FIFTH THIRD BANCORP - FORM 8-K - EX-99.2

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8-K - FORM 8-K - FIFTH THIRD BANCORP	d75766d8k.htm
EX-99.1 - EX-99.1 - FIFTH THIRD BANCORP	d75766dex991.htm
EX-99.3 - EX-99.3 - FIFTH THIRD BANCORP	d75766dex993.htm

2Q15 Earnings Presentation

July 21, 2015

Refer to earnings release dated July 21, 2015 for further information.

Exhibit 99.2

Cautionary statement

This release 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,” “anticipates,”

“potential,” “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 from time to time 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

may

make.

Moreover,

you

should

treat

these

statements

speaking

only

the

date

they

are

made

and

based

only

information then actually known to us. There is a risk that additional information may arise during the company’s close process or as a result of

subsequent events that would require the company to make adjustments to the financial information contained herein.

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

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

which

Fifth

Third,

one

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

businesses

that

could

have

adverse

effect

Fifth

Third’s

earnings

and

future

growth;

(22)

difficulties

separating

the

operations of any branches or other assets divested; (23) inability to achieve expected benefits from branch consolidations and planned sales

within desired timeframes, if at all; (24) ability to secure confidential information and deliver products and services through the use of computer

systems and telecommunications networks; and (25) 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.

2Q15 in review

Balancing current earnings results with prudent decisions to increase long-term shareholder value

($ in millions)

2Q15

Seq.

YOY

Average Balances

Total loans & leases

$92,173

$1,665

$1,624

Core deposits

$100,534

$2,340

$7,693

Income Statement Data

Net interest income (taxable equivalent)

$892

(1%)

Provision for loan and lease losses

14%

Noninterest income

556

(12%)

(24%)

Noninterest expense

947

(1%)

Net income attributable to Bancorp

$315

(13%)

(28%)

Net income available to common

shareholders

$292

(16%)

(30%)

Financial Ratios

Earnings per share, diluted

0.36

(14%)

(27%)

Net interest margin

2.90%

4bps

(25bps)

Efficiency ratio

65.4%

310bps

720bps

Return on average assets

0.90%

(16bps)

(44bps)

Return on average common equity

8.1%

(160bps)

(380bps)

Return on average tangible common

equity

9.7%

(200bps)

(470bps)

Tangible

book

value

per

$ 14.62

(2%)

Note: The percentages in all of the tables in this presentation are calculated on actual dollar amounts and not the rounded dollar amounts.

Excludes loans held-for-sale

Non-GAAP measure; see Reg. G reconciliation in appendix

Significant pre-tax items in 2Q15 results

(~$0.07 negative after-tax EPS impact):

—

$97MM non-cash impairment charge

related to previously announced changes

in the branch network (see form 8-K dated

June 22, 2015)

—

$14MM positive valuation adjustment on

the Vantiv

warrant

2Q15 core business trends solid despite

continued low interest rate environment

Credit quality continues to improve

—

NCO ratio 37bps of loans as of 2Q15

—

NPAs down $66MM compared with 1Q15;

NPA ratio 67bps

Strong capital ratios; tangible book value per

up 5% from 2Q14

$90.5

$92.7

$90.5

$90.8

$91.0

$90.5

$92.2

2Q14

3Q14

4Q14

1Q15

2Q15

EOP loans HFI

Avg loans HFI

Balance sheet

Loan balances ($B)

•

Continuing to target prudent risk/reward

profile in lending

•

Average commercial loans HFI up 3%

sequentially and up 3% year-over-year

–

Year-over-year growth primarily

driven by C&I and commercial

construction, partially offset by

lower commercial mortgage

–

End of period commercial line

utilization 33%

•

Average consumer loans HFI increased

1% sequentially and declined 1%

year-

over-year

•

Average transaction deposits up $2.3B

sequentially with increases in demand

deposit and money market balances

–

Consumer average transaction

deposits up 1% sequentially and up

5% year-over-year

–

Commercial average transaction

deposits up 4% sequentially and up

12% year-over-year

•

Average core deposit to loan ratio of

109%

Average core deposit balances ($B)

Average securities and short-term

investments ($B)

•

Average securities up $5.6B from 2Q14

driven by LCR requirements

•

Securities portfolio / total assets of

20.1% in 2Q15, up from 17.6% a year

ago

•

Average other short-term investments

increased $1.0B year-over-year

reflecting higher cash balances at the

Federal Reserve

Note: Numbers may not sum due to rounding.

Net interest income

NII and NIM (FTE)

•

Net interest income up $40MM from 1Q15

–

Increase driven by earning asset growth, lower deposit costs, and the $7MM positive impact from higher day

count

–

NIM increased 4 bps sequentially driven by a 6 bp

benefit due to deployment of cash balances into

investment securities, 3 bps due to better funding rates including the continued rationalization of deposit

rates, partially offset by 4 bps of loan yield compression and a 1 basis point decrease primarily due to day

count

•

Year-over-year NII decreased $13MM and NIM decreased 25 bps

–

NII decrease driven by changes to deposit advance product, higher interest expense due to increased

long-term debt balances, and continued loan repricing, partially offset by the impact of higher investment

securities balances

–

NIM decrease primarily driven by the impact of the changes to the deposit advance product and loan

repricing

Yield Analysis

2Q14

1Q15

2Q15

Seq.

(bps)

YoY

(bps)

Commercial and industrial loans

3.27%

3.16%

3.14%

(2 )

(13)

Commercial mortgage loans

3.39%

3.27%

3.22%

(5)

(17)

Commercial construction loans

3.54%

3.23%

3.17%

(6)

(37)

Commercial leases

3.04%

2.90%

2.83%

(7)

(21)

Residential mortgage loans

3.93%

3.83%

3.69%

(14 )

(24)

Home equity

3.71%

3.66%

(5)

Automobile loans

2.77%

2.68%

2.65%

(3)

(12)

Credit card

10.06%

10.22%

10.33%

Other consumer loans and leases

35.63%

10.79%

8.49%

(230)

(2,714)

Total loans and leases

3.65%

3.46%

3.41%

(5)

(24)

Taxable securities

3.34%

3.30%

3.20%

(10)

(14)

Tax exempt securities

4.69%

5.24%

4.82%

(42)

Other short-term investments

0.28%

0.25%

(3)

Total interest-earning assets

3.53%

3.28%

(25)

Total interest-bearing liabilities

0.54%

0.60%

0.56%

(4)

Net interest spread

2.99%

2.68%

2.72%

(27)

$905

$908

$888

$852

$892

3.15%

3.10%

2.96%

2.86%

2.90%

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

2Q14

3Q14

4Q14

1Q15

2Q15

Net Interest Income ($MM)

NIM

2Q14

1Q15

2Q15

Seq.

YOY

($ in millions)

$139

$135

$139

107

113

79%

117

36%

50%

102

108

105

(3%)

revenue

income

226

163

(99%)

(100%)

gains, net

(50%)

noninterest income

$736

$630

$556

(12%)

(24%)

Gain on sale of Vantiv shares

(125)

Vantiv warrant valuation

(63)

(70)

(14)

Other Vantiv-related

items

Valuation of Visa total return swap

sale of

TDRs

(37)

Impairment from

aircraft leases

Branch / Land valuation adjustments

Securities (gains) / losses

(8)

(4)

Adjusted noninterest income

$585

$566

$637

13%

Noninterest income

Compared with 1Q15

•

Corporate banking revenue results were primarily due to

improvement in institutional sales revenue and higher

syndication fees; sequential quarter comps impacted by

the $30 million impairment associated with aircraft

leases in 1Q15

•

Mortgage banking revenue results reflect seasonally

strong originations and a higher mortgage servicing

revenues in 2Q15

Compared with 2Q14

•

Increase in mortgage banking revenue reflected higher

mortgage servicing revenue in 2Q15

•

Corporate banking revenue results driven by higher

institutional sales revenue and business lending fees,

partially offset by lower syndication fees

Components of noninterest income

5 quarter trend ($MM)

$566

$585

$573

$612

$637

$200

$400

$600

$800

2Q14

3Q14

4Q14

1Q15

2Q15

Adjusted noninterest income

Mortgage banking net revenue

Reported noninterest income

Noninterest expense

Compared with 1Q15

•

Expenses were up 3% sequentially, primarily due to higher

incentive-based compensation expenses, which includes

the seasonal pickup in long-term incentives, partially offset

by a decrease in FICA and unemployment tax expense

recorded in employee benefits

•

The sequential comparison also reflected the first quarter

benefit from a settlement of a tax liability related to prior

years recorded in other noninterest expense.

Compared with 2Q14

•

Expenses were down 1% year-over-year due to a decrease

in litigation reserve charges, partially offset by an increase

in compensation expenses

2Q14

1Q15

2Q15

Seq.

YOY

($ in millions)

Salaries, wages and incentives

$368

$369

$383

Employee benefits

(21%)

(1%)

Net occupancy expense

Technology and

communications

(2%)

Equipment expense

Card and processing expense

Other noninterest expense

309

254

280

10%

(9%)

Noninterest expense

$954

$923

$947

(1%)

Litigation reserve charges

(61)

Adjusted noninterest expense

$893

$923

$947

Components of noninterest expense

$200

$400

$600

$800

$1,000

2Q14

3Q14

4Q14

1Q15

2Q15

Adjusted noninterest expense

Reported noninterest expense

5 quarter trend ($MM)

Note: Provision for unfunded commitments was an expense of $2M in 2Q15, a benefit of $4M in 1Q15, an expense of $1M in 4Q14, a benefit of $8M in 3Q14, and a benefit of $11M in

2Q14.

$893

$888

$912

$923

$947

$25

$50

$75

$100

$125

$150

$175

$200

2Q14

3Q14

4Q14

1Q15

2Q15

Commercial

Consumer

Related to TDR Transfer to HFS

Credit quality overview

Net charge-offs ($MM)

$86

$115

NCO ratio

0.45%

0.50%

0.83%

0.41%

0.37%

$101

HFI Nonperforming assets ($MM)

512

487

461

421

376

320

309

283

270

250

$200

$400

$600

$800

$1,000

2Q14

3Q14

4Q14

1Q15

2Q15

Commercial

Consumer

$691

$626

$832

$744

$796

NPAs down 9% sequentially and 25% from 2Q14;

lowest level since 2007

$1,458

$1,414

$1,322

$1,300

$1,293

1.61%

1.56%

1.47%

1.42%

1.39%

$500

$1,000

$1,500

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2Q14

3Q14

4Q14

1Q15

2Q15

Allowance for Loan & Lease Losses (ALLL) ($MM)

ALLL / Loans and Leases

Reserve Coverage

$94

$87

$78

$70

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

2Q14

3Q14

4Q14

1Q15

2Q15

Accruing 90+ Days Past Due ($MM)

2Q15 provision expense of $79MM,

reserve coverage levels remain solid

90 + delinquencies declined 26% from 2Q14

NPA ratio 0.92% 0.88% 0.82% 0.76% 0.67%

Net charge-offs down 5% sequentially and 15% year-over-year

$191

$91

Strong capital position

Non-GAAP measure; See Reg. G reconciliation in appendix.

Represents Basel III common equity tier 1 ratio under the final capital rule, subject to phase-in periods. Fifth Third made a one-time permanent election to not include AOCI in common equity tier

1 capital in the March 31, 2015 regulatory filings.

Tier

Common

Ratio

Avg. Diluted Shares Outstanding (MM)

EOP share impact

(MM)

Average share impact

(MM)

1Q15

2Q15

1Q15

2Q15

3Q15

$225MM ASR

0.3

$180MM ASR

0.8

2.7

0.1

$180MM ASR

8.5

1.1

6.0

3.4

0.3

$155MM ASR

6.7

4.5

3.2

9.3

7.8

9.0

8.0

3.5

Capital Actions

Impact of Share Repurchases

Common Equity

Tier 1 Ratio

2015 CCAR plan included potential repurchase of

common shares in an amount up to $765MM

—

Also included the ability to repurchase shares in the

amount of any after-tax gains from the sale of Vantiv

Inc. stock

Announced $155MM share repurchase transaction in

2Q15; expected to be completed on or before July 28,

2015

2Q14

3Q14

4Q14

1Q15

2Q15

10%

9.6%

9.7%

9.5%

9.4%

848

838

828

819

813

625

675

725

775

825

875

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

$16.00

2Q14

3Q14

4Q14

1Q15

2Q15

Common Shares O/S

TBV per share

$17.00

$13.86

$13.95

$14.40

$14.85

$14.62

(Basel III)

(Basel I)

and Tangible Book Value per share

Appendix

58.2%

62.1%

59.6%

62.3%

59.8%

59.5%

60.9%

64.9%

61.9%

2Q14

3Q14

4Q14

1Q15

2Q15

Efficiency Ratio

Adjusted Efficiency Ratio

$593

$594

$580

$493

$578

$100

$200

$300

$400

$500

$600

$700

2Q14

3Q14

4Q14

1Q15

2Q15

Adjusted PPNR

Reported PPNR

Pre-tax pre-provision earnings

PPNR trend

Non-GAAP

measure;

see

Reg.

reconciliation

appendix.

Prior

quarters

include

similar

adjustments.

PPNR decreased 10% sequentially, reflecting

impact of $82MM in net detriment in 2Q15 and a

$61MM benefit in 1Q15 from significant items.

Excluding those items, adjusted PPNR increased

17% sequentially, reflecting higher NII in 2Q15

PPNR reconciliation

Efficiency ratio

65.4%

($ in millions)

2Q14

3Q14

4Q14

1Q15

2Q15

Income before income taxes (U.S. GAAP) (a)

$606

$464

$519

$485

$417

Add: Provision expense (U.S. GAAP) (b)

PPNR (a) + (b)

$682

$535

$618

$554

$496

Adjustments

remove

(benefit)

detriment

In noninterest income:

Gain from sales of Vantiv

(125)

Vantiv warrant valuation

(63)

(56)

(70)

(14)

Reduction in equity method income from interest in Vantiv

Branch and land valuation adjusments

Gain from sales of troubled debt restructurings

(37)

Impairment associated with aircraft leases

Valuation of 2009 Visa total return swap

Securities (gains) / losses

(8)

(3)

(4)

In noninterest expense:

Severance expense

Litigation reserve charges

(3)

(1)

Adjusted PPNR

$593

$594

$580

$493

$578

Mortgage banking results

•

$2.5B in originations; 53% purchase volume

•

2Q15 mortgage drivers:

–

Origination fees and gain on sale revenue down $1MM

–

Gain on sale margin down 39 bps sequentially

–

Retaining conforming ARMs and shorter-term fixed-rate production on balance sheet

–

MSR valuation adjustments of positive $57MM; servicing rights amortization of $39MM

–

$56MM in gross servicing fees

Mortgage

originations

($B)

and

gain

sale

margin

(32)

(33)

(32)

(34)

(39)

(1)

(2)

2Q14

3Q14

4Q14

1Q15

2Q15

Orig fees and gains on loan sales

Gross servicing fees

Servicing rights amortization

MSR valuation adjustments

Mortgage Banking Net Revenue ($MM)

Note: Numbers may not sum due to rounding.

Gain

sale

margin

represents

gains

all

loans

originated

for

sale.

$117

$61

$78

$61

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

2Q14

3Q14

4Q14

1Q15

2Q15

Originations for sale

Originations HFI

Margin

$86

$350

$2,450

$650

$600

$850

2015

2016

2017

2018

2019

2020

2021 On

Available and contingent borrowing capacity

(2Q15):

–

FHLB ~$10.1B available, ~$14.7B total

–

Federal Reserve ~$26.5B

Holding Company cash at 6/30/15: $2.4B

Cash currently sufficient to satisfy all fixed

obligations in a stressed environment for ~18

months (debt maturities, common and

preferred dividends, interest and other

expenses) without accessing capital markets;

relying on dividends from subsidiaries or any

other discretionary actions

Holding company unsecured debt maturities ($MM)

Bank

unsecured

debt

maturities

($MM

–

excl.

Brokered

CDs)

Heavily core funded

Strong liquidity profile

S-T

wholesale

$1,250

$500

$2,312

2015

2016

2017

2018

2019

2020

2021 on

Fifth Third Bancorp

Fifth Third Capital Trust (Bancorp)

Interest Rate Risk Management

Actual

results

may

vary

from

these

simulated

results

due

differences

between

forecasted

and

actual

balance

sheet

composition,

timing,

magnitude,

and

frequency

interest

rate

changes, as well as other changes in market conditions and management strategies.

Re-pricing percentage or “beta” is the estimated change in yield over 12 months as a result of a shock or ramp 100 bps parallel shift in the yield curve

Well-positioned for rising rates

•

NII benefits from asset re-pricings in a rising rate environment

–

64% of total loans are floating rate (81% of commercial and 36% of consumer)

–

Investment portfolio duration of approximately 4.9 years

–

Short-term

wholesale

funding

represents

approximately

3.5%

4.0%

total

funding

–

Approximately $12BN in non-core funding matures beyond one year

•

Interest rate sensitivities are based on conservative deposit assumptions

–

70%

beta

all

interest-bearing

deposit

and

sweep

balances

(~50%

betas

experienced

2004

–

2006

Fed

tightening

cycle)

–

No modeled re-pricing lag

–

Modeled non-interest bearing commercial DDA runoff of approximately $2.5BN (about 10%) for each 100 bps increase in

rates

–

DDA runoff rolls into an interest bearing product with a 100% beta

Change in Interest Rates

+200 bps Shock

Change in Interest Rates

+100 bps Shock

+200 bps Ramp

1.63%

6.65%

(4.00%)

+25 bps Shock

+100 bps Ramp

0.89%

4.23%

-25 bps Shock

Betas 25% Higher

Betas 25% Lower

Change in Interest Rates

Months

13 to 24

Months

Change in Interest Rates

Months

13 to 24

Months

13 to 24

Months

+200 bps Ramp

1.35%

6.09%

1.91%

+200 bps Ramp

(1.37%)

0.65%

4.63%

12.65%

+100 bps Ramp

0.75%

3.95%

1.03%

+100 bps Ramp

(0.61%)

1.23%

2.39%

7.23%

ESTIMATED NII SENSITIVITY PROFILE

ESTIMATED EVE SENSITIVITY PROFILE

Percent Change in

NII (FTE)

ALCO Policy Limits

Change in EVE

ALCO Policy Limit

Months

13 to 24

Months

13 to 24 Months

(12.00%)

(1.84%)

(6.00%)

(0.33%)

0.22%

(4.63%)

13 to 24 Months

7.21%

4.52%

ESTIMATED NII SENSITIVITY with DEMAND DEPOSIT BALANCE CHANGES

ESTIMATED NII SENSITIVITY with DEPOSIT BETA CHANGES

Percent Change in NII (FTE)

$1B Balance Decrease

$1B Balance Increase

NPL rollforward

NPL HFI Rollforward

Commercial

2Q14

3Q14

4Q14

1Q15

2Q15

464

396

385

367

325

Transfers to nonperforming

141

116

Transfers to performing

(67)

(1)

(3)

Transfers from held for sale

Transfers to held for sale

(1)

(3)

Loans sold from portfolio

(24)

(12)

(5)

(3)

Loan paydowns/payoffs

(54)

(39)

(45)

(62)

(44)

Transfers to other real estate owned

(18)

(9)

(7)

(9)

(10)

Charge-offs

(46)

(66)

(62)

(45)

(49)

Draws/other extensions of credit

396

385

367

325

287

Consumer

2Q14

3Q14

4Q14

1Q15

2Q15

269

244

235

212

201

Transfers to nonperforming

Transfers to performing

(44)

(40)

(33)

(23)

(26)

Transfers from held for sale

(24)

Transfers to held for sale

Loans sold from portfolio

Loan paydowns/payoffs

(11)

(5)

(8)

(14)

Transfers to OREO/other repossessed property

(24)

(21)

(20)

(17)

(10)

Charge-offs

(30)

(33)

(27)

(22)

(18)

Draws/other extensions of credit

(1)

244

235

212

201

188

Total NPL

640

620

579

526

475

Total new nonaccrual loans -

HFI

226

206

185

134

121

Beginning NPL amount

Ending Commercial NPL

Beginning NPL amount

Ending Consumer NPL

Commercial & industrial

Loans by geography

Credit trends

Loans by industry

Comments

14%

11%

Other /

National

45%

* Excludes loans held-for-sale.

•

Commercial & industrial loans represented 46% of total loans

•

C&I loans were up 2% sequentially and up 4% since 2Q14

•

SNC portfolio $25.1B; all material impacts from exam

included in Q2 results

•

Non-power producer Energy portfolio $1.7B, down slightly

from 1Q15

($ in millions)

2Q14

3Q14

4Q14

1Q15

2Q15

EOP Balance*

$41,299

$41,072

$40,765

$42,052

$42,800

Avg Loans*

$41,374

$41,477

$41,277

$41,426

$42,550

90+ days delinquent

as % of loans

NPAs*

$265

$278

$246

$216

$193

as % of loans

0.64%

0.68%

0.60%

0.58%

0.45%

Net charge-offs

$31

$50

$44

$38

$34

as % of loans

0.30%

0.48%

0.43%

0.38%

0.32%

C&I

Commercial real estate

Loans by geography

Credit trends

Loans by industry

Comments

15%

26%

10%

Other /

National

22%

12%

•

Commercial mortgage loans represented 8% of total loans

—

Non-owner occupied 2Q15 NCO ratio of 0.9%

•

Commercial construction loans represented 3% of total loans

—

Portfolio focused on large professional developers

—

Top 3 categories: Apartments, office and REIT

* Excludes loans held-for-sale.

($ in millions)

2Q14

3Q14

4Q14

1Q15

2Q15

EOP Balance*

$7,805

$7,564

$7,399

$7,209

$7,150

Avg Loans*

$7,885

$7,633

$7,480

$7,241

$7,148

NPAs*

$212

$186

$195

$186

$166

as % of loans

2.69%

2.43%

2.62%

2.56%

2.31%

Net charge-offs

$10

$11

as % of loans

0.44%

0.24%

0.53%

0.05%

0.62%

Commercial mortgage

($ in millions)

2Q14

3Q14

4Q14

1Q15

2Q15

EOP Balance*

$1,424

$1,702

$2,069

$2,302

$2,709

Avg Loans*

$1,362

$1,563

$1,909

$2,197

$2,549

NPAs*

$31

$19

$16

$14

as % of loans

2.17%

1.09%

0.75%

0.67%

0.51%

Net charge-offs

as % of loans

2.26%

(0.11%)

(0.01%)

(0.06%)

0.00%

Commercial construction

Residential mortgage

liens: 100%; weighted average LTV: 73.1%

Weighted average origination FICO: 757

Origination FICO distribution: <660 5%; 660-689 5%; 690-719 9%;

720-749 14%; 750+ 62%; Other^ 5%

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

Origination LTV distribution: <=70 38%; 70.1-80 36%; 80.1-90 7%;

90.1-95 5%; >95 14%

Vintage distribution: 2015: 14%, 2014: 17%, 2013: 18%; 2012 17%;

2011 10%; 2010 6%; 2009 3%; 2008 2%; 2007 2%; 2006 2%; 2005

4%; 2004 and prior 5%

15%

originated

through

party;

performance

similar

direct

Loans by geography

Credit trends

Portfolio details

Comments

^ Includes acquired loans where FICO at origination is not available

* Excludes loans held-for-sale

•

Residential mortgage loans represented 14% of total loans and

6% of net charge-offs

•

Net charge-offs decreased by $1MM sequentially

—

MI, IL, and OH account for 24%, 18%, and 16% of

residential mortgage net charge-offs, respectively

15%

24%

14%

Other /

National

15%

11%

($ in millions)

2Q14

3Q14

4Q14

1Q15

2Q15

EOP Balance*

$12,652

$12,941

$12,389

$12,569

$12,933

Avg Loans*

$12,611

$12,785

$13,046

$12,433

$12,831

90+ days delinquent

$60

$57

$56

$48

$43

as % of loans

0.47%

0.44%

0.38%

0.33%

NPAs*

$172

$164

$126

$113

$101

as % of loans

1.36%

1.27%

1.01%

0.91%

0.78%

Net charge-offs

$94

as % of loans

0.24%

0.28%

2.87%

0.19%

0.16%

Residential mortgage

Home equity loans represented 9% of total loans and 10% of net

charge-offs

Approximately 12% of portfolio in broker product generated 29% total

loss

38%

Fifth

Third

liens

are

behind

Fifth

Third

liens

2005/2006 vintages represent approximately 23% of portfolio; account

for 40% of losses

Home equity

liens:

35%;

liens:

65%

Weighted average origination FICO: 753

Origination FICO distribution^: <660 3%; 660-689 7%; 690-719 12%;

720-749 16%; 750+ 55%; Other 7%

Average CLTV: 72%; Origination CLTV distribution: <=70 42%; 70.1-

80 24%; 80.1-90 18%; 90.1-95 5%; >95 11%

Vintage distribution: 2015: 3%; 2014: 8%, 2013: 6%; 2012 4%; 2011

2%; 2010 2%; 2009 3%; 2008 9%; 2007 9%; 2006 12%; 2005 11%; 2004

and prior 31%

% through broker channels: 12% WA FICO: 734 brokered, 756 direct;

WA CLTV: 88% brokered; 70% direct

Portfolio details

Comments

Brokered loans by geography

Direct loans by geography

Credit trends

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

* Excludes loans held-for-sale

($ in millions)

2Q14

3Q14

4Q14

1Q15

2Q15

EOP Balance*

$1,131

$1,094

$1,062

$1,028

$987

90+ days delinquent

as % of loans

Net charge-offs

as % of loans

2.35%

1.42%

1.05%

1.11%

1.06%

Home equity - brokered

($ in millions)

2Q14

3Q14

4Q14

1Q15

2Q15

EOP Balance*

$7,925

$7,893

$7,824

$7,686

$7,560

90+ days delinquent

as % of loans

Net charge-offs

$11

$10

$11

as % of loans

0.58%

0.51%

0.42%

0.59%

0.34%

Home equity - direct

Regulation G Non-GAAP reconciliation

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconcilation

$ and shares in millions

(unaudited)

June

March

December

September

June

2015

2014

Income before income taxes (U.S. GAAP)

417

485

519

464

606

Add:

Provision expense (U.S. GAAP)

Pre-provision net revenue

496

554

618

535

682

Net income available to common shareholders (U.S. GAAP)

292

346

362

328

416

Add:

Intangible amortization, net of tax

Tangible net income available to common shareholders

292

346

363

329

417

Tangible net income available to common shareholders (annualized) (a)

1,171

1,403

1,440

1,305

1,673

Average Bancorp shareholders' equity (U.S. GAAP)

15,841

15,820

15,644

15,486

15,157

Less:

Average preferred stock

(1,331)

(1,119)

Average goodwill

(2,416)

Average intangible assets and other servicing rights

(15)

(17)

(16)

(17)

Average tangible common equity (b)

12,079

12,058

11,880

11,723

11,605

Total Bancorp shareholders' equity (U.S. GAAP)

15,605

15,864

15,626

15,404

15,469

Less:

Preferred stock

(1,331)

Goodwill

(2,416)

Intangible assets and other servicing rights

(14)

(15)

(16)

(17)

Tangible common equity, including unrealized gains / losses (c)

11,844

12,102

11,863

11,641

11,705

Less: Accumulated other comprehensive income

(291)

(588)

(429)

(301)

(382)

Tangible common equity, excluding unrealized gains / losses (d)

11,553

11,514

11,434

11,340

11,323

Total assets (U.S. GAAP)

141,658

140,470

138,706

134,188

132,562

Less:

Goodwill

(2,416)

Intangible assets and other servicing rights

(14)

(15)

(16)

(17)

Tangible assets, including unrealized gains / losses (e)

139,228

138,039

136,274

131,756

130,129

Less: Accumulated other comprehensive income / loss, before tax

(448)

(905)

(660)

(463)

(588)

Tangible assets, excluding unrealized gains / losses (f)

138,780

137,134

135,614

131,293

129,541

Common shares outstanding (g)

810

815

824

834

844

Ratios:

Return on average tangible common equity (a) / (b)

9.7%

11.7%

12.1%

11.1%

14.4%

Tangible common equity (excluding unrealized gains/losses) (d) / (f)

8.33%

8.40%

8.43%

8.64%

8.74%

Tangible common equity (including unrealized gains/losses) (c) / (e)

8.51%

8.77%

8.71%

8.84%

9.00%

Tangible book value per share (c) / (g)

$14.62

$14.85

$14.40

$13.95

$13.86

For the Three Months Ended

Regulation G Non-GAAP reconciliation

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconcilation

$ and shares in millions

(unaudited)

June

March

December

September

June

2015

2014

Total Bancorp shareholders' equity (U.S. GAAP)

N/A

15,626

15,404

15,469

Goodwill and certain other intangibles

N/A

(2,476)

(2,484)

Unrealized gains

N/A

(429)

(301)

(382)

Qualifying trust preferred securities

N/A

Other

N/A

(17)

(18)

(19)

Tier I capital

N/A

12,764

12,661

12,644

Less:

Preferred stock

N/A

(1,331)

Qualifying trust preferred securities

N/A

(60)

Qualifying noncontrolling interest in consolidated subsidiaries

N/A

(1)

Tier I common equity (a)

N/A

(2)

N/A

(2)

11,372

11,269

11,252

Risk-weighted assets (actual) (b)

(1)

123,134

121,310

117,878

116,917

117,117

Ratio:

Tier I common equity (a) / (b)

N/A

(2)

N/A

(2)

9.65%

9.64%

9.61%

Basel

III

Final

Rule

Transitional

fully

phased-in

CET 1 capital (transitional)

11,582

11,543

Less: Adjustments to CET 1 capital from transitional to fully phased-in

(3)

(12)

(13)

CET 1 capital (fully phased-in) (c)

11,570

11,530

Risk-weighted assets (transitional)

123,134

121,310

Add: Adjustments to risk-weighted assets from transitional to fully phased-in

(4)

1,280

1,182

Risk-weighted assets (fully phased-in) (d)

124,414

122,492

Estimated CET 1 capital ratio under Basel III Final Rule (fully phased-in) (c) / (d)

9.30%

9.41%

(1)

(2)

The Bancorp became subject to the Basel III Final Rule on January 1, 2015. This codified in the federal banking regulations the risk-based capital ratios the Bancorp is now subject to, as such these ratios are no longer

considered Non-GAAP measures.

(3)

Primarily relates to disallowed intangible assets (other than goodwill and MSRs, net of associated deferred tax liabilities).

(4)

Primarily relates to higher risk-weighting for MSRs.

For the Three Months Ended

Basel I

Basel III Transitional

Under the banking agencies’ risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is

multiplied by the associated risk-weight of the category. The resulting weighted values are added together, along with the measure for market risk, resulting in the Bancorp’s total risk-weighted assets.

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