FIFTH THIRD BANCORP - FORM 8-K - EX-99.3

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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-99.2 - EX-99.2 - FIFTH THIRD BANCORP	d75766dex992.htm

Exhibit 99.3

July 2015

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QUARTERLY FINANCIAL SUPPLEMENT

Investment Community Member:

To assist in your financial analysis, the following supplement of most requested information concerning Fifth Third Bancorp is provided.

Numbers are unaudited for quarterly information.

If you need further information, please fax or e-mail your request to Fifth Third’s Investor Relations Department at (513) 534-0629 or IR@53.com

Jim Eglseder

SVP / Investor Relations

(513) 534-8424

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Quarterly Data	Three Months Ended
	June		March		December		September		June		March		December		September
	2015		2015		2014		2014		2014		2014		2013		2013
Ratios (percent)
Return on average assets		0.90		1.06		1.13		1.02		1.34		1.00		1.24		1.35
Return on average common equity		8.1		9.7		10.0		9.2		11.9		9.0		10.8		12.1
Average Bancorp shareholders’ equity as a percent of average assets		11.32		11.49		11.54		11.71		11.57		11.53		11.51		11.71
Net interest margin^(a)		2.90		2.86		2.96		3.10		3.15		3.22		3.21		3.31
Efficiency^(a)		65.4		62.3		59.6		62.1		58.2		64.9		61.5		59.2
Net losses charged-off as a percent of average portfolio loans and leases		0.37		0.41		0.83		0.50		0.45		0.76		0.67		0.49
ALLL as a percent of portfolio loans and leases		1.39		1.42		1.47		1.56		1.61		1.65		1.79		1.92
Allowance for credit losses as a percent of portfolio loans and leases		1.54		1.57		1.62		1.71		1.77		1.82		1.97		2.11
Nonperforming assets as a percent of portfolio loans, leases and other assets, including OREO^(b)		0.67		0.76		0.82		0.88		0.92		1.05		1.10		1.16
Allowance for loan and lease losses as a percent of nonperforming assets^(b)		206		188		178		178		175		157		161		165
Allowance for credit losses as a percent of nonperforming assets^(b)		228		207		196		195		192		173		178		182
Common Share Data
Earnings per share—basic	$	0.36	$	0.42	$	0.44	$	0.39	$	0.49	$	0.36	$	0.44	$	0.47
Earnings per share—diluted	$	0.36	$	0.42	$	0.43	$	0.39	$	0.49	$	0.36	$	0.43	$	0.47
Cash dividends per common share		0.13		0.13		0.13		0.13		0.13		0.12		0.12		0.12
Book value per share		17.62		17.83		17.35		16.87		16.74		16.27		15.85		15.84
Common shares outstanding, excluding treasury		810,054,148		815,190,210		824,046,952		834,261,897		844,488,849		847,568,728		855,305,745		887,029,539
Market price per share:
High	$	21.69	$	20.21	$	20.69	$	21.75	$	23.19	$	23.39	$	21.04	$	19.69
Low		18.91		17.22		17.74		19.52		20.03		20.50		17.50		18.04
End of period		20.82		18.85		20.38		20.02		21.35		22.96		21.03		18.05
Supplemental Data
Common dividends declared ($ in millions)	$	105	$	106	$	107	$	108	$	110	$	102	$	103	$	106
Full-time equivalent employees		18,527		18,471		18,351		18,503		18,732		19,080		19,446		20,256
Banking centers		1,299		1,303		1,302		1,308		1,309		1,311		1,320		1,326
ATMs		2,630		2,637		2,638		2,639		2,619		2,614		2,586		2,374

(a)

Presented on a fully taxable equivalent basis (FTE).

(b)

Excludes nonperforming assets held for sale.

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Quarterly Data	Three Months Ended
	June			March			December			September			June			March			December			September
	2015			2015			2014			2014			2014			2014			2013			2013
Income Statement ($ in millions)
Interest income (FTE)	$	1,008		$	975		$	1,016		$	1,023		$	1,013		$	998		$	1,007		$	997
Interest expense		116			123			128			115			108			100			102			99

Net interest income (FTE)		892			852			888			908			905			898			905			898
Provision for loan and lease losses		79			69			99			71			76			69			53			51
Noninterest income:
Service charges on deposits		139			135			142			145			139			133			142			140
Investment advisory revenue		105			108			100			103			102			102			98			97
Corporate banking revenue		113			63			120			100			107			104			94			102
Mortgage banking net revenue		117			86			61			61			78			109			126			121
Card and processing revenue		77			71			76			75			76			68			71			69
Other noninterest income		1			163			150			33			226			41			170			185
Securities gains, net		4			4			4			3			8			7			2			2
Securities gains, net—non-qualifying hedges on mortgage servicing rights		—			—			—			—			—			—			—			5
Total noninterest income		556			630			653			520			736			564			703			721
Noninterest expense:
Salaries, wages and incentives		383			369			366			357			368			359			388			389
Employee benefits		78			99			79			75			79			101			78			83
Net occupancy expense		83			79			77			78			79			80			77			75
Technology and communications		54			55			54			53			52			53			53			52
Equipment expense		31			31			30			30			30			30			29			29
Card and processing expense		38			36			36			37			37			31			37			33
Other noninterest expense		280			254			276			258			309			296			327			298

Total noninterest expense		947			923			918			888			954			950			989			959
Income before income taxes (FTE)		422			490			524			469			611			443			566			609
Taxable equivalent adjustment		5			5			5			5			5			5			5			5

Income before income taxes		417			485			519			464			606			438			561			604
Applicable income tax expense		108			124			134			124			167			119			159			183

Net income	$	309		$	361		$	385		$	340		$	439		$	319		$	402		$	421
Less: Net income attributable to noncontrolling interests		(6	)		—			—			—			—			1			—			—

Net income attributable to Bancorp	$	315		$	361		$	385		$	340		$	439		$	318		$	402		$	421
Dividends on preferred stock		23			15			23			12			23			9			19			—

Net income available to common shareholders	$	292		$	346		$	362		$	328		$	416		$	309		$	383		$	421


	Basel III Transitional						Basel I
*Regulatory Capital Data ($ in millions)^(a)***
CET1 capital	$	11,582		$	11,543			N/A			N/A			N/A			N/A			N/A			N/A
Additional tier I capital		1,340			1,339			N/A			N/A			N/A			N/A			N/A			N/A

Tier I capital	$	12,922		$	12,882		$	12,764		$	12,661		$	12,644		$	12,182		$	12,094		$	12,762
Tier II capital		3,909			4,112			4,131			4,103			4,101			4,174			4,337			3,665

Total risk-based capital	$	16,831		$	16,994		$	16,895		$	16,764		$	16,745		$	16,356		$	16,431		$	16,427

Risk-weighted assets	$	123,134	^(b)	$	121,310	^(b)	$	117,878		$	116,917		$	117,117		$	116,622		$	115,969		$	113,801

CET1 capital ratio		9.41	%^(b)		9.52	%^(b)		N/A			N/A			N/A			N/A			N/A			N/A
Tier I risk-based capital ratio		10.49	%^(b)		10.62	%^(b)		10.83	%		10.83	%		10.80	%		10.45	%		10.43	%		11.21	%
Total risk-based capital ratio		13.67	%^(b)		14.01	%^(b)		14.33	%		14.34	%		14.30	%		14.02	%		14.17	%		14.43	%
Tier I leverage ratio		9.44	%		9.59	%		9.66	%		9.82	%		9.86	%		9.71	%		9.73	%		10.64	%
Tier I common equity ratio		N/A			N/A			9.65	%^(c)		9.64	%^(c)		9.61	%^(c)		9.51	%^(c)		9.45	%^(c)		9.95	%^(c)
CET1 capital ratio (fully phased-in)		9.30	%^(b)(c)		9.41	%^(b)(c)		N/A			N/A			N/A			N/A			N/A			N/A

(a)

Current period regulatory capital data and ratios are estimated.

(b)

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.

(c)

This ratio has been included herein to facilitate a greater understanding of the Bancorp’s capital structure and financial condition. This is a Non-GAAP measure.

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Quarterly Data	As of
	June 2015			March 2015			December 2014			September 2014			June 2014			March 2014			December 2013			September 2013
Balance Sheet ($ in millions, except share data)
Assets
Cash and due from banks	$	2,785		$	2,920		$	3,091		$	3,125		$	3,312		$	3,153		$	3,178		$	2,887
Available-for-sale and other securities		27,987			26,409			22,408			22,912			22,814			20,749			18,597			18,080
Held-to-maturity securities		157			177			187			191			194			195			208			265
Trading securities		370			392			360			389			361			347			343			246
Other short-term investments		3,451			4,919			7,914			3,637			2,386			2,202			5,116			2,622

Total cash and securities		34,750			34,817			33,960			30,254			29,067			26,646			27,442			24,100
Loans held for sale		995			724			1,261			641			682			780			944			1,330
Portfolio loans and leases		92,703			91,244			90,084			90,624			90,484			89,705			88,614			87,231

Total loans and leases		93,698			91,968			91,345			91,265			91,166			90,485			89,558			88,561
Allowance for loan and lease losses		(1,293	)		(1,300	)		(1,322	)		(1,414	)		(1,458	)		(1,483	)		(1,582	)		(1,677	)
Bank premises and equipment		2,298			2,433			2,465			2,467			2,491			2,528			2,531			2,528
Operating lease equipment		670			695			728			732			667			714			730			707
Goodwill		2,416			2,416			2,416			2,416			2,416			2,416			2,416			2,416
Intangible assets		13			14			15			16			17			18			19			21
Servicing rights		854			789			858			935			931			975			971			919
Other real estate owned^(a)		163			187			217			242			266			291			299			312
Other assets		8,089			8,451			8,024			7,275			6,999			7,064			8,059			7,786

Total assets	$	141,658		$	140,470		$	138,706		$	134,188		$	132,562		$	129,654		$	130,443		$	125,673

Liabilities
Deposits:
Demand	$	35,449		$	35,343		$	34,809		$	32,258		$	32,140		$	31,234		$	32,634		$	30,153
Interest checking		27,074			27,191			26,800			24,930			24,744			25,472			25,875			23,527
Savings		14,976			15,355			15,051			15,355			16,087			16,867			17,045			17,583
Money market		17,900			18,105			17,083			16,199			14,216			13,208			11,644			10,433
Foreign office		728			811			1,114			1,577			1,418			1,922			1,976			1,409
Other time		4,050			4,044			3,960			3,856			3,724			3,660			3,530			3,524
Certificates—$100,000 and over		2,846			2,566			2,895			3,117			3,623			4,511			6,571			7,497

Total deposits		103,023			103,415			101,712			97,292			95,952			96,874			99,275			94,126
Federal funds purchased		126			200			144			148			153			268			284			225
Other short-term borrowings		4,136			1,413			1,556			2,730			3,146			2,717			1,380			3,487
Other liabilities		5,214			5,483			4,662			4,239			3,842			3,698			5,245			5,057
Long-term debt		13,521			14,055			14,967			14,336			13,961			11,233			9,633			8,098

Total liabilities	$	126,020		$	124,566		$	123,041		$	118,745		$	117,054		$	114,790		$	115,817		$	110,993

Equity
Common and preferred equity	$	17,578		$	17,421		$	17,169		$	16,889		$	16,661		$	16,122		$	15,802		$	15,085
Net unrealized gains:
Available-for-sale securities		327			608			475			338			410			231			121			268
Qualifying cash flow hedges		29			47			23			12			22			16			13			31
Accumulated other comprehensive income
related to employee benefit plans		(65	)		(67	)		(69	)		(49	)		(50	)		(51	)		(52	)		(81	)
Treasury stock, at cost		(2,264	)		(2,145	)		(1,972	)		(1,786	)		(1,574	)		(1,492	)		(1,295	)		(662	)

Total Bancorp shareholders’ equity		15,605			15,864			15,626			15,404			15,469			14,826			14,589			14,641
Noncontrolling interests		33			40			39			39			39			38			37			39

Total equity	$	15,638		$	15,904		$	15,665		$	15,443		$	15,508		$	14,864		$	14,626		$	14,680

Total liabilities and equity	$	141,658		$	140,470		$	138,706		$	134,188		$	132,562		$	129,654		$	130,443		$	125,673

Share Data
Preferred shares outstanding—Series H		24,000			24,000			24,000			24,000			24,000			24,000			24,000			24,000
Preferred shares outstanding—Series I		18,000			18,000			18,000			18,000			18,000			18,000			18,000			—
Preferred shares outstanding—Series J		12,000			12,000			12,000			12,000			12,000			—			—			—
Common shares outstanding, excluding treasury		810,054,148			815,190,210			824,046,952			834,261,897			844,488,849			847,568,728			855,305,745			887,029,539
Treasury shares held		113,838,433			108,702,371			99,845,629			89,630,684			79,403,732			76,323,853			68,586,836			36,863,042

(a)

Includes OREO related to government insured loans. Upon the prospective adoption on January 1, 2015 of ASU 2014-14 “Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure,” government guaranteed loans meeting certain criteria were reclassified to other receivables rather than OREO upon foreclosure.

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Quarterly Data
	Three Months Ended
	June 2015			March 2015			December 2014			September 2014			June 2014			March 2014			December 2013			September 2013
Average Balance Sheet ($ in millions, except share data)
Assets
Interest-earning assets:
Loans and leases	$	92,739		$	91,659		$	91,581			91,428		$	91,241		$	90,238		$	88,865		$	89,154
Taxable securities		27,344			23,102			22,364			22,594			21,706			20,385			18,383			16,590
Tax exempt securities		59			59			64			50			52			46			48			44
Other short-term investments		3,160			5,877			5,176			2,283			2,182			2,509			4,612			1,894

Total interest-earning assets		123,302			120,697			119,185			116,355			115,181			113,178			111,908			107,682
Cash and due from banks		2,636			2,830			3,008			2,862			2,847			2,850			2,956			2,380
Other assets		15,354			15,446			14,800			14,461			14,417			14,478			14,986			15,015
Allowance for loan and lease losses		(1,300	)		(1,322	)		(1,413	)		(1,458	)		(1,480	)		(1,576	)		(1,671	)		(1,731	)

Total assets	$	139,992		$	137,651		$	135,580		$	132,220		$	130,965		$	128,930		$	128,179		$	123,346

Liabilities
Interest-bearing liabilities:
Interest checking	$	26,894		$	26,885		$	25,478		$	24,926		$	25,222		$	25,911		$	24,650		$	23,116
Savings		15,156			15,174			15,173			15,759			16,509			16,903			17,323			18,026
Money market		18,071			17,492			17,023			15,222			13,942			12,439			11,285			9,693
Foreign office		955			861			1,439			1,663			2,200			2,017			1,717			1,755
Other time		4,074			4,022			3,936			3,800			3,693			3,616			3,529			3,676
Certificates—$100,000 and over		2,558			2,683			2,998			3,339			3,840			5,576			7,456			7,315
Other foreign office		—			—			—			—			—			—			—			17
Federal funds purchased		326			172			161			520			606			547			301			464
Other short-term borrowings		1,705			1,602			1,481			1,973			2,234			1,808			2,177			1,675
Long-term debt		13,773			14,448			14,855			13,955			12,524			10,313			9,135			7,453

Total interest-bearing liabilities		83,512			83,339			82,544			81,157			80,770			79,130			77,573			73,190
Demand deposits		35,384			33,760			33,301			31,790			31,275			30,626			30,765			30,655
Other liabilities		5,215			4,693			4,052			3,749			3,724			4,274			5,045			5,023

Total liabilities		124,111			121,792			119,897			116,696			115,769			114,030			113,383			108,868
Equity		15,881			15,859			15,683			15,524			15,196			14,900			14,796			14,478

Total liabilities and equity	$	139,992		$	137,651		$	135,580		$	132,220		$	130,965		$	128,930		$	128,179		$	123,346

Average loans and leases (excluding held for sale)	$	92,173		$	90,508		$	91,041		$	90,799		$	90,549		$	89,530		$	87,895		$	87,272
Share Data
Average common shares outstanding - basic		803,965,057			810,209,585			819,057,247			829,391,505			838,492,046			845,860,065			868,077,089			880,182,513
Average common shares outstanding - diluted		812,842,540			818,672,259			827,831,317			838,324,420			848,245,111			857,923,596			877,510,663			888,111,269

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Quarterly Data	Three Months Ended
	June 2015			March 2015			December 2014			September 2014			June 2014			March 2014			December 2013			September 2013
End of Period Loans and Leases ($ in millions)^{(net of unearned discount)}
Commercial:
Commercial and industrial loans	$	42,812		$	42,062		$	40,801		$	41,111		$	41,364		$	40,692		$	39,347		$	38,260
Commercial mortgage loans		7,165			7,210			7,410			7,566			7,807			7,959			8,069			8,058
Commercial construction loans		2,709			2,303			2,071			1,704			1,426			1,220			1,041			879
Commercial leases		3,882			3,787			3,721			3,555			3,572			3,577			3,626			3,572

Subtotal - commercial		56,568			55,362			54,003			53,936			54,169			53,448			52,083			50,769
Consumer:
Residential mortgage loans		13,792			13,258			13,582			13,520			13,250			13,275			13,570			13,832
Home equity		8,591			8,714			8,886			8,987			9,056			9,125			9,246			9,356
Automobile loans		11,914			11,873			12,037			12,121			12,050			12,088			11,984			12,072
Credit card		2,278			2,291			2,401			2,317			2,261			2,177			2,294			2,157
Other consumer loans and leases		555			470			436			384			380			372			381			375

Subtotal - consumer		37,130			36,606			37,342			37,329			36,997			37,037			37,475			37,792

Total loans and leases	$	93,698		$	91,968		$	91,345		$	91,265		$	91,166		$	90,485		$	89,558		$	88,561

Average Loans and Leases ($ in millions)^{(net of unearned discount)}
Commercial:
Commercial and industrial loans	$	42,554		$	41,462		$	41,313		$	41,525		$	41,451		$	40,409		$	38,846		$	38,145
Commercial mortgage loans		7,149			7,248			7,482			7,637			7,886			7,983			8,051			8,280
Commercial construction loans		2,549			2,198			1,911			1,565			1,364			1,118			955			797
Commercial leases		3,776			3,716			3,601			3,576			3,556			3,607			3,579			3,574

Subtotal - commercial		56,028			54,624			54,307			54,303			54,257			53,117			51,431			50,796
Consumer:
Residential mortgage loans		13,375			13,515			13,526			13,342			13,202			13,304			13,544			14,333
Home equity		8,655			8,802			8,937			9,009			9,101			9,194			9,296			9,432
Automobile loans		11,902			11,933			12,073			12,105			12,070			12,023			12,019			12,083
Credit card		2,296			2,321			2,324			2,295			2,232			2,230			2,202			2,140
Other consumer loans and leases		483			464			414			374			379			370			373			370

Subtotal - consumer		36,711			37,035			37,274			37,125			36,984			37,121			37,434			38,358

Total average loans and leases	$	92,739		$	91,659		$	91,581		$	91,428		$	91,241		$	90,238		$	88,865		$	89,154

Asset Quality ($ in millions)
Nonaccrual portfolio loans and leases	$	217		$	231		$	269		$	305		$	323		$	398		$	387		$	391
Nonaccrual loans held for sale		1			2			24			4			5			3			6			11
Restructured loans - (nonaccrual) held for sale		—			—			15			3			—			—			—			—
Restructured loans and leases (nonaccrual) portfolio		258			295			310			315			317			335			364			379
OREO and other repossessed property^(a)		151			165			165			176			192			213			229			244

Total nonperforming assets	$	627		$	693		$	783		$	803		$	837		$	949		$	986		$	1,025

Ninety days past due loans and leases	$	70		$	78		$	87		$	87		$	94		$	94		$	103		$	156

Nonperforming Loans ($ in millions)^{(nonaccrual plus renegotiated)}
Commercial and industrial loans and leases	$	182		$	200		$	241		$	267		$	249		$	301		$	287		$	310
Commercial mortgage loans		106			126			146			121			141			147			146			187
Commercial construction loans		—			1			2			4			10			19			31			34
Residential mortgage loans		62			70			94			111			117			141			165			166
Home equity		88			90			93			85			93			94			93			48
Other consumer loans and leases		38			41			42			39			35			34			35			36

Total nonperforming loans and leases (including held for sale)	$	476		$	528		$	618		$	627		$	645		$	736		$	757		$	781

Credit Charge-Offs ($ in millions)
Losses charged-off	($	112	)	($	115	)	($	215	)	($	146	)	($	127	)	($	190	)	($	183	)	($	141	)
Recoveries of losses previously charged-off		26			24			24			31			26			22			35			32

Net losses charged-off	($	86	)	($	91	)	($	191	)	($	115	)	($	101	)	($	168	)	($	148	)	($	109	)

(a)

Excludes OREO related to government insured loans. The Bancorp has historically excluded government guaranteed loans classified in OREO from its nonperforming asset disclosures. Upon the prospective adoption on January 1, 2015 of ASU 2014-14 “Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure,” government guaranteed loans meeting certain criteria will be reclassified to other receivables rather than OREO upon foreclosure.

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