![]() © Fifth Third Bank | All Rights Reserved Exhibit 99.1 UBS Global Financial Services Conference Kevin T. Kabat President & Chief Executive Officer May 8, 2012 Please refer to earnings release dated April 19, 2012 for further information. |
![]() 2 © Fifth Third Bank | All Rights Reserved Well-positioned for success and leadership in new banking landscape Key themes |
![]() 3 © Fifth Third Bank | All Rights Reserved Environment characterized by low growth expectations and low interest rates • Prolonged low-rate environment, coupled with modest economic growth • Lower securities reinvestment yields on portfolio cash flows • Strong deposit flows • Competitive dynamics • Elevated mortgage refinance activity • Firms facing significant litigation related to: – Mortgage securitizations – GSE repurchases – Private label mortgage repurchases • Concerns about European banks and sovereign debt • Higher capital standards; limitations on dividend payout ratios; capital building beyond targeted / required levels • Continued strong loan production – Rates on loan originations relatively stable • Careful management of liability costs – Disciplined pricing on deposits – Continued evaluation of term liabilities including TruPS • Strong mortgage banking results • Mortgage risks manageable – Quarterly mortgage repurchase costs ~$20mm; claims inventory has declined – Total mortgage securitizations outstanding $19mm (2003 HELOC and performing well) • No direct European sovereign exposure – Total exposure to European peripheral borrowers <$0.2bn* – Total exposure to European banks <$0.1bn • Strong profitability and capital in excess of fully phased-in Basel III standards today – 2012 CCAR** plan to increase distributions Fifth Third is well-positioned to deal with current environmental challenges Characteristics of current environment Fifth Third’s response / position * Greece, Ireland, Italy, Portugal, Spain ** Comprehensive Capital Analysis & Review by Federal Reserve; subject to Board of Directors and regulatory approval. |
![]() 4 © Fifth Third Bank | All Rights Reserved Balance sheet growth mitigates rate environment Commercial Loan Growth^ ($bn) Consumer Loan Growth^ ($bn) • Sustained growth in commercial loans driven by C&I – Growth is geographically diverse and across number of industry segments, particularly manufacturing • Commercial line utilization stable at 32%; potential source of future growth • CRE portfolio run-off at slowing rate, with modest selective current origination volume • Consumer loan growth driven by auto and in-branch mortgage originations – Managing auto volumes to ensure appropriate returns; spread pressure due to competition – Branch mortgage refi product has FICO over 780, LTV ~60% and avg. term ~17 years while yielding above market rates due to process convenience ^ Excluding loans held-for-sale * Excludes CMA and PNC due to large acquisitions Peer Banks include BBT, CMA, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC, ZION. Source: SNL Financial and Company Reports. EOP quarterly C&I loan growth^ • C&I loans as a percent of total commercial loans was 68% at 1Q12 versus peer average of 61% • Year-over-year C&I growth 18% versus peer median of 12%* |
![]() 5 © Fifth Third Bank | All Rights Reserved Rate of NIM pressure declining * Represents purchase accounting adjustments included in net interest income. ^ Estimate; funding (DDAs + interest-bearing liabilities); liabilities attributed to fixed or floating using terms and expected beta Fixed / Floating Portfolio • Modest natural asset sensitivity creates near- term NIM pressure but we expect it to be manageable ~50% of assets, ~40-45% of funding variable in nature • Coupons on new originations of variable rate assets consistent with portfolio weighted average coupons Emphasis on variable rate C&I lending • Coupons on new fixed rate originations converging with portfolio average coupons Fixed rate securities only 15% earning assets Interest-Earning Assets Funding^ NII and NIM (FTE) Trend: fixed rate origination coupons relative to fixed portfolio weighted avg |
![]() 6 © Fifth Third Bank | All Rights Reserved Strong revenue and profit generation Source: SNL Financial and Company Reports. * Non-GAAP measure. See Reg. G reconciliation in the Appendix to the presentation. ^ ~50 bps of Vantiv items in noninterest income include $115mm gains from Vantiv’s IPO, ~$36mm charge related to Vantiv's debt refinancing, and $46mm positive valuation adjustment on the Vantiv warrant and put option. Revenue / Avg. Int. Earning Assets PPNR* / Avg. Int. Earning Assets Deposit fees Corporate banking Investment advisors Other Mortgage Card & Processing Fee Income Distribution Vantiv^ • Business mix provides higher than average diversity among spread and fee revenues (40+% of revenue) • Relatively strong margin and relatively high fee income contribution drives strong revenue and PPNR generation profitability • Profitability remains strong despite sluggish economy |
![]() 7 © Fifth Third Bank | All Rights Reserved Customer oriented solutions • Broad suite of product offerings with distinct value propositions appealing to various customer segments • Implementation of new products, like DUO Card, Real Life Rewards, Relationship Savings • Letting customers choose how to pay for products and services they use • More straightforward, simpler suite of consumer deposit products Providing customers with products and services they find valuable • Negative impact from debit interchange legislation and Reg E in run-rates • Initial impact of debit interchange legislation (~$30mm per quarter) expected to be mitigated over time; implementing carefully and deliberately through various actions, including: – Reduced costs associated with debit card offerings; changes and eliminations of reward programs – Incorporation of debit usage into bundled deposit product offerings – Adjustment of product and fee structures relative to services provided – Charge card alternatives – Implementation of new products Deliberate and multi-pronged approach to mitigation of regulatory / legislative impacts • In-depth discussions with customers to determine what matters most to them • Actively seeking input and feedback from customer base and prospective customers • Working carefully to ensure we align value to the customer with value to us Listening to the voice of our customers |
![]() 8 © Fifth Third Bank | All Rights Reserved Momentum building in corporate banking Corporate banking revenue ($mm) • Syndication fee revenue up 150% from 1Q11; fees from lead transactions up 260% from 1Q11 largely due to 11 lead syndications transactions closed during 1Q12 • Average fees on lead transactions of ~$1mm in 1Q12 vs <$500k in 2011 Mid-corporate opportunity • Target clients: businesses that generate $200mm to $2B in revenue • Hired 20+ bankers in the past 6 months – Have generated $1.2B in committed credit and more than $400mm in funded loans • Cash-centric retail locations such as quick service restaurants, convenience stores, and specialty stores • Simplifies cash handling; improves cash flow • Automates and streamlines account reconciliation • Decreases employee theft (risk management) • RCM locations have doubled since 2009, with more than 6,400 locations as of 3/31/12 Syndications Remote Currency Manager |
![]() 9 © Fifth Third Bank | All Rights Reserved Strong mortgage banking results • Record origination fees and gain on loan sales in 1Q12 Looking forward: • Continued strong originations / deliveries in 2Q12 – Continuing while rates remain low • Gain on sale margins benefitting from: – Strong demand – Industry capacity constraints – Low prepayment expectations (particularly on HARP 2.0 originations) • HARP 2.0 originations expected to increase as percentage of total originations Mortgage originations and gain-on-sale margins Mortgage Banking Revenue ($mm) |
![]() 10 © Fifth Third Bank | All Rights Reserved Disciplined expense management • Expenses trending downward: 1Q12 expenses down 2% from 4Q11 • 2Q12 expenses expected to decline ~2% despite temporary increase in marketing costs • Expect further overall reduction in expenses in 2H12 • Managing expenses carefully in response to revenue environment; continuous process of expense evaluation • Expect efficiency ratio to move closer to 60% by year-end and target mid-50% in normalized environment (with higher interest rate environment) – Current impact of credit costs on revenue and expenses; initial impact of regulatory reforms (e.g., debit interchange) – Reflects below-capacity balance sheet and lower revenue than we expect and can support longer term Managing expenses for current revenue environment and long-term franchise value 2012 expense trends ($mm) * Significant items include $23mm benefit from agreements reached on certain non-income tax related assessments, $13mm in additions to litigation reserves, $9mm in debt extinguishment charges, and $6mm in severance expense incurred in 1Q12 |
![]() 11 © Fifth Third Bank | All Rights Reserved Credit trends continue to improve with strong reserve coverage levels Source: SNL Financial and Company Reports. Data as of 1Q12. HFI NPAs and NPLs exclude loans held-for-sale and also exclude covered assets for BBT, USB, and ZION * Non-GAAP measure. See Reg. G reconciliation in the Appendix to the presentation. Reserves, pre-provision profits and capital levels significant in relation to problem assets Reserves / NPLs “Texas Ratio” (HFI NPAs + Over 90s) / (Reserves + TCE*) HFI NPA Ratio • Problem asset levels continue to decline • Reserves remain significantly higher than pre-crisis levels and peers, with strong coverage of problem assets and net charge-offs • PPNR levels and profitability provides Fifth Third with strong ongoing loss absorption capacity |
![]() 12 © Fifth Third Bank | All Rights Reserved Exceed fully phased-in Basel III capital standards today Source: SNL Financial, Company Reports, and third-party estimates. Data as of 1Q12. Risk-weighted assets for MTB, PNC, ZION as of 4Q11. * Peers include BAC, BBT, C, CMA, COF, HBAN, JPM, KEY, MTB, PNC, RF, STI, USB, WFC, ZION ** Non-GAAP measure. See Reg. G reconciliation in the Appendix to the presentation. Fifth Third’s capital position already well in excess of established standards, likely standards, and most peers Tier 1 common (peers) Tier 1 common (FITB) Reserves (Tier 1 common + reserves) / RWA** (not adjusted for Basel III) Peers* not in order of graph at left; estimated (Tier 1 common + reserves) / RWA** (adjusted for Basel III) Note: Estimates based on current Basel III rules released by the Basel Committee; actual rules subject to U.S. banking regulation. Assumes unrealized securities gains included in Tier 1 common. Not adjusted for potential mitigation efforts. Four large peers include estimated Basel 2 / 2.5 / 3 RWA impact based on BIS proposals. Reserves Tier 1 common (peers) Tier 1 common (FITB) Reserves (FITB) Reserves (FITB) |
![]() 13 © Fifth Third Bank | All Rights Reserved Capital management philosophy * Subject to Board of Directors and regulatory approval ** Subject to Federal Reserve non-objection to Comprehensive Capital Analysis & Review capital plan Organic growth opportunities • Support growth of core banking franchise • Continued loan growth despite sluggish economy Strategic opportunities * • Prudently expand franchise or increase density in core markets via disciplined acquisitions or selective de novos • Expect future acquisition activity although less likely in near-term • Attain top 3 market position in 65% of markets or more longer term Return to more normal dividend policy *^ • Strong levels of profitability would support higher dividend than current level • Move towards levels more consistent with Fed’s near-term payout ratio guidance of 30% Repurchases / Redemptions * • Initiate common share repurchases to limit and manage growth in excess capital levels^ – Manage common equity in light of regulatory environment, other alternatives, maintenance of desired / required buffers, and stock price • Potential redemption of $1.4bn in TruPS – Evaluated in context of desired capital structure and regulatory developments Intend to increase shareholder distributions with Federal Reserve approval of capital plan** Capital Deployment Capital Return |
![]() 14 © Fifth Third Bank | All Rights Reserved Strong returns drive capital generation Source: SNL Financial and Company Reports. Price as of 5/1/12 *1Q12 annualized. **FY2012 consensus estimate. Source: Thomson One ^Non-GAAP measure. See Reg. G reconciliation in the Appendix to the presentation. Note: FITB light green shading represents1Q12 impact of Vantiv. Well above average profitability and capital generation, well below average valuation Price / Tangible Book Value^ Price / FY12 Earnings** Return on Average Tangible Common Equity *^ Return on Average Assets * |
![]() 15 © Fifth Third Bank | All Rights Reserved Well-positioned for the future • Holding company cash currently sufficient for more than 3 years of obligations; no holding company and minimal Bank unsecured debt maturities until 2013 • Fifth Third has completely exited all crisis-era government support programs – Fifth Third is one of the few large banks that have no TLGP-guaranteed debt to refinance in 2012 Superior capital and liquidity position • NCOs of 1.1%; 2.4x reserves / annualized NCOs • Substantial reduction in exposure to CRE since 1Q09; relatively low CRE exposure versus peers • Very low relative exposure to areas of concern, e.g. European financials, mortgage repurchase risk Proactive approach to risk management • Traditional commercial banking franchise built on customer-oriented localized operating model • Strong market share in key markets with focus on further improving density • Fee income ~46% of total revenues Diversified traditional banking platform • PPNR has remained strong throughout the credit cycle • PPNR substantially exceeds annual net charge-offs (315% PPNR / NCOs^ in 1Q12) • 1.5% ROAA; 16% return on average tangible common equity^ Industry leader in earnings power ^ Non-GAAP measure. See Reg. G reconciliation in the appendix to the presentation. |
![]() 16 © Fifth Third Bank | All Rights Reserved Cautionary statement This report 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, including the Dodd-Frank Wall Street Reform and Consumer Protection Act; (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 from the separation of Vantiv, LLC, formerly 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. |
![]() 17 © Fifth Third Bank | All Rights Reserved Appendix |
![]() 18 © Fifth Third Bank | All Rights Reserved A foundation of continued robust results Capital – exceeds required and targeted levels — Tier 1 common* capital up ~530bps or $5.2bn from 4Q08 — Capital base transformed through series of capital actions – ~10.0% pro forma 1 Tier 1 common ratio* on a fully-phased in Basel III-adjusted basis — Capital levels supplemented by strong reserve levels – Loan loss reserves 2.59% of loans and 157% of NPLs Credit – ongoing steady improvement — Broad-based improvements in problem loans – ~80% reduction in 90+ day delinquent loans since 3Q09 – NCO ratio of 1.08%, lowest NCO level since 4Q07 – 315% PPNR / NCOs*; 258% excluding 1Q12 Vantiv — Balance sheet risk lowered through asset sales, resolutions – $1.6bn (54%) decline in NPLs since 4Q09 Profitability – strong relative and absolute results — PPNR* remained stable throughout cycle — 8 consecutive profitable quarters — Return on assets 1.49%; 1.20% excluding 1Q12 Vantiv — Return on average tangible common equity * 16% * Non-GAAP measure; see Reg. G reconciliation on pages 28-29. 1 Current estimate (non-GAAP), subject to final rule-making and clarification by U.S. banking regulators; currently assumes unrealized securities gains are included in common equity for purposes of this calculation 2 Nonperforming loans and leases as a percent of portfolio loans, leases and other assets, including other real estate owned (does not include nonaccrual loans held-for-sale) 3 3Q10 excludes $510mm net charge-offs attributable to credit actions Tier 1 common ratio (%)* NPL / Loans² (%) PPNR / Net charge-offs (%)³* Return on assets (%) 57 |
![]() 19 © Fifth Third Bank | All Rights Reserved Diverse business mix Branch Banking Consumer Lending Commercial Banking Investment Advisors • Professionals committed to understanding customers’ unique needs, providing options and identifying the right solution • Top 5 market share within the non-captive prime auto lending space • Top 13 mortgage origination share • $1.0bn total FY11 revenue • Holistic approach to branch banking combined with mobile convenience to improve the banking experience and be the trusted financial partner for our customers • 1,315 full-service banking centers • 2,404 full-service ATMs • $2.3bn total FY11 revenue • Comprehensive product and service offering including commercial lending, treasury management, and capital markets • Innovative products, advancements in technology, and exceptional customer service • $2.0bn total FY11 revenue • Provide financial insight, a wide array of leading-edge products and services, and a professional team to help develop a strategy for clients’ financial success • $486mm total FY11 revenue • $26bn assets under management • $296bn assets under care • 39% interest in Vantiv, LLC, formerly Fifth Third Processing Solutions, LLC |
![]() 20 © Fifth Third Bank | All Rights Reserved Available and contingent borrowing capacity (1Q12): – FHLB ~$11B – Federal Reserve ~$24B Holding Company cash at 3/31/12: $3.2B Cash currently sufficient to satisfy all fixed obligations in a stressed environment for more than 3 years (debt maturities, common and preferred dividends, interest and other expenses) without accessing capital markets; relying on dividends from subsidiaries; proceeds from asset sales Expected cash obligations over the next 24 months — ~$591mm common dividends — ~$70mm Series G preferred dividends — ~$889mm interest and other expenses Holding company unsecured debt maturities ($mm) Bank unsecured debt maturities ($mm – excl. Brokered CDs) Heavily core funded Strong liquidity profile |
![]() 21 © Fifth Third Bank | All Rights Reserved C&I/Total Loans*^ NIM • NIM supported by balance sheet and business mix – Heavy emphasis on traditional C&I lending, much of which is variable • Pricing discipline on commercial loans – Spreads have narrowed from post-crisis levels but remain attractive – Loan origination rates have stabilized the past several months Relatively strong NIM results due to balance sheet and business mix Source: SNL Financial and Company Reports. Data as of 1Q12. *ZION & BBT exclude government guaranteed loans; ZION presented as end of period data. ^Presented on an average basis; Excluding held-for-sale loans. C&I Spread to 1-month LIBOR |
![]() 22 © Fifth Third Bank | All Rights Reserved Core funded balance sheet and pricing discipline • Strong, deposit-rich core funding mix supports relatively low cost of funds – High percentage of funding base in low cost transaction deposits and noninterest- bearing DDA accounts – Low reliance on wholesale funding SOURCE: SNL Financial and Company Reports. Data as of 1Q12 Transaction deposits defined as DDA, NOW and Savings/MMDA accounts; Cost of Funds defined as interest incurred on interest-bearing liabilities as a percentage of average noninterest-bearing deposits and interest- bearing liabilities; Transaction deposits/Total deposits presented on an average basis; DDA/Total deposits presented on end-of-period basis. Transaction Deposits / Total Deposits Cost of Funds DDA/Total Deposits |
![]() 23 © Fifth Third Bank | All Rights Reserved Continued improvement in credit trends Peer average includes: BBT, CMA, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC, and ZION Source: SNL Financial and company filings. All ratios exclude loans held-for-sale and covered assets for peers where appropriate. * 4Q08 NCOs included $800mm in NCOs related to commercial loans moved to held-for-sale; 3Q10 NCOs included $510mm in NCOs related to loans sold or moved to held-for-sale FITB credit metrics are in line with or 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 |
![]() 24 © Fifth Third Bank | All Rights Reserved NPL HFI Rollforward Commercial 1Q11 2Q11 3Q11 4Q11 1Q12 Beginning NPL Amount 1,214 1,211 1,253 1,155 1,058 Transfers to nonperforming 329 340 217 189 168 Transfers to performing (2) (10) (11) - (1) Transfers to performing (restructured) - - (1) - (2) Transfers from held for sale - - - 4 - Transfers to held for sale (16) (15) (58) (3) (3) Loans sold from portfolio (12) (7) (17) (21) (8) Loan paydowns/payoffs (108) (91) (77) (149) (94) Transfer to other real estate owned (37) (39) (20) (14) (36) Charge-offs (164) (141) (136) (113) (101) Draws/other extensions of credit 7 5 5 10 7 Ending Commercial NPL 1,211 1,253 1,155 1,058 988 Consumer 1Q11 2Q11 3Q11 4Q11 1Q12 Beginning NPL Amount 466 434 386 383 380 Transfers to nonperforming 232 214 201 205 184 Transfers to performing (35) (34) (33) (28) (36) Transfers to performing (restructured) (50) (41) (39) (39) (36) Transfers to held for sale - - - - - Loans sold from portfolio (1) (21) - - (4) Loan paydowns/payoffs (18) (27) (27) (26) (28) Transfer to other real estate owned (18) (15) (16) (30) (18) Charge-offs (144) (126) (91) (87) (80) Draws/other extensions of credit 2 2 2 2 2 Ending Consumer NPL 434 386 383 380 364 Total NPL 1,645 1,639 1,538 1,438 1,352 Total new nonaccrual loans - HFI 561 554 418 394 352 NPL rollforward Significant improvement in NPL inflows over past year Note: Numbers may not sum due to rounding |
![]() 25 © Fifth Third Bank | All Rights Reserved Mortgage repurchase overview 18% rise in 1Q12 outstanding claims balance from prior quarter — Within recent norms of quarterly increases and decreases Virtually all sold loans and the majority of new claims relate to agencies — 98% of outstanding balance of loans sold — 77% of current quarter outstanding claims Majority of outstanding balances of the serviced for others portfolio relates to origination activity in 2009 and later Private claims and exposure relate to whole loan sales (no outstanding first mortgage securitizations) — Preponderance of private sales prior to 2006 Repurchase Reserves* ($ in millions) Outstanding Counterparty Claims ($ in millions) Outstanding Balance of Sold Loans ($ in millions) 1Q11 2Q11 3Q11 4Q11 1Q12 Beginning balance 101 87 80 69 72 Net reserve additions 10 15 20 20 17 Repurchase losses (23) (23) (31) (17) (17) Ending balance 87 80 69 72 71 2005 and prior GSE GNMA Private Total $6,680 $273 $492 $7,445 2006 1,550 55 250 1,855 2007 2,509 80 215 2,804 2008 2,406 633 0.3 3,039 2009 9,462 3,563 0.7 13,026 2010 and later 26,338 5,884 0.3 32,222 Total $48,945 $10,488 $958 $60,391 * Includes reps and warranty reserve ($55mm) and reserve for loans sold with recourse ($17mm) Note: Numbers may not sum due to rounding |
![]() 26 © Fifth Third Bank | All Rights Reserved Troubled debt restructurings overview Successive improvement in vintage performance during 2008 and 2009 as volume of modification increased Fifth Third’s mortgage portfolio TDRs have redefaulted at a lower rate than GSE composites Of $1.8B in consumer TDRs, $1.6B were on accrual status and $201mm were nonaccruals — $1.2B of TDRs are current and have been on the books 6 or more months; within that, ~$1B 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 see much lower defaults on current loans after a vintage approaches 12 months since modification TDR performance has improved in newer vintages Redefault benchmarks Source: Fifth Third and OCC/OTS data through 3Q11 Mortgage TDR 60+ redefault trend by vintage* Mortgage TDR 60+ redefault rate: Fifth Third comparison (January 1, 2008 through December 2011)* $1.3B current consumer TDRs (%) * Fifth Third data includes changes made to align with OCC/OTS methodology (i.e. excludes government loans, closed loans and OREO from calculations) |
![]() 27 © Fifth Third Bank | All Rights Reserved Total Exposure Funded Exposure Total Exposure Funded Exposure Total Exposure Funded Exposure Total Exposure Funded Exposure (amounts in $mm) Peripheral Europe - - 11 - 168 124 179 124 Other Eurozone - - 44 34 1,275 742 1,319 776 Total Eurozone - - 55 34 1,443 866 1,498 900 Other Europe - - 23 18 820 496 843 514 Total Europe - - 77 52 2,263 1,362 2,340 1,414 Sovereigns Financial Institutions Non-Financial Entities Total European exposure Total exposure includes funded and unfunded commitments, net of collateral; funded exposure excludes unfunded exposure Peripheral Europe includes Greece, Ireland, Italy, Portugal and Spain Eurozone includes countries participating in the European common currency (Euro) Other Europe includes European countries not part of the Euro (primarily the United Kingdom and Switzerland) Data above includes exposure to U.S. subsidiaries of Europe-domiciled companies Note: Numbers may not sum due to rounding • International exposure primarily related to trade finance and financing activities of U.S. companies with foreign parent or overseas activities of U.S. customers • No European sovereign exposure (total international sovereign exposure $3mm) • Total exposure to European financial institutions <$80mm • Total exposure to five peripheral Europe countries <$200mm • $900mm in funded exposure to Eurozone-related companies (~1% of total loan portfolio) |
![]() 28 © Fifth Third Bank | All Rights Reserved Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) March December September June March December September June March December 2012 2011 2011 2011 2011 2010 2010 2010 2010 2009 Income before income taxes (U.S. GAAP) $603 $418 $530 $506 $377 417 $ 303 $ 242 $ (22) $ (214) $ Add: Provision expense (U.S. GAAP) 91 55 87 113 168 166 457 325 590 776 Pre-provision net revenue (a) 694 473 617 619 545 583 760 567 568 562 Annualized PPNR (c) 2,791 1,877 2,448 2,483 2,210 2,313 3,015 2,274 2,304 2,230 Net income available to common shareholders (U.S. GAAP) 421 Add: Intangible amortization, net of tax 3 Tangible net income available to common shareholders 424 Tangible net income available to common shareholders (annualized) (b) 1,705 Average Bancorp shareholders' equity (U.S. GAAP) 13,366 Less: Average preferred stock 398 Average goodwill 2,417 Average intangible assets 38 Average tangible common equity (c) 10,513 Total Bancorp shareholders' equity (U.S. GAAP) 13,560 Less: Preferred stock (398) Goodwill (2,417) Intangible assets (36) Tangible common equity, including unrealized gains / losses (d) 10,709 Less: Accumulated other comprehensive income / loss (468) Tangible common equity, excluding unrealized gains / losses (e) 10,241 Total assets (U.S. GAAP) 116,747 Less: Goodwill (2,417) Intangible assets (36) Tangible assets, including unrealized gains / losses (f) 114,294 Less: Accumulated other comprehensive income / loss, before tax (720) Tangible assets, excluding unrealized gains / losses (g) 113,574 Common shares outstanding (h) 920 Net charge-offs 220 239 262 304 367 356 446 434 582 708 Annualized net charge-offs (i) 885 948 1,039 1,219 1,488 1,412 1,769 1,741 2,360 2,809 Average interest earning assets (j) 100,492 Ratios: Return on average tangible common equity (b) / (c) 16.2% Tangible common equity (excluding unrealized gains/losses) (e) / (g) 9.02% Tangible common equity (including unrealized gains/losses) (d) / (f) 9.37% Tangible book value per share (d) / (h) 11.64 Pre-provision net revenue / net charge-offs (a) / (i) 315% 198% 235% 204% 149% 164% 170% 131% 98% 79% Pre-provision net revenue / avg. int. earning assets (a) / (j) 2.8% For the Three Months Ended |
![]() 29 © Fifth Third Bank | All Rights Reserved Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) March December September June March December September June March December 2012 2011 2011 2011 2011 2010 2010 2010 2010 2009 Total Bancorp shareholders' equity (U.S. GAAP) $13,560 $13,201 $13,029 $12,572 $12,163 $14,051 $13,884 $13,701 $13,408 $13,497 Goodwill and certain other intangibles (2,518) (2,514) (2,514) (2,536) (2,546) (2,546) (2,525) (2,537) (2,556) (2,565) Unrealized gains (468) (470) (542) (396) (263) (314) (432) (440) (288) (240) Qualifying trust preferred securities 2,248 2,248 2,273 2,312 2,763 2,763 2,763 2,763 2,763 2,763 Other 38 38 20 20 12 11 8 (25) (30) (27) Tier I capital 12,860 12,503 12,266 11,972 12,129 13,965 13,698 13,462 13,297 13,428 Less: Preferred stock (398) (398) (398) (398) (398) (3,654) (3,642) (3,631) (3,620) (3,609) Qualifying trust preferred securities (2,248) (2,248) (2,273) (2,312) (2,763) (2,763) (2,763) (2,763) (2,763) (2,763) Qualifying noncontrolling interest in consolidated subsidiaries (50) (50) (30) (30) (30) (30) (30) - - - Tier I common equity (a) 10,164 9,807 9,565 9,232 8,938 7,518 7,263 7,068 6,914 7,056 Unrealized gains 468 Disallowed deferred tax assets - Disallowed MSRs 78 Other 11 Less: 10% of individual deferred tax assets, MSRs, investment in financial entitie - 15% of aggregate deferred tax assets, MSRs, investment in financial entiti - Tier 1 common equity, Basel III proforma (b) 10,721 Risk-weighted assets, determined in accordance with prescribed regulatory requirements (c) 105,412 104,945 102,562 100,320 99,392 100,561 98,904 98,604 99,281 100,933 Regulatory deductions not deducted from Tier 1 common equity, risk-weighted at 250% 1,582 Risk-weighted assets, Basel III proforma (d) 106,994 Ratios: Tier I common equity (a) / (c) 9.64% 9.35% 9.33% 9.20% 8.99% 7.48% 7.34% 7.17% 6.96% 6.99% Tier I common equity, Basel III proforma (b) / (d) 10.02% For the Three Months Ended Add: |