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

Attached files

file	filename
8-K - FORM 8-K - FIFTH THIRD BANCORP	d721163d8k.htm

Fixed Income Investor Update

May 6-7, 2014

Please refer to earnings release dated April 17, 2014 for further information.

Exhibit 99.1

Broad scope of products and services

addressing the needs of wide array of customers

Consumer Lending

Branch Banking

Wealth Management

Wholesale Banking

Retail Bank

Cards

Mortgage

Auto

2013

total

revenue

$560MM

2013

average

loans

$2.0B

2013

average

core

deposits

$8.8B

$26B

assets

under

management

$302B assets under care

2013 total revenue of $2.6B

2013 average loans of $47.3B

2013 average core deposits of $30.2B

2013 total revenue of $2.0B

2013 average loans of

$17.5B

1,311 banking centers

2,614 ATMs

12 states

2013

total

revenue

$1.1B

2013

average

loans

$22.2B

#12

mortgage

originator

(42

states)

bank

indirect

auto

originator

(45 states)

Private Bank

Retail Brokerage

Institutional Services

Commercial Bank

Footprint

Business

Lines

Highlights

In footprint markets

National consumer lending

In footprint markets

National commercial banking

Diversified financial services company operating in 12 states

Source: Inside Mortgage Finance

Source:

Experian

Auto

Count.

Loans

(excluding

leases)

originated by

franchised

dealers.

Prime

banks

only -

excludes

captives

and

non

primes.

Capital

One

excluded

because

they

are

primarily non-prime. Ally is excluded because they were primarily a captive.

Advantaged size & scope in current environment

Source: SNL Financial. Rankings based on U.S. headquartered commercial banks, excludes trust banks.

Data as of 3/31/14

Regulatory Positioning

•

Fifth Third’s business model is

driven by traditional banking

activities, consistent with direction

of financial reform

•

Known Dodd-Frank Act and

Basel III requirements do not

require substantial changes to

Fifth Third’s business model or

asset mix with attendant execution

risk

•

Little to no impact from Volcker

Rule following 1Q14 sale of all

CLOs; small private equity

portfolio remains <$200MM

•

Making progress toward building

an LCR compliance buffer pending

final rules

$2.5T

$2.2T

$1.9T

$1.5T

$371B

$323B

$291B

$185B

$180B

$130B

$118B

$91B

$89B

$66B

$61B

$56B

$44B

$38B

$37B

$30B

JPM

BAC

WFC

USB

PNC

COF

BBT

STI

FITB

KEY

MTB

CMA

HBAN

ZION

FRC

FNFG

BPOP

CYN

Total Assets

$1.3T

$1.1T

$966B

$261B

$222B

$208B

$133B

$127B

$97B

$93B

$69B

$67B

$54B

$49B

$47B

$34B

$28B

$27B

$26B

JPM

BAC

WFC

USB

PNC

COF

STI

BBT

FITB

MTB

KEY

CMA

HBAN

ZION

FRC

FNFG

BPOP

CYN

Total Deposits

2013: A record year

Return on avg. assets

Net income to common ($MM)

Generated highest level of net

income in Company’s history

Improving profitability approaching

target for normalized environment

Net charge-off ratio

Problem assets at lowest

levels in five years

ALLL / NPLs

Coverage levels among

strongest in the industry

Capital ratios above regulatory

well-capitalized levels

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

2013 is net of the issuance of shares valued at $398MM related to the Series G preferred stock conversion on July 1, 2013.

3 R

epurchases of shares in the amount of after-tax gains on the sale of Vantiv shares.

Total payout ratio

Net payouts to shareholders

$1.3B in

2013

100% of

gains

45% of

earnings

ex-Vantiv

gains

Tier 1 common ratio

$511

$503

$1,094

$1,541

$1,799

2009

2010

2011

2012

2013

0.64%

0.67%

1.15%

1.34%

1.48%

2009

2010

2011

2012

2013

7.0%

7.5%

9.4%

9.5%

9.4%

2009

2010

2011

2012

2013

23%

21%

23%

31%

39%

12%

2009

2010

2011

2012

2013

Common Dividends

Declared

Share Repurchases

ex-Vantiv

Share Repurchases

Vantiv

11%

26% of

earnings

ex-Vantiv

gains

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

•

Earnings per diluted share of $0.36

•

Operating results in line with our expectations, driven by healthy balance sheet with

strong growth potential and well-controlled expenses

•

Despite several large credits that elevated net charge-offs, portfolio asset quality

continues to improve; total delinquencies and nonperforming assets remain at low levels

First quarter 2014 earnings highlights

Non-GAAP

measure;

see

Reg.

reconciliation

appendix.

Capital

ratios

estimated;

presented under current U.S.

capital

regulations.

The

pro

forma Basel III

Tier

common

equity

ratio

management’s

estimate

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

•

Traditional commercial banking franchise utilizing an affiliate-based model supported with

strong national businesses

—

Segment and industry specialization in mid-corporate, energy, and healthcare

•

Top 3 deposit market share in key markets with focus on further improving share of wallet

•

Redesigning retail distribution strategy and prioritizing key segments in consumer bank

•

Growing regional wealth management and brokerage services

•

Tier 1 common ratio of 9.5% (Basel III pro forma estimate of ~9.1%)

•

Repurchased 8MM common shares in 1Q14; 4Q13 and 1Q14 transactions reduced

average diluted share count by 23MM

•

2014 CCAR plan not objected to by Federal Reserve Board, includes the potential

increase in the quarterly common stock dividend and potential repurchase of common

Strong

Operating

Results

Executing on

Strategic

Plans

Prudent

Capital

Management

Net interest income, margin & balance sheet

Average core deposit balances ($B)

$91.5

$84.9

Loan balances ($B)

NII and NIM (FTE)

$885

$893

$885

$898

$905

•

Growth in NII despite NIM contraction (adjusted for day

count)

•

Changed composition and size of investment portfolio

beginning in 3Q13; expect benefit to NII in future

quarters

•

New origination spreads remain tight (reflects

increased level of competition, impact of better credit,

and relationship profitability approach)

•

Coupons on new fixed rate loan originations continue

to converge with portfolio avg. coupons (~40% of loan

book is fixed)

•

Increase in short-term LIBOR rates key driver for long-

term upside on NIM

$898

$85.9

$86.7

$87.3

$87.9

$89.5

3.0%

3.1%

3.2%

3.3%

3.4%

3.5%

3.6%

3.7%

3.8%

3.9%

3.42%

3.33%

3.31%

3.21%

3.22%

1Q13

2Q13

3Q13

4Q13

1Q14

Net Interest Income ($MM)

NIM

$870

$875

$880

$885

$890

$895

$900

$905

$910

1Q13

2Q13

3Q13

4Q13

1Q14

Transaction deposits

Other time deposits

$80.9

$81.7

$83.2

$85.7

$87.9

1Q13

2Q13

3Q13

4Q13

1Q14

Avg Coml HFI

Avg Cons HFI

Disciplined expense management

•

Expect continued improvement in

2014

•

Mid-50% efficiency ratio target

Expense trend ($MM)

Operating leverage is a strategic priority in all environments

Efficiency ratio trend

1Q13 -

1Q14 Mortgage

Expense Reduction

•

~$55MM of mortgage-related cost

reductions in 3Q13 -

1Q14

–

Eliminated overtime and

contract work, some full-time

employee costs and lower

incentive comp due to the

lower origination volumes

•

Full-year expenses declined 3%

–

Included 4% increase in

technology and communications

expense and $159MM in additions

to litigation reserves

$4,500

$4,000

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

2012

2013

42%

17%

19%

Sales Compensation

Fulfillment Compensation

Benefits

Loan & Lease Expense

60%

59%

60%

61%

65%

60%

62%

59%

53%

60%

1Q13

2Q13

3Q13

4Q13

1Q14

Efficiency Ratio

Adjusted efficiency ratio

Other

•

Will continue R&D investments with

increased technology,

communications, and equipment

expense in 2014

•

Will continue to manage

expenses in mortgage business

efficiently in 2014

–

Normalized interest rate

environment

Significant items reflected in “Adjusted efficiency ratio” for all quarters listed on page 15 in the appendix.

Credit quality overview

$112

Net charge-offs ($MM)

$109

$168

4Q13 and 1Q14 net charge-offs elevated;

broader portfolio still at low levels

$133

NCO ratio

0.63%

0.51%

0.49%

0.67%

0.76%

$148

HFI Nonperforming assets ($MM)

$1,210

$1,150

$1,014

$946

$980

NPAs down 22% from 1Q13;

lowest level since 2007

Reserve Coverage

Accruing Past Due ($MM)

$470

$410

$414

$337

$379

Includes 1Q14 provision expense of $69MM;

reserve coverage levels remain among best-in-class.

Total delinquencies declined 28% from 1Q13;

remain at very low levels

NPA ratio 1.41% 1.32% 1.16% 1.10% 1.05%

$500

$450

$400

$350

$300

$250

$200

$150

$100

$50

1Q13

2Q13

3Q13

4Q13

1Q14

30-89 Days Past Due

90+ Days Past Due

1Q13

2Q13

3Q13

4Q13

1Q14

164

152

156

103

306

258

276

243

828

794

680

607

595

1Q13

2Q13

3Q13

4Q13

1Q14

$1,250

$1,000

$750

$500

$250

Commercial

Consumer

Commercial

Consumer

382

356

334

373

351

105

$175

$150

$125

$100

$75

$50

$25

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

1Q13

2Q13

3Q13

4Q13

1Q14

$1,783

$1,735

$1,677

$1,483

$1,582

$2,000

$1,500

$1,000

$500

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

ALLL / Loans and Leases

2.08%

1.99%

1.92%

1.79%

1.65%

Capital management –

core focus

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

Capital ratios estimated; 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

Tier

common

equity

$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

Common Shares Outstanding (MM)

and Tangible Book Value per share

Basel III

Est.

9.0%²

Basel III

Est.

9.1%²

Basel III

Est.

9.5%²

•

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:

$200

$400

$600

$800

$1,000

$1,200

$1,400

2013 Net Payouts

($MM)

9.7%

9.4%

9.9%

9.4%

9.5%

10%

1Q13

2Q13

3Q13

4Q13

1Q14

913

901

888

878

858

$12.62

$12.69

$13.09

$13.00

$13.40

650

700

750

800

850

900

$11.00

$11.50

$12.00

$12.50

$13.00

$13.50

$14.00

1Q13

2Q13

3Q13

4Q13

1Q14

Common Shares O/S

TBV per share

–

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

recent prospective regulatory capital requirements approved in July 2013.

Available and contingent borrowing capacity

(1Q14):

–

FHLB ~$11B available, ~$12B total

–

Federal Reserve ~$29B

Holding Company cash at 3/31/14: $2.4B

Cash currently sufficient to satisfy all fixed

obligations in a stressed environment for over

21 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)

Heavily core funded

Strong liquidity profile

S-T

wholesale

$1,250

$500

2,312

2014

2015

2016

2017

2018

2019

2020 on

Fifth Third Bancorp

Fifth Third Capital Trust (Bancorp)

$415

$500

$2,450

$600

2014

2015

2016

2017

2018

2019

2020 On

Demand

24%

Interest

checking

20%

Savings/

MMDA

23%

Consumer

time

Foreign

Office

Non-Core

Deposits

S-T

borrowings

Other

liabilities

Equity

11%

L-T debt

Bank

unsecured

debt

maturities

($MM

–

excl.

Brokered

CDs)

Liquidity management

Over

the

past

two

years,

Fifth

Third

has

taken

number

steps

strengthen

the

overall

liquidity

position of the bank and to strengthen overall liquidity risk management. These items include:

—

A shift to a more core-funded balance sheet, with a focus on relationship deposits

—

Decreased reliance on unsecured short-term funding and less stable funding sources

—

Increased efficiency in mobilizing assets for funding and contingent liquidity purposes

–

Better

recognition

the

liquidity

value

various

assets,

and

the

ease

with

which

those

assets can be utilized for funding

—

The implementation of additional liquidity metrics to enhance liquidity and funding management

Liquidity measures are significantly improved relative to pre-crisis levels:

Liquidity Comparison

June 30, 2008

June 30, 2012

Current

Total Wholesale Funding Portfolio

$35 Billion

$18 Billion

$19 Billion

% Maturing within 1 Year

61%

47%

31%

Total FHLB Borrowings

$6 Billion

$4.2 Billion

$1.5 Billion

Brokered CDs

$6 Billion

$2.2 Billion

Overnight Borrowings

$3 Billion

$340 Million

Total Secured Borrowing Capacity

$13 Billion

$32 Billion

$39 Billion

Core Deposits / Total Loans & Leases

75%

93%

102%

Core Deposits

$64 Billion

$82 Billion

$92 Billion

Fifth Third will continue to focus on core funding, asset liquidity, and contingent funding sources,

while maintaining a low reliance on unsecured short-term funding and more volatile funding sources.

Valuable ownership stake in Vantiv, Inc.

March 2009

Significant unrecognized value unlocked

March

2009

–

Present

Realizing earning potential

Ongoing impact

Positioned well to generate future value

$2.35 billion

enterprise value

Debt incurred

Equity value

Before

Fifth

Third’s

valuation

warrants,

put

rights,

and

minority

interest

discounts

expected

reduce

its

implied

valuation

the

business

estimated

$50

million.

•

Equity valuation of $1.1B

–

Including $561MM cash payment

related to Advent’s 51% ownership

and put rights

–

Fifth Third retained 49% ownership

with additional warrants

Recognized value to date

($MM pre-tax)

•

Currently own 26% interest in

Vantiv Holding, LLC, convertible to

Vantiv, Inc. shares (NYSE: VNTV)

–

Carrying (book) value of

$437MM as of 3/31/14

–

Ownership (market) value of

~$1.5B as of 3/31/14

•

Ongoing equity method earnings

•

Warrant to purchase additional

shares in Vantiv

–

Carried as a derivative asset at

fair value of $348MM as of

3/31/14

•

Annual payment corresponding

with tax benefits accruing to Fifth

Third associated with the tax

receivable agreement (TRA)

–

Vantiv reported FITB TRA at a

gross value of $551MM as of

1Q14

–

FITB realized $9MM in 4Q13

Equity ownership & earnings

Total gains / earnings recognized ~$3 billion

$1.10B

$1.25B

Enterprise Value Components

$115

$493

$299

$250

Gain on IPO

Gains on share

sales and TRA

Net put and

warrant

valuation gains

Equity method

earnings

83.9

70.2

48.8

$20

$40

$60

$80

2011

2012

2013

Class B shares (MM)

Equity method earnings ($MM)

•

Pre-tax gain of $1.8B

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 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.

Appendix

Pre-tax

pre-provision

earnings

PPNR trend

PPNR declined 17% sequentially, reflecting impact of $83MM and $9MM in net detriments to 1Q14 and 4Q13,

respectively. Excluding those items, adjusted PPNR declined 5% from 4Q13, driven by seasonal increase in

FICA

and

unemployment

tax

expense

and

lower

mortgage

banking

net

revenue.

PPNR reconciliation

$608

$632

$603

$623

$590

$100

$200

$300

$400

$500

$600

$700

1Q13

2Q13

3Q13

4Q13

1Q14

Adjusted PPNR

PPNR $653 $905 $655

$614 $507

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

($ in millions)

1Q13

2Q13

3Q13

4Q13

1Q14

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

$591

$841

$604

$561

$438

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

PPNR (a) + (b)

$653

$905

$655

$614

$507

Gain from sales of Vantiv shares

(242)

(85)

Vantiv warrant valuation

(34)

(76)

(6)

(91)

Other Vantiv-related income

(9)

Valuation of 2009 Visa total return swap

(1)

Sale of certain Fifth Third funds

(7)

BOLI settlement

(10)

Securities (gains) / losses

(17)

(2)

(7)

Debt extinguishment (gains) / losses

Severance expense

Large bank assessment fees

Gain on sale of affordable housing investments

(9)

(2)

(1)

Donation to Fifth Third Foundation

Litigation reserve charges

Adjusted PPNR

$608

$632

$603

$623

$590

In noninterest expense

(12)

Credit-adjusted

PPNR

$642

$673

$624

$616

$609

Adjustments

remove

(benefit)

detriment

noninterest

income:

noninterest

expense:

In noninterest income

Credit-related

items:

Prior quarters include similar adjustments.

There

are

limitations

the

usefulness

credit-adjusted

PPNR,

including

the

significant

degree

which

changes

credit

and

fair

value

are

integral,

recurring

components

the

Bancorp’s

core

operations

financial

institution.

This

measure

has

been

included

herein

facilitate

greater

understanding

the

Bancorp’s

financial

condition.

Note:

1Q14,

2Q13,

and

1Q13

included

the

impact

$3MM,

$20MM,

and

$22MMM,

respectively

mortgage

repurchase

provision.

4Q13

and

3Q13

also

included

benefits

the

mortgage

repurchase

provision

$28MM

and

$4MM,

respectively.

These

impacts

are

reflected

“Credit-related

items”

and

“Adjusted

Efficiency

Ratio”

listed

above.

Fifth Third Debt Ratings

As of 4/21/14

Short Term Debt

Short Term Issuer

A-2

ST Issuer Default

Short Term

R-1L

Long Term Issuer

Baa1

Long Term Issuer

BBB+

Long Term Issuer

Outlook

Stable

Outlook

Stable

Outlook

Stable

Outlook

Stable

Short Term Debt

P-2

Short Term Issuer

A-2

ST Issuer Default

Short Term

R-1L

Long Term Issuer

A-

Long Term Issuer

Long Term Deposit

A+

Senior Unsecured

Fifth Third Bancorp

Fifth Third Bank (OH)

Moody's

Standard & Poor's

Fitch

DBRS

Moody's

Standard & Poor's

Fitch

DBRS

Regulation G Non-GAAP reconciliation

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconcilation

$ and shares in millions

(unaudited)

March

December

September

June

March

2014

2013

Income before income taxes (U.S. GAAP)

$438

$561

$604

$841

$591

Add:

Provision expense (U.S. GAAP)

Pre-provision net revenue (a)

507

614

655

905

653

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

309

383

421

582

413

Add:

Intangible amortization, net of tax

Tangible net income available to common shareholders

310

384

422

583

414

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

1,257

1,523

1,674

2,338

1,679

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

14,862

14,757

14,440

14,221

13,779

Less:

Average preferred stock

(1,034)

(703)

(593)

(717)

(398)

Average goodwill

(2,416)

Average intangible assets

(19)

(20)

(22)

(24)

(26)

Average tangible common equity (c)

11,393

11,618

11,409

11,064

10,939

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

14,826

14,589

14,641

14,239

13,882

Less:

Preferred stock

(1,034)

(593)

(991)

(398)

Goodwill

(2,416)

Intangible assets

(18)

(19)

(21)

(23)

(25)

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

11,358

11,120

11,611

10,809

11,043

Less: Accumulated other comprehensive income

(196)

(82)

(218)

(149)

(333)

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

11,162

11,038

11,393

10,660

10,710

Total assets (U.S. GAAP)

129,654

130,443

125,673

123,360

121,382

Less:

Goodwill

(2,416)

Intangible assets

(18)

(19)

(21)

(23)

(25)

Tangible assets, including unrealized gains / losses (f)

127,220

128,008

123,236

120,921

118,941

Less: Accumulated other comprehensive income / loss, before tax

(302)

(126)

(335)

(229)

(512)

Tangible assets, excluding unrealized gains / losses (g)

126,918

127,882

122,901

120,692

118,429

Common shares outstanding (h)

848

855

887

851

875

Ratios:

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

11.0%

13.1%

14.7%

21.1%

15.4%

Tangible

common

equity

(excluding

unrealized

gains/losses)

(e)

(g)

8.79%

8.63%

9.27%

8.83%

9.03%

Tangible

common

equity

(including

unrealized

gains/losses)

(d)

(f)

8.93%

8.69%

9.42%

8.94%

9.28%

Tangible book value per share (d) / (h)

13.40

13.00

13.09

12.69

12.62

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)

March

December

September

June

March

2014

2013

2012

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

$14,826

$14,589

$14,641

$14,239

$13,882

Goodwill and certain other intangibles

(2,490)

(2,492)

(2,496)

(2,504)

Unrealized gains

(196)

(82)

(219)

(149)

(333)

Qualifying trust preferred securities

810

Other

(18)

Tier I capital

12,182

12,094

12,762

12,426

11,878

Less:

Preferred stock

(1,034)

(593)

(991)

(398)

Qualifying trust preferred securities

(60)

(810)

Qualifying noncontrolling interest in consolidated subsidiaries

(1)

(37)

(39)

(38)

Tier I common equity (a)

11,087

10,963

11,320

10,587

10,632

Risk-weighted assets, determined in accordance with

prescribed regulatory requirements (b)

116,622

116,736

114,544

112,285

109,626

Ratio:

Tier I common equity (a) / (b)

9.51%

9.39%

9.88%

9.43%

9.70%

Basel III -

Estimated Tier 1 common equity ratio

March

December

September

2014

2013

Tier 1 common equity (Basel I)

$11,087

$10,963

$11,320

Add:

Adjustment related to capital components

$99

$82

$88

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

$11,186

$11,045

$11,408

Add:

Adjustment related to AOCI

$196

$82

$218

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

$11,382

$11,127

$11,626

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

122,659

122,851

120,447

Estimated

Tier

common

equity

ratio

under

final

Basel

III

rules

(opt

out)

(c)

(e)

9.12%

8.99%

9.47%

Estimated

Tier

common

equity

ratio

under

final

Basel

III

rules

(non

opt

out)

(d)

(e)

9.28%

9.06%

9.65%

(c), (d)

(e)

For the Three Months Ended

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

percent

Tier

capital;

and

(4)

Derivatives

are

differentiated

between

exchange

clearing

and

over-the-counter

and

the

50% risk-weight

cap is removed.

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%

For the Year Ended

Attached files

Stock widget

Investing forum