Annual Meeting of Shareholders April 14, 2015 Please refer to earnings release dated January 21, 2015 and 10-K dated February 25, 2015 for further information, including full results reported on a U.S. GAAP basis. Exhibit 99.1 © Fifth Third Bank | All Rights Reserved |
2 2014 performance at a glance Diluted Earnings Per Share Strong long-term earnings growth Nonperforming asset ratio Problem assets at lowest levels since before crisis Tier 1 common ratio 2 ALLL / NPLs Maintaining prudent reserve stance Solid capital ratios; above targets and requirements 1 Includes dividends declared and share repurchases. 2013 is net of the issuance of shares valued at $398MM related to the Series G preferred stock conversion on July 1, 2013. 2012, 2013, and 2014 also include repurchases of shares in the amount of after-tax gains on the sale of Vantiv shares. 2 Non-GAAP measure; see Reg. G reconciliation in appendix. Book value per share Creating value and sustaining momentum in results Total payout ratio 1 ~$1.1B 1 payout to common shareholders in 2014 © Fifth Third Bank | All Rights Reserved 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 $0.63 $1.18 $1.66 $2.02 $1.66 $13.06 $13.92 $15.10 $15.85 $17.35 6% 24% 63% 74% 76% 179% 157% 180% 211% 228% 2.79% 2.23% 1.49% 1.10% 0.82% 7.5% 9.4% 9.5% 9.5% 9.7% |
3 ABOVE MARKET GROWTH TOP-TIER EQUITY RETURNS SOUND RISK MANAGEMENT Where we focus to create value for our shareholders © Fifth Third Bank | All Rights Reserved › Run core businesses to take share › Deliver on our value proposition › Expand markets we serve › Thoughtful deployment of capital › Manage to less volatile, more sustainable earnings growth › Continuous improvements in scale, efficiency, and productivity › Balanced business portfolio › Balance sheet management › Credit risk management › Regulatory compliance |
4 Operating environment update › Tepid economic growth › Regulation eliminates certain businesses and constrains future innovation › Changing customer behavior › Interest rates › Fee regulation › Compliance costs › Capital and liquidity regulation › Future regulatory uncertainty › At a favorable point in the credit cycle ABOVE MARKET GROWTH TOP-TIER EQUITY RETURNS SOUND RISK MANAGEMENT © Fifth Third Bank | All Rights Reserved |
5 Strong capital return to shareholders 2014 total payout yield (regional peers) ~$1.1 billion in capital returned to common shareholders $654MM common stock repurchases $427MM common dividends declared Increased common stock dividend and continued active share repurchase program Source: SNL Financial. Total payout yield equals dividend yield plus shares repurchased ($) / reported market cap at 12/31/14. © Fifth Third Bank | All Rights Reserved $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 2014 Payouts ($MM) 6.4% 6.2% 5.9% 5.9% 5.9% 4.9% 4.8% 4.6% 4.0% 3.7% 2.5% 2.2% 0.6% 0% 1% 2% 3% 4% 5% 6% 7% |
6 Performance track-record Total Shareholder Return Fifth Third (FITB) vs. S&P Banks Index (BIX) and S&P 500 Index (SPX) 5 years 2009-2014 BIX 89% FITB 130% SPX 104% 1 The S&P Banks Composite is a capitalization-weighted index of all the stocks in the S&P 500 that are involved in the business of banking. Source: Bloomberg; refer to 10-K dated February 25, 2015 for additional views of total shareholder return. © Fifth Third Bank | All Rights Reserved (10%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% 160% 12/09 5/10 10/10 3/11 8/11 1/12 6/12 11/12 4/13 9/13 2/14 7/14 12/14 1 |
7 Looking at banking differently Homeowner Reemployment Program • Directing donations toward cancer research with every qualifying purchase made using a Fifth Third SU2C debit or credit card • Fifth Third’s Financial Empowerment Mobiles have been on the road since 2004 bringing valuable services to low- and moderate-income community members. © Fifth Third Bank | All Rights Reserved • First in the industry to offer job search assistance to unemployed mortgage borrowers • Winner of BAI-Finacle Global Banking Innovation Award in Societal and Community Impact |
8 Accolades Fifth Third Private Bank ranked #25 on list of top Wealth Management Firms Fifth Third ranked third nationally in the U.S. Treasury’s SSBCI lending Fifth Third Recognized as Green Power Partner and as a member of EPA’s Green Power Leadership Club 2014 Disability Matters honoree, presented by Springboard Consulting LLC Significant national and local recognition across diverse areas Business Practices • Employment • Green Initiatives • Customer Service • Philanthropy © Fifth Third Bank | All Rights Reserved |
© Fifth Third Bank | All Rights Reserved |
10 Cautionary statement © Fifth Third Bank | All Rights Reserved 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 as updated by our Quarterly Reports on Form 10-Q. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements we may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. There are a number of important factors that could cause future results to differ materially from historical performance and these forward- looking statements. Factors that might cause such a difference include, but are not limited to: (1) general economic conditions and weakening in the economy, specifically the real estate market, either nationally or in the states in which Fifth Third, one or more acquired entities and/or the combined company do business, are less favorable than expected; (2) deteriorating credit quality; (3) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (4) changes in the interest rate environment reduce interest margins; (5) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (6) Fifth Third’s ability to maintain required capital levels and adequate sources of funding and liquidity; (7) maintaining capital requirements and adequate sources of funding and liquidity 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. |
11 Regulation G Non-GAAP reconciliation Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) 2014 2013 2012 2011 2010 Total Bancorp shareholders' equity (U.S. GAAP) $15,626 $14,589 $13,716 $13,201 $14,051 Goodwill and certain other intangibles (2,476) (2,492) (2,499) (2,514) (2,546) Unrealized gains (429) (82) (375) (470) (314) Qualifying trust preferred securities 60 60 810 2,248 2,763 Other (17) 19 33 38 11 Tier I capital 12,764 12,094 11,685 12,503 13,965 Less: Preferred stock (1,331) (1,034) (398) (398) (3,654) Qualifying trust preferred securities (60) (60) (810) (2,248) (2,763) Qualifying noncontrolling interest in consolidated subsidiaries (1) (37) (48) (50) (30) Tier I common equity (a) 11,372 10,963 10,429 9,807 7,518 Risk-weighted assets, determined in accordance with prescribed regulatory requirements (b) 117,878 115,969 109,301 104,219 100,561 Ratio: Tier I common equity (a) / (b) 9.65% 9.45% 9.54% 9.41% 7.48% For the Year Ended © Fifth Third Bank | All Rights Reserved |