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

2Q10 Earnings Conference Call

July 22, 2010

Please

refer

earnings

release

dated

July

22,

2010

for

further

information.

Exhibit 99.2

Cautionary statement

This report may contain 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 and our most

recent quarterly report on Form 10-Q. 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.

2Q10 in review

•

Net income of $192 million

versus 1Q10 net loss of $10

million

•

Pre-provision net revenue of

$567 million consistent with

1Q10

•

Average core deposits up

$582 million, or 1%

sequentially

–

Average transaction

deposits up $1.3 billion, or

2% sequentially

•

Strong capital ratios:

–

Tier 1 common 7.22%

–

Leverage ratio 12.21%

–

Tier 1 ratio 13.75%

–

Total capital ratio 18.11%

•

Extended $20 billion of new

and renewed credit

Strong operating trends

•

Net charge-offs declined 25%

sequentially (lowest level since

2Q08)

•

Nonperforming assets declined

5% and nonperforming loans

declined 8% sequentially

(lowest levels since the first

half of 2009)

–

Total delinquencies

declined 17% sequentially

(lowest level since 2Q07)

•

Loan loss allowance of 4.85%,

146% of nonperforming loans

and leases and more than two

times annualized 2Q10 net

charge-offs

•

Realized credit losses have

been significantly below SCAP

scenarios

Significant improvements in credit

•

Focusing on credit

quality, portfolio

management and loss

mitigation strategies

•

Executing on customer

satisfaction initiatives and

improving customer

loyalty

•

Enhancing breadth and

profitability of offerings

and relationships

•

Becoming an employer of

choice in the industry by

continuing to enhance the

employee engagement

Actions driving progress

Financial summary

•

2Q10 earnings per share of $0.16 driven by strong core performance and improving credit trends

–

Pre-provision net revenue* of $567M consistent with prior quarter

–

2Q10 net charge-offs of $434M versus $582M in 1Q10; 2Q10 net charge-off ratio of 2.26%, down 75 bps sequentially

•

Sequential declines in net interest income and net interest margin impacted by difficult environment for asset generation

–

Average core deposits grew 1% compared with the prior quarter and 12% versus 2Q09

•

Fee

income

$620M;

$38M

decline

mortgage

banking

net

revenue

otherwise

offset

other

strong

fee

income

performance

•

FTPS gain of $1.8B in 2Q09 noninterest income results

Actual

Seq.

YOY

($ in millions)

2Q09

1Q10

2Q10

Average Balances

Commercial loans

$48,674

$45,169

$44,331

($838)

(2%)

($4,343)

(9%)

Consumer loans

32,899

33,212

32,642

(570)

(2%)

(257)

(1%)

Total loans & leases (excluding held-for-sale)

$81,573

$78,381

$76,973

(1,408)

(2%)

(4,600)

(6%)

Core deposits

$68,727

$76,262

$76,844

$582

$8,117

12%

Income Statement Data

Net interest income (taxable equivalent)

$836

$901

$887

($14)

(2%)

$51

Provision for loan and lease losses

1,041

590

325

(265)

(45%)

(716)

(69%)

Total noninterest income

2,583

627

620

(7)

(1%)

(1,963)

(76%)

Total noninterest expense

1,021

956

935

(21)

(2%)

(86)

(8%)

Net Income (loss)

$882

($10)

$192

$202

($690)

(78%)

Diluted earnings after preferred dividends

$856

($72)

$130

$202

($726)

(85%)

Pre-provision net revenue*

$2,393

$568

$567

($1)

($1,826)

(76%)

Earnings per share, basic

$1.35

($0.09)

$0.16

$0.25

($1.19)

(88%)

Earnings per share, diluted

$1.15

($0.09)

$0.16

$0.25

($0.99)

(86%)

Net charge-off ratio

3.08%

3.01%

2.26%

(75bps)

(25%)

(82bps)

(27%)

Net interest margin

3.26%

3.63%

3.57%

(6bps)

(2%)

31bps

10%

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

Net interest income

NII and NIM (FTE)

•

Sequential trends in net interest income and net

interest margin (FTE) reflect weak loan demand

and impact of excess liquidity held in cash

equivalents

–

NII down $14 million, or 2%, sequentially

and up $51 million, or 6%, year-over-year

–

NIM down 6 bps sequentially and up 31

bps year-over-year

•

Expect improved NII and NIM in 2H10 from CD

maturities, better loan spreads, and public funds

deposit runoff

* Represents purchase accounting adjustments included in net interest income.

•

Yield on interest-earning assets down 11 bps

sequentially and year-over-year

–

Average loan and lease yield down 1 bp

sequentially and up 15 bps versus prior year

•

Cost of interest-bearing liabilities down 6 bps

sequentially and 44 bps versus prior year

(bps)

Yields and rates

Balance sheet:

Continued growth in core funding

•

Extended $20B of new and renewed credit in 2Q10

•

CRE loans down 4% sequentially and 14% from the previous year

•

C&I loans were flat sequentially and down 7% from the previous year largely

due to lower line utilization and soft demand

•

Consumer loans down 2% sequentially and 1% from the previous year

•

Warehoused residential mortgage loans held-for-sale were $2.0 billion at

quarter end

•

Core deposit to loan ratio of 100%, up from 84% in 2Q09

•

Everyday Great Rates strategy continues to drive core deposit growth

–

DDAs

up 3% sequentially and 16% year-over-year

–

Retail transaction deposits up 5% sequentially and 12% from the previous

year,

driven

growth

savings,

interest

checking,

and

demand

deposit

balances

–

Commercial transaction deposits down 2% sequentially and up 41% from

the previous year

•

Reduced

wholesale

funding

$1.2

billion

sequentially

and

$12.4

billion

from

the previous year

–

Non-core deposits down 10% sequentially and 45% from the previous year

–

Short term borrowings up 4% sequentially and down 80% from the

previous year

–

Long-term debt down 5% sequentially and 2% from the previous year

•

Portion of excess core funding invested in agency mortgage-backed securities

(balance sheet hedges added to mitigate interest rate risk)

^ Excludes loans held-for-sale

Note: Numbers may not sum due to rounding

Actual

Seq.

YOY

($ in millions)

2Q09

1Q10

2Q10

Service charges on deposits

$162

$142

$149

($13)

(8%)

Corporate banking revenue

14%

Mortgage banking revenue

147

152

114

(38)

(25%)

(33)

(23%)

Investment advisory services

(4)

(4%)

10%

Card and processing revenue

243

15%

(159)

(65%)

Gain on sale of processing business

1,764

(1,764)

(100%)

Other noninterest income

15%

75%

Securities gain (losses), net

(6)

(43%)

60%

Securities gains, net -

non-qualifying hedges on MSRs

(41)

(100%)

Noninterest income

$2,583

$627

$620

($7)

(1%)

($1,963)

(76%)

Stable income in difficult environment

•

Noninterest income of $620M declined $7M, or 1%, compared with 1Q10, impacted by lower mortgage banking net

revenue and credit-related costs

–

Sequential strength in card and processing revenue (+15%), corporate banking revenue (+14%), and deposit

service charges (+5%)

•

Year-over-year decline driven by $1.8B gain from the completion of the processing business sale in 2Q09

•

OREO write-downs, negative fair value adjustments, and gains/losses on loan

sales recorded in other noninterest

income continue to negatively impact noninterest income:

Noninterest income

Actual

($ in millions)

2Q09

1Q10

2Q10

Gain / (loss) on sale of loans

$11

$25

Commercial loans HFS FV adjustment

(6)

(9)

(7)

Gain / (loss) on sale of OREO properties

(13)

(16)

(13)

Total credit-related revenue

($8)

($1)

($14)

Note: Numbers may not sum due to rounding

Well-controlled expenses

Noninterest expense

Actual

Seq.

YOY

($ in millions)

2Q09

1Q10

2Q10

Salaries, wages and incentives

$346

$329

$356

$27

$10

Employee benefits

(13)

(15%)

(2)

(3%)

Net occupancy expense

(3)

(4%)

(6)

(8%)

Technology and communications

(1%)

Equipment expense

Card and processing expense

28%

(44)

(58%)

Other noninterest expense

370

365

326

(39)

(11%)

(44)

(12%)

Noninterest expense

$1,021

$956

$935

($21)

(2%)

($86)

(8%)

•

Noninterest expense of $935M declined $21M, or 2%, compared with

1Q10, impacted by lower credit-related costs

–

Growth in salaries, wages, and incentives due to higher levels of production and investment in sales force

expansion

•

Year-over-year decline driven by lower payments processing expense related

to the processing business sale in

2Q09

•

Improvement in problem asset work-out expenses recorded in other noninterest expense due to lower repurchase

expenses:

Actual

($ in millions)

2Q09

1Q10

2Q10

Make whole losses & recourse reserve

$10

$39

$18

Provision for unfunded commitments

(6)

Derivative valuation adjustments

OREO expense

Other work-out related expenses

Total credit-related operating expenses

$57

$91

$55

Note: Numbers may not sum due to rounding

Strong capital position

Tangible common equity ratio excludes unrealized securities gains/losses after-tax.

Capital ratios remained strong during the quarter and increased from prior quarter and prior year.

Tangible common equity ratio^

Tier I common equity

Tier I capital ratio

Total risk-based capital ratio

Potential impact of key elements of Dodd-Frank Act

and other recent financial legislation*

Scope of activity

Potential impact**

Volcker Rule/

Derivatives

•

Vast majority of derivatives activities are exempted

(FITB generally not a market maker)

•

Any proprietary trading de minimis

•

“PE”

Fund investments <$100M (<1% of Tier 1 capital)

•

Expect minimal financial impact from loss of existing

revenue

•

Potentially higher compliance costs despite small levels

of non-exempt activities

Debit

Interchange

(Durbin

Amendment)

•

LTM^

debit interchange revenue of $190M

•

LTM debit interchange $ volume: $15B

–

Signature $11.6B, PIN $3.4B

–

Signature 328M, PIN 84M

•

Will not know what “reasonable”

and “proportional”

mean

until after Fed study

•

Each 10 bps reduction in overall interchange rates would

represent ~$15M revenue impact annually, before effect

of mitigation

•

Additional follow-on effects on industry debit card

payments business could result from changes

Deposit

Insurance

•

Current assessed base (Deposits): $80B

•

Proposed assessed base (Assets-TE): $97B

•

FITB percentage share of new industry assessment

base lower than its percentage share of old base (due

to lower reliance on wholesale funding)

•

Don’t know assessment rates on new base

•

DIF reserve target increase to 1.35% from 1.15%

–

May be achieved from banks >$50B through higher

annual assessments or longer period of elevated

assessments

Reg. E

•

Requires customers to “opt-in”

to allow non-recurring

electronic overdrafts (e.g. debit, ATM) from accounts

•

Estimated ~$20M per quarter ($80M annualized)

reduction to deposit service charges, before effect of

mitigation

Potential

impact

these

and

other

elements

financial

regulatory

reform,

such as CFPA activities

and many other aspects, are unknown at this time

TRUPs

exclusion

(Collins

Amendment)

•

280 bps of non-common Tier 1 capital in capital

structure

•

>300 bps of non-common Tier 1 currently

–

Potentially more than may be needed post-Basel III

•

3-year transition period begins 2013

•

Will manage capital structure to desired composition

* Based on current understanding of legislation.

Potential impact, as noted above, is not intended to be inclusive of all potential impacts that may result from implementation of legislation. Please refer also to cautionary

statement.

^ LTM = last twelve months

•

LTM debit interchange transaction volume: 412M

Fifth Third –

Traditional Banking Model

Fifth Third’s business model is not oriented toward capital markets activities, trading,

or other systemic or interconnected risks

—

$100B in assets, primarily core funded rather than wholesale; <1% U.S. banking

assets

Volcker Rule and derivatives legislation should have minimal effect on revenues and

activities

—

Didn’t/don’t originate/sell CDOs

—

Didn’t/don’t originate/sell subprime mortgages or Option ARMs

—

De minimis

market making in derivatives

—

De minimis

proprietary trading

—

Small private equity portfolio <$100M (holding company subsidiary)

—

Loss in Lehman bankruptcy less than $2M (interconnectedness)

—

Daily VaR

less than $500 thousand

Business

model largely that of pre-Gramm-Leach-Bliley Act banking company

Broad-based improvement in charge-off trends

Net charge-offs by loan type

Net charge-offs by geography

* NPAs

exclude loans held-for-sale.

Florida

$106

24%

Michigan

111

26%

Subtotal

$217

50%

Other

217

50%

Total

$434

100%

Actual

Seq.

YOY

($ in millions)

2Q09

1Q10

2Q10

C&I

$177

$161

$104

($57)

(35%)

($73)

(41%)

Commercial mortgage

($21)

(21%)

($7)

(8%)

Commercial construction

($35)

(45%)

($36)

(46%)

Commercial lease

Commercial

$342

$225

($117)

(34%)

($117)

(34%)

Residential mortgage loans

112

($3)

(3%)

($27)

(24%)

Home equity

($12)

(16%)

($27)

(31%)

Automobile

($11)

(35%)

($16)

(44%)

Credit card

($2)

(5%)

($3)

(7%)

Other consumer

($3)

(75%)

($2)

(67%)

Consumer

$284

$240

$209

($31)

(13%)

($75)

(26%)

Total net charge-offs

$626

$582

$434

($148)

(25%)

($192)

(31%)

$626

$756

$708

$582

Net charge-offs ($M)

Significant decline in charge-offs across both portfolios

$434

Commercial

$225

52%

Consumer

209

48%

Total

$434

100%

Nonperforming assets*

•

NPAs, excluding held-for-sale, of $3.0B

–

HFS portion represents additional $167M

•

Commercial NPAs

of $2.3B; down 6% from

the previous quarter

–

Homebuilder/developer NPAs

$431M;

represent 19% of total NPAs

•

Consumer NPAs

of $695M; down 3% from the

previous quarter

C&I / Lease

$837M, 28%

CRE

$1.4B, 48%

Residential

$614M, 21%

Other Consumer

$81M, 3%

ILLINOIS

INDIANA

FLORIDA

TENNESSEE

KENTUCKY

OHIO

MICHIGAN

NORTH

CAROLINA

OTHER /

NATIONAL

* NPAs

exclude loans held-for-sale.

Non-performing assets ($M)

$2,840

$3,220

$3,244

$3,129

Non-performing assets continue to improve

$2,969

Troubled debt restructurings (TDR) overview

Successive improvement in vintage performance during 2008

and 2009, even as volume of modification increased

Fifth Third’s mortgage portfolio TDRs

have redefaulted

at a

lower rate than other bank held portfolio modifications

—

Fifth Third’s TDRs

are about a third less likely to

redefault

than modifications on GSE mortgages

Of $1.8B in consumer TDRs, over $1.6B were on accrual

status and $246M were nonaccruals

—

$1.0

billion

TDRs

are

current

and

have

been

the

books 6 or more months; within that, $600 million of

TDRs

are current and have been on the books for more

than a year

As current TDRs

season, their default propensity declines

significantly

—

We do not typically see significant defaults on current

loans once a vintage approaches 12 months since

modification

TDR performance has improved in newer vintages

Outperforming redefault

benchmarks

Source: Fifth Third and OCC/OTS data; data through 4Q09; industry data cumulative through 4Q09

Mortgage TDR 60+ redefault

trend by vintage

1Q08 $69M

2Q08 $135M

3Q08 $146M

4Q08 $176M

1Q09 $221M

2Q09 $257M

Months since modification

Mortgage

TDR

60+

redefault

rate:

Fifth

Third

comparison

(through December 2009)

Fannie Mae

Industry

portfolio loans

Fifth Third

Volume by

vintage

Freddie Mac

3Q09 $386M

Current consumer TDRs

($Ms)

4Q09 $153M

$1.0

billion

2008

2009

Non-performing loans

Non-performing loans ($M)

$2.6B

$2.9B

$2.7B

Non-performing loans improving with lower

severity mix

$2.5B

Fifth Third’s non-performing loan inflows (relative to loans) were higher

than peers throughout 2008. Over the past four quarters, FITB inflows have

been lower than peers and generally in the top quartile.

FITB NPL inflows (relative to loans) vs. Peers

FITB

Peers include: MI, RF, KEY, STI, JPM, C, BBT, WFC, USB, BAC, HBAN, CMA, PNC, and MTB

New non-performing loan flows ($M)

NPL flows have declined significantly

Early stage delinquencies

Source: SNL and company reports. NPA and NCO ratios exclude loans held-for-sale and covered assets for peers where appropriate.

* 4Q08 net charge-offs included $800M in NCOs related to commercial losses moved to held-for-sale

FITB

credit

metrics

were

higher

than

peers

but

are

now

generally

better

than

peers

NPA ratio vs. peers

Net charge-off ratio vs. peers*

Loans 90+ days delinquent % vs. peers

Loans 30-89 days delinquent % vs. peers

Strong reserve position

Source: SNL and company reports. NPAs/NPLs

exclude

held-for-sale portion for all banks and covered assets for BBT, USB, and ZION.

2Q10 coverage ratios are strong

relative to peers (1Q10)

Industry leading reserve level

Fifth Third

(2Q10)

Peer Average

(1Q10)

Updated credit loss expectations vs. SCAP scenarios

$4.1B

$5.0B

$2.8B

Moody’s Recession

Case** Assumptions

(May 2010)

Moody’s Base

Case** Assumptions

(May 2010)

Realized credit losses have been significantly below SCAP submissions; expected to continue

SCAP Baseline Scenario

(Submitted; Mar 2009)

SCAP Adverse Scenario*

(Supervisory; Mar 2009)

Red SCAP line represents more adverse scenario as adjusted by supervisors for additional assumed two-year losses. Supervisory estimates of total two-year losses

under more adverse scenario were not allocated by period. Estimate allocates total two-year supervisory losses using the allocation under Fifth Third’s submission.

Actual

$2.6B

Actual

$2.7B

Fifth Third

capitalized for this

level of credit losses

under SCAP (plus

surplus raised vs.

buffer)

Fifth Third’s realized credit losses

have been significantly below its

SCAP submitted baseline and

more adverse scenarios

–

In SCAP submissions, we

incorporated significant

conservatism, given then

prevailing negative economic

and industry trends and

extreme uncertainty in

potential loss outcomes

–

Economic and credit market

conditions are much

improved versus those

expected in spring 2009

Base and stress scenarios reflect

Moody’s Base Case and Moody’s

Weaker Recovery/ Mild Second

Recession Case (as of May

2010)**

Our current expectation is for

2010 losses to be lower than 2009

$2.9B

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

$3,000

$3,250

$3,500

$3,750

$4,000

$4,250

$4,500

$4,750

$5,000

$5,250

$5,500

2008

2009

2010

** Source for macroeconomic assumptions: Moody’s Economy.com as of May 2010. FITB results updated to reflect 2Q10 actual results.

Appendix

Balance Sheet:

Average loans & leases (incl. HFS)

Average core deposits

Income Statement:

Net interest income*

Net interest margin*

Noninterest income

Noninterest expense

Pre-provision net revenue

Asset Quality:

Net charge-offs

Loan loss allowance

Nonperforming assets^

Capital Ratios:

Tier I common equity

Tier I leverage

Tier I capital

Total risk-based capital

Category

Fifth Third: Third quarter 2010 outlook

3Q10 Outlook

$78.8 billion

$76.8 billion

$887 million

3.57%

$620 million

$935 million

$567 million

$434 million

$3.7 billion (4.85%)

$3.0 billion (3.87%)

7.2%

12.2%

13.8%

18.1%

Flat to down modestly

Lower than 2Q

Up $10-$20M

3.70% +/-

Down $20-$25M

Relatively stable

Down slightly, ~$560M range

~$450 million, +/-

$10-$15M

Likely down

Relatively stable

Organic growth

Please see cautionary statement for risk factors related to forward-looking statements.

Presented on a fully-taxable equivalent basis.

Ratios as a percent of loans excluding held-for-sale; allowance expectation assumes current expectation for credit and economic trends and is subject to review at quarter-end.

2Q10 Actual Results

Outlook as of July 22, 1010

Pre-tax pre-provision earnings

Core PPNR trend

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

•

Reported PPNR of $567M consistent with strong 1Q10 levels, reflecting fee income results

and lower expenses, partially offset by lower net interest income

•

Core PPNR of $551M, due to negative adjustments totaling $16M, resulting in sequential and

year-over-year declines of 3% and 2%, respectively

•

Excluding the impact of credit-related adjustments ($69M in 2Q10), PPNR down 6% versus

1Q10; down 2% versus 2Q09

Core PPNR reconciliation

2Q09

3Q09

4Q09

1Q10

2Q10

Reported PPNR*

$2,393

$844

$562

$568

$567

Adjustments:

Gain on sale of Visa shares

(244)

BOLI charge

(1)

Gain from sale of processing interest

(1,764)

Divested merchant and EFT revenue

(169)

Class B Visa swap fair value adjustment

Securities gains/losses

(5)

(8)

(2)

(14)

(8)

Visa litigation reserve expense

(73)

Other litigation reserve expense

FTPS warrants + puts

(20)

(10)

Seasonal pension expense

FDIC special assessment

Divested merchant and EFT expense

(estimated)

Core PPNR

$564

$535

$562

$569

$551

Credit

Items:

Fee income credit items

Noninterest expense credit items

111

Credit adjusted PPNR

$630

$690

$665

$661

$620

Core PPNR (2%); Credit adjusted PPNR (2%)

Updated stress testing -

process overview

Similar process to that used in our previous stress test applications; updated for actual

performance and current economic expectations

Moody’s “Base”

and “Weaker Recovery/Mild Second Recession”

scenarios key economic

assumptions

Commercial

—

33 geographic/industry sectors analyzed and regressed against economic and

performance drivers

—

Migration trends from criticized to nonaccrual and charge-off evaluated by region

and industry

Consumer

—

Portfolios subdivided into appropriate categories (i.e. liquidating vs. non-liquidating

home equity)

—

Results derived using combination of regression models, loss curves and roll rates,

and applied economic factors

–

Mortgage and home equity key correlation: HPI

–

Credit card key correlation: unemployment

–

Other consumer key correlations: unemployment and GDP

Base

Weaker Recovery /

Mild Second Recession

Economic Assumptions*

2010

Peak Unemployment

10.0%

10.5%

GDP

2.5%

0.4%

Avg. change in quarterly HPI

(0.8%)

(1.7%)

* Moody’s Economy.com; as of May 2010

Non-performing assets and net charge-offs:

Product view*

Total NPAs

Total NCOs

NPAs

exclude loans held-for-sale.

Total NPAs

Total NCOs

Non-performing assets and net charge-offs:

Geographic view*

NPAs

exclude loans held-for-sale.

($ in millions)

2Q09

3Q09

4Q09

1Q10

2Q10

Balance

$28,409

$26,175

$25,683

$26,131

$26,008

90+ days delinquent

$142

$256

$118

$63

$49

as % of loans

0.50%

0.98%

0.46%

0.24%

0.19%

NPAs

$634

$790

$781

$788

$792

as % of loans

2.23%

3.02%

3.04%

3.02%

3.05%

Net charge-offs

$177

$256

$183

$162

$104

as % of loans

2.53%

3.70%

2.81%

2.49%

1.59%

C&I

Commercial & industrial*

Loans by geography

Credit trends

Loans by industry

Comments

•

Commercial & industrial loans represented 34% of total loans

and 24% of net charge-offs

•

36% of 2Q10 losses on loans to companies in real estate

related industries

–

Loans to real estate related industries of $3.1B; 2Q10

NCO ratio of 4.9%

–

2Q10 C&I loss rate of 1.6%, excluding loans to real

estate related industries, 1.0%

•

FL represented 14% of 1Q10 losses, 6% of loans; MI

represented 35% of losses, 15% of loans

* NPAs

exclude loans held-for-sale.

Commercial mortgage*

Credit trends

Comments

•

Commercial

mortgage

loans

represented

15%

total

loans

and 18% of net charge-offs

•

Owner occupied 2Q10 NCO ratio of 1.6%, other non-owner

occupied 2Q10 NCO ratio of 3.6%

•

In 4Q08 reduced problem assets in most stressed markets (FL

and MI) through portfolio actions

•

Loans from FL/MI represented 40% of portfolio loans, 63% of

portfolio losses in 2Q10

* NPAs

exclude loans held-for-sale.

($ in millions)

2Q09

3Q09

4Q09

1Q10

2Q10

Balance

$12,407

$12,105

$11,803

$11,744

$11,481

90+ days delinquent

$131

$184

$59

$44

$53

as % of loans

1.06%

1.52%

0.50%

0.38%

0.46%

NPAs

$791

$968

$985

$1,002

$956

as % of loans

6.37%

8.00%

8.34%

8.53%

8.33%

Net charge-offs

$85

$118

$142

$99

$78

as % of loans

2.73%

3.82%

4.69%

3.42%

2.68%

Commercial mortgage

Loans by geography

Loans by industry

Commercial construction*

Credit trends

Comments

•

Commercial construction loans represented 4% of total loans

and 10% of net charge-offs

•

In 4Q08 reduced problem assets in most stressed markets (FL

and MI) through portfolio actions

•

Loans from FL/MI represented 28% of portfolio loans, 34% of

portfolio losses in 2Q10

* NPAs

exclude loans held-for-sale.

($ in millions)

2Q09

3Q09

4Q09

1Q10

2Q10

Balance

$4,491

$4,147

$3,784

$3,277

$2,965

90+ days delinquent

$60

$168

$16

$37

as % of loans

1.34%

4.04%

0.44%

0.28%

1.24%

NPAs

$735

$751

$707

$569

$482

as % of loans

16.36%

18.11%

18.68%

17.36%

16.26%

Net charge-offs

$79

$126

$135

$78

$43

as % of loans

6.76%

11.56%

13.28%

8.57%

5.46%

Commercial construction

Loans by industry

Loans by geography

Homebuilders/developers*

Loans by geography

Credit trends

Loans by industry

Comments

•

Originations of builder/developer loans suspended in 2007

•

Remaining portfolio balance of $1.2B, down 63% from peak of

$3.3B in 2Q08, represents approximately 2% of total loans and

3% of commercial loans

•

$48M of NCOs, down $33M sequentially (51% commercial

mortgage, 45% commercial construction, 4% C&I)

•

$431 of NPAs, down $90M sequentially (49% commercial

mortgage, 46% commercial construction, 5% C&I)

* NPAs

exclude loans held-for-sale.

($ in millions)

2Q09

3Q09

4Q09

1Q10

2Q10

Balance

$2,102

$1,846

$1,563

$1,324

$1,207

90+ days delinquent

$53

$79

$19

$12

as % of loans

2.51%

4.29%

1.19%

0.43%

1.03%

NPAs

$613

$600

$548

$520

$431

as % of loans

29.14%

32.51%

35.09%

39.28%

35.68%

Net charge-offs

$76

$108

$110

$81

$48

as % of loans

14.06%

21.92%

26.25%

22.89%

15.01%

Homebuilders/developers

Residential mortgage

1 liens: 100% ; weighted average LTV: 79%

Weighted average origination FICO: 726

Origination FICO distribution: <660 11%; 660-689 8%; 690-719

12%;

720-749

14%;

750+

31%;

Other

24%

(note: loans <660 includes CRA loans and FHA/VA loans)

Origination LTV distribution: <=70 26%; 70.1-80 41%; 80.1-90

11%; 90.1-95 6%; >95% 16%

Vintage distribution: 2010 4%; 2009 6%; 2008 13%; 2007 15%;

2006 15%; 2005 24%; 2004 and prior 23%

% through broker: 14%; performance similar to direct

Loans by geography

Credit trends

Portfolio details

Comments

Residential mortgage loans represented 10% of total loans

and 20% of net charge-offs

FL portfolio 27% of residential mortgage loans driving

61% of portfolio losses

FL lots ($234M) running at 33% annualized loss rate (YTD)

Mortgage company originations targeting 95% salability

Includes acquired loans where FICO at origination is not available

During 1Q09 the Bancorp modified its nonaccrual policy to exclude TDR loans less than 90 days past due because they were performing in accordance with restructured

terms. For comparability purposes, prior periods were adjusted to reflect this reclassification.

($ in millions)

2Q09

3Q09

4Q09

1Q10

2Q10

Balance

$8,489

$8,229

$8,035

$7,918

$7,707

90+ days delinquent

$242

$198

$189

$157

$107

as % of loans

2.85%

2.41%

2.35%

1.98%

1.38%

NPAs

$475

$484

$523

$521

$549

as % of loans

5.59%

5.89%

6.51%

6.57%

7.12%

Net charge-offs

$112

$92

$78

$88

$85

as % of loans

5.17%

4.38%

3.82%

4.46%

4.35%

Residential mortgage

Home equity

liens:

29%;

liens:

71%

Weighted

average

origination

FICO:

748

Origination FICO distribution: <660 4%; 660-689 8%; 690-719 13%; 720-749

17%; 750+ 49%; Other 10%

Average CLTV: 75% Origination CLTV distribution: <=70 38%; 70.1-80 22%;

80.1-90 18%; 90.1-95 7%; >95 15%

Vintage

distribution:

2010

2%;

2009

5%;

2008

11%;

2007

12%;

2006

16%;

2005 15%; 2004 and prior 40%

% through broker channels: 15% WA FICO: 734 brokered, 751 direct; WA

CLTV: 88% brokered; 72% direct

Portfolio details

Comments

Brokered loans by geography

Direct loans by geography

Credit trends

Home equity loans represented 16% of total loans and 14% of net

charge-offs

Approximately 15% of portfolio in broker product driving

approximately 40% total loss

Approximately

one

third

Fifth

Third

liens

are

behind

Fifth

Third

liens

Sequential improvement generally due to lower losses in FL and OH

2005/2006 vintages represent 30% of portfolio; account for 57% of

losses

Aggressive home equity line management strategies in place

Note: Brokered and direct home equity net charge-off ratios are calculated based on end of period loan balances

^ Includes acquired loans where FICO at origination is not available

($ in millions)

2Q09

3Q09

4Q09

1Q10

2Q10

Balance

$2,125

$2,028

$1,948

$1,906

$1,838

90+ days delinquent

$34

$38

$33

$29

as % of loans

1.58%

1.87%

1.72%

1.53%

1.57%

Net charge-offs

$39

$30

$34

$30

$24

as % of loans

7.41%

5.96%

7.02%

6.45%

5.29%

Home equity - brokered

($ in millions)

2Q09

3Q09

4Q09

1Q10

2Q10

Balance

$10,386

$10,349

$10,226

$10,280

$10,149

90+ days delinquent

$63

$66

$65

$60

$61

as % of loans

0.61%

0.64%

0.58%

0.60%

Net charge-offs

$49

$48

$43

$37

as % of loans

1.91%

1.89%

1.85%

1.68%

1.45%

Home equity - direct

Florida market*

Deterioration in real estate values having effect on credit trends as evidenced by increasing NPA/NCOs in real estate related products

Homebuilders, developers tied to

weakening real estate market

Losses due to significant declines in

valuations

Valuations; relatively small home

equity portfolio

COML

MORTGAGE

C&I

RESI

MORTGAGE

OTHER

CONS

COML

CONST

COML

LEASE

HOME

EQUITY

AUTO

CREDIT

CARD

Total Loans

NPAs

NCOs

* NPAs

exclude loans held-for-sale.

Loans ($B)

% of

FITB

NPAs ($M)

% of

FITB

NCOs

($M)

% of

FITB

Commercial loans

1.6

132

17%

14%

Commercial mortgage

1.5

13%

290

30%

16%

Commercial construction

0.5

17%

131

27%

29%

Commercial lease

0.0

Commercial

3.7

556

24%

18%

Mortgage

2.1

27%

291

53%

61%

Home equity

0.9

13%

Auto

0.5

10%

Credit card

0.1

11%

Other consumer

0.0

Consumer

3.7

11%

304

44%

32%

Total

7.3

10%

860

29%

106

24%

Florida

Michigan market*

Deterioration in home price values coupled with weak economy impacting credit trends due to frequency of defaults and severity

Homebuilders, developers tied to

weak real estate market

Negative impact from housing

valuations, economy,

unemployment

Economic weakness impacts

commercial real estate market

COML

MORTGAGE

C&I

RESI

MORTGAGE

OTHER

CONS

COML

CONST

COML

LEASE

HOME

EQUITY

AUTO

CREDIT

CARD

Total Loans

NPAs

NCOs

* NPAs

exclude loans held-for-sale.

Loans ($B)

% of

FITB

NPAs ($M)

% of

FITB

NCOs

($M)

% of

FITB

Commercial loans

3.9

15%

155

20%

35%

Commercial mortgage

3.0

26%

200

21%

46%

Commercial construction

0.3

11%

10%

Commercial lease

0.2

16%

Commercial

7.4

17%

412

18%

33%

Mortgage

1.1

14%

11%

Home equity

2.5

21%

26%

27%

Auto

1.0

16%

11%

Credit card

0.3

15%

20%

19%

Other consumer

0.1

10%

13%

33%

Consumer

4.9

15%

12%

17%

Total

12.3

16%

494

��

17%

111

26%

Michigan

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