© Fifth Third Bank | All Rights Reserved Exhibit 99.1 Barclays Global Financial Services Conference Kevin T. Kabat President & Chief Executive Officer September 11, 2012 Refer to earnings release dated July 19, 2012 and 10-Q dated August 8, 2012 for further information |
2 © Fifth Third Bank | All Rights Reserved Well-positioned for success and leadership in new banking landscape Key themes Traditional banking focus consistent with direction of financial reform Strong levels of profitability Broad-based credit improvements Exceed fully phased-in Basel III capital standards today Well-established franchise in key markets Commitment to our customers and our communities Continued investments to maintain and enhance revenue- generation Disciplined expense control |
3 © Fifth Third Bank | All Rights Reserved Continued momentum Strong first half 2012 results underscored by continued loan growth, solid fee income, expense control, and ongoing improvement in credit metrics Traditional banking model and moderate risk profile contribute to above average returns New product offerings consistent with our mission, our customer value proposition, and regulatory reform Return capital from robust internal capital generation through appropriate dividend payout and share repurchase plans We believe current and forecasted fully phased-in pro-forma capital ratios would substantially exceed new fully phased-in well-capitalized minimums 1 2 3 4 5 $130 $175 $270 $88 $328 $373 $305 $421 $376 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Earnings Growth Net income available to common shareholders ($mm) |
4 © Fifth Third Bank | All Rights Reserved Balance sheet growth mitigates rate environment • Core deposit to loan ratio of 99% consistent with 2Q11 – DDAs up 19% year-over-year – Consumer average transaction deposits up 6% year-over-year – Commercial average transaction deposits up 12% year-over-year Average loan growth ($B)^ Average core deposit growth ($B) 83 78 82 78 ^ Excludes loans held-for-sale Note: Numbers may not sum due to rounding 79 78 81 82 • Sustained growth driven by C&I and residential mortgage loans; portfolios in run-off mode of moderate size – Commercial line utilization stable at 32%; potential source of future growth • CRE portfolio run-off at slowing rate, with modest selective current origination volume • 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 80 Demand IBT/Savings/MMDA Consumer CD/Core foreign 22 24 26 26 26 46 45 46 49 50 11 9 8 7 6 2Q11 3Q11 4Q11 1Q12 2Q12 44 44 45 46 47 34 35 35 36 36 2Q11 3Q11 4Q11 1Q12 2Q12 Commercial Loans Consumer Loans 82 • Short-term wholesale borrowings represent only 7% of total funding |
5 © Fifth Third Bank | All Rights Reserved Strength in loan growth Completed geographic expansion initiatives – Now in 44 states representing majority of US auto sales Increased competition for high quality prime auto assets Careful margin management to optimize volume/return levels Continued strong credit performance – Net charge-offs of 0.21% in 2Q12 – High quality origination profile with ~770 YTD average FICO Continued solid demand in large corporate and mid-corporate space Mix shift toward higher-quality loans and portfolio effects of repricing have resulted in reduction in portfolio yields C&I loans as a percent of total commercial loans was 70% at 2Q12 versus peer average of 62% C&I production continues to be broad based across industries and sectors Source: SNL Financial and Company Reports. Peer average includes: BBT, CMA, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC, and ZION *ZION & BBT exclude government guaranteed loans; ZION presented as end of period data. ^Presented on an average basis; Excluding held-for-sale loans. 26.3 26.3 27.3 27.9 28.8 29.9 31.4 32.7 $20.0 $22.0 $24.0 $26.0 $28.0 $30.0 $32.0 $34.0 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 C&I Portfolio*^ ($B) 10.5 10.8 11.1 11.2 11.4 11.7 11.9 11.8 $9.5 $10.0 $10.5 $11.0 $11.5 $12.0 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Auto Portfolio^ ($B) |
6 © Fifth Third Bank | All Rights Reserved NII results reflect continued moderate NIM pressure offset by balance sheet growth * ^ Estimate; funding (DDAs + Fixed / Floating Portfolio • Near-term NIM pressure created by low rate environment and modest natural asset sensitivity, but is expected to be manageable • $1.4bn TruPS redemptions in August will benefit 3Q12 NII ~$4MM and benefit NIM ~2 bps vs. 2Q12 • 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 • Current trends provide for stable near-term net interest income levels Funding^ NII and NIM (FTE) Trend: fixed rate loan origination coupons relative to fixed portfolio weighted avg Larger portfolio repricing effects 0.00 0.50 1.00 1.50 2.00 3.62% 3.65% 3.67% 3.61% 3.56% $450 $550 $650 $750 $850 $950 2.0% 2.5% 3.0% 3.5% 4.0% 2Q11 3Q11 4Q11 1Q12 2Q12 Net Interest Income (right axis) PAA* NIM $869 $902 $920 $903 $899 ($mm) Loans 51% Investment Portfolio 14% Fixed 46% Floating 54% Investment Portfolio 3% Interest-Earning Assets Fixed Floating Floating ~40-45% Loans 32% Fixed 55-60% Represents purchase accounting adjustments included in net interest income. interest-bearing liabilities); liabilities attributed to fixed or floating using terms and expected beta |
7 © Fifth Third Bank | All Rights Reserved Strong revenue and profit generation Source: SNL Financial and Company Reports. Peer median includes: BBT, CMA, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC, and ZION * Excludes $29MM, $3MM, $10MM, $46MM, and $56MM positive valuation adjustment on the Vantiv warrant and put option in 2Q11, 3Q11, 4Q11, 1Q12, and 2Q12, respectively, as well as $115MM in gains from Vantiv's IPO and $34MM charge related to Vantiv's debt refinancing in 1Q12. ** Non-GAAP measure. See Reg. G reconciliation in the Appendix to the presentation. Revenue / Avg. Int. Earning Assets* PPNR** / Avg. Int. Earning Assets* Returns strong relative to peers • 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 despite sluggish economy • Income from ownership in Vantiv $26mm in 2Q12 (full year 2011 quarterly avg ~$14mm), despite selling ~10% in 1Q12 |
8 © Fifth Third Bank | All Rights Reserved Strong mortgage banking results • Record origination fees and gain on loan sales in 2Q12 • Highest ranking among all servicers and peer groups in Fannie Mae’s 2011 STAR TM Program for servicing performance Looking forward: • Continued strong originations / deliveries in 3Q12 – Results should remain robust while rates remain low • Gain on sale margins benefitting from: – Strong demand – Industry capacity constraints – Low prepayment expectations (particularly on HARP 2.0 originations) • HARP 2.0 originations expected to remain similar percentage of total originations in 3Q12 vs 2Q12 Mortgage originations and gain-on-sale margins Mortgage Banking Revenue ($MM) |
9 © Fifth Third Bank | All Rights Reserved Momentum building in corporate banking Corporate banking revenue ($mm) • Dedicated national healthcare team also focused in core Midwest & Southeast markets • $2.8B in outstandings; up 40% from June 2011 • Specialized products including RevLink Solutions platform; 30% increase in accounts from a year ago $95 $87 $82 $97 Mid-corporate opportunity • Target clients: businesses that generate $200mm to $2B in revenue • Hired 20+ bankers in the past 9 months – Have generated over $3B in committed credit and more than $1.5B in funded loans • Integrated receivables solutions simplify cash handling and improve cash flow – Remote Currency Manager, our remote cash capture smart safe solution – Electronic Deposit Manager, our remote deposit capture solution • Commercial card solutions streamline processes, reduce costs and maximize convenience Healthcare vertical Innovative solutions $102 31 32 30 29 33 12 9 9 11 14 7 7 6 6 8 28 28 29 31 30 16 11 7 19 17 $0 $20 $40 $60 $80 $100 $120 2Q11 3Q11 4Q11 1Q12 2Q12 Letter of Credit / FX Institutional Sales Interest Rate Derivatives Business Lending Fees Other Corporate Banking |
10 © Fifth Third Bank | All Rights Reserved • View balances, transfer money, pay bills, view alerts, and more • App available on iPhone, Android, and BlackBerry • The only combined credit and a debit card • Convenience, security, and financial flexibility • New sales consistently increasing; ~30% of new consumer card accounts • Pay down mortgage faster, just for doing everyday banking • Credit card earns rewards points and automatically pays down mortgage principal • Pay off mortgage up to a year early • Innovative, end-to-end remote cash management solution • Maximize cash flow while boosting control over cash handling • Nearly 6,400 RCM locations; has doubled since 2009 Mobile Experience Homeowner Plus Value Package DUO Card Remote Currency Manager Providing customers with products and services they find valuable New products developed by listening to the voice of the customer and a deliberate approach to mitigate regulatory and legislative impacts Customer oriented solutions |
11 © Fifth Third Bank | All Rights Reserved Simplifying deposit structure: Aligning value to our customers with value to Fifth Third Value to our customers Value to Fifth Third 1 2 3 1 2 3 Accounts straightforward and easy to use Simplified service charges with elimination of certain fees Greater benefits, including competitive rates and identity theft protection, for total relationship value Simplifies relationship building for our sales force by reducing complexity across checking and savings products Payment and deposit fee results and balances expected to contribute to revenue growth Changes are compatible with Fifth Third’s strategic direction and new regulatory landscape We are committed to providing valuable products and services at a fair price – Broader and deeper banking relationships with Fifth Third earn better rates and lower costs – Elimination of daily overdraft fees on continuing customer overdraft positions – 25 checking products simplified to 5 segment-focused products – 17 savings products simplified to 3 |
12 © 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 2Q12. HFI NPLs exclude loans held-for-sale and also exclude covered assets for BBT, USB, and ZION Continued decline in problem assets and corresponding decline in charge-offs combined with strong reserves on an absolute and relative basis NPLs / Loans Peer average: 1.8% Loan loss reserves / Loans Peer average: 2.1% Net charge-off ratio Peer average: 0.8% Reserves / NPLs Peer average: 129% |
13 © Fifth Third Bank | All Rights Reserved Capital management philosophy * Subject to Board of Directors and regulatory approval Organic growth opportunities • Support growth of core banking franchise • Continued loan growth despite sluggish economy Strategic opportunities * • Prudently evaluate franchise including increasing 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% • Potential increase of quarterly dividend in 3Q12 (to $0.10) not objected by FRB in 2Q12 CCAR; considered by BOD in September Repurchases / Redemptions * • Common share repurchases to limit and manage growth of excess capital levels • Redeemed $1.4bn in TruPS in 3Q12 Ability to increase shareholder distributions with recent Federal Reserve non-objection to capital plan Capital Deployment Capital Return Manage capital in light of regulatory environment, other alternatives, maintenance of desired / required buffers, stock price $600MM of potential repurchases through 1Q13 ($350MM ASR entered into in August) |
14 © Fifth Third Bank | All Rights Reserved Capital position remains strong *The pro forma Tier I common equity ratio is management’s estimate based upon its current interpretation of the three draft Federal Register notices proposing enhancements to regulatory capital requirements published in June 2012. The actual impact to the Bancorp’s Tier I common equity ratio may change significantly due to further clarification of the agencies proposals or revisions to the agencies final rules, which remain subject to public comment. Proposed new U.S. capital standards would have manageable impact, if adopted Primary Basel III Adjustments* Proposed fully phased in buffered minimum of 7.0% Basel III Impacts NPR Capital Impact ~50 bps +/- NPR RWA Impact ~(125 bps) +/- Total Tier 1 Change Tier 1 Common Equity ~(75 bps) +/- 9.77% ~9%* Basel I Pro forma Basel III • 2Q12 Tier 1 common equity ratio of 9.77% under Basel I • Capital impact increase primarily from inclusion of AOCI • RWA increase primarily from 1-4 family senior and junior lien residential mortgages, commitments under one year • Pro forma 2Q12 Tier 1 common equity ratio of ~9%* under Basel III • Does not include the effect of any mitigating actions Fifth Third may take Estimated NPR Impact Current Pro forma Tier 1 Common Equity |
15 © Fifth Third Bank | All Rights Reserved Fifth Third’s balance sheet and business model relatively advantaged under new capital standards Fifth Third’s capital position already well in excess of any established standards, likely standards, and most peers Unofficial CCAR supervisory reference minimum 2Q12 Pro forma Tier 1 common / RWA U.S. proposed Basel III* 2Q12 Tier 1 common / RWA Basel I Source: SNL Financial and company reports (financial data as of 2Q12). * Note: Fifth Third’s pro forma Tier I common equity ratio is management’s estimate based upon its current interpretation of the three draft Federal Register notices proposing enhancements to regulatory capital requirements published in June 2012. The actual impact to the Bancorp’s Tier I common equity ratio may change significantly due to further clarification of the agencies proposals or revisions to the agencies final rules, which remain subject to public comment. Not adjusted for potential mitigation efforts. 2019 Basel III buffered minimum 2019 Basel III minimum Not disclosed |
16 © Fifth Third Bank | All Rights Reserved FITB “Trillionaire” Banks Regional Banks Community Banks Investment Banks Diverse businesses Efficiencies of scale Local market focus Multi-channel delivery Customer-centric model Moderate risk profile Strong profitability and well-capitalized Fifth Third: A differentiated business model Competitively well-positioned in new landscape |
17 © 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. |
18 © Fifth Third Bank | All Rights Reserved Appendix |
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 • 1,322 full-service banking centers • 2,409 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 • $25bn assets under management • $291bn assets under care • 39% indirect interest in Vantiv, LLC, formerly Fifth Third Processing Solutions, LLC |
20 © Fifth Third Bank | All Rights Reserved Deposit simplification: Checking product design and offerings All-new, redesigned Fifth Third accounts Special Access Just the Basics Full Relationship Programs Premium Relationships eAccess Essential Checking Established Checking Enhanced Checking Preferred Checking N/A $11 / month $15 / month $20 / month $25 / month Online access only $1,500 monthly avg balance in checking and savings $5,000 monthly avg balance in checking, savings, and investments $20,000 monthly avg balance in checking, savings, and investments $100,000 monthly avg balance in checking, savings, and investments For those who never write checks and do all their banking online For those who want just the basics For those who keep deposits and loans with Fifth Third For those who want investment services and strategies For those who want comprehensive financial solutions with dedicated, personalized service Monthly service charge Balance requirements to avoid monthly service charges All accounts include: Debit Card Savings Account(s) with monthly service charges waived Internet Banking & Online Bill Payment Mobile Banking & Text Alerts Fifth Third ATM Access Online Statements The information on this slide is for informational purposes only and is not intended to serve as initial product disclosures. Please visit www.53.com/checking for details on the benefits and features of these products including terms and conditions. |
21 © Fifth Third Bank | All Rights Reserved Deposit simplification: Savings product design and offerings Simplified and rewarding Fifth Third accounts Start saving a little at a time Keep your savings separate from everyday spending A bonus when you reach your goal Tiered interest rates Easy access to your money Bonus interest every month when you have checking Our best rates for larger balances Check access – write up to 6 checks per month An even better rate when you have checking Easy ways to earn out of monthly service charge: 1. Have checking account with us 2. $500 average savings account balance 3. Free for kids and Military Banking members The information on this slide is for informational purposes only and is not intended to serve as initial product disclosures. Please visit www.53.com/checking for details on the benefits and features of these products including terms and conditions. Relationship Money Market best rates - $25,000+ Relationship Savings better rates Goal Setter Savings competitive rates |
22 © 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 2Q12. *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 Peer average: 36% Peer average: 3.55% |
23 © 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 2Q12 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 Peer average 83% Cost of Funds Peer average 0.57% DDA/Total Deposits Peer average 32% |
24 © 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. * NPA ratio vs. peers Net charge-off ratio vs. peers Loans 90+ days delinquent % vs. peers Loans 30-89 days delinquent % vs. peers (7.5%)* (HFS transfer) 3.8% before credit actions 5.0%* 2.3% before credit actions FITB credit metrics are in line with or better than peers 4Q08 NCOs included $800mm in NCOs related to commercial loans moved to held-for-sale; 3Q10 NCOs included $510mm in NCOs related to loans sold or moved to held-for-sale |
25 © Fifth Third Bank | All Rights Reserved Mortgage repurchase overview 2Q12 balances of outstanding claims increased 23% from 1Q12 — Within recent norms of quarterly increases and decreases Virtually all sold loans and the majority of new claims relate to agencies — 99% of outstanding balance of loans sold — 82% of current quarter outstanding claims Majority of outstanding balances of the serviced for others portfolio relates to origination activity in 2009 and later Private claims and exposure relate to whole loan sales (no outstanding first mortgage securitizations) Repurchase Reserves* ($ in millions) Outstanding Counterparty Claims ($ in millions) 2Q11 3Q11 4Q11 1Q12 2Q12 Beginning balance $87 $80 $69 $72 $71 Net reserve additions 15 20 20 17 20 Repurchase losses (23) (31) (17) (17) (16) Ending balance $80 $69 $72 $71 $75 * Includes reps and warranty reserve ($57MM )and reserve for loans sold with recourse ($19MM) Note: Numbers may not sum due to rounding % Current 42% 49% 41% 37% 41% Outstanding Balance of Sold Loans ($ in millions) Fannie Freddie GNMA Private Total 2004 and Prior $825 $3,789 $206 $323 $5,143 2005 295 1,263 55 137 1,750 2006 385 1,038 52 234 1,709 14% 2007 606 1,688 75 203 2,572 2008 792 1,370 595 - 2,575 2009 1,506 7,176 3,404 1 12,087 2010 3,257 7,290 2,847 - 13,395 2011 3,962 7,255 2,361 - 13,578 2012 2,734 4,355 1,555 - 8,644 Grand Total $14,361 $35,225 $11,150 $899 $61,635 1.5% 2005-2008 vintages account for ~80% of total life to date losses of $354MM from sold portfolio — Preponderance of private sales prior to 2006 |
26 © 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) June March December September June 2012 2012 2011 2011 2011 Income before income taxes (U.S. GAAP) $565 $603 $418 $530 $506 Add: Provision expense (U.S. GAAP) 71 91 55 87 113 Pre-provision net revenue (a) 636 694 473 617 619 Net income available to common shareholders (U.S. GAAP) 376 421 305 373 328 Add: Intangible amortization, net of tax 2 3 3 3 4 Tangible net income available to common shareholders 378 424 308 376 332 Tangible net income available to common shareholders (annualized) (b) 1,520 1,705 1,222 1,492 1,332 Average Bancorp shareholders' equity (U.S. GAAP) 13,628 13,366 13,147 12,841 12,365 Less: Average preferred stock 398 398 398 398 398 Average goodwill 2,417 2,417 2,417 2,417 2,417 Average intangible assets 34 38 42 47 52 Average tangible common equity (c) 10,779 10,513 10,290 9,979 9,498 Total Bancorp shareholders' equity (U.S. GAAP) 13,773 13,560 13,201 13,029 12,572 Less: Preferred stock (398) (398) (398) (398) (398) Goodwill (2,417) (2,417) (2,417) (2,417) (2,417) Intangible assets (33) (36) (40) (45) (49) Tangible common equity, including unrealized gains / losses (d) 10,925 10,709 10,346 10,169 9,708 Less: Accumulated other comprehensive income / loss (454) (468) (470) (542) (396) Tangible common equity, excluding unrealized gains / losses (e) 10,471 10,241 9,876 9,627 9,312 Total assets (U.S. GAAP) 117,543 116,747 116,967 114,905 110,805 Less: Goodwill (2,417) (2,417) (2,417) (2,417) (2,417) Intangible assets (33) (36) (40) (45) (49) Tangible assets, including unrealized gains / losses (f) 115,093 114,294 114,510 112,443 108,339 Less: Accumulated other comprehensive income / loss, before tax (698) (720) (723) (834) (609) Tangible assets, excluding unrealized gains / losses (g) 114,395 113,574 113,787 111,609 107,730 Common shares outstanding (h) 919 920 920 920 920 Net charge-offs (i) 181 220 239 262 304 Ratios: Return on average tangible common equity (b) / (c) 14.1% 16.2% 11.9% 15.0% 14.0% Tangible common equity (excluding unrealized gains/losses) (e) / (g) 9.15% 9.02% 8.68% 8.63% 8.64% Tangible common equity (including unrealized gains/losses) (d) / (f) 9.49% 9.37% 9.04% 9.04% 8.96% Tangible book value per share (d) / (h) 11.89 11.64 11.25 11.05 10.55 Pre-provision net revenue / net charge-offs (a) / (i) 351% 315% 198% 235% 204% For the Three Months Ended |
27 © 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) June March December September June 2012 2012 2011 2011 2011 Total Bancorp shareholders' equity (U.S. GAAP) $13,773 $13,560 $13,201 $13,029 $12,572 Goodwill and certain other intangibles (2,512) (2,518) (2,514) (2,514) (2,536) Unrealized gains (454) (468) (470) (542) (396) Qualifying trust preferred securities 2,248 2,248 2,248 2,273 2,312 Other 38 38 38 20 20 Tier I capital 13,093 12,860 12,503 12,266 11,972 Less: Preferred stock (398) (398) (398) (398) (398) Qualifying trust preferred securities (2,248) (2,248) (2,248) (2,273) (2,312) Qualifying noncontrolling interest in consolidated subsidiaries (50) (50) (50) (30) (30) Tier I common equity (a) 10,397 10,164 9,807 9,565 9,232 Risk-weighted assets, determined in accordance with prescribed regulatory requirements (b) 106,398 105,412 104,945 102,562 100,320 Ratios: Tier I common equity (a) / (b) 9.77% 9.64% 9.35% 9.33% 9.20% For the Three Months Ended |