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

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8-K - 8-K - FIFTH THIRD BANCORP	d296442d8k.htm

Exhibit 99.1

Credit Suisse

Financial Services Forum

Kevin T. Kabat

President & Chief Executive Officer

February 8, 2012

Please refer to earnings release dated January 20, 2012 for further information

Well-positioned for success and leadership in new banking landscape

Key themes

Strong levels of

profitability

Broad-based

credit

improvements

Exceed fully

phased

-in Basel

III capital

standards today

All crisis-era

government

support

programs exited;

no TLGP

No significant

business at Fifth

Third impaired

by crisis

Disciplined

expense control

Traditional

banking focus

consistent with

direction of

financial reform

Continued

investments to

maintain and

enhance

revenue-

generation

Environment characterized by low growth

expectations and low interest rates

Prolonged low-rate environment, coupled

with modest economic growth (possibly

strengthening)

Lower securities reinvestment yields on

portfolio cash flows

Strong deposit flows

Competitive dynamics

Elevated mortgage refinance activity

Firms facing significant litigation related to:

—

Mortgage securitizations

—

GSE repurchases

—

Private label mortgage repurchases

Concerns about European banks and

sovereign debt

Higher capital standards; limitations on

dividend payout ratios; some uncertainty

regarding near-term overall capital

distributions

Continued strong loan production

—

Rates on loan originations relatively stable

Careful management of liability costs

—

Disciplined pricing on deposits

—

Continued

evaluation

term

liabilities

including

CDs and TruPS

Strong mortgage banking results

Mortgage risks manageable

—

Quarterly mortgage repurchase costs

~$20mm; claims inventory declining

—

Total mortgage securitizations outstanding

$22mm (2003 HELOC and performing well)

No direct European sovereign exposure

—

Total exposure to European peripheral*

borrowers <$0.2bn

—

Gross exposure to European banks <$0.2bn

Strong profitability and capital in excess of fully

phased-in Basel III standards today

—

2012 CCAR** plan to increase distributions

* Greece, Ireland, Italy, Portugal, Spain

** Comprehensive Capital Analysis & Review by Federal Reserve; subject to Board of Directors and regulatory approval.

Fifth Third is well-positioned to deal with current environmental challenges

Characteristics of current environment

Fifth Third’s response / position

Net interest income

Balance sheet growth mitigating rate environment

Commercial Loan Growth^ ($bn)

Consumer Loan Growth^ ($bn)

•

Sustained growth in commercial loans driven by C&I

–

Manufacturing has been significant driver of C&I

growth

–

Growth is geographically diverse

•

CRE portfolio run-off at slowing rate

–

Selective opportunities now providing for modest

current origination volume

NII and NIM (FTE)

($mm)

$920

•

Net interest income and net interest margin results

supported by business and balance sheet mix

–

Significant emphasis on variable rate C&I lending

–

Fixed rate securities only 15% of earning assets

–

High percentage of funding base in noninterest-

bearing DDA and low-cost transaction deposits

•

Modest natural asset sensitivity creates NIM pressure

but we expect to be manageable

–

~50% of earning assets, ~40% of funding variable

in nature

•

Consumer loan growth driven by auto, bankcard and

in-branch mortgage originations

–

Auto volumes strong; spread pressure due to

competition

–

Branch mortgage refi product has FICO over 780,

LTV ~60% and avg. term ~17 years while yielding

above market rates due to convenience

* Represents purchase accounting adjustments included in net interest income.

^ Excluding loans held-for-sale

3.75%

3.71%

3.62%

3.65%

3.67%

$450

$550

$650

$750

$850

$950

2.0%

2.5%

3.0%

3.5%

4.0%

4Q10

1Q11

2Q11

3Q11

4Q11

Net Interest Income (right axis)

PAA*

NIM

$919

$884

$869

$902

42.8

43.4

43.6

43.9

44.6

$41

$42

$43

$44

$45

4Q10

1Q11

2Q11

3Q11

4Q11

33.4

34.2

34.4

34.7

35.3

$32

$33

$34

$35

$36

4Q10

1Q11

2Q11

3Q11

4Q11

37% fee income

(~40% adjusted*)

Diverse revenue base

Deposit fees

Corporate

banking

Investment

advisors

Other

Mortgage

Card & Processing

net

interest

income

Fee income as % of 4Q11 revenue

4Q11 Fee income distribution

Revenue results remain solid, profitability strong despite sluggish economy

* ~40% fee income adjusted for items outlined on page 26.

63%

28%

11%

25%

16%

15%

•

Business mix provides higher than average diversity among spread and fee revenues

—

Current NII lower than normalized levels due to impact of sustained low rate environment

(e.g. low cost deposits including DDAs providing little NII benefit)

•

Near-term effect of changes in deposit and interchange fee rules depressing current non-interest

income levels

—

Negative impact from debit interchange legislation and Reg E in run-rates

—

Initial impact of debit interchange legislation (~$30 million per quarter) expected to be

mitigated over time (~2/3 by 3Q12); will implement carefully and deliberately

Customer oriented solutions

•

Broad

suite

product

offerings

with

distinct

value

propositions

appeal

various

customer

segments

•

Implementation of new products, like DUO Card, Real Life Rewards, Relationship Savings

–

DUO Card introduced in 3Q11

–

Customer chooses to pay debit or credit at the point of sale

•

Letting customers choose how to pay for products and services they use

Providing customers with products and services they find valuable

•

Reduce costs associated with debit card offerings

•

Changes and eliminations of reward programs

•

Incorporation of debit usage into bundled deposit product offerings

•

Adjustment of product and fee structures relative to services provided

•

Charge card alternatives

•

Implementation of new products

•

In-depth discussions with customers to determine what matters most to them

•

Actively seeking input and feedback from customer base and prospective customers

•

Working

carefully

ensure

align

value

the

customer

with

value

Listening to the voice of our customers

Deliberate and multi-pronged approach to mitigation of regulatory / legislative impacts

Significant purchase

accounting benefit

Disciplined expense control

Adjusted efficiency ratio*^

Peer average: 65%

Sales / support ratio**

Efficient

business

model:

•

Efficiency ratio better than most peers through weak

economic environment

–

Reflects below-capacity balance sheet and lower

revenue than we expect and can support longer

term

–

Current impact of credit costs on revenue and

expenses; initial impact of regulatory reforms

(e.g., debit interchange)

Disciplined

expense

management:

•

Expenses being managed carefully in response to

revenue environment

–

Relatively flat year-over-year and over past

several years

–

Continuous process of expense evaluation at 5/3

Investments

provide

for

future

growth:

•

Sales to support ratio has increased through

careful management of back office and front

office staff

Adjusted noninterest expense trend*** ($mm)

(Flat YoY)

* Source: Company reports. Data as of FY11. Efficiency ratio calculated as reported noninterest expense / (net interest income (fully taxable equivalent)+ noninterest income) adjusted for one-time items for comparison

purposes to peers. See page 26 for list of adjustments. 4Q11 actual efficiency ratio 68%; 4Q11 actual noninterest expense $993mm (flat YoY); 4Q11 actual revenue $1,470mm.

** Sales / support ratio calculated as Sales Headcount (full-time equivalent) / Support Headcount (full-time equivalent)

*** Noninterest expense adjusted for one-time items (4Q11 actual noninterest expense $993mm (flat YoY)). See page 26 for list of adjustments.

^ Non-GAAP measure. See Reg. G reconciliation in the Appendix to the presentation.

52%

60%

61%

62%

64%

65%

68%

69%

70%

72%

$970

$920

$907

$914

$979

Managing expenses for current revenue environment and long-term franchise value

Strong relative credit trends

FITB credit metrics are in line with or better than peers

NPA ratio vs. peers

Net charge-off ratio vs. peers

Loans 90+ days delinquent % vs. peers

Loans 30-89 days delinquent % vs. peers

(7.5%)*

(HFS transfer)

3.8%

Before credit

actions

5.0%*

2.3%

Before credit

actions

Peer average includes: BBT, CMA, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC, and ZION

Source: SNL Financial and company filings. All ratios exclude loans held-for-sale and covered assets for peers where appropriate.

* 4Q08 NCOs included $800mm in NCOs related to commercial loans moved to held-for-sale; 3Q10 NCOs included $510mm in NCOs related to loans sold or moved to held-for-sale

Strong credit coverage levels

Source: SNL Financial and company reports. Data as of 4Q11. HFI NPAs and NPLs exclude loans held-for-sale and also exclude covered assets for BBT, USB, and ZION

* Non-GAAP measure. See Reg. G reconciliation on pages in the Appendix to the presentation.

Reserves, pre-provision profits and capital levels significant in relation to problem assets

Reserves / NPLs

Peer average: 123%

“Texas Ratio”

(HFI NPAs + Over 90s) / (Reserves + TCE)*

Peer average: 19%

Reserves / Loans

Peer average: 2.3%

•

Reserves remain significantly higher than

pre-crisis levels

•

Strong reserve coverage ratios of problem

assets and net charge-offs

•

PPNR levels and profitability provides Fifth

Third with strong ongoing loss absorption

capacity

Exceed

fully

phased-in

Basel

III

capital

standards

today

Fifth Third’s capital position already well in excess of established standards, likely standards, and most peers

(Tier 1 common + reserves) / RWA**

(not

adjusted

for

Basel

III)

Peers* not in order of graph at left; estimated

(Tier 1 common + reserves) / RWA**

(adjusted

for

Basel

III)

Note: Estimates based on current Basel III rules released by the Basel Committee; actual

rules subject to U.S. banking regulation. Assumes unrealized securities gains included in

Tier 1 common. Not adjusted for potential mitigation efforts. Four large peers include

estimated Basel III RWA impact based on BIS proposals.

Tier 1 common (peers)

Tier 1 common (FITB)

Reserves

Tier 1 common (peers)

Tier 1 common (FITB)

Source: SNL Financial, company filings, and third-party estimates. Regulatory financial data as of 4Q11. MTB, PNC, and ZION as of 3Q11.

* Peers

include

BAC,

BBT,

CMA,

COF,

HBAN,

JPM,

KEY,

MTB,

PNC,

RF,

STI,

USB,

WFC,

ZION

** Non-GAAP measure. See Reg. G reconciliation on pages in the Appendix to the presentation.

Capital management philosophy

* Subject to Board of Directors and regulatory approval

** Comprehensive Capital Analysis & Review by Federal Reserve

Organic growth opportunities

•

Support growth of core banking franchise

•

Continued loan growth despite sluggish

economy

Return to more normal dividend policy

•

Strong levels of profitability would support

higher dividend than current level

•

Move towards levels more consistent with

Fed’s near-term payout ratio guidance of 30%

Strategic opportunities

•

Prudently expand franchise or increase

density in core markets via disciplined

acquisitions or selective de novos

•

Expect future acquisition activity although

less likely in near-term

•

Attain top 3 market position in 65% of

markets or more longer term

Repurchases / Redemptions

•

Initiate common share repurchases to manage

growing excess capital levels; retain amount of

common equity to accommodate asset growth

•

Potential redemption of certain TruPS included

in 1Q12 CCAR

submission

–

Will evaluate in context of regulatory

developments and desired capital structure

given continued changes in regulations

Strong internal capital generation; current long-term Tier 1 common equity target of ~8%

Manage common equity in light of regulatory

environment, other alternatives, maintenance

of desired / required buffers, and stock price

–

Strong returns drive capital generation

* 4Q11 annualized. RF adjusted to exclude 4Q11 goodwill impairment expense.

^Non-GAAP measure. See Reg. G reconciliation on pages in the Appendix to the presentation.

Price as of 2/2/12

Well above average profitability and capital generation, well below average valuation

Price / Tangible Book Value

Peer average: 135%

Peer average: 10%

Significant purchase

accounting benefit

Peer average: 0.85%

Price / Earnings*

Peer average: 14.3

Significant purchase

accounting benefit

Return on Average Tangible Common Equity

Return on Average Assets

Well-positioned for the future

•

Holding company cash currently sufficient for more than 2 years of obligations; minimal holding company or Bank

debt maturities until 2013

•

Fifth Third has completely exited all crisis-era government support programs

Superior capital and liquidity position

•

NCOs of 1.2%; 2.4x reserves / annualized NCOs

•

Substantial reduction in exposure to CRE since 1Q09; relatively low CRE exposure versus peers

•

Very low relative exposure to areas of concern, e.g. European financials, mortgage repurchase risk

Proactive approach to risk management

•

Traditional commercial banking franchise built on customer-oriented localized operating model

•

Strong market share in key markets with focus on further improving density

•

Fee income ~40% of total revenues

Diversified traditional banking platform

•

PPNR has remained strong throughout the credit cycle

•

PPNR substantially exceeds annual net charge-offs (198% PPNR / NCOs^ in 4Q11)

•

1.1% ROAA; 12% return on average tangible common equity^

Industry leader in earnings power

^ Non-GAAP

measure.

See

Reg.

reconciliation

the

Appendix

the

presentation.

–

Fifth Third is one of the few large banks that have no TLGP-guaranteed debt to refinance in 2012

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 in separating Vantiv, LLC, formerly Fifth Third Processing

Solutions from Fifth Third; (21) loss of income from any sale or potential sale of businesses that could have an adverse effect on Fifth

Third’s earnings and future growth; (22) ability to secure confidential information through the use of computer systems and

telecommunications networks; and (23) the impact of reputational risk created by these developments on such matters as business

generation and retention, funding and liquidity.

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information

on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking

statements.

Appendix

Traditional banking focus

consistent with direction of financial reform

Business

profile

positions

Fifth

Third

well

–

today

and

the

future

•

Do not require substantial changes to Fifth Third’s business model or asset mix with

attendant execution risk

•

Fifth Third’s business model is driven by traditional banking activities, consistent with direction of financial reform

Dodd-Frank /

Basel III

•

International activity primarily related to trade finance and lending to U.S. subsidiaries of

foreign companies (e.g. Fifth Third loss in Lehman bankruptcy expected to be less than

$2mm)

Financial system

interconnectedness

•

Little to no impact (de minimis market maker in derivatives, proprietary trading)

–

Low trading business activity; daily VaR ~$1mm or less

–

Small private equity portfolio <$200mm

Volcker rule

•

Other large firms facing significant litigation related to mortgage securitizations, GSE

repurchases, and private label mortgage repurchases

•

Fifth Third’s mortgage risks are manageable

–

Quarterly mortgage repurchase costs ~$20mm and claims inventory declining

–

Total

mortgage securitizations outstanding $22mm (2003 HELOC) and performing well

Mortgage Putback /

Litigation risk

–

No originations of CDOs, securitizations on behalf of others

–

Didn’t originate or sell subprime mortgages or Option ARMs

Effect of crisis on

core business

–

Total exposure to European peripheral borrowers (Greece, Ireland, Italy, Portugal,

Spain) less than $200mm

–

Gross exposure to European banks less than $200mm

European banks and

sovereign debt

exposure

•

No direct European sovereign exposure

•

No significant business at Fifth Third impaired during crisis

A foundation of continued robust results

Capital

–

exceeds required and targeted levels

—

Tier

common*

capital

~500bps

$4.9bn

from

4Q08

—

Capital base transformed through series of capital actions

–

~9.7% pro forma

Tier 1 common ratio* on a fully-phased in

Basel III-adjusted basis

—

Capital levels supplemented by strong reserve levels

–

Loan loss reserves 2.78% of loans and 157% of NPLs

Credit

–

ongoing steady improvement

—

Broad-based improvements in problem loans

–

80% reduction in 90+ day delinquent loans since 3Q09

–

NCO ratio of 1.19%, lowest NCO level since 4Q07

–

198% PPNR / NCOs*

—

Balance sheet risk lowered through asset sales, resolutions

–

$1.5bn (51%) decline in NPLs since 4Q09

Profitability

–

strong relative and absolute results

—

PPNR* remained stable throughout cycle

—

7 consecutive profitable quarters

—

Return on assets 1.1%

—

Return

average

tangible

common

equity*

12%

* Non-GAAP measure; see Reg. G reconciliation in the Appendix to the presentation.

Current estimate (non-GAAP), subject to final rule-making and clarification by U.S. banking

regulators; currently assumes unrealized securities gains are included in common equity for

purposes of this calculation

Nonperforming

loans

and

leases

percent

portfolio

loans,

leases

and

other

assets,

including other real estate owned (does not include nonaccrual loans held-for-sale)

Excluding $510mm net charge-offs attributable to credit actions

Tier 1 common ratio (%)*

NPL / Loans

(%)

PPNR / Net charge-offs (%)*

Return on assets (%)

Diverse business mix

Branch Banking

Consumer Lending

Commercial Banking

Investment Advisors

•

Professionals committed to

understanding customers’

unique needs, providing

options and identifying the

right solution

•

Top 5 market share within

the non-captive prime auto

lending space

•

Top 13

mortgage

origination share

•

$1.0bn total revenue

•

Holistic approach to branch

banking combined with

mobile convenience to

improve the banking

experience and be the

trusted financial partner for

our customers

•

1,316 full-service banking

centers

•

2,425 full-service ATMs

•

$2.3bn total revenue

•

Comprehensive product and

service offering including

commercial lending,

treasury management, and

capital markets

•

Innovative products,

advancements in

technology, and exceptional

customer service

•

$2.0bn total revenue

•

Provide financial insight, a

wide array of leading-edge

products and services, and

a professional team to

help develop a strategy for

clients’

financial success

•

$485mm total revenue

•

$24bn assets under

management

•

$282bn assets under care

•

49% interest in Vantiv, LLC, formerly Fifth Third Processing Solutions, LLC

Available and contingent borrowing capacity (4Q11):

–

FHLB ~$9B

–

Federal Reserve ~$22B

Holding Company cash at 12/31/11: $2.6B

Cash currently sufficient to satisfy all fixed obligations

for more than 2 years (debt maturities, common and

preferred dividends, interest and other expenses)

without accessing capital markets; relying on dividends

from subsidiaries; proceeds from asset sales

Expected cash obligations over the next 12 months

—

~$368mm common dividends

—

~$35mm Series G preferred dividends

—

~$419mm interest and other expenses

Holding company unsecured debt maturities ($mm)

Bank

unsecured

debt

maturities

($mm

–

excl.

Brokered

CDs)

Heavily core funded

Strong liquidity profile

S-T

wholesale

3,749

C&I/Total Loans*^

NIM

•

NIM supported by balance sheet and business

mix

–

Heavy emphasis on traditional C&I lending,

much of which is variable

•

Pricing discipline on commercial loans

–

Spreads have narrowed from post-crisis

levels but remain attractive

–

Loan origination rates have stabilized the

past several months

Relatively strong NIM results

due to balance sheet and business mix

Source: SNL Financial and company filings. All data as of 4Q11.

*ZION & BBT exclude government guaranteed loans; ZION presented as end of period data.

^Presented on an average basis; Excluding held-for-sale loans.

C&I Spread to 1-month LIBOR

Peer average: 34%

Peer average: 3.55%

Core funded balance sheet and pricing discipline

•

Strong, deposit-rich core funding mix supports

relatively low cost of funds

–

High percentage of funding base in low cost

transaction deposits and noninterest-

bearing DDA accounts

–

Low reliance on wholesale funding

•

Run-off of high cost CDs (particularly from

2H08) benefited NII in 4Q11

SOURCE: SNL Financial and company reports. Data as of 4Q11

Transaction deposits defined as DDA, NOW and Savings/MMDA accounts; Cost of Funds defined as interest incurred on interest-bearing liabilities as a percentage of average noninterest-bearing deposits and interest-

bearing liabilities; Transaction deposits/Total deposits presented on an average basis; DDA/Total deposits presented on end-of-period basis.

Transaction Deposits / Total Deposits

Peer average

81%

Cost of Funds

Peer average

0.65%

DDA/Total Deposits

Peer average

31%

European Exposure

•

International exposure primarily related to trade finance and financing activities of U.S. companies with

foreign parent or overseas activities of U.S. customers

•

No European sovereign exposure (total international sovereign exposure $3mm)

•

Total exposure to European financial institutions <$200mm

•

Total exposure to five peripheral Europe countries <$200mm

•

$875mm in funded exposure to Eurozone-related companies (~1% of total loan portfolio)

Note: Numbers may not sum due to rounding.

Total

Exposure

Funded

Exposure

Total

Exposure

Funded

Exposure

Total

Exposure

Funded

Exposure

Total

Exposure

Funded

Exposure

(amounts in $mms)

Peripheral Europe

136

138

Other Eurozone

111

1,106

751

1,217

804

Total Eurozone

113

1,242

823

1,355

875

Other Europe

801

501

862

532

Total Europe

173

2,043

1,324

2,216

1,407

Sovereigns

Financial Institutions

Non-Financial Entities

Total

Total exposure includes funded and unfunded commitments, net of collateral; funded exposure excludes unfunded exposure

Peripheral Europe includes Greece, Ireland, Italy, Portugal and Spain

Eurozone includes countries participating in the European common currency (Euro)

Other Europe includes European countries not part of the Euro (primarily the United Kingdom and Switzerland)

Data above includes exposure to U.S. subsidiaries of Europe-domiciled companies

Mortgage repurchase overview

22% drop in 4Q11 outstanding claims balance from

prior quarter

—

Increase in file requests by GSEs on current

(performing) loans

Virtually all sold loans and the majority of new claims

relate to agencies

—

98% of outstanding balance of loans sold

—

71%

of current quarter outstanding claims

Majority of outstanding balances of the serviced for

others portfolio relates to origination activity in 2009

and later

Private claims and exposure relate to whole loan sales

(no outstanding first mortgage securitizations)

—

Preponderance of private sales prior to 2006

Repurchase Reserves* ($ in millions)

Outstanding Balance of Sold Loans ($ in millions)

4Q10

1Q11

2Q11

3Q11

4Q11

Beginning balance

103

101

Net reserve additions

Repurchase losses

(23)

(22)

(31)

(17)

Ending balance

101

2005 and prior

GSE

GNMA

Private

Total

$7,214

$287

$530

$8,030

2006

1,668

263

1,990

2007

2,697

228

3,014

2008

2,664

680

0.3

3,344

2009 and later

31,714

9,040

40,755

Total

$45,957

$10,154

$1,022

$57,133

Includes

reps

and

warranty

reserve

($55mm)

and

reserve

for

loans

sold

with

recourse

($17mm)

Outstanding Counterparty Claims ($ in millions)

% Current 25% 40%

42% 49% 42%

Troubled debt restructurings overview

Successive improvement in vintage performance during

2008 and 2009 as volume of modification increased

Fifth Third’s mortgage portfolio TDRs have redefaulted

at a lower rate than GSE composites

Of $1.8B in consumer TDRs, $1.6B were on accrual

status and $220mm were nonaccruals

—

$1.1B of TDRs are current and have been on the

books 6 or more months; within that, nearly

$940mm of TDRs are current and have been on

the books for more than a year

As current TDRs season, their default propensity

declines significantly

—

We see much lower defaults on current loans after

a vintage approaches 12 months since

modification

TDR performance has improved in newer vintages

Source: Fifth Third and OCC/OTS data through 2Q11

$1.3B current consumer TDRs (%)

* Fifth Third data includes changes made to align with OCC/OTS methodology (i.e. excludes government loans, closed loans and OREO from calculations)

Outperforming redefault benchmarks

Mortgage TDR 60+ redefault trend by vintage*

1Q08 3%

2Q08 7%

3Q08 7%

4Q08 8%

1Q09 11%

2Q09 12%

Months since modification

Mortgage TDR 60+ redefault rate: Fifth Third comparison

(January 1, 2008 through September 2011)*

Fannie Mae

Industry

portfolio loans

Fifth Third

Volume by

vintage

Freddie Mac

3Q09 12%

4Q09 7%

2008

2009-

2011

1Q10 7%

2Q10 5%

$1.1

billion

NPL HFI Rollforward

Commercial

4Q10

1Q11

2Q11

3Q11

4Q11

Beginning NPL Amount

1,261

1,214

1,211

1,253

1,155

Transfers to nonperforming

269

329

340

217

190

Transfers to performing

(2)

(10)

(11)

Transfers to performing (restructured)

(1)

Transfers from held for sale

Transfers to held for sale

(16)

(15)

(58)

(3)

Loans sold from portfolio

(9)

(12)

(7)

(17)

(21)

Loan paydowns/payoffs

(111)

(108)

(91)

(77)

(150)

Transfer to other real estate owned

(48)

(37)

(39)

(20)

(14)

Charge-offs

(170)

(164)

(141)

(136)

(113)

Draws/other extensions of credit

Ending Commercial NPL

1,214

1,211

1,253

1,155

1,058

Consumer

4Q10

1Q11

2Q11

3Q11

4Q11

Beginning NPL Amount

323

466

434

386

383

Transfers to nonperforming

365

232

214

201

206

Transfers to performing

(36)

(35)

(34)

(33)

(28)

Transfers to performing (restructured)

(25)

(50)

(41)

(39)

Transfers to held for sale

Loans sold from portfolio

(1)

(21)

Loan paydowns/payoffs

(17)

(18)

(27)

(26)

Transfer to other real estate owned

(20)

(18)

(15)

(16)

(30)

Charge-offs

(130)

(144)

(126)

(91)

(87)

Draws/other extensions of credit

Ending Consumer NPL

466

434

386

383

380

Total NPL

1,680

1,645

1,639

1,538

1,438

Total new nonaccrual loans - HFI

634

561

554

418

396

NPL Rollforward

Significant improvement in NPL inflows over past year

Regulation G Non-GAAP reconciliation

$ in millions

For the Three Months Ended

(unaudited)

December

September

June

March

December

September

June

March

December

2011

2010

2009

Pre-tax Pre-provision Net Revenue:

Income before income taxes (a)

$ 418

$ 530

$ 506

$ 377

$ 417

$ 303

$ 242

$ (22)

$ (214)

Provision expense (b)

113

168

166

457

325

590

776

Pre-tax, pre-provision net revenue (PPNR) (a) + (b)

473

617

619

545

583

760

567

568

562

Annualized PPNR (c)

1,877

2,448

2,483

2,210

2,313

3,015

2,274

2,304

2,230

Adjustments remove (benefit) / detriment

From noninterest income:

Securities (gains) / losses

(5)

(26)

(6)

(8)

(21)

(4)

(8)

(14)

(2)

Gain on BOLI settlement

(127)

Valuation of 2009 Visa total return swap

Vantiv, LLC warrants & puts

(10)

(3)

(29)

(3)

(10)

(20)

Adjustments to noninterest income (l)

(12)

(31)

(19)

(126)

(18)

(3)

(22)

From noninterest expense:

Termination of certain borrowings & hedging transactions

Other litigation reserve expense

Extinguishment (gains) / losses

(6)

(3)

Adjustments to noninterest expense (m)

(6)

(2)

Adjusted PPNR (k)

526

637

582

546

581

634

552

569

562

Annualized Adjusted PPNR (d)

2,087

2,527

2,334

2,214

2,305

2,515

2,214

2,308

2,230

Credit-related items in noninterest income

Gain / (loss) on sale of loans

(1)

Commercial loans HFS FV adjustment

(18)

(6)

(9)

(16)

(35)

(9)

(17)

(30)

Gain / (loss) on sale of OREO properties

(22)

(21)

(26)

(2)

(19)

(29)

(16)

(21)

(22)

Mortgage repurchase costs

(1)

(2)

(0)

(2)

(1)

(4)

(2)

Total credit-related revenue impact (i)

Credit-related items in noninterest expense

Mortgage repurchase expense

Provision for unfunded commitments

(6)

(10)

(14)

(16)

(4)

(23)

Derivative valuation adjustments

(5)

(0)

(1)

(2)

OREO expense

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