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

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Exhibit 99.1

LOGO


CONTACTS:	Sameer Gokhale (Investors)	News Release
	(513) 534-2219
	Larry Magnesen (Media)	FOR IMMEDIATE RELEASE
	(513) 534-8055	April 25, 2017

FIFTH THIRD ANNOUNCES FIRST QUARTER 2017 NET INCOME TO COMMON SHAREHOLDERS OF $290 MILLION, OR $0.38 PER DILUTED SHARE

•

1Q17 net income available to common shareholders of $290 million, or $0.38 per diluted common share

•

Results included the following items which had a net neutral impact on reported 1Q17 earnings per share:

•

A $13 million pre-tax (~$8 million after-tax)^(a) charge related to the valuation of the Visa total return swap

•

A $12 million pre-tax (~$8 million after-tax)^(a) benefit related to the revision to the 4Q16 estimated charge to net interest income for refunds to certain bankcard customers

•

Reported net interest income of $933 million; taxable equivalent net interest income of $939 million^(b), up 3% from both 4Q16 and 1Q16; excluding the 4Q16 and 1Q17 card remediation impacts, flat from 4Q16 and up 2% from 1Q16^(b)

•

Taxable equivalent net interest margin of 3.02%^(b), up 16 bps from 4Q16 and up 11 bps from 1Q16; adjusted net interest margin, excluding the 4Q16 and 1Q17 card remediation impact, of 2.98%^(b), up 7 bps both from 4Q16 and 1Q16

•

Average portfolio loans and leases of $92.1 billion, down 1% from 4Q16 and down 1% from 1Q16

•

Noninterest income of $523 million compared with $620 million in 4Q16 and $637 million in 1Q16; sequential decline primarily driven by the $33 million annual payment recognized from Vantiv pursuant to the tax receivable agreement in the prior quarter and other items mentioned on page 9

•

Noninterest expense of $986 million, up 3% from 4Q16 and flat from 1Q16; sequential increase primarily driven by seasonally higher compensation-related expenses and $18 million in long-term incentive expense that would have otherwise been recognized in the second quarter without a change in the grant date

•

Net charge-offs (NCOs) of $89 million, up $16 million from 4Q16 and down $7 million from 1Q16; NCO ratio of 0.40% compared to 0.31% in 4Q16 and 0.42% in 1Q16

•

Portfolio nonperforming asset (NPA) ratio of 0.79% down 1 bp from 4Q16 and down 9 bps from 1Q16

•

1Q17 provision expense of $74 million compared to $54 million in 4Q16 and $119 million in 1Q16

•

Common equity Tier 1 (CET1)^(c) ratio of 10.76%; fully phased-in CET1 ratio^(b)(c) of 10.66%

•

Tangible common equity ratio of 9.20%^(b); 9.15% excluding unrealized gains/losses^(b)

•

Book value per share of $20.13 up 2% from 4Q16 and up 3% from 1Q16; tangible book value per share^(b) of $16.89 up 2% from 4Q16 and up 3% from 1Q16

Fifth Third Bancorp (Nasdaq: FITB) today reported first quarter 2017 net income of $305 million versus net income of $395 million in the fourth quarter of 2016 and $326 million in the first quarter of 2016. After preferred dividends, net income available to common shareholders was $290 million, or $0.38 per diluted share, in the first quarter of 2017, compared with $372 million, or $0.49 per diluted share, in the fourth quarter of 2016, and $311 million, or $0.40 per diluted share, in the first quarter of 2016.

First quarter 2017 included:

Income

•

$12 million benefit related to the revision to the 4Q16 estimated charge to net interest income for refunds to certain bankcard customers

•

($13 million) charge related to the valuation of the Visa total return swap

Fourth quarter 2016 included:

Income

•

$9 million gain on the Vantiv warrant net exercise and share sale

•

$6 million benefit related to the valuation of the Visa total return swap

•

($16 million) reduction to net interest income for estimated refunds to be offered to certain bankcard customers

Expenses

•

($5 million) contribution to Fifth Third Foundation

Results also included a $6 million tax benefit from the early adoption of an accounting standard, and a $33 million annual payment recognized from Vantiv pursuant to the tax receivable agreement, which was recorded in other noninterest income.

First quarter 2016 included:

Income

•

$47 million positive valuation adjustment on the remaining Vantiv warrant

•

$8 million gain on sale of certain St. Louis branches as part of the previously announced branch consolidation and sales plan

•

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

Expenses

•

($15 million) in severance expense, primarily consisting of $14 million related to the voluntary early retirement program

Earnings Highlights


	For the Three Months Ended										% Change
	March		December		September		June		March
	2017		2016		2016^(d)		2016^(d)		2016^(d)		Seq		Yr/Yr
Earnings ($ in millions)
Net income attributable to Bancorp	$	305	$	395	$	516	$	328	$	326		(23%)		(6%)
Net income available to common shareholders	$	290	$	372	$	501	$	305	$	311		(22%)		(7%)

Common Share Data
Earnings per share, basic	$	0.38	$	0.49	$	0.66	$	0.40	$	0.40		(22%)		(5%)
Earnings per share, diluted		0.38		0.49		0.65		0.39		0.40		(22%)		(5%)
Cash dividends per common share		0.14		0.14		0.13		0.13		0.13		—		8%

Common shares outstanding (in thousands)		750,145		750,479		755,582		766,346		770,471		—		(3%)
Average common shares outstanding (in thousands):
Basic		747,668		746,367		750,886		759,105		773,564		—		(3%)
Diluted		760,809		757,704		757,856		764,811		777,758		—		(2%)

Financial Ratios												bps Change

Return on average assets		0.88%		1.11%		1.44%		0.92%		0.93%		(23)		(5)
Return on average common equity		7.8		9.7		12.8		8.0		8.3		(190)		(50)
Return on average tangible common equity^(b)		9.3		11.6		15.2		9.6		9.9		(230)		(60)
CET1 capital^(c)		10.76		10.39		10.17		9.94		9.81		37		95
Tier I risk-based capital^(c)		11.90		11.50		11.27		11.03		10.91		40		99
CET1 capital (fully-phased in)^(b)(c)		10.66		10.29		10.09		9.86		9.72		37		94
Net interest margin (taxable equivalent)^(b)		3.02		2.86		2.88		2.88		2.91		16		11
Efficiency (taxable equivalent)^(b)		67.4		62.8		55.5		65.3		63.8		460		360

“During the first quarter we continued to make progress towards our long term performance goals under North Star,” said Greg D. Carmichael, President and CEO of Fifth Third Bancorp.

“Our net interest margin continued to improve as our balance sheet positioning allowed us to benefit from increased short term market rates. The growth in our net interest income and our focus on expense management are indicative of our ability to achieve positive operating leverage. Credit quality metrics also continue to support a benign credit outlook for the foreseeable future.”

Income Statement Highlights


($ in millions, except per-share data)	For the Three Months Ended										% Change
	March		December		September		June		March
	2017		2016		2016^(d)		2016^(d)		2016^(d)		Seq		Yr/Yr
Condensed Statements of Income
Net interest income (taxable equivalent)^(b)	$	939	$	909	$	913	$	908	$	909		3%		3%
Provision for loan and lease losses		74		54		80		91		119		37%		(38%)
Total noninterest income		523		620		840		599		637		(16%)		(18%)
Total noninterest expense		986		960		973		983		986		3%		—

Income before income taxes (taxable equivalent)^(b)	$	402	$	515	$	700	$	433	$	441		(22%)		(9%)


Taxable equivalent adjustment		6		6		6		6		6		—		—
Applicable income tax expense		91		114		178		103		109		(20%)		(17%)

Net income	$	305	$	395	$	516	$	324	$	326		(23%)		(6%)
Less: Net income attributable to noncontrolling interests		—		—		—		(4)		—		—		—

Net income attributable to Bancorp	$	305	$	395	$	516	$	328	$	326		(23%)		(6%)
Dividends on preferred stock		15		23		15		23		15		(35%)		—

Net income available to common shareholders	$	290	$	372	$	501	$	305	$	311		(22%)		(7%)

Earnings per share, diluted	$	0.38	$	0.49	$	0.65	$	0.39	$	0.40		(22%)		(5%)

Net Interest Income


(Taxable equivalent basis; $ in millions)^(b)	For the Three Months Ended										% Change
	March		December		September		June		March
	2017		2016		2016		2016		2016		Seq		Yr/Yr
Interest Income
Total interest income	$	1,092	$	1,058	$	1,063	$	1,052	$	1,044		3%		5%
Total interest expense		153		149		150		144		135		3%		13%

Net interest income	$	939	$	909	$	913	$	908	$	909		3%		3%


Average Yield											bps Change
Yield on interest-earning assets		3.51%		3.33%		3.36%		3.34%		3.34%		18		17
Rate paid on interest-bearing liabilities		0.73%		0.70%		0.70%		0.67%		0.64%		3		9

Net interest rate spread		2.78%		2.63%		2.66%		2.67%		2.70%		15		8

Net interest margin		3.02%		2.86%		2.88%		2.88%		2.91%		16		11

Average Balances											% Change
Loans and leases, including held for sale	$	92,791	$	93,981	$	94,417	$	94,807	$	94,078		(1%)		(1%)
Total securities and other short-term investments		33,177		32,567		31,675		32,040		31,573		2%		5%
Total interest-earning assets		125,968		126,548		126,092		126,847		125,651		—		—
Total interest-bearing liabilities		84,890		84,552		85,193		86,145		85,450		—		(1%)
Bancorp shareholders’ equity^(d)		16,429		16,545		16,883		16,584		16,376		(1%)		—

Net interest income for the fourth quarter of 2016 included a $16 million estimated charge for refunds to certain bankcard customers. In the first quarter of 2017 with the completion of the analysis, this charge was revised and resulted in a $12 million reversal of the prior charge. Excluding the impact of these items, net interest income was up $2 million from the fourth quarter of 2016, reflecting higher short-term market rates and lower wholesale funding balances, partially offset by declining loan balances and a lower day count. The adjusted net interest margin was 2.98 percent, up 7 bps from the prior quarter’s adjusted net interest margin, primarily driven by higher short-term market rates and a lower day count, partially offset by lower investment yields resulting from lower net discount accretion.

Compared to the first quarter of 2016, adjusted taxable equivalent net interest income was up 2 percent, primarily driven by higher short-term market rates. The adjusted net interest margin was up 7 bps from the first quarter of 2016, driven primarily by higher short-term market rates.

Securities

Average securities and other short-term investments were $33.2 billion in the first quarter of 2017 compared to $32.6 billion in the previous quarter and $31.6 billion in the first quarter of 2016. Average balances of other short-term investments decreased by $502 million sequentially to $1.3 billion.

Loans


($ in millions)	For the Three Months Ended										% Change
	March		December		September		June		March
	2017		2016		2016		2016		2016		Seq		Yr/Yr
Average Portfolio Loans and Leases
Commercial:
Commercial and industrial loans	$	41,854	$	42,548	$	43,116	$	43,876	$	43,089		(2%)		(3%)
Commercial mortgage loans		6,941		6,957		6,888		6,831		6,886		—		1%
Commercial construction loans		3,987		3,890		3,848		3,551		3,297		2%		21%
Commercial leases		3,901		3,921		3,962		3,898		3,874		(1%)		1%

Total commercial loans and leases	$	56,683	$	57,316	$	57,814	$	58,156	$	57,146		(1%)		(1%)

Consumer:
Residential mortgage loans	$	15,200	$	14,854	$	14,455	$	14,046	$	13,788		2%		10%
Home equity		7,581		7,779		7,918		8,054		8,217		(3%)		(8%)
Automobile loans		9,786		10,162		10,508		10,887		11,283		(4%)		(13%)
Credit card		2,141		2,180		2,165		2,134		2,179		(2%)		(2%)
Other consumer loans and leases		755		673		651		654		662		12%		14%

Total consumer loans and leases	$	35,463	$	35,648	$	35,697	$	35,775	$	36,129		(1%)		(2%)

Total average portfolio loans and leases	$	92,146	$	92,964	$	93,511	$	93,931	$	93,275		(1%)		(1%)

Average loans held for sale	$	645	$	1,017	$	906	$	876	$	803		(37%)		(20%)

Average portfolio loan and lease balances decreased $818 million, or 1 percent, sequentially and decreased $1.1 billion, or 1 percent, from the first quarter of 2016. The sequential and year-over-year decrease was primarily driven by declines in automobile and commercial and industrial (C&I) loans. The decline in auto loans continues to reflect our 2016 decision to reduce lower-return auto loan originations to improve returns on shareholders’ equity. The decline in C&I loans was partially due to deliberate exits from certain C&I loans that did not meet risk-adjusted profitability targets, as well as softer loan demand. Period end portfolio loans and leases of $91.6 billion decreased $470 million, or 1 percent, sequentially and $2.0 billion, or 2 percent, from a year ago. On both a sequential and year-over-year basis, the average and period end loan decrease was primarily due to declines in C&I and automobile loans, partially offset by increases in residential mortgage and commercial construction loans.

Average commercial portfolio loan and lease balances decreased $633 million, or 1 percent, sequentially, and were down $463 million, or 1 percent, from the first quarter of 2016. Average C&I loans decreased $694 million, or 2 percent, from the prior quarter and decreased $1.2 billion, or 3 percent, from the first quarter of 2016. Average commercial real estate loans increased $81 million, or 1 percent, from the prior quarter and increased $745 million, or 7 percent, from the first quarter of 2016. Within commercial real estate, average commercial mortgage balances decreased $16 million and average commercial construction balances increased $97 million sequentially. Period end commercial line utilization of 34% was flat from the fourth quarter of 2016 and decreased 1 percent from the first quarter of 2016.

Average consumer portfolio loan and lease balances were down $185 million, or 1 percent, sequentially and decreased $666 million, or 2 percent, from the first quarter of 2016. This was primarily driven by average automobile loans which decreased 4 percent sequentially and 13 percent from a year ago. Average residential mortgage loans increased 2 percent sequentially and 10 percent from the previous year. Average home equity loans decreased 3 percent sequentially and 8 percent from the first quarter of 2016. Average credit card loans decreased 2 percent sequentially and decreased 2 percent from the first quarter of 2016.

Deposits


($ in millions)	For the Three Months Ended										% Change
	March		December		September		June		March
	2017		2016		2016		2016		2016		Seq		Yr/Yr
Average Deposits
Demand	$	35,084	$	36,412	$	35,918	$	35,912	$	35,201		(4%)		—
Interest checking		26,760		25,644		24,475		24,714		25,740		4%		4%
Savings		14,117		13,979		14,232		14,576		14,601		1%		(3%)
Money market		20,603		20,476		19,706		19,243		18,655		1%		10%
Foreign office^(e)		454		497		524		484		483		(9%)		(6%)

Total transaction deposits	$	97,018	$	97,008	$	94,855	$	94,929	$	94,680		—		2%
Other time		3,827		3,941		4,020		4,044		4,035		(3%)		(5%)

Total core deposits	$	100,845	$	100,949	$	98,875	$	98,973	$	98,715		—		2%
Certificates - $100,000 and over		2,579		2,539		2,768		2,819		2,815		2%		(8%)
Other		162		115		749		467		—		41%		NM

Total average deposits	$	103,586	$	103,603	$	102,392	$	102,259	$	101,530		—		2%

Average core deposits were flat sequentially and increased $2.1 billion, or 2 percent, from the first quarter of 2016. Average transaction deposits were also flat sequentially and increased $2.3 billion, or 2 percent, from the first quarter of 2016. Sequential performance was primarily driven by increases in commercial and consumer interest checking account balances, offset by lower commercial demand deposit account balances. The year-over-year increase was primarily driven by higher consumer money market and interest checking account balances, partially offset by lower savings account balances. Other time deposits decreased by 3 percent sequentially and 5 percent year-over-year.

Average total commercial transaction deposits of $44 billion decreased 3 percent sequentially and decreased 1 percent from the first quarter of 2016. Average total consumer transaction deposits of $53 billion increased 2 percent sequentially and increased 5 percent from the first quarter of 2016.

Wholesale Funding


($ in millions)	For the Three Months Ended										% Change
	March 2017		December 2016		September 2016		June 2016		March 2016		Seq		Yr/Yr
Average Wholesale Funding
Certificates - $100,000 and over	$	2,579	$	2,539	$	2,768	$	2,819	$	2,815		2%		(8%)
Other deposits		162		115		749		467		—		41%		NM
Federal funds purchased		639		280		446		693		608		NM		5%
Other short-term borrowings		1,893		1,908		2,171		3,754		3,564		(1%)		(47%)
Long-term debt		13,856		15,173		16,102		15,351		14,949		(9%)		(7%)

Total average wholesale funding	$	19,129	$	20,015	$	22,236	$	23,084	$	21,936		(4%)		(13%)

Average wholesale funding of $19.1 billion decreased $886 million, or 4 percent, sequentially and decreased $2.8 billion, or 13 percent, compared with the first quarter of 2016. The sequential decrease in average wholesale funding was primarily driven by a decline in long-term debt reflecting the full quarter impact of debt maturing in the previous quarter as well as debt maturing at the beginning of the current quarter. The year-over-year decline in wholesale funding was primarily driven by lower short-term borrowings and debt maturities in response to declining asset balances.

Noninterest Income


($ in millions)	For the Three Months Ended										% Change
	March 2017		December 2016		September 2016		June 2016		March 2016		Seq		Yr/Yr
Noninterest Income
Service charges on deposits	$	138	$	141	$	143	$	138	$	137		(2%)		1%
Corporate banking revenue		74		101		111		117		102		(27%)		(27%)
Mortgage banking net revenue		52		65		66		75		78		(20%)		(33%)
Wealth and asset management revenue		108		100		101		101		102		8%		6%
Card and processing revenue		74		79		79		82		79		(6%)		(6%)
Other noninterest income		77		137		336		80		136		(44%)		(43%)
Securities gains (losses), net		—		(3)		4		6		3		NM		NM

Total noninterest income	$	523	$	620	$	840	$	599	$	637		(16%)		(18%)

Noninterest income of $523 million decreased $97 million sequentially and decreased $114 million compared with prior year results. The sequential and year-over-year comparisons reflect the impacts described below.

Noninterest Income excluding certain items


($ in millions)	For the Three Months Ended						% Change
	March 2017		December 2016		March 2016		Seq		Yr/Yr
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)	$	523	$	620	$	637
Valuation of Visa total return swap		13		(6)		(1)
Gain on Vantiv warrant actions		—		(9)		—
Gain on sale of certain branches		—		—		(8)
Vantiv warrant valuation		—		—		(47)
Securities (gains) / losses		—		3		(3)

Noninterest income excluding certain items^(b)	$	536	$	608	$	578		(12%)		(7%)

Excluding the items in the table above, noninterest income of $536 million decreased $72 million, or 12 percent, from the previous quarter and decreased $42 million, or 7 percent, from the first quarter of 2016. The sequential decrease was primarily due to the $33 million annual payment recognized from Vantiv pursuant to the tax receivable agreement in the fourth quarter of 2016, and decreases in corporate banking revenue and mortgage banking net revenue, partially offset by an increase in wealth and asset management revenue. The year-over-year decrease was driven by declines in corporate banking revenue and mortgage banking net revenue.

Service charges on deposits of $138 million decreased 2 percent from the fourth quarter of 2016, and increased 1 percent compared with the first quarter of 2016. The sequential decrease was primarily driven by a seasonal decrease in retail service charges. The increase from the first quarter of 2016 was primarily due to both increases in commercial and retail service charges.

Corporate banking revenue of $74 million decreased 27 percent both sequentially and from the first quarter of 2016. The sequential and year-over-year decreases were primarily driven by a $31 million lease remarketing impairment related to an oilfield services exposure. Excluding the impact of the lease impairment, corporate banking revenue increased 4 percent compared to the fourth quarter of 2016 and increased 3 percent from the first quarter of 2016. The sequential and year-over-year performance was driven by increases in institutional sales and syndication fees, partially offset by a decrease in foreign exchange fees.

Mortgage banking net revenue was $52 million in the first quarter of 2017, down $13 million from the fourth quarter of 2016 and down $26 million from the first quarter of 2016. Originations of $1.9 billion in the current quarter decreased 29 percent sequentially and increased 10 percent from the first quarter of 2016. First quarter 2017 originations resulted in $29 million of origination fees and gains on loan sales, compared with $30 million during the previous quarter and $42 million during the first quarter of 2016. Effective January 1, 2017, the Bancorp elected to measure its MSR portfolio at fair value rather than at amortized cost. Net mortgage servicing revenue (which consists of gross mortgage servicing fees, MSR decay/amortization, net valuation adjustments on MSRs and mark-to-market adjustments on free-standing derivatives used to economically hedge the MSR portfolio) was $23 million this quarter, $35 million in the fourth quarter of 2016, and $36 million in the first quarter of 2016. Gross mortgage servicing fees were $47 million this quarter, $48 million in the fourth quarter of 2016, and $52 million in the first quarter of 2016. MSR decay/amortization was $27 million this quarter, $35 million in the fourth quarter of 2016, and $27 million in the first quarter of 2016. Net servicing asset valuation adjustments resulted in a positive $3 million impact in the first quarter of 2017, positive $23 million in the fourth quarter of 2016, and positive $11 million in the first quarter of 2016.

Wealth and asset management revenue of $108 million increased 8 percent from the fourth quarter of 2016 and increased 6 percent from the first quarter of 2016. The sequential increase was primarily driven by strong brokerage revenue and seasonally strong tax-related private client service revenue. The year-over-year increase was primarily driven by higher personal asset management and brokerage revenue.

Card and processing revenue of $74 million in the first quarter of 2017 decreased 6 percent both sequentially and from the first quarter of 2016. The sequential decrease reflected lower transaction volumes compared with seasonally strong fourth quarter volumes, while the year-over-year decrease was impacted by higher reward expense and the sale of the agent bankcard portfolio in the second quarter of last year.

Other noninterest income totaled $77 million in the first quarter of 2017, compared with $137 million in the previous quarter and $136 million in the first quarter of 2016. The reported results included the valuation of the Visa total return swap, the gain on sale of certain branches and Vantiv-related adjustments shown in the table on page 9. For the first quarter of 2017, excluding these items, other noninterest income of $90 million decreased approximately $32 million, or 26 percent, from the fourth quarter of 2016 and was up 13 percent from the first quarter of 2016. The sequential decrease was primarily due to the $33 million annual payment recognized from Vantiv pursuant to the tax receivable agreement in the fourth quarter of 2016.

Net gains on investment securities were immaterial in the first quarter of 2017, compared with a $3 million net loss in the previous quarter and a $3 million net gain in the first quarter of 2016.

Noninterest Expense


($ in millions)	For the Three Months Ended										% Change
	March 2017		December 2016		September 2016		June 2016		March 2016		Seq		Yr/Yr
Noninterest Expense
Salaries, wages and incentives	$	411	$	403	$	400	$	407	$	403		2%		2%
Employee benefits		111		76		78		85		100		46%		11%
Net occupancy expense		78		73		73		75		77		7%		1%
Technology and communications		58		56		62		60		56		4%		4%
Equipment expense		28		29		29		30		30		(3%)		(7%)
Card and processing expense		30		31		30		37		35		(3%)		(14%)
Other noninterest expense		270		292		301		289		285		(8%)		(5%)

Total noninterest expense	$	986	$	960	$	973	$	983	$	986		3%		—

Noninterest expense of $986 million increased $26 million, or 3 percent, compared with the fourth quarter of 2016 and was flat compared with the first quarter of 2016. The sequential increase primarily reflected seasonally higher compensation-related expenses driven by FICA and other employee benefits expense as well as long-term incentive expense, partially offset by declines in loan and lease expense, losses and adjustments, and other noninterest expense. The year-over-year performance was impacted by lower losses and adjustments, other noninterest expense, and lower card and processing expense, predominantly due to contract renegotiations, partially offset by the impact of $18 million in long-term incentive expense that would have otherwise been recognized in the second quarter without a change in the grant date.

Credit Quality


($ in millions)	For the Three Months Ended
	March 2017		December 2016		September 2016		June 2016		March 2016
Total net losses charged-off
Commercial and industrial loans	($	36)	($	25)	($	61)	($	39)	($	46)
Commercial mortgage loans		(5)		(2)		(2)		(6)		(6)
Commercial construction loans		—		—		—		—		—
Commercial leases		(1)		(1)		—		(1)		(2)
Residential mortgage loans		(5)		(2)		(2)		(2)		(2)
Home equity		(6)		(6)		(7)		(6)		(8)
Automobile loans		(11)		(11)		(9)		(8)		(9)
Credit card		(22)		(19)		(20)		(21)		(20)
Other consumer loans and leases		(3)		(7)		(6)		(4)		(3)

Total net losses charged-off	($	89)	($	73)	($	107)	($	87)	($	96)

Total losses charged-off	($	107)	($	97)	($	137)	($	105)	($	116)
Total recoveries of losses previously charged-off		18		24		30		18		20

Total net losses charged-off	($	89)	($	73)	($	107)	($	87)	($	96)
Ratios (annualized)
Net losses charged-off as a percent of average portfolio loans and leases (excluding held for sale)		0.40%		0.31%		0.45%		0.37%		0.42%
Commercial		0.29%		0.20%		0.43%		0.32%		0.38%
Consumer		0.56%		0.49%		0.49%		0.45%		0.48%

Net charge-offs were $89 million, or 40 bps of average portfolio loans and leases on an annualized basis, in the first quarter of 2017 compared with net charge-offs of $73 million, or 31 bps, in the fourth quarter of 2016 and $96 million, or 42 bps, in the first quarter of 2016.

Commercial net charge-offs of $42 million, or 29 bps, were up $14 million sequentially. The increase was primarily due to higher charge-offs of C&I loans, which increased by $11 million from the fourth quarter of 2016. Commercial real estate net charge-offs were up $3 million from the previous quarter.

Consumer net charge-offs of $47 million, or 56 bps, were up $2 million sequentially. Compared with the previous quarter, net charge-offs on residential mortgage loans were up $3 million. Net charge-offs on the home equity and auto portfolios were flat from the previous quarter. Net charge-offs on credit card loans were up $3 million from the fourth quarter of 2016. Net charge-offs on other consumer loans of $3 million were down $4 million sequentially.


($ in millions)	For the Three Months Ended
	March		December		September		June		March
	2017		2016		2016		2016		2016
Allowance for Credit Losses
Allowance for loan and lease losses, beginning	$	1,253	$	1,272	$	1,299	$	1,295	$	1,272
Total net losses charged-off		(89)		(73)		(107)		(87)		(96)
Provision for loan and lease losses		74		54		80		91		119

Allowance for loan and lease losses, ending	$	1,238	$	1,253	$	1,272	$	1,299	$	1,295

Reserve for unfunded commitments, beginning	$	161	$	162	$	151	$	144	$	138
Provision for unfunded commitments		(2)		(1)		11		7		6

Reserve for unfunded commitments, ending	$	159	$	161	$	162	$	151	$	144

Components of allowance for credit losses:
Allowance for loan and lease losses	$	1,238	$	1,253	$	1,272	$	1,299	$	1,295
Reserve for unfunded commitments		159		161		162		151		144

Total allowance for credit losses	$	1,397	$	1,414	$	1,434	$	1,450	$	1,439
Allowance for loan and lease losses ratio
As a percent of portfolio loans and leases		1.35%		1.36%		1.37%		1.38%		1.38%
As a percent of nonperforming loans and leases^(f)		188%		190%		212%		188%		185%
As a percent of nonperforming assets^(f)		172%		170%		182%		161%		157%

Provision for loan and lease losses totaled $74 million in the first quarter of 2017. The allowance represented 1.35 percent of total portfolio loans and leases outstanding as of quarter end, compared with 1.36 percent last quarter, and represented 188 percent of nonperforming loans and leases, and 172 percent of nonperforming assets.

Provision for loan and lease losses increased $20 million from the fourth quarter of 2016, primarily driven by an increase in net charge-offs, and decreased $45 million from the first quarter of 2016, impacted by improving criticized assets and nonperforming loans. The allowance for loan and lease losses decreased $15 million sequentially. As of March 31, the reserve allocated to the energy portfolio was approximately 4.20%, up from approximately 4.04% last quarter.


($ in millions)	As of
	March 2017		December 2016		September 2016		June 2016		March 2016
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
Commercial and industrial loans	$	251	$	302	$	235	$	254	$	278
Commercial mortgage loans		21		27		31		39		51
Commercial construction loans		—		—		—		—		—
Commercial leases		—		2		—		4		4
Residential mortgage loans		21		17		19		27		25
Home equity		53		55		59		61		61

Total nonaccrual portfolio loans and leases (excludes restructured loans)	$	346	$	403	$	344	$	385	$	419
Nonaccrual restructured portfolio commercial loans and leases^(g)		251		192		194		242		210
Nonaccrual restructured portfolio consumer loans and leases		60		65		63		66		72

Total nonaccrual portfolio loans and leases	$	657	$	660	$	601	$	693	$	701
Repossessed property		14		15		13		15		17
OREO		50		63		84		97		107

Total nonperforming portfolio assets^(f)	$	721	$	738	$	698	$	805	$	825
Nonaccrual loans held for sale		7		4		91		20		3
Nonaccrual restructured loans held for sale		2		9		9		—		2

Total nonperforming assets	$	730	$	751	$	798	$	825	$	830


Restructured Portfolio consumer loans and leases (accrual)	$	950	$	959	$	972	$	982	$	998
Restructured Portfolio commercial loans and leases (accrual)^(g)	$	277	$	321	$	408	$	431	$	461

Total loans and leases 30-89 days past due (accrual)	$	180	$	231	$	205	$	196	$	208
Total loans and leases 90 days past due (accrual)	$	75	$	84	$	76	$	65	$	73
Nonperforming portfolio loans and leases as a percent of portfolio loans, leases and other assets, including OREO^(f)		0.72%		0.72%		0.64%		0.74%		0.75%
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO^(f)		0.79%		0.80%		0.75%		0.86%		0.88%

Total nonperforming portfolio assets decreased $17 million, or 2 percent, from the previous quarter to $721 million. Portfolio nonperforming loans (NPLs) at quarter-end decreased $3 million from the previous quarter to $657 million, or 0.72 percent of total portfolio loans, leases and OREO.

Commercial portfolio NPLs were flat from last quarter at $523 million, or 0.93 percent of commercial portfolio loans, leases and OREO. Consumer portfolio NPLs decreased $3 million from last quarter to $134 million, or 0.38 percent of consumer portfolio loans, leases and OREO.

OREO balances were down $13 million from the prior quarter to $50 million, and included $29 million in commercial OREO and $21 million in consumer OREO. Repossessed personal property decreased $1 million from the prior quarter to $14 million.

Loans over 90 days past due and still accruing decreased $9 million from the fourth quarter of 2016 to $75 million. Loans 30-89 days past due of $180 million were down $51 million from the previous quarter.

Capital and Liquidity Position


	For the Three Months Ended
	March 2017		December 2016		September 2016		June 2016		March 2016
Capital Position
Average total Bancorp shareholders’ equity to average assets		11.72%		11.66%		11.83%		11.60%		11.57%
Tangible equity^(b)		10.12%		9.82%		9.73%		9.59%		9.51%
Tangible common equity (excluding unrealized gains/losses)^(b)		9.15%		8.87%		8.78%		8.64%		8.55%
Tangible common equity (including unrealized gains/losses)^(b)		9.20%		8.91%		9.24%		9.18%		8.97%

Regulatory capital ratios:
CET1 capital^(c)		10.76%		10.39%		10.17%		9.94%		9.81%
Tier I risk-based capital^(c)		11.90%		11.50%		11.27%		11.03%		10.91%
Total risk-based capital^(c)		15.45%		15.02%		14.88%		14.66%		14.66%
Tier I leverage		10.15%		9.90%		9.80%		9.64%		9.57%

CET1 capital (fully phased-in)^(b)(c)		10.66%		10.29%		10.09%		9.86%		9.72%

Book value per share	$	20.13	$	19.82	$	20.44	$	20.09	$	19.46
Tangible book value per share^(b)	$	16.89	$	16.60	$	17.22	$	16.93	$	16.32

Modified liquidity coverage ratio (LCR)^(h)		119%		128%		115%		110%		118%

Capital ratios remained strong and grew during the quarter. The CET1 ratio was 10.76 percent, the tangible common equity to tangible assets ratio^(b) was 9.15 percent (excluding unrealized gains/losses), and 9.20 percent (including unrealized gains/losses). The Tier I risk-based capital ratio was 11.90 percent, the Total risk-based capital ratio was 15.45 percent, and the Tier I leverage ratio was 10.15 percent.

Book value per share at March 31, 2017 was $20.13 and tangible book value per share^(b) was $16.89, compared with the December 31, 2016 book value per share of $19.82 and tangible book value per share^(b) of $16.60.

On February 6, 2017, Fifth Third settled the forward contract related to the $155 million share repurchase agreement initially settled on December 20, 2016. An additional 1.1 million shares were repurchased in connection with the completion of this agreement.

Tax Rate

The effective tax rate was 22.9 percent in the first quarter of 2017 compared with 22.6 percent in the fourth quarter of 2016 and 25.1 percent in the first quarter of 2016. The tax rate in the first quarter of 2017 was impacted by an $8 million tax benefit associated with the exercise and vesting of employee equity awards. The tax rate in the fourth quarter of 2016 was impacted by a $6 million tax benefit associated with the early adoption of ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, using the modified retrospective transition method.

Other

Fifth Third Bank owns approximately 35 million units representing a 17.8 percent interest in Vantiv Holding, LLC, convertible into shares of Vantiv, Inc., a publicly traded firm. Based upon Vantiv’s closing price of $64.12 on March 31, 2017, our interest in Vantiv was valued at approximately $2.2 billion. Next month in our 10-Q, we will update our disclosure of the carrying value of our interest in Vantiv stock, which was $414 million as of December 31, 2016. 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.

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 and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Us” then “Investor Relations”).

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 after the conference call until approximately May 9, 2017 by dialing 800-585-8367 for domestic access or 404-537-3406 for international access (passcode 44811759#).

Corporate Profile

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of March 31, 2017, the Company had $140 billion in assets and operates 1,155 full-service Banking Centers, and 2,471 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third also has a 17.8% interest in Vantiv Holding, LLC. Fifth Third is among the largest money managers in the Midwest and, as of March 31, 2017, had $323 billion in assets under care, of which it managed $33 billion for individuals, corporations and not-for-profit organizations through its Trust, Brokerage and Insurance businesses. 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.”

Earnings Release End Notes

(a)

Assumes a 35% tax rate.

(b)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 31.

(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. Current period regulatory capital ratios are estimated.

(d)

Net tax deficiencies of $1 million, $5 million and $0 were reclassified from capital surplus to applicable income tax expense at March 31, 2016, June 30, 2016 and September 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016.

(e)

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

(f)

Excludes nonaccrual loans in loans held for sale.

(g)

As of March 31, 2017 and December 31, 2016, excludes $7 million of restructured accruing loans and $19 million of restructured nonaccrual loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. As of September 30, 2016, June 30, 2016 and March 31, 2016 , excludes $7 million of restructured accruing loans and $20 million of restructured nonaccrual loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party.

(h)

The Bancorp became subject to the Modified LCR regulations effective January 1, 2016. (Current period LCR is estimated)

FORWARD-LOOKING STATEMENTS

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,” 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 release, 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.

# # #

LOGO

Quarterly Financial Review for March 31, 2017

Table of Contents


Financial Highlights			18-19
Consolidated Statements of Income			20
Consolidated Statements of Income (Taxable Equivalent)			21
Consolidated Balance Sheets			22-23
Consolidated Statements of Changes in Equity			24
Average Balance Sheet and Yield Analysis			25-26
Summary of Loans and Leases			27
Regulatory Capital			28
Summary of Credit Loss Experience			29
Asset Quality			30
Regulation G Non-GAAP Reconciliation			31-32
Segment Presentation			33

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)


	For the Three Months Ended						% / bps Change
	March 2017		December 2016		March 2016^(m)		Seq		Yr/Yr
Income Statement Data
Taxable equivalent net interest income^(a)(d)	$	939	$	909	$	909		3%		3%
Noninterest income		523		620		637		(16%)		(18%)
Taxable equivalent total revenue^(a)		1,462		1,529		1,546		(4%)		(5%)
Provision for loan and lease losses		74		54		119		37%		(38%)
Noninterest expense		986		960		986		3%		—
Net income attributable to Bancorp		305		395		326		(23%)		(6%)
Net income available to common shareholders		290		372		311		(22%)		(7%)

Earnings Per Share Data
Net income allocated to common shareholders		286		368		308		(22%)		(7%)
Average common shares outstanding (in thousands):
Basic		747,668		746,367		773,564		—		(3%)
Diluted		760,809		757,704		777,758		—		(2%)
Earnings per share, basic	$	0.38	$	0.49	$	0.40		(22%)		(5%)
Earnings per share, diluted		0.38		0.49		0.40		(22%)		(5%)

Common Share Data
Cash dividends per common share		0.14		0.14		0.13		—		8%
Book value per share		20.13		19.82		19.46		2%		3%
Market price per share		25.40		26.97		16.69		(6%)		52%
Common shares outstanding (in thousands)		750,145		750,479		770,471		—		(3%)
Market capitalization	$	19,054	$	20,240	$	12,859		(6%)		48%

Financial Ratios
Return on average assets		0.88%		1.11%		0.93%		(23)		(5)
Return on average common equity		7.8%		9.7%		8.3%		(190)		(50)
Return on average tangible common equity^(b)(d)		9.3%		11.6%		9.9%		(230)		(60)
Noninterest income as a percent of total revenue		36%		41%		41%		(500)		(500)
Dividend payout ratio		36.8%		28.6%		32.5%		820		430
Average total Bancorp shareholders’ equity as a percent of average assets		11.72%		11.66%		11.57%		6		15
Tangible common equity^(c)(d)		9.15%		8.87%		8.55%		28		60
Taxable equivalent net interest margin^(a)(d)		3.02%		2.86%		2.91%		16		11
Taxable equivalent efficiency ratio^(a)(d)		67.4%		62.8%		63.8%		460		360
Effective tax rate		22.9%		22.6%		25.1%		30		(220)

Credit Quality
Net losses charged-off	$	89	$	73	$	96		22%		(7%)
Net losses charged-off as a percent of average portfolio loans and leases		0.40%		0.31%		0.42%		9		(2)
ALLL as a percent of portfolio loans and leases		1.35%		1.36%		1.38%		(1)		(3)
Allowance for credit losses as a percent of portfolio loans and leases^(k)		1.52%		1.54%		1.54%		(2)		(2)
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO^(e)		0.79%		0.80%		0.88%		(1)		(9)

Average Balances
Loans and leases, including held for sale	$	92,791	$	93,981	$	94,078		(1%)		(1%)
Total securities and other short-term investments		33,177		32,567		31,573		2%		5%
Total assets		140,140		141,837		141,582		(1%)		(1%)
Transaction deposits^(f)		97,018		97,008		94,680		—		2%
Core deposits^(g)		100,845		100,949		98,715		—		2%
Wholesale funding^(h)		19,129		20,015		21,936		(4%)		(13%)
Bancorp shareholders’ equity		16,429		16,545		16,376		(1%)		—

Capital and Liquidity Ratios⁽ⁱ⁾
CET1 capital^(j)		10.76%		10.39%		9.81%		37		95
Tier I risk-based capital^(j)		11.90%		11.50%		10.91%		40		99
Total risk-based capital^(j)		15.45%		15.02%		14.66%		43		79
Tier I leverage		10.15%		9.90%		9.57%		25		58
CET1 capital (fully phased-in)^(j)(d)		10.66%		10.29%		9.72%		37		94
Modified liquidity coverage ratio (LCR)^(l)		119%		128%		118%		(7%)		1%

Operations
Banking centers		1,155		1,191		1,241		(3%)		(7%)
ATMs		2,471		2,495		2,556		(1%)		(3%)
Full-time equivalent employees		17,763		17,844		18,200		—		(2%)

(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 AOCI)].

(d)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 31.

(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, other short-term borrowings and long-term debt.

(i)

Current period regulatory capital ratios are estimates.

(j)

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.

(k)

The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.

(l)

The Bancorp became subject to the Modified LCR regulations effective January 1, 2016.

(m)

A net tax deficiency of $1 million was reclassified from capital surplus to applicable income tax expense at March 31, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016.

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)


	For the Three Months Ended
	March 2017		December 2016		September 2016^(m)		June 2016^(m)		March 2016^(m)
Income Statement Data
Taxable equivalent net interest income^(a)(d)	$	939	$	909	$	913	$	908	$	909
Noninterest income		523		620		840		599		637
Taxable equivalent total revenue^(a)		1,462		1,529		1,753		1,507		1,546
Provision for loan and lease losses		74		54		80		91		119
Noninterest expense		986		960		973		983		986
Net income attributable to Bancorp		305		395		516		328		326
Net income available to common shareholders		290		372		501		305		311

Earnings Per Share Data
Net income allocated to common shareholders	$	286	$	368	$	496	$	302	$	308
Average common shares outstanding (in thousands):
Basic		747,668		746,367		750,886		759,105		773,564
Diluted		760,809		757,704		757,856		764,811		777,758
Earnings per share, basic		0.38		0.49		0.66		0.40		0.40
Earnings per share, diluted		0.38		0.49		0.65		0.39		0.40

Common Share Data
Cash dividends per common share	$	0.14	$	0.14	$	0.13	$	0.13	$	0.13
Book value per share		20.13		19.82		20.44		20.09		19.46
Market price per share		25.40		26.97		20.46		17.59		16.69
Common shares outstanding (in thousands)		750,145		750,479		755,582		766,346		770,471
Market capitalization	$	19,054	$	20,240	$	15,459	$	13,480	$	12,859

Financial Ratios
Return on average assets		0.88%		1.11%		1.44%		0.92%		0.93%
Return on average common equity		7.8%		9.7%		12.8%		8.0%		8.3%
Return on average tangible common equity^(b)(d)		9.3%		11.6%		15.2%		9.6%		9.9%
Noninterest income as a percent of total revenue		36%		41%		48%		40%		41%
Dividend payout ratio		36.8%		28.6%		19.7%		32.5%		32.5%
Average total Bancorp shareholders’ equity as a percent of average assets		11.72%		11.66%		11.83%		11.60%		11.57%
Tangible common equity^(c)(d)		9.15%		8.87%		8.78%		8.64%		8.55%
Taxable equivalent net interest margin^(a)(d)		3.02%		2.86%		2.88%		2.88%		2.91%
Taxable equivalent efficiency ratio^(a)(d)		67.4%		62.8%		55.5%		65.3%		63.8%
Effective tax rate		22.9%		22.6%		25.6%		23.9%		25.1%

Credit Quality
Net losses charged-off	$	89	$	73	$	107	$	87	$	96
Net losses charged-off as a percent of average portfolio loans and leases		0.40%		0.31%		0.45%		0.37%		0.42%
ALLL as a percent of portfolio loans and leases		1.35%		1.36%		1.37%		1.38%		1.38%
Allowance for credit losses as a percent of portfolio loans and leases^(k)		1.52%		1.54%		1.54%		1.54%		1.54%
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO^(e)		0.79%		0.80%		0.75%		0.86%		0.88%

Average Balances
Loans and leases, including held for sale	$	92,791	$	93,981	$	94,417	$	94,807	$	94,078
Total securities and other short-term investments		33,177		32,567		31,675		32,040		31,573
Total assets		140,140		141,837		142,726		142,920		141,582
Transaction deposits^(f)		97,018		97,008		94,855		94,929		94,680
Core deposits^(g)		100,845		100,949		98,875		98,973		98,715
Wholesale funding^(h)		19,129		20,015		22,236		23,084		21,936
Bancorp shareholders’ equity		16,429		16,545		16,883		16,584		16,376

Capital and Liquidity Ratios⁽ⁱ⁾
CET1 capital^(j)		10.76%		10.39%		10.17%		9.94%		9.81%
Tier I risk-based capital^(j)		11.90%		11.50%		11.27%		11.03%		10.91%
Total risk-based capital^(j)		15.45%		15.02%		14.88%		14.66%		14.66%
Tier I leverage		10.15%		9.90%		9.80%		9.64%		9.57%
CET1 capital (fully phased-in)^(j)(d)		10.66%		10.29%		10.09%		9.86%		9.72%
Modified liquidity coverage ratio (LCR)^(l)		119%		128%		115%		110%		118%

Operations
Banking centers		1,155		1,191		1,191		1,191		1,241
ATMs		2,471		2,495		2,497		2,514		2,556
Full-time equivalent employees		17,763		17,844		18,072		18,051		18,200

(a)

Presented on a fully taxable equivalent basis.

(b)

(c)

(d)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 31.

(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, other short-term borrowings and long-term debt.

(i)

Current period regulatory capital ratios are estimates.

(j)

(k)

The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.

(l)

The Bancorp became subject to the Modified LCR regulations effective January 1, 2016.

(m)

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income

$ in millions

(unaudited)


	For the Three Months Ended						% Change
	March 2017		December 2016		March 2016^(a)		Seq		Yr/Yr
Interest Income
Interest and fees on loans and leases	$	839	$	805	$	804		4%		4%
Interest on securities		245		245		232		—		6%
Interest on other short-term investments		2		2		2		—		—

Total interest income		1,086		1,052		1,038		3%		5%

Interest Expense
Interest on deposits		59		54		49		9%		20%
Interest on federal funds purchased		1		—		1		NM		—
Interest on other short-term borrowings		3		2		3		50%		—
Interest on long-term debt		90		93		82		(3%)		10%

Total interest expense		153		149		135		3%		13%


Net Interest Income		933		903		903		3%		3%

Provision for loan and lease losses		74		54		119		37%		(38%)

Net Interest Income After Provision for Loan and Lease Losses		859		849		784		1%		10%

Noninterest Income
Service charges on deposits		138		141		137		(2%)		1%
Corporate banking revenue		74		101		102		(27%)		(27%)
Mortgage banking net revenue		52		65		78		(20%)		(33%)
Wealth and asset management revenue		108		100		102		8%		6%
Card and processing revenue		74		79		79		(6%)		(6%)
Other noninterest income		77		137		136		(44%)		(43%)
Securities gains, net		—		(3)		3		NM		NM

Total noninterest income		523		620		637		(16%)		(18%)

Noninterest Expense
Salaries, wages and incentives		411		403		403		2%		2%
Employee benefits		111		76		100		46%		11%
Net occupancy expense		78		73		77		7%		1%
Technology and communications		58		56		56		4%		4%
Equipment expense		28		29		30		(3%)		(7%)
Card and processing expense		30		31		35		(3%)		(14%)
Other noninterest expense		270		292		285		(8%)		(5%)

Total noninterest expense		986		960		986		3%		—

Income Before Income Taxes		396		509		435		(22%)		(9%)
Applicable income tax expense		91		114		109		(20%)		(17%)

Net Income		305		395		326		(23%)		(6%)
Less: Net income attributable to noncontrolling interests		—		—		—		—		—

Net Income Attributable to Bancorp		305		395		326		(23%)		(6%)
Dividends on preferred stock		15		23		15		(35%)		—

Net Income Available to Common Shareholders	$	290	$	372	$	311		(22%)		(7%)

(a)

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income (Taxable Equivalent)

$ in millions

(unaudited)


	For the Three Months Ended
	March 2017		December 2016		September 2016^(b)		June 2016^(b)		March 2016^(b)
Interest Income
Interest and fees on loans and leases	$	839	$	805	$	816	$	808	$	804
Interest on securities		245		245		239		236		232
Interest on other short-term investments		2		2		2		2		2

Total interest income		1,086		1,052		1,057		1,046		1,038
Taxable equivalent adjustment		6		6		6		6		6

Total taxable equivalent interest income^(a)		1,092		1,058		1,063		1,052		1,044

Interest Expense
Interest on deposits		59		54		51		50		49
Interest on federal funds purchased		1		—		—		1		1
Interest on other short-term borrowings		3		2		2		3		3
Interest on long-term debt		90		93		97		90		82

Total interest expense		153		149		150		144		135


Taxable Equivalent Net Interest Income^(a)		939		909		913		908		909

Provision for loan and lease losses		74		54		80		91		119

Taxable Equivalent Net Interest Income After Provision for Loan and Lease Losses^(a)		865		855		833		817		790

Noninterest Income
Service charges on deposits		138		141		143		138		137
Corporate banking revenue		74		101		111		117		102
Mortgage banking net revenue		52		65		66		75		78
Wealth and asset management revenue		108		100		101		101		102
Card and processing revenue		74		79		79		82		79
Other noninterest income		77		137		336		80		136
Securities gains, net		—		(3)		4		6		3

Total noninterest income		523		620		840		599		637

Noninterest Expense
Salaries, wages and incentives		411		403		400		407		403
Employee benefits		111		76		78		85		100
Net occupancy expense		78		73		73		75		77
Technology and communications		58		56		62		60		56
Equipment expense		28		29		29		30		30
Card and processing expense		30		31		30		37		35
Other noninterest expense		270		292		301		289		285

Total noninterest expense		986		960		973		983		986

Taxable Equivalent Income Before Income Taxes^(a)		402		515		700		433		441
Taxable equivalent adjustment		6		6		6		6		6

Income Before Income Taxes		396		509		694		427		435
Applicable income tax expense		91		114		178		103		109

Net Income		305		395		516		324		326
Less: Net Income attributable to noncontrolling interests		—		—		—		(4)		—

Net Income Attributable to Bancorp		305		395		516		328		326
Dividends on preferred stock		15		23		15		23		15

Net Income Available to Common Shareholders	$	290	$	372	$	501	$	305	$	311

(a)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 31.

(b)

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)


	As of						% Change
	March 2017		December 2016		March 2016^(d)		Seq		Yr/Yr
Assets
Cash and due from banks	$	2,205	$	2,392	$	2,298		(8%)		(4%)
Available-for-sale and other securities^(a)		31,531		31,183		29,891		1%		5%
Held-to-maturity securities^(b)		26		26		64		—		(59%)
Trading securities		689		410		405		68%		70%
Other short-term investments		1,644		2,754		1,778		(40%)		(8%)
Loans held for sale		616		751		803		(18%)		(23%)
Portfolio loans and leases:
Commercial and industrial loans		41,074		41,676		43,433		(1%)		(5%)
Commercial mortgage loans		6,924		6,899		6,864		—		1%
Commercial construction loans		4,283		3,903		3,428		10%		25%
Commercial leases		4,092		3,974		3,956		3%		3%
Residential mortgage loans		15,336		15,051		13,895		2%		10%
Home equity		7,469		7,695		8,112		(3%)		(8%)
Automobile loans		9,572		9,983		11,128		(4%)		(14%)
Credit card		2,070		2,237		2,138		(7%)		(3%)
Other consumer loans and leases		808		680		651		19%		24%

Portfolio loans and leases		91,628		92,098		93,605		(1%)		(2%)
Allowance for loan and lease losses		(1,238)		(1,253)		(1,295)		(1%)		(4%)

Portfolio loans and leases, net		90,390		90,845		92,310		(1%)		(2%)
Bank premises and equipment		2,052		2,065		2,185		(1%)		(6%)
Operating lease equipment		702		738		738		(5%)		(5%)
Goodwill		2,419		2,416		2,416		—		—
Intangible assets		11		9		11		22%		—
Servicing rights		776		744		685		4%		13%
Other assets		7,139		7,844		8,846		(9%)		(19%)

Total Assets	$	140,200	$	142,177	$	142,430		(1%)		(2%)


Liabilities
Deposits:
Demand	$	35,362	$	35,782	$	35,858		(1%)		(1%)
Interest checking		27,230		26,679		25,182		2%		8%
Savings		14,360		13,941		14,738		3%		(3%)
Money market		20,585		20,749		19,377		(1%)		6%
Foreign office		521		426		441		22%		18%
Other time		3,750		3,866		4,049		(3%)		(7%)
Certificates $100,000 and over		2,348		2,378		2,830		(1%)		(17%)
Other		—		—		—		—		—

Total deposits		104,156		103,821		102,475		—		2%
Federal funds purchased		155		132		134		17%		16%
Other short-term borrowings		2,015		3,535		3,523		(43%)		(43%)
Accrued taxes, interest and expenses		1,655		1,800		2,011		(8%)		(18%)
Other liabilities		2,104		2,269		2,627		(7%)		(20%)
Long-term debt		13,658		14,388		15,305		(5%)		(11%)

Total Liabilities		123,743		125,945		126,075		(2%)		(2%)

Equity
Common stock^(c)		2,051		2,051		2,051		—		—
Preferred stock		1,331		1,331		1,331		—		—
Capital surplus		2,803		2,756		2,687		2%		4%
Retained earnings		13,625		13,441		12,569		1%		8%
Accumulated other comprehensive income		68		59		684		15%		(90%)
Treasury stock		(3,448)		(3,433)		(2,999)		—		15%

Total Bancorp shareholders’ equity		16,430		16,205		16,323		1%		1%
Noncontrolling interests		27		27		32		—		(16%)

Total Equity		16,457		16,232		16,355		1%		1%

Total Liabilities and Equity	$	140,200	$	142,177	$	142,430		(1%)		(2%)

(a) Amortized cost	$	31,348	$	31,024	$	28,838		1%		9%
(b) Market values		26		26		64		—		(59%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized		2,000,000		2,000,000		2,000,000		—		—
Outstanding, excluding treasury		750,145		750,479		770,471		—		(3%)
Treasury		173,748		173,413		153,422		—		13%

(d)

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)


	As of
	March 2017		December 2016		September 2016^(d)		June 2016^(d)		March 2016^(d)
Assets
Cash and due from banks	$	2,205	$	2,392	$	2,164	$	2,359	$	2,298
Available-for-sale and other securities^(a)		31,531		31,183		30,689		31,455		29,891
Held-to-maturity securities^(b)		26		26		56		62		64
Trading securities		689		410		431		401		405
Other short-term investments		1,644		2,754		2,995		1,818		1,778
Loans held for sale		616		751		1,060		877		803
Portfolio loans and leases:
Commercial and industrial loans		41,074		41,676		42,727		43,558		43,433
Commercial mortgage loans		6,924		6,899		6,856		6,875		6,864
Commercial construction loans		4,283		3,903		3,905		3,706		3,428
Commercial leases		4,092		3,974		3,995		3,978		3,956
Residential mortgage loans		15,336		15,051		14,643		14,307		13,895
Home equity		7,469		7,695		7,864		7,988		8,112
Automobile loans		9,572		9,983		10,349		10,671		11,128
Credit card		2,070		2,237		2,169		2,172		2,138
Other consumer loans and leases		808		680		643		654		651

Portfolio loans and leases		91,628		92,098		93,151		93,909		93,605
Allowance for loan and lease losses		(1,238)		(1,253)		(1,272)		(1,299)		(1,295)

Portfolio loans and leases, net		90,390		90,845		91,879		92,610		92,310
Bank premises and equipment		2,052		2,065		2,084		2,144		2,185
Operating lease equipment		702		738		771		756		738
Goodwill		2,419		2,416		2,416		2,416		2,416
Intangible assets		11		9		10		10		11
Servicing rights		776		744		619		621		685
Other assets		7,139		7,844		8,105		8,096		8,846

Total Assets	$	140,200	$	142,177	$	143,279	$	143,625	$	142,430


Liabilities
Deposits:
Demand	$	35,362	$	35,782	$	35,625	$	36,137	$	35,858
Interest checking		27,230		26,679		24,483		24,571		25,182
Savings		14,360		13,941		14,019		14,356		14,738
Money market		20,585		20,749		19,910		19,125		19,377
Foreign office		521		426		518		453		441
Other time		3,750		3,866		3,971		4,021		4,049
Certificates $100,000 and over		2,348		2,378		2,745		2,778		2,830
Other		—		—		—		430		—

Total deposits		104,156		103,821		101,271		101,871		102,475
Federal funds purchased		155		132		126		108		134
Other short-term borrowings		2,015		3,535		3,494		3,979		3,523
Accrued taxes, interest and expenses		1,655		1,800		2,178		2,187		2,011
Other liabilities		2,104		2,269		2,516		2,495		2,627
Long-term debt		13,658		14,388		16,890		16,231		15,305

Total Liabilities		123,743		125,945		126,475		126,871		126,075

Equity
Common stock^(c)		2,051		2,051		2,051		2,051		2,051
Preferred stock		1,331		1,331		1,331		1,331		1,331
Capital surplus		2,803		2,756		2,750		2,760		2,687
Retained earnings		13,625		13,441		13,175		12,772		12,569
Accumulated other comprehensive income		68		59		755		889		684
Treasury stock		(3,448)		(3,433)		(3,286)		(3,077)		(2,999)

Total Bancorp shareholders’ equity		16,430		16,205		16,776		16,726		16,323
Noncontrolling interests		27		27		28		28		32

Total Equity		16,457		16,232		16,804		16,754		16,355

Total Liabilities and Equity	$	140,200	$	142,177	$	143,279	$	143,625	$	142,430

(a) Amortized cost	$	31,348	$	31,024	$	29,486	$	30,101	$	28,838
(b) Market values		26		26		56		62		64
(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		750,145		750,479		755,582		766,346		770,471
Treasury		173,748		173,413		168,310		157,547		153,422

(d)

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Changes in Equity

$ in millions

(unaudited)


	For the Three Months Ended
	March 2017			March 2016^(a)
Total Equity, Beginning	$	16,232		$	15,870
Net income attributable to Bancorp		305			326
Other comprehensive income, net of tax:
Change in unrealized gains:
Available-for-sale securities		16			447
Qualifying cash flow hedges		(8	)		39
Change in accumulated other comprehensive income related to employee benefit plans		1			1

Comprehensive income		314			813

Cash dividends declared:
Common stock		(106	)		(100	)
Preferred stock		(15	)		(15	)
Impact of stock transactions under stock compensation plans, net		32			25
Shares acquired for treasury		—			(240	)
Noncontrolling interest		—			1
Other		—			1

Total Equity, Ending	$	16,457		$	16,355

(a)

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	For the Three Months Ended						% Change

	March 2017		December 2016		March 2016^(c)		Seq		Yr/Yr

Assets
Interest-earning assets:
Commercial and industrial loans	$	41,892	$	42,612	$	43,127		(2%)		(3%)
Commercial mortgage loans		6,946		6,961		6,908		—		1%
Commercial construction loans		3,987		3,890		3,297		2%		21%
Commercial leases		3,904		3,921		3,875		—		1%
Residential mortgage loans		15,800		15,802		14,405		—		10%
Home equity		7,581		7,779		8,241		(3%)		(8%)
Automobile loans		9,786		10,162		11,285		(4%)		(13%)
Credit card		2,141		2,180		2,277		(2%)		(6%)
Other consumer loans and leases		754		674		663		12%		14%
Taxable securities		31,815		30,677		29,619		4%		7%
Tax exempt securities		55		81		78		(32%)		(29%)
Other short-term investments		1,307		1,809		1,876		(28%)		(30%)

Total interest-earning assets		125,968		126,548		125,651		—		—
Cash and due from banks		2,205		2,358		2,335		(6%)		(6%)
Other assets		13,220		14,203		14,869		(7%)		(11%)
Allowance for loan and lease losses		(1,253)		(1,272)		(1,273)		(1%)		(2%)

Total Assets	$	140,140	$	141,837	$	141,582		(1%)		(1%)


Liabilities
Interest-bearing liabilities:
Interest checking deposits	$	26,760	$	25,644	$	25,740		4%		4%
Savings deposits		14,117		13,979		14,601		1%		(3%)
Money market deposits		20,603		20,476		18,655		1%		10%
Foreign office deposits		454		497		483		(9%)		(6%)
Other time deposits		3,827		3,941		4,035		(3%)		(5%)
Certificates $100,000 and over		2,579		2,539		2,815		2%		(8%)
Other deposits		162		115		—		41%		NM
Federal funds purchased		639		280		608		NM		5%
Other short-term borrowings		1,893		1,908		3,564		(1%)		(47%)
Long-term debt		13,856		15,173		14,949		(9%)		(7%)

Total interest-bearing liabilities		84,890		84,552		85,450		—		(1%)
Demand deposits		35,084		36,412		35,201		(4%)		—
Other liabilities		3,710		4,300		4,524		(14%)		(18%)

Total Liabilities		123,684		125,264		125,175		(1%)		(1%)
Total Equity		16,456		16,573		16,407		(1%)		—

Total Liabilities and Equity	$	140,140	$	141,837	$	141,582		(1%)		(1%)


	For the Three Months Ended						bps Change

Yield Analysis	March		December		March
Yield Analysis	2017		2016		2016		Seq		Yr/Yr
Interest-earning assets:
Commercial and industrial loans^(a)		3.47%		3.33%		3.23%		14		24
Commercial mortgage loans^(a)		3.54%		3.42%		3.27%		12		27
Commercial construction loans^(a)		3.77%		3.50%		3.38%		27		39
Commercial leases^(a)		2.70%		2.64%		2.77%		6		(7)
Residential mortgage loans		3.57%		3.48%		3.63%		9		(6)
Home equity		3.98%		3.73%		3.80%		25		18
Automobile loans		2.81%		2.80%		2.65%		1		16
Credit card		12.92%		7.30%		10.64%		562		228
Other consumer loans and leases		6.49%		6.73%		6.27%		(24)		22

Total loans and leases		3.69%		3.43%		3.46%		26		23
Taxable securities		3.11%		3.17%		3.14%		(6)		(3)
Tax exempt securities^(a)		5.79%		4.76%		4.32%		103		147
Other short-term investments		0.73%		0.47%		0.42%		26		31

Total interest-earning assets		3.51%		3.33%		3.34%		18		17

Interest-bearing liabilities:
Interest checking deposits		0.31%		0.25%		0.23%		6		8
Savings deposits		0.05%		0.04%		0.04%		1		1
Money market deposits		0.32%		0.30%		0.25%		2		7
Foreign office deposits		0.13%		0.15%		0.15%		(2)		(2)
Other time deposits		1.23%		1.24%		1.22%		(1)		1
Certificates $100,000 and over		1.35%		1.35%		1.28%		—		7
Other deposits		0.64%		0.41%		0.00%		23		64
Federal funds purchased		0.70%		0.41%		0.36%		29		34
Other short-term borrowings		0.55%		0.36%		0.39%		19		16
Long-term debt		2.65%		2.42%		2.22%		23		43

Total interest-bearing liabilities		0.73%		0.70%		0.64%		3		9

Ratios:
Taxable equivalent net interest margin^(b)		3.02%		2.86%		2.91%		16		11
Taxable equivalent net interest rate spread		2.78%		2.63%		2.70%		15		8
Interest-bearing liabilities to interest-earning assets		67.39%		66.81%		68.01%		58		(62)

(a)

Presented on a fully taxable equivalent basis.

(b)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 31.

(c)

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	For the Three Months Ended
	March 2017		December 2016		September 2016^(c)		June 2016^(c)		March 2016^(c)
Assets
Interest-earning assets:
Commercial and industrial loans	$	41,892	$	42,612	$	43,125	$	43,878	$	43,127
Commercial mortgage loans		6,946		6,961		6,891		6,835		6,908
Commercial construction loans		3,987		3,890		3,848		3,551		3,297
Commercial leases		3,904		3,921		3,963		3,904		3,875
Residential mortgage loans		15,800		15,802		15,346		14,842		14,405
Home equity		7,581		7,779		7,918		8,059		8,241
Automobile loans		9,786		10,162		10,508		10,887		11,285
Credit card		2,141		2,180		2,165		2,198		2,277
Other consumer loans and leases		754		674		653		653		663
Taxable securities		31,815		30,677		29,772		30,002		29,619
Tax exempt securities		55		81		76		85		78
Other short-term investments		1,307		1,809		1,827		1,953		1,876

Total interest-earning assets		125,968		126,548		126,092		126,847		125,651
Cash and due from banks		2,205		2,358		2,289		2,228		2,335
Other assets		13,220		14,203		15,644		15,140		14,869
Allowance for loan and lease losses		(1,253)		(1,272)		(1,299)		(1,295)		(1,273)

Total Assets	$	140,140	$	141,837	$	142,726	$	142,920	$	141,582


Liabilities
Interest-bearing liabilities:
Interest checking deposits	$	26,760	$	25,644	$	24,475	$	24,714	$	25,740
Savings deposits		14,117		13,979		14,232		14,576		14,601
Money market deposits		20,603		20,476		19,706		19,243		18,655
Foreign office deposits		454		497		524		484		483
Other time deposits		3,827		3,941		4,020		4,044		4,035
Certificates $100,000 and over		2,579		2,539		2,768		2,819		2,815
Other deposits		162		115		749		467		—
Federal funds purchased		639		280		446		693		608
Other short-term borrowings		1,893		1,908		2,171		3,754		3,564
Long-term debt		13,856		15,173		16,102		15,351		14,949

Total interest-bearing liabilities		84,890		84,552		85,193		86,145		85,450
Demand deposits		35,084		36,412		35,918		35,912		35,201
Other liabilities		3,710		4,300		4,704		4,247		4,524

Total Liabilities		123,684		125,264		125,815		126,304		125,175
Total Equity		16,456		16,573		16,911		16,616		16,407

Total Liabilities and Equity	$	140,140	$	141,837	$	142,726	$	142,920	$	141,582


Yield Analysis
Interest-earning assets:
Commercial and industrial loans^(a)		3.47%		3.33%		3.28%		3.25%		3.23%
Commercial mortgage loans^(a)		3.54%		3.42%		3.31%		3.28%		3.27%
Commercial construction loans^(a)		3.77%		3.50%		3.43%		3.36%		3.38%
Commercial leases^(a)		2.70%		2.64%		2.64%		2.71%		2.77%
Residential mortgage loans		3.57%		3.48%		3.51%		3.57%		3.63%
Home equity		3.98%		3.73%		3.76%		3.81%		3.80%
Automobile loans		2.81%		2.80%		2.71%		2.68%		2.65%
Credit card		12.92%		7.30%		10.34%		10.47%		10.64%
Other consumer loans and leases		6.49%		6.73%		6.90%		6.36%		6.27%

Total loans and leases		3.69%		3.43%		3.46%		3.45%		3.46%
Taxable securities		3.11%		3.17%		3.18%		3.16%		3.14%
Tax exempt securities^(a)		5.79%		4.76%		4.91%		4.09%		4.32%
Other short-term investments		0.73%		0.47%		0.44%		0.43%		0.42%

Total interest-earning assets		3.51%		3.33%		3.36%		3.34%		3.34%

Interest-bearing liabilities:
Interest checking deposits		0.31%		0.25%		0.23%		0.22%		0.23%
Savings deposits		0.05%		0.04%		0.04%		0.05%		0.04%
Money market deposits		0.32%		0.30%		0.27%		0.26%		0.25%
Foreign office deposits		0.13%		0.15%		0.17%		0.15%		0.15%
Other time deposits		1.23%		1.24%		1.24%		1.24%		1.22%
Certificates $100,000 and over		1.35%		1.35%		1.28%		1.29%		1.28%
Other deposits		0.64%		0.41%		0.41%		0.40%		0.00%
Federal funds purchased		0.70%		0.41%		0.40%		0.39%		0.36%
Other short-term borrowings		0.55%		0.36%		0.30%		0.36%		0.39%
Long-term debt		2.65%		2.42%		2.40%		2.36%		2.22%

Total interest-bearing liabilities		0.73%		0.70%		0.70%		0.67%		0.64%

Ratios:
Taxable equivalent net interest margin^(b)		3.02%		2.86%		2.88%		2.88%		2.91%
Taxable equivalent net interest rate spread		2.78%		2.63%		2.66%		2.67%		2.70%
Interest-bearing liabilities to interest-earning assets		67.39%		66.81%		67.56%		67.91%		68.01%

(a)

Presented on a fully taxable equivalent basis.

(b)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 31.

(c)

Fifth Third Bancorp and Subsidiaries

Summary of Loans and Leases

$ in millions

(unaudited)


	For the Three Months Ended
	March		December		September		June		March
	2017		2016		2016		2016		2016
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans	$	41,854	$	42,548	$	43,116	$	43,876	$	43,089
Commercial mortgage loans		6,941		6,957		6,888		6,831		6,886
Commercial construction loans		3,987		3,890		3,848		3,551		3,297
Commercial leases		3,901		3,921		3,962		3,898		3,874

Total commercial loans and leases		56,683		57,316		57,814		58,156		57,146
Consumer loans and leases:
Residential mortgage loans		15,200		14,854		14,455		14,046		13,788
Home equity		7,581		7,779		7,918		8,054		8,217
Automobile loans		9,786		10,162		10,508		10,887		11,283
Credit card		2,141		2,180		2,165		2,134		2,179
Other consumer loans and leases		755		673		651		654		662

Total consumer loans and leases		35,463		35,648		35,697		35,775		36,129

Total average portfolio loans and leases	$	92,146	$	92,964	$	93,511	$	93,931	$	93,275


Average loans held for sale	$	645	$	1,017	$	906	$	876	$	803

End of Period Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans	$	41,074	$	41,676	$	42,727	$	43,558	$	43,433
Commercial mortgage loans		6,924		6,899		6,856		6,875		6,864
Commercial construction loans		4,283		3,903		3,905		3,706		3,428
Commercial leases		4,092		3,974		3,995		3,978		3,956

Total commercial loans and leases		56,373		56,452		57,483		58,117		57,681
Consumer loans and leases:
Residential mortgage loans		15,336		15,051		14,643		14,307		13,895
Home equity		7,469		7,695		7,864		7,988		8,112
Automobile loans		9,572		9,983		10,349		10,671		11,128
Credit card		2,070		2,237		2,169		2,172		2,138
Other consumer loans and leases		808		680		643		654		651

Total consumer loans and leases		35,255		35,646		35,668		35,792		35,924

Total portfolio loans and leases	$	91,628	$	92,098	$	93,151	$	93,909	$	93,605


Total loans held for sale	$	616	$	751	$	1,060	$	877	$	803

Operating lease equipment	$	702	$	738	$	771	$	756	$	738

Loans and Leases Serviced for Others:^(a)
Commercial and industrial loans	$	515	$	519	$	544	$	567	$	552
Commercial mortgage loans		223		226		226		229		231
Commercial construction loans		54		41		38		24		26
Commercial leases		270		280		270		282		262
Residential mortgage loans		55,413		53,554		54,646		56,170		57,758
Automobile loans		—		51		66		83		102

Total loans and leases serviced for others		56,475		54,671		55,790		57,355		58,931

Total loans and leases serviced	$	149,421	$	148,258	$	150,772	$	152,897	$	154,077

(a)

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

Fifth Third Bancorp and Subsidiaries

Regulatory Capital

$ in millions

(unaudited)


	As of
	March		December		September		June		March
	2017^(a)		2016		2016		2016		2016
Regulatory capital:
Common stock and related surplus (net of treasury stock)	$	1,407	$	1,374	$	1,510	$	1,728	$	1,738
Retained earnings		13,625		13,441		13,175		12,772		12,569
Common equity tier I capital adjustments and deductions		(2,396)		(2,389)		(2,386)		(2,388)		(2,393)

CET1 capital		12,636		12,426		12,299		12,112		11,914
Additional tier I capital		1,331		1,330		1,331		1,331		1,330

Tier I capital		13,967		13,756		13,630		13,443		13,244
Tier II capital		4,172		4,216		4,374		4,414		4,553

Total regulatory capital	$	18,139	$	17,972	$	18,004	$	17,857	$	17,797

Risk-weighted assets^(b)	$	117,407	$	119,632	$	120,954	$	121,824	$	121,432

Ratios:
Average shareholders’ equity to average assets		11.72%		11.66%		11.83%		11.60%		11.57%

Regulatory capital ratios:
Fifth Third Bancorp
CET1 capital^(b)		10.76%		10.39%		10.17%		9.94%		9.81%
Tier I risk-based capital^(b)		11.90%		11.50%		11.27%		11.03%		10.91%
Total risk-based capital^(b)		15.45%		15.02%		14.88%		14.66%		14.66%
Tier I leverage		10.15%		9.90%		9.80%		9.64%		9.57%
CET1 capital (fully phased-in)^(b)(c)		10.66%		10.29%		10.09%		9.86%		9.72%

Fifth Third Bank
Tier I risk-based capital^(b)		12.17%		11.92%		11.98%		11.83%		11.79%
Total risk-based capital^(b)		14.03%		13.76%		13.82%		13.67%		13.63%
Tier I leverage		10.41%		10.30%		10.46%		10.37%		10.39%

(a)

Current period regulatory capital data and ratios are estimated.

(b)

(c)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 31.

Fifth Third Bancorp and Subsidiaries

Summary of Credit Loss Experience

$ in millions

(unaudited)


	For the Three Months Ended
	March 2017		December 2016		September 2016		June 2016		March 2016
Average portfolio loans and leases:
Commercial and industrial loans	$	41,854	$	42,548	$	43,116	$	43,876	$	43,089
Commercial mortgage loans		6,941		6,957		6,888		6,831		6,886
Commercial construction loans		3,987		3,890		3,848		3,551		3,297
Commercial leases		3,901		3,921		3,962		3,898		3,874
Residential mortgage loans		15,200		14,854		14,455		14,046		13,788
Home equity		7,581		7,779		7,918		8,054		8,217
Automobile loans		9,786		10,162		10,508		10,887		11,283
Credit card		2,141		2,180		2,165		2,134		2,179
Other consumer loans and leases		755		673		651		654		662

Total average portfolio loans and leases	$	92,146	$	92,964	$	93,511	$	93,931	$	93,275


Losses charged-off:
Commercial and industrial loans	($	39)	($	35)	($	76)	($	43)	($	50)
Commercial mortgage loans		(6)		(4)		(4)		(7)		(8)
Commercial construction loans		—		—		—		—		—
Commercial leases		(1)		(1)		(1)		(1)		(2)
Residential mortgage loans		(6)		(4)		(4)		(5)		(4)
Home equity		(9)		(10)		(10)		(10)		(11)
Automobile loans		(17)		(15)		(14)		(12)		(14)
Credit card		(24)		(21)		(22)		(23)		(23)
Other consumer loans and leases		(5)		(7)		(6)		(4)		(4)

Total losses charged-off	($	107)	($	97)	($	137)	($	105)	($	116)

Recoveries of losses previously charged-off:
Commercial and industrial loans	$	3	$	10	$	15	$	4	$	4
Commercial mortgage loans		1		2		2		1		2
Commercial construction loans		—		—		—		—		—
Commercial leases		—		—		1		—		—
Residential mortgage loans		1		2		2		3		2
Home equity		3		4		3		4		3
Automobile loans		6		4		5		4		5
Credit card		2		2		2		2		3
Other consumer loans and leases		2		—		—		—		1

Total recoveries of losses previously charged-off	$	18	$	24	$	30	$	18	$	20

Net losses charged-off:
Commercial and industrial loans	($	36)	($	25)	($	61)	($	39)	($	46)
Commercial mortgage loans		(5)		(2)		(2)		(6)		(6)
Commercial construction loans		—		—		—		—		—
Commercial leases		(1)		(1)		—		(1)		(2)
Residential mortgage loans		(5)		(2)		(2)		(2)		(2)
Home equity		(6)		(6)		(7)		(6)		(8)
Automobile loans		(11)		(11)		(9)		(8)		(9)
Credit card		(22)		(19)		(20)		(21)		(20)
Other consumer loans and leases		(3)		(7)		(6)		(4)		(3)

Total net losses charged-off	($	89)	($	73)	($	107)	($	87)	($	96)


Net losses charged-off as a percent of average portfolio loans and leases:
Commercial and industrial loans		0.34%		0.24%		0.56%		0.36%		0.43%
Commercial mortgage loans		0.29%		0.11%		0.08%		0.38%		0.35%
Commercial construction loans		0.00%		0.00%		0.00%		0.00%		(0.06%)
Commercial leases		0.08%		0.12%		0.00%		0.09%		0.20%
Residential mortgage loans		0.13%		0.06%		0.07%		0.06%		0.07%
Home equity		0.33%		0.35%		0.32%		0.30%		0.36%
Automobile loans		0.48%		0.40%		0.35%		0.26%		0.32%
Credit card		4.03%		3.52%		3.61%		3.92%		3.73%
Other consumer loans and leases		2.89%		3.30%		3.70%		2.42%		2.28%

Total net losses charged-off as a percent of average portfolio loans and leases		0.40%		0.31%		0.45%		0.37%		0.42%

Fifth Third Bancorp and Subsidiaries

Asset Quality

$ in millions

(unaudited)


	For the Three Months Ended
	March		December		September		June		March
	2017		2016		2016		2016		2016
Allowance for Credit Losses
Allowance for loan and lease losses, beginning	$	1,253	$	1,272	$	1,299	$	1,295	$	1,272
Total net losses charged-off		(89)		(73)		(107)		(87)		(96)
Provision for loan and lease losses		74		54		80		91		119

Allowance for loan and lease losses, ending	$	1,238	$	1,253	$	1,272	$	1,299	$	1,295

Reserve for unfunded commitments, beginning	$	161	$	162	$	151	$	144	$	138
Provision for unfunded commitments		(2)		(1)		11		7		6

Reserve for unfunded commitments, ending	$	159	$	161	$	162	$	151	$	144


Components of allowance for credit losses:
Allowance for loan and lease losses	$	1,238	$	1,253	$	1,272	$	1,299	$	1,295
Reserve for unfunded commitments		159		161		162		151		144

Total allowance for credit losses	$	1,397	$	1,414	$	1,434	$	1,450	$	1,439


	As of
	March		December		September		June		March
	2017		2016		2016		2016		2016
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
Commercial and industrial loans	$	251	$	302	$	235	$	254	$	278
Commercial mortgage loans		21		27		31		39		51
Commercial construction loans		—		—		—		—		—
Commercial leases		—		2		—		4		4
Residential mortgage loans		21		17		19		27		25
Home equity		53		55		59		61		61

Total nonaccrual portfolio loans and leases (excludes restructured loans)		346		403		344		385		419
Nonaccrual restructured portfolio commercial loans and leases		251		192		194		242		210
Nonaccrual restructured portfolio consumer loans and leases		60		65		63		66		72

Total nonaccrual portfolio loans and leases		657		660		601		693		701
Repossessed property		14		15		13		15		17
OREO		50		63		84		97		107

Total nonperforming portfolio assets		721		738		698		805		825
Nonaccrual loans held for sale		7		4		91		20		3
Nonaccrual restructured loans held for sale		2		9		9		—		2

Total nonperforming assets	$	730	$	751	$	798	$	825	$	830


Restructured portfolio consumer loans and leases (accrual)	$	950	$	959	$	972	$	982	$	998
Restructured portfolio commercial loans and leases (accrual)	$	277	$	321	$	408	$	431	$	461

90 days past due loans and leases (accrual):
Commercial and industrial loans	$	3	$	4	$	7	$	2	$	3
Commercial mortgage loans		—		—		—		—		—
Commercial construction loans		—		—		—		—		—
Commercial leases		—		—		—		—		—

Total commercial loans and leases		3		4		7		2		3

Residential mortgage loans		45		49		43		38		44
Home equity		—		—		—		—		—
Automobile loans		6		9		8		7		8
Credit card		21		22		18		18		18
Other consumer loans and leases		—		—		—		—		—

Total consumer loans and leases		72		80		69		63		70

Total 90 days past due loans and leases (accrual)^(b)	$	75	$	84	$	76	$	65	$	73

Ratios
Net losses charged-off as a percent of average portfolio loans and leases		0.40%		0.31%		0.45%		0.37%		0.42%
Allowance for loan and lease losses:
As a percent of portfolio loans and leases		1.35%		1.36%		1.37%		1.38%		1.38%
As a percent of nonperforming loans and leases^(a)		188%		190%		212%		188%		185%
As a percent of nonperforming assets^(a)		172%		170%		182%		161%		157%
Nonperforming loans and leases as a percent of portfolio loans and leases and OREO^(a)		0.72%		0.72%		0.64%		0.74%		0.75%
Nonperforming assets as a percent of portfolio loans, leases and other assets, including OREO^(a)		0.79%		0.80%		0.75%		0.86%		0.88%
Nonperforming assets as a percent of total loans, leases and other assets, including OREO		0.79%		0.81%		0.85%		0.87%		0.88%
Allowance for credit losses as a percent of nonperforming assets		194%		192%		205%		180%		174%

(a)

Does not include nonaccrual loans held for sale.

(b)

Does not include loans held for sale.

Use of Non-GAAP Financial Measures

In addition to GAAP measures, management considers various Non-GAAP measures when evaluating the performance of the business, including : “taxable equivalent net interest income,” “taxable equivalent net interest margin,” “adjusted net interest margin,” “efficiency ratio,” “taxable equivalent income before income taxes,” “noninterest income excluding certain items,” “adjusted noninterest income,” “adjusted noninterest income excluding mortgage banking net revenue,” “tangible net income available to common shareholders,” “average tangible common equity,” “tangible common equity,” “tangible equity,” “tangible book value per common share,” and “Common Equity Tier 1 under Basel III Final Rule (fully phased-in),” and certain ratios derived from these measures.

The taxable equivalent basis adjusts for the tax-favored status of income from certain loans and securities held by the Bancorp that are not taxable for federal income tax purposes. The Bancorp believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison between taxable and non-taxable amounts.

Noninterest income excluding certain items is provided by management to assist the reader in identifying significant, unusual, or large transactions that impacted noninterest income.

Management considers various measures when evaluating capital utilization and adequacy, including the tangible equity and tangible common equity (including and excluding unrealized gains/losses), in addition to capital ratios defined by the U.S. banking agencies. These calculations are intended to complement the capital ratios defined by the U.S. banking agencies for both absolute and comparative purposes. These ratios are not formally defined by U.S. GAAP or codified in the federal banking regulations and, therefore, are considered to be Non-GAAP financial measures. Management believes that providing the tangible common equity ratio excluding unrealized gains/losses on certain assets and liabilities enables investors and others to assess the Bancorp’s use of equity without the effects of gains or losses some of which are uncertain and providing the tangible common equity ratio including unrealized gains/losses enables investors and others to assess the Bancorp’s use of equity if all unrealized gains or losses were to be monetized.

Management believes tangible book value per share and return on average tangible common equity are important measures for evaluating the performance of a business as it calculates the return available to common shareholders and book value of common stock without the impact of intangible assets and their related amortization. This is useful for evaluating the performance of a business consistently, whether acquired or developed internally, compared to other companies in the industry who present similar measures.

The Bancorp became subject to the Basel III Final Rule on January 1, 2015 which defined various regulatory capital ratios including the Common Equity Tier 1 (“CET1”) ratio. The CET1 capital ratio has transition provisions that will be phased out over time. CET1 capital ratio is presented on a fully phased-in basis for comparative purposes with other organizations. The Bancorp considers the fully phased-in CET1 ratio a Non-GAAP measure since it is not the CET1 ratio in effect for the periods presented. Since analysts and the U.S. banking agencies may assess the Bancorp’s capital adequacy using these ratios, management believes they are useful to provide investors the ability to assess its capital adequacy on the same basis.

Please note that although Non-GAAP financial measures provide useful insight, they should not be considered in isolation or relied upon as a substitute for analysis using GAAP measures.

Please see page 32 for Reg. G reconciliations of all historical Non-GAAP measures used in this release to the most directly comparable GAAP measures. Management has provided forward-looking guidance on certain Non-GAAP measures in connection with its earnings 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; taxable equivalent net interest margin; adjusted net interest margin; taxable equivalent net interest income; adjusted noninterest income; adjusted noninterest income excluding mortgage banking net revenue; and noninterest income, excluding certain transactions and adjustments related to the Bancorp’s investment in Vantiv, Visa total return swap, and branch sales, closures and consolidations. 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.

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconciliation

$ and shares in millions

(unaudited)


		For the Three Months Ended
		March 2017		December 2016		September 2016⁽⁴⁾		June 2016⁽⁴⁾		March 2016⁽⁴⁾
Net interest income (U.S. GAAP)		$	933	$	903	$	907	$	902	$	903
Add:	Taxable equivalent adjustment		6		6		6		6		6

Taxable equivalent net interest income (a)			939		909		913		908		909

Net interest income (U.S. GAAP) (annualized) (b)			3,784		3,592		3,608		3,628		3,632
Taxable equivalent net interest income (annualized) (c)			3,808		3,616		3,632		3,652		3,656

Taxable equivalent net interest income (a)			939		909
Add (subtract): Bankcard refunds			(12)		16

Taxable equivalent net interest income (d)			927		925
Adjusted taxable equivalent net interest income (annualized) (e)			3,760		3,680

Noninterest income (f)			523		620		840		599		637
Noninterest expense (g)			986		960		973		983		986
Average interest-earning assets (h)			125,968		126,548		126,092		126,847		125,651

Net interest margin (U.S. GAAP) (b)/(h)			3.00%		2.84%		2.86%		2.86%		2.89%
Taxable equivalent net interest margin (c)/(h)			3.02%		2.86%		2.88%		2.88%		2.91%
Adjusted net interest margin (e)/(h)			2.98%		2.91%

Taxable equivalent efficiency ratio (g)/(a)+(f)			67.4%		62.8%		55.5%		65.3%		63.8%

Income before income taxes (U.S. GAAP)			396		509		694		427		435
Add:	Taxable equivalent adjustment		6		6		6		6		6

Taxable equivalent income before income taxes			402		515		700		433		441

Net income available to common shareholders (U.S. GAAP)			290		372		501		305		311
Add:	Intangible amortization, net of tax		—		—		—		—		—

Tangible net income available to common shareholders			290		372		501		305		311
Tangible net income available to common shareholders (annualized) (i)			1,176		1,480		1,993		1,227		1,251

Average Bancorp shareholders’ equity (U.S. GAAP)			16,429		16,545		16,883		16,584		16,376
Less:	Average preferred stock		(1,331)		(1,331)		(1,331)		(1,331)		(1,331)
	Average goodwill		(2,416)		(2,416)		(2,416)		(2,416)		(2,416)
	Average intangible assets and other servicing rights		(10)		(10)		(10)		(11)		(12)

Average tangible common equity (j)			12,672		12,788		13,126		12,826		12,617

Total Bancorp shareholders’ equity (U.S. GAAP)			16,430		16,205		16,776		16,726		16,323
Less:	Preferred stock		(1,331)		(1,331)		(1,331)		(1,331)		(1,331)
	Goodwill		(2,419)		(2,416)		(2,416)		(2,416)		(2,416)
	Intangible assets and other servicing rights		(11)		(10)		(10)		(11)		(12)

Tangible common equity, including unrealized gains / losses (k)			12,669		12,448		13,019		12,968		12,564
Less:	Accumulated other comprehensive income		(68)		(59)		(755)		(889)		(684)

Tangible common equity, excluding unrealized gains / losses (l)			12,601		12,389		12,264		12,079		11,880
Add:	Preferred stock		1,331		1,331		1,331		1,331		1,331

Tangible equity (m)			13,932		13,720		13,595		13,410		13,211

Total assets (U.S. GAAP)			140,200		142,177		143,279		143,625		142,430
Less:	Goodwill		(2,419)		(2,416)		(2,416)		(2,416)		(2,416)
	Intangible assets and other servicing rights		(11)		(10)		(10)		(11)		(12)

Tangible assets, including unrealized gains / losses (n)			137,770		139,751		140,853		141,198		140,002
Less:	Accumulated other comprehensive income / loss, before tax		(105)		(91)		(1,162)		(1,368)		(1,052)

Tangible assets, excluding unrealized gains / losses (o)		$	137,665	$	139,660	$	139,691		139,830		138,950

Common shares outstanding (p)			750		750		756		766		770
Risk-weighted assets (actual) (q)⁽¹⁾		$	117,407	$	119,632	$	120,954	$	121,824	$	121,432

Ratios:
Return on average tangible common equity (i) / (j)			9.3%		11.6%		15.2%		9.6%		9.9%
Tangible equity (m) / (o)			10.12%		9.82%		9.73%		9.59%		9.51%
Tangible common equity (excluding unrealized gains/losses) (l) / (o)			9.15%		8.87%		8.78%		8.64%		8.55%
Tangible common equity (including unrealized gains/losses) (k) / (n)			9.20%		8.91%		9.24%		9.18%		8.97%
Tangible book value per share (k) / (p)		$	16.89	$	16.60	$	17.22	$	16.93	$	16.32

Basel III Final Rule - Transition to fully phased-in
CET1 capital (transitional)		$	12,636	$	12,426	$	12,299	$	12,112	$	11,914
Less: Adjustments to CET1 capital from transitional to fully phased-in⁽²⁾			(2)		(4)		(4)		(4)		(5)

CET1 capital (fully phased-in) (r)			12,634		12,422		12,295		12,108		11,909

Risk-weighted assets (transitional)			117,407		119,632		120,954		121,824		121,432
Add: Adjustments to risk-weighted assets from transitional to fully phased-in⁽³⁾			1,164		1,115		929		932		1,027

Risk-weighted assets (fully phased-in) (s)		$	118,571	$	120,747	$	121,883	$	122,756	$	122,459

Estimated CET1 capital ratio under Basel III Final Rule (fully phased-in) (r)/(s)			10.66%		10.29%		10.09%		9.86%		9.72%

(1)

Under the banking agencies’ risk-based capital guidelines, assets and off-balance sheet exposures are assigned to various risk categories based upon the Standardized Approach to Risk-Weighted Assets.

(2)

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

(3)

Primarily relates to higher risk-weighting for MSRs.

(4)

Fifth Third Bancorp and Subsidiaries

Segment Presentation

$ in millions

(unaudited)


For the three months ended March 31, 2017	Commercial Banking		Branch *Banking^(b)***		Consumer Lending^(c)		Wealth and Asset Management		Other/ Eliminations		Total

Taxable equivalent net interest income^(a)	$	431	$	430	$	61	$	38	($	21)	$	939
Provision for loan and lease losses		(6)		(42)		(15)		(4)		(7)		(74)

Net interest income after provision for loan and lease losses		425		388		46		34		(28)		865
Total noninterest income		202		184		55		106		(24)		523
Total noninterest expense		(370)		(402)		(120)		(113)		19		(986)

Income (loss) before income taxes		257		170		(19)		27		(33)		402
Applicable income tax expense^(a)		(46)		(60)		7		(10)		12		(97)

Net income (loss)		211		110		(12)		17		(21)		305
Less: Net income attributable to noncontrolling interests		—		—		—		—		—		—

Net income (loss) attributable to Bancorp		211		110		(12)		17		(21)		305
Dividends on preferred stock		—		—		—		—		15		15

Net income (loss) available to common shareholders	$	211	$	110	($	12)	$	17	($	36)	$	290

For the three months ended December 31, 2016	Commercial Banking		Branch *Banking^(b)***		Consumer Lending^(c)		Wealth and Asset Management		Other/ Eliminations		Total

Taxable equivalent net interest income^(a)	$	453	$	397	$	63	$	41	($	45)	$	909
(Provision for) benefit from loan and lease losses		43		(34)		(12)		—		(51)		(54)

Net interest income after provision for loan and lease losses		496		363		51		41		(96)		855
Total noninterest income		221		188		69		99		43		620
Total noninterest expense		(359)		(400)		(117)		(103)		19		(960)

Income (loss) before income taxes		358		151		3		37		(34)		515
Applicable income tax expense^(a)		(78)		(53)		(1)		(13)		25		(120)

Net income (loss)		280		98		2		24		(9)		395
Less: Net income attributable to noncontrolling interests		—		—		—		—		—		—

Net income (loss) attributable to Bancorp		280		98		2		24		(9)		395
Dividends on preferred stock		—				—		—		23		23

Net income (loss) available to common shareholders	$	280	$	98	$	2	$	24	($	32)	$	372

For the three months ended September 30, 2016	Commercial Banking		Branch *Banking^(b)***		Consumer Lending^(c)		Wealth and Asset Management		Other/ *Eliminations^(d)***		*Total^(d)***

Taxable equivalent net interest income^(a)	$	462	$	414	$	63	$	40	($	66)	$	913
(Provision for) benefit from loan and lease losses		18		(34)		(12)		—		(52)		(80)

Net interest income after provision for loan and lease losses		480		380		51		40		(118)		833
Total noninterest income		228		163		71		99		279		840
Total noninterest expense		(349)		(402)		(117)		(103)		(2)		(973)

Income before income taxes		359		141		5		36		159		700
Applicable income tax expense^(a)		(80)		(50)		(2)		(13)		(39)		(184)

Net income		279		91		3		23		120		516
Less: Net income attributable to noncontrolling interests		—		—		—		—		—		—

Net income attributable to Bancorp		279		91		3		23		120		516
Dividends on preferred stock		—		—		—		—		15		15

Net income available to common shareholders	$	279	$	91	$	3	$	23	$	105	$	501

For the three months ended June 30, 2016	Commercial Banking		Branch *Banking^(b)***		Consumer Lending^(c)		Wealth and Asset Management		Other/ *Eliminations^(d)***		*Total^(d)***

Taxable equivalent net interest income^(a)	$	466	$	433	$	62	$	44	($	97)	$	908
(Provision for) benefit from loan and lease losses		(72)		(35)		(9)		(1)		26		(91)

Net interest income after provision for loan and lease losses		394		398		53		43		(71)		817
Total noninterest income		236		214		80		100		(31)		599
Total noninterest expense		(355)		(409)		(122)		(108)		11		(983)

Income (loss) before income taxes		275		203		11		35		(91)		433
Applicable income tax expense^(a)		(49)		(71)		(4)		(12)		27		(109)

Net income (loss)		226		132		7		23		(64)		324
Less: Net income attributable to noncontrolling interests		—		—		—		—		(4)		(4)

Net income (loss) attributable to Bancorp		226		132		7		23		(60)		328
Dividends on preferred stock		—		—		—		—		23		23

Net income (loss) available to common shareholders	$	226	$	132	$	7	$	23	($	83)	$	305

For the three months ended March 31, 2016	Commercial Banking		Branch *Banking^(b)***		Consumer Lending^(c)		Wealth and Asset Management		Other/ *Eliminations^(d)***		*Total^(d)***

Taxable equivalent net interest income^(a)	$	457	$	426	$	60	$	43	($	77)	$	909
Provision for loan and lease losses		(65)		(34)		(12)		—		(8)		(119)

Net interest income after provision for loan and lease losses		392		392		48		43		(85)		790
Total noninterest income		223		189		83		100		42		637
Total noninterest expense		(363)		(411)		(118)		(107)		13		(986)

Income before income taxes		252		170		13		36		(30)		441
Applicable income tax expense^(a)		(41)		(60)		(5)		(13)		4		(115)

Net income		211		110		8		23		(26)		326
Less: Net income attributable to noncontrolling interests		—		—		—		—		—		—

Net income attributable to Bancorp		211		110		8		23		(26)		326
Dividends on preferred stock		—		—		—		—		15		15

Net income available to common shareholders	$	211	$	110	$	8	$	23	($	41)	$	311

(a)

Includes taxable equivalent adjustments of $6 million for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016.

(b)

Branch Banking provides a full range of deposit and loan and lease products to individuals and small businesses through full-service banking centers.

(c)

Consumer Lending includes the Bancorp’s residential mortgage, home equity, automobile and other indirect lending activities.

(d)

Attached files

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