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

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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-99.1 - EX-99.1 - FIFTH THIRD BANCORP	d911546dex991.htm

Exhibit 99.3

April 2015

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QUARTERLY FINANCIAL SUPPLEMENT

Investment Community Member:

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

Numbers are unaudited for quarterly information.

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

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Quarterly Data	Three Months Ended
	March		December		September		June		March		December		September		June
	2015		2014		2014		2014		2014		2013		2013		2013
Ratios (percent)
Return on average assets		1.12		1.13		1.02		1.34		1.00		1.24		1.35		1.94
Return on average common equity		10.3		10.0		9.2		11.9		9.0		10.8		12.1		17.3
Average Bancorp shareholders’ equity as a percent of average assets		11.49		11.54		11.71		11.57		11.53		11.51		11.71		11.64
Net interest margin^(a)		2.86		2.96		3.10		3.15		3.22		3.21		3.31		3.33
Efficiency^(a)		61.0		59.6		62.1		58.2		64.9		61.5		59.2		53.2
Net losses charged-off as a percent of average loans and leases		0.41		0.83		0.50		0.45		0.76		0.67		0.49		0.51
ALLL as a percent of portfolio loans and leases		1.42		1.47		1.56		1.61		1.65		1.79		1.92		1.99
Allowance for credit losses as a percent of portfolio loans and leases		1.57		1.62		1.71		1.77		1.82		1.97		2.11		2.18
Nonperforming assets as a percent of portfolio loans, leases and other assets, including OREO^(b)		0.76		0.82		0.88		0.92		1.05		1.10		1.16		1.32
Allowance for loan and lease losses as a percent of nonperforming assets^(b)		188		178		178		175		157		161		165		151
Allowance for credit losses as a percent of nonperforming assets^(b)		207		196		195		192		173		178		182		165
Common Share Data
Earnings per share	$	0.45	$	0.44	$	0.39	$	0.49	$	0.36	$	0.44	$	0.47	$	0.67
Earnings per diluted share	$	0.44	$	0.43	$	0.39	$	0.49	$	0.36	$	0.43	$	0.47	$	0.65
Cash dividends per common share		0.13		0.13		0.13		0.13		0.12		0.12		0.12		0.12
Book value per share		17.85		17.35		16.87		16.74		16.27		15.85		15.84		15.56
Common shares outstanding, excluding treasury		815,190,210		824,046,952		834,261,897		844,488,849		847,568,728		855,305,745		887,029,539		851,473,955
Market price per share:
High	$	20.21	$	20.69	$	21.75	$	23.19	$	23.39	$	21.04	$	19.69	$	18.60
Low		17.22		17.74		19.52		20.03		20.50		17.50		18.04		15.80
End of period		18.85		20.38		20.02		21.35		22.96		21.03		18.05		18.05
Supplemental Data
Common dividends declared ($ in millions)	$	106	$	107	$	108	$	110	$	102	$	103	$	106	$	102
Full-time equivalent employees		18,471		18,351		18,503		18,732		19,080		19,446		20,256		20,569
Banking centers		1,303		1,302		1,308		1,309		1,311		1,320		1,326		1,326
ATMs		2,637		2,638		2,639		2,619		2,614		2,586		2,374		2,433

(a)

Presented on a fully taxable equivalent basis (FTE).

(b)

Excludes nonperforming assets held for sale.

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Quarterly Data	Three Months Ended
	March			December			September			June			March			December			September			June
	2015			2014			2014			2014			2014			2013			2013			2013
Income Statement ($ in millions)
Interest income (FTE)	$	975		$	1,016		$	1,023		$	1,013		$	998		$	1,007		$	997		$	989
Interest expense		123			128			115			108			100			102			99			104

Net interest income (FTE)		852			888			908			905			898			905			898			885
Provision for loan and lease losses		69			99			71			76			69			53			51			64
Noninterest income:
Service charges on deposits		135			142			145			139			133			142			140			136
Investment advisory revenue		108			100			103			102			102			98			97			98
Corporate banking revenue		92			120			100			107			104			94			102			106
Mortgage banking net revenue		86			61			61			78			109			126			121			233
Card and processing revenue		71			76			75			76			68			71			69			67
Other noninterest income		164			150			33			226			41			170			185			414
Securities gains, net		4			4			3			8			7			2			2			—
Securities gains, net—non-qualifying hedges on mortgage servicing rights		—			—			—			—			—			—			5			6

Total noninterest income		660			653			520			736			564			703			721			1,060
Noninterest expense:
Salaries, wages and incentives		369			366			357			368			359			388			389			404
Employee benefits		99			79			75			79			101			78			83			83
Net occupancy expense		79			77			78			79			80			77			75			76
Technology and communications		55			54			53			52			53			53			52			50
Equipment expense		31			30			30			30			30			29			29			28
Card and processing expense		36			36			37			37			31			37			33			33
Other noninterest expense		254			276			258			309			296			327			298			361

Total noninterest expense		923			918			888			954			950			989			959			1,035
Income before income taxes (FTE)		520			524			469			611			443			566			609			846
Taxable equivalent adjustment		5			5			5			5			5			5			5			5

Income before income taxes		515			519			464			606			438			561			604			841
Applicable income tax expense		133			134			124			167			119			159			183			250

Net income	$	382		$	385		$	340		$	439		$	319		$	402		$	421		$	591
Less: Net income attributable to noncontrolling interests		—			—			—			—			1			—			—			—

Net income attributable to Bancorp	$	382		$	385		$	340		$	439		$	318		$	402		$	421		$	591
Dividends on preferred stock		15			23			12			23			9			19			—			9

Net income available to common shareholders	$	367		$	362		$	328		$	416		$	309		$	383		$	421		$	582


	Basel III			Basel I
*Regulatory Capital Data ($ in millions)^(a)***
Common equity tier I	$	11,567			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Additional tier I capital		1,343			N/A			N/A			N/A			N/A			N/A			N/A			N/A

Tier I capital	$	12,910		$	12,764		$	12,661		$	12,644		$	12,182		$	12,094		$	12,762		$	12,426
Tier II capital		4,112			4,131			4,103			4,101			4,174			4,337			3,665			3,666

Total risk-based capital	$	17,022		$	16,895		$	16,764		$	16,745		$	16,356		$	16,431		$	16,427		$	16,092

Risk-weighted assets	$	120,248	^(b)	$	117,878		$	116,917		$	117,117		$	116,622		$	115,969		$	113,801		$	111,559

Common equity tier 1 ratio		9.62	%^(b)		N/A			N/A			N/A			N/A			N/A			N/A			N/A
Tier I risk-based capital ratio		10.74	%^(b)		10.83	%		10.83	%		10.80	%		10.45	%		10.43	%		11.21	%		11.14	%
Total risk-based capital ratio		14.16	%^(b)		14.33	%		14.34	%		14.30	%		14.02	%		14.17	%		14.43	%		14.43	%
Tier I leverage ratio		9.61	%		9.66	%		9.82	%		9.86	%		9.71	%		9.73	%		10.64	%		10.45	%
Tier I common equity ratio		N/A			9.65	%^(c)		9.64	%^(c)		9.61	%^(c)		9.51	%^(c)		9.45	%^(c)		9.95	%^(c)		9.49	%^(c)

(a)

Current period regulatory capital data and ratios are estimated.

(b)

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.

(c)

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

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Quarterly Data	As of
	March			December			September			June			March			December			September			June
	2015			2014			2014			2014			2014			2013			2013			2013
Balance Sheet ($ in millions, except share data)
Assets
Cash and due from banks	$	2,920		$	3,091		$	3,125		$	3,312		$	3,153		$	3,178		$	2,887		$	2,390
Available-for-sale and other securities		26,409			22,408			22,912			22,814			20,749			18,597			18,080			16,187
Held-to-maturity securities		177			187			191			194			195			208			265			274
Trading securities		392			360			389			361			347			343			246			219
Other short-term investments		4,919			7,914			3,637			2,386			2,202			5,116			2,622			1,109

Total cash and securities		34,817			33,960			30,254			29,067			26,646			27,442			24,100			20,179
Loans held for sale		724			1,261			641			682			780			944			1,330			2,148
Portfolio loans and leases		91,244			90,084			90,624			90,484			89,705			88,614			87,231			87,032

Total loans and leases		91,968			91,345			91,265			91,166			90,485			89,558			88,561			89,180
Allowance for loan and lease losses		(1,300	)		(1,322	)		(1,414	)		(1,458	)		(1,483	)		(1,582	)		(1,677	)		(1,735	)
Bank premises and equipment		2,433			2,465			2,467			2,491			2,528			2,531			2,528			2,540
Operating lease equipment		725			728			732			667			714			730			707			645
Goodwill		2,416			2,416			2,416			2,416			2,416			2,416			2,416			2,416
Intangible assets		14			15			16			17			18			19			21			23
Servicing rights		789			858			935			931			975			971			919			899
Other real estate owned		145	^(a)		217			242			266			291			299			312			301
Other assets		8,492			8,024			7,275			6,999			7,064			8,059			7,786			8,912

Total assets	$	140,499		$	138,706		$	134,188		$	132,562		$	129,654		$	130,443		$	125,673		$	123,360

Liabilities
Deposits:
Demand	$	35,343		$	34,809		$	32,258		$	32,140		$	31,234		$	32,634		$	30,153		$	30,097
Interest checking		27,191			26,800			24,930			24,744			25,472			25,875			23,527			22,878
Savings		15,355			15,051			15,355			16,087			16,867			17,045			17,583			18,448
Money market		18,105			17,083			16,199			14,216			13,208			11,644			10,433			9,247
Foreign office		811			1,114			1,577			1,418			1,922			1,976			1,409			1,570
Other time		4,044			3,960			3,856			3,724			3,660			3,530			3,524			3,793
Certificates—$100,000 and over		2,566			2,895			3,117			3,623			4,511			6,571			7,497			7,374
Other foreign office		—			—			—			—			—			—			—			47

Total deposits		103,415			101,712			97,292			95,952			96,874			99,275			94,126			93,454
Federal funds purchased		200			144			148			153			268			284			225			636
Other short-term borrowings		1,413			1,556			2,730			3,146			2,717			1,380			3,487			2,112
Other liabilities		5,491			4,662			4,239			3,842			3,698			5,245			5,057			5,941
Long-term debt		14,055			14,967			14,336			13,961			11,233			9,633			8,098			6,940

Total liabilities		124,574			123,041			118,745			117,054			114,790			115,817			110,993			109,083

Equity
Common and preferred equity		17,442			17,169			16,889			16,661			16,122			15,802			15,085			15,292
Net unrealized gains:
Available-for-sale securities		608			475			338			410			231			121			268			203
Qualifying cash flow hedges		47			23			12			22			16			13			31			29
Accumulated other comprehensive income
related to employee benefit plans		(67	)		(69	)		(49	)		(50	)		(51	)		(52	)		(81	)		(83	)
Treasury stock, at cost		(2,145	)		(1,972	)		(1,786	)		(1,574	)		(1,492	)		(1,295	)		(662	)		(1,202	)

Total Bancorp shareholders’ equity		15,885			15,626			15,404			15,469			14,826			14,589			14,641			14,239
Noncontrolling interests		40			39			39			39			38			37			39			38

Total equity		15,925			15,665			15,443			15,508			14,864			14,626			14,680			14,277

Total liabilities and equity	$	140,499		$	138,706		$	134,188		$	132,562		$	129,654		$	130,443		$	125,673		$	123,360

Share Data
Preferred shares outstanding—Series G		—			—			—			—			—			—			—			16,442
Preferred shares outstanding—Series H		24,000			24,000			24,000			24,000			24,000			24,000			24,000			24,000
Preferred shares outstanding—Series I		18,000			18,000			18,000			18,000			18,000			18,000			—			—
Preferred shares outstanding—Series J		12,000			12,000			12,000			12,000			—			—			—			—
Common shares outstanding, excluding treasury		815,190,210			824,046,952			834,261,897			844,488,849			847,568,728			855,305,745			887,029,539			851,473,955
Treasury shares held		108,702,371			99,845,629			89,630,684			79,403,732			76,323,853			68,586,836			36,863,042			72,418,626

(a)

During the first quarter of 2015, Fifth Third adopted Accounting Standards Update 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure. This ASU requires that certain government guaranteed residential real estate mortgage loans that meet specific criteria be recognized as other receivables upon foreclosure; previously these assets were included in OREO. Government guaranteed residential real estate mortgage loans that completed foreclosure during the first quarter of 2015 and met the criteria specified by ASU 2014-14 are excluded from this line and included in other receivables in the other assets category above.

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Quarterly Data
	Three Months Ended
	March 2015			December 2014			September 2014			June 2014			March 2014			December 2013			September 2013			June 2013
Average Balance Sheet ($ in millions, except share data)
Assets
Interest-earning assets:
Loans and leases		91,659		$	91,581		$	91,428			91,241		$	90,238		$	88,865			89,154		$	89,473
Taxable securities		23,102			22,364			22,594			21,706			20,385			18,383			16,590			15,346
Tax exempt securities		59			64			50			52			46			48			44			55
Other short-term investments		5,877			5,176			2,283			2,182			2,509			4,612			1,894			1,561

Total interest-earning assets		120,697			119,185			116,355			115,181			113,178			111,908			107,682			106,435
Cash and due from banks		2,830			3,008			2,862			2,847			2,850			2,956			2,380			2,359
Other assets		15,447			14,800			14,461			14,417			14,478			14,986			15,015			15,198
Allowance for loan and lease losses		(1,322	)		(1,413	)		(1,458	)		(1,480	)		(1,576	)		(1,671	)		(1,731	)		(1,780	)

Total assets		137,652		$	135,580		$	132,220		$	130,965		$	128,930		$	128,179		$	123,346		$	122,212

Liabilities
Interest-bearing liabilities:
Interest checking		26,885		$	25,478		$	24,926		$	25,222		$	25,911		$	24,650		$	23,116		$	22,796
Savings		15,174			15,173			15,759			16,509			16,903			17,323			18,026			18,864
Money market		17,492			17,023			15,222			13,942			12,439			11,285			9,693			8,918
Foreign office		861			1,439			1,663			2,200			2,017			1,717			1,755			1,418
Other time		4,022			3,936			3,800			3,693			3,616			3,529			3,676			3,859
Certificates—$100,000 and over		2,683			2,998			3,339			3,840			5,576			7,456			7,315			6,519
Other foreign office		—			—			—			—			—			—			17			10
Federal funds purchased		172			161			520			606			547			301			464			560
Other short-term borrowings		1,602			1,481			1,973			2,234			1,808			2,177			1,675			2,867
Long-term debt		14,448			14,855			13,955			12,524			10,313			9,135			7,453			7,552

Total interest-bearing liabilities		83,339			82,544			81,157			80,770			79,130			77,573			73,190			73,363
Demand deposits		33,760			33,301			31,790			31,275			30,626			30,765			30,655			29,682
Other liabilities		4,694			4,052			3,749			3,724			4,274			5,045			5,023			4,908

Total liabilities		121,793			119,897			116,696			115,769			114,030			113,383			108,868			107,953
Equity		15,859			15,683			15,524			15,196			14,900			14,796			14,478			14,259

Total liabilities and equity		137,652		$	135,580		$	132,220		$	130,965		$	128,930		$	128,179		$	123,346		$	122,212

Average loans and leases (excluding held for sale)		90,508		$	91,041		$	90,799		$	90,549		$	89,530		$	87,895		$	87,272		$	86,707
Share Data
Average common shares outstanding - basic		810,209,585			819,057,247			829,391,505			838,492,046			845,860,065			868,077,089			880,182,513			858,582,710
Average common shares outstanding - diluted		818,672,259			827,831,317			838,324,420			848,245,111			857,923,596			877,510,663			888,111,269			900,625,454

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Quarterly Data	Three Months Ended
	March 2015			December 2014			September 2014			June 2014			March 2014			December 2013			September 2013			June 2013
End of Period Loans and Leases ($ in millions)^{(net of unearned discount)}
Commercial:
Commercial and industrial loans	$	42,062		$	40,801		$	41,111		$	41,364		$	40,692		$	39,347		$	38,260		$	37,868
Commercial mortgage loans		7,210			7,410			7,566			7,807			7,959			8,069			8,058			8,450
Commercial construction loans		2,303			2,071			1,704			1,426			1,220			1,041			879			758
Commercial leases		3,787			3,721			3,555			3,572			3,577			3,626			3,572			3,570

Subtotal—commercial		55,362			54,003			53,936			54,169			53,448			52,083			50,769			50,646
Consumer:
Residential mortgage loans		13,258			13,582			13,520			13,250			13,275			13,570			13,832			14,513
Home equity		8,714			8,886			8,987			9,056			9,125			9,246			9,356			9,531
Automobile loans		11,873			12,037			12,121			12,050			12,088			11,984			12,072			12,015
Credit card		2,291			2,401			2,317			2,261			2,177			2,294			2,157			2,114
Other consumer loans and leases		470			436			384			380			372			381			375			361

Subtotal—consumer		36,606			37,342			37,329			36,997			37,037			37,475			37,792			38,534

Total loans and leases	$	91,968		$	91,345		$	91,265		$	91,166		$	90,485		$	89,558		$	88,561		$	89,180

Average Loans and Leases ($ in millions)^{(net of unearned discount)}
Commercial:
Commercial and industrial loans	$	41,462		$	41,313		$	41,525		$	41,451		$	40,409		$	38,846		$	38,145		$	37,636
Commercial mortgage loans		7,248			7,482			7,637			7,886			7,983			8,051			8,280			8,627
Commercial construction loans		2,198			1,911			1,565			1,364			1,118			955			797			717
Commercial leases		3,716			3,601			3,576			3,556			3,607			3,579			3,574			3,553

Subtotal—commercial		54,624			54,307			54,303			54,257			53,117			51,431			50,796			50,533
Consumer:
Residential mortgage loans		13,515			13,526			13,342			13,202			13,304			13,544			14,333			14,984
Home equity		8,802			8,937			9,009			9,101			9,194			9,296			9,432			9,625
Automobile loans		11,933			12,073			12,105			12,070			12,023			12,019			12,083			11,887
Credit card		2,321			2,324			2,295			2,232			2,230			2,202			2,140			2,071
Other consumer loans and leases		464			414			374			379			370			373			370			373

Subtotal—consumer		37,035			37,274			37,125			36,984			37,121			37,434			38,358			38,940

Total average loans and leases	$	91,659		$	91,581		$	91,428		$	91,241		$	90,238		$	88,865		$	89,154		$	89,473

Asset Quality ($ in millions)
Nonaccrual portfolio loans and leases	$	231		$	269		$	305		$	323		$	398		$	387		$	391		$	551
Nonaccrual loans held for sale		2			24			4			5			3			6			11			15
Restructured loans—(nonaccrual) held for sale		—			15			3			—			—			—			—			—
Restructured loans and leases (nonaccrual) portfolio		295			310			315			317			335			364			379			358
OREO and other repossessed property		165			165	^(a)		176	^(a)		192	^(a)		213	^(a)		229	^(a)		244	^(a)		241	^(a)

Total nonperforming assets	$	693		$	783		$	803		$	837		$	949		$	986		$	1,025		$	1,165

Ninety days past due loans and leases	$	78		$	87		$	87		$	94		$	94		$	103		$	156		$	152

Nonperforming Loans ($ in millions)^{(nonaccrual plus renegotiated)}
Commercial and industrial loans and leases	$	200		$	241		$	267		$	249		$	301		$	287		$	310		$	356
Commercial mortgage loans		126			146			121			141			147			146			187			235
Commercial construction loans		1			2			4			10			19			31			34			47
Residential mortgage loans		70			94			111			117			141			165			166			202
Home equity		90			93			85			93			94			93			48			46
Other consumer loans and leases		41			42			39			35			34			35			36			38

Total nonperforming loans and leases (including held for sale)	$	528		$	618		$	627		$	645		$	736		$	757		$	781		$	924

Credit Charge-Offs ($ in millions)
Gross charge-offs	($	115	)	($	215	)	($	146	)	($	127	)	($	190	)	($	183	)	($	141	)	($	145	)
Recoveries		24			24			31			26			22			35			32		$	33

Net losses charged off	($	91	)	($	191	)	($	115	)	($	101	)	($	168	)	($	148	)	($	109	)	($	112	)

(a)

Excludes OREO related to government insured loans. During the first quarter of 2015, Fifth Third adopted Accounting Standards Update 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure. This ASU requires that certain government guaranteed residential real estate mortgage loans that meet specific criteria be recognized as other receivables upon foreclosure; during 2014 and 2013 these assets were included in OREO in the Bancorp’s Condensed Consolidated Balance Sheet.

Page 6

Jim Eglseder

Laura Wehby

SVP / Investor Relations

VP / Investor Relations

(513) 534-8424

(513) 534-7407