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

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8-K - FORM 8-K - FIFTH THIRD BANCORP	d711292d8k.htm

Annual Meeting of Shareholders

April 15, 2014

Please refer to earnings release dated January 23, 2014

and 10-K dated February 24, 2014 for further information,

including full results reported on a U.S. GAAP basis.

Exhibit 99.1

2013: A record year

Return on avg. assets

Net income to common ($MM)

Generated highest level of net

income in Company’s history

Steadily improving profitability

providing positive momentum

Net charge-off ratio

Problem assets at lowest

levels in five years

Tier

common

ratio

ALLL / NPLs

Coverage levels among

highest in the industry

Strong and stable capital ratios

Total payout ratio

Net payouts to shareholders

$1.3B

2013

$511

$503

$1,094

$1,541

$1,799

2009

2010

2011

2012

2013

23%

63%

74%

31%

39%

11%

74%

2009

2010

2011

2012

2013

0.6%

0.7%

1.2%

1.3%

1.5%

2009

2010

2011

2012

2013

7.0%

7.5%

9.4%

9.5%

9.4%

2009

2010

2011

2012

2013

3.20%

3.02%

1.49%

0.85%

0.58%

2009

2010

2011

2012

2013

127%

179%

157%

180%

211%

2009

2010

2011

2012

2013

2013 is net of the issuance of shares valued at $398MM related to the Series G preferred stock conversion on July 1, 2013. 2012 and 2013 include repurchases of shares in the amount of after-tax

gains on the sale of Vantiv shares.

Non-GAAP measure; see Reg. G reconciliation in appendix; presented under current U.S. capital regulations

Strong capital return to shareholders

2013 total payout yield (regional peers)

Increased common stock dividend 31%

and repurchased 3% of outstanding common stock

$1.3 billion in capital returned to

common shareholders

$710MM common

stock repurchases

(net of $398MM

shares issued

related to Series G

conversion)

$407MM common

dividends declared

$212MM common

stock repurchases

utilizing AT Vantiv

gains

$200

$400

$600

$800

$1,000

$1,200

$1,400

2013 Net Payouts

($MM)

7.4%

5.6%

5.4%

4.9%

4.8%

3.9%

3.7%

3.6%

2.5%

2.4%

2.3%

1.8%

0.5%

Total

payout

yield

equals

dividend

yield

plus

repurchased

($)

reported

market

cap

12/31/13.

For

FITB,

repurchased

($)

net

the

issuance

valued at $398MM related to the Series G preferred stock conversion on July 1, 2013.

Capital management –

core focus

Current capital requirements

Tier

common

equity

ratio

5% CCAR

supervisory

reference

minimum

Future capital requirements

Basel

III

Tier

common

equity ratio

4.5% 2015

Basel III

minimum

7.0% 2015

Basel III

minimum

9.4%

10%

2013

9.0%

10%

2013

•

2014 CCAR plan not objected to by Federal Reserve Board

•

Included the following potential actions for the period 2Q14-1Q15, subject

to Board approval and other factors:

–

The potential increase in the quarterly common stock dividend to $0.13

per share

–

The potential repurchase of common shares in an amount up to

$669MM

–

The additional ability to repurchase shares in the amount of any after-

tax gains from the sale of Vantiv, Inc. stock, if realized

•

2014 CCAR plan designed to maintain regulatory common equity capital

ratios generally at current levels

Non-GAAP measure; See Reg. G reconciliation in appendix. Presented under current U.S. capital regulations. The pro forma Basel III Tier I common equity ratio is

management’s estimate based upon its current interpretation of recent prospective regulatory capital requirements approved in July 2013.

2013 total return

(price appreciation plus dividends)

Source: Bloomberg, 12/31/12-12/31/13

Market recognizing Fifth Third’s progress

FITB +42%

S&P Banks Index +36%

S&P 500 Index +32%

10%

15%

20%

25%

30%

35%

40%

45%

2013 key themes

•

Solid returns and healthy balance sheet with strong growth potential

•

Continued long history of disciplined expense management

•

Executed on strategic plans:

–

Enhancing scale and scope of Commercial Bank

–

Redesign of Consumer Bank for long term profitability

–

Growing wealth management and brokerage services

•

Balanced capital management supporting growth and shareholder returns

Looking at banking differently

Together we’ve donated a total of

to Stand Up to Cancer

$1,126,350

Homeowner Reemployment Program

•

First in the industry to offer job search

assistance to unemployed mortgage

borrowers

•

30% - 40% reemployed after 6 months

•

Directing donations toward cancer

research with every qualifying purchase

made using a Fifth Third SU2C debit or

credit card

Accolades

First and only firm recognized

as “Five STAR Servicer”

March 26, 2014

Second time recognized and

one of 32 companies chosen

April 3, 2013

Power Partner award

One of only 18 companies chosen

November 14, 2013

Best Overall,

Best Visibility of Major Fees, and

Best Clarity of Fee Information

August 2013

Significant national and local recognition across diverse areas

Business Practices •

Employment •

Green Initiatives •

Customer Service •

Philanthropy

Near-term priorities

Focused Segmentation

•

Identify the right customer segments and

understand their unmet needs

•

Deliver better, more focused value propositions

more effectively

Distinctive Execution

•

Offer customers differentiated advice, service

and products that deliver greater value

Innovation

•

Finding ways to improve capabilities based on

insights derived from listening to customers and

forming strategic partnerships

Growth Accelerators

•

Longer-term investments to build our presence,

our customer base, and our business

Focused

Segmentation

Distinctive

Execution

Innovation

Growth

Accelerators

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 from the separation of or the results of 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.

Regulation G Non-GAAP reconciliation

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconcilation

$ and shares in millions

(unaudited)

2013

2012

2011

2010

2009

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

$14,589

$13,716

$13,201

$14,051

$13,497

Goodwill and certain other intangibles

(2,492)

(2,499)

(2,514)

(2,546)

(2,565)

Unrealized gains

(82)

(375)

(470)

(314)

(241)

Qualifying trust preferred securities

810

2,248

2,763

Other

(26)

Tier I capital

12,094

11,685

12,503

13,965

13,428

Less:

Preferred stock

(1,034)

(398)

(3,654)

(3,609)

Qualifying trust preferred securities

(60)

(810)

(2,248)

(2,763)

Qualifying noncontrolling interest in consolidated subsidiaries

(37)

(48)

(50)

(30)

Tier I common equity (a)

10,963

10,429

9,807

7,518

7,056

Risk-weighted assets, determined in accordance with

prescribed regulatory requirements (b)

116,736

109,699

104,945

100,561

100,933

Ratio:

Tier I common equity (a) / (b)

9.39%

9.51%

9.35%

7.48%

6.99%

Basel III -

Estimated Tier 1 common equity ratio

December

2013

Tier 1 common equity (Basel I)

$10,963

Add:

Adjustment related to capital components

$82

Estimated Tier 1 common equity under final Basel III rules without AOCI (opt out)(c)

$11,045

Add:

Adjustment related to AOCI

$82

Estimated Tier 1 common equity under final Basel III rules with AOCI (non opt out) (d)

$11,127

Estimated risk-weighted assets under final Basel III rules (e)

122,851

Estimated

Tier

common

equity

ratio

under

final

Basel

III

rules

(opt

out)

(c)

(e)

8.99%

Estimated

Tier

common

equity

ratio

under

final

Basel

III

rules

(non

opt

out)

(d)

(e)

9.06%

(c), (d)

(e)

Under the final Basel III rules, non-advanced approach banks are permitted to make a one-time election to opt out of the requirement to include AOCI in Tier 1 common equity.

Other

adjustments

include

mortgage

servicing

rights

and

deferred

tax

assets

subject

threshold

limitations

and

deferred

tax

liabilities

intangible

assets.

Key differences under Basel III in the calculation of risk-weighted assets compared to Basel I include: (1) Risk weighting for commitments under 1 year; (2) Higher risk weighting

for exposures to securitizations, past due loans, foreign banks and certain commercial real estate; (3) Higher risk weighting for mortgage servicing rights and deferred tax assets

that are under certain thresholds as a percent of Tier 1 capital; and (4) Derivatives are differentiated between exchange clearing and over-the-counter and the 50% risk-weight cap

is removed.

For the Year Ended

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