FIFTH THIRD BANCORP - FORM 8-K - EX-99.2

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EX-99.1 - EX-99.1 - FIFTH THIRD BANCORP	d158907dex991.htm

1Q16 Earnings Presentation

April 21, 2016

Refer to earnings release dated April 21, 2016 for further information.

Exhibit 99.2

Cautionary statement

This 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,” “anticipates,” “potential,”

“estimate,”

“forecast,”

“projected,”

“intends

to,”

may

include

other

similar

words

phrases

such

“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

our

most

recent

Annual

Report

Form

10-K

updated

from

time

our

Quarterly

Reports

Form

10-Q.

When

considering

these

forward-looking

statements,

you

should

keep

mind

these

risks

and

uncertainties,

well

any

cautionary

statements

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 is a risk that additional information may become known during the company’s quarterly closing process or as a result of subsequent

events that could affect the accuracy of the statements and financial information contained herein.

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 the economy weaken

and become less favorable than expected, particularly in the real estate market, either nationally or in the states in which Fifth Third, one or more

acquired

entities

and/or

the

combined

company

business;

(2)

deteriorating

credit

quality;

(3)

political

developments,

wars

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

accounting

financial

results

one

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; (22) difficulties in separating the

operations of any branches or other assets divested; (23) inability to achieve expected benefits from branch consolidations and planned sales within

desired

timeframes,

all;

(24)

ability

secure

confidential

information

and

deliver

products

and

services

through

the

use

computer

systems

and telecommunications networks; and (25) the impact of reputational risk created by these developments on such matters as business generation

and retention, funding and liquidity.

You

should

refer

our

periodic

and

current

reports

filed

with

the

Securities

and

Exchange

Commission,

“SEC,”

for

further

information

other

factors,

which

could

cause

actual

results

significantly

different

from

those

expressed

implied

these

forward-looking

statements.

•

Strong NII and NIM; continued benefit from steady

interest rate risk management strategy

•

Solid fee income despite market volatility

•

Strong corporate banking activity

•

Tightly controlled operational expenses

•

Executed on defined strategies

•

Credit quality excluding energy in line; monitoring

energy portfolio closely

First Quarter 2016 Highlights

Earnings Per

Reported $0.40

•Included $0.03 net benefit from certain

items*

Net Income to

Common

$312 million

LCR

118%

*1Q16 certain items detailed on page 4 of this presentation

1Q16 in review

Note: The percentages in all of the tables in this presentation are calculated on actual dollar amounts and not the rounded dollar amounts.

Excludes loans held-for-sale

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

Significant pre-tax items in 1Q16 results

($0.03

positive

after-tax

EPS

impact):

—

$47MM pre-tax (~$31MM after-tax) positive

valuation

adjustment

the

Vantiv

warrant

—

$8MM pre-tax (~$5MM after-tax) gain on

sale on St. Louis branches

—

($14MM) pre-tax (~$9MM after-tax)

voluntary early retirement expense

Core businesses showed seasonal trends

—

Strong corporate banking activity offset

seasonal impacts

Credit trends

—

NCO

ratio

bps;

increase

YoY

and 8 bps QoQ

—

NPA ratio of 88 bps; up 18 bps sequentially

—

Primarily due to deterioration in

RBL (reserve-based lending)

energy loans

—

Reserve on energy portfolio of 6.20% up

from 4.75% in 4Q15

($ in millions)

1Q16

Seq.

YOY

Average Balances

Total

loans

leases

$93,275

($319)

$2,767

Core deposits

$98,715

($1,013)

$521

Income Statement Data

Net interest income (taxable equivalent)

$909

Provision for loan and lease losses

119

31%

72%

Non-interest income

637

(42%)

Non-interest expense

986

Net income attributable to Bancorp

$327

(50%)

(9%)

Net income available to common

shareholders

$312

(51%)

(10%)

Financial Ratios

Earnings per share, diluted

0.40

(49%)

(5%)

Net interest margin

2.91%

6bps

5bps

Efficiency ratio

63.8%

1580bps

150bps

Return on average assets

0.93%

(90bps)

(13bps)

Return on average common equity

8.3%

(890bps)

(140bps)

Return

average

tangible

common

equity

9.9%

(1070bps)

(180bps)

Tangible

book

value

per

$ 16.32

10%

Balance sheet

Loan balances ($B)

•

Average commercial loans flat

sequentially; up 5% year-over-year

–

EOP C&I growth 3% sequentially

–

Year-over-year growth driven by:

C&I and commercial construction

–

Commodity broker balances of

$241MM; down 48% from peak

•

Average consumer loans down 1%

sequentially; up 1% year-over-year

–

Sold $158MM of consumer loans in

connection with St. Louis branches

•

Average transaction deposits down

$1.0B sequentially, driven by seasonal

declines primarily in commercial

demand deposit accounts

–

Sold $219MM of core deposits with

St. Louis branches

•

Average loan to core deposit ratio of

94%

•

LCR of 118% at 1Q16

Average core deposit balances ($B)

$98.7

$98.2

Average securities and short-term

investments ($B)

•

Average securities up $6.5B year-over-

year driven by:

–

LCR requirement additions

–

Positioning to maintain balanced

interest rate exposures

–

Securities portfolio / total assets of

21.3%; 19.2% in 1Q15

$30.1

$31.3

$29.0

$30.6

Note: Numbers may not sum due to rounding.

$31.6

$90.5

$92.2

$93.4

$93.6

$93.3

1Q15

2Q15

3Q15

4Q15

1Q16

$94.2

$96.5

$94.7

$95.7

$94.7

92%

95%

94%

80%

85%

90%

95%

100%

100

1Q15

2Q15

3Q15

4Q15

1Q16

Transaction deposits

Other time deposits

Loan to core deposit ratio

$23.2

$27.4

$28.3

$29.0

$29.7

1Q15

2Q15

3Q15

4Q15

1Q16

Average securities

Short-term investments

Net interest income

NII and NIM (FTE)

•

Sequential comparisons:

–

NII and NIM increase primarily due to the December Fed funds rate increase

–

NII and NIM both negatively impacted by:

–

Loan yield compression from mix shift, lower consumer loan balances, and Fed stock dividend rate

reduction

–

1 fewer day in 1Q16 vs. 4Q15 was a benefit to NIM, but a detriment to NII

•

Year-over-year comparisons:

–

NII increase driven by the impact of higher investment securities and loan balances

–

NIM increase primarily driven by lower year-over-year cash balances

$852

$892

$906

$904

$909

2.86%

2.90%

2.89%

2.85%

2.91%

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

1Q15

2Q15

3Q15

4Q15

1Q16

Net Interest Income ($MM)

NIM

Non-interest income

•

1Q16

reported

non-interest

income

impacted

Vantiv

warrant

valuation

adjustment

and

impact of branch sale

•

Sequential decrease in adjusted non-interest income overall reflected normal seasonal

trends and the annual $31MM tax receivable payment recognized in 4Q15

–

Wealth management impacted by equity markets and lower brokerage activity

–

Strong corporate banking activity offset normal seasonality

Non-interest Income ($MM)

$566

$637

$591

$623

$578

$630

$556

$713

$1,104

$637

$200

$400

$600

$800

$1,000

1Q15

2Q15

3Q15

4Q15

1Q16

Adjusted non-interest income

Reported non-interest income

Non-interest expense

•

Adjusted expenses up 2% sequentially, primarily due to:

–

Seasonal increase in FICA and unemployment tax

–

Costs associated with the voluntary retirement program

•

Adjusted expenses up 6% YoY:

–

Up 5% excluding 1Q15 benefit from tax liability settlement

–

Year-over-year growth primarily due to higher risk and compliance

compensation expense

Non-interest Expense ($MM)

Note: Provision for unfunded commitments was an expense of $6MM in 1Q16, an expense of $4M in 4Q15, an expense of $2M in 3Q15, an expense of $2M in 2Q15, and a benefit of $4M in

1Q15.

$916

$946

$939

$951

$971

$923

$947

$943

$963

$986

$750

$800

$850

$900

$950

$1,000

1Q15

2Q15

3Q15

4Q15

1Q16

Adjusted non-interest expense

Reported non-interest expense

$25

$50

$75

$100

$125

$150

$175

$200

1Q15

2Q15

3Q15

4Q15

1Q16

Consumer

Commercial

Credit quality overview

Net charge-offs ($MM)

$86

NCO ratio

0.41%

0.37%

0.80%

0.34%

$188

HFI Non-performing assets ($MM)

Reserve Coverage

$91

$80

Charge-off

restructuring

student

loan

backed

commercial

credit

originally

extended

2007

102

0.42%

$96

421

376

370

419

611

270

250

236

228

214

$200

$400

$600

$800

$1,000

1Q15

2Q15

3Q15

4Q15

1Q16

Commercial

Consumer

$825

NPA ratio 0.76% 0.67% 0.65% 0.70% 0.88%

$691

$626

$606

$647

•

1Q16 charge-offs up 8 bps from low levels in

4Q15

–

Includes $16MM increase in C&I loans

•

$9MM of 1Q16 charge-offs in OFS

(oil field services)

•

1Q16 portfolio NPA growth of $178MM

–

Primarily due to $168MM of energy loans,

predominantly RBL (reserve-based

lending)

•

1Q16 reserve of 1.38% up from 1.37% in 4Q15

$1,300

$1,293

$1,261

$1,272

$1,295

1.42%

1.39%

1.35%

1.37%

1.38%

$750

$850

$950

$1,050

$1,150

$1,250

$1,350

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

1Q15

2Q15

3Q15

4Q15

1Q16

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

ALLL / Loans and Leases

Energy Portfolio

$170

$443

$385

$722

$552

$294

$742

$232

$327

$105

$100

$200

$300

$400

$500

$600

$700

$800

OFS

RBL

Oil & Gas

Midstream

Refining

Total Exposure ($MM)

Unfunded Commitments

Outstandings

•

Energy balances stable at $1.7B

–

Total unfunded commitments of $2.3B

•

76% of total energy loans outstanding are SNCs

•

$9.2MM charge-offs in OFS (oil field services)

•

$168MM increase in NPAs sequentially; predominantly RBL (reserve-based lending)

–

All RBLs current on interest and well-collateralized

•

Reserves of 6.20% of funded loans, up from 4.75% in 4Q15

•

41% of energy loans are criticized, up from 36% in 4Q15

Commercial Real Estate Loans

•

Total CRE balance of $10.2B; 10.9% of total

portfolio loans

–

Total CRE balance of $17.4B at the end

of 2007; 22% of total portfolio loans

–

Peer group average is 13%

–

Balances flat over the past 5 years

•

Multi-family balances of $1.9B as of 1Q16

–

Multi-family construction book

geographically diverse

Non-owner Occupied Portfolio

Distribution ($MM)

2.56%

2.31%

2.32%

2.00%

1.87%

0.67%

0.51%

0.62%

0.26%

0.23%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

1Q15

2Q15

3Q15

4Q15

1Q16

Commercial Mortgage

Commercial Construction

Residential

and Land

$4,513

Other

$6,242

2007

Residential

and Land

$462

Other

$6,044

1Q16

Apartment

Retail

Office

Industrial

Hospitality

Other

Owner Occupied

Non-Owner Occupied

$1,862

$648

$731

$918

$1,078

$1,043

$531

$851

$1,177

$1,453

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

1Q16 CRE Property Type Breakout

$3,786

$6,506

($MM)

1Q16 Commercial Real Estate NPAs

Strong capital position

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

Represents Basel III common equity tier 1 ratio under the final capital rule, subject to phase-in periods. Fifth Third made a one-time permanent election to not include AOCI in

common equity tier 1 capital in the March 31, 2015 regulatory filings.

EOP share impact of 12.4 MM for 4Q15 and 14.4MM for 1Q16; Average share impact of 11.0MM for 4Q15, 13.2MM for 1Q16 and 10.2MM for 2Q16

Tangible Book Value per share

Capital Actions

Avg. Diluted Shares Outstanding (MM)

Common Equity Tier 1 Ratio

(Basel III)

CET1 stable at 9.8%

Executed $240MM accelerated share repurchase

(ASR) transaction on March 1, 2016

—

March 1 –

retired 12.6MM shares

—

April 11 –

retired an additional 1.9MM

shares due to ASR completion

January 14 –

retired 1.8MM shares due to

completion of December 9, 2015 ASR

Sequential growth in TBV per share driven

primarily by an increase in AOCI

9.5%

9.4%

9.8%

10%

1Q15

2Q15

3Q15

4Q15

1Q16

$14.85

$14.62

$15.18

$15.39

$16.32

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

$16.00

$17.00

1Q15

2Q15

3Q15

4Q15

1Q16

819

813

805

794

778

750

760

770

780

790

800

810

820

830

1Q15

2Q15

3Q15

4Q15

1Q16

Appendix

$497

$578

$553

$571

$510

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

1Q15

2Q15

3Q15

4Q15

1Q16

Adjusted PPNR

Reported PPNR

Pre-tax pre-provision earnings

PPNR trend

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

Prior quarters include similar adjustments.

PPNR decreased 47% sequentially, reflecting :

–

$469MM net benefit in 4Q15 primarily

related to Vantiv

gains

Adjusted PPNR down 11% sequentially

–

Primarily due to the $31MM annual Vantiv

tax receivable payment recorded in 4Q15

PPNR reconciliation

Efficiency ratio

65.4%

62.3%

58.2%

48.0%

63.8%

64.9%

61.9%

62.7%

62.2%

1Q15

2Q15

3Q15

4Q15

1Q16

Efficiency Ratio

Adjusted Efficiency Ratio

65.3%

($ in millions)

1Q15

2Q15

3Q15

4Q15

1Q16

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

$485

$417

$515

$949

$436

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

156

119

PPNR (a) + (b)

$554

$496

$671

$1,040

$554

Adjustments to remove (benefit) / detriment²:

In noninterest income:

Gain

sale

Vantiv

(331)

Gain on Vantiv warrant actions

(89)

Vantiv TRA settlement payment

(49)

Vantiv warrant valuation

(70)

(14)

(130)

(21)

(47)

Gain on sale of certain branches

(8)

Branch and land valuation adjustments

Gain from sales of troubled debt restructurings

(37)

Impairment associated with aircraft leases

Valuation of 2009 Visa total return swap

(1)

Securities (gains) / losses

(4)

(1)

(3)

noninterest

expense:

Contribution to Fifth Third Foundation

Severance expense

Litigation reserve charges

(1)

(5)

Executive Retirements

Adjusted PPNR

$497

$578

$553

$571

$510

Available and contingent borrowing capacity (1Q16):

–

FHLB ~$10.6B available, ~$14.2B total

–

Federal Reserve ~$23.5B

Holding company unsecured debt maturities ($MM)

Bank

unsecured

debt

maturities

($MM

–

excl.

Retail

Brokered CDs)

Heavily core funded

Strong liquidity profile

S-T

wholesale

$1B matured in 1Q16

$700MM matured in 1Q16

(Debt maturities, common and preferred dividends, interest and other expenses) without accessing capital markets; relying on dividends from subsidiaries or any other

discretionary actions

Holding Company:

Holding Company cash at 03/31/16: $2.3B

$1B maturity in January 2016, was pre-funded with the $1.1B Holding

Company issuance executed in 3Q15

Cash currently sufficient to satisfy all fixed obligations in a stressed

environment for ~26 months

Bank Entity:

Of the $2.5B maturing this year, $700MM matured in 1Q16. During the

quarter the Bank issued $1.5B of long term debt, comprised of $750MM

of senior debt and $750MM of sub debt

2016 Funding Plans:

Due to the Moody’s LGF methodology, we intend to replace all debt

maturities this calendar year ($3.7B in total) in order to maintain our

current senior debt ratings

$1.5B of the $3.7B was replaced in 1Q16

It is likely that most of this replacement funding will take place

at the Bank Entity

Demand

25%

Interest

checking

18%

Savings/

MMDA

24%

Consumer

time

Foreign

Office

Non-Core

Deposits

S-T

borrowings

Other

liabilities

Equity

12%

L-T debt

11%

$2,100

$650

$1,850

$1,600

$1,000

$2,000

$3,000

2016

2017

2018

2019

2020

2021 On

Fifth Third Bank

$250

$500

$1,100

$2,312

$500

$1,000

$1,500

$2,000

$2,500

2016

2017

2018

2019

2020

2021 on

Fifth Third Bancorp

Fifth Third Capital Trust (Bancorp)

Fifth Third Bank

42%

39%

19%

Bancorp Investment Portfolio (BV)

Level 1

Level 2A

Non-HQLA

22%

30%

40%

EOP Consumer Loans

Home Equity

Auto

Other

Credit Card

Resi Mortgage & Construction

75%

12%

EOP Commercial Loans

Commercial & Industrial

Commercial Mortgage

Commercial Construction

Commercial Lease

Portfolio Compositions

Commercial:

Fixed:

$10.2B

Float:

$47.5B

•

1M Libor based: 68%

•

3M Libor based: 8%

•

Prime based: 5%

Weighted Avg. Life: 1.86 years

74% Float /

26% Fix

96% Float /

4% Fix

0% Float /

100% Fix

90% Float /

10% Fix

71% Float /

29% Fix

25% Float /

75% Fix

91% Float /

9% Fix

1% Float /

99% Fix

100% Float /

0% Fix

Investments:

52% allocation to bullet/locked-out

cash flow securities

Investment portfolio yield: 3.14%

Duration: 4.8 years

Net unrealized pre-tax gain: $1B

Portfolio Characteristics

0% Float /

100% Fix

0% Float /

100% Fix

17% Float /

83% Fix

Consumer:

Fixed:

$23.3B

Float:

$13.4B

•

Prime based: 25%

Weighted Avg. Life: 3.48 years

Avg. duration of Auto book: 1.33 years

Includes

HFS

Loans

Leases

Interest Rate Risk Management

Actual

results

may

vary

from

these

simulated

results

due

differences

between

forecasted

and

actual

balance

sheet

composition,

timing,

magnitude,

and

frequency

interest

rate

changes, as well as other changes in market conditions and management strategies.

Re-pricing percentage or “beta” is the estimated change in yield over 12 months as a result of a shock or ramp 100 bps parallel shift in the yield curve

Well-positioned for rising rates

•

NII benefits from asset re-pricings in a rising rate environment

–

64% of total loans are floating rate (82% of commercial and 36% of consumer)

–

Investment portfolio duration less than 5 years

–

Short-term wholesale funding represents approximately 4% of total funding

–

Approximately $11B in non-core funding matures beyond one year

•

Interest rate sensitivity tables are based on conservative deposit assumptions

–

70%

beta

all

interest-bearing

deposit

and

sweep

balances

(~50%

betas

experienced

2004

–

2006

Fed

tightening

cycle)

–

No modeled re-pricing lag

–

Modeled non-interest bearing commercial DDA runoff of approximately $2.5B (about 10%) for each 100 bps increase in

rates

–

DDA runoff rolls into an interest bearing product with a 100% beta

Change in Interest Rates (bps)

+200

bps Shock

Change in Interest Rates

+100

bps Shock

+200

bps Ramp

2.12%

6.98%

(4.00%)

+25 bps Shock

+100

bps Ramp

1.20%

4.27%

-25 bps Shock

-50 bps Ramp

(2.00%)

(2.67%)

Betas 25% Higher

Betas 25% Lower

Change in Interest Rates

Months

13 to 24 Months

Months

Change in Interest Rates

Months

13 to 24

Months

13 to 24

Months

+200

bps Ramp

1.84%

6.43%

2.40%

+200

bps Ramp

(1.11%)

0.52%

5.35%

13.44%

+100

bps Ramp

1.06%

3.99%

1.34%

+100

bps Ramp

(0.41%)

1.04%

2.82%

7.50%

ESTIMATED NII SENSITIVITY PROFILE

ESTIMATED EVE SENSITIVITY PROFILE

Percent Change in

NII (FTE)

ALCO Policy Limits

Change in EVE

ALCO Policy Limit

Months

13 to 24 Months

Months

13 to 24 Months

(12.00%)

(0.90%)

(6.00%)

(0.10%)

(0.06%)

(2.85%)

ESTIMATED NII SENSITIVITY with DEPOSIT BETA CHANGES

Percent Change in NII (FTE)

$1B Balance Decrease

$1B Balance Increase

13 to 24 Months

7.54%

4.54%

ESTIMATED NII SENSITIVITY with DEMAND DEPOSIT BALANCE CHANGES

NPL rollforward

NPL HFI Rollforward

Commercial

1Q15

2Q15

3Q15

4Q15

1Q16

367

325

287

286

341

Transfers to nonperforming

195

165

306

Transfers to performing

(1)

(3)

(2)

(3)

Transfers from held for sale

Transfers to held for sale

(12)

(3)

Loans sold from portfolio

(5)

(3)

(1)

(2)

(6)

Loan paydowns/payoffs

(62)

(44)

(46)

(37)

(39)

Transfers to OREO

(9)

(10)

(13)

(1)

Charge-offs

(45)

(49)

(149)

(46)

(60)

Draws/other extensions of credit

325

287

286

341

543

Consumer

1Q15

2Q15

3Q15

4Q15

1Q16

212

201

188

172

165

Transfers to nonperforming

Transfers to performing

(23)

(26)

(30)

(28)

(33)

Transfers from held for sale

Transfers to held for sale

(1)

Loans sold from portfolio

Loan paydowns/payoffs

(8)

(14)

(11)

(10)

(9)

Transfers to OREO

(17)

(10)

(11)

(9)

(6)

Charge-offs

(22)

(18)

(16)

(14)

Draws/other extensions of credit

201

188

172

165

158

Total NPL

526

475

458

506

701

Total new nonaccrual loans -

HFI

134

121

250

221

361

Beginning NPL amount

Ending Commercial NPL

Beginning NPL amount

Ending Consumer NPL

Credit Trends

Residential Mortgage

Commercial & Industrial

Home Equity & Automobile

Commercial Real Estate

* Excludes loans held-for-sale.

($ in millions)

1Q15

2Q15

3Q15

4Q15

1Q16

EOP Balance*

$42,052

$42,800

$42,948

$42,131

$43,433

Avg Loans*

$41,426

$42,550

$43,149

$43,154

$43,089

90+ days delinquent

as % of loans

0.01%

0.02%

0.01%

NPAs*

$216

$193

$183

$272

$472

as % of loans

0.58%

0.45%

0.43%

0.65%

1.09%

Net charge-offs

$38

$34

$128

$30

$46

as % of loans

0.38%

0.32%

1.17%

0.28%

0.43%

C&I

($ in millions)

1Q15

2Q15

3Q15

4Q15

1Q16

EOP Balance*

$7,209

$7,150

$7,061

$6,957

$6,864

Avg Loans*

$7,241

$7,148

$7,023

$7,032

$6,886

NPAs*

$186

$166

$165

$138

$126

as % of loans

2.56%

2.31%

2.34%

1.98%

1.84%

Net charge-offs

$11

as % of loans

0.05%

0.62%

0.66%

0.19%

0.35%

Commercial mortgage

($ in millions)

1Q15

2Q15

3Q15

4Q15

1Q16

EOP Balance*

$2,302

$2,709

$3,101

$3,214

$3,428

Avg Loans*

$2,197

$2,549

$2,965

$3,141

$3,297

NPAs*

$16

$14

$19

as % of loans

0.67%

0.51%

0.61%

0.25%

0.23%

Net charge-offs

as % of loans

(0.06%)

0.00%

0.43%

0.00%

(0.06%)

Commercial construction

($ in millions)

1Q15

2Q15

3Q15

4Q15

1Q16

EOP Balance*

$12,569

$12,933

$13,392

$13,716

$13,895

Avg Loans*

$12,433

$12,831

$13,144

$13,504

$13,788

90+ days delinquent

$48

$43

$40

$44

as % of loans

0.38%

0.33%

0.30%

0.29%

0.32%

NPAs*

$113

$101

$91

$86

$77

as % of loans

0.91%

0.78%

0.68%

0.63%

0.55%

Net charge-offs

as % of loans

0.19%

0.16%

0.10%

0.08%

0.07%

Residential mortgage

($ in millions)

1Q15

2Q15

3Q15

4Q15

1Q16

EOP Balance*

$8,714

$8,547

$8,427

$8,301

$8,112

90+ days delinquent

as % of loans

Net charge-offs

$14

as % of loans

0.61%

0.41%

0.42%

0.39%

0.36%

Home equity

($ in millions)

1Q15

2Q15

3Q15

4Q15

1Q16

EOP Balance*

$11,873

$11,909

$11,826

$11,493

$11,128

90+ days delinquent

$10

as % of loans

0.06%

0.07%

0.09%

0.07%

Net charge-offs

as % of loans

0.28%

0.14%

0.23%

0.31%

0.32%

Automobile

Regulation G Non-GAAP reconciliation

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconciliation

$ and shares in millions

(unaudited)

March

December

September

June

March

2016

2015

Income before income taxes (U.S. GAAP)

435

949

515

417

485

Add:

Provision expense (U.S. GAAP)

119

156

Pre-provision net revenue

554

1,040

671

496

554

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

312

634

366

292

346

Add:

Intangible amortization, net of tax

Tangible net income available to common shareholders

312

634

366

292

346

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

1,255

2,515

1,452

1,171

1,403

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

16,376

15,982

15,815

15,841

15,820

Less:

Average preferred stock

(1,331)

Average goodwill

(2,416)

Average intangible assets and other servicing rights

(12)

(13)

(14)

(15)

Average tangible common equity (b)

12,617

12,222

12,054

12,079

12,058

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

16,323

15,839

15,826

15,605

15,864

Less:

Preferred stock

(1,331)

Goodwill

(2,416)

Intangible assets and other servicing rights

(12)

(13)

(14)

(15)

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

12,564

12,079

12,066

11,844

12,102

Less: Accumulated other comprehensive income

(684)

(197)

(522)

(291)

(588)

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

11,880

11,882

11,544

11,553

11,514

Total assets (U.S. GAAP)

142,430

141,048

141,883

141,628

140,437

Less:

Goodwill

(2,416)

Intangible assets and other servicing rights

(12)

(13)

(14)

(15)

Tangible assets, including unrealized gains / losses (e)

140,002

138,619

139,454

139,198

138,006

Less: Accumulated other comprehensive income / loss, before tax

(1,052)

(303)

(803)

(448)

(905)

Tangible assets, excluding unrealized gains / losses (f)

138,950

138,316

138,651

138,750

137,101

Common shares outstanding (g)

770

785

795

810

815

Ratios:

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

9.9%

20.6%

12.0%

9.7%

11.7%

Tangible common equity (excluding unrealized gains/losses) (d) / (f)

8.55%

8.59%

8.33%

8.40%

Tangible common equity (including unrealized gains/losses) (c) / (e)

8.97%

8.71%

8.65%

8.51%

8.77%

Tangible book value per share (c) / (g)

$16.32

$15.39

$15.18

$14.62

$14.85

For the Three Months Ended

Regulation G Non-GAAP reconciliation

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconciliation

$ and shares in millions

(unaudited)

March

December

September

June

March

2016

2015

Basel III Final Rule - Transitional to fully phased-in

CET 1 capital (transitional)

$11,914

$11,917

$11,574

$11,582

$11,543

Less: Adjustments to CET 1 capital from transitional to fully phased-in

(3)

(5)

(8)

(11)

(12)

(13)

CET 1 capital (fully phased-in) (c)

11,909

11,563

11,570

11,530

Risk-weighted assets (transitional)

121,432

121,290

123,148

122,986

121,310

Add: Adjustments to risk-weighted assets from transitional to fully phased-in

(4)

1,027

1,178

1,136

1,280

1,182

Risk-weighted assets (fully phased-in) (d)

$122,459

$122,468

$124,284

$124,266

$122,492

Estimated CET 1 capital ratio under Basel III Final Rule (fully phased-in) (c) / (d)

9.72%

9.30%

9.31%

9.41%

(1)

Primarily relates to disallowed intangible assets (other than goodwill and MSRs, net of associated deferred tax liabilities).

(2)

Primarily relates to higher risk-weighting for MSRs.

March

December

September

June

March

2016

2015

Non-interest income excluding certain items

Non-interest income (U.S. GAAP)

$637

$1,104

$713

$556

$630

Gain on sale of Vantiv shares

(331)

Gain on Vantiv warrant actions

(89)

Vantiv TRA settlement payment

(49)

Vantiv warrant valuation

(47)

(21)

(130)

(14)

(70)

Gain on sale of certain branches

(8)

Branch and land valuation adjustments

Gain from sales of troubled debt restructurings

(37)

Impairment associated with aircraft leases

Valuation of 2009 Visa total return swap

(1)

Securities (gains) / losses

(3)

(1)

(4)

Adjusted non-interest income

$578

$623

$591

$637

$566

Non-interest expense excluding certain items

Non-interest expense (U.S. GAAP)

$986

$963

$943

$947

$923

Contribution for Fifth Third Foundation

(10)

(4)

Severance expense

(15)

(2)

(3)

(2)

(1)

Litigation reserve changes

(2)

Executive retirements

(6)

Adjusted non-interest expense

$971

$951

$939

$946

$916

For the Three Months Ended

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