforming loans and leases (a)		146	%		139	%		127	%		125	%		135	%
As a percent of nonperforming assets (a)		124	%		122	%		116	%		114	%		123	%

(a)	Excludes non accrual loans and leases in loans held for sale

Provision for loan and lease losses totaled $325 million in the second quarter of 2010, down $265 million from the first quarter and down $716 million from the second quarter of 2009. The allowance for loan and lease losses represented 4.85 percent of total loans and leases outstanding as of quarter end, compared with 4.91 percent last quarter, and represented 146 percent of nonperforming loans and leases and 212 percent of second quarter annualized net charge-offs.


	As of
	June 2010			March 2010			December 2009			September 2009			June 2009
Nonperforming Assets and Delinquent Loans ($ in millions)
Nonaccrual portfolio loans and leases:
Commercial and industrial loans	$	731		$	746		$	734		$	752		$	603
Commercial mortgage loans		773			853			898			912			760
Commercial construction loans		383			479			646			697			684
Commercial leases		45			55			67			51			51
Residential mortgage loans		282			266			275			267			262
Home equity		21			23			21			24			26
Automobile loans		1			1			1			1			1
Other consumer loans and leases		—			—			—			—			—

Total nonaccrual loans and leases	$	2,236		$	2,423		$	2,642		$	2,704		$	2,387
Restructured loans and leases - commercial (nonaccrual)		48			39			47			18			12
Restructured loans and leases - consumer (nonaccrual)		246			271			258			225			188

Total nonperforming loans and leases	$	2,530		$	2,733		$	2,947		$	2,947		$	2,587
Repossessed personal property		16			21			22			22			21
Other real estate owned (a)		423			375			275			251			232

Total nonperforming assets (b)	$	2,969		$	3,129		$	3,244		$	3,220		$	2,840
Nonaccrual loans held for sale		163			239			220			286			352
Restructured loans - commercial (nonaccrual) held for sale		4			4			4			2			—

Total nonperforming assets including loans held for sale	$	3,136		$	3,372		$	3,468		$	3,508		$	3,192

Restructured Consumer loans and leases (accrual)	$	1,561		$	1,480		$	1,392		$	1,280		$	1,074
Restructured Commercial loans and leases (accrual)	$	109		$	76		$	68			—			—
Total loans and leases 90 days past due	$	397		$	436		$	567		$	992		$	762
Nonperforming loans and leases as a percent of portfolio loans, leases and other assets, including other real estate owned (b)		3.30	%		3.51	%		3.82	%		3.75	%		3.17	%
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned (b)		3.87	%		4.02	%		4.22	%		4.09	%		3.48	%

(a)	Excludes government insured advances.

(b)	Does not include nonaccrual loans held-for-sale.

Nonperforming assets (NPAs) at quarter end were $3.0 billion or 3.87 percent of total loans, leases and OREO, and decreased $160 million, or 5 percent, from the previous quarter. Including $167 million of nonaccrual loans classified as held-for-sale, total NPAs were $3.1 billion and were down $236 million, or 7 percent, compared with the first quarter. In aggregate, Florida and Michigan represented approximately 46 percent of NPAs in the loan portfolio. Total NPAs are currently carried at approximately 56 percent of their original face value through the process of taking charge-offs, purchase accounting marks, and specific reserves recorded through the second quarter.

Commercial NPAs at quarter-end were $2.3 billion, or 5.17 percent of commercial loans, leases and OREO, and declined $140 million, or 6 percent, from the first quarter. Commercial construction portfolio NPAs were $482 million, a decline of $87 million from the previous quarter. Commercial mortgage NPAs were $956 million, a sequential decrease of $47 million. Commercial real estate loans in Michigan and Florida represented 47 percent of total commercial real estate NPAs and 37 percent of our total commercial real estate portfolio, but experienced $66 million of the sequential improvement in commercial real estate NPAs. C&I portfolio NPAs of $792 million were stable, increasing $4 million from the previous quarter. Within the commercial loan portfolio, NPAs in the residential real estate builder and developer portfolio were down $90 million from the first quarter to $431 million, of which $199 million were commercial construction assets, $211 million were commercial mortgage assets and $21 million were C&I assets. Commercial NPAs included $48 million of nonaccrual troubled debt restructurings (TDRs), compared with $39 million last quarter.

At quarter-end, we held $167 million of commercial nonaccrual loans for sale, compared with $243 million at the end of the first quarter. During the quarter, we transferred $10 million of loans from loans held-for-sale to OREO. Loans held-for-sale are carried at the lower of cost or market, and this portfolio is currently recorded at 35 percent of original balances. We recorded negative valuation adjustments of $7 million on held-for-sale loans and we recorded net gains of $6 million on loans that were sold or settled during the quarter.

Consumer NPAs of $695 million, or 2.13 percent of consumer loans, leases and OREO, decreased $20 million, or 3 percent, from the first quarter. Of consumer NPAs, $614 million were in residential real estate portfolios. Residential mortgage NPAs were $549 million, up $28 million from the previous quarter. Home equity NPAs decreased $5 million from last quarter to $65 million. Residential real estate loans in Michigan and Florida represented 59 percent of total residential real estate NPAs and 34 percent of total residential real estate loans. Credit card NPAs declined $37 million from the previous quarter to $64 million due to TDRs returned to accrual status. Consumer nonaccrual TDRs were $246 million in the second quarter of 2010, compared with $271 million in the first quarter.

First quarter OREO balances included in NPAs were $423 million compared with $375 million in the first quarter of 2010, and included $254 million in commercial real estate assets, $113 million in residential mortgage assets, and $16 million in home equity assets. Repossessed personal property of $16 million largely consisted of autos.

Loans still accruing over 90 days past due were $397 million, down $39 million from the first quarter of 2010. Commercial balances 90 days past due increased $22 million to $142 million in the second quarter of 2010. Consumer balances 90 days past due of $255 million declined by $61 million from the previous quarter. Loans 30-89 days past due of $693 million decreased $185 million, or 21 percent, from the previous quarter. Commercial balances 30-89 days past due declined $124 million, or 31 percent, sequentially and consumer balances 30-89 days past due were down $62 million, or 13 percent, from the first quarter.

Capital Position


	For the Three Months Ended
	June 2010		March 2010		December 2009		September 2009		June 2009
Capital Position
Average shareholders’ equity to average assets	12.04	%	11.92	%	12.31	%	12.24	%	10.78	%
Tangible equity (a)	9.89	%	9.67	%	9.71	%	10.08	%	9.72	%
Tangible common equity (excluding unrealized gains/losses) (a)	6.55	%	6.37	%	6.45	%	6.74	%	6.55	%
Tangible common equity (including unrealized gains/losses) (a)	6.91	%	6.61	%	6.64	%	6.98	%	6.67	%
Tangible common equity as a percent of risk-weighted assets (excluding unrealized gains/losses) (a) (b)	7.28	%	7.04	%	7.06	%	7.07	%	6.96	%
Regulatory capital ratios: (c)
Tier I capital	13.75	%	13.40	%	13.31	%	13.19	%	12.90	%
Total risk-based capital	18.11	%	17.55	%	17.48	%	17.43	%	16.96	%
Tier I leverage	12.21	%	12.00	%	12.43	%	12.34	%	12.17	%
Tier I common equity (a)	7.22	%	6.97	%	7.00	%	7.01	%	6.94	%
Book value per share	12.65		12.31		12.44		12.69		12.71
Tangible book value per share (a)	9.51		9.16		9.26		9.50		9.51

(a)

The tangible equity, tangible common equity, tier I common equity and tangible book value per share ratios, while not required by accounting principles generally accepted in the United States of America (U.S. GAAP), are considered to be critical metrics with which to analyze banks. The ratios have been included herein to facilitate a greater understanding of the Bancorp’s capital structure and financial condition. See the Regulation G Non-GAAP Reconciliation table for a reconciliation of these ratios to U.S. GAAP.

(b)

Under the banking agencies risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together resulting in the Bancorp’s total risk weighted assets.

(c)	Current period regulatory capital ratios are estimated.

Capital ratios remained strong during the quarter. Compared with the prior quarter, the Tier 1 common equity ratio increased 25 bps to 7.22 percent, the Tier 1 capital ratio increased 35 bps to 13.75 percent, and the total capital ratio increased 56 bps to 18.11 percent. The tangible common equity to tangible assets ratio increased 18 bps to 6.55 percent excluding unrealized gains/losses, and increased 30 bps to 6.91 percent including unrealized gains/losses.

Current Tier 1 and Total capital levels include $3.4 billion of preferred stock, or approximately 3.5 percent of risk weighted assets, issued under the U.S. Treasury’s Capital Purchase Program. Tier 1 and Total capital levels also include $2.8 billion of Trust Preferred Securities, or 2.8 percent of risk weighted assets. Under financial reform recently passed, the securities are scheduled to begin being phased out of Tier 1 capital over three years beginning in 2013. To the extent these securities remain outstanding during and after the phase-in period, they would still be expected to be included in Total Capital. We expect to manage our capital structure, including the components represented by common equity and non-common equity, over time to adapt to the effect of legislation, changes to Bank for International Settlements (BIS) capital rules (also known as “Basel III”), and our goals for capital levels and capital composition as appropriate given any changes in rules.

Book value per share at June 30, 2010 was $12.65 and tangible book value per share was $9.51, compared with March 31, 2010 book value per share of $12.31 and tangible book value per share of $9.16.

Conference Call

Fifth Third will host a conference call to discuss these financial results at 9:00 a.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, August 5^th by dialing 800-642-1687 for domestic access and 706-645-9291 for international access (passcode 81577448#).

Corporate Profile

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of June 30, 2010, the Company has $112 billion in assets, operates 16 affiliates with 1,309 full-service Banking Centers, including 102 Bank Mart^® locations open seven days a week inside select grocery stores and 2,362 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. Fifth Third also has a 49% interest in Fifth Third Processing Solutions, LLC. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2010, had $178 billion in assets under care, of which it managed $24 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed atwww.53.com. Fifth Third’s common stock is traded on the NASDAQ^® National Global Select Market under the symbol “FITB.”

Forward-Looking Statements

This news release contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements we may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) general economic conditions and weakening in the economy, specifically the real estate market, either nationally or in the states in which Fifth Third, one or more acquired entities and/or the combined company do 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) maintaining capital requirements may limit Fifth Third’s operations and potential growth; (8) changes and trends in capital markets; (9) problems

encountered by larger or similar financial institutions may adversely affect the banking industry and/or Fifth Third (10) competitive pressures among depository institutions increase significantly; (11) effects of critical accounting policies and judgments; (12) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (FASB) or other regulatory agencies; (13) legislative or regulatory changes or actions, or significant litigation, adversely affect Fifth Third, one or more acquired entities and/or the combined company or the businesses in which Fifth Third, one or more acquired entities and/or the combined company are engaged; (14) ability to maintain favorable ratings from rating agencies; (15) fluctuation of Fifth Third’s stock price; (16) ability to attract and retain key personnel; (17) ability to receive dividends from its subsidiaries; (18) potentially dilutive effect of future acquisitions on current shareholders’ ownership of Fifth Third; (19) effects of accounting or financial results of one or more acquired entities; (20) difficulties in separating Fifth Third Processing Solutions from Fifth Third; (21) loss of income from any sale or potential sale of businesses that could have an adverse effect on Fifth Third’s earnings and future growth;(22) ability to secure confidential information through the use of computer systems and telecommunications networks; and (23) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity.

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements.

# # #

LOGO

Quarterly Financial Review for June 30, 2010

Table of Contents


Financial Highlights		19-20
Consolidated Statements of Income		21
Consolidated Statements of Income (Taxable Equivalent)		22
Consolidated Balance Sheets		23-24
Consolidated Statements of Changes in Shareholders’ Equity		25
Average Balance Sheet and Yield Analysis		26-28
Summary of Loans and Leases		29
Regulatory Capital		30
Summary of Credit Loss Experience		31
Asset Quality		32
Regulation G Non-GAAP Reconciliation		33
Segment Presentation		34

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)


	For the Three Months Ended									% Change				Year to Date						% Change
	June 2010			March 2010			June 2009			Seq		Yr/Yr		June 2010			June 2009			Yr/Yr
Income Statement Data
Net interest income (a)	$	887		$	901		$	836		(2	%)	6	%	$	1,788		$	1,617		11	%
Noninterest income		620			627			2,583		(1	%)	(76	%)		1,247			3,280		(62	%)
Total revenue (a)		1,507			1,528			3,419		(1	%)	(56	%)		3,035			4,897		(38	%)
Provision for loan and lease losses		325			590			1,041		(45	%)	(69	%)		915			1,814		(50	%)
Noninterest expense		935			956			1,021		(2	%)	(8	%)		1,891			1,984		(5	%)
Net income (loss)		192			(10	)		882		NM		(78	%)		182			932		(80	%)
Net income (loss) available to common shareholders		130			(72	)		856		NM		(85	%)		57			829		(93	%)

Common Share Data
Earnings per share, basic	$	0.16		($	0.09	)	$	1.35		NM		(88	%)	$	0.07		$	1.37		(95	%)
Earnings per share, diluted		0.16			(0.09	)		1.15		NM		(86	%)		0.07			1.18		(94	%)
Cash dividends per common share		0.01			0.01			0.01		—		—			0.02			0.02		—
Book value per share		12.65			12.31			12.71		3	%	—			12.65			12.71		—
Market price per share		12.29			13.56			7.10		(9	%)	73	%		12.29			7.10		73	%
Common shares outstanding (in thousands)		796,320			794,816			795,313		—		—			796,320			795,313		—
Average common shares outstanding (in thousands):
Basic		790,839			790,473			629,789		—		26	%		790,657			600,960		32	%
Diluted		802,255			790,473			718,245		1	%	12	%		799,666			693,590		15	%
Market capitalization	$	9,787		$	10,778		$	5,647		(9	%)	73	%	$	9,787		$	5,647		73	%

Financial Ratios
Return on assets		0.68	%		(0.04	%)		3.05	%	NM		(78	%)		0.32	%		1.60	%	(80	%)
Return on average common equity		5.2	%		(3.0	%)		41.2	%	NM		(87	%)		1.2	%		20.7	%	(94	%)
Noninterest income as a percent of total revenue		41	%		41	%		76	%	—		(46	%)		41	%		67	%	(39	%)
Average equity as a percent of average assets		12.04	%		11.92	%		10.78	%	1	%	12	%		11.98	%		10.48	%	14	%
Tangible equity (b) (d)		9.89	%		9.67	%		9.72	%	2	%	2	%		9.89	%		9.72	%	2	%
Tangible common equity (c) (d)		6.55	%		6.37	%		6.55	%	3	%	—			6.55	%		6.55	%	—
Net interest margin (a)		3.57	%		3.63	%		3.26	%	(2	%)	10	%		3.60	%		3.16	%	14	%
Efficiency (a)		62.1	%		62.6	%		29.9	%	(1	%)	108	%		62.3	%		40.5	%	54	%
Effective tax rate		20.5	%		53.0	%		34.7	%	(61	%)	(41	%)		17.3	%		14.5	%	19	%

Credit Quality
Net losses charged off	$	434		$	582		$	626		(25	%)	(31	%)	$	971		$	1,116		(13	%)
Net losses charged off as a percent of average loans and leases		2.26	%		3.01	%		3.08	%	(25	%)	(27	%)		2.64	%		2.73	%	(3	%)
Allowance for loan and lease losses as a percent of loans and leases		4.85	%		4.91	%		4.28	%	(1	%)	13	%		4.85	%		4.28	%	13	%
Allowance for credit losses as a percent of loans and leases		5.18	%		5.25	%		4.57	%	(1	%)	13	%		5.18	%		4.57	%	13	%
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned (e)		3.87	%		4.02	%		3.48	%	(4	%)	11	%		3.87	%		3.48	%	11	%

Average Balances
Loans and leases, including held for sale	$	78,808		$	80,136		$	84,996		(2	%)	(7	%)	$	79,468		$	85,410		(7	%)
Total securities and other short-term investments		20,890			20,559			17,762		2	%	18	%		20,726			17,798		16	%
Total assets		112,613			113,433			115,878		(1	%)	(3	%)		113,021			117,272		(4	%)
Transaction deposits (f)		65,508			64,203			54,115		2	%	21	%		64,859			53,236		22	%
Core deposits (g)		76,844			76,262			68,727		1	%	12	%		76,555			67,793		13	%
Wholesale funding (h)		18,977			20,215			31,369		(6	%)	(40	%)		19,591			33,126		(41	%)
Shareholders’ equity		13,563			13,518			12,490		—		9	%		13,541			12,288		10	%

Regulatory Capital Ratios (i)
Tier I capital		13.75	%		13.40	%		12.90	%	3	%	7	%		13.75	%		12.90	%	7	%
Total risk-based capital		18.11	%		17.55	%		16.96	%	3	%	7	%		18.11	%		16.96	%	7	%
Tier I leverage		12.21	%		12.00	%		12.17	%	2	%	—			12.21	%		12.17	%	—
Tier I common equity (d)		7.22	%		6.97	%		6.94	%	4	%	4	%		7.22	%		6.94	%	4	%

Operations
Banking centers		1,309			1,309			1,306		—		—			1,309			1,306		—
ATMs		2,362			2,364			2,355		—		—			2,362			2,355		—
Full-time equivalent employees		20,479			20,038			20,702		2	%	(1	%)		20,479			20,702		(1	%)

(a)	Presented on a fully taxable equivalent basis

(b)	The tangible equity ratio is calculated as tangible equity (shareholders’ equity less goodwill, intangible assets and accumulated other comprehensive income) divided by tangible assets (total assets less goodwill, intangible assets and tax effected accumulated other comprehensive income.)

(c)	The tangible common equity ratio is calculated as tangible common equity (shareholders’ equity less preferred stock, goodwill intangible assets and accumulated other comprehensive income) divided by tangible assets (defined above.)

(d)

The tangible equity, tangible common equity and tier I common equity ratios, while not required by U.S. GAAP, are considered to be critical metrics with which to analyze banks. The ratios have been included herein to facilitate a greater understanding of the Bancorp’s capital structure and financial condition.

(e)	Excludes nonaccrual loans held for sale

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

(g)	Includes transaction deposits plus other time deposits

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

(i)	Current period regulatory capital ratios are estimates

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)


	For the Three Months Ended
	June 2010			March 2010			December 2009			September 2009			June 2009
Income Statement Data
Net interest income (a)	$	887		$	901		$	882		$	874		$	836
Noninterest income		620			627			651			851			2,583
Total revenue (a)		1,507			1,528			1,533			1,725			3,419
Provision for loan and lease losses		325			590			776			952			1,041
Noninterest expense		935			956			967			876			1,021
Net income (loss)		192			(10	)		(98	)		(97	)		882
Net income (loss) available to common shareholders		130			(72	)		(160	)		(159	)		856
Common Share Data
Earnings per share, basic	$	0.16		($	0.09	)	($	0.20	)	($	0.20	)	$	1.35
Earnings per share, diluted		0.16			(0.09	)		(0.20	)		(0.20	)		1.15
Cash dividends per common share		0.01			0.01			0.01			0.01			0.01
Book value per share		12.65			12.31			12.44			12.69			12.71
Market price per share		12.29			13.56			9.75			10.13			7.10
Common shares outstanding (in thousands)		796,320			794,816			795,068			795,316			795,313
Average common shares outstanding (in thousands):
Basic		790,839			790,473			790,442			790,334			629,789
Diluted		802,255			790,473			790,442			790,334			718,245
Market capitalization	$	9,787		$	10,778		$	7,752		$	8,057		$	5,647
Financial Ratios
Return on assets		0.68	%		(0.04	%)		(0.35	%)		(0.34	%)		3.05	%
Return on average common equity		5.2	%		(3.0	%)		(6.3	%)		(6.1	%)		41.2	%
Noninterest income as a percent of total revenue		41	%		41	%		42	%		49	%		76	%
Average equity as a percent of average assets		12.04	%		11.92	%		12.31	%		12.24	%		10.78	%
Tangible equity (b) (d)		9.89	%		9.67	%		9.71	%		10.08	%		9.72	%
Tangible common equity (c) (d)		6.55	%		6.37	%		6.45	%		6.74	%		6.55	%
Net interest margin (a)		3.57	%		3.63	%		3.55	%		3.43	%		3.26	%
Efficiency (a)		62.1	%		62.6	%		63.1	%		50.8	%		29.9	%
Effective tax rate		20.5	%		53.0	%		54.4	%		10.2	%		34.7	%
Credit Quality
Net losses charged off	$	434		$	582		$	708		$	756		$	626
Net losses charged off as a percent of average loans and leases		2.26	%		3.01	%		3.62	%		3.75	%		3.08	%
Allowance for loan and lease losses as a percent of loans and leases		4.85	%		4.91	%		4.88	%		4.69	%		4.28	%
Allowance for credit losses as a percent of loans and leases		5.18	%		5.25	%		5.27	%		5.06	%		4.57	%
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned (e)		3.87	%		4.02	%		4.22	%		4.09	%		3.48	%
Average Balances
Loans and leases, including held for sale	$	78,808		$	80,136		$	79,920		$	82,888		$	84,996
Total securities and other short-term investments		20,890			20,559			18,869			18,065			17,762
Total assets		112,613			113,433			111,505			113,453			115,878
Transaction deposits (f)		65,508			64,203			58,796			55,607			54,115
Core deposits (g)		76,844			76,262			71,845			69,871			68,727
Wholesale funding (h)		18,977			20,215			22,107			25,947			31,369
Shareholders’ equity		13,563			13,518			13,724			13,885			12,490
Regulatory Capital Ratios (i)
Tier I capital		13.75	%		13.40	%		13.31	%		13.19	%		12.90	%
Total risk-based capital		18.11	%		17.55	%		17.48	%		17.43	%		16.96	%
Tier I leverage		12.21	%		12.00	%		12.43	%		12.34	%		12.17	%
Tier I common equity (d)		7.22	%		6.97	%		7.00	%		7.01	%		6.94	%
Operations
Banking centers		1,309			1,309			1,309			1,306			1,306
ATMs		2,362			2,364			2,358			2,372			2,355
Full-time equivalent employees		20,479			20,038			20,998			20,559			20,702

(a)	Presented on a fully taxable equivalent basis

(b)	The tangible equity ratio is calculated as tangible equity (shareholders’ equity less goodwill, intangible assets and accumulated other comprehensive income) divided by tangible assets (total assets less goodwill, intangible assets and tax effected accumulated other comprehensive income.)

(c)	The tangible common equity ratio is calculated as tangible common equity (shareholders’ equity less preferred stock, goodwill intangible assets and accumulated other comprehensive income) divided by tangible assets (defined above.)

(d)

(e)	Excludes nonaccrual loans held for sale

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

(g)	Includes transaction deposits plus other time deposits

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

(i)	Current period regulatory capital ratios are estimates

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income

$ in millions

(unaudited)


	For the Three Months Ended								% Change				Year to Date					% Change
	June 2010		March 2010			June 2009			Seq		Yr/Yr		June 2010		June 2009			Yr/Yr
Interest Income
Interest and fees on loans and leases	$	951	$	960		$	995		(1	%)	(4	%)	$	1,910	$	1,992		(4	%)
Interest on securities		163		182			184		(10	%)	(12	%)		345		364		(5	%)
Interest on other short-term investments		2		1			0		52	%	650	%		4		1		294	%

Total interest income		1,116		1,143			1,179		(2	%)	(5	%)		2,259		2,357		(4	%)
Interest Expense
Interest on deposits		161		171			258		(6	%)	(37	%)		332		532		(37	%)
Interest on short-term borrowings		1		1			12		—		(93	%)		2		37		(95	%)
Interest on long-term debt		72		74			78		(3	%)	(8	%)		146		181		(19	%)

Total interest expense		234		246			348		(5	%)	(33	%)		480		750		(36	%)

Net Interest Income		882		897			831		(2	%)	6	%		1,779		1,607		11	%
Provision for loan and lease losses		325		590			1,041		(45	%)	(69	%)		915		1,814		(50	%)

Net interest income (loss) after provision for loan and lease losses		557		307			(210	)	82	%	NM			864		(207	)	NM
Noninterest Income
Service charges on deposits		149		142			162		5	%	(8	%)		291		308		(6	%)
Corporate banking revenue		93		81			93		14	%	—			174		206		(15	%)
Mortgage banking net revenue		114		152			147		(25	%)	(23	%)		266		281		(5	%)
Investment advisory revenue		87		91			79		(4	%)	10	%		177		158		12	%
Card and processing revenue		84		73			243		15	%	(65	%)		158		466		(66	%)
Gain on sale of processing business		—		—			1,764		NM		(100	%)		—		1,764		(100	%)
Other noninterest income		85		74			49		15	%	75	%		160		60		167	%
Securities gains (losses), net		8		14			5		(43	%)	60	%		21		(20	)	NM
Securities gains, net - non-qualifying hedges on mortgage servicing rights		—		—			41		NM		(100	%)		—		57		(100	%)

Total noninterest income		620		627			2,583		(1	%)	(76	%)		1,247		3,280		(62	%)
Noninterest Expense
Salaries, wages and incentives		356		329			346		8	%	3	%		686		673		2	%
Employee benefits		73		86			75		(15	%)	(3	%)		159		158		—
Net occupancy expense		73		76			79		(4	%)	(8	%)		150		158		(5	%)
Technology and communications		45		45			45		—		(1	%)		90		90		—
Equipment expense		31		30			31		3	%	—			60		62		(3	%)
Card and processing expense		31		25			75		28	%	(58	%)		56		141		(60	%)
Other noninterest expense		326		365			370		(11	%)	(12	%)		690		702		(2	%)

Total noninterest expense		935		956			1,021		(2	%)	(8	%)		1,891		1,984		(5	%)
Income (loss) before income taxes		242		(22	)		1,352		NM		(82	%)		220		1,089		(80	%)
Applicable income taxes		50		(12	)		470		NM		(89	%)		38		157		(76	%)

Net income (loss)		192		(10	)		882		NM		(78	%)		182		932		(80	%)
Dividends on preferred stock		62		62			26		—		138	%		125		103		21	%

Net income (loss) available to common shareholders	$	130	($	72	)	$	856		NM		(85	%)	$	57	$	829		(93	%)

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income (Taxable Equivalent)

$ in millions

(unaudited)


	For the Three Months Ended
	June 2010		March 2010			December 2009			September 2009			June 2009
Interest Income
Interest and fees on loans and leases	$	951	$	960		$	957		$	986		$	995
Interest on securities		163		182			186			183			184
Interest on other short-term investments		2		1			—			—			—

Total interest income		1,116		1,143			1,143			1,169			1,179
Taxable equivalent adjustment		5		4			4			5			5

Total interest income (taxable equivalent)		1,121		1,147			1,147			1,174			1,184
Interest Expense
Interest on deposits		161		171			194			228			258
Interest on short-term borrowings		1		1			2			4			12
Interest on long-term debt		72		74			69			68			78

Total interest expense		234		246			265			300			348

Net interest income (taxable equivalent)		887		901			882			874			836
Provision for loan and lease losses		325		590			776			952			1,041

Net interest income (loss) (taxable equivalent) after provision for loan and lease losses		562		311			106			(78	)		(205	)
Noninterest Income
Service charges on deposits		149		142			159			164			162
Corporate banking revenue		93		81			89			77			93
Mortgage banking net revenue		114		152			132			140			147
Investment advisory revenue		87		91			86			82			79
Card and processing revenue		84		73			76			74			243
Gain on sale of processing business		—		—			—			(6	)		1,764
Other noninterest income		85		74			107			312			49
Securities gains (losses), net		8		14			2			8			5
Securities gains, net - non-qualifying hedges on mortgage servicing rights		—		—			—			—			41

Total noninterest income		620		627			651			851			2,583
Noninterest Expense
Salaries, wages and incentives		356		329			331			335			346
Employee benefits		73		86			69			83			75
Net occupancy expense		73		76			75			75			79
Technology and communications		45		45			47			43			45
Equipment expense		31		30			31			30			31
Card and processing expense		31		25			27			25			75
Other noninterest expense		326		365			387			285			370

Total noninterest expense		935		956			967			876			1,021

Income (loss) before income taxes (taxable equivalent)		247		(18	)		(210	)		(103	)		1,357
Taxable equivalent adjustment		5		4			4			5			5

Income (loss) before income taxes		242		(22	)		(214	)		(108	)		1,352
Applicable income taxes		50		(12	)		(116	)		(11	)		470

Net income (loss)		192		(10	)		(98	)		(97	)		882
Dividends on preferred stock		62		62			62			62			26

Net income (loss) available to common shareholders	$	130	($	72	)	($	160	)	($	159	)	$	856

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)


	As of									% Change
	June 2010			March 2010			June 2009			Seq		Yr/Yr
Assets
Cash and due from banks	$	2,216		$	2,133		$	2,899		4	%	(24	%)
Available-for-sale and other securities (a)		16,021			16,935			16,061		(5	%)	—
Held-to-maturity securities (b)		354			355			357		—		(1	%)
Trading securities		270			305			1,354		(11	%)	(80	%)
Other short-term investments		4,322			3,904			513		11	%	743	%
Loans held for sale		2,150			1,607			3,341		34	%	(36	%)
Portfolio loans and leases:
Commercial and industrial loans		26,008			26,131			28,409		—		(8	%)
Commercial mortgage loans		11,481			11,744			12,407		(2	%)	(7	%)
Commercial construction loans		2,965			3,277			4,491		(10	%)	(34	%)
Commercial leases		3,271			3,388			3,532		(3	%)	(7	%)
Residential mortgage loans		7,707			7,918			8,489		(3	%)	(9	%)
Home equity		11,987			12,186			12,511		(2	%)	(4	%)
Automobile loans		10,285			10,180			8,741		1	%	18	%
Credit card		1,841			1,863			1,914		(1	%)	(4	%)
Other consumer loans and leases		687			736			935		(7	%)	(27	%)

Portfolio loans and leases		76,232			77,423			81,429		(2	%)	(6	%)
Allowance for loan and lease losses		(3,693	)		(3,802	)		(3,485	)	(3	%)	6	%

Portfolio loans and leases, net		72,539			73,621			77,944		(1	%)	(7	%)
Bank premises and equipment		2,374			2,384			2,440		—		(3	%)
Operating lease equipment		489			492			474		(1	%)	3	%
Goodwill		2,417			2,417			2,417		—		—
Intangible assets		83			94			133		(12	%)	(38	%)
Servicing rights		646			725			595		(11	%)	9	%
Other assets		8,144			7,679			7,456		6	%	9	%

Total assets	$	112,025		$	112,651		$	115,984		(1	%)	(3	%)

Liabilities
Deposits:
Demand	$	19,256		$	19,482		$	17,202		(1	%)	12	%
Interest checking		17,759			19,126			14,630		(7	%)	21	%
Savings		19,646			19,099			16,819		3	%	17	%
Money market		4,666			4,782			4,193		(2	%)	11	%
Foreign office		3,430			2,844			2,244		21	%	53	%
Other time		10,966			11,643			14,540		(6	%)	(25	%)
Certificates - $100,000 and over		6,389			6,596			10,688		(3	%)	(40	%)
Other		3			2			504		71	%	(99	%)

Total deposits		82,115			83,574			80,820		(2	%)	2	%
Federal funds purchased		240			271			435		(12	%)	(45	%)
Other short-term borrowings		1,556			1,359			6,802		14	%	(77	%)
Accrued taxes, interest and expenses		721			633			959		14	%	(25	%)
Other liabilities		2,703			2,459			3,166		10	%	(15	%)
Long-term debt		10,989			10,947			10,102		—		9	%

Total liabilities		98,324			99,243			102,284		(1	%)	(4	%)
Shareholders’ equity
Common stock		1,779			1,779			1,779		—		—
Preferred stock		3,631			3,620			3,588		—		1	%
Capital surplus		1,696			1,753			1,722		(3	%)	(2	%)
Retained earnings		6,289			6,169			6,663		2	%	(6	%)
Accumulated other comprehensive income		440			288			152		53	%	189	%
Treasury stock		(134	)		(201	)		(204	)	(34	%)	(34	%)

Total shareholders’ equity (c)		13,701			13,408			13,700		2	%	—

Total liabilities and shareholders’ equity	$	112,025		$	112,651		$	115,984		(1	%)	(3	%)

(a) Amortized cost	$	15,356		$	16,523		$	15,820		(7	%)	(3	%)
(b) Market values		354			355			357		—		(1	%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized		2,000,000			2,000,000			2,000,000		—		—
Outstanding, excluding treasury		796,320			794,816			795,313		—		—
Treasury		5,184			6,688			6,191		(22	%)	(16	%)

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)


	As of
	June 2010			March 2010			December 2009			September 2009			June 2009
Assets
Cash and due from banks	$	2,216		$	2,133		$	2,318		$	2,130		$	2,899
Available-for-sale and other securities (a)		16,021			16,935			18,213			15,682			16,061
Held-to-maturity securities (b)		354			355			355			356			357
Trading securities		270			305			355			1,079			1,354
Other short-term investments		4,322			3,904			3,369			1,126			513
Loans held for sale		2,150			1,607			2,067			2,063			3,341
Portfolio loans and leases:
Commercial and industrial loans		26,008			26,131			25,683			26,175			28,409
Commercial mortgage loans		11,481			11,744			11,803			12,105			12,407
Commercial construction loans		2,965			3,277			3,784			4,147			4,491
Commercial leases		3,271			3,388			3,535			3,584			3,532
Residential mortgage loans		7,707			7,918			8,035			8,229			8,489
Home equity		11,987			12,186			12,174			12,377			12,511
Automobile loans		10,285			10,180			8,995			8,972			8,741
Credit card		1,841			1,863			1,990			1,973			1,914
Other consumer loans and leases		687			736			780			857			935

Portfolio loans and leases		76,232			77,423			76,779			78,419			81,429
Allowance for loan and lease losses		(3,693	)		(3,802	)		(3,749	)		(3,681	)		(3,485	)

Portfolio loans and leases, net		72,539			73,621			73,030			74,738			77,944
Bank premises and equipment		2,374			2,384			2,400			2,426			2,440
Operating lease equipment		489			492			499			486			474
Goodwill		2,417			2,417			2,417			2,417			2,417
Intangible assets		83			94			106			119			133
Servicing rights		646			725			700			626			595
Other assets		8,144			7,679			7,551			7,492			7,456

Total assets	$	112,025		$	112,651		$	113,380		$	110,740		$	115,984

Liabilities
Deposits:
Demand	$	19,256		$	19,482		$	19,411		$	17,666		$	17,202
Interest checking		17,759			19,126			19,935			15,168			14,630
Savings		19,646			19,099			17,898			17,098			16,819
Money market		4,666			4,782			4,431			4,378			4,193
Foreign office		3,430			2,844			2,454			2,356			2,244
Other time		10,966			11,643			12,466			13,725			14,540
Certificates - $100,000 and over		6,389			6,596			7,700			8,962			10,688
Other		3			2			10			5			504

Total deposits		82,115			83,574			84,305			79,358			80,820
Federal funds purchased		240			271			182			433			435
Other short-term borrowings		1,556			1,359			1,415			3,674			6,802
Accrued taxes, interest and expenses		721			633			773			878			959
Other liabilities		2,703			2,459			2,701			2,547			3,166
Long-term debt		10,989			10,947			10,507			10,162			10,102

Total liabilities		98,324			99,243			99,883			97,052			102,284
Shareholders’ equity
Common stock		1,779			1,779			1,779			1,779			1,779
Preferred stock		3,631			3,620			3,609			3,599			3,588
Capital surplus		1,696			1,753			1,743			1,729			1,722
Retained earnings		6,289			6,169			6,326			6,496			6,663
Accumulated other comprehensive income		440			288			241			285			152
Treasury stock		(134	)		(201	)		(201	)		(200	)		(204	)

Total shareholders’ equity (c)		13,701			13,408			13,497			13,688			13,700

Total liabilities and shareholders’ equity	$	112,025		$	112,651		$	113,380		$	110,740		$	115,984

(a) Amortized cost	$	15,356		$	16,523		$	17,879		$	15,260		$	15,820
(b) Market values		354			355			355			356			357
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized		2,000,000			2,000,000			2,000,000			2,000,000			2,000,000
Outstanding, excluding treasury		796,320			794,816			795,068			795,316			795,313
Treasury		5,184			6,688			6,436			6,188			6,191

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

$ in millions

(unaudited)


	For the Three Months Ended						Year to Date
	June 2010			June 2009			June 2010			June 2009
Total shareholders’ equity, beginning	$	13,408		$	12,102		$	13,497		$	12,077
Net income		192			882			182			932
Other comprehensive income, net of tax:
Change in unrealized gains and (losses):
Available-for-sale securities		164			(21	)		215			42
Qualifying cash flow hedges		(14	)		19			(20	)		7
Change in accumulated other comprehensive income related to employee benefit plans		2			3			4			5

Comprehensive income		344			883			381			986
Cash dividends declared:
Common stock		(8	)		(8	)		(16	)		(13	)
Preferred stock		(51	)		(51	)		(103	)		(117	)
Issuance of common stock		—			986			—			986
Dividends on exchange of preferred stock		—			35			—			35
Exchange of preferred stock, Series G		—			(269	)		—			(269	)
Stock-based awards exercised, including treasury shares issued		(3	)		1			(3	)		1
Stock-based compensation expense		11			12			22			23
Impact of cumulative effect of change in accounting principle		—			—			(77	)		—
Change in corporate tax benefit related to stock-based compensation		—			(12	)		—			(30	)
Reversal of OTTI		—			24			—			24
Other		—			(3	)		—			(3	)

Total shareholders’ equity, ending	$	13,701		$	13,700		$	13,701		$	13,700

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	For the Three Months Ended									% Change
	June 2010			March 2010			June 2009			Seq		Yr/Yr
Assets
Interest-earning assets:
Commercial and industrial loans	$	26,179		$	26,299		$	28,038		—		(7	%)
Commercial mortgage loans		11,772			11,836			12,668		(1	%)	(7	%)
Commercial construction loans		3,258			3,781			4,842		(14	%)	(33	%)
Commercial leases		3,336			3,468			3,512		(4	%)	(5	%)
Residential mortgage loans		9,390			9,478			11,669		(1	%)	(20	%)
Home equity		12,102			12,338			12,636		(2	%)	(4	%)
Automobile loans		10,170			10,185			8,692		—		17	%
Credit card		1,859			1,940			1,863		(4	%)	—
Other consumer loans and leases		742			811			1,076		(9	%)	(31	%)
Taxable securities		16,451			17,240			16,778		(5	%)	(2	%)
Tax exempt securities		154			175			242		(12	%)	(36	%)
Other short-term investments		4,285			3,144			742		36	%	478	%

Total interest-earning assets		99,698			100,695			102,758		(1	%)	(3	%)
Cash and due from banks		2,163			2,247			2,350		(4	%)	(8	%)
Other assets		14,550			14,262			13,907		2	%	5	%
Allowance for loan and lease losses		(3,798	)		(3,771	)		(3,137	)	1	%	21	%

Total assets	$	112,613		$	113,433		$	115,878		(1	%)	(3	%)

Liabilities
Interest-bearing liabilities:
Interest checking	$	18,652		$	19,533		$	14,837		(5	%)	26	%
Savings		19,446			18,469			16,705		5	%	16	%
Money market		4,679			4,622			4,167		1	%	12	%
Foreign office		3,325			2,757			1,717		21	%	94	%
Other time		11,336			12,059			14,612		(6	%)	(22	%)
Certificates - $100,000 and over		6,354			7,049			11,455		(10	%)	(45	%)
Other		5			8			240		(36	%)	(98	%)
Federal funds purchased		264			220			542		20	%	(51	%)
Other short-term borrowings		1,478			1,449			8,002		2	%	(82	%)
Long-term debt		10,876			11,489			11,130		(5	%)	(2	%)

Total interest-bearing liabilities		76,415			77,655			83,407		(2	%)	(8	%)
Demand deposits		19,406			18,822			16,689		3	%	16	%
Other liabilities		3,229			3,438			3,292		(6	%)	(2	%)

Total liabilities		99,050			99,915			103,388		(1	%)	(4	%)
Shareholders’ equity		13,563			13,518			12,490		—		9	%

Total liabilities and shareholders’ equity	$	112,613		$	113,433		$	115,878		(1	%)	(3	%)

Yield Analysis
Interest-earning assets:
Commercial and industrial loans		4.75	%		4.61	%		4.06	%
Commercial mortgage loans		4.10	%		4.20	%		4.44	%
Commercial construction loans		3.15	%		2.92	%		2.80	%
Commercial leases		4.51	%		4.54	%		4.66	%
Residential mortgage loans		4.77	%		5.18	%		5.65	%
Home equity		4.01	%		4.02	%		4.14	%
Automobile loans		6.01	%		6.24	%		6.36	%
Credit card		10.91	%		10.76	%		10.06	%
Other consumer loans and leases		13.65	%		11.87	%		7.52	%

Total loans and leases		4.86	%		4.87	%		4.71	%
Taxable securities		3.93	%		4.23	%		4.33	%
Tax exempt securities		6.98	%		7.08	%		8.04	%
Other short-term investments		0.20	%		0.18	%		0.15	%

Total interest-earning assets		4.51	%		4.62	%		4.62	%
Interest-bearing liabilities:
Interest checking		0.30	%		0.28	%		0.27	%
Savings		0.60	%		0.67	%		0.77	%
Money market		0.42	%		0.46	%		0.63	%
Foreign office		0.36	%		0.34	%		0.54	%
Other time		2.70	%		2.75	%		3.48	%
Certificates - $100,000 and over		2.13	%		2.16	%		2.80	%
Other		0.10	%		0.02	%		0.19	%
Federal funds purchased		0.17	%		0.13	%		0.18	%
Other short-term borrowings		0.21	%		0.23	%		0.61	%
Long-term debt		2.64	%		2.64	%		2.79	%

Total interest-bearing liabilities		1.23	%		1.29	%		1.67	%
Ratios:
Net interest margin (taxable equivalent)		3.57	%		3.63	%		3.26	%
Net interest rate spread (taxable equivalent)		3.28	%		3.33	%		2.95	%
Interest-bearing liabilities to interest-earning assets		76.65	%		77.12	%		81.17	%

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	Year to Date						% Change
	June 2010			June 2009			Yr/Yr
Assets
Interest-earning assets:
Commercial and industrial loans	$	26,239		$	28,500		(8	%)
Commercial mortgage loans		11,804			12,738		(7	%)
Commercial construction loans		3,518			4,978		(29	%)
Commercial leases		3,402			3,538		(4	%)
Residential mortgage loans		9,434			11,297		(16	%)
Home equity		12,219			12,699		(4	%)
Automobile loans		10,178			8,690		17	%
Credit card		1,899			1,844		3	%
Other consumer loans and leases		775			1,126		(31	%)
Taxable securities		16,843			16,532		2	%
Tax exempt securities		165			252		(35	%)
Other short-term investments		3,718			1,014		267	%

Total interest-earning assets		100,194			103,208		(3	%)
Cash and due from banks		2,205			2,393		(8	%)
Other assets		14,407			14,633		(2	%)
Allowance for loan and lease losses		(3,785	)		(2,962	)	28	%

Total assets	$	113,021		$	117,272		(4	%)

Liabilities
Interest-bearing liabilities:
Interest checking	$	19,090		$	14,534		31	%
Savings		18,960			16,490		15	%
Money market		4,651			4,362		7	%
Foreign office		3,043			1,736		75	%
Other time		11,696			14,557		(20	%)
Certificates-$100,000 and over		6,700			11,628		(42	%)
Other		6			243		(97	%)
Federal funds purchased		242			621		(61	%)
Other short-term borrowings		1,464			8,807		(83	%)
Long-term debt		11,179			11,827		(5	%)

Total interest-bearing liabilities		77,031			84,805		(9	%)
Demand deposits		19,115			16,114		19	%
Other liabilities		3,334			4,065		(18	%)

Total liabilities		99,480			104,984		(5	%)
Shareholders’ equity		13,541			12,288		10	%

Total liabilities and shareholders’ equity	$	113,021		$	117,272		(4	%)

Yield Analysis
Interest-earning assets:
Commercial and industrial loans		4.68	%		4.03	%
Commercial mortgage loans		4.15	%		4.50	%
Commercial construction loans		3.03	%		3.08	%
Commercial leases		4.53	%		3.89	%
Residential mortgage loans		4.98	%		5.84	%
Home equity		4.01	%		4.21	%
Automobile loans		6.13	%		6.38	%
Credit card		10.83	%		10.47	%
Other consumer loans and leases		12.73	%		6.83	%

Total loans and leases		4.87	%		4.72	%
Taxable securities		4.08	%		4.36	%
Tax exempt securities		7.03	%		7.73	%
Other short-term investments		0.19	%		0.18	%

Total interest-earning assets		4.56	%		4.62	%
Interest-bearing liabilities:
Interest checking		0.29	%		0.27	%
Savings		0.64	%		0.83	%
Money market		0.44	%		0.67	%
Foreign office		0.35	%		0.54	%
Other time		2.73	%		3.55	%
Certificates-$100,000 and over		2.14	%		2.92	%
Other		0.05	%		0.21	%
Federal funds purchased		0.15	%		0.25	%
Other short-term borrowings		0.22	%		0.82	%
Long-term debt		2.64	%		3.09	%

Total interest-bearing liabilities		1.26	%		1.78	%
Ratios:
Net interest margin (taxable equivalent)		3.60	%		3.16	%
Net interest rate spread (taxable equivalent)		3.30	%		2.84	%
Interest-bearing liabilities to interest-earning assets		76.88	%		82.17	%

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	For the Three Months Ended
	June 2010			March 2010			December 2009			September 2009			June 2009
Assets
Interest-earning assets:
Commercial and industrial loans	$	26,179		$	26,299		$	25,838		$	27,416		$	28,038
Commercial mortgage loans		11,772			11,836			12,126			12,449			12,668
Commercial construction loans		3,258			3,781			4,134			4,475			4,842
Commercial leases		3,336			3,468			3,574			3,522			3,512
Residential mortgage loans		9,390			9,478			10,142			10,820			11,669
Home equity		12,102			12,338			12,291			12,452			12,636
Automobile loans		10,170			10,185			8,973			8,871			8,692
Credit card		1,859			1,940			1,982			1,955			1,863
Other consumer loans and leases		742			811			860			928			1,076
Taxable securities		16,451			17,240			17,521			16,850			16,778
Tax exempt securities		154			175			205			246			242
Other short-term investments		4,285			3,144			1,143			969			742

Total interest-earning assets		99,698			100,695			98,789			100,953			102,758
Cash and due from banks		2,163			2,247			2,276			2,257			2,350
Other assets		14,550			14,262			14,084			13,724			13,907
Allowance for loan and lease losses		(3,798	)		(3,771	)		(3,644	)		(3,481	)		(3,137	)

Total assets	$	112,613		$	113,433		$	111,505		$	113,453		$	115,878

Liabilities
Interest-bearing liabilities:
Interest checking	$	18,652		$	19,533		$	16,324		$	14,869		$	14,837
Savings		19,446			18,469			17,540			16,967			16,705
Money market		4,679			4,622			4,279			4,280			4,167
Foreign office		3,325			2,757			2,516			2,432			1,717
Other time		11,336			12,059			13,049			14,264			14,612
Certificates-$100,000 and over		6,354			7,049			8,200			10,055			11,455
Other		5			8			51			95			240
Federal funds purchased		264			220			423			404			542
Other short-term borrowings		1,478			1,449			3,029			5,285			8,002
Long-term debt		10,876			11,489			10,404			10,108			11,130

Total interest-bearing liabilities		76,415			77,655			75,815			78,759			83,407
Demand deposits		19,406			18,822			18,137			17,059			16,689
Other liabilities		3,229			3,438			3,829			3,750			3,292

Total liabilities		99,050			99,915			97,781			99,568			103,388
Shareholders’ equity		13,563			13,518			13,724			13,885			12,490

Total liabilities and shareholders’ equity	$	112,613		$	113,433		$	111,505		$	113,453		$	115,878

Yield Analysis
Interest-earning assets:
Commercial and industrial loans		4.75	%		4.61	%		4.48	%		4.36	%		4.06	%
Commercial mortgage loans		4.10	%		4.20	%		4.19	%		4.22	%		4.44	%
Commercial construction loans		3.15	%		2.92	%		2.65	%		2.74	%		2.80	%
Commercial leases		4.51	%		4.54	%		4.59	%		4.59	%		4.66	%
Residential mortgage loans		4.77	%		5.18	%		5.19	%		5.23	%		5.65	%
Home equity		4.01	%		4.02	%		4.06	%		4.10	%		4.14	%
Automobile loans		6.01	%		6.24	%		6.18	%		6.32	%		6.36	%
Credit card		10.91	%		10.76	%		9.66	%		9.87	%		10.06	%
Other consumer loans and leases		13.65	%		11.87	%		11.59	%		9.59	%		7.52	%

Total loans and leases		4.86	%		4.87	%		4.77	%		4.73	%		4.71	%
Taxable securities		3.93	%		4.23	%		4.17	%		4.24	%		4.33	%
Tax exempt securities		6.98	%		7.08	%		6.06	%		7.05	%		8.04	%
Other short-term investments		0.20	%		0.18	%		0.10	%		0.10	%		0.15	%

Total interest-earning assets		4.51	%		4.62	%		4.61	%		4.61	%		4.62	%
Interest-bearing liabilities:
Interest checking		0.30	%		0.28	%		0.27	%		0.24	%		0.27	%
Savings		0.60	%		0.67	%		0.70	%		0.67	%		0.77	%
Money market		0.42	%		0.46	%		0.51	%		0.55	%		0.63	%
Foreign office		0.36	%		0.34	%		0.36	%		0.43	%		0.54	%
Other time		2.70	%		2.75	%		2.95	%		3.24	%		3.48	%
Certificates-$100,000 and over		2.13	%		2.16	%		2.27	%		2.56	%		2.80	%
Other		0.10	%		0.02	%		0.09	%		0.19	%		0.19	%
Federal funds purchased		0.17	%		0.13	%		0.13	%		0.15	%		0.18	%
Other short-term borrowings		0.21	%		0.23	%		0.20	%		0.32	%		0.61	%
Long-term debt		2.64	%		2.64	%		2.65	%		2.67	%		2.79	%

Total interest-bearing liabilities		1.23	%		1.29	%		1.39	%		1.51	%		1.67	%
Ratios:
Net interest margin (taxable equivalent)		3.57	%		3.63	%		3.55	%		3.43	%		3.26	%
Net interest rate spread (taxable equivalent)		3.28	%		3.33	%		3.22	%		3.10	%		2.95	%
Interest-bearing liabilities to interest-earning assets		76.65	%		77.12	%		76.74	%		78.02	%		81.17	%

Fifth Third Bancorp and Subsidiaries

Summary of Loans and Leases

$ in millions

(unaudited)


	For the Three Months Ended
	June 2010		March 2010		December 2009		September 2009		June 2009
Average Loans and Leases
Commercial:
Commercial and industrial loans	$	26,176	$	26,294	$	25,816	$	27,400	$	28,027
Commercial mortgage loans		11,659		11,708		11,981		12,269		12,463
Commercial construction loans		3,160		3,700		4,024		4,337		4,672
Commercial leases		3,336		3,467		3,574		3,522		3,512

Subtotal - commercial		44,331		45,169		45,395		47,528		48,674
Consumer:
Residential mortgage loans		7,805		7,976		8,129		8,355		8,713
Home equity		12,102		12,338		12,291		12,452		12,636
Automobile loans		10,170		10,185		8,973		8,871		8,692
Credit card		1,859		1,940		1,982		1,955		1,863
Other consumer loans and leases		706		773		831		899		995

Subtotal - consumer		32,642		33,212		32,206		32,532		32,899

Total average loans and leases (excluding held for sale)	$	76,973	$	78,381	$	77,601	$	80,060	$	81,573

Average loans held for sale		1,834		1,756		2,319		2,828		3,422

End of Period Loans and Leases
Commercial:
Commercial and industrial loans	$	26,008	$	26,131	$	25,683	$	26,175	$	28,409
Commercial mortgage loans		11,481		11,744		11,803		12,105		12,407
Commercial construction loans		2,965		3,277		3,784		4,147		4,491
Commercial leases		3,271		3,388		3,535		3,584		3,532

Subtotal - commercial		43,725		44,540		44,805		46,011		48,839
Consumer:
Residential mortgage loans		7,707		7,918		8,035		8,229		8,489
Home equity		11,987		12,186		12,174		12,377		12,511
Automobile loans		10,285		10,180		8,995		8,972		8,741
Credit card		1,841		1,863		1,990		1,973		1,914
Other consumer loans and leases		687		736		780		857		935

Subtotal - consumer		32,507		32,883		31,974		32,408		32,590

Total portfolio loans and leases	$	76,232	$	77,423	$	76,779	$	78,419	$	81,429

Core business activity		1,983		1,364		1,851		1,775		2,989
Portfolio management activity		167		243		216		288		352

Total loans held for sale		2,150		1,607		2,067		2,063		3,341
Operating lease equipment		489		492		499		486		474
Loans and Leases Serviced for Others (a):
Commercial and industrial loans		492		503		1,193		1,367		1,706
Commercial mortgage loans		315		291		264		256		264
Commercial construction loans		43		134		196		196		216
Commercial leases		143		146		150		149		152
Residential mortgage loans		51,325		50,293		48,638		46,837		43,527
Home equity		—		—		263		266		267
Automobile loans		—		—		1,230		1,394		1,569
Credit card		—		—		15		15		15
Other consumer loans and leases		—		—		7		7		7

Total loans and leases serviced for others		52,318		51,367		51,956		50,487		47,723

Total loans and leases serviced	$	131,189	$	130,889	$	131,301	$	131,455	$	132,967

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

Fifth Third Bancorp and Subsidiaries

Regulatory Capital (a)

$ in millions

(unaudited)


	As of
	June 2010			March 2010			December 2009			September 2009			June 2009
Tier I capital:
Shareholders’ equity	$	13,701		$	13,408		$	13,497		$	13,688		$	13,700
Goodwill and certain other intangibles		(2,537	)		(2,556	)		(2,565	)		(2,559	)		(2,564	)
Unrealized (gains) losses		(440	)		(288	)		(240	)		(285	)		(152	)
Qualifying trust preferred securities		2,763			2,763			2,763			2,763			2,763
Other		(25	)		(30	)		(27	)		(33	)		(5	)

Total tier I capital	$	13,462		$	13,297		$	13,428		$	13,574		$	13,742

Total risk-based capital:
Tier I capital	$	13,462		$	13,297		$	13,428		$	13,574		$	13,742
Qualifying allowance for credit losses		1,258			1,276			1,284			1,308			1,350
Qualifying subordinated notes		3,012			2,843			2,923			3,044			2,980

Total risk-based capital	$	17,732		$	17,416		$	17,635		$	17,926		$	18,072

Risk-weighted assets (b)	$	97,888		$	99,220		$	100,862		$	102,875		$	106,538
Ratios:
Average shareholders’ equity to average assets		12.04	%		11.92	%		12.31	%		12.24	%		10.78	%
Regulatory capital:
Fifth Third Bancorp
Tier I capital		13.75	%		13.40	%		13.31	%		13.19	%		12.90	%
Total risk-based capital		18.11	%		17.55	%		17.48	%		17.43	%		16.96	%
Tier I leverage		12.21	%		12.00	%		12.43	%		12.34	%		12.17	%
Tier I common equity		7.22	%		6.97	%		7.00	%		7.01	%		6.94	%
Fifth Third Bank (c)
Tier I capital		14.34	%		13.89	%		13.50	%		13.41	%		11.53	%
Total risk-based capital		16.35	%		15.88	%		15.56	%		15.47	%		14.38	%
Tier I leverage		12.67	%		12.41	%		12.69	%		12.76	%		9.89	%
Tier I common equity		14.34	%		13.89	%		13.50	%		13.41	%		11.69	%
Fifth Third Bank (Michigan) (c)
Tier I capital		—			—			—			—			10.13	%
Total risk-based capital		—			—			—			—			12.07	%
Tier I leverage		—			—			—			—			9.45	%
Tier I common equity		—			—			—			—			9.18	%
Fifth Third Bank N.A. (c)
Tier I capital		—			—			—			—			12.83	%
Total risk-based capital		—			—			—			—			14.12	%
Tier I leverage		—			—			—			—			10.63	%
Tier I common equity		—			—			—			—			12.83	%

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

(b)

Under the banking agencies’ risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together resulting in the Bancorp’s total risk weighted assets.

(c)	As of September 30, 2009, the Fifth Third Bank (Michigan) and Fifth Third Bank N.A. charters were merged into the Fifth Third Bank charter.

Fifth Third Bancorp and Subsidiaries

Summary of Credit Loss Experience

$ in millions

(unaudited)


	For the Three Months Ended
	June 2010			March 2010			December 2009			September 2009			June 2009
Average loans and leases (excluding held for sale):
Commercial and industrial loans	$	26,176		$	26,294		$	25,816		$	27,400		$	28,027
Commercial mortgage loans		11,659			11,708			11,981			12,269			12,463
Commercial construction loans		3,160			3,700			4,024			4,337			4,672
Commercial leases		3,336			3,467			3,574			3,522			3,512
Residential mortgage loans		7,805			7,976			8,129			8,355			8,713
Home equity		12,102			12,338			12,291			12,452			12,636
Automobile loans		10,170			10,185			8,973			8,871			8,692
Credit card		1,859			1,940			1,982			1,955			1,863
Other consumer loans and leases		706			773			831			899			995

Total average loans and leases (excluding held for sale)	$	76,973		$	78,381		$	77,601		$	80,060		$	81,573

Losses charged off:
Commercial and industrial loans	($	111	)	($	175	)	($	197	)	($	271	)	($	185	)
Commercial mortgage loans		(85	)		(102	)		(144	)		(124	)		(89	)
Commercial construction loans		(45	)		(80	)		(134	)		(130	)		(79	)
Commercial leases		(1	)		(4	)		(11	)		—			(1	)
Residential mortgage loans		(85	)		(88	)		(78	)		(92	)		(113	)
Home equity		(64	)		(75	)		(85	)		(82	)		(90	)
Automobile loans		(32	)		(44	)		(41	)		(44	)		(48	)
Credit card		(44	)		(46	)		(46	)		(47	)		(47	)
Other consumer loans and leases		(5	)		(8	)		(7	)		(6	)		(6	)

Total losses		(472	)		(622	)		(743	)		(796	)		(658	)
Recoveries of losses previously charged off:
Commercial and industrial loans		7			14			14			15			8
Commercial mortgage loans		7			3			2			6			4
Commercial construction loans		2			2			(1	)		4			—
Commercial leases		1			—			3			—			—
Residential mortgage loans		—			—			—			—			1
Home equity		3			2			3			2			2
Automobile loans		12			13			9			10			12
Credit card		2			2			2			2			2
Other consumer loans and leases		4			4			3			1			3

Total recoveries		38			40			35			40			32
Net losses charged off:
Commercial and industrial loans		(104	)		(161	)		(183	)		(256	)		(177	)
Commercial mortgage loans		(78	)		(99	)		(142	)		(118	)		(85	)
Commercial construction loans		(43	)		(78	)		(135	)		(126	)		(79	)
Commercial leases		—			(4	)		(8	)		—			(1	)
Residential mortgage loans		(85	)		(88	)		(78	)		(92	)		(112	)
Home equity		(61	)		(73	)		(82	)		(80	)		(88	)
Automobile loans		(20	)		(31	)		(32	)		(34	)		(36	)
Credit card		(42	)		(44	)		(44	)		(45	)		(45	)
Other consumer loans and leases		(1	)		(4	)		(4	)		(5	)		(3	)

Total net losses charged off	($	434	)	($	582	)	($	708	)	($	756	)	($	626	)

Net charge-off Ratios:
Commercial and industrial loans		1.58	%		2.49	%		2.81	%		3.70	%		2.53	%
Commercial mortgage loans		2.68	%		3.42	%		4.69	%		3.82	%		2.73	%
Commercial construction loans		5.46	%		8.57	%		13.28	%		11.56	%		6.76	%
Commercial leases		(0.01	%)		0.44	%		0.88	%		(0.04	%)		0.02	%
Residential mortgage loans		4.35	%		4.46	%		3.82	%		4.38	%		5.17	%
Home equity		2.03	%		2.38	%		2.65	%		2.54	%		2.81	%
Automobile loans		0.80	%		1.27	%		1.38	%		1.52	%		1.65	%
Credit card		9.05	%		9.23	%		8.81	%		9.08	%		9.64	%
Other consumer loans and leases		0.31	%		2.07	%		2.49	%		2.62	%		1.95	%

Total net charge-off ratio		2.26	%		3.01	%		3.62	%		3.75	%		3.08	%

Fifth Third Bancorp and Subsidiaries

Asset Quality

$ in millions

(unaudited)


	For the Three Months Ended
	June 2010			March 2010			December 2009			September 2009			June 2009
Allowance for Credit Losses
Allowance for loan and lease losses, beginning	$	3,802		$	3,749		$	3,681		$	3,485		$	3,070
Impact of cumulative effect of change in accounting principle		—			45			—			—			—
Total net losses charged off		(434	)		(582	)		(708	)		(756	)		(626	)
Provision for loan and lease losses		325			590			776			952			1,041

Allowance for loan and lease losses, ending	$	3,693		$	3,802		$	3,749		$	3,681		$	3,485
Reserve for unfunded commitments, beginning	$	260		$	294		$	284		$	239		$	231
Impact of cumulative effect of change in accounting principle		—			(43	)		—			—			—
Provision for unfunded commitments		(6	)		9			10			45			8

Reserve for unfunded commitments, ending	$	254		$	260		$	294		$	284		$	239

Components of allowance for credit losses:
Allowance for loan and lease losses	$	3,693		$	3,802		$	3,749		$	3,681		$	3,485
Reserve for unfunded commitments		254			260			294			284			239

Total allowance for credit losses	$	3,947		$	4,062		$	4,043		$	3,965		$	3,724

Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
Commercial and industrial loans	$	731		$	746		$	734		$	752		$	603
Commercial mortgage loans		773			853			898			912			760
Commercial construction loans		383			479			646			697			684
Commercial leases		45			55			67			51			51
Residential mortgage loans		282			266			275			267			262
Home equity		21			23			21			24			26
Automobile loans		1			1			1			1			1
Other consumer loans and leases		—			—			—			—			—

Total nonaccrual portfolio loans and leases		2,236			2,423			2,642			2,704			2,387
Restructured loans and leases - commercial (non accrual)		48			39			47			18			12
Restructured loans and leases - consumer (non accrual)		246			271			258			225			188

Total nonperforming portfolio loans and leases		2,530			2,733			2,947			2,947			2,587
Repossessed personal property		16			21			22			22			21
Other real estate owned		423			375			275			251			232

Total nonperforming assets (a)		2,969			3,129			3,244			3,220			2,840
Nonaccrual loans held for sale		163			239			220			286			352
Restructured loans - commercial (non accrual) held for sale		4			4			4			2			—

Total nonperforming assets including loans held for sale	$	3,136		$	3,372		$	3,468		$	3,508		$	3,192

Restructured Consumer loans and leases (accrual)	$	1,561		$	1,480		$	1,392		$	1,280		$	1,074
Restructured Commercial loans and leases (accrual)	$	109		$	76		$	68			—			—
Ninety days past due loans and leases:
Commercial and industrial loans	$	48		$	63		$	118		$	256		$	142
Commercial mortgage loans		53			44			59			184			131
Commercial construction loans		37			9			17			168			60
Commercial leases		4			4			4			4			5
Residential mortgage loans		107			157			189			198			242
Home equity		90			89			99			104			99
Automobile loans		12			13			17			17			18
Credit card		46			57			64			60			65
Other consumer loans and leases		—			—			—			1			—

Total ninety days past due loans and leases	$	397		$	436		$	567		$	992		$	762

Ratios
Net losses charged off as a percent of average loans and leases		2.26	%		3.01	%		3.62	%		3.75	%		3.08	%
Allowance for loan and lease losses:
As a percent of loans and leases		4.85	%		4.91	%		4.88	%		4.69	%		4.28	%
As a percent of nonperforming loans and leases (a)		146	%		139	%		127	%		125	%		135	%
As a percent of nonperforming assets (a)		124	%		122	%		116	%		114	%		123	%
Nonperforming loans and leases as a percent of portfolio loans, leases and other assets, including other real estate owned (a)		3.30	%		3.51	%		3.82	%		3.75	%		3.17	%
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned (a)		3.87	%		4.02	%		4.22	%		4.09	%		3.48	%
Nonperforming assets as a percent of total loans, leases and other assets, including other real estate owned		3.98	%		4.24	%		4.38	%		4.34	%		3.75	%

(a)	Does not include nonaccrual loans held for sale

Fifth Third Bancorp and Subsidiaries

Regulation G, Non-GAAP Reconcilation

$ and shares in millions

(unaudited)


	For the Three Months Ended
	June 2010		March 2010		December 2009		September 2009		June 2009
Total shareholders’ equity (U.S. GAAP)	13,701		13,408		13,497		13,688		13,700
Less:
Preferred stock	(3,631	)	(3,620	)	(3,609	)	(3,599	)	(3,588	)
Goodwill	(2,417	)	(2,417	)	(2,417	)	(2,417	)	(2,417	)
Intangible assets	(83	)	(94	)	(106	)	(119	)	(133	)

Tangible common equity, including unrealized gains / losses (a)	7,570		7,277		7,365		7,553		7,562
Less: Accumulated other comprehensive income / loss	(440	)	(288	)	(241	)	(285	)	(152	)

Tangible common equity, excluding unrealized gains / losses (b)	7,130		6,989		7,124		7,268		7,410
Add back: Preferred stock	3,631		3,620		3,609		3,599		3,588

Tangible equity (c)	10,761		10,609		10,733		10,867		10,998

Total assets (U.S. GAAP)	112,025		112,651		113,380		110,740		115,984
Less:
Goodwill	(2,417	)	(2,417	)	(2,417	)	(2,417	)	(2,417	)
Intangible assets	(83	)	(94	)	(106	)	(119	)	(133	)

Tangible assets, including unrealized gains / losses (d)	109,525		110,140		110,857		108,204		113,434
Less: Accumulated other comprehensive income / loss, before tax	(677	)	(443	)	(370	)	(438	)	(234	)

Tangible assets, excluding unrealized gains / losses (e)	108,848		109,697		110,487		107,766		113,200

Total shareholders’ equity (U.S. GAAP)	13,701		13,408		13,497		13,688		13,700
Goodwill and certain other intangibles	(2,537	)	(2,556	)	(2,565	)	(2,559	)	(2,564	)
Unrealized gains	(440	)	(288	)	(241	)	(285	)	(152	)
Qualifying trust preferred securities	2,763		2,763		2,763		2,763		2,763
Other	(25	)	(30	)	(26	)	(33	)	(5	)

Tier I capital	13,462		13,297		13,428		13,574		13,742
Less:
Preferred stock	(3,631	)	(3,620	)	(3,609	)	(3,599	)	(3,588	)
Qualifying trust preferred securities	(2,763	)	(2,763	)	(2,763	)	(2,763	)	(2,763	)

Tier I common equity (f)	7,068		6,914		7,056		7,212		7,391

Common shares outstanding (g)	796		795		795		795		795

Risk-weighted assets, determined in accordance with prescribed regulatory requirements (h)	97,888		99,220		100,862		102,875		106,538

Ratios:
Tangible equity (c) / (e)	9.89	%	9.67	%	9.71	%	10.08	%	9.72	%
Tangible common equity (excluding unrealized gains/losses) (b) / (e)	6.55	%	6.37	%	6.45	%	6.74	%	6.55	%
Tangible common equity (including unrealized gains/losses) (a) / (d)	6.91	%	6.61	%	6.64	%	6.98	%	6.67	%
Tangible common equity as a percent of risk-weighted assets
(excluding unrealized gains/losses) (b) / (h)	7.28	%	7.04	%	7.06	%	7.07	%	6.96	%
Tangible book value per share (a) / (g)	9.51		9.16		9.26		9.50		9.51
Tier I common equity (f) / (h)	7.22	%	6.97	%	7.00	%	7.01	%	6.94	%

Fifth Third Bancorp and Subsidiaries

Segment Presentation

$ in millions

(unaudited)


For the three months ended June 30, 2010	Commercial Banking		Branch Banking		Consumer Lending		Investment Advisors		Other/ Eliminations		Total
Net interest income (a)	390		380		96		36		(15	)	887
Provision for loan and lease losses	(188	)	(121	)	(117	)	(8	)	109		(325	)

Net interest income after provision for loan and lease losses	202		259		(21	)	28		94		562
Total noninterest income	164		227		123		87		19		620
Total noninterest expense	(241	)	(391	)	(139	)	(100	)	(64	)	(935	)

Net income (loss) before taxes	125		95		(37	)	15		49		247
Applicable income taxes (a)	(9	)	(33	)	13		(5	)	(21	)	(55	)

Net income (loss)	116		62		(24	)	10		28		192
Dividends on preferred stock	—		—		—		—		62		62

Net income (loss) available to common shareholders	116		62		(24	)	10		(34	)	130

For the three months ended March 31, 2010	Commercial Banking		Branch Banking		Consumer Lending		Investment Advisors		Other/ Eliminations		Total
Net interest income (a)	377		382		109		38		(5	)	901
Provision for loan and lease losses	(278	)	(153	)	(137	)	(13	)	(9	)	(590	)

Net interest income after provision for loan and lease losses	99		229		(28	)	25		(14	)	311
Total noninterest income	161		213		155		91		7		627
Total noninterest expense	(237	)	(374	)	(118	)	(96	)	(131	)	(956	)

Net income (loss) before taxes	23		68		9		20		(138	)	(18	)
Applicable income taxes (a)	28		(24	)	(3	)	(7	)	14		8

Net income (loss)	51		44		6		13		(124	)	(10	)
Dividends on preferred stock	—		—		—		—		62		62

Net income (loss) available to common shareholders	51		44		6		13		(186	)	(72	)

For the three months ended December 31, 2009	Commercial Banking		Branch Banking		Consumer Lending		Investment Advisors		Other/ Eliminations		Total
Net interest income (a)	357		388		109		40		(12	)	882
Provision for loan and lease losses	(405	)	(159	)	(128	)	(14	)	(70	)	(776	)

Net interest income after provision for loan and lease losses	(48	)	229		(19	)	26		(82	)	106
Total noninterest income	144		236		132		89		50		651
Total noninterest expense	(243	)	(349	)	(130	)	(94	)	(151	)	(967	)

Net income (loss) before taxes	(147	)	116		(17	)	21		(183	)	(210	)
Applicable income taxes (a)	84		(41	)	6		(7	)	70		112

Net income (loss)	(63	)	75		(11	)	14		(113	)	(98	)
Dividends on preferred stock	—		—		—		—		62		62

Net income (loss) available to common shareholders	(63	)	75		(11	)	14		(175	)	(160	)

For the three months ended September 30, 2009	Commercial Banking		Branch Banking		Consumer Lending		Investment Advisors		Other/ Eliminations		Total
Net interest income (a)	351		396		114		41		(28	)	874
Provision for loan and lease losses	(447	)	(149	)	(142	)	(16	)	(198	)	(952	)

Net interest income after provision for loan and lease losses	(96	)	247		(28	)	25		(226	)	(78	)
Total noninterest income	115		227		147		84		278		851
Total noninterest expense	(245	)	(336	)	(115	)	(91	)	(89	)	(876	)

Net income (loss) before taxes	(226	)	138		4		18		(37	)	(103	)
Applicable income taxes (a)	102		(49	)	(1	)	(6	)	(40	)	6

Net income (loss)	(124	)	89		3		12		(77	)	(97	)
Dividends on preferred stock	—		—		—		—		62		62

Net income (loss) available to common shareholders	(124	)	89		3		12		(139	)	(159	)

For the three months ended June 30, 2009	Commercial Banking (b)		Branch Banking (b)		Consumer Lending (b)		Investment Advisors		Other/ Eliminations (b)		Total
Net interest income (a)	339		395		136		39		(73	)	836
Provision for loan and lease losses	(290	)	(149	)	(169	)	(18	)	(415	)	(1,041	)

Net interest income after provision for loan and lease losses	49		246		(33	)	21		(488	)	(205	)
Total noninterest income	165		229		190		81		1,918		2,583
Total noninterest expense	(262	)	(347	)	(152	)	(87	)	(173	)	(1,021	)

Net income (loss) before taxes	(48	)	128		5		15		1,257		1,357
Applicable income taxes (a)	46		(45	)	(2	)	(6	)	(468	)	(475	)

Net income (loss)	(2	)	83		3		9		789		882
Dividends on preferred stock	—		—		—		—		26		26

Net income (loss) available to common shareholders	(2	)	83		3		9		763		856

(a)	Includes taxable equivalent adjustments of $5 million for the three months ended June 30, 2010, $4 million for the three months ended March 31, 2010 and December 30, 2009 and $5 million for the three months ended September 30, 2009 and June 30, 2009.

(b)

Prior period segment financial information has been restated to reflect the sale of the Processing Business on June 30, 2009 and the elimination of the Processing Solutions segment. Financial information for the Processing Business has been reclassified under General Corporate/Other for all periods presented. The retained retail credit card and commercial multi-card service business are included in Consumer Lending and Commercial Banking segments, respectively, for all periods presented. Additionally, interchange revenue previously recorded in the Processing Solutions segment and associated with cards currently included in Branch Banking, is now included in the Branch Banking segment for all periods presented.

Fifth Third Bancorp (FITB) 8-KFifth Third Bancorp Announces Second Quarter 2010 Earnings