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

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8-K - FORM 8-K - FIFTH THIRD BANCORP	d834303d8k.htm

Goldman Sachs

U.S. Financial Services Conference

Tayfun Tuzun

Executive Vice President & Chief Financial Officer

December 9, 2014

Refer to earnings release dated October 16, 2014 and

10-Q dated November 7, 2014 for further information.

Exhibit 99.1

Business composition at Fifth Third

Consumer

Lending

Branch

Banking

Wealth

Management

Commercial

Banking

Retail Bank

Cards

Home Equity

Mortgage

Auto

Private Bank

Retail Brokerage

Institutional Services

Commercial Bank

Footprint

Business

Lines

In footprint markets

National consumer lending

In footprint markets

National commercial banking

37% of

Bancorp net

revenue

10% of

Bancorp net

revenue

9% of

Bancorp net

revenue

42% of

Bancorp net

revenue

2014YTD as of September 30. Net revenue represents net interest

income plus noninterest income. General Corporate and Other segment not included in above

disclosure and represents remaining 2% of net revenue.

Overview of our Commercial Bank

•

Approximately 33% of Commercial

revenue driven by National business

and 67% in footprint at 3Q14

–

Compared with approximately 25%

National and 75% in footprint at

1Q11

In footprint markets

National commercial banking

National commercial hub cities

Commercial loan production office

Small Business Business Banking Middle Market

Mid Corp Large Corp

<$2MM sales $2-10MM sales $10-500MM sales $500MM-2B sales >$2B sales

1Q11

Commercial

Loans

Commercial Bank Composition by Segment

3Q14

Commercial

Loans

Strategic direction in commercial banking

Growing

relationships

with larger

companies

Strengthening

vertical

expertise

Increasing

utilization of

non-credit

offerings

Selection of verticals

based on market size,

identified non-credit

product and service

utilization, and growth

expectations

Specialized relationship

managers with better

knowledge of clients’

business

Current verticals:

Healthcare, Energy,

Retail

Alignment of risk appetite

and stronger post-crisis

growth in large and mid-

corporate borrowing

needs

Better credit quality and

need for wider scope of

banking products and

services

Continuing to preserve

relationships in traditional

middle market lending

given market conditions

Areas of historical

expertise such as

Treasury Management

coupled with new

investments in capital

markets capabilities and

advisory services

Competitive advantage

relative to smaller bank

competition

Changing profile of commercial lending

Commercial Loan Portfolio

Cross-sell

ratio

Changing credit profile post-crisis directly linked

to change in our risk appetite, indirectly a result of

increased focus on mid-

and large-corporate

relationships

Combination of lower credit spreads and higher

capital ratios require significantly higher

contribution from non-credit business fees to

meet target returns

Although fee income streams may result in higher

potential volatility in revenues compared to pure

interest income, lower credit volatility should

preserve stable earnings

Yield /

Rating

Noninterest Income Composition

5 year BB spread at quarter end.

3Q12 not restated for subsequent adjustments reflected in current period data.

Represents National Healthcare business.

2.00

2.50

3.00

3.50

4.00

4.50

3Q12

3Q14

Mid-Corporate

Healthcare

Weighted-Average PD

Yield

5 Yr Rating BB Spread

27%

17%

16%

14%

BL Fees

Syndication Fees

FX Revenue

Institutional Sales

LOC Fees

Derivative Income

Lease Remarketing

Commodities Revenue

Other

Total Commercial

Changing trajectory of earnings composition

Includes FTE Adjustment

YTD10, YTD11, and YTD12 have not been restated for changes in the structure of reporting units that occurred in 1Q14.

Net Revenue

1,2

Net Interest Income

1,2

Fees

•

In the long-run, focus on non-credit revenue streams and continued upgrade of portfolio

credit profile is likely to favor growth rates in fee items relative to margin income

Growth rates in margin income in the transition to higher interest rates are expected to

improve

•

Overall attractiveness of commercial banking is likely to be high as capital efficiencies and

lower volatility will lead to higher shareholder returns

Our focus on leveraging verticals and relationships with high growth potential is key to

maintaining historically sector-leading growth in commercial banking

Commercial Bank Financial Trends ($MM)

Conclusion

•

Current capital levels in banking combined with current pricing of credit

risk require shift in corporate lending strategy

Minimum stress scenario capital levels serve as binding constraint

Optimal capital management requires changes in borrower risk profile

Relationship-focused to include contribution from non-credit business

•

Non-credit fee growth provides good balance to lower margins in lending

and improves capital efficiency

•

Our size enables us to compete better with larger banks in capturing

relationships as the SIFI banks are subject to lower leverage limits

Additionally, specialized lending in select sectors deepen expertise and

attract talented relationship managers to service clients at a higher

level

•

Over the long run we expect this approach leads to lower volatility of credit

losses and earnings while driving more stable returns on capital

and

maintaining our strong growth rates in corporate banking

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 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.

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