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

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8-K - FORM 8-K - FIFTH THIRD BANCORP	d911546d8k.htm
EX-99.2 - EX-99.2 - FIFTH THIRD BANCORP	d911546dex992.htm
EX-99.3 - EX-99.3 - FIFTH THIRD BANCORP	d911546dex993.htm

Exhibit 99.1




		News Release

CONTACTS:	Jim Eglseder (Investors)	FOR IMMEDIATE RELEASE
	(513) 534-8424	April 21, 2015
	Laura Wehby (Investors)
	(513) 534-7407
	Larry Magnesen (Media)
	(513) 534-8055

FIFTH THIRD ANNOUNCES FIRST QUARTER 2015 NET INCOME TO COMMON SHAREHOLDERS OF $367 MILLION, OR $0.44 PER DILUTED SHARE

•

1Q15 net income available to common shareholders of $367 million, or $0.44 per diluted common share

•

Includes a $70 million pre-tax (~$46 million after tax) positive valuation adjustment on the warrant Fifth Third holds in Vantiv, $37 million pre-tax (~$24 million after tax) gain on the sale of held-for-sale residential mortgage loans classified as troubled debt restructurings (TDRs), and a $17 million pre-tax (~$11 million after tax) charge related to the valuation of the Visa total return swap, resulting in a net $0.07 impact on earnings per share

•

1Q15 return on average assets (ROA) of 1.12%; return on average common equity of 10.3%; return on average tangible common equity** of 12.3%

•

Pre-provision net revenue (PPNR)** of $584 million in 1Q15

•

Net interest income (FTE) of $852 million, down 4 percent sequentially and down 5 percent from 1Q14; net interest margin of 2.86%, down 10 basis points sequentially

•

Average portfolio loans of $90.5 billion, down $533 million sequentially due to the transfer of $720 million of residential mortgage TDRs to held-for-sale in 4Q14 (reduced average balances by $694 million); loans up $978 million from 1Q14 driven by increases in C&I loans

•

Noninterest income of $660 million compared with $653 million in the prior quarter; impacted by the gain on sale of residential mortgage TDRs in 1Q15 and valuations on the Vantiv warrant in both quarters

•

Noninterest expense of $923 million, up 1 percent from prior quarter driven by seasonally higher compensation-related expenses, partially offset by lower credit-related costs

•

Credit trends

•

Net charge-offs declined 46 percent year-over-year; 1Q15 net charge-offs of $91 million (0.41% of loans and leases) vs. 4Q14 NCOs of $191 million (0.83% of loans and leases) which included $87 million of charge-offs related to the transfer of residential mortgage TDRs to held-for-sale and 1Q14 NCOs of $168 million (0.76% of loans and leases)

•

Portfolio NPA ratio of 0.76% down 6 bps from 4Q14, NPL ratio of 0.57% down 7 bps from 4Q14; total nonperforming assets (NPAs) of $693 million, including loans held-for-sale (HFS), declined $90 million sequentially

•

1Q15 provision expense of $69 million; $99 million in 4Q14 (including the $23 million impact related to the transfer of loans held-for-sale) and $69 million in 1Q14

•

Strong capital ratios*

•

Common equity Tier 1 ratio 9.62%

•

Tier 1 risk-based capital ratio 10.74%, Total risk-based capital ratio 14.16%, Leverage ratio 9.61%

•

Tangible common equity ratio** of 8.78%; 8.41% excluding securities portfolio unrealized gains/losses

•

9 million reduction in average diluted share count

•

Book value per share of $17.85 up 3 percent from 4Q14 and up 10 percent from 1Q14; tangible book value per share** of $14.87

*	Capital ratios estimated; presented under current U.S. capital regulations.

**	Non-GAAP measure; see Reg. G reconciliation on page 32.

Fifth Third Bancorp (Nasdaq: FITB) today reported first quarter 2015 net income of $382 million versus net income of $385 million in the fourth quarter of 2014 and $318 million in the first quarter of 2014. After preferred dividends, net income available to common shareholders was $367 million, or $0.44 per diluted share, in the first quarter of 2015, compared with $362 million, or $0.43 per diluted share, in the fourth quarter of 2014, and $309 million, or $0.36 per diluted share, in the first quarter of 2014.

First quarter 2015 included:

Income

•

$70 million positive valuation adjustment on the Vantiv warrant

•

$37 million gain on the sale of residential mortgage loans classified as troubled debt restructurings

•

($17 million) charge related to the valuation of the Visa total return swap

Expenses

•

($2 million) in litigation reserve charges

Fourth quarter 2014 included:

Income

•

$56 million positive valuation adjustment on the Vantiv warrant

•

$23 million annual payment received from Vantiv pursuant to tax receivable agreement

•

($19 million) charge related to the valuation of the Visa total return swap

Expenses

•

$3 million reversal of litigation reserves

Results also included $23 million of provision expense related to the transfer of residential mortgage loans classified as troubled debt restructurings to held-for-sale.

First quarter 2014 included:

Income

•

($36 million) negative valuation adjustment on the Vantiv warrant

•

$1 million benefit related to the valuation of the Visa total return swap

Expenses

•

($51 million) in litigation reserve charges

Earnings Highlights


	For the Three Months Ended															% Change
	March 2015			December 2014			September 2014			June 2014			March 2014			Seq			Yr/Yr
Earnings ($ in millions)
Net income attributable to Bancorp	$	382		$	385		$	340		$	439		$	318			(1	%)		20	%
Net income available to common shareholders	$	367		$	362		$	328		$	416		$	309			1	%		15	%
Common Share Data
Earnings per share, basic		0.45			0.44			0.39			0.49			0.36			2	%		25	%
Earnings per share, diluted		0.44			0.43			0.39			0.49			0.36			2	%		22	%
Cash dividends per common share		0.13			0.13			0.13			0.13			0.12			—			8	%
Financial Ratios
Return on average assets		1.12	%		1.13	%		1.02	%		1.34	%		1.00	%		—			12	%
Return on average common equity		10.3			10.0			9.2			11.9			9.0			2	%		13	%
Return on average tangible common equity^(b)		12.3			12.1			11.1			14.4			11.0			2	%		12	%
Tier I risk-based capital^(c)		10.74			10.83			10.83			10.80			10.45			(2	%)		1	%
Common equity Tier I^(c)		9.62			N/A			N/A			N/A			N/A			N/A			N/A
Tier I common equity^(b)		N/A			9.65			9.64			9.61			9.51			N/A			N/A
Net interest margin^(a)		2.86			2.96			3.10			3.15			3.22			(3	%)		(11	%)
Efficiency^(a)		61.0			59.6			62.1			58.2			64.9			2	%		(6	%)
Common shares outstanding (in thousands)		815,190			824,047			834,262			844,489			847,569			(1	%)		(4	%)
Average common shares outstanding (in thousands):
Basic		810,210			819,057			829,392			838,492			845,860			(1	%)		(4	%)
Diluted		818,672			827,831			838,324			848,245			857,924			(1	%)		(5	%)

(a)

Presented on a fully taxable equivalent basis.

(b)

These ratios have been included herein to facilitate a greater understanding of the Bancorp’s capital structure and financial condition. See the Regulation G Non-GAAP Reconciliation table for a reconciliation of these ratios to U.S. GAAP.

(c)

Under the banking agencies’ Basel III Final Rule, assets and credit equivalent amounts of off-balance sheet exposures are calculated according to the standardized approach for risk-weighted assets. The resulting values are added together resulting in the Bancorp’s total risk-weighted assets used in the calculation of the tier I risk-based capital and common equity tier 1 ratios beginning January 1, 2015. Current period regulatory capital ratios are estimated.

The percentages in all of the tables in this earning release are calculated on actual dollar amounts and not the rounded dollar amounts.

NA: Not applicable.

“Our results this quarter were solid despite the impact of expected first quarter seasonality and challenging market conditions, and reflect the strength of our franchise in generating strong shareholder returns resulting from our strategic decisions to build and invest in our businesses. We are very focused on growing businesses that will operate profitably in all environments by deepening our relationships with customers and managing our risk exposures to achieve optimal returns for our shareholders. Our quarterly results include the significant value that we have achieved in our Vantiv investment and the gain on the sale of our TDR loans, which is another step toward reducing future sources of potential volatility,” said Kevin Kabat, CEO of Fifth Third Bancorp.

“First quarter net income of $382 million, which reflected record investment advisory revenue and solid mortgage banking revenue growth, produced an ROA of 1.12% and ROE of 10.3%. These results included the impact of the NII decline associated with the changes in our deposit advance product in the quarter.

“Our loan growth, especially in the C&I category, was weaker at the end of last year which impacted the starting balances early in the quarter, but we were encouraged by better activity in February and March. Average loans increased 2 percent compared with the year ago quarter with continued strength in C&I lending, which was up 3 percent, and growth in commercial real estate and bankcard loans of 4 percent each.

“Credit results were very good, resulting in net charge-offs of 41 bps for the quarter, with commercial loan net charge-offs of 29 bps and consumer loan net charge-offs of 59 bps. Total delinquencies also continued to be at very low levels and were highlighted by total non-performing assets, which were down 11 percent compared with last quarter.

“Average core deposits were up 2 percent sequentially, with 6 percent growth in interest checking, and were up 7 percent year over year, with demand deposit growth of 10 percent.

“During the quarter, we received a non-objection from the Federal Reserve for our 2015 CCAR plan. That plan demonstrates the strength of Fifth Third’s current capital levels and our resiliency under stress conditions. We are pleased to be able to continue the measured return of capital to shareholders under our 2015 CCAR plan.”

Income Statement Highlights


	For the Three Months Ended										% Change
	March 2015		December 2014		September 2014		June 2014		March 2014		Seq			Yr/Yr
Condensed Statements of Income ($ in millions)
Net interest income (taxable equivalent)	$	852	$	888	$	908	$	905	$	898		(4	%)		(5	%)
Provision for loan and lease losses		69		99		71		76		69		(30	%)		—
Total noninterest income		660		653		520		736		564		1	%		17	%
Total noninterest expense		923		918		888		954		950		1	%		(3	%)

Income before income taxes (taxable equivalent)		520		524		469		611		443		(1	%)		18	%

Taxable equivalent adjustment		5		5		5		5		5		NM			NM
Applicable income taxes		133		134		124		167		119		(1	%)		11	%

Net income		382		385		340		439		319		(1	%)		20	%
Less: Net income attributable to noncontrolling interests		—		—		—		—		1		NM			(61	%)

Net income attributable to Bancorp		382		385		340		439		318		(1	%)		20	%
Dividends on preferred stock		15		23		12		23		9		(35	%)		60	%

Net income available to common shareholders		367		362		328		416		309		1	%		15	%

Earnings per share, diluted	$	0.44	$	0.43	$	0.39	$	0.49	$	0.36		2	%		22	%

Net Interest Income


	For the Three Months Ended															% Change
	March 2015			December 2014			September 2014			June 2014			March 2014			Seq			Yr/Yr
Interest Income ($ in millions)
Total interest income (taxable equivalent)	$	975		$	1,016		$	1,023		$	1,013		$	998			(4	%)		(2	%)
Total interest expense		123			128			115			108			100			(4	%)		22	%

Net interest income (taxable equivalent)	$	852		$	888		$	908		$	905		$	898			(4	%)		(5	%)

Average Yield
Yield on interest-earning assets (taxable equivalent)		3.28	%		3.38	%		3.49	%		3.53	%		3.58	%		(3	%)		(8	%)
Rate paid on interest-bearing liabilities		0.60	%		0.61	%		0.56	%		0.54	%		0.51	%		(3	%)		16	%

Net interest rate spread (taxable equivalent)		2.68	%		2.77	%		2.93	%		2.99	%		3.07	%		(3	%)		(13	%)

Net interest margin (taxable equivalent)		2.86	%		2.96	%		3.10	%		3.15	%		3.22	%		(3	%)		(11	%)
Average Balances ($ in millions)
Loans and leases, including held for sale	$	91,659		$	91,581		$	91,428		$	91,241		$	90,238			—			2	%
Total securities and other short-term investments		29,038			27,604			24,927			23,940			22,940			5	%		27	%
Total interest-earning assets		120,697			119,185			116,355			115,181			113,178			1	%		7	%
Total interest-bearing liabilities		83,339			82,544			81,157			80,770			79,130			1	%		5	%
Bancorp shareholders’ equity		15,820			15,644			15,486			15,157			14,862			1	%		6	%

Net interest income of $852 million on a fully taxable equivalent basis decreased $36 million from the fourth quarter, as expected, primarily driven by a $21 million negative impact of the previously announced changes to the Bancorp’s deposit advance product that were effective January 1, 2015. Additionally, net interest income was negatively impacted by $13 million due to fewer days in the quarter. Otherwise, the effects of lower deposit costs and increased investment securities balances generally offset the negative effect of loan repricing during the quarter.

The net interest margin was 2.86 percent, a decrease of 10 bps from the previous quarter primarily driven by a 7 basis point impact due to the changes to the deposit advance product, 3 basis point impact of loan repricing and 2 basis point impact of higher cash balances as we continue to experience strong deposit flows. Day count benefitted the net interest margin by 3 basis points in the quarter.

Compared with the first quarter of 2014, net interest income decreased $46 million and the net interest margin decreased 36 bps. The decline in net interest income was driven by the effect of the aforementioned changes to the deposit advance product as well as continued loan repricing. Otherwise, the impact of higher investment securities balances and loan balances generally offset the impact of higher interest expense resulting from increased long-term debt balances. The decline in the net interest margin was primarily driven by the impact of loan repricing.

Securities

Average securities and other short-term investments were $29.0 billion in the first quarter of 2015 compared with $27.6 billion in the previous quarter and $22.9 billion in the first quarter of 2014. Average securities of $23.2 billion increased $733 million from the prior quarter reflecting purchases of securities. Other short-term investments average balances of $5.9 billion increased $701 million sequentially. On an end of period basis, securities balances of $27.0 billion increased $4.0 billion driven by purchases of securities towards the end of the quarter and other short-term investments decreased $3.0 billion reflecting lower cash balances held at the Federal Reserve.

Loans


	For the Three Months Ended										% Change
	March 2015		December 2014		September 2014		June 2014		March 2014		Seq			Yr/Yr
Average Portfolio Loans and Leases ($ in millions)
Commercial:
Commercial and industrial loans	$	41,426	$	41,277	$	41,477	$	41,374	$	40,377		—			3	%
Commercial mortgage loans		7,241		7,480		7,633		7,885		7,981		(3	%)		(9	%)
Commercial construction loans		2,197		1,909		1,563		1,362		1,116		15	%		97	%
Commercial leases		3,715		3,600		3,571		3,555		3,607		3	%		3	%

Subtotal—commercial loans and leases		54,579		54,266		54,244		54,176		53,081		1	%		3	%

Consumer:
Residential mortgage loans		12,433		13,046		12,785		12,611		12,659		(5	%)		(2	%)
Home equity		8,802		8,937		9,009		9,101		9,194		(2	%)		(4	%)
Automobile loans		11,933		12,073		12,105		12,070		12,023		(1	%)		(1	%)
Credit card		2,321		2,324		2,295		2,232		2,230		—			4	%
Other consumer loans and leases		440		395		361		359		343		11	%		28	%

Subtotal—consumer loans and leases		35,929		36,775		36,555		36,373		36,449		(2	%)		(1	%)

Total average loans and leases (excluding held for sale)	$	90,508	$	91,041	$	90,799	$	90,549	$	89,530		(1	%)		1	%
Average loans held for sale		1,151		540		629		692		708		NM			63	%

Average loan and lease balances (excluding loans held-for-sale) decreased $533 million, or 1 percent, sequentially and increased $978 million, or 1 percent, from the first quarter of 2014. The sequential decrease in average loans and leases was primarily driven by declines in residential mortgage due to the transfer of certain residential mortgage loans classified as troubled debt restructurings to held-for-sale at the end of the fourth quarter of 2014, which reduced average loans by $694 million. The increase from the prior year was driven by increased commercial and industrial (C&I) balances. Period end loans and leases (excluding loans held-for-sale) of $91.2 billion increased $1.2 billion sequentially, and increased $1.5 billion, or 2 percent, from a year ago primarily driven by increases in C&I loans.

Average commercial portfolio loan and lease balances increased $313 million, or 1 percent, sequentially and increased $1.5 billion, or 3 percent, from the first quarter of 2014. Average C&I loans increased $149 million from the prior quarter and increased $1.0 billion from the first quarter of 2014. Within commercial real estate, average commercial mortgage balances continued to decline and average commercial construction balances increased for the ninth consecutive quarter. In total, average commercial real estate balances increased $49 million sequentially and $341 million from the prior year. Commercial line usage, on an end of period basis, was 32 percent of committed lines in the first quarter of 2015 compared with 32 percent in the fourth quarter of 2014 and 30 percent in the first quarter of 2014.

Average consumer portfolio loan and lease balances decreased $846 million, or 2 percent, sequentially and decreased $520 million, or 1 percent, year-over-year. Average residential mortgage loans decreased 5 percent sequentially and 2 percent from a year ago driven by loans transferred to held for sale at the end of the fourth quarter. Average auto loans declined 1 percent on a sequential and year-over-year basis. Average home equity loans declined 2 percent sequentially and 4 percent from the first quarter of 2014. Average credit card loans were flat sequentially and increased 4 percent from the first quarter of 2014.

Average loans held-for-sale balances of $1.2 billion increased $611 million sequentially primarily due to the transfer of certain residential mortgage loans classified as troubled debt restructurings to held-for-sale in the fourth quarter of 2014 and increased $443 million compared with the first quarter of 2014. Period end loans held-for-sale of $724 million decreased $537 million from the previous quarter due to $568 million of residential mortgage loans subsequently sold in the first quarter and decreased $56 million from the first quarter of 2014.

Deposits


	For the Three Months Ended										% Change
	March 2015		December 2014		September 2014		June 2014		March 2014		Seq			Yr/Yr
Average Deposits ($ in millions)
Demand	$	33,760	$	33,301	$	31,790	$	31,275	$	30,626		1	%		10	%
Interest checking		26,885		25,478		24,926		25,222		25,911		6	%		4	%
Savings		15,174		15,173		15,759		16,509		16,903		—			(10	%)
Money market		17,492		17,023		15,222		13,942		12,439		3	%		41	%
Foreign office^(a)		861		1,439		1,663		2,200		2,017		(40	%)		(57	%)

Subtotal—Transaction deposits		94,172		92,414		89,360		89,148		87,896		2	%		7	%
Other time		4,022		3,936		3,800		3,693		3,616		2	%		11	%

Subtotal—Core deposits		98,194		96,350		93,160		92,841		91,512		2	%		7	%
Certificates—$100,000 and over		2,683		2,998		3,339		3,840		5,576		(11	%)		(52	%)

Total deposits	$	100,877	$	99,348	$	96,499	$	96,681	$	97,088		2	%		4	%

(a)

Includes commercial customer Eurodollar sweep balances for which the Bancorp pays rates comparable to other commercial deposit accounts.

Average core deposits increased $1.8 billion sequentially and increased $6.7 billion, or 7 percent, from the first quarter of 2014. Average transaction deposits increased $1.8 billion from the fourth quarter of 2014 primarily driven by higher interest checking, money market account, and demand deposit balances, partially offset by lower foreign office balances. Year-over-year transaction deposits increased $6.3 billion, or 7 percent, driven by higher money market account, demand deposit, and interest checking balances, partially offset by lower savings and foreign office balances. Other time deposits increased 2 percent sequentially and 11 percent compared with the first quarter of 2014.

Average commercial transaction deposits increased 1 percent sequentially and 8 percent from the previous year. Sequential performance reflected higher interest checking balances partially offset by lower foreign office balances. Year-over-year growth reflected higher demand deposit, interest checking, and money market account balances as customers are holding higher balances partially offset by lower foreign office balances.

Average consumer transaction deposits increased 2 percent sequentially and increased 6 percent from the first quarter of 2014. The sequential performance reflected higher money market account, interest checking, and demand deposit balances partially offset by lower savings balances. Year-over-year growth was driven by increased money market account and demand deposit balances partially offset by lower savings and interest checking balances.

Wholesale Funding


	For the Three Months Ended										% Change
	March 2015		December 2014		September 2014		June 2014		March 2014		Seq			Yr/Yr
Average Wholesale Funding ($ in millions)
Certificates—$100,000 and over	$	2,683	$	2,998	$	3,339	$	3,840	$	5,576		(11	%)		(52	%)
Federal funds purchased		172		161		520		606		547		7	%		(69	%)
Other short-term borrowings		1,602		1,481		1,973		2,234		1,808		8	%		(11	%)
Long-term debt		14,448		14,855		13,955		12,524		10,313		(3	%)		40	%

Total wholesale funding	$	18,905	$	19,495	$	19,787	$	19,204	$	18,244		(3	%)		4	%

Average wholesale funding of $18.9 billion decreased $590 million, or 3 percent, sequentially and increased $661 million, or 4 percent, compared with the first quarter of 2014. The sequential decrease was driven by a decrease in long-term debt due to $500 million of bank-level subordinated debt that matured during the quarter as well as a decrease in certificates $100,000 and over, partially offset by an increase in other short-term borrowings. The year-over-year increase in average wholesale funding reflected an increase in long-term debt due to issuances during 2014, partially offset by a decrease in certificates $100,000 and over, federal funds purchased, and other short-term borrowings.

Noninterest Income


	For the Three Months Ended										% Change
	March 2015		December 2014		September 2014		June 2014		March 2014		Seq			Yr/Yr
Noninterest Income ($ in millions)
Service charges on deposits	$	135	$	142	$	145	$	139	$	133		(5	%)		2	%
Corporate banking revenue		92		120		100		107		104		(23	%)		(11	%)
Mortgage banking net revenue		86		61		61		78		109		40	%		(21	%)
Investment advisory revenue		108		100		103		102		102		7	%		6	%
Card and processing revenue		71		76		75		76		68		(6	%)		5	%
Other noninterest income		164		150		33		226		41		9	%		NM
Securities gains, net		4		4		3		8		7		16	%		(34	%)

Total noninterest income	$	660	$	653	$	520	$	736	$	564		1	%		17	%

Noninterest income of $660 million increased $7 million sequentially and $96 million compared with prior year results. These comparisons reflect the impacts described below.

For the quarters ending March 31, 2015, December 31, 2014, and March 31, 2014, the impacts of Vantiv warrant valuation adjustments were a positive $70 million, positive $56 million, and negative $36 million, respectively. Quarterly results also included the impact of valuation adjustments of the Visa total return swap of negative $17 million, negative $19 million, and positive $1 million in the first quarter of 2015, the fourth quarter of 2014, and the first quarter of 2014, respectively. First quarter 2015 also included a $37 million gain on the sale of held-for-sale residential mortgage loans classified as troubled debt restructurings. Excluding these items and net securities gains in all periods, noninterest income of $566 million decreased $46 million, or 8 percent, from the previous quarter and decreased $26 million, or 4 percent, from the first quarter of 2014. The sequential decrease was primarily due to the $23 million annual payment recognized from Vantiv pursuant to the tax receivable agreement in the fourth quarter of 2014 and a decrease in corporate banking revenue, partially offset by increased mortgage banking revenue. The year-over-year decline was primarily due to lower mortgage banking net revenue and corporate banking revenue.

Service charges on deposits of $135 million, which were seasonally low in the first quarter, decreased 5 percent from the fourth quarter and increased 2 percent compared with the same quarter last year. The sequential decline was due to a 9 percent decrease in retail service charges due to lower overdraft occurrences as well as a 2 percent decrease in commercial service charges.

Corporate banking revenue of $92 million decreased $28 million from the fourth quarter of 2014 and $12 million from the first quarter of 2013. The sequential decrease was primarily due to a $21 million decline in syndication fees as a result of decreased activity in the market in the current quarter and compared with strong fourth quarter results, as well as a decline in business lending fees. The year-over-year decrease was driven by lower syndication fees, institutional sales revenue, and lease remarketing fees, partially offset by an increase in foreign exchange fees.

Mortgage banking net revenue was $86 million in the first quarter of 2015, up 40 percent from the fourth quarter of 2014 and down 21 percent from the first quarter of 2014. First quarter 2015 originations were $1.8 billion, compared with $1.7 billion in the previous quarter and $1.7 billion in the first quarter of 2014. First quarter 2015 originations resulted in gains of $44 million on mortgages sold, compared with gains of $36 million during the previous quarter and $41 million during the first quarter of 2014. The sequential and year-over-year increases were primarily driven by higher gain on sale margins due to increased refinance activity during the quarter given the low rate environment and slightly higher production. Mortgage servicing fees were $59 million this quarter, $60 million in the fourth quarter of 2014, and $62 million in the first quarter of 2014. Mortgage banking net revenue is also affected by net servicing asset valuation adjustments, which include mortgage servicing rights (MSR) amortization and MSR valuation adjustments (including mark-to-market adjustments on free-standing derivatives used to economically hedge the MSR portfolio). These net servicing asset valuation adjustments were negative $17 million in the first quarter of 2015 (reflecting MSR amortization of $34 million and MSR valuation adjustments of positive $17 million); negative $34 million in the fourth quarter of 2014 (MSR amortization of $32 million and MSR valuation adjustments of negative $2 million); and positive $6 million in the first quarter of 2014 (MSR amortization of $22 million and MSR valuation adjustments of positive $28 million). The mortgage servicing asset, net of the valuation reserve, was $788 million at quarter end on a servicing portfolio of $64 billion.

Investment advisory revenue of $108 million increased 7 percent from the fourth quarter and increased 6 percent year-over-year. The sequential increase was attributable to higher tax-related private client services revenue, which is seasonally stronger in the first quarter, as well as an increase in securities and brokerage fees due to a continued shift from transaction-based fees to recurring revenue streams. The year-over-year increase reflected an increase in personal asset management fees due to market-related growth and an increase in securities and brokerage fees.

Card and processing revenue of $71 million in the first quarter of 2015 decreased 6 percent sequentially and increased 5 percent from the first quarter of 2014. The sequential decrease reflected lower transaction volumes compared with seasonally strong fourth quarter volumes. The year-over-year increase reflects an increase in the number of actively used cards and an increase in customer spend volume.

Other noninterest income totaled $164 million in the first quarter of 2015, compared with $150 million in the previous quarter and $41 million in the first quarter of 2014. As previously described, the results included the impact of Vantiv warrant valuation adjustments, the gain on sale of troubled debt restructurings, and charges related to the valuation of the Visa total return swap. Excluding these items, other noninterest income of $74 million decreased approximately $39 million, or 35 percent, from the fourth quarter of 2014 and decreased approximately $2 million, or 3 percent, from the first quarter of 2014. The sequential decrease was primarily due to payments recognized from Vantiv pursuant to the tax receivable agreement of $23 million in the fourth quarter of 2014 as well as normal seasonality in Vantiv’s business as reflected in our equity method of earnings.

Net gains on investment securities were $4 million in the first quarter of 2015, compared with $4 million in the previous quarter and $7 million in the first quarter of 2014.

Noninterest Expense


	For the Three Months Ended										% Change
	March 2015		December 2014		September 2014		June 2014		March 2014		Seq			Yr/Yr
Noninterest Expense ($ in millions)
Salaries, wages and incentives	$	369	$	366	$	357	$	368	$	359		1	%		3	%
Employee benefits		99		79		75		79		101		26	%		(3	%)
Net occupancy expense		79		77		78		79		80		2	%		(1	%)
Technology and communications		55		54		53		52		53		2	%		3	%
Equipment expense		31		30		30		30		30		1	%		3	%
Card and processing expense		36		36		37		37		31		(2	%)		14	%
Other noninterest expense		254		276		258		309		296		(7	%)		(13	%)

Total noninterest expense	$	923	$	918	$	888	$	954	$	950		1	%		(3	%)

Noninterest expense of $923 million increased 1 percent compared with the fourth quarter of 2014 and decreased 3 percent compared with the first quarter of 2014.

First quarter 2015 expenses included $2 million in charges to litigation reserves, compared with a $3 million reversal of litigation reserves in the fourth quarter of 2014 and $51 million in charges to litigation reserves in the first quarter of 2014. Excluding these items, noninterest expense of $921 million was flat sequentially and increased $22 million, or 2 percent, year-over-year. The sequential comparison was affected by a seasonal increase in FICA and unemployment tax expense recorded in employee benefits, partially offset by lower credit-related costs and the year-over-year increase reflected higher incentive-based compensation expense and increased credit-related costs.

Credit costs related to problem assets recorded as noninterest expense totaled $14 million in the first quarter of 2015, compared with $33 million in the fourth quarter of 2014, and $9 million in the first quarter of 2014. Credit-related expenses included provision for mortgage repurchases that was an immaterial amount in the first quarter of 2015 and the fourth quarter of 2014 and $3 million in the first quarter of 2014. (Realized mortgage repurchase losses were $3 million in the first quarter of 2015, compared with $2 million in the fourth quarter of 2014, and $10 million in the first quarter of 2014.) Provision for unfunded commitments was a benefit of $4 million in the current quarter, compared with an expense of $1 million last quarter and a benefit of $9 million a year ago. Derivative valuation adjustments related to customer credit risk

were positive $2 million for the current quarter, negative $10 million in the fourth quarter, and positive $2 million for the year ago quarter. OREO expense was $7 million, compared with $4 million last quarter and $5 million a year ago. Other problem asset-related expenses were $13 million in the first quarter, compared with $17 million in the previous quarter, and $13 million in the same period last year.

Credit Quality


	For the Three Months Ended
	March 2015			December 2014			September 2014			June 2014			March 2014
Total net losses charged-off ($ in millions)
Commercial and industrial loans	($	38	)	($	44	)	($	50	)	($	31	)	($	97	)
Commercial mortgage loans		(1	)		(10	)		(5	)		(9	)		(3	)
Commercial construction loans		—			—			—			(8	)		(5	)
Commercial leases		—			(1	)		—			—			—
Residential mortgage loans		(6	)		(94	)		(9	)		(8	)		(15	)
Home equity		(14	)		(11	)		(14	)		(18	)		(16	)
Automobile loans		(8	)		(7	)		(7	)		(5	)		(8	)
Credit card		(21	)		(20	)		(23	)		(21	)		(19	)
Other consumer loans and leases		(3	)		(4	)		(7	)		(1	)		(5	)

Total net losses charged-off		(91	)		(191	)		(115	)		(101	)		(168	)
Total losses		(115	)		(215	)		(146	)		(127	)		(190	)
Total recoveries		24			24			31			26			22

Total net losses charged-off	($	91	)	($	191	)	($	115	)	($	101	)	($	168	)
Ratios (annualized)
Net losses charged-off as a percent of average loans and leases (excluding held for sale)		0.41	%		0.83	%		0.50	%		0.45	%		0.76	%
Commercial		0.29	%		0.40	%		0.40	%		0.35	%		0.79	%
Consumer		0.59	%		1.47	%		0.66	%		0.60	%		0.72	%

Net charge-offs were $91 million, or 41 bps of average loans on an annualized basis, in the first quarter of 2015 compared with net charge-offs of $191 million, or 83 bps, in the fourth quarter of 2014 and $168 million, or 76 bps, in the first quarter of 2014. For comparison purposes, the fourth quarter of 2014 net charge-offs included $87 million (38 bps) related to the transfer of certain residential mortgage loans classified as troubled debt restructurings to held-for-sale and the first quarter of 2014 included three large credits that together resulted in combined charge-offs of $60 million (27 bps).

Commercial net charge-offs were $39 million, or 29 bps, and were down $16 million sequentially. C&I net charge-offs of $38 million decreased $6 million from the previous quarter and commercial real estate net charge-offs decreased $9 million from the previous quarter.

Consumer net charge-offs were $52 million, or 59 bps, down $84 million sequentially. Excluding consumer net charge-offs of $87 million related to the transfer of certain residential mortgage loans classified as troubled debt restructurings to held-for-sale in the fourth quarter of 2014, consumer net charge-offs were up $3 million sequentially. Net charge-offs on residential mortgage loans in the portfolio were $6 million, down $88 million from the previous quarter primarily reflecting the impact of the charge-offs in the fourth quarter of 2014 mentioned above. Home equity net charge-offs were $14 million, up $3 million from the fourth quarter of 2014, and net charge-offs in the auto portfolio of $8 million were up $1 million compared with the prior quarter. Net charge-offs on consumer credit card loans were $21 million, up $1 million from the fourth quarter. Net charge-offs on other consumer loans were $3 million, down $1 million compared with the previous quarter.


	For the Three Months Ended
	March 2015			December 2014			September 2014			June 2014			March 2014
Allowance for Credit Losses ($ in millions)
Allowance for loan and lease losses, beginning	$	1,322		$	1,414		$	1,458		$	1,483		$	1,582
Total net losses charged-off		(91	)		(191	)		(115	)		(101	)		(168	)
Provision for loan and lease losses		69			99			71			76			69

Allowance for loan and lease losses, ending		1,300			1,322			1,414			1,458			1,483
Reserve for unfunded commitments, beginning		135			134			142			153			162
Provision (benefit) for unfunded commitments		(4	)		1			(8	)		(11	)		(9	)
Charge-offs		(1	)		—			—			—			—

Reserve for unfunded commitments, ending		130			135			134			142			153
Components of allowance for credit losses:
Allowance for loan and lease losses		1,300			1,322			1,414			1,458			1,483
Reserve for unfunded commitments		130			135			134			142			153

Total allowance for credit losses	$	1,430		$	1,457		$	1,548		$	1,600		$	1,636
Allowance for loan and lease losses ratio
As a percent of loans and leases		1.42	%		1.47	%		1.56	%		1.61	%		1.65	%
As a percent of nonperforming loans and leases^(a)		247	%		228	%		228	%		228	%		202	%
As a percent of nonperforming assets^(a)		188	%		178	%		178	%		175	%		157	%

(a)

Excludes nonaccrual loans and leases in loans held for sale.

Provision for loan and lease losses totaled $69 million in the first quarter of 2015 and decreased $30 million from the fourth quarter of 2014 and was flat from the first quarter of 2014. The decrease from the prior quarter was driven by the $23 million impact in the fourth quarter of 2014 related to the transfer of certain residential mortgage loans classified as troubled debt restructurings to held-for-sale. The allowance for loan and lease losses declined $22 million sequentially reflecting the portfolio’s overall risk profile and charges to the allowance. The allowance represented 1.42 percent of total loans and leases outstanding as of quarter end, compared with 1.47 percent last quarter, and represented 247 percent of nonperforming loans and leases, and 188 percent of nonperforming assets.


	As of
	March 2015			December 2014			September 2014			June 2014			March 2014
Nonperforming Assets and Delinquent Loans ($ in millions)
Nonaccrual portfolio loans and leases:
Commercial and industrial loans	$	61		$	86		$	102		$	103		$	153
Commercial mortgage loans		57			64			77			86			96
Commercial construction loans		—			—			2			3			3
Commercial leases		2			3			3			2			3
Residential mortgage loans		40			44			52			56			68
Home equity		71			72			69			73			75

Total nonaccrual loans and leases (excludes restructured loans)	$	231		$	269		$	305		$	323		$	398
Restructured loans—commercial (nonaccrual)^(c)		205			214			201			202			209
Restructured loans—consumer (nonaccrual)		90			96			114			115			126

Total nonaccrual portfolio loans and leases	$	526		$	579		$	620		$	640		$	733
Repossessed personal property		20			18			19			18			6
Other real estate owned		145			147	(a)		157	(a)		174	(a)		207	(a)

Total nonperforming assets^(b)	$	691		$	744		$	796		$	832		$	946
Nonaccrual loans held for sale		2			24			4			5			3
Restructured loans—(nonaccrual) held for sale		—			15			3			—			—

Total nonperforming assets including loans held for sale	$	693		$	783		$	803		$	837		$	949

Restructured Consumer loans and leases (accrual)	$	943		$	905		$	1,610		$	1,623		$	1,682
Restructured Commercial loans and leases (accrual)^(c)	$	774		$	844		$	885		$	914		$	847
Total loans and leases 90 days past due	$	78		$	87		$	87		$	94		$	94
Nonperforming loans and leases as a percent of portfolio loans, leases and other assets, including other real estate owned^(b)		0.57	%		0.64	%		0.68	%		0.70	%		0.82	%
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned^(b)		0.76	%		0.82	%		0.88	%		0.92	%		1.05	%

(a)

Excludes OREO related to government insured loans. During the first quarter of 2015, Fifth Third adopted ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure which requires that certain government guaranteed residential real estate mortgage loans that meet specific criteria be recognized as other receivables upon foreclosure; during 2014 these assets were included in OREO in the Bancorp’s Condensed Consolidated Balance Sheet.

(b)

Does not include nonaccrual loans held for sale.

(c)

Excludes $21 million of restructured nonaccrual loans and $7 million of restructured accruing loans as of March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014, and March 31, 2014.

Total nonperforming assets, including loans held-for-sale, were $693 million, a decline of $90 million, or 11 percent, from the previous quarter. Nonperforming loans (NPLs) at quarter-end were $526 million or 0.57 percent of total loans, leases and OREO, and decreased $53 million, or 9 percent, from the previous quarter.

Commercial NPAs were $421 million, or 0.76 percent of commercial loans, leases and OREO, and decreased $40 million, or 9 percent, from the fourth quarter. Commercial NPLs were $325 million, or 0.59 percent of commercial loans and leases, and decreased $42 million from last quarter. C&I NPAs of $216 million decreased $30 million from the prior quarter. Commercial mortgage NPAs were $186 million, down $9 million from the previous quarter. Commercial construction NPAs were $16 million, flat from the previous quarter. Commercial lease NPAs were $3 million, down $1 million from the previous quarter. Commercial NPAs included $205 million of nonaccrual troubled debt restructurings (TDRs), compared with $214 million last quarter.

Consumer NPAs of $270 million, or 0.75 percent of consumer loans, leases and OREO, decreased $13 million from the fourth quarter. Consumer NPLs were $201 million, or 0.56 percent of consumer loans and leases and decreased $11 million from last quarter. Residential mortgage NPAs were $113 million, $13 million lower than last quarter. Home equity NPAs of $111 million increased $3 million sequentially and credit card NPAs of $38 million were down $3 million compared with the previous quarter. Consumer nonaccrual TDRs were $90 million in the first quarter of 2015, compared with $96 million in the fourth quarter of 2014.

First quarter OREO balances included in NPA balances were $145 million, down $2 million from the fourth quarter, and included $81 million in commercial OREO and $64 million in consumer OREO. Repossessed personal property of $20 million increased $2 million from the prior quarter.

Loans over 90 days past due and still accruing were $78 million, down $9 million from the fourth quarter of 2014. Commercial balances over 90 days past due were $3 million compared with less than $1 million in the prior quarter, and consumer balances 90 days past due of $75 million were down $12 million from the previous quarter. Loans 30-89 days past due of $203 million were down $47 million from the previous quarter. Commercial balances 30-89 days past due of $25 million were up $9 million sequentially and consumer balances 30-89 days past due of $178 million decreased $56 million from the fourth quarter. The above delinquencies figures exclude nonaccruals described previously.

Capital Position


	For the Three Months Ended
	March 2015			December 2014			September 2014			June 2014			March 2014
Capital Position
Average shareholders’ equity to average assets		11.49	%		11.54	%		11.71	%		11.57	%		11.53	%
Tangible equity^(a)		9.38	%		9.41	%		9.65	%		9.77	%		9.61	%
Tangible common equity (excluding unrealized gains/losses)^(a)		8.41	%		8.43	%		8.64	%		8.74	%		8.79	%
Tangible common equity (including unrealized gains/losses)^(a)		8.78	%		8.71	%		8.84	%		9.00	%		8.93	%
Tangible common equity as a percent of risk-weighted assets (excluding unrealized gains/losses)		9.59	%^(b)		9.70	%^(d)		9.70	%^(d)		9.67	%^(d)		9.57	%^(d)

	Basel III Transitional^(c)			Basel I^(d)
Regulatory capital ratios:
Common equity Tier I		9.62	%^(b)		N/A			N/A			N/A			N/A
Tier I risk-based capital		10.74	%^(b)		10.83	%		10.83	%		10.80	%		10.45	%
Total risk-based capital		14.16	%^(b)		14.33	%		14.34	%		14.30	%		14.02	%
Tier I leverage		9.61	%		9.66	%		9.82	%		9.86	%		9.71	%
Tier I common equity		N/A			9.65	%^(a)		9.64	%^(a)		9.61	%^(a)		9.51	%^(a)
Book value per share		17.85			17.35			16.87			16.74			16.27
Tangible book value per share^(a)		14.87			14.40			13.95			13.86			13.40

(a)

(b)

Under the banking agencies Basel III Final Rule, assets and credit equivalent amounts of off-balance sheet exposures are calculated based upon the standardized approach for risk-weighted assets. The resulting values are added together resulting in the Bancorp’s total risk-weighted assets.

(c)

Current period regulatory capital ratios are estimated.

(d)

These capital ratios were calculated under the Supervisory Agencies general risk-based capital rules (Basel I) which was in effect prior to January 1, 2015.

Capital ratios remained strong during the quarter, reflecting growth in retained earnings, the payment of preferred dividends, and share repurchase activity. The common equity Tier 1 ratio was 9.62 percent, the tangible common equity to tangible assets ratio* was 8.41 percent (excluding unrealized gains/losses), and 8.78 percent (including unrealized gains/losses). The Tier 1 risk-based capital ratio was 10.74 percent, the total risk-based capital ratio was 14.16 percent, and the Leverage ratio was 9.61 percent.

The Basel III Final Rule was effective for the Fifth Third on January 1, 2015, subject to phase-in periods for certain of its components and other provisions. Transition provisions apply to the minimum regulatory capital ratios; regulatory capital adjustments and deductions; and non-qualifying capital instruments. Transition provisions for the regulatory capital adjustments and deductions will change the amount deducted from capital each calendar year until the transition period ends. As of March 31, 2015, Fifth Third’s regulatory capital adjustments and deductions were primarily impacted by the transition provision related to the deduction of intangible assets other than goodwill and mortgage servicing assets. Also, Fifth Third will make a one-time permanent election to not include AOCI in common equity Tier 1 capital in the March 31, 2015 regulatory filings.

Book value per share at March 31, 2015 was $17.85 and tangible book value per share* was $14.87, compared with the December 31, 2014 book value per share of $17.35 and tangible book value per share of $14.40.

As previously announced, Fifth Third entered into a share repurchase agreement with a counterparty on January 22, 2015, whereby Fifth Third would purchase approximately $180 million of its outstanding common stock. This transaction reduced Fifth Third’s first quarter share count by 8.54 million shares on January 27, 2015. Settlement of the forward contract related to this agreement is expected to occur on or before April 23, 2015. In addition, the settlement of the forward contract related to the October 20, 2014 $180 million share repurchase agreement occurred on January 5, 2015. An additional 0.79 million shares were repurchased upon completion of the agreement. In total, the incremental impact to the average diluted share count in the first quarter of 2015 was approximately 8.97 million shares due to share repurchase transactions in the first quarter of 2015 and the fourth quarter of 2014.

On March 11, 2015, Fifth Third announced that the FRB did not object to Fifth Third’s 2015 CCAR capital plan, which included the potential increase in the quarterly common stock dividend to $0.14 per share in 2016 and the potential repurchase of common shares during the CCAR period in an amount up to $765 million. In addition, the capital plan incorporated Fifth Third’s potential repurchases of common shares in the amount of any after-tax gains from the sale of Vantiv, Inc. (“Vantiv”) stock. These capital plans were intended to maintain common equity capital levels in the current range during the CCAR period. Any such actions would be based on environmental and market conditions, earnings results, our capital position, and other factors, as well as approval by the Fifth Third Board of Directors, at the time.

Tax Rate

The effective tax rate was 25.9 percent this quarter compared with 25.9 percent in the fourth quarter of 2014 and 27.3 percent in the first quarter of 2014.

Other

Fifth Third Bank owns 43 million units representing a 22.8 percent interest in Vantiv Holding, LLC, convertible into shares of Vantiv, Inc., a publicly traded firm (NYSE: VNTV). Based upon Vantiv’s closing price of $37.70 on March 31, 2015, our interest in Vantiv was valued at approximately $1.6 billion. Next month in our 10-Q, we will update our disclosure of the carrying value of our interest in Vantiv stock, which was $394 million as of December 31, 2014. The difference between the market value and the book value of Fifth Third’s interest in Vantiv’s shares is not recognized in Fifth Third’s equity or capital. Additionally, Fifth Third has a warrant to purchase additional shares in Vantiv which is carried as a derivative asset at a fair value of $485 million as of March 31, 2015.

Conference Call

Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live by Thomson Financial and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Fifth Third” then “Investor Relations”). Institutional investors can access the call via Thomson Financial’s password-protected event management site, StreetEvents (www.streetevents.com).

*	Non-GAAP measure; see Reg. G reconciliation on page 32.

Those unable to listen to the live webcast may access a webcast replay through the Fifth Third Investor Relations website at the same web address. Additionally, a telephone replay of the conference call will be available beginning approximately two hours after the conference call until Tuesday, May 5, 2015 by dialing 800-585-8367 for domestic access or 404-537-3406 for international access (passcode 9854806#).

Corporate Profile

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of March 31, 2015, the Company had $140 billion in assets and operated 15 affiliates with 1,303 full-service Banking Centers, including 101 Bank Mart^® locations, most open seven days a week, inside select grocery stores and 2,637 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. Fifth Third also has a 22.8% interest in Vantiv Holding, LLC. Fifth Third is among the largest money managers in the Midwest and, as of March 31, 2015, had $308 billion in assets under care, of which it managed $27 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the NASDAQ^® Global Select Market under the symbol “FITB.”

Forward-Looking Statements

This news 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,” “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 and adequate sources of funding and liquidity may limit Fifth Third’s operations and potential growth; (8) changes and trends in capital markets; (9) problems encountered by larger or similar financial institutions may adversely affect the banking industry and/or Fifth Third; (10) competitive pressures among depository institutions increase significantly; (11) effects of critical accounting policies and judgments; (12) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (FASB) or other regulatory agencies; (13) legislative or regulatory changes or actions, or significant litigation, adversely affect Fifth Third, one or more acquired entities and/or the combined company or the businesses in which Fifth Third, one or more acquired entities and/or the combined company are engaged, including the Dodd-Frank Wall Street Reform and Consumer Protection Act; (14) ability to maintain favorable ratings from rating agencies; (15) fluctuation of Fifth Third’s stock price; (16) ability to attract and retain key personnel; (17) ability to receive dividends from its subsidiaries; (18) potentially dilutive effect of future acquisitions on current shareholders’ ownership of Fifth Third; (19) effects of accounting or financial results of one or more acquired entities; (20) difficulties from Fifth Third’s investment in, relationship with, and nature of the operations of Vantiv, LLC; (21) loss of income from any sale or potential sale of businesses that could have an adverse effect on Fifth Third’s earnings and future growth; (22) ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; and (23) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity.

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements.

# # #

LOGO

Quarterly Financial Review for March 31, 2015

Table of Contents


Financial Highlights			19-20
Consolidated Statements of Income			21
Consolidated Statements of Income (Taxable Equivalent)			22
Consolidated Balance Sheets			23-24
Consolidated Statements of Changes in Equity			25
Average Balance Sheet and Yield Analysis			26-27
Summary of Loans and Leases			28
Regulatory Capital			29
Summary of Credit Loss Experience			30
Asset Quality			31
Regulation G Non-GAAP Reconciliation			32
Segment Presentation			33

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)


	For the Three Months Ended									% Change
	March 2015			December 2014			March 2014			Seq			Yr/Yr
Income Statement Data
Net interest income^(a)	$	852		$	888		$	898			(4	%)		(5	%)
Noninterest income		660			653			564			1	%		17	%
Total revenue^(a)		1,512			1,541			1,462			(2	%)		3	%
Provision for loan and lease losses		69			99			69			(30	%)		—
Noninterest expense		923			918			950			1	%		(3	%)
Net income attributable to Bancorp		382			385			318			(1	%)		20	%
Net income available to common shareholders		367			362			309			1	%		15	%
Common Share Data
Earnings per share, basic	$	0.45		$	0.44		$	0.36			2	%		25	%
Earnings per share, diluted		0.44			0.43			0.36			2	%		22	%
Cash dividends per common share		0.13			0.13			0.12			—			8	%
Book value per share		17.85			17.35			16.27			3	%		10	%
Market price per share		18.85			20.38			22.96			(7	%)		(18	%)
Common shares outstanding (in thousands)		815,190			824,047			847,569			(1	%)		(4	%)
Average common shares outstanding (in thousands):
Basic		810,210			819,057			845,860			(1	%)		(4	%)
Diluted		818,672			827,831			857,924			(1	%)		(5	%)
Market capitalization	$	15,366		$	16,790		$	19,456			(8	%)		(21	%)
Financial Ratios
Return on average assets		1.12	%		1.13	%		1.00	%		—			12	%
Return on average common equity		10.3	%		10.0	%		9.0	%		2	%		13	%
Return on average tangible common equity^(b)(j)		12.3	%		12.1	%		11.0	%		2	%		12	%
Noninterest income as a percent of total revenue		44	%		42	%		39	%		3	%		13	%
Average Bancorp shareholders’ equity as a percent of average assets		11.49	%		11.54	%		11.53	%		—			—
Tangible common equity^(c)(d)(j)		8.41	%		8.43	%		8.79	%		—			(4	%)
Net interest margin^(a)		2.86	%		2.96	%		3.22	%		(3	%)		(11	%)
Efficiency^(a)		61.0	%		59.6	%		64.9	%		2	%		(6	%)
Effective tax rate		25.9	%		25.9	%		27.3	%		—			(5	%)
Credit Quality
Net losses charged off	$	91		$	191		$	168			(52	%)		(46	%)
Net losses charged off as a percent of average loans and leases		0.41	%		0.83	%		0.76	%		(51	%)		(46	%)
Allowance for loan and lease losses as a percent of loans and leases		1.42	%		1.47	%		1.65	%		(3	%)		(14	%)
Allowance for credit losses as a percent of loans and leases		1.57	%		1.62	%		1.82	%		(3	%)		(14	%)
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned^(e)		0.76	%		0.82	%		1.05	%		(8	%)		(28	%)
Average Balances
Loans and leases, including held for sale	$	91,659		$	91,581		$	90,238			—			2	%
Total securities and other short-term investments		29,038			27,604			22,940			5	%		27	%
Total assets		137,652			135,580			128,930			2	%		7	%
Transaction deposits^(f)		94,172			92,414			87,896			2	%		7	%
Core deposits^(g)		98,194			96,350			91,512			2	%		7	%
Wholesale funding^(h)		18,905			19,495			18,244			(3	%)		4	%
Bancorp shareholders’ equity		15,820			15,644			14,862			1	%		6	%

Regulatory Capital Ratios⁽ⁱ⁾	Basel III Transitional			*Basel I^(l)***
Common equity tier I^(k)		9.62	%		N/A			N/A			N/A			N/A
Tier I risk-based capital		10.74	%		10.83	%		10.45	%		(2	%)		1	%
Total risk-based capital		14.16	%		14.33	%		14.02	%		(3	%)		(1	%)
Tier I leverage		9.61	%		9.66	%		9.71	%		(1	%)		(1	%)
Tier I common equity^(d)(j)		N/A			9.65	%		9.51	%		N/A			N/A
Operations
Banking centers		1,303			1,302			1,311			—			—
ATMs		2,637			2,638			2,614			—			1	%
Full-time equivalent employees		18,471			18,351			19,080			1	%		(3	%)

(a)

Presented on a fully taxable equivalent basis.

(b)

The return on average tangible common equity is calculated as tangible net income available to common shareholders excluding tax effected amortization of intangibles) divided by average tangible common equity (average common equity less goodwill and intangible assets).

(c)

The tangible common equity ratio is calculated as tangible common equity (shareholders’ equity less preferred stock, goodwill, intangible assets and accumulated other comprehensive income divided by tangible assets (total assets less goodwill, intangible assets and accumulated other comprehensive income).

(d)

These ratios have been included herein to facilitate a greater understanding of the Bancorp’s capital structure and financial condition.

(e)

Excludes nonaccrual loans held for sale.

(f)

Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.

(g)

Includes transaction deposits plus other time deposits.

(h)

Includes certificates $100,000 and over, other deposits, federal funds purchased, short-term borrowings and long-term debt.

(i)

Current period regulatory capital ratios are estimates.

(j)

Non-GAAP measure; see Reg. G reconciliation on page 32.

(k)

Under the banking agencies’ Basel III Final Rule, assets and credit equivalent amounts of off-balance sheet exposures are calculated based upon the standardized approach for risk-weighted assets. The resulting values are added together resulting in the Bancorp’s total risk-weighted assets.

(l)

These capital ratios were calculated under the Supervisory Agencies general risk-based capital rules (Basel I) which were in effect prior to January 1, 2015.

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)


	For the Three Months Ended
	March 2015			December 2014			September 2014			June 2014			March 2014
Income Statement Data
Net interest income^(a)	$	852		$	888		$	908		$	905		$	898
Noninterest income		660			653			520			736			564
Total revenue^(a)		1,512			1,541			1,428			1,641			1,462
Provision for loan and lease losses		69			99			71			76			69
Noninterest expense		923			918			888			954			950
Net income attributable to Bancorp		382			385			340			439			318
Net income available to common shareholders		367			362			328			416			309
Common Share Data
Earnings per share, basic	$	0.45		$	0.44		$	0.39		$	0.49		$	0.36
Earnings per share, diluted		0.44			0.43			0.39			0.49			0.36
Cash dividends per common share		0.13			0.13			0.13			0.13			0.12
Book value per share		17.85			17.35			16.87			16.74			16.27
Market price per share		18.85			20.38			20.02			21.35			22.96
Common shares outstanding (in thousands)		815,190			824,047			834,262			844,489			847,569
Average common shares outstanding (in thousands):
Basic		810,210			819,057			829,392			838,492			845,860
Diluted		818,672			827,831			838,324			848,245			857,924
Market capitalization	$	15,366		$	16,790		$	16,702		$	18,030		$	19,456
Financial Ratios
Return on average assets		1.12	%		1.13	%		1.02	%		1.34	%		1.00	%
Return on average common equity		10.3	%		10.0	%		9.2	%		11.9	%		9.0	%
Return on average tangible common equity^(b)(j)		12.3	%		12.1	%		11.1	%		14.4	%		11.0	%
Noninterest income as a percent of total revenue		44	%		42	%		36	%		45	%		39	%
Average Bancorp shareholders’ equity as a percent of average assets		11.49	%		11.54	%		11.71	%		11.57	%		11.53	%
Tangible common equity^(c)(d)(j)		8.41	%		8.43	%		8.64	%		8.74	%		8.79	%
Net interest margin^(a)		2.86	%		2.96	%		3.10	%		3.15	%		3.22	%
Efficiency^(a)		61.0	%		59.6	%		62.1	%		58.2	%		64.9	%
Effective tax rate		25.9	%		25.9	%		26.7	%		27.6	%		27.3	%
Credit Quality
Net losses charged off	$	91		$	191		$	115		$	101		$	168
Net losses charged off as a percent of average loans and leases		0.41	%		0.83	%		0.50	%		0.45	%		0.76	%
Allowance for loan and lease losses as a percent of portfolio loans and leases		1.42	%		1.47	%		1.56	%		1.61	%		1.65	%
Allowance for credit losses as a percent of portfolio loans and leases		1.57	%		1.62	%		1.71	%		1.77	%		1.82	%
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned^(e)		0.76	%		0.82	%		0.88	%		0.92	%		1.05	%
Average Balances
Loans and leases, including held for sale	$	91,659		$	91,581		$	91,428		$	91,241		$	90,238
Total securities and other short-term investments		29,038			27,604			24,927			23,940			22,940
Total assets		137,652			135,580			132,220			130,965			128,930
Transaction deposits^(f)		94,172			92,414			89,360			89,148			87,896
Core deposits^(g)		98,194			96,350			93,160			92,841			91,512
Wholesale funding^(h)		18,905			19,495			19,787			19,204			18,244
Bancorp shareholders’ equity		15,820			15,644			15,486			15,157			14,862

Regulatory Capital Ratios⁽ⁱ⁾	Basel III Transitional			*Basel I^(l)***
Common equity tier I^(k)		9.62	%		N/A			N/A			N/A			N/A
Tier I risk-based capital		10.74	%		10.83	%		10.83	%		10.80	%		10.45	%
Total risk-based capital		14.16	%		14.33	%		14.34	%		14.30	%		14.02	%
Tier I leverage		9.61	%		9.66	%		9.82	%		9.86	%		9.71	%
Tier I common equity^(d)(j)		N/A			9.65	%		9.64	%		9.61	%		9.51	%
Operations
Banking centers		1,303			1,302			1,308			1,309			1,311
ATMs		2,637			2,638			2,639			2,619			2,614
Full-time equivalent employees		18,471			18,351			18,503			18,732			19,080

(a)

Presented on a fully taxable equivalent basis.

(b)

(c)

(d)

The ratios have been included herein to facilitate a greater understanding of the Bancorp’s capital structure and financial condition.

(e)

Excludes nonaccrual loans held for sale.

(f)

Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.

(g)

Includes transaction deposits plus other time deposits.

(h)

Includes certificates $100,000 and over, other deposits, federal funds purchased, short-term borrowings and long-term debt.

(i)

Current period regulatory capital ratios are estimates.

(j)

Non-GAAP measure; see Reg. G reconciliation on page 32.

(k)

(l)

These capital ratios were calculated under the Supervisory Agencies general risk-based capital rules (Basel I) which were in effect prior to January 1, 2015.

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income

$ in millions

(unaudited)


	For the Three Months Ended						% Change
	March 2015		December 2014		March 2014		Seq			Yr/Yr
Interest Income
Interest and fees on loans and leases	$	778	$	823	$	823		(5	%)		(6	%)
Interest on securities		188		185		168		2	%		12	%
Interest on other short-term investments		4		3		2		9	%		NM

Total interest income		970		1,011		993		(4	%)		(2	%)
Interest Expense
Interest on deposits		50		54		48		(9	%)		5	%
Interest on short-term borrowings		—		—		1		NM			(13	%)
Interest on long-term debt		73		74		51		(1	%)		39	%

Total interest expense		123		128		100		(4	%)		22	%

Net Interest Income		847		883		893		(4	%)		(5	%)
Provision for loan and lease losses		69		99		69		(30	%)		—

Net interest income after provision for loan and lease losses		778		784		824		(1	%)		(6	%)
Noninterest Income
Service charges on deposits		135		142		133		(5	%)		2	%
Corporate banking revenue		92		120		104		(23	%)		(11	%)
Mortgage banking net revenue		86		61		109		40	%		(21	%)
Investment advisory revenue		108		100		102		7	%		6	%
Card and processing revenue		71		76		68		(6	%)		5	%
Other noninterest income		164		150		41		9	%		NM
Securities gains, net		4		4		7		16	%		(34	%)

Total noninterest income		660		653		564		1	%		17	%
Noninterest Expense
Salaries, wages and incentives		369		366		359		1	%		3	%
Employee benefits		99		79		101		26	%		(3	%)
Net occupancy expense		79		77		80		2	%		(1	%)
Technology and communications		55		54		53		2	%		3	%
Equipment expense		31		30		30		1	%		3	%
Card and processing expense		36		36		31		(2	%)		14	%
Other noninterest expense		254		276		296		(7	%)		(13	%)

Total noninterest expense		923		918		950		1	%		(3	%)
Income before income taxes		515		519		438		(1	%)		17	%
Applicable income taxes		133		134		119		(1	%)		11	%

Net Income		382		385		319		(1	%)		20	%
Less: Net income attributable to noncontrolling interests		—		—		1		NM			(61	%)

Net income attributable to Bancorp		382		385		318		(1	%)		20	%
Dividends on preferred stock		15		23		9		(35	%)		60	%

Net income available to common shareholders	$	367	$	362	$	309		1	%		15	%

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income (Taxable Equivalent)

$ in millions

(unaudited)


	For the Three Months Ended
	March 2015		December 2014		September 2014		June 2014		March 2014
Interest Income
Interest and fees on loans and leases	$	778	$	823	$	827	$	826	$	823
Interest on securities		188		185		189		181		168
Interest on other short-term investments		4		3		2		1		2

Total interest income		970		1,011		1,018		1,008		993
Taxable equivalent adjustment		5		5		5		5		5

Total interest income (taxable equivalent)		975		1,016		1,023		1,013		998
Interest Expense
Interest on deposits		50		54		51		49		48
Interest on other short-term borrowings		—		—		1		1		1
Interest on long-term debt		73		74		63		58		51

Total interest expense		123		128		115		108		100

Net Interest Income (taxable equivalent)		852		888		908		905		898
Provision for loan and lease losses		69		99		71		76		69

Net interest income (taxable equivalent) after provision for loan and lease losses		783		789		837		829		829
Noninterest Income
Service charges on deposits		135		142		145		139		133
Corporate banking revenue		92		120		100		107		104
Mortgage banking net revenue		86		61		61		78		109
Investment advisory revenue		108		100		103		102		102
Card and processing revenue		71		76		75		76		68
Other noninterest income		164		150		33		226		41
Securities gains, net		4		4		3		8		7

Total noninterest income		660		653		520		736		564
Noninterest Expense
Salaries, wages and incentives		369		366		357		368		359
Employee benefits		99		79		75		79		101
Net occupancy expense		79		77		78		79		80
Technology and communications		55		54		53		52		53
Equipment expense		31		30		30		30		30
Card and processing expense		36		36		37		37		31
Other noninterest expense		254		276		258		309		296

Total noninterest expense		923		918		888		954		950

Income before income taxes (taxable equivalent)		520		524		469		611		443
Taxable equivalent adjustment		5		5		5		5		5

Income before income taxes		515		519		464		606		438
Applicable income tax expense		133		134		124		167		119

Net Income		382		385		340		439		319
Less: Net Income attributable to noncontrolling interests		—		—		—		—		1

Net income attributable to Bancorp		382		385		340		439		318
Dividends on preferred stock		15		23		12		23		9

Net income available to common shareholders	$	367	$	362	$	328	$	416	$	309

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)


	As of									% Change
	March 2015			December 2014			March 2014			Seq			Yr/Yr
Assets
Cash and due from banks	$	2,920		$	3,091		$	3,153			(6	%)		(7	%)
Available-for-sale and other securities^(a)		26,409			22,408			20,749			18	%		27	%
Held-to-maturity securities^(b)		177			187			195			(5	%)		(9	%)
Trading securities		392			360			347			9	%		13	%
Other short-term investments		4,919			7,914			2,202			(38	%)		NM
Loans held for sale		724			1,261			780			(43	%)		(7	%)
Portfolio loans and leases:
Commercial and industrial loans		42,052			40,765			40,591			3	%		4	%
Commercial mortgage loans		7,209			7,399			7,958			(3	%)		(9	%)
Commercial construction loans		2,302			2,069			1,218			11	%		89	%
Commercial leases		3,786			3,720			3,577			2	%		6	%
Residential mortgage loans		12,569			12,389			12,626			1	%		—
Home equity		8,714			8,886			9,125			(2	%)		(5	%)
Automobile loans		11,873			12,037			12,088			(1	%)		(2	%)
Credit card		2,291			2,401			2,177			(5	%)		5	%
Other consumer loans and leases		448			418			345			8	%		31	%

Portfolio loans and leases		91,244			90,084			89,705			1	%		2	%
Allowance for loan and lease losses		(1,300	)		(1,322	)		(1,483	)		(2	%)		(12	%)

Portfolio loans and leases, net		89,944			88,762			88,222			1	%		2	%
Bank premises and equipment		2,433			2,465			2,528			(1	%)		(4	%)
Operating lease equipment		725			728			714			(1	%)		2	%
Goodwill		2,416			2,416			2,416			—			—
Intangible assets		14			15			18			(4	%)		(22	%)
Servicing rights		789			858			975			(8	%)		(19	%)
Other assets		8,637			8,241			7,355			5	%		17	%

Total assets	$	140,499		$	138,706		$	129,654			1	%		8	%

Liabilities
Deposits:
Demand	$	35,343		$	34,809		$	31,234			2	%		13	%
Interest checking		27,191			26,800			25,472			1	%		7	%
Savings		15,355			15,051			16,867			2	%		(9	%)
Money market		18,105			17,083			13,208			6	%		37	%
Foreign office		811			1,114			1,922			(27	%)		(58	%)
Other time		4,044			3,960			3,660			2	%		10	%
Certificates—$100,000 and over		2,566			2,895			4,511			(11	%)		(43	%)

Total deposits		103,415			101,712			96,874			2	%		7	%
Federal funds purchased		200			144			268			38	%		(26	%)
Other short-term borrowings		1,413			1,556			2,717			(9	%)		(48	%)
Accrued taxes, interest and expenses		1,987			2,020			1,669			(2	%)		19	%
Other liabilities		3,504			2,642			2,029			33	%		73	%
Long-term debt		14,055			14,967			11,233			(6	%)		25	%

Total liabilities		124,574			123,041			114,790			1	%		9	%
Equity
Common stock^(c)		2,051			2,051			2,051			—			—
Preferred stock		1,331			1,331			1,034			—			29	%
Capital surplus		2,659			2,646			2,674			—			(1	%)
Retained earnings		11,401			11,141			10,363			2	%		10	%
Accumulated other comprehensive income		588			429			196			37	%		NM
Treasury stock		(2,145	)		(1,972	)		(1,492	)		9	%		44	%

Total Bancorp shareholders’ equity		15,885			15,626			14,826			2	%		7	%
Noncontrolling interests		40			39			38			3	%		4	%

Total equity		15,925			15,665			14,864			2	%		7	%

Total liabilities and equity	$	140,499		$	138,706		$	129,654			1	%		8	%

(a) Amortized cost	$	25,475		$	21,677		$	20,393			18	%		25	%
(b) Market values		177			187			195			(5	%)		(9	%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized		2,000,000			2,000,000			2,000,000			—			—
Outstanding, excluding treasury		815,190			824,047			847,569			(1	%)		(4	%)
Treasury		108,702			99,846			76,324			9	%		42	%

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)


	As of
	March 2015			December 2014			September 2014			June 2014			March 2014
Assets
Cash and due from banks	$	2,920		$	3,091		$	3,125		$	3,312		$	3,153
Available-for-sale and other securities^(a)		26,409			22,408			22,912			22,814			20,749
Held-to-maturity securities^(b)		177			187			191			194			195
Trading securities		392			360			389			361			347
Other short-term investments		4,919			7,914			3,637			2,386			2,202
Loans held for sale		724			1,261			641			682			780
Portfolio loans and leases:
Commercial and industrial loans		42,052			40,765			41,072			41,299			40,591
Commercial mortgage loans		7,209			7,399			7,564			7,805			7,958
Commercial construction loans		2,302			2,069			1,702			1,424			1,218
Commercial leases		3,786			3,720			3,554			3,567			3,577
Residential mortgage loans		12,569			12,389			12,941			12,652			12,626
Home equity		8,714			8,886			8,987			9,056			9,125
Automobile loans		11,873			12,037			12,121			12,050			12,088
Credit card		2,291			2,401			2,317			2,261			2,177
Other consumer loans and leases		448			418			366			370			345

Portfolio loans and leases		91,244			90,084			90,624			90,484			89,705
Allowance for loan and lease losses		(1,300	)		(1,322	)		(1,414	)		(1,458	)		(1,483	)

Portfolio loans and leases, net		89,944			88,762			89,210			89,026			88,222
Bank premises and equipment		2,433			2,465			2,467			2,491			2,528
Operating lease equipment		725			728			732			667			714
Goodwill		2,416			2,416			2,416			2,416			2,416
Intangible assets		14			15			16			17			18
Servicing rights		789			858			935			931			975
Other assets		8,637			8,241			7,517			7,265			7,355

Total assets	$	140,499		$	138,706		$	134,188		$	132,562		$	129,654

Liabilities
Deposits:
Demand	$	35,343		$	34,809		$	32,258		$	32,140		$	31,234
Interest checking		27,191			26,800			24,930			24,744			25,472
Savings		15,355			15,051			15,355			16,087			16,867
Money market		18,105			17,083			16,199			14,216			13,208
Foreign office		811			1,114			1,577			1,418			1,922
Other time		4,044			3,960			3,856			3,724			3,660
Certificates—$100,000 and over		2,566			2,895			3,117			3,623			4,511

Total deposits		103,415			101,712			97,292			95,952			96,874
Federal funds purchased		200			144			148			153			268
Other short-term borrowings		1,413			1,556			2,730			3,146			2,717
Accrued taxes, interest and expenses		1,987			2,020			1,706			1,824			1,669
Other liabilities		3,504			2,642			2,533			2,018			2,029
Long-term debt		14,055			14,967			14,336			13,961			11,233

Total liabilities		124,574			123,041			118,745			117,054			114,790
Equity
Common stock^(c)		2,051			2,051			2,051			2,051			2,051
Preferred stock		1,331			1,331			1,331			1,331			1,034
Capital surplus		2,659			2,646			2,621			2,613			2,674
Retained earnings		11,401			11,141			10,886			10,666			10,363
Accumulated other comprehensive income		588			429			301			382			196
Treasury stock		(2,145	)		(1,972	)		(1,786	)		(1,574	)		(1,492	)

Total Bancorp shareholders’ equity		15,885			15,626			15,404			15,469			14,826
Noncontrolling interests		40			39			39			39			38

Total equity		15,925			15,665			15,443			15,508			14,864

Total liabilities and equity	$	140,499		$	138,706		$	134,188		$	132,562		$	129,654

(a) Amortized cost	$	25,475		$	21,677		$	22,392		$	22,184		$	20,393
(b) Market values		177			187			191			194			195
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized		2,000,000			2,000,000			2,000,000			2,000,000			2,000,000
Outstanding, excluding treasury		815,190			824,047			834,262			844,489			847,569
Treasury		108,702			99,846			89,631			79,404			76,324

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Changes in Equity

$ in millions

(unaudited)


	For the Three Months Ended
	March 2015			March 2014
Total equity, beginning	$	15,665		$	14,626
Net income attributable to Bancorp		382			318
Other comprehensive income, net of tax:
Change in unrealized gains:
Available-for-sale securities		133			110
Qualifying cash flow hedges		24			3
Change in accumulated other comprehensive income related to employee benefit plans		2			1

Comprehensive income		541			432
Cash dividends declared:
Common stock		(106	)		(102	)
Preferred stock		(15	)		(9	)
Impact of stock transactions under stock compensation plans, net		21			17
Shares acquired for treasury		(180	)		(99	)
Noncontrolling interest		1			1
Other		(2	)		(2	)

Total equity, ending	$	15,925		$	14,864

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	For the Three Months Ended									% Change
	March 2015			December 2014			March 2014			Seq			Yr/Yr
Assets
Interest-earning assets:
Commercial and industrial loans	$	41,462		$	41,313		$	40,409			—			3	%
Commercial mortgage loans		7,248			7,482			7,983			(3	%)		(9	%)
Commercial construction loans		2,198			1,911			1,118			15	%		97	%
Commercial leases		3,716			3,601			3,607			3	%		3	%
Residential mortgage loans		13,515			13,526			13,304			—			2	%
Home equity		8,802			8,937			9,194			(2	%)		(4	%)
Automobile loans		11,933			12,073			12,023			(1	%)		(1	%)
Credit card		2,321			2,324			2,230			—			4	%
Other consumer loans and leases		464			414			370			12	%		26	%
Taxable securities		23,102			22,364			20,385			3	%		13	%
Tax exempt securities		59			64			46			(8	%)		28	%
Other short-term investments		5,877			5,176			2,509			14	%		NM

Total interest-earning assets		120,697			119,185			113,178			1	%		7	%
Cash and due from banks		2,830			3,008			2,850			(6	%)		(1	%)
Other assets		15,447			14,800			14,478			4	%		7	%
Allowance for loan and lease losses		(1,322	)		(1,413	)		(1,576	)		(6	%)		(16	%)

Total assets	$	137,652		$	135,580		$	128,930			2	%		7	%

Liabilities
Interest-bearing liabilities:
Interest checking	$	26,885		$	25,478		$	25,911			6	%		4	%
Savings		15,174			15,173			16,903			—			(10	%)
Money market		17,492			17,023			12,439			3	%		41	%
Foreign office		861			1,439			2,017			(40	%)		(57	%)
Other time		4,022			3,936			3,616			2	%		11	%
Certificates—$100,000 and over		2,683			2,998			5,576			(11	%)		(52	%)
Federal funds purchased		172			161			547			7	%		(69	%)
Other short-term borrowings		1,602			1,481			1,808			8	%		(11	%)
Long-term debt		14,448			14,855			10,313			(3	%)		40	%

Total interest-bearing liabilities		83,339			82,544			79,130			1	%		5	%
Demand deposits		33,760			33,301			30,626			1	%		10	%
Other liabilities		4,694			4,052			4,274			16	%		10	%

Total liabilities		121,793			119,897			114,030			2	%		7	%
Equity		15,859			15,683			14,900			1	%		6	%

Total liabilities and equity	$	137,652		$	135,580		$	128,930			2	%		7	%

Yield Analysis
Interest-earning assets:
Commercial and industrial loans		3.16	%		3.21	%		3.35	%
Commercial mortgage loans		3.27	%		3.28	%		3.43	%
Commercial construction loans		3.23	%		3.30	%		3.48	%
Commercial leases		2.90	%		2.96	%		3.09	%
Residential mortgage loans		3.83	%		3.80	%		3.94	%
Home equity		3.66	%		3.68	%		3.74	%
Automobile loans		2.68	%		2.73	%		2.86	%
Credit card		10.22	%		10.08	%		9.90	%
Other consumer loans and leases		10.79	%		31.97	%		39.93	%

Total loans and leases		3.46	%		3.58	%		3.72	%
Taxable securities		3.30	%		3.28	%		3.33	%
Tax exempt securities		5.24	%		4.42	%		5.51	%
Other short-term investments		0.25	%		0.26	%		0.26	%

Total interest-earning assets		3.28	%		3.38	%		3.58	%
Interest-bearing liabilities:
Interest checking		0.20	%		0.22	%		0.23	%
Savings		0.07	%		0.08	%		0.11	%
Money market		0.32	%		0.39	%		0.28	%
Foreign office		0.20	%		0.30	%		0.29	%
Other time		1.17	%		1.14	%		0.99	%
Certificates—$100,000 and over		1.16	%		1.05	%		0.70	%
Federal funds purchased		0.09	%		0.10	%		0.10	%
Other short-term borrowings		0.11	%		0.10	%		0.10	%
Long-term debt		2.02	%		1.94	%		2.04	%

Total interest-bearing liabilities		0.60	%		0.61	%		0.51	%
Ratios:
Net interest margin (taxable equivalent)		2.86	%		2.96	%		3.22	%
Net interest rate spread (taxable equivalent)		2.68	%		2.77	%		3.07	%
Interest-bearing liabilities to interest-earning assets		69.05	%		69.26	%		69.92	%

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	For the Three Months Ended
	March 2015			December 2014			September 2014			June 2014			March 2014
Assets
Interest-earning assets:
Commercial and industrial loans	$	41,462		$	41,313		$	41,525		$	41,451		$	40,409
Commercial mortgage loans		7,248			7,482			7,637			7,886			7,983
Commercial construction loans		2,198			1,911			1,565			1,364			1,118
Commercial leases		3,716			3,601			3,576			3,556			3,607
Residential mortgage loans		13,515			13,526			13,342			13,202			13,304
Home equity		8,802			8,937			9,009			9,101			9,194
Automobile loans		11,933			12,073			12,105			12,070			12,023
Credit card		2,321			2,324			2,295			2,232			2,230
Other consumer loans and leases		464			414			374			379			370
Taxable securities		23,102			22,364			22,594			21,706			20,385
Tax exempt securities		59			64			50			52			46
Other short-term investments		5,877			5,176			2,283			2,182			2,509

Total interest-earning assets		120,697			119,185			116,355			115,181			113,178
Cash and due from banks		2,830			3,008			2,862			2,847			2,850
Other assets		15,447			14,800			14,461			14,417			14,478
Allowance for loan and lease losses		(1,322	)		(1,413	)		(1,458	)		(1,480	)		(1,576	)

Total assets	$	137,652		$	135,580		$	132,220		$	130,965		$	128,930

Liabilities
Interest-bearing liabilities:
Interest checking	$	26,885		$	25,478		$	24,926		$	25,222		$	25,911
Savings		15,174			15,173			15,759			16,509			16,903
Money market		17,492			17,023			15,222			13,942			12,439
Foreign office		861			1,439			1,663			2,200			2,017
Other time		4,022			3,936			3,800			3,693			3,616
Certificates—$100,000 and over		2,683			2,998			3,339			3,840			5,576
Federal funds purchased		172			161			520			606			547
Other short-term borrowings		1,602			1,481			1,973			2,234			1,808
Long-term debt		14,448			14,855			13,955			12,524			10,313

Total interest-bearing liabilities		83,339			82,544			81,157			80,770			79,130
Demand deposits		33,760			33,301			31,790			31,275			30,626
Other liabilities		4,694			4,052			3,749			3,724			4,274

Total liabilities		121,793			119,897			116,696			115,769			114,030
Equity		15,859			15,683			15,524			15,196			14,900

Total liabilities and equity	$	137,652		$	135,580		$	132,220		$	130,965		$	128,930

Yield Analysis
Interest-earning assets:
Commercial and industrial loans		3.16	%		3.21	%		3.25	%		3.27	%		3.35	%
Commercial mortgage loans		3.27	%		3.28	%		3.34	%		3.39	%		3.43	%
Commercial construction loans		3.23	%		3.30	%		3.49	%		3.54	%		3.48	%
Commercial leases		2.90	%		2.96	%		2.96	%		3.04	%		3.09	%
Residential mortgage loans		3.83	%		3.80	%		3.84	%		3.93	%		3.94	%
Home equity		3.66	%		3.68	%		3.69	%		3.71	%		3.74	%
Automobile loans		2.68	%		2.73	%		2.72	%		2.77	%		2.86	%
Credit card		10.22	%		10.08	%		9.87	%		10.06	%		9.90	%
Other consumer loans and leases		10.79	%		31.97	%		36.98	%		35.63	%		39.93	%

Total loans and leases		3.46	%		3.58	%		3.61	%		3.65	%		3.72	%
Taxable securities		3.30	%		3.28	%		3.32	%		3.34	%		3.33	%
Tax exempt securities		5.24	%		4.42	%		5.34	%		4.69	%		5.51	%
Other short-term investments		0.25	%		0.26	%		0.26	%		0.28	%		0.26	%

Total interest-earning assets		3.28	%		3.38	%		3.49	%		3.53	%		3.58	%
Interest-bearing liabilities:
Interest checking		0.20	%		0.22	%		0.22	%		0.22	%		0.23	%
Savings		0.07	%		0.08	%		0.09	%		0.11	%		0.11	%
Money market		0.32	%		0.39	%		0.37	%		0.33	%		0.28	%
Foreign office		0.20	%		0.30	%		0.29	%		0.29	%		0.29	%
Other time		1.17	%		1.14	%		1.07	%		1.03	%		0.99	%
Certificates—$100,000 and over		1.16	%		1.05	%		0.96	%		0.83	%		0.70	%
Federal funds purchased		0.09	%		0.10	%		0.09	%		0.10	%		0.10	%
Other short-term borrowings		0.11	%		0.10	%		0.10	%		0.10	%		0.10	%
Long-term debt		2.02	%		1.94	%		1.80	%		1.89	%		2.04	%

Total interest-bearing liabilities		0.60	%		0.61	%		0.56	%		0.54	%		0.51	%
Ratios:
Net interest margin (taxable equivalent)		2.86	%		2.96	%		3.10	%		3.15	%		3.22	%
Net interest rate spread (taxable equivalent)		2.68	%		2.77	%		2.93	%		2.99	%		3.07	%
Interest-bearing liabilities to interest-earning assets		69.05	%		69.26	%		69.75	%		70.12	%		69.92	%

Fifth Third Bancorp and Subsidiaries

Summary of Loans and Leases

$ in millions

(unaudited)


	For the Three Months Ended
	March 2015		December 2014		September 2014		June 2014		March 2014
Average Loans and Leases
Commercial:
Commercial and industrial loans	$	41,426	$	41,277	$	41,477	$	41,374	$	40,377
Commercial mortgage loans		7,241		7,480		7,633		7,885		7,981
Commercial construction loans		2,197		1,909		1,563		1,362		1,116
Commercial leases		3,715		3,600		3,571		3,555		3,607

Subtotal—commercial		54,579		54,266		54,244		54,176		53,081
Consumer:
Residential mortgage loans		12,433		13,046		12,785		12,611		12,659
Home equity		8,802		8,937		9,009		9,101		9,194
Automobile loans		11,933		12,073		12,105		12,070		12,023
Credit card		2,321		2,324		2,295		2,232		2,230
Other consumer loans and leases		440		395		361		359		343

Subtotal—consumer		35,929		36,775		36,555		36,373		36,449

Total average loans and leases (excluding held for sale)	$	90,508	$	91,041	$	90,799	$	90,549	$	89,530

Average loans held for sale		1,151		540		629		692		708
End of Period Loans and Leases
Commercial:
Commercial and industrial loans	$	42,052	$	40,765	$	41,072	$	41,299	$	40,591
Commercial mortgage loans		7,209		7,399		7,564		7,805		7,958
Commercial construction loans		2,302		2,069		1,702		1,424		1,218
Commercial leases		3,786		3,720		3,554		3,567		3,577

Subtotal—commercial		55,349		53,953		53,892		54,095		53,344
Consumer:
Residential mortgage loans		12,569		12,389		12,941		12,652		12,626
Home equity		8,714		8,886		8,987		9,056		9,125
Automobile loans		11,873		12,037		12,121		12,050		12,088
Credit card		2,291		2,401		2,317		2,261		2,177
Other consumer loans and leases		448		418		366		370		345

Subtotal—consumer		35,895		36,131		36,732		36,389		36,361

Total portfolio loans and leases	$	91,244	$	90,084	$	90,624	$	90,484	$	89,705

Core business activity		722		590		634		677		776
Portfolio management activity		2		671		7		5		4

Total loans held for sale		724		1,261		641		682		780
Operating lease equipment		725		728		732		667		714
Loans and Leases Serviced for Others:^(a)
Commercial and industrial loans		609		637		620		649		702
Commercial mortgage loans		279		270		274		277		280
Commercial construction loans		21		20		22		39		35
Commercial leases		257		283		267		235		223
Residential mortgage loans		64,178		65,413		66,808		68,085		68,909
Automobile loans		203		232		263		297		334

Total loans and leases serviced for others		65,547		66,855		68,254		69,582		70,483

Total loans and leases serviced	$	158,240	$	158,928	$	160,251	$	161,415	$	161,682

(a)

Fifth Third sells certain loans and leases and obtains servicing responsibilities.

Fifth Third Bancorp and Subsidiaries

Regulatory Capital^(a)

$ in millions

(unaudited)


	Basel III Transitional			*Basel I^(c)***
	As of
	March 2015			December 2014			September 2014			June 2014			March 2014
Tier I capital:
Common stock and related surplus (net of treasury stock)		2,565			N/A			N/A			N/A			N/A
Retained earnings		11,401			N/A			N/A			N/A			N/A
Common equity tier I capital adjustments and deductions		(2,399	)		N/A			N/A			N/A			N/A

Common equity tier I		11,567			N/A			N/A			N/A			N/A
Additional tier I capital		1,343			N/A			N/A			N/A			N/A

Tier I capital		12,910			12,764			12,661			12,644			12,182
Tier II capital		4,112			4,131			4,103			4,101			4,174

Total risk-based capital		17,022			16,895			16,764			16,745			16,356

Risk-weighted assets		120,248	^(b)		117,878			116,917			117,117			116,622
Ratios:
Average shareholders’ equity to average assets		11.49	%		11.54	%		11.71	%		11.57	%		11.53	%
Regulatory capital:

	Basel III Transitional			*Basel I^(c)***
Fifth Third Bancorp
Common equity tier 1		9.62	%^(b)		N/A			N/A			N/A			N/A
Tier I risk-based capital		10.74	%^(b)		10.83	%		10.83	%		10.80	%		10.45	%
Total risk-based capital		14.16	%^(b)		14.33	%		14.34	%		14.30	%		14.02	%
Tier I leverage		9.61	%		9.66	%		9.82	%		9.86	%		9.71	%
Tier I common equity		N/A			9.65	%^(d)		9.64	%^(d)		9.61	%^(d)		9.51	%^(d)
Fifth Third Bank
Tier I risk-based capital		11.57	%^(b)		11.85	%		11.87	%		11.79	%		11.65	%
Total risk-based capital		12.81	%^(b)		13.10	%		13.12	%		13.04	%		12.91	%
Tier I leverage		10.33	%		10.58	%		10.77	%		10.77	%		10.84	%

(a)

Current period regulatory capital data and ratios are estimated.

(b)

(c)

These capital amounts and ratios were calculated under the Supervisory Agencies general risk-based capital rules (Basel I) which were in effect prior to January 1, 2015.

(d)

This ratio has been included herein to facilitate a greater understanding of the Bancorp’s capital structure and financial condition. Non-GAAP measure; see Reg. G reconciliation on page 32.

Fifth Third Bancorp and Subsidiaries

Summary of Credit Loss Experience

$ in millions

(unaudited)


	For the Three Months Ended
	March 2015			December 2014			September 2014			June 2014			March 2014
Average loans and leases (excluding held for sale):
Commercial and industrial loans	$	41,426		$	41,277		$	41,477		$	41,374		$	40,377
Commercial mortgage loans		7,241			7,480			7,633			7,885			7,981
Commercial construction loans		2,197			1,909			1,563			1,362			1,116
Commercial leases		3,715			3,600			3,571			3,555			3,607
Residential mortgage loans		12,433			13,046			12,785			12,611			12,659
Home equity		8,802			8,937			9,009			9,101			9,194
Automobile loans		11,933			12,073			12,105			12,070			12,023
Credit card		2,321			2,324			2,295			2,232			2,230
Other consumer loans and leases		440			395			361			359			343

Total average loans and leases (excluding held for sale)	$	90,508		$	91,041		$	90,799		$	90,549		$	89,530

Losses charged off:
Commercial and industrial loans		($43	)		($50	)		($62	)		($36	)		($100	)
Commercial mortgage loans		(5	)		(12	)		(10	)		(11	)		(5	)
Commercial construction loans		—			—			—			(8	)		(5	)
Commercial leases		—			(1	)		—			—			—
Residential mortgage loans		(9	)		(97	)		(12	)		(11	)		(19	)
Home equity		(17	)		(15	)		(18	)		(22	)		(20	)
Automobile loans		(13	)		(11	)		(11	)		(10	)		(12	)
Credit card		(24	)		(23	)		(26	)		(24	)		(22	)
Other consumer loans and leases		(4	)		(6	)		(7	)		(5	)		(7	)

Total losses		(115	)		(215	)		(146	)		(127	)		(190	)
Recoveries of losses previously charged off:
Commercial and industrial loans		5			6			12			5			3
Commercial mortgage loans		4			2			5			2			2
Commercial construction loans		—			—			—			—			—
Commercial leases		—			—			—			—			—
Residential mortgage loans		3			3			3			3			4
Home equity		3			4			4			4			4
Automobile loans		5			4			4			5			4
Credit card		3			3			3			3			3
Other consumer loans and leases		1			2			—			4			2

Total recoveries		24			24			31			26			22
Net losses charged off:
Commercial and industrial loans		(38	)		(44	)		(50	)		(31	)		(97	)
Commercial mortgage loans		(1	)		(10	)		(5	)		(9	)		(3	)
Commercial construction loans		—			—			—			(8	)		(5	)
Commercial leases		—			(1	)		—			—			—
Residential mortgage loans		(6	)		(94	)		(9	)		(8	)		(15	)
Home equity		(14	)		(11	)		(14	)		(18	)		(16	)
Automobile loans		(8	)		(7	)		(7	)		(5	)		(8	)
Credit card		(21	)		(20	)		(23	)		(21	)		(19	)
Other consumer loans and leases		(3	)		(4	)		(7	)		(1	)		(5	)

Total net losses charged off		($91	)		($191	)		($115	)		($101	)		($168	)

Net charge-off ratios:
Commercial and industrial loans		0.38	%		0.43	%		0.48	%		0.30	%		0.97	%
Commercial mortgage loans		0.05	%		0.53	%		0.24	%		0.44	%		0.16	%
Commercial construction loans		(0.06	%)		(0.01	%)		(0.11	%)		2.26	%		1.66	%
Commercial leases		0.00	%		0.06	%		0.00	%		0.00	%		(0.03	%)
Residential mortgage loans		0.19	%		2.87	%		0.28	%		0.24	%		0.49	%
Home equity		0.61	%		0.47	%		0.63	%		0.80	%		0.72	%
Automobile loans		0.28	%		0.22	%		0.24	%		0.15	%		0.29	%
Credit card		3.60	%		3.40	%		3.89	%		3.71	%		3.41	%
Other consumer loans and leases		4.02	%		4.57	%		8.13	%		4.08	%		6.58	%

Total net charge-off ratio		0.41	%		0.83	%		0.50	%		0.45	%		0.76	%

Fifth Third Bancorp and Subsidiaries

Asset Quality

$ in millions

(unaudited)


	For the Three Months Ended
	March 2015			December 2014			September 2014			June 2014			March 2014
Allowance for Credit Losses
Allowance for loan and lease losses, beginning	$	1,322		$	1,414		$	1,458		$	1,483		$	1,582
Total net losses charged-off		(91	)		(191	)		(115	)		(101	)		(168	)
Provision for loan and lease losses		69			99			71			76			69

Allowance for loan and lease losses, ending	$	1,300		$	1,322		$	1,414		$	1,458		$	1,483
Reserve for unfunded commitments, beginning	$	135		$	134		$	142		$	153		$	162
Provision (benefit) for unfunded commitments		(4	)		1			(8	)		(11	)		(9	)
Charge-offs		(1	)		—			—			—			—

Reserve for unfunded commitments, ending	$	130		$	135		$	134		$	142		$	153

Components of allowance for credit losses:
Allowance for loan and lease losses	$	1,300		$	1,322		$	1,414		$	1,458		$	1,483
Reserve for unfunded commitments		130			135			134			142			153

Total allowance for credit losses	$	1,430		$	1,457		$	1,548		$	1,600		$	1,636


	As of
	March 2015			December 2014			September 2014			June 2014			March 2014
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
Commercial and industrial loans	$	61		$	86		$	102		$	103		$	153
Commercial mortgage loans		57			64			77			86			96
Commercial construction loans		—			—			2			3			3
Commercial leases		2			3			3			2			3
Residential mortgage loans		40			44			52			56			68
Home equity		71			72			69			73			75

Total nonaccrual portfolio loans and leases (excludes restructured loans)		231			269			305			323			398
Restructured loans—commercial (nonaccrual)		205			214			201			202			209
Restructured loans—consumer (nonaccrual)		90			96			114			115			126

Total nonaccrual portfolio loans and leases		526			579			620			640			733
Repossessed property		20			18			19			18			6
Other real estate owned		145			147	^(b)		157	^(b)		174	^(b)		207	^(b)

Total nonperforming assets^(a)		691			744			796			832			946
Nonaccrual loans held for sale		2			24			4			5			3
Restructured loans—(nonaccrual) held for sale		—			15			3			—			—

Total nonperforming assets including loans held for sale	$	693		$	783		$	803		$	837		$	949

Restructured portfolio consumer loans and leases (accrual)	$	943		$	905		$	1,610		$	1,623		$	1,682
Restructured portfolio commercial loans and leases (accrual)	$	774		$	844		$	885		$	914		$	847
Ninety days past due loans and leases:
Commercial and industrial loans	$	2		$	—		$	—		$	—		$	1
Commercial mortgage loans		1			—			1			—			—
Commercial construction loans		—			—			—			—			—
Commercial leases		—			—			—			—			—

Total commercial loans and leases		3			—			1			—			1

Residential mortgage loans		48			56			57			60			56
Home equity		—			—			—			—			—
Automobile loans		7			8			8			8			7
Credit card		20			23			21			26			30
Other consumer loans and leases		—			—			—			—			—

Total consumer loans and leases		75			87			86			94			93

Total ninety days past due loans and leases^(c)	$	78		$	87		$	87		$	94		$	94

Ratios
Net losses charged-off as a percent of average loans and leases		0.41	%		0.83	%		0.50	%		0.45	%		0.76	%
Allowance for loan and lease losses:
As a percent of portfolio loans and leases		1.42	%		1.47	%		1.56	%		1.61	%		1.65	%
As a percent of nonperforming loans and leases^(a)		247	%		228	%		228	%		228	%		202	%
As a percent of nonperforming assets^(a)		188	%		178	%		178	%		175	%		157	%
Nonperforming loans and leases as a percent of portfolio loans, leases and other assets , including other real estate owned^(a)		0.57	%		0.64	%		0.68	%		0.70	%		0.82	%
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned^(a)		0.76	%		0.82	%		0.88	%		0.92	%		1.05	%
Nonperforming assets as a percent of total loans, leases and other assets, including other real estate owned		0.75	%		0.86	%		0.88	%		0.92	%		1.05	%
Allowance for credit losses as a percent of nonperforming assets		207	%		196	%		195	%		192	%		173	%

(a)

Does not include nonaccrual loans held for sale.

(b)

(c)

Does not include loans held for sale.

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconciliation

$ and shares in millions

(unaudited)


	For the Three Months Ended
	March 2015			December 2014			September 2014			June 2014			March 2014
Income before income taxes (U.S. GAAP)	$	515		$	519		$	464		$	606		$	438
Add: Provision expense (U.S. GAAP)		69			99			71			76			69

Pre-provision net revenue		584			618			535			682			507
Net income available to common shareholders (U.S. GAAP)		367			362			328			416			309
Add: Intangible amortization, net of tax		—			1			1			1			1

Tangible net income available to common shareholders		367			363			329			417			310
Tangible net income available to common shareholders (annualized) (a)		1,488			1,440			1,305			1,673			1,257
Average Bancorp shareholders’ equity (U.S. GAAP)		15,820			15,644			15,486			15,157			14,862
Less: Average preferred stock		(1,331	)		(1,331	)		(1,331	)		(1,119	)		(1,034	)
Average goodwill		(2,416	)		(2,416	)		(2,416	)		(2,416	)		(2,416	)
Average intangible assets and other servicing rights		(15	)		(17	)		(16	)		(17	)		(19	)

Average tangible common equity (b)		12,058			11,880			11,723			11,605			11,393
Total Bancorp shareholders’ equity (U.S. GAAP)		15,885			15,626			15,404			15,469			14,826
Less: Preferred stock		(1,331	)		(1,331	)		(1,331	)		(1,331	)		(1,034	)
Goodwill		(2,416	)		(2,416	)		(2,416	)		(2,416	)		(2,416	)
Intangible assets and other servicing rights		(15	)		(16	)		(16	)		(17	)		(18	)

Tangible common equity, including unrealized gains / losses (c)		12,123			11,863			11,641			11,705			11,358
Less: Accumulated other comprehensive income		(588	)		(429	)		(301	)		(382	)		(196	)

Tangible common equity, excluding unrealized gains / losses (d)		11,535			11,434			11,340			11,323			11,162
Add: Preferred stock		1,331			1,331			1,331			1,331			1,034

Tangible equity (e)		12,866			12,765			12,671			12,654			12,196
Total assets (U.S. GAAP)		140,499			138,706			134,188			132,562			129,654
Less: Goodwill		(2,416	)		(2,416	)		(2,416	)		(2,416	)		(2,416	)
Intangible assets and other servicing rights		(15	)		(16	)		(16	)		(17	)		(18	)

Tangible assets, including unrealized gains / losses (f)		138,068			136,274			131,756			130,129			127,220
Less: Accumulated other comprehensive income / loss, before tax		(905	)		(660	)		(463	)		(588	)		(302	)

Tangible assets, excluding unrealized gains / losses (g)		137,163			135,614			131,293			129,541			126,918
Total Bancorp shareholders’ equity (U.S. GAAP)		N/A			15,626			15,404			15,469			14,826
Goodwill and certain other intangibles		N/A			(2,476	)		(2,484	)		(2,484	)		(2,490	)
Unrealized gains		N/A			(429	)		(301	)		(382	)		(196	)
Qualifying trust preferred securities		N/A			60			60			60			60
Other		N/A			(17	)		(18	)		(19	)		(18	)

Tier I capital		N/A			12,764			12,661			12,644			12,182
Less: Preferred stock		N/A			(1,331	)		(1,331	)		(1,331	)		(1,034	)
Qualifying trust preferred securities		N/A			(60	)		(60	)		(60	)		(60	)
Qualifying noncontrolling interests in consolidated subsidiaries		N/A			(1	)		(1	)		(1	)		(1	)

Tier I common equity (h)		N/A	⁽³⁾		11,372			11,269			11,252			11,087
Common shares outstanding (i)		815			824			834			844			848

	Basel III Transitional			Basel I
Risk-weighted assets (actual) (j)		120,248			117,878			116,917			117,117			116,622
Ratios:
Return on average tangible common equity (a) / (b)		12.3	%		12.1	%		11.1	%		14.4	%		11.0	%
Tangible equity (e) / (g)		9.38	%		9.41	%		9.65	%		9.77	%		9.61	%
Tangible common equity (excluding unrealized gains/losses) (d) / (g)		8.41	%		8.43	%		8.64	%		8.74	%		8.79	%
Tangible common equity (including unrealized gains/losses) (c) / (f)		8.78	%		8.71	%		8.84	%		9.00	%		8.93	%
Tangible common equity as a percent of risk-weighted assets (excluding unrealized gains/losses) (d) / (j)		9.59	%		9.70	%		9.70	%		9.67	%		9.57	%
Tangible book value per share (c) / (i)	$	14.87		$	14.40		$	13.95		$	13.86		$	13.40
Tier I common equity (h) / (j)		N/A	⁽³⁾		9.65	%		9.64	%		9.61	%		9.51	%

Basel III-Estimated Tier I common equity ratio

	March 2015⁽³⁾			December 2014			September 2014			June 2014			March 2014
Tier I common equity (Basel I)		N/A			11,372			11,269			11,252			11,087
Add: Adjustment related to capital components		N/A			84			99			96			99

Estimated Tier I common equity under final Basel III rules without AOCI (opt out)⁽¹⁾		N/A			11,456			11,368			11,348			11,186

Estimated risk-weighted assets under final Basel III rules ⁽²⁾		N/A			122,018			122,219			122,465			122,659
Estimated Tier I common equity ratio under final Basel III rules (opt out) (1) / (2)		N/A			9.39	%		9.38	%		9.27	%		9.12	%

(1)

Fifth Third will make a one-time permanent election to not include AOCI in common equity tier I capital in the March 31, 2015 FFIEC 031 and Y-9C filings.

(2)

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 I capital; and (4) Derivatives are differentiated between exchange clearing and over-the-counter and the 50% risk-weight cap is removed.

(3)

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.

Fifth Third Bancorp and Subsidiaries

Segment Presentation

$ in millions

(unaudited)


For the three months ended March 31, 2015	Commercial Banking			Branch Banking			Consumer Lending			Investment Advisors			Other/ Eliminations			Total
Net interest income^(a)	$	397		$	377		$	63		$	29		($	14	)	$	852
Provision for loan and lease losses		(33	)		(42	)		(14	)		(2	)		22			(69	)

Net interest income after provision for loan and lease losses		364			335			49			27			8			783
Total noninterest income		204			176			129			107			44			660
Total noninterest expense		(357	)		(392	)		(104	)		(115	)		45			(923	)

Net income before taxes		211			119			74			19			97			520
Applicable income taxes^(a)		(27	)		(42	)		(26	)		(7	)		(36	)		(138	)

Net income		184			77			48			12			61			382
Net income attributable to noncontrolling interest		—			—			—			—			—			—

Net income attributable to Bancorp		184			77			48			12			61			382
Dividends on preferred stock		—			—			—			—			15			15

Net income available to common shareholders	$	184		$	77		$	48		$	12		$	46		$	367


For the three months ended December 31, 2014^(b)	Commercial Banking			Branch Banking			Consumer Lending			Investment Advisors			Other/ Eliminations			Total
Net interest income^(a)	$	420		$	402		$	64		$	31		($	29	)	$	888
Provision for loan and lease losses		(50	)		(40	)		(100	)		(1	)		92			(99	)

Net interest income after provision for loan and lease losses		370			362			(36	)		30			63			789
Total noninterest income		237			188			69			102			57			653
Total noninterest expense		(331	)		(386	)		(107	)		(111	)		17			(918	)

Income (loss) before income taxes		276			164			(74	)		21			137			524
Applicable income taxes^(a)		(55	)		(58	)		26			(7	)		(45	)		(139	)

Net income (loss)		221			106			(48	)		14			92			385
Net income attributable to noncontrolling interest		—			—			—			—			—			—

Net income (loss) attributable to Bancorp		221			106			(48	)		14			92			385
Dividends on preferred stock		—			—			—			—			23			23

Net income (loss) available to common shareholders	$	221		$	106		($	48	)	$	14		$	69		$	362


For the three months ended September 30, 2014^(b)	Commercial Banking			Branch Banking			Consumer Lending			Investment Advisors			Other/ Eliminations			Total
Net interest income^(a)	$	416		$	396		$	64		$	30		$	2		$	908
Provision for loan and lease losses		(47	)		(50	)		(17	)		(1	)		44			(71	)

Net interest income after provision for loan and lease losses		369			346			47			29			46			837
Total noninterest income		218			194			71			102			(65	)		520
Total noninterest expense		(323	)		(392	)		(114	)		(111	)		52			(888	)

Net income before taxes		264			148			4			20			33			469
Applicable income taxes^(a)		(52	)		(52	)		(1	)		(7	)		(17	)		(129	)

Net income		212			96			3			13			16			340
Net income attributable to noncontrolling interest		—			—			—			—			—			—

Net income attributable to Bancorp		212			96			3			13			16			340
Dividends on preferred stock		—			—			—			—			12			12

Net income available to common shareholders	$	212		$	96		$	3		$	13		$	4		$	328


For the three months ended June 30, 2014^(b)	Commercial Banking			Branch Banking			Consumer Lending			Investment Advisors			Other/ Eliminations			Total
Net interest income^(a)	$	408		$	384		$	65		$	29		$	19		$	905
Provision for loan and lease losses		(40	)		(47	)		(13	)		(1	)		25			(76	)

Net interest income after provision for loan and lease losses		368			337			52			28			44			829
Total noninterest income		216			171			90			101			158			736
Total noninterest expense		(330	)		(385	)		(165	)		(111	)		37			(954	)

Income (loss) before income taxes		254			123			(23	)		18			239			611
Applicable income taxes^(a)		(46	)		(43	)		8			(6	)		(85	)		(172	)

Net income (loss)		208			80			(15	)		12			154			439
Net income attributable to noncontrolling interest		—			—			—			—			—			—

Net income (loss) attributable to Bancorp		208			80			(15	)		12			154			439
Dividends on preferred stock		—			—			—			—			23			23

Net income (loss) available to common shareholders	$	208		$	80		($	15	)	$	12		$	131		$	416


For the three months ended March 31, 2014^(b)	Commercial Banking			Branch Banking			Consumer Lending			Investment Advisors			Other/ Eliminations			Total
Net interest income^(a)	$	403		$	391		$	64		$	32		$	8		$	898
Provision for loan and lease losses		(98	)		(45	)		(25	)		—			99			(69	)

Net interest income after provision for loan and lease losses		305			346			39			32			107			829
Total noninterest income		208			174			119			103			(40	)		564
Total noninterest expense		(333	)		(390	)		(167	)		(110	)		50			(950	)

Income (loss) before income taxes		180			130			(9	)		25			117			443
Applicable income taxes^(a)		(22	)		(45	)		3			(8	)		(52	)		(124	)

Net income (loss)		158			85			(6	)		17			65			319
Net income attributable to noncontrolling interest		—			—			—			—			1			1

Net income (loss) attributable to Bancorp		158			85			(6	)		17			64			318
Dividends on preferred stock		—			—			—			—			9			9

Net income (loss) available to common shareholders	$	158		$	85		($	6	)	$	17		$	55		$	309

(a)

Includes taxable equivalent adjustments of $5 million for the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014.

(b)

Prior period balances have been adjusted for changes in the structure of the reporting units.

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