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

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8-K - FORM 8-K - FIFTH THIRD BANCORP	d353259d8k.htm

Annual Meeting of Shareholders

April 18, 2017

Please refer to earnings release dated January 24, 2017 and 10-K dated

February 25, 2017 for further information about our performance in 2016,

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

Exhibit 99.1

This presentation 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

the use of forward-looking language such as “will

likely result,” “may,” “are expected to,” “anticipates,” “potential,” “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 as updated from time to time by our Quarterly Reports on Form 10-Q. 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 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 or real estate market conditions, either nationally or in the states in which Fifth Third, one or more

acquired entities and/or the combined company do business, weaken or 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) changes in customer preferences or information technology systems; (12) effects of critical accounting

policies and judgments; (13) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (FASB) or other regulatory

agencies; (14) 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; (15) ability to maintain favorable ratings from rating agencies; (16) failure of models or risk management systems or controls; (17) fluctuation of Fifth Third’s

stock price; (18) ability to attract and retain key personnel; (19) ability to receive dividends from its subsidiaries; (20) potentially dilutive effect of future acquisitions on current

shareholders’ ownership of Fifth Third; (21) declines in the value of Fifth Third’s goodwill or other intangible assets; (22)

effects of accounting or financial results of one or more

acquired entities; (23) difficulties from Fifth Third’s investment in, relationship with, and nature of the operations of Vantiv

Holding, LLC; (24) loss of income from any sale or

potential sale of businesses (25) difficulties in separating the operations of any branches or other assets divested; (26) losses or adverse impacts on the carrying values of

branches and long-lived assets in connection with their sales or anticipated sales; (27) inability to achieve expected benefits from branch consolidations and planned sales

within desired timeframes, if at all; (28) ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications

networks; and (29) 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.

In this presentation, we may sometimes provide non-GAAP financial information. Please note that although non-GAAP financial measures provide useful insight to analysts,

investors and regulators, they should not be considered in isolation or relied upon as a substitute for analysis using GAAP measures. We provide GAAP reconciliations for non-

GAAP measures in a later slide in this presentation as well as in our earnings release, both of which are available in the investor relations section of our website, www.53.com.

Management has provided forward-looking guidance on certain non-GAAP measures in connection with this presentation in order to facilitate comparability with the Bancorp’s

historical performance and financial condition as reflected in these non-GAAP measures. Such forward-looking non-GAAP measures include return on tangible common equity.

Bancorp’s management does not estimate on a forward-looking basis the impact of items similar to those that it has excluded to generate these non-GAAP measures on a

historical basis because the occurrence and amounts of items such as these are difficult to predict. As a result, the Bancorp

has not provided reconciliations of its forward-

looking non-GAAP measures.

Cautionary statement

•

Strong earnings growth with continued contribution from Vantiv gains

•

Track record of increasing tangible book value over time

•

Maintained a disciplined approach and continued to focus on areas that met our

desired risk and return requirements

2016 performance at a glance

Diluted earnings per share

$1.66

$2.02

$1.66

$2.01

$1.93

Includes gains on sale of warrant, gains on IPO, gains on share sales, and warrant and put options; excluding recurring revenue from ownership interest and annual TRA payment received

Non-GAAP measure: see Regulation G Non-GAAP Reconciliation on page 12 and the Use of Non-GAAP Financial Measures on pages 32 and 33 of the 4Q16 Earnings Release

1,2

$1.43

$1.63

$1.54

$1.44

$1.63

$0.23

$0.39

$0.12

$0.57

$0.30

2012

2013

2014

2015

2016

EPS ex. Vantiv gains

Vantiv gains

$12.33

$13.00

$14.40

$15.39

$16.60

2012

2013

2014

2015

2016

Tangible book value per share

Strong capital return to shareholders while

increasing capital levels

2016 total payout yield (regional peers)

Increased common stock dividend approximately 8% and continued active share

repurchase program

Source: SNL Financial. Total payout yield equals dividend yield plus shares repurchased ($) / reported market cap at 12/31/16. Repurchases shown include repurchases related to employee

compensation issuances given peer comparisons

•

~$1.1 billion in capital returned to common shareholders

–

$661MM common stock repurchases

–

$405MM common dividends declared

PNC

FITB

USB

STI

MTB

CMA

BBT

CFG

KEY

HBAN

ZION

Dividend Yield

Buyback Yield

Performance track-record

2016 Total Shareholder Return

Source: Bloomberg, cumulative total return net dividends as of 12/31/2017

Fifth Third (FITB) vs. KBW Bank Index and S&P 500 Bank Industry Index

KBW

28.5%

FITB

37.8%

FITB shares have outperformed since the announcement of Project NorthStar

S&P

Banks

24.3%

40%

30%

20%

-10%

10%

20%

30%

40%

50%

1/3/2016

2/11/2016

3/23/2016

5/3/2016

6/13/2016

7/22/2016

8/31/2016

10/11/2016

11/18/2016

12/30/2016

3/31/2017

3/31/2016

3/31/2015

3/31/2014

3/31/2013

3/31/2012

The

economic

backdrop

remains

uncertain

•

The

unemployment

rate

remains

low

but

other

economic

indicators

are

mixed

–

are

benefiting

from

higher

interest

rates

–

The

Fed

has

indicated

the

need

possibly

accelerate

tightening

•

The

government

expected

take

steps

that

should

positive

for

banks

–

Overall:

Potential

reductions

corporate

tax

rates

and

other

fiscal

stimulus

–

Banking:

Fiduciary

rule,

CFPB,

regulatory

relief

•

The

timing

and

magnitude

these

changes

remains

uncertain

Sources:

Employment

data

–

Bureau

Labor

Statistics

04/07/2017

(underemployment

–

U-6);

GDP

Bureau

Economic

Analysis

03/30/2017

8.9%

15.2%

8.3%

4.5%

Overall

strong

employment

numbers

Real

GDP

still

below

pre-crisis

average

1.70%

2.40%

2.60%

1.60%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2012

2013

2014

2015

2016

GDP

Pre-crisis average

(2003-2007)

Unemployment

Underemployment

2.20%

Our strong balance sheet has allowed us to

capitalize on opportunities

•

Strong capital ratios

•

Balanced interest rate risk profile well-positioned to benefit from rising rate environment

•

Vantiv ownership with sizeable unrecognized value

•

Continued to reduce auto exposure

•

Criticized asset ratio lowest since Q3 2007; commercial NCOs lowest in 15 years

•

Growing loans that meet return hurdles while maintaining credit discipline

Source: SNL Financial; regulatory filings as of 4Q16

Also have additional upside potential from

unrecognized Vantiv ownership

Healthy capital ratios while still deploying

capital to shareholders

Our criticized assets and NCOs have continued

to decline

0.85

0.58

0.64

0.48

0.39

10%

12%

2012

2013

2014

2015

2016

Net charge-offs (bps)

Criticized assets as a percentage of total commercial loans

10%

12%

14%

ZION

PNC

BBT

MTB

FITB

CFG

CMA

USB

KEY

HBAN

STI

Common Equity Tier 1 Ratio

Tier 1 Ratio

•

Generating

positive

operating

leverage

top

priority

2017

•

NorthStar

long-term

financial

targets:

–

ROTCE

12%

14%

–

ROA:

1.1%

1.3%

–

Efficiency

ratio:

60%

•

plan

achieve

our

profitability

targets

regardless

the

interest

rate

environment

•

took

number

actions

2016

improve

profitability

We are committed to improved profitability

•

Black

Knight

mortgage

loan

operating

system

•

Branch

closures

and

consolidations

•

Omni-channel

strategies

•

Launch

new

credit

card

products

•

Contract

renegotiations

•

Non-branch

rationalization

and

workspace

management

•

Re-design

commercial

client

experience

•

Exited

$3.5

billion

commercial

loans

that

did

not

meet

our

desired

risk

return

profile

Forward-looking Non-GAAP measure: See cautionary statement on slide 2 of the presentation and page 32 of the 4Q16 earnings release for use of certain forward-looking non-GAAP measures

NorthStar

strategies

implemented

initiated

2016

While we are investing in our businesses, we are

also investing in our communities

$30

Billion

NCRC and Fifth Third

signed

revised community plan through

2020

Increased from $27.5 billion at the

beginning of 2016

$30 billion in Lending & Tax Credit Investments

•

$11 billion in mortgage credit access

•

$10 billion in small business

•

$9 billion in community development lending

and investments

$158 million in Fifth Third Impact Initiatives,

including:

•

$93.1 million in philanthropic donations

•

$23 million for 10 new branches in LMIT

and/or HMT communities

•

$20 million in housing-related investments

Recent accolades

Employees

Customers

Fifth Third priorities

Targeting

growth in

strategic

areas

Committed

higher

profitability

and

attractive

returns

relative

peer

group

Well-positioned to achieve long-term targets

Regulation G non-GAAP reconciliation

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconciliation

$ and shares in millions

(unaudited)

2016

2015

2014

2013

2012

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

$16,205

$15,839

$15,626

$14,589

$13,716

Less:

Preferred stock

(1,331)

(1,034)

(398)

Goodwill

(2,416)

Intangible assets and other servicing rights

(10)

(13)

(16)

(19)

(27)

Tangible common equity (a)

$12,448

$12,079

$11,863

$11,120

$10,875

Common shares outstanding (b)

750

785

824

855

882

Tangible book value per share (a) / (b)

$16.60

$15.39

$14.40

$13.00

$12.33

Vantiv-related gains

Add:

Warrant and put options

$64

$236

$30

$207

$67

Gain on IPO

115

Gain on share sales

331

125

327

157

Gain on sale of warrant

Vantiv

TRA settlement gains

280

Pre-tax Vantiv-related gains

$353

$705

$155

$534

$339

Less:

Impact of assumed 35% rate on gains

124

247

187

119

After-tax Vantiv-related gains (c)

$229

$458

$101

$347

$220

Avg. Diluted common shares outstanding (d)

764

808

843

895

946

Diluted EPS (U.S. GAAP)

$1.93

$2.01

$1.66

$2.02

$1.66

Less:

EPS impact of Vantiv-related gains (c) / (d)

$0.30

$0.57

$0.12

$0.39

$0.23

Diluted EPS ex. Vantiv gains (e) -

[(c) / (d)]

$1.63

$1.44

$1.54

$1.63

$1.43

For the Year Ended

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