FIFTH THIRD BANCORP - FORM 8-K - EX-99.1 - FIFTH THIRD BANCORP PRESENTATION

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8-K - CURRENT REPORT - FIFTH THIRD BANCORP	d8k.htm

Investor Update

May 2010

Please refer to earnings release dated April 22, 2010 and 10-Q dated

May 7, 2010 for further information, including full results reported on a U.S.

GAAP basis

Exhibit 99.1

Fifth Third franchise

As of 5/13/10

$113 billion assets (#13)

$84 billion deposits (#13)

$11 billion market cap (#13)*

16 affiliates in 12 states

1,309 banking centers

2,364 ATMs

Leading market share in mature Midwest

market

Built strong presence in higher growth

Southeastern markets over past 5 years

Naples

Kentucky

Tennessee

Georgia

Florida

North

Carolina

West

Virginia

Pennsylvania

Ohio

Michigan

Illinois

Indiana

Missouri

Diversified franchise

2009

net

revenue

$2.8

billion*

Branch Banking (38% of net revenue)

Retail and business banking

$18.4B average loans; $44.6B average core deposits

3.8M customers; 1.4M online banking customers

Commercial Banking (35% of net revenue)

Corporate and middle market lending, treasury services,

international trade finance, commercial leasing and

syndicated finance

$41.4B average loans; $18.4B average core deposits

765 corporate client relationships and 13,500 middle market

client relationships

Consumer Lending (22% of net revenue)

Real estate-secured mortgages, home equity loans, credit

cards, student loans, and auto lending

$20.5B average loans

7,600 dealer indirect auto lending network

Investment Advisors (5% of net revenue)

Private Bank, Retail Brokerage, Asset Management, and

Institutional Services

$3.1B average loans; $4.9B average core deposits

$25B assets under management; $187B assets under care

Represents

tax-equivalent

net

revenue

(income

before

taxes,

excluding

provision

for

loan

and

lease

losses).

Excludes

$1.5B

general

corporate,

which

approximately

$221M represented 1H09 contribution of Fifth Third Processing Solutions (51% interest subsequently sold)

38%

22%

35%

Branch

Banking

$1.1B

Investment

Advisors

$139M

Commercial

Banking

$1.0B

Consumer Lending

$610M

1Q10 in review

•

Net loss of $10 million

versus 4Q09 net loss of

$98 million

•

Pre-provision net revenue

of $568 million, up $6

million from 4Q09

•

Net interest margin of

3.63%, up 8 bps

sequentially

•

Average core deposits up

$4.4B, or 6% sequentially

•

Extended $18 billion of new

and renewed credit

Strong operating trends

•

Nonperforming assets declined

3% and nonperforming loans

declined 7% sequentially

(lowest levels since 2Q09)

–

Total delinquencies

declined 15% sequentially

(lowest level since 3Q07)

•

Net charge-offs declined 18%

sequentially (lowest level since

1Q09)

•

Allowance to loan ratio of

4.91%, 139% of nonperforming

loans and leases and 1.6 times

annualized 1Q10 net charge-

offs

•

Realized credit losses have

been significantly below SCAP

scenarios

Significant improvements in credit

•

Tangible common equity

ratio of 6.4%

•

Tier 1 common ratio of

7.0%

•

Leverage ratio of 12.0%

(8.9% ex-TARP)

•

Tier 1 capital ratio of

13.4% (10.0% ex-TARP)

Robust capital levels

Peer performance summary

Source: SNL and company reports.

(1)

Regional bank peer average consists of BBT, CMA, HBAN, KEY, MTB,

MI, PNC, RF, STI, USB, WFC, and ZION, unless otherwise noted.

(2)

Midwest peer average consists of CMA, HBAN, KEY, MI, and USB, unless otherwise noted.

Operating fee growth, core pre-tax pre-provision earnings, and operating efficiency ratio exclude the following items: securities gains/losses, gains/losses from debt

extinguishments, leveraged lease gains/losses, gains from asset sales, goodwill impairment charges, and other non-recurring items. Average loans include only loans

held-for-investment. NPAs exclude loans held-for-sale and covered assets.

Continued relative outperformance on key value drivers

FITB

1Q10

Regional

bank peers

(1)

1Q10

Midwest

peers

(2)

1Q10

SEQ performance

vs. peers

Net interest margin /

(bps)

3.63% (+8)

3.60% (+13)

3.37% (+18)

Better

Operating fee growth*

-1%

-9%

-5%

Better

Core pre-tax pre-provision earnings* / loans

2.9%

2.7%

2.6%

Better

Operating efficiency ratio*

62%

64%

65%

Better

Average core deposits growth

Better

Average loan growth*

-1%

-2%

Better

NPA ratio* /

(bps)

4.02% (-20)

4.33% (+11)

3.47% (-7)

Better

Net charge-off ratio /

(bps)

3.01% (-61)

2.48% (-46)

2.86% (-90)

Area of focus

Pre-tax pre-provision earnings

4.6%

4.5%

4.2%

3.2%

2.9%

2.7%

2.6%

2.0%

1.9%

1.7%

1.4%

WFC

USB

PNC

BBT

FITB

MTB

HBAN

KEY

CMA

STI

ZION

Peer average: 2.7%

1Q10 core PPNR / average loans (annualized)*

Core PPNR trend

Fifth

Third’s

pre-tax,

pre-provision

net

revenue

(PPNR)

loans

higher

than

most

regional

bank

peers

Core PPNR reconciliation

Credit

adjusted

PPNR

Average

Loans

Source: SNL and company reports. Core PPNR excludes securities gains/losses, gains/losses from debt extinguishments, leveraged lease gains/losses, gains from asset

sales, goodwill impairment charges, divested fees and expenses related to FTPS, and other non-recurring items where appropriate. Credit-related adjustments include

mortgage

repurchase

expenses,

provision

for

unfunded

commitments

expense,

derivative

valuation

adjustments,

OREO

expenses

and

other

workout

expenses.

111

483

564

535

562

$100

$200

$300

$400

$500

$600

$700

1Q09

2Q09

3Q09

4Q09

1Q10

Core

Fee Income Credit Items

Noninterest Expense Credit Items

569

1Q09

2Q09

3Q09

4Q09

1Q10

Reported PPNR (GAAP)

$511

$2,393

$844

$562

$568

Adjustments:

Gain on sale of Visa shares

(244)

BOLI charge

Gain from sale of processing interest

(1,764)

Divested merchant and EFT revenue

(155)

(169)

Class B Visa swap fair value adjustment

Securities gains/losses

(5)

(8)

(2)

(14)

Visa litigation reserve expense

(73)

Other litigation reserve expense

FTPS Warrants

(20)

Seasonal pension expense

FDIC special assessment

Divested merchant and EFT expense (estimated)

Core PPNR

$483

$564

$535

$562

$569

Credit Related Items:

OREO write-downs, FV adjs, & G/L on loan sales

Problem asset work-out expenses

111

Credit adjusted PPNR

$580

$629

$691

$665

$661

Stable income and expense in difficult environment

Core fee income ($M)

Core expenses ($M)

•

Strong mortgage banking results continued in 1Q10,

resulting in $3.5B of originations and $152M in net

revenue

•

Investment advisory revenue up 5% from previous qtr

•

Card and processing revenue sequential decrease 4%

–

Debit interchange: $46M 1Q10; $177M 2009

–

Credit interchange: $21M 1Q10; $85M 2009

•

Corporate banking revenue down 8% sequentially

driven by declines in business lending fees, foreign

exchange revenue, and institutional sales

•

Credit-related costs affected fee income by $1M in

1Q10 compared with $30M the previous quarter

•

Sequential increase in core expenses driven by

elevated credit costs and seasonal benefits expense

partially offset by disciplined discretionary expense

control

•

Core efficiency ratio of 62.4% in 1Q10, an improvement

from 65.1% in 1Q09

•

Credit-related costs affected non-interest expenses by

$91M in 1Q10 compared with $73M the previous

quarter

•

Total expense related to mortgage repurchases ~$39M

in 1Q10 compared with $18M in 4Q09 and $6M in 1Q09

* Refer to slide 6 for itemized effects of non-core fees and expenses

620

645

605

629

624

653

650

659

625

$100

$200

$300

$400

$500

$600

$700

1Q09

2Q09

3Q09

4Q09

1Q10

Core

Fee Income Excluding Credit Items

913

912

938

945

952

819

856

828

872

861

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

1Q09

2Q09

3Q09

4Q09

1Q10

Core

Noninterest Expense Excluding Credit Items

Net interest income

Core NII and NIM*

•

Trends in net interest income and net

interest margin favorably compare with

peers

–

NIM up 8 bps in 1Q10 vs. 4Q09

•

Expect continued margin benefit

through 2010 from CD maturities and

improved loan spreads

(bps)

Reported NIM and YOY growth versus peers

Peers include: BBT, CMA, HBAN, KEY, MI, MTB, PNC, RF, STI, USB, WFC, ZION

Source: SNL and company reports

Core

results

exclude

$6M

charge

leveraged

lease

litigation

1Q09.

Also

excluded

are

$41M,

$35M,

$27M,

$24M,

and

$19M

loan

discount accretion from the First Charter acquisition in 1Q09, 2Q09, 3Q09, 4Q09, and 1Q10 respectively.

Yields and rates*

($Ms)

$746

$801

$847

$859

$882

2.92%

3.13%

3.33%

3.45%

3.55%

2.0%

2.5%

3.0%

3.5%

4.0%

1Q09

2Q09

3Q09

4Q09

1Q10

$400

$500

$600

$700

$800

$900

Net interest income (right axis)

NIM

3.63%

57 bps

3.60%

36 bps

NIM

NIM growth

FITB

Peer average

1.0%

2.0%

3.0%

4.0%

5.0%

1Q09

2Q09

3Q09

4Q09

1Q10

100

200

300

400

Spread (right axis)

Asset yield

Liability rate

Balance sheet:

Continued growth in core funding

•

Extended $18B of new and renewed credit in 1Q10

•

CRE loans down 4% sequentially and 12% from the previous year

–

New homebuilder/developer, non-owner occupied CRE suspended 2008

•

C&I loans down 1% sequentially and 12% from the previous year largely due

to lower line utilization and soft demand*

•

Strong

mortgage

originations

$1.5B in residential mortgage loans held-for-

sale warehouse (not carried in loans held-for investment)

•

Core deposit to loan ratio of 97%, up from 80% in 1Q09

•

Everyday Great Rates strategy continues to drive core deposit growth

–

DDAs

up 4% sequentially and 21% from the previous year

–

Commercial core deposits up 20% sequentially and 46% from the previous

year

–

Retail

core

deposits

sequentially

and

from

the

year

Average loan growth ($B)^

Average core deposit growth ($B)

Average wholesale funding ($B)

•

Reduced wholesale funding by $1.9 billion sequentially and $14.7

billion from

the previous year

–

Non-core deposits down 14% sequentially and 40% from the previous year

–

Short term borrowings down 52% sequentially and 84% from the previous

year

–

Long-term debt up 10% sequentially and down 8% from the previous year

•

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

(balance sheet hedges added to mitigate interest rate risk)

^ Excludes loans held-for-sale

* Excludes the impact of $724M in C&I balances that were consolidated on January 1, 2010

Note: Numbers may not sum due to rounding

1Q09

2Q09

3Q09

4Q09

1Q10

Commercial Loans

Consumer Loans

1Q09

2Q09

3Q09

4Q09

1Q10

Demand/IBT

Savings/MMDA

Consumer CD/Core foreign

1Q09

2Q09

3Q09

4Q09

1Q19

Non-core deposits

ST borrowings

LT debt

Improving credit results

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

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

NPA ratio vs. peers

Net charge-off ratio vs. peers*

Loans 90+ days delinquent % vs. peers

Loans 30-89 days delinquent % vs. peers

Manageable commercial real estate exposure

CRE / Assets

Source: SNL and company reports.

Peer average: 215%

CRE / (TCE + Reserves)

Peer average: 18%

12%

11%

33%

30%

24%

15%

14%

MTB

ZION

CMA

KEY

HBAN

FITB

STI

USB

BBT

WFC

PNC

473%

312%

295%

264%

209%

173%

168%

154%

147%

143%

136%

123%

117%

MTB

ZION

CMA

USB

HBAN

KEY

STI

BBT

FITB

WFC

PNC

13%

CRE exposure lower than peer average; problems relatively more manageable given capital and reserves

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

$3,000

$3,250

$3,500

$3,750

$4,000

$4,250

$4,500

$4,750

$5,000

$5,250

$5,500

Updated credit loss expectations vs. SCAP scenarios

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

2008

2009

2010

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

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

** Source for macroeconomic assumptions: Moody’s Economy.com. Assumptions as of March 2010.

Fifth Third

capitalized for this

level of credit

losses under SCAP

(plus surplus raised

vs. buffer)

$4.1B

$5.0B

$2.8B

Moody’s Weaker

Recovery / Mild

Second Recession

Case** Assumptions

(Mar. 2010)

Moody’s Base

Case** Assumptions

(Mar. 2010)

SCAP Baseline Scenario

(Submitted; Mar 2009)

SCAP Adverse Scenario*

(Supervisory; Mar 2009)

Actual

$2.6B

Actual

$2.7B

$2.9B

Fifth Third’s realized credit losses

have been significantly below its

SCAP submitted baseline and

more adverse scenarios

–

In SCAP submissions, we

incorporated significant

conservatism, given then

prevailing negative economic

and industry trends and

extreme uncertainty in

potential loss outcomes

–

Economic and credit market

conditions are much

improved versus those

expected in spring 2009

Base and stress scenarios reflect

Moody’s Base Case and Moody’s

Weaker Recover / Mild Second

Recession Case (as of March

2010)**

Our current expectation is for

2010 losses to be lower than 2009

Strong reserve position

Coverage ratios are strong relative to peers

Industry leading reserve level

FITB

4.91%

KEY

4.34%

ZION

4.05%

HBAN

4.00%

3.61%

3.57%

PNC

3.38%

WFC

3.22%

USB

2.80%

10.

STI

2.79%

11.

BBT

2.65%

12.

CMA

2.42%

13.

MTB

1.75%

Peer Average

3.21%

Reserves / Loans

490

626

756

708

582

196

283

415

4.88%

4.91%

3.31%

4.28%

4.69%

1Q09

2Q09

3Q09

4Q09

1Q10

$200

$400

$600

$800

$1,000

$1,200

$1,400

Net Charge-offs

Additional Provision

Reserves

139%

122%

161%

90%

78%

141%

Reserves / NPLs

Reserves / NPAs

Reserves / Annualized NCOs

FITB

Peer Average

Source: SNL and company reports. NPAs/NPLs exclude held-for-sale portion for all banks and covered assets for BBT, USB, and ZION.

Robust capital position

Source: SNL and company reports.

* MTB Tier 1 common ratio as of 12/31/09.

Strong capital ratios relative to peers, particularly considering reserve levels

11.7%

10.4%

10.3%

10.0%

9.9%

9.6%

8.7%

8.3%

8.2%

7.9%

7.4%

BBT

CMA

PNC

FITB

WFC

KEY

USB

STI

HBAN

ZION

MTB

16.8%

15.9%

14.3%

14.1%

13.7%

12.7%

12.5%

12.2%

12.0%

11.9%

10.6%

8.6%

KEY

CMA

FITB

WFC

STI

BBT

ZION

HBAN

PNC

USB

MTB

(TCE + reserves) / Loans

Peer average: 12.8%

Peer average w/

TARP: 11.1%

Peer average

w/o TARP: 9.4%

Tier 1 capital ratio (with and without TARP)

8.9%

11.1%

13.1%

12.0%

11.2%

13.4%

12.9%

11.7%

Tangible common equity ratio

9.7%

8.0%

7.4%

6.8%

6.7%

6.4%

6.3%

6.2%

6.1%

5.8%

5.4%

5.3%

CMA

KEY

WFC

STI

FITB

ZION

BBT

HBAN

MTB

USB

PNC

Peer average: 6.6%

Tier 1 common ratio

9.6%

8.7%

7.9%

7.7%

7.5%

7.3%

7.1%

7.0%

6.5%

5.7%

CMA

BBT

PNC

STI

KEY

USB

WFC

ZION

FITB

HBAN

MTB*

Peer average: 7.4%

Strong liquidity profile

Net loans and leases / core deposits

Source: 3/31/2010 Company Y9C reports

*Noncore funding dependence as of 12/31/09 as 3/31/10 BHCPR reports not yet available

•

Over the past year, Fifth Third has reduced its net noncore funding reliance by 20%, more than any

peer other than Comerica*

–

Fifth

Third

has

the

lowest

net

noncore

funding

dependence

among

its

peers*

•

Fifth Third has no holding company debt maturing in the next year and less than 1% of

consolidated Bancorp debt, lower than peers

Peer average: 104%

92%

94%

98%

99%

102%

105%

106%

107%

111%

112%

116%

PNC

HBAN

FITB

ZION

STI

KEY

BBT

WFC

MTB

CMA

USB

Strong liquidity profile

Retail Brokered CD maturities: $813M in 2010; $31M in 2011

3/31 unused avail. capacity $27B ($18.5B in Fed and $8.7B in FHLB)

FHLB borrowings $2.6B; Q1 avg. core deposits $76B; equity $14B

All market borrowings by Fifth Third Bank

Holding Company cash at 3/31/10: $1.35B

—

Total Fed deposits ~$4.0B

Expected cash obligations over the next 12 months (assuming no

TARP repayment)

—

$0 debt maturities

—

~$39M common dividends

—

~$205M preferred dividends (~$35M Series G, ~$170M TARP)

—

~$237M interest and other expenses

Cash currently sufficient to satisfy all fixed obligations* over

the

24 months without accessing capital markets/subsidiary

dividends

Bank unsecured debt maturities ($M –

excl. Brokered CDs)

Heavily core funded

Holding company unsecured debt maturities ($M)

* Debt maturities, common and preferred dividends, interest and other expenses

$52

$500

2010

2011

2012

2013

2014

2015 on

$750

$5.0B

2010

2011

2012

2013

2014

2015 on

Fifth Third Bancorp

Fifth Third Capital Trust

2010 developments

Fifth Third response

Macro themes

•

Sluggish loan demand

•

Deposits to grow but

expect some diminution

as later liquidity drawn

down by deposits to

support expansion in

spending

•

Additional consumer

regulation

•

Higher interest rates late

2010 / early 2011

•

TARP repayment

•

Leverage existing customer relationships at the local level to

offer our full portfolio of products and services across all of our

lines of business

•

Invest in sales force expansion initiatives to increase resources

and branch hours while maintaining focus on a near-term return

to profitability

•

Reorient fee structure of products and services to offer a clearer

and higher value proposition to our clients and create more

sustainable, consistent growth

•

Maintain excess liquidity, neutral to modest asset sensitive

positioning

•

Remain committed to repayment in a manner that is in the best

interest of all constituents, including shareholders

Continuing to invest for the future

Summary

Fifth Third continues to execute on its strategic initiatives and

is focused on being well-positioned for the turn of the cycle.

•

Dedicated to serving the needs

of families and businesses for

more than 150 years

•

Businesses creating new and

profitable opportunities to

enhance value

•

Trends in NII and NIM

favorably compare with peers

•

Ongoing expense control

•

Continued shift back toward

core funding

Core franchise remains strong

•

Strong reserve coverage of

problem loans

•

Aggressive management has

mitigated areas of highest risk

•

Significantly enhanced SAG

and workout resources, while

continuing prudent lending

practices

•

Significantly improved credit

trends in 1Q10

Aggressive management of

credit issues

•

Successfully completed June

2008 capital plan and SCAP

capital actions

•

Actions exceeded SCAP Tier 1

common equity commitment

by 80%

•

Current capital levels able to

withstand significant additional

economic deterioration as

demonstrated by the SCAP

assessment

Robust capital levels

Cautionary statement

This report may contain statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of

1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6

promulgated thereunder. These statements relate to our financial condition, results of operations, plans, objectives, future performance or

business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is

anticipated,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,”

“objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or

similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to

the risk factors set forth in our most recent Annual Report on Form 10-K and our most recent quarterly report on Form 10-Q. When considering

these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements we may make.

Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to

us.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking

statements. Factors that might cause such a difference include, but are not limited to: (1) general economic conditions and weakening in the

economy, specifically the real estate market, either nationally or in the states in which Fifth Third, one or more acquired entities and/or the

combined company do business, are less favorable than expected; (2) deteriorating credit quality; (3) political developments, wars or other

hostilities may disrupt or increase volatility in securities markets or other economic conditions; (4) changes in the interest rate environment reduce

interest margins; (5) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (6) Fifth Third’s ability to

maintain required capital levels and adequate sources of funding and liquidity; (7) maintaining capital requirements may limit Fifth Third’s

operations and potential growth; (8) changes and trends in capital markets; (9) problems encountered by larger or similar financial institutions may

adversely affect the banking industry and/or Fifth Third (10) competitive pressures among depository institutions increase significantly; (11) effects

of critical accounting policies and judgments; (12) changes in accounting policies or procedures as may be required by the Financial Accounting

Standards Board (FASB) or other regulatory agencies; (13) legislative or regulatory changes or actions, or significant litigation, adversely affect

Fifth Third, one or more acquired entities and/or the combined company or the businesses in which Fifth Third, one or more acquired entities

and/or the combined company are engaged; (14) ability to maintain favorable ratings from rating agencies; (15) fluctuation of Fifth Third’s stock

price; (16) ability to attract and retain key personnel; (17) ability to receive dividends from its subsidiaries; (18) potentially dilutive effect of future

acquisitions on current shareholders’ ownership of Fifth Third; (19) effects of accounting or financial results of one or more acquired entities; (20)

difficulties in separating Fifth Third Processing Solutions from Fifth Third; (21) loss of income from any sale or potential sale of businesses that

could have an adverse effect on Fifth Third’s earnings and future growth; (22) ability to secure confidential information through the use of compute

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.

Investor Update

Supplement

May 2010

Please refer to earnings release dated April 22, 2010 and 10-Q dated

May 7, 2010 for further information, including full results reported on a U.S.

GAAP basis

Balance Sheet:

Average loans & leases

Average core deposits

Income Statement:

Net interest income*

Net interest margin*

Noninterest income

Noninterest expense

Pre-provision net revenue

Asset Quality:

Net charge-offs

Loan loss allowance^

Nonperforming assets^

Capital Ratios:

Tier I common equity

Tier I leverage

Tier I capital

Total risk-based capital

Category

Fifth Third: Second quarter 2010 outlook

2Q10 Outlook

$80.1 billion

$76.3 billion

$901 million

3.63%

$627 million

$956 million

$568 million

$582 million

$3.8 billion (4.9%)

$3.1 billion (4.0%)

7.0%

12.0%

13.4%

17.6%

Relatively stable

Consistent with 1Q10

Consistent with 1Q10 or

up modestly

~$600 million +/-

Down ~$10-$15 million

Consistent with 1Q10

Down ~$100 million +/-

Begin to decline

Relatively stable

Stable to modestly

higher

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

* Presented on a fully-taxable equivalent basis.

^ Ratios as a percent of loans excluding held-for-sale.

1Q10 Actual Results

Fifth Third credit ratings

Fifth Third Bancorp

Moody's

Standard & Poor's

Fitch

DBRS

Short Term Debt

P-2

Short Term Issuer

A-2

Short Term Issuer

Short Term

R-1L

Senior Unsecured

Baa1

Long Term Issuer

BBB

Long Term Issuer

A-

Long Term Issuer

Individual Rating

Outlook

Negative

Outlook

Negative

Outlook

Negative

Outlook

Stable

Outlook Date

4/14/2009

Outlook Date

6/17/2009

Outlook Date

6/23/2009

Outlook Date

11/24/2009

Fifth Third Bank (OH)

Moody's

Standard & Poor's

Fitch

DBRS

Short Term Debt

P-1

Short Term Issuer

A-2

ST Issuer Default

Short Term

R-1L

Long Term Issuer

BBB+

Long Term Issuer

A-

Long Term Deposit

Senior Unsecured

Fifth Third outstanding debt

Outstanding Debt

Holding Company

Type

Issue Date

Maturity Date

Amount

Rate Type

Rate

Senior Notes

04/30/08

05/01/13

$ 750,000,000

Fixed

6.25%

Subordinated Debt

12/13/06

12/20/16

$ 250,000,000

Floating

3ML + .42%

Subordinated Debt

12/20/06

01/15/17

$ 500,000,000

Fixed

5.45%

Subordinated Debt

05/23/03

06/01/18

$ 500,000,000

Fixed

4.50%

Trust Preferred*

04/10/02

04/22/32

$ 25,774,000

Floating

6ML + 3.70%

Trust Preferred*

12/19/02

12/26/32

$ 10,310,000

Floating

3ML + 3.25%

Trust Preferred*

08/08/03

09/17/33

$ 15,464,000

Floating

3ML + 3.10%

Trust Preferred*

12/31/03

12/30/33

$ 41,238,000

Floating

3ML + 2.79%

Trust Preferred*

03/31/04

06/17/34

$ 25,774,000

Floating

3ML + 2.90%

Trust Preferred*

06/28/05

09/15/35

$ 36,083,000

Floating

3ML + 1.42%

Trust Preferred*

09/29/05

12/15/35

$ 25,774,000

Floating

3ML + 1.69%

Subordinated Debt

03/04/08

03/01/38

$ 1,000,000,000

Fixed

8.25%

Trust Preferred

03/30/07

04/15/47

$ 750,000,000

Fixed / Float

6.5% / 3ML + 1.37%

Trust Preferred

08/08/07

08/15/67

$ 575,000,000

Fixed / Float

7.25% / 3ML + 2.57%

Trust Preferred

10/23/07

11/15/67

$ 862,500,000

Fixed / Float

7.25% / 3ML + 3.03%

Trust Preferred

05/06/08

05/15/68

$ 400,000,000

Fixed / Float

8.88% / 3ML + 5.00%

* Acquired through acquisitions

Bank Entity

Type

Issue Date

Maturity Date

Amount

Rate Type

Rate

Senior Notes

05/17/06

05/17/13

$ 500,000,000

Floating

3ML + .11%

Subordinated Debt

01/31/05

02/01/15

$ 500,000,000

Fixed

4.75%

Updated stress testing -

process overview

Similar process to that used in 2008 and SCAP processes; updated

for actual

performance and current economic expectations

Moody’s “Base”

and “Weaker Recovery/Mild Second Recession”

scenarios key

economic assumptions

Commercial

—

33 geographic/industry sectors analyzed and regressed against economic and

performance drivers

—

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

region and industry

Consumer

—

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

liquidating home equity)

—

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

rates, and applied economic factors

–

Mortgage and home equity key correlation: HPI

–

Credit card key correlation: unemployment

–

Other consumer key correlations: unemployment and GDP

Base

Adverse

Economic Assumptions*

2010

Peak Unemployment

10.3%

11.4%

GDP

2.4%

0.3%

Avg. change in quarterly HPI

(1.8%)

(2.7%)

* Moody’s Economy.com; as of March 2010

Fifth Third Bank: Strongly capitalized

Data as of 1Q10. Source: SNL Financial.

Fifth Third Bank is the most well-capitalized large U.S. bank.

Tier 1

Total Capital

Capital Ratio

Ratio

Lead Banks

1Q10

Lead Banks

1Q10

Fifth Third Bank

13.9%

Fifth Third Bank

15.9%

CitiBank, NA

13.6%

CitiBank, NA

15.5%

BB&T (Bank)

12.3%

PNC Bank, National Association

15.1%

PNC Bank, National Association

11.5%

BB&T (Bank)

14.8%

Regions Bank

10.6%

KeyBank

National Association

14.4%

Bank of America, National Association

10.5%

JPMorgan Chase Bank, National Association

14.1%

Capital One, National Association

10.3%

Bank of America, National Association

14.0%

Wells Fargo Bank, National Association

10.2%

Regions Bank

13.9%

KeyBank

National Association

10.2%

Comerica Bank

13.7%

JPMorgan Chase Bank, National Association

10.0%

Wells Fargo Bank, National Association

13.3%

Comerica Bank

9.6%

M&I

Marshall

and

Illsey

Bank

12.8%

M&I

Marshall

and

Illsey

Bank

9.2%

SunTrust Bank

12.2%

SunTrust Bank

8.9%

Manufacturer's and Traders Bank

12.0%

Manufacturer's and Traders Bank

8.2%

Capital One, National Association

11.7%

U.S. Bank National Association

7.6%

Huntington Bancshares, NA

11.5%

Huntington Bancshares, NA

7.1%

U.S. Bank National Association

11.4%

Peer Average

10.0%

Peer Average

13.4%

Industry leading reserve levels

Reserves / NPAs

Reserves / Loans

Data as of 1Q10. Source: SNL Financial and company reports.

NPLs

and NPAs

exclude loans held-for-sale.

Reserves / Net Charge-offs (Annualized)

Reserves / NPLs

Peer average: 3.2%

Peer average: 141%

Peer average: 90%

Peer average: 78%

4.9%

4.3%

4.1%

4.0%

3.6%

3.4%

3.2%

2.8%

2.7%

2.4%

1.8%

FITB

KEY

ZION

HBAN

PNC

WFC

USB

STI

BBT

CMA

MTB

150%

139%

117%

94%

92%

86%

85%

84%

80%

76%

67%

61%

USB

FITB

KEY

BBT

PNC

WFC

CMA

HBAN

ZION

MTB

STI

131%

122%

109%

81%

80%

79%

77%

74%

64%

62%

61%

54%

USB

FITB

KEY

PNC

WFC

CMA

HBAN

ZION

MTB

BBT

STI

236%

192%

174%

161%

155%

143%

118%

116%

115%

114%

97%

89%

MTB

PNC

ZION

FITB

HBAN

BBT

CMA

WFC

KEY

USB

STI

1Q10 net charge off and NPA ratios

Fifth Third Bank key credit metrics have moved in line with other large U.S. banks

Data as of 1Q10. Source: SNL Financial and company reports.

Bank

1Q10 NCO

Ratio

Bank

1Q10 NPA

Ratio

M&T Bank Corporation

0.7%

U.S. Bancorp

2.3%

Comerica Incorporated

1.7%

JPMorgan Chase & Co.

2.7%

PNC Financial Services Group, Inc.

1.8%

M&T Bank Corporation

2.8%

BB&T Corporation

1.9%

Comerica Incorporated

3.1%

Zions Bancorporation

2.3%

Bank of America Corporation

3.7%

U.S. Bancorp

2.4%

Fifth Third Bancorp

4.0%

Huntington Bancshares Incorporated

2.6%

Wells Fargo & Company

4.0%

Wells Fargo & Company

2.7%

PNC Financial Services Group, Inc.

4.1%

SunTrust Banks, Inc.

2.9%

Citigroup Inc.

4.2%

Fifth Third Bancorp

3.0%

KeyCorp

4.3%

Regions Financial Corporation

3.2%

BB&T Corporation

4.4%

KeyCorp

3.7%

Regions Financial Corporation

5.2%

Marshall & Ilsley Corporation

3.9%

Huntington Bancshares Incorporated

5.2%

Bank of America Corporation

4.4%

SunTrust Banks, Inc.

5.3%

JPMorgan Chase & Co.

4.4%

Marshall & Ilsley Corporation

5.6%

Citigroup Inc.

4.6%

Zions Bancorporation

6.4%

Capital One Financial Corporation

6.1%

Capital One Financial Corporation

N/A

Top U.S. Bank Average

3.1%

Top U.S. Bank Average

4.2%

Portfolio performance drivers

Performance Largely Driven By

No Participation In

Discontinued or Suspended Lending

Residential construction-related consumer mortgages intended to be held in portfolio until permanent financing complete. Jumbo mortgage originations currently

being held due to market conditions.

Geography

•

Florida and Michigan most stressed

•

Remaining Midwest and Southeast performance

reflect economic trends

Products

•

Homebuilder/developer

charge-offs

$81

million

1Q10

–

Total

charge-off

ratio

3.0%

(2.4%

ex-HBs)

–

Commercial

charge-off

ratio

3.1%

(2.6%

ex-

HBs)

•

Brokered

home

equity

charge-offs

6.2%

1Q10

–

Direct home equity portfolio 1.6%

1Q10 NCO Ratios

Coml

Cons

Total

FL/MI

5.5%

5.2%

5.3%

Other

2.3%

2.1%

2.2%

•

Subprime

•

Option ARMs

Discontinued in 2007

•

Brokered home equity ($1.9B)

Suspended in 2008

•

Homebuilder/residential development ($1.3B)

•

Other non-owner occupied commercial RE

excluding homebuilder/developer ($8.0B)

Saleability

•

All mortgages originated for intended sale*

Total

3.1%

2.9%

3.0%

Credit by portfolio*

Net charge-offs by loan type

Net charge-offs by geography

*NPAs

exclude loans held-for-sale.

Ratios in above tables are subject to rounding.

($ in millions)

C&I

Commercial

mortgage

Commercial

construction

Commercial

lease

Total

commercial

Residential

mortgage

Home equity

Auto

Credit card

Other

consumer

Total

consumer

Total loans &

leases

Loan balances

$26,131

$11,744

$3,277

$3,388

$44,541

$7,918

$12,186

$10,180

$1,863

$736

$32,882

$77,423

% of total

34%

15%

58%

10%

16%

13%

42%

NPAs

$788

$1,002

$569

$55

$2,414

$521

$70

$22

$101

$715

$3,129

NPA / Loans + OREO

3.01%

8.43%

16.95%

1.62%

5.39%

6.48%

0.57%

0.22%

5.45%

0.12%

2.16%

4.02%

Net charge-offs

$161

$99

$78

$342

$88

$73

$31

$44

$240

$582

Net charge-off ratio

2.49%

3.42%

8.57%

0.44%

3.07%

4.46%

2.38%

1.27%

9.23%

2.07%

2.93%

3.01%

Non-performing assets and net charge-offs:

Product view*

* NPAs

exclude loans held-for-sale. Net charge-offs exclude losses on loans sold or transferred to held-for-sale in 4Q08.

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

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

Total NPAs

Total NCOs

Total NPAs

Total NCOs

* NPAs

exclude loans held-for-sale. Net charge-offs exclude losses on loans sold or transferred to held-for-sale in 4Q08.

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

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

Non-performing assets and net charge-offs:

Geographic view*

Nonperforming assets*

•

Total NPAs

of $3.1B

•

Homebuilder/developer

NPAs

$520M;

represent 17% of total NPAs

•

Commercial NPAs

of $2.4B; down 5% from

the previous quarter

•

Consumer NPAs

of $715M; up 1% from the

previous quarter

C&I^ (27%)

CRE (50%)

Residential (19%)

Other Consumer (4%)

Residential

$590M

19%

C&I^

$843M

27%

Other

$96M

CRE

$1.6B

50%

^ C&I includes commercial lease

ILLINOIS

INDIANA

FLORIDA

TENNESSEE

KENTUCKY

OHIO

MICHIGAN

NORTH

CAROLINA

OTHER /

NATIONAL

* NPAs

exclude loans held-for-sale.

Improving nonperforming loan flows

Commercial

millions)

Beginning NPL amount

$1,406

$1,937

$2,110

$2,430

$2,392

New nonaccrual loans

799

544

832

602

405

Paydowns, transfers, and sales

(157)

(190)

(246)

(332)

(425)

Charge-offs

(111)

(181)

(266)

(308)

(200)

Ending Commercial NPL

$1,937

$2,110

$2,430

$2,392

$2,172

Consumer

Beginning NPL amount

$457

$459

$477

$517

$555

New nonaccrual loans

157

125

160

152

137

Net other activity

(155)

(107)

(120)

(114)

(131)

Ending Consumer NPL

$459

$477

$517

$555

$561

Total

Total NPL

$2,396

$2,587

$2,947

$2,733

Total new nonaccrual loans

$956

$669

$992

$754

$542

$2,396

$2,587

$2,947

$2,733

NPL rollforward

1Q09

2Q09

3Q09

4Q09

1Q10

Total NPLs

New non-accrual loan flows

1,937

2,110

2,430

2,392

2,172

459

477

517

555

561

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1Q09

2Q09

3Q09

4Q09

1Q10

Commercial

Consumer

$2,947

$799

$544

$832

$602

$405

$157

$125

$160

$152

$137

$200

$400

$600

$800

$1,000

1Q09

2Q09

3Q09

4Q09

1Q10

Total

Commercial

Consumer

Troubled debt restructurings (TDR) overview

Successive improvement in vintage performance during 2008 and

2009, even as volume of modification increased

Fifth Third’s mortgage portfolio TDRs

have redefaulted

at a lower

rate than other bank held portfolio modifications

—

Fifth Third’s TDRs

are about a third less likely to redefault

than modifications on GSE mortgages

Of $1.8B in consumer TDRs, over $1.3B (76%) are current

—

$940M of those have been current more than 6 months,

approximately half of which have been current more than a

year

As current TDRs

season, their default propensity declines

significantly

—

We do not typically see significant defaults on current loans

once a vintage approaches 12 months since modification

Delinquent TDRs

total $415M (24%)

Of $1.8B in consumer TDRs, $1.5B are on accrual status and $271M

are nonaccruals

TDR performance has improved in newer vintages

Outperforming redefault

benchmarks

Source: Fifth Third and OCC/OTS data; data through 3Q09; industry data cumulative through 3Q09

Mortgage

TDR

60+

redefault

trend

vintage

1Q08 $69M

2Q08 $135M

3Q08 $146M

4Q08 $176M

1Q09 $221M

2Q09 $257M

Months since modification

Mortgage

TDR

60+

redefault

rate:

Fifth

Third

comparison

(through Sept. 2009)

Fannie Mae

Industry

portfolio loans

Fifth Third

Volume by

vintage

Freddie Mac

3Q09 $386M

Current consumer TDRs

($ MMs)

10%

20%

30%

40%

50%

10%

20%

30%

40%

50%

60%

70%

3 months

6 months

9 months

12 months

448

617

416

208

<6 months

6-12 months

12-18 months

18-24 months

24+ months

Commercial & industrial*

Loans by geography

Credit trends

Loans by industry

Comments

•

32%

of 1Q10 losses on loans to companies in real estate

related industries

–

Loans to real estate related industries of $3.2B; 1Q10

NCO ratio of 6.6%

–

1Q10 C&I loss rate of 2.5%, excluding loans to real

estate related industries, 1.9%

•

FL represented 16% of 1Q10 losses, 7% of loans; MI

represented 27% of losses, 15% of loans

* NPAs

exclude loans held-for-sale.

($ in millions)

1Q09

2Q09

3Q09

4Q09

1Q10

Balance

$28,617

$28,409

$26,175

$25,683

$26,131

90+ days delinquent

$131

$142

$256

$118

$63

as % of loans

0.46%

0.50%

0.98%

0.46%

0.24%

NPAs

$675

$634

$790

$781

$788

as % of loans

2.36%

2.23%

3.02%

3.04%

3.02%

Net charge-offs

$103

$177

$256

$183

$162

as % of loans

1.45%

2.53%

3.70%

2.81%

2.49%

C&I

Commercial mortgage*

Loans by geography

Credit trends

Loans by industry

Comments

•

Owner occupied 1Q10 NCO ratio of 2.1%, other non-owner

occupied 1Q10 NCO ratio of 4.5%

•

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

and MI) through portfolio actions

•

Loans from FL/MI represented 40% of total loans, 53% of total

losses in 1Q10

($ in millions)

1Q09

2Q09

3Q09

4Q09

1Q10

Balance

$12,560

$12,407

$12,105

$11,803

$11,744

90+ days delinquent

$124

$131

$184

$59

$44

as % of loans

0.99%

1.06%

1.52%

0.50%

0.38%

NPAs

$718

$791

$968

$985

$1,002

as % of loans

5.72%

6.37%

8.00%

8.34%

8.53%

Net charge-offs

$77

$85

$118

$142

$99

as % of loans

2.50%

2.73%

3.82%

4.69%

3.42%

Commercial mortgage

* NPAs

exclude loans held-for-sale.

Commercial construction*

Accomodation

Auto Retailers

Finance &

insurance

Construction

33%

Manufacturing

Real estate

49%

Retail Trade

Other

11%

Wholesale

Trade

Loans by geography

Credit trends

Loans by industry

Comments

•

Owner

occupied

1Q10

NCO

ratio

4.6%,

other

non-owner

occupied 1Q10 NCO ratio of 9.7%

•

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

and MI) through portfolio actions

•

Loans

from

FL/MI

represented

29%

total

loans,

40%

total

losses in 1Q10

($ in millions)

1Q09

2Q09

3Q09

4Q09

1Q10

Balance

$4,745

$4,491

$4,147

$3,784

$3,277

90+ days delinquent

$49

$60

$168

$16

as % of loans

1.02%

1.34%

4.04%

0.44%

0.28%

NPAs

$597

$735

$751

$707

$569

as % of loans

12.59%

16.36%

18.11%

18.68%

17.36%

Net charge-offs

$76

$79

$126

$135

$78

as % of loans

6.21%

6.76%

11.56%

13.28%

8.57%

Commercial construction

* NPAs

exclude loans held-for-sale.

11%

32%

18%

10%

Other

Homebuilders/developers*

Loans by geography

Credit trends

Loans by industry

Comments

•

Currently making no new loans to builder/developer sector

•

Residential & land valuations under continued stress

•

3% of commercial loans; 2% of total loans

•

Balance by product approximately 39% Construction,

47% Mortgage, 14% C&I

17%

23%

15%

Other

22%

C&I

14%

Commercial

construction

39%

Commercial

mortgage

47%

($ in millions)

1Q09

2Q09

3Q09

4Q09

1Q10

Balance

$2,322

$2,102

$1,846

$1,563

$1,324

90+ days delinquent

$37

$53

$79

$19

as % of loans

1.59%

2.51%

4.29%

1.19%

0.43%

NPAs

$554

$613

$600

$548

$520

as % of loans

23.87%

29.14%

32.51%

35.09%

39.28%

Net charge-offs

$64

$76

$108

$110

$81

as % of loans

10.73%

14.06%

21.92%

26.25%

22.89%

Homebuilders/developers

* NPAs

exclude loans held-for-sale.

Residential mortgage

1 liens: 100% ; weighted average LTV: 78%

Weighted average origination FICO: 724

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

12%; 720-749 14%; 750+ 31%; Other

24%

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

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

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

Vintage distribution: 2010 2%;

2009 6%; 2008 13%; 2007 16%;

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

% through broker: 13%; performance similar to direct

Loans by geography

Credit trends

Portfolio details

Comments

FL portfolio 28% of loans driving 53% of total losses

FL lots ($260M) running at 29%

annualized loss rate (YTD)

Mortgage company originations targeting 95% salability

^ Includes acquired loans where FICO at origination is not available

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

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

this reclassification.

($ in millions)

1Q09

2Q09

3Q09

4Q09

1Q10

Balance

$8,875

$8,489

$8,229

$8,035

$7,918

90+ days delinquent

$231

$242

$198

$189

$157

as % of loans

2.60%

2.85%

2.41%

2.35%

1.98%

NPAs

$475

$484

$523

$521

as % of loans

5.35%

5.59%

5.89%

6.51%

6.57%

Net charge-offs

$75

$112

$92

$78

$88

as % of loans

3.27%

5.17%

4.38%

3.82%

4.46%

Residential mortgage

Home equity

liens:

29%;

liens:

71%

Weighted average origination FICO: 757

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

17%; 750+ 49%; Other 10%

Average CLTV: 75%

Origination CLTV distribution: <=70 43%; 70.1-80 23%;

80.1-90 17%; 90.1-95 6%; >95 10%

Vintage

distribution:

2010

1%;

2009

5%;

2008

11%;

2007

12%;

2006

16%;

2005 15%; 2004 and prior 41%

% through broker channels: 16% WA FICO: 739 brokered, 760 direct; WA

CLTV: 90% brokered; 73% direct

Portfolio details

Comments

Brokered loans by geography

Direct loans by geography

Credit trends

Approximately 16% of portfolio in broker product driving approximately 40%

total loss

Approximately

one

third

Fifth

Third

liens

are

behind

Fifth

Third

liens

Sequential improvement generally due to lower losses in FL

2005/2006 vintages represent 31% of portfolio; account for 56% of losses

Aggressive home equity line management strategies in place

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

^ Includes acquired loans where FICO at origination is not available

21%

33%

13%

Other

21%

25%

10%

11%

Other

20%

($ in millions)

1Q09

2Q09

3Q09

4Q09

1Q10

Balance

$2,225

$2,125

$2,028

$1,948

$1,906

90+ days delinquent

$42

$34

$38

$33

$29

as % of loans

1.91%

1.58%

1.87%

1.72%

1.53%

Net charge-offs

$30

$39

$30

$34

$30

as % of loans

5.46%

7.41%

5.96%

7.02%

6.31%

Home equity - brokered

($ in millions)

1Q09

2Q09

3Q09

4Q09

1Q10

Balance

$10,486

$10,386

$10,349

$10,226

$10,280

90+ days delinquent

$61

$63

$66

$65

$60

as % of loans

0.59%

0.61%

0.64%

0.58%

Net charge-offs

$42

$49

$48

$43

as % of loans

1.62%

1.91%

1.89%

1.85%

1.65%

Home equity - direct

Florida market*

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

Homebuilders, developers tied to

weakening real estate market

Losses due to significant declines in

valuations

Valuations; relatively small home

equity portfolio

COML

MORTGAGE

C&I

RESI

MORTGAGE

OTHER

CONS

COML

CONST

COML

LEASE

HOME

EQUITY

AUTO

CREDIT

CARD

Total Loans

NPAs

NCOs

* NPAs

exclude loans held-for-sale.

($ in millions)

Loans (bn)

% of

FITB

NPAs (mm)

% of

FITB

NCOs

(mm)

% of

FITB

Commercial loans

1.7

128

16%

Commercial mortgage

1.5

13%

295

29%

20%

Commercial construction

0.6

18%

174

31%

21%

Commercial lease

0.0

Commercial

3.9

599

25%

18%

Mortgage

2.2

28%

271

52%

53%

Home equity

1.0

15%

Auto

0.5

12%

Credit card

0.1

12%

Other consumer

0.0

22%

Consumer

3.8

12%

286

40%

28%

Total

7.7

10%

885

28%

130

22%

Michigan market*

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

Homebuilders, developers tied to

weak real estate market

Negative impact from housing

valuations, economy,

unemployment

Economic weakness impacts

commercial real estate market

COML

MORTGAGE

C&I

RESI

MORTGAGE

OTHER

CONS

COML

CONST

COML

LEASE

HOME

EQUITY

AUTO

CREDIT

CARD

Total Loans

NPAs

NCOs

* NPAs

exclude loans held-for-sale.

($ in millions)

Loans (bn)

% of

FITB

NPAs (mm)

% of

FITB

NCOs

(mm)

% of

FITB

Commercial loans

3.9

15%

143

18%

27%

Commercial mortgage

3.2

27%

218

22%

33%

Commercial construction

0.4

11%

19%

Commercial lease

0.2

16%

Commercial

7.7

17%

421

17%

27%

Mortgage

1.1

14%

10%

15%

Home equity

2.6

21%

32%

28%

Auto

1.0

10%

16%

11%

Credit card

0.3

16%

22%

19%

Other consumer

0.1

10%

11%

13%

Consumer

5.1

16%

100

14%

19%

Total

12.8

16%

521

17%

140

24%

Deposit share momentum

Source: FDIC, SNL Financial; branches included are full service retail / brick and mortar; data excludes headquarters branches with over $250 million in deposits.

•

Continued focus on

customer satisfaction

and building full

relationships has

given strong

momentum to the

retail network

•

Fifth Third grew

deposits in 15 of 16

affiliate markets in

2009

–

Modest attrition in

North Carolina

acquisition market

•

Fifth Third grew

deposit market share

in 75% of affiliate

markets in 2009

Affiliate

5/3 Deposit

(08-09)

5/3 Market Share

Name

Deposit

($)

(%)

2009

2008

Chicago

788,601

9.8%

4.0%

3.8%

Northeastern Ohio

606,708

17.0%

4.2%

3.8%

South Florida

579,342

21.1%

3.1%

2.8%

Eastern Michigan

418,525

11.9%

5.4%

5.0%

Central Florida

338,091

28.9%

3.0%

2.5%

Tampa

334,080

24.5%

3.5%

3.1%

Central Ohio

213,971

5.6%

11.1%

11.2%

Cincinnati

212,656

2.2%

21.5%

21.9%

Southern Indiana

195,169

8.6%

4.1%

4.0%

Louisville

194,593

13.0%

8.9%

8.2%

Northwestern Ohio

177,122

7.5%

16.2%

15.4%

Western Michigan

149,252

2.1%

18.4%

Tennessee

142,615

12.8%

3.5%

3.3%

Central Indiana

139,354

4.7%

8.4%

8.3%

Central Kentucky

2,608

0.3%

8.1%

8.7%

North Carolina

(113,631)

-4.4%

4.8%

5.3%

Liability mix and pricing discipline drive

strong net interest income/NIM results

•

Strong, deposit rich core funding mix

supports relatively low cost of funds

–

Low reliance on wholesale funding

•

Continued pricing discipline on

commercial loans, consistent with market

trends toward better risk-adjusted spreads

–

C&I spreads over 1-month LIBOR

have increased more than 150 bps in

the past two years

Source: SNL and company reports. 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 defined as DDA, NOW and Savings/MMDA accounts.

Avg. Transaction Deposits / Avg. Liabilities

C&I Spread to 1-month LIBOR

1Q10 Cost of Funds Peer Comparison

Peer average 1.08%

Peer average 57%

Cautionary statement

This

report

may

contain

statements

that

believe

are

“forward-looking

statements”

within

the

meaning

Section

27A

the

Securities

Act

1933,

amended,

and

Rule

175

promulgated

thereunder,

and

Section

21E

the

Securities

Exchange

Act

1934,

amended,

and

Rule

3b-6

promulgated

thereunder.

These

statements

relate

our

financial

condition,

results

operations,

plans,

objectives,

future

performance

business.

They

usually

can

identified

the

use

forward-looking

language

such

“will

likely

result,”

“may,”

“are

expected

to,”

“is

anticipated,”

“estimate,”

“forecast,”

“projected,”

“intends

to,”

may

include

other

similar

words

phrases

such

“believes,”

“plans,”

“trend,”

“objective,”

“continue,”

“remain,”

similar

expressions,

future

conditional

verbs

such

“will,”

“would,”

“should,”

“could,”

“might,”

“can,”

similar

verbs.

You

should

not

place

undue

reliance

these

statements,

they

are

subject

risks

and

uncertainties,

including

but

not

limited

the

risk

factors

set

forth

our

most

recent

Annual

Report

Form

10-K

and

our

most

recent

quarterly

report

Form

10-Q.

When

considering

these

forward-looking

statements,

you

should

keep

mind

these

risks

and

uncertainties,

well

any

cautionary

statements

may

make.

Moreover,

you

should

treat

these

statements

speaking

only

the

date

they

are

made

and

based

only

information

then

actually

known

us.

There

are

number

important

factors

that

could

cause

future

results

differ

materially

from

historical

performance

and

these

forward-

looking

statements.

Factors

that

might

cause

such

difference

include,

but

are

not

limited

to:

(1)

general

economic

conditions

and

weakening

the

economy,

specifically

the

real

estate

market,

either

nationally

the

states

which

Fifth

Third,

one

acquired

entities

and/or

the

combined

company

business,

are

less

favorable

than

expected;

(2)

deteriorating

credit

quality;

(3)

political

developments,

wars

other

hostilities

may

disrupt

increase

volatility

securities

markets

other

economic

conditions;

(4)

changes

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

maintain

required

capital

levels

and

adequate

sources

funding

and

liquidity;

(7)

maintaining

capital

requirements

may

limit

Fifth

Third’s

operations

and

potential

growth;

(8)

changes

and

trends

capital

markets;

(9)

problems

encountered

larger

similar

financial

institutions

may

adversely

affect

the

banking

industry

and/or

Fifth

Third

(10)

competitive

pressures

among

depository

institutions

increase

significantly;

(11)

effects

critical

accounting

policies

and

judgments;

(12)

changes

accounting

policies

procedures

may

required

the

Financial

Accounting

Standards

Board

(FASB)

other

regulatory

agencies;

(13)

legislative

regulatory

changes

actions,

significant

litigation,

adversely

affect

Fifth

Third,

one

acquired

entities

and/or

the

combined

company

the

businesses

which

Fifth

Third,

one

acquired

entities

and/or

the

combined

company

are

engaged;

(14)

ability

maintain

favorable

ratings

from

rating

agencies;

(15)

fluctuation

Fifth

Third’s

stock

price;

(16)

ability

attract

and

retain

key

personnel;

(17)

ability

receive

dividends

from

its

subsidiaries;

(18)

potentially

dilutive

effect

future

acquisitions

current

shareholders’

ownership

Fifth

Third;

(19)

effects

accounting

financial

results

one

acquired

entities;

(20)

difficulties

separating

Fifth

Third

Processing

Solutions

from

Fifth

Third;

(21)

loss

income

from

any

sale

potential

sale

businesses

that

could

have

adverse

effect

Fifth

Third’s

earnings

and

future

growth;

(22)

ability

secure

confidential

information

through

the

use

computer

systems

and

telecommunications

networks;

and

(23)

the

impact

reputational

risk

created

these

developments

such

matters

business

generation

and

retention,

funding

and

liquidity.

You

should

refer

our

periodic

and

current

reports

filed

with

the

Securities

and

Exchange

Commission,

“SEC,”

for

further

information

other

factors,

which

could

cause

actual

results

significantly

different

from

those

expressed

implied

these

forward-looking

statements.

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