![]() © Fifth Third Bank | All Rights Reserved Investor Update Barclays Capital 2014 Americas Select Franchise Conference Tayfun Tuzun Executive Vice President & Chief Financial Officer May 2014 Please refer to earnings release dated April 17, 2014 and 10-Q dated May 8, 2014 for further information Exhibit 99.1 |
![]() 2 © Fifth Third Bank | All Rights Reserved Broad scope of products and services addressing the needs of wide array of customers Consumer Lending Branch Banking Wealth Management Wholesale Banking Retail Bank Cards Mortgage Auto 2013 total revenue of $560MM 2013 average loans of $2.0B 2013 average core deposits of $8.8B $26B assets under management $302B assets under care 2013 total revenue of $2.6B 2013 average loans of $47.3B 2013 average core deposits of $30.2B 2013 total revenue of $2.0B 2013 average loans of $17.5B 1,311 banking centers 2,614 ATMs 12 states Private Bank Retail Brokerage Institutional Services Commercial Bank Footprint Business Lines Highlights In footprint markets National consumer lending In footprint markets National commercial banking Diversified financial services company operating in 12 states 1 Source: Inside Mortgage Finance 2 Source: Experian Auto Count. Loans (excluding leases) originated by franchised dealers. Prime banks only - excludes captives and non primes. Capital One is excluded because they are primarily non-prime. Ally is excluded because they were primarily a captive. 2013 total revenue of $1.1B 2013 average loans of $22.2B #12 mortgage originator¹ (42 states) #5 bank indirect auto originator² (45 states) |
![]() 3 © Fifth Third Bank | All Rights Reserved 2013: A record year Return on avg. assets Net income to common ($MM) Generated highest level of net income in Company’s history Improving profitability approaching target for normalized environment Net charge-off ratio Problem assets at lowest levels in five years ALLL / NPLs Coverage levels among strongest in the industry Capital ratios above regulatory well-capitalized levels 1 Non-GAAP measure; see Reg. G reconciliation in appendix; presented under current U.S. capital regulations 2 2013 is net of the issuance of shares valued at $398MM related to the Series G preferred stock conversion on July 1, 2013. 3 Repurchases of shares in the amount of after-tax gains on the sale of Vantiv shares. Total payout ratio Net payouts to shareholders of $1.3B 2 in 2013 100% of gains 45% of earnings ex-Vantiv gains 26% of earnings ex-Vantiv gains Tier 1 common ratio $511 $503 $1,094 $1,541 $1,799 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 7.0% 7.5% 9.4% 9.5% 9.4% 0.64% 0.67% 1.15% 1.34% 1.48% 6% 6% 23% 21% 23% 31% 39% 11% 12% 3.20% 3.02% 1.49% 0.85% 0.58% 127% 179% 157% 180% 211% 1 Common Dividends Declared Share Repurchases Share Repurchases - ex-Vantiv² - Vantiv³ |
![]() 4 © Fifth Third Bank | All Rights Reserved • Earnings per diluted share of $0.36 • Operating results in line with our expectations, driven by healthy balance sheet with strong growth potential and well-controlled expenses • Despite several large credits that elevated net charge-offs, portfolio asset quality continues to improve; total delinquencies and nonperforming assets remain at low levels First quarter 2014 earnings highlights 1 Non-GAAP measure; see Reg. G reconciliation in appendix. Capital ratios presented under current U.S. capital regulations. The pro forma Basel III Tier 1 common equity ratio is management’s estimate based upon its current interpretation of recent prospective regulatory capital requirements approved in July 2013. • Traditional commercial banking franchise utilizing an affiliate-based model supported with strong national businesses — Segment and industry specialization in mid-corporate, energy, and healthcare • Top 3 deposit market share in key markets with focus on further improving share of wallet • Redesigning retail distribution strategy and prioritizing key segments in consumer bank • Growing regional wealth management and brokerage services • Tier 1 common ratio of 9.5% (Basel III pro forma estimate of ~9.1%) ¹ • Repurchased 8MM common shares in 1Q14; 4Q13 and 1Q14 transactions reduced average diluted share count by 23MM • 2014 CCAR plan not objected to by Federal Reserve Board, includes the potential increase in the quarterly common stock dividend and potential repurchase of common shares — $150MM share repurchase agreement announced in 2Q14 Strong Operating Results Executing on Strategic Plans Prudent Capital Management |
![]() 5 © Fifth Third Bank | All Rights Reserved Net interest income, margin & balance sheet Average core deposit balances ($B) $91.5 $84.9 Loan balances ($B) NII and NIM (FTE) $885 $893 $885 $898 $905 • Growth in NII despite NIM contraction (adjusted for day count) • Changed composition and size of investment portfolio beginning in 3Q13; expect benefit to NII in future quarters • New origination spreads remain tight (reflects increased level of competition, impact of better credit, and relationship profitability approach) • Increase in short-term LIBOR rates key driver for long- term upside on NIM $898 $898 $85.9 $86.7 $87.3 $87.9 $89.5 $80.9 $81.7 $83.2 $85.7 $87.9 1Q13 2Q13 3Q13 4Q13 1Q14 Transaction deposits Other time deposits 3.42% 3.33% 3.31% 3.21% 3.22% $870 $875 $880 $885 $890 $895 $900 $905 $910 3.0% 3.1% 3.2% 3.3% 3.4% 3.5% 3.6% 3.7% 3.8% 3.9% 1Q13 2Q13 3Q13 4Q13 1Q14 Net Interest Income ($MM) NIM 0.0 20.0 40.0 60.0 80.0 1Q13 2Q13 3Q13 4Q13 1Q14 Avg Coml HFI Avg Cons HFI |
![]() 6 © Fifth Third Bank | All Rights Reserved Expense discipline Efficiency ratio Peer median: 65% Total FTE • Operating leverage is a strategic priority in all environments • Expect continued improvement in 2014 • Mid-50% efficiency ratio target – Normalized interest rate environment Noninterest expense ($MM) Source: SNL Financial and company reports. Data as of 1Q14. Efficiency ratio calculated as reported noninterest expense / (net interest income (fully taxable equivalent)+ noninterest income) 1 FITB adjusted efficiency ratio excludes $51MM litigation charges, $36MM negative warrant valuation, $7MM securities gains, $4MM in severance expense and $1MM positive valuation of the Visa total return swap (8%) 1 • Reduction in FTE includes the impact of branch staffing model changes and the reduction of employee costs in mortgage business • Carefully managing expenses in response to revenue environment (total noninterest expense down 4% sequentially) • Will continue R&D investments with increased technology, communications, and equipment expense in 2014 52% 58% 59% 60% 64% 60% 65% 66% 66% 67% 67% 72% 65% USB WFC BBT PNC MTB FITB KEY CMA HBAN STI RF ZION 20,744 20,569 20,256 19,446 19,080 15,000 17,000 19,000 21,000 1Q13 2Q13 3Q13 4Q13 1Q14 $978 $1,035 $959 $989 $950 $500 $700 $900 $1,100 1Q13 2Q13 3Q13 4Q13 1Q14 |
![]() 7 © Fifth Third Bank | All Rights Reserved Credit quality overview $112 Net charge-offs ($MM) $109 $168 4Q13 and 1Q14 net charge-offs elevated; broader portfolio still at low levels $133 NCO ratio 0.63% 0.51% 0.49% 0.67% 0.76% $148 HFI Nonperforming assets ($MM) $1,210 $1,150 $1,014 $946 $980 NPAs down 22% from 1Q13; lowest level since 2007 Reserve Coverage Accruing Past Due ($MM) $470 $410 $414 $337 $379 Includes 1Q14 provision expense of $69MM; reserve coverage levels remain strong. Total delinquencies declined 28% from 1Q13; remain at very low levels NPA ratio 1.41% 1.32% 1.16% 1.10% 1.05% 828 794 680 607 595 382 356 334 373 351 $0 $250 $500 $750 $1,000 $1,250 1Q13 2Q13 3Q13 4Q13 1Q14 Commercial Consumer 306 258 258 276 243 164 152 156 103 94 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 1Q13 2Q13 3Q13 4Q13 1Q14 30-89 Days Past Due 90+ Days Past Due 54 45 44 78 105 79 67 65 70 63 $0 $25 $50 $75 $100 $125 $150 $175 1Q13 2Q13 3Q13 4Q13 1Q14 Commercial Consumer $1,783 $1,735 $1,677 $1,582 $1,483 2.08% 1.99% 1.92% 1.79% 1.65% $0 $500 $1,000 $1,500 $2,000 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 1Q13 2Q13 3Q13 4Q13 1Q14 Allowance for Loan & Lease Losses (ALLL) ($MM) ALLL / Loans and Leases |
![]() 8 © Fifth Third Bank | All Rights Reserved Capital management – core focus 1 Non-GAAP measure; See Reg. G reconciliation in appendix. 2 Tier 1 common equity $710MM common stock repurchases (net of $398MM shares issued related to Series G conversion) $407MM common dividends declared $212MM common stock repurchases utilizing AT Vantiv gains Common Shares Outstanding (MM) and Tangible Book Value per share Basel III Est. 9.0%² Basel III Est. 9.1%² Basel III Est. 9.5%² • 2014 CCAR plan not objected to by Federal Reserve Board • Included the following potential actions for the period 2Q14- 1Q15, subject to Board approval and other factors: • 2014 CCAR plan designed to maintain regulatory common equity capital ratios generally at current levels $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2013 Net Payouts ($MM) 9.7% 9.4% 9.9% 9.4% 9.5% 0% 2% 4% 6% 8% 10% 1Q13 2Q13 3Q13 4Q13 1Q14 913 901 888 878 858 $12.62 $12.69 $13.09 $13.00 $13.40 650 700 750 800 850 900 $11.00 $11.50 $12.00 $12.50 $13.00 $13.50 $14.00 1Q13 2Q13 3Q13 4Q13 1Q14 Common Shares O/S TBV per share – The potential increase in the quarterly common stock dividend to $0.13 per share – The potential repurchase of common shares in an amount up to $669MM – The additional ability to repurchase shares in the amount of any after-tax gains from the sale of Vantiv, Inc. stock, if realized Capital ratios presented under current U.S. capital regulations. The pro forma Basel III Tier I common equity ratio is management’s estimate based upon its current interpretation of recent prospective regulatory capital requirements approved in July 2013. 1 |
![]() 9 © Fifth Third Bank | All Rights Reserved Valuable ownership stake in Vantiv, Inc. March 2009 Significant unrecognized value unlocked March 2009 – Present Realizing earning potential Ongoing impact Positioned well to generate future value $2.35 billion ¹ enterprise value Debt incurred Equity value ¹ 1 • Equity valuation of $1.1B – Including $561MM cash payment related to Advent’s 51% ownership and put rights – Fifth Third retained 49% ownership with additional warrants Recognized value to date ($MM pre-tax) • Currently own 26% interest in Vantiv Holding, LLC, convertible to Vantiv, Inc. shares (NYSE: VNTV) – Carrying (book) value of $437MM as of 3/31/14 – Ownership (market) value of ~$1.5B as of 3/31/14 • Ongoing equity method earnings • Warrant to purchase additional shares in Vantiv – Carried as a derivative asset at fair value of $348MM as of 3/31/14 • Annual payment corresponding with tax benefits accruing to Fifth Third associated with the tax receivable agreement (TRA) – Vantiv reported FITB TRA at a gross value of $551MM as of 1Q14 – FITB realized $9MM in 4Q13 Equity ownership & earnings Total gains / earnings recognized ~$3 billion $1.10B $1.25B Enterprise Value Components $115 $493 $299 $250 Gain on IPO Gains on share sales and TRA Net put and warrant valuation gains Equity method earnings 83.9 70.2 48.8 $0 $20 $40 $60 $80 0 15 30 45 60 75 90 2011 2012 2013 Class B shares (MM) Equity method earnings ($MM) • Pre-tax gain of $1.8B Before Fifth Third’s valuation of warrants, put rights, and minority interest discounts expected to reduce its implied valuation of the business by an estimated $50 million. |
![]() 10 © Fifth Third Bank | All Rights Reserved Repositioning consumer bank with investments and strategic changes Maximize the value offered and the revenue earned from every relationship • Growth in high value segments – Execution consistency – Dedicated team of specialists for focused segmentation Optimize the current distribution model • Redesign branch formats and re-define job categories while preserving revenue streams • Testing to break through the previous minimum staffing levels by deploying new technologies Enhance digital capabilities to lower costs while improving the customer experience • Enhancement of customer service levels through the ease and convenience of digital banking • Deliver solutions in digital channels for increased sales effectiveness and drive adoption 2 1 3 Online banking 2009 1Q14 47% 52% Mobile banking 2011 1Q14 9% 26% Alternative channel delivery % of checking households with Consumer deposit activity Transaction volume by channel 73% 19% Branch ATM 7.5 6.8 6.1 1Q12 1Q13 1Q14 Branch Transactions Average monthly trans. in millions 8% Mobile |
![]() 11 © Fifth Third Bank | All Rights Reserved Commercial Bank – Executing on key strategies Healthcare • Expanded suite of products designed to meet full range of healthcare clients’ needs • Innovative cash management solutions simplify cash handling and improve cash flow Currency Processing Solutions Segment Specialization Industry Specialization Treasury Management Capabilities Energy • Launched in 3Q12 • Focused on extraction and distribution (upstream / downstream) Commercial Real Estate • Centralized group focused on select opportunities • Target clients: businesses that generate $500MM to $2B in revenue • Investments in capital markets capabilities • “Lead left” strategy Mid-Corporate • Streamline processes, reduce costs and maximize convenience Commercial Card Solutions CONSULTATIVE SALES APPROACH |
![]() 12 © Fifth Third Bank | All Rights Reserved Commercial Specialization $53.1B $45.2B $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Total Average Commercial Loans ($B) Middle Market Energy Healthcare Large Corporate Mid Corporate CRE Other |
![]() 13 © Fifth Third Bank | All Rights Reserved Balance Sheet: Average loans & leases (excl. HFS) Average transaction deposits Income Statement: Net interest income² Net interest margin² Noninterest income¹ Noninterest expense Pre-provision net revenue 1,2 ROA ¹ Effective tax rate 1,2 Asset Quality: Net charge-offs Loan loss allowance 4 Nonperforming assets 4 Tier 1 common equity 3,6 Category Fifth Third: Outlook 2014 Outlook ¹ $87.0B $82.9B 1 2013 results exclude a net $534MM benefit from gains on Vantiv share issuance and Vantiv warrants. 2014 outlook does not include potential but currently unforecasted items, such as any potential additional Vantiv gains or losses, future capital actions, or changes in regulatory or accounting guidance. 2 Presented on a fully-taxable equivalent basis. 3 Non-GAAP measure; see Reg. G reconciliation in appendix. 4 Ratio as a percent of loans excluding held-for-sale; allowance expectation assumes current expectation for credit and economic trends and is subject to review in each period. 5 As a percentage of loans and leases 6 Current period capital ratios estimated. Tier 1 common equity ratio outlook assumes generally stable common equity levels managed through asset growth and share repurchases. Repurchases subject to ongoing evaluation under the Federal Reserve’s CCAR process. 2013-Adjusted ¹ Please see cautionary statement on slide 15 for risk factors related to forward-looking statements Mid single digit growth Mid single digit growth Down ~$40MM (~0.50% 5 ) Lower vs. 4Q13 Down ~15% vs. 4Q13 $3.58B 3.32% (3.21% 4Q13) $2.70B $3.95B $2.31B ~1.2% ~28.4% 9.39% $501MM (0.58% 5 ) $1.6B (1.79%) $980MM (1.10%) ~Consistent with 4Q13 Modest growth ~3.15% +/- Down mid-to-high single digits (up mid-single digits ex-mortgage) Down mid-single digits Up low-single digits ~1.15% ~27.0-27.5% |
![]() 14 © Fifth Third Bank | All Rights Reserved Investment thesis Consistent earnings power with high returns Healthy balance sheet with strong growth potential Long history of disciplined expense management Commercial Bank with growing scale and scope of products and services Redesign of Consumer Bank for long term profitability Growing wealth management and brokerage services Balanced capital management supporting growth and shareholder returns |
![]() 15 © 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 Fifth Third’s investment in, relationship with, and nature of the operations of Vantiv, LLC; (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 and deliver products and services 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. |
![]() 16 © Fifth Third Bank | All Rights Reserved Appendix |
![]() 17 © Fifth Third Bank | All Rights Reserved Pre-tax pre-provision earnings PPNR trend 1 Non-GAAP measure; see Reg. G reconciliation in appendix. 2 Prior quarters include similar adjustments. 3 PPNR declined 17% sequentially, reflecting impact of $83MM and $9MM in net detriments to 1Q14 and 4Q13, respectively. Excluding those items, adjusted PPNR declined 5% from 4Q13, driven by seasonal increase in FICA and unemployment tax expense and lower mortgage banking net revenue. 1 $608 $632 $603 $623 $590 $0 $100 $200 $300 $400 $500 $600 $700 1Q13 2Q13 3Q13 4Q13 1Q14 Adjusted PPNR PPNR $653 $905 $655 $614 $507 ($ in millions) 1Q13 2Q13 3Q13 4Q13 1Q14 Income before income taxes (U.S. GAAP) (a) $591 $841 $604 $561 $438 Add: Provision expense (U.S. GAAP) (b) 62 64 51 53 69 PPNR (a) + (b) $653 $905 $655 $614 $507 In noninterest income: Gain from sales of Vantiv shares - (242) (85) - - Vantiv warrant valuation (34) (76) (6) (91) 36 Other Vantiv-related income - - - (9) - Valuation of 2009 Visa total return swap 7 5 2 18 (1) Sale of certain Fifth Third funds (7) - - - - BOLI settlement - (10) - - - Securities (gains) / losses (17) - (2) (2) (7) In noninterest expense: Debt extinguishment (gains) / losses - - - 8 - Severance expense 3 1 5 8 4 Large bank assessment fees - - 5 - - Gain on sale of affordable housing investments (9) (2) (1) - - Donation to Fifth Third Foundation 3 - - 8 - Litigation reserve charges 9 51 30 69 51 Adjusted PPNR $608 $632 $603 $623 $590 Credit-related items: In noninterest income 10 6 5 5 10 In noninterest expense 24 35 16 (12) 9 Credit-adjusted PPNR 3 $642 $673 $624 $616 $609 Adjustments to remove (benefit) / detriment² : There are limitations on the usefulness of credit-adjusted PPNR, including the significant degree to which changes in credit and fair value are integral, recurring components of the Bancorp’s core operations as a financial institution. This measure has been included herein to facilitate a greater understanding of the Bancorp’s financial condition. Note: 1Q14, 2Q13, and 1Q13 included the impact of $3MM, $20MM, and $22MMM, respectively in mortgage repurchase provision. 4Q13 and 3Q13 also included benefits to the mortgage repurchase provision of $28MM and $4MM, respectively. These impacts are reflected in “Credit-related items” and “Adjusted Efficiency Ratio” listed above. PPNR reconciliation |
![]() 18 © Fifth Third Bank | All Rights Reserved Available and contingent borrowing capacity (1Q14): – FHLB ~$11B available, ~$12B total – Federal Reserve ~$29B Holding Company cash at 3/31/14: $2.4B Cash currently sufficient to satisfy all fixed obligations in a stressed environment for over 21 months (debt maturities, common and preferred dividends, interest and other expenses) without accessing capital markets; relying on dividends from subsidiaries or any other discretionary actions Holding company unsecured debt maturities ($MM) Bank unsecured debt maturities ($MM – excl. Brokered CDs) Heavily core funded Strong liquidity profile S-T wholesale 5% $1,250 2,312 2014 2015 2016 2017 2018 2019 2020 on Fifth Third Bancorp Fifth Third Capital Trust (Bancorp) $415 $500 $2,450 $600 2014 2015 2016 2017 2018 2019 2020 On Demand 24% Interest checking 20% Savings/ MMDA 23% Consumer time 3% Foreign Office 1% Non-Core Deposits 3% S-T borrowings 2% Other liabilities 4% Equity 11% L-T debt 9% $500 $500 $500 |
![]() 19 © 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 2014 2013 2013 2013 2013 Income before income taxes (U.S. GAAP) $438 $561 $604 $841 $591 Add: Provision expense (U.S. GAAP) 69 53 51 64 62 Pre-provision net revenue (a) 507 614 655 905 653 Net income available to common shareholders (U.S. GAAP) 309 383 421 582 413 Add: Intangible amortization, net of tax 1 1 1 1 1 Tangible net income available to common shareholders 310 384 422 583 414 Tangible net income available to common shareholders (annualized) (b) 1,257 1,523 1,674 2,338 1,679 Average Bancorp shareholders' equity (U.S. GAAP) 14,862 14,757 14,440 14,221 13,779 Less: Average preferred stock (1,034) (703) (593) (717) (398) Average goodwill (2,416) (2,416) (2,416) (2,416) (2,416) Average intangible assets (19) (20) (22) (24) (26) Average tangible common equity (c) 11,393 11,618 11,409 11,064 10,939 Total Bancorp shareholders' equity (U.S. GAAP) 14,826 14,589 14,641 14,239 13,882 Less: Preferred stock (1,034) (1,034) (593) (991) (398) Goodwill (2,416) (2,416) (2,416) (2,416) (2,416) Intangible assets (18) (19) (21) (23) (25) Tangible common equity, including unrealized gains / losses (d) 11,358 11,120 11,611 10,809 11,043 Less: Accumulated other comprehensive income (196) (82) (218) (149) (333) Tangible common equity, excluding unrealized gains / losses (e) 11,162 11,038 11,393 10,660 10,710 Total assets (U.S. GAAP) 129,654 130,443 125,673 123,360 121,382 Less: Goodwill (2,416) (2,416) (2,416) (2,416) (2,416) Intangible assets (18) (19) (21) (23) (25) Tangible assets, including unrealized gains / losses (f) 127,220 128,008 123,236 120,921 118,941 Less: Accumulated other comprehensive income / loss, before tax (302) (126) (335) (229) (512) Tangible assets, excluding unrealized gains / losses (g) 126,918 127,882 122,901 120,692 118,429 Common shares outstanding (h) 848 855 887 851 875 Ratios: Return on average tangible common equity (b) / (c) 11.0% 13.1% 14.7% 21.1% 15.4% Tangible common equity (excluding unrealized gains/losses) (e) / (g) 8.79% 8.63% 9.27% 8.83% 9.03% Tangible common equity (including unrealized gains/losses) (d) / (f) 8.93% 8.69% 9.42% 8.94% 9.28% Tangible book value per share (d) / (h) 13.40 13.00 13.09 12.69 12.62 For the Three Months Ended |
![]() 20 © 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 2014 2013 2013 2013 2012 Total Bancorp shareholders' equity (U.S. GAAP) $14,826 $14,589 $14,641 $14,239 $13,882 Goodwill and certain other intangibles (2,490) (2,492) (2,492) (2,496) (2,504) Unrealized gains (196) (82) (218) (149) (333) Qualifying trust preferred securities 60 60 810 810 810 Other (18) 19 21 22 23 Tier I capital 12,182 12,094 12,762 12,426 11,878 Less: Preferred stock (1,034) (1,034) (593) (991) (398) Qualifying trust preferred securities (60) (60) (810) (810) (810) Qualifying noncontrolling interest in consolidated subsidiaries (1) (37) (39) (38) (38) Tier I common equity (a) 11,087 10,963 11,320 10,587 10,632 Risk-weighted assets, determined in accordance with prescribed regulatory requirements (b) 116,622 116,736 114,544 112,285 109,626 Ratio: Tier I common equity (a) / (b) 9.51% 9.39% 9.88% 9.43% 9.70% Basel III - Estimated Tier 1 common equity ratio March December September 2014 2013 2013 Tier 1 common equity (Basel I) $11,087 $10,963 $11,320 Add: Adjustment related to capital components $99 $82 $88 Estimated Tier 1 common equity under final Basel III rules without AOCI (opt out)(c) $11,186 $11,045 $11,408 Add: Adjustment related to AOCI $196 $82 $218 Estimated Tier 1 common equity under final Basel III rules with AOCI (non opt out)(d) $11,382 $11,127 $11,626 Estimated risk-weighted assets under final Basel III rules (e) 122,659 122,851 120,447 Estimated Tier 1 common equity ratio under final Basel III rules (opt out) (c) / (e) 9.12% 8.99% 9.47% Estimated Tier 1 common equity ratio under final Basel III rules (non opt out) (d) / (e) 9.28% 9.06% 9.65% (c), (d) (e) Under the final Basel III rules, non-advanced approach banks are permitted to make a one-time election to opt out of the requirement to include AOCI in Tier 1 common equity. Other adjustments include mortgage servicing rights and deferred tax assets subject to threshold limitations and deferred tax liabilities related to intangible assets. Key differences under Basel III in the calculation of risk-weighted assets compared to Basel I include: (1) Risk weighting for commitments under 1 year; (2) Higher risk weighting for exposures to securitizations, past due loans, foreign banks and certain commercial real estate; (3) Higher risk weighting for mortgage servicing rights and deferred tax assets that are under certain thresholds as a percent of Tier 1 capital; and (4) Derivatives are differentiated between exchange clearing and over-the-counter and the 50% risk-weight cap is removed. For the Three Months Ended |
![]() 21 © 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) 2013 2012 2011 2010 2009 Total Bancorp shareholders' equity (U.S. GAAP) $14,589 $13,716 $13,201 $14,051 $13,497 Goodwill and certain other intangibles (2,492) (2,499) (2,514) (2,546) (2,565) Unrealized gains (82) (375) (470) (314) (241) Qualifying trust preferred securities 60 810 2,248 2,763 2,763 Other 19 33 38 11 (26) Tier I capital 12,094 11,685 12,503 13,965 13,428 Less: Preferred stock (1,034) (398) (398) (3,654) (3,609) Qualifying trust preferred securities (60) (810) (2,248) (2,763) (2,763) Qualifying noncontrolling interest in consolidated subsidiaries (37) (48) (50) (30) - Tier I common equity (a) 10,963 10,429 9,807 7,518 7,056 Risk-weighted assets, determined in accordance with prescribed regulatory requirements (b) 116,736 109,699 104,945 100,561 100,933 Ratio: Tier I common equity (a) / (b) 9.39% 9.51% 9.35% 7.48% 6.99% For the Year Ended |