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

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8-K - FORM 8-K - FIFTH THIRD BANCORP	d367520d8k.htm

1Q17 Earnings Presentation

April 25, 2017

Refer to earnings release dated April 25, 2017 for further information.

Exhibit 99.2

Cautionary statement

This presentation contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule

175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These statements relate to our

financial condition, results of operations, plans, objectives, future performance or business. They usually can be identified

the use of forward-looking language such as “will

likely result,” “may,” “are expected to,” “anticipates,” “potential,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,”

“plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs.

You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent

Annual Report on Form 10-K as updated from time to time by our Quarterly Reports on Form 10-Q. When considering these forward-looking statements, you should keep in

mind these risks and uncertainties, as well as any cautionary statements we may make. Moreover, you should treat these statements as speaking only as of the date they are

made and based only on information then actually known to us. There is a risk that additional information may become known during the company’s quarterly closing process or

as a result of subsequent events that could affect the accuracy of the statements and financial information contained herein.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might

cause such a difference include, but are not limited to: (1) general economic or real estate market conditions, either nationally or in the states in which Fifth Third, one or more

acquired entities and/or the combined company do business, weaken or are less favorable than expected; (2) deteriorating credit quality; (3) political developments, wars or

other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (4) changes in the interest rate environment reduce interest margins; (5)

prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (6) Fifth Third’s ability to maintain required capital levels and adequate sources of

funding and liquidity; (7) maintaining capital requirements and adequate sources of funding and liquidity may limit Fifth Third’s operations and potential growth; (8) changes and

trends in capital markets; (9) problems encountered by larger or similar financial institutions may adversely affect the banking

industry and/or Fifth Third; (10) competitive

pressures among depository institutions increase significantly; (11) changes in customer preferences or information technology systems; (12) effects of critical accounting

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

agencies; (14) legislative or regulatory changes or actions, or significant litigation, adversely affect Fifth Third, one or more acquired entities and/or the combined company or

the businesses in which Fifth Third, one or more acquired entities and/or the combined company are engaged, including the Dodd-Frank Wall Street Reform and Consumer

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

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

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

effects of accounting or financial results of one or more

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

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

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

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

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

networks; and (29) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity.

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause

actual results to be significantly different from those expressed or implied by these forward-looking statements.

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

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

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

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

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

net interest margin (FTE); net interest income (FTE); and adjusted 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.

•

Adjusted NIM

up 7 bps sequentially and year-

over-year

•

Adjusted NII

up $2 million sequentially and $18

million year-over-year

•

Tightly-managed

noninterest expenses; up 3%

sequentially and flat year-over-year

Expenses up <1% sequentially excluding $18

million expense pulled forward due to

change in LTI grant date

•

Overall solid credit quality in-line with

expectations

•

Executing on North Star initiatives

1Q17 highlights

Non-GAAP measure: See Reg

G reconciliation on pages 20 and 21 of this presentation and use of non-GAAP measures on page 32 of the earnings release

See page 4

of the presentation for impact of certain items

Diluted Earnings

Per Share

$0.38

Included net neutral impact from

certain items

Net Income to

Common

$290 million

LCR

119%

Pre-tax items included in 1Q17

results had a net neutral EPS

impact:

A $13 million pre-tax (~$8

million

after-tax)

charge

related to the valuation of the

Visa total return swap

A $12 million pre-tax (~$8

million

after-tax)

benefit

related to the revision to the

4Q16 estimated charge to net

interest income for refunds to

certain bankcard customers

Credit trends

NCO ratio of 40 bps, up 9 bps

sequentially and down 2 bps

year-over-year

Portfolio NPA ratio of 79 bps,

down 1 bp

sequentially and

down 9 bps year-over-year

1Q17 in review

Non-GAAP measure: See Reg

G reconciliation on pages 20 and 21 of this presentation and use of non-GAAP measures on page 32 of the earnings release

Assumes a 35% tax rate

($ in millions)

Average Balances

Total loans & leases (ex HFS)

$92,146

(1%)

Core deposits

$100,845

Income Statement Data

Net interest income (FTE)

939

Provision for loan and lease losses

37%

(38%)

Noninterest income

523

(16%)

(18%)

Noninterest expense

986

Net income attributable to Bancorp

$305

(23%)

(6%)

Net income available to common

shareholders

$290

(22%)

(7%)

Financial Ratios

Earnings per share, diluted

$0.38

(22%)

(5%)

Net interest margin (FTE)

3.02%

16bps

11bps

Efficiency ratio (FTE)

67.4%

460bps

360bps

Return on average assets

0.88%

(23bps)

(5bps)

Return on average common equity

7.8%

(190bps)

(50bps)

Return on average tangible common equity

9.3%

(230bps)

(60bps)

Tangible book value per share

$16.89

Current Outlook:

$94.7

$94.9

$97.0

94%

95%

92%

91%

1Q16

2Q16

3Q16

4Q16

1Q17

$29.7

$30.1

$29.8

$30.8

$31.9

1Q16

2Q16

3Q16

4Q16

1Q17

Balance sheet

Loan

lease

balances

($ billions)

Transaction deposits flat vs. 4Q16; up 2%

YoY, driven by increased:

Interest checking

Consumer money market

Average loan-to-core deposit ratio of 91%

Modified LCR of 119% at 1Q17

Core

deposit

balances

($ billions)

$100.8

$98.7

Securities and

short-term

investments

($ billions)

Average securities up $2.2B YoY

driven by:

Opportunistically deployed cash

in 4Q16 and 1Q17 at more

attractive entry points than those

experienced prior to the U.S.

presidential election

Securities portfolio / total assets of

22.7% compared to 21.0% in 1Q16

$31.7

$32.6

$31.6

$32.0

All balances are on an average basis; loans balances exclude HFS

$33.2

Commercial down 1% vs. 4Q16; down 1%

YoY

C&I down 2% vs. 4Q16 and 3% YoY

CRE up 1% vs. 4Q16 and 7% YoY

Consumer down 1% vs. 4Q16; down 2%

YoY

Auto down 4% vs. 4Q16 and 13% YoY

HE down 3% vs. 4Q16 and 8% YoY

Mortgage up 2% vs. 4Q16 and 10% YoY

$100.9

$98.9

$99.0

Transaction

Other time

Loan-to-core

deposit ratio

Short-term investments

Average securities

FY: ~2% commercial loan growth (EOP), including impact of $900 million of remaining exits expected in 2017

FY: mid-single digit consumer & mortgage loan growth (EOP), excluding auto balances

$93.3

$93.9

$93.5

$93.0

$92.1

1Q16

2Q16

3Q16

4Q16

1Q17

Net interest income

Non-GAAP measure: See Reg

G reconciliation on pages 20 and 21 of this presentation and use of non-GAAP measures on page 32 of the earnings release

$925

Adjusted

NII & NIM performance driven

by:

Improved short-term market rates

Adjusted NII up $18 million

Adjusted NIM up 7 bps

1Q17 vs. 4Q16

1Q17 vs. 1Q16

Adjusted

NII & NIM performance driven

by:

Improved short-term market rates

Lower wholesale funding balances

Day count (-$13mm, +2 bps)

Adjusted NII up $2 million and adjusted

NIM up 7 bps

FY: NII (FTE) up 4 -

5%; Adj. NIM at high end of 2.95 –

3.00% range (w/ September & December rate hikes)

Q2: NII (FTE) up 1 -

1.5% sequentially from adjusted NII; NIM up ~2 basis points from adjusted NIM

Current Outlook

$909

$908

$913

$909

2.91%

2.88%

2.86%

3.02%

2.98%

1Q16

2Q16

3Q16

4Q16

1Q17

NII and NIM (FTE)

($ millions)

NII

Adjusted NII

NIM

Adjusted NIM

$939

$927

2.91%

•

Adjusted

noninterest income down $42

million, or 7%; driven by:

Mortgage banking net revenue and

lease remarketing impairment

Partially offset by increase in wealth

& asset and capital markets revenue

FY adjusted: up 3%, excluding mortgage

Q2 adjusted: up 8%, excluding mortgage

Noninterest income

Non-GAAP measure: See Reg

G reconciliation on pages 20 and 21 of this presentation and use of non-GAAP measures on page 32 of the earnings release

2016 excludes all items shown on page 21 of this presentation, and excludes all mortgage banking net revenue (resulting in $2.1BN);

page

this presentation, and excludes all mortgage banking net revenue (resulting in $484 million).

•

Adjusted

noninterest income down $72

million, or 12%; driven by:

4Q16 TRA payment, mortgage banking

net revenue, and lease remarketing

impairment

Partially offset by increase in wealth &

asset and capital markets revenue

1Q17 vs. 4Q16

1Q17 vs. 1Q16

Current Outlook

1,2

$637

$599

$840

$620

$523

$578

$602

$596

$608

$536

1Q16

2Q16

3Q16

4Q16

1Q17

Noninterest income

($ millions)

Noninterest income

Adjusted noninterest income

2017

excludes

all

items

shown

Noninterest expense

Non-GAAP measure: See Reg

G reconciliation on pages 20 and 22 of this presentation and use of non-GAAP measures on page 32 of the earnings release

FY: ~1% annual growth

Q2: flat versus 2Q16

•

Noninterest expense up 3%; driven by:

Seasonally higher compensation-

related expenses, and $18mm in

expense pulled forward due to

change in LTI grant date

Partially offset by diligent expense

management throughout the bank

1Q17 vs. 4Q16

1Q17 vs. 1Q16

•

Noninterest

expense

flat;

driven

by:

Lower losses and adjustments

Lower card and processing expense

due to contract renegotiations

Current Outlook:

$986

$983

$973

$960

$986

$971

$966

$951

$985

1Q16

2Q16

3Q16

4Q16

1Q17

Noninterest expense

Adjusted noninterest expense

Noninterest expense

($ millions)

•

1Q17 net charge-offs of 0.40%, up 9 bps from

4Q16 and down 2 bps from 1Q16

•

1Q17 portfolio NPAs down $17MM from 4Q16

and $104MM from 1Q16

•

1Q17 criticized assets relatively flat

•

1Q17 allowance for loan & lease losses of

1.35% down 1 bp

sequentially

Credit quality overview

NCOs range-bound with potential quarterly variability

Provision reflective of loan growth

$96

$87

$107

$73

$89

Current Outlook:

$54

$46

$63

$28

$42

$41

$44

$45

$47

0.42%

0.37%

0.45%

0.31%

0.40%

1Q16

2Q16

3Q16

4Q16

1Q17

Net charge-offs

($ millions)

Commercial

Consumer

Total NCO Ratio

$611

$602

$513

$564

$558

$214

$203

$185

$174

$163

0.88%

0.86%

0.75%

0.80%

0.79%

$825

$805

$698

$738

$721

1Q16

2Q16

3Q16

4Q16

1Q17

Commercial

Consumer

Total NPA Ratio

HFI non-performing assets

($ millions)

$1,295

$1,299

$1,272

$1,253

$1,238

1.38%

1.37%

1.36%

1.35%

1Q16

2Q16

3Q16

4Q16

1Q17

Reserve coverage

($ millions)

Allowance for Loan & Lease Losses (ALLL)

ALLL / Loans and Leases

Strong capital and liquidity position

Current period regulatory capital ratios are estimated

Capital Update

CET1 strong and improved to 10.76%, up 37 bps sequentially and 95 bps from 1Q16

Tier I risk-based capital 11.90%; Total risk-based capital 15.45%; Leverage 10.15%

Potentially over 100 bps in after-tax benefit from remaining Vantiv stake

2017 CCAR request supportive of stronger levels of capital return to shareholders

Liquidity Update

Modified LCR of 119% in 1Q17

9.81%

9.94%

10.17%

10.39%

10.76%

1Q16

2Q16

3Q16

4Q16

1Q17

Common Equity Tier 1 Ratio (Basel III)

Current outlook

Non-GAAP measure: See Reg

G reconciliation on pages 20 and 21 of this presentation and use of non-GAAP measures on page 32 of the earnings release

2016 excludes all items shown on page 21 of this presentation, and excludes all mortgage banking net revenue (resulting in $2.1BN); Q1 2017 excludes all items shown on page 21 of this

presentation, and excludes all mortgage banking net revenue (resulting in $484 million).

Note: Previous and current outlook excludes potential, but currently unforecasted, items, such as any potential additional Vantiv gains or losses, future capital actions, or changes in regulatory

or accounting guidance

Outlook as of April 25, 2017;

please see cautionary statement on slide 2 regarding forward-looking statements

Total loans & leases

(EOP excl. HFS)

Net interest income (FTE)

Net interest margin (FTE)

Noninterest income

1,2

Noninterest expense

Effective tax rate

Credit items

•

FY 2017: ~2% commercial loan growth, incl. impact of $900 million of remaining exits in 2017

•

FY 2017: mid-single digit consumer & mortgage loan growth, excluding auto balances

•

FY 2017: Up 4 –

5% (higher-end w/ September & December hikes)

•

Q2 2017: Up 1 –

1.5% sequentially from the adjusted NII of $927 million

•

FY 2017: 2.95% -

3.00% on an adjusted basis (higher-end w/ September & December hikes)

•

Q2 2017: Up ~2 bps from the adjusted NIM of 2.98%

•

FY 2017

adjusted: up 3%, excluding mortgage

•

Q2 2017 adjusted: up 8%, excluding mortgage

mortgage revenue excluded given volatility from significant increase in interest rates at the end of 2016

•

FY 2017: ~1% annual growth

•

Q2 2017: flat versus Q2 2016

•

FY 2017: mid 24% range

•

Q2 2017: 25% range

assumes no Federal corporate tax rate change

•

NCOs range-bound with potential quarterly variability

•

Provision reflective of loan growth

Appendix

PPNR and efficiency ratio trends

Non-GAAP measures: See Reg

G reconciliation on pages 20 and 21 of this presentation and use of non-GAAP measures on page 32 of the earnings release

Prior quarters include similar adjustments

•

Adjusted PPNR down 18% vs. 4Q16 driven by:

–

Vantiv TRA payment in 4Q16

–

Mortgage banking net revenue

–

Seasonal expenses and $18MM LTI impact

–

Lease remarketing impairment

•

Adjusted PPNR down 7% YoY

–

Mortgage banking net revenue

–

Lease remarketing impairment

–

Offset by improvement in NII

63.8%

65.3%

55.5%

62.8%

67.4%

65.3%

64.3%

64.0%

62.0%

67.3%

1Q16

2Q16

3Q16

4Q16

1Q17

Efficiency ratio

Efficiency Ratio

Adjusted Efficiency Ratio

($ in millions)

1Q16

2Q16

3Q16

4Q16

1Q17

Net interest income (FTE)

$909

$908

$913

$909

$939

Add: Noninterest income

637

599

840

620

523

Less: Noninterest expense

986

983

973

960

986

Pre-provision net revenue

$560

$524

$780

$569

$476

Adjustments to remove (benefit) / detriment

In net interest income:

Bankcard refunds

(12)

In noninterest income:

Gain on Vantiv

warrant actions

(9)

Vantiv TRA settlement payment

Gain from termination and settlement of Vantiv TRA

(280)

Gain on sale from the sale of a non-branch facility

(11)

Branch and land valuation adjustments

Valuation of 2009 Visa total return swap

(1)

(6)

Transfer of nonconforming investments under Volcker to HFS

Vantiv warrant valuation

(47)

(19)

Gain on sale of certain branches

(8)

(11)

Gain on sale of the agented bankcard loan portfolio

(11)

Securities (gains) / losses

(3)

(6)

(4)

In noninterest expense:

Contribution to Fifth Third Foundation

Severance expense

Retirement eligibility changes

Adjusted PPNR

$516

$539

$543

$582

$478

PPNR reconciliation

$516

$539

$543

$582

$478

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

1Q16

2Q16

3Q16

4Q16

1Q17

PPNR trend

($ millions)

Adjusted PPNR

Reported PPNR

Strong liquidity profile

Available and contingent borrowing capacity (1Q17): FHLB ~$12.0B available, ~$14.5B total; Federal Reserve ~$32.0B

Holding

Company:

Modified LCR of 119%

Holding Company cash at March 31, 2017: $2.1B

Cash currently sufficient to satisfy all fixed obligations in a stressed

environment for ~23 months (debt maturities, common and preferred

dividends, interest and other expenses) without accessing capital

markets, relying on dividends from subsidiaries or other actions

$500MM

of debt matured in 1Q17. We intend to issue debt from the

Holding Company in 2017.

Bank Entity:

There were no debt maturities at the Bank in 1Q17

The Bank did not issue any additional debt in 1Q17

2017

Funding

Plans:

$650MM of debt at the Bank will mature in 2Q17

Fifth Third would not be required to replace 2017 debt maturities to

maintain our current senior debt ratings under the Moody’s LGF

methodology

Any additional debt issuance in 2017 would result from general balance

sheet management and prudent liquidity risk management

S-T

wholesale

$500

$1,100

$2,312

2017

2018

2019

2020

2021

2022 on

Fifth Third Bancorp

First Charter Capital Trust

Holding company unsecured debt maturities

($ millions)

$650

$1,850

$2,600

$2,100

$750

2017

2018

2019

2020

2021

2022 on

Bank unsecured debt maturities

millions –

excl. Retail Brokered & Institutional CDs)

The $500MM matured in 1Q17

Demand

25%

Interest

checking

19%

Savings/

MMDA

25%

Consumer

time

Foreign

Office

Non-Core

Deposits

S-T

borrowings

Other

liabilities

Equity

12%

L-T debt

10%

Heavily core funded as of 03/31/2017

Balance sheet positioning

Commercial

loans

1,2

Investment

portfolio

Consumer

loans

Data as of 03/31/17

Includes HFS loans & leases

Fifth Third had $4.48B 1ML receive-fix swaps outstanding against C&I loans, which are being included in fixed

Fifth

Third

had

$2.96B

3ML

receive-fix

swaps

outstanding

against

long-term

debt,

which

are

being

included

floating,

long-term

debt

with

swaps

outstanding

reflected

fair

value

•

Fixed: $14.1B

1, 2

•

Float: $42.3B

1, 2

•

1ML based: 62%

(of total commercial)

•

3ML based: 8% (of total commercial)

•

Prime based: 4% (of total commercial)

•

Weighted avg. life: 1.74 years

•

52% allocation to bullet/locked-out

cash flow securities

•

Investment portfolio yield: 3.11%

•

Duration: 5.0 years

•

Net unrealized pre-tax gain: $188MM

•

98% AFS

•

Fixed: $25.2B

•

Float: $10.6B

•

Prime based: 23% (of total consumer)

•

Weighted avg. life: 3.83 years

•

Auto weighted avg. life: 1.38 years

Long-term

debt

Key characteristics

Balance sheet mix

Fixed vs. floating

Level 1

100% Fix / 0% Float

Level 2A

100% Fix / 0% Float

Non-HQLA

/other

76% Fix / 24% Float

C&I

20% Fix / 80% Float

Commercial

mortgage

23% Fix / 77% Float

4% Fix / 96% Float

Commercial

construction

100% Fix / 0% Float

Commercial

lease

Resi

mtg

construction

90% Fix / 10% Float

Auto

99% Fix / 1% Float

8% Fix / 92% Float

Home equity

31% Fix / 69% Float

Credit card

10% Fix / 90% Float

Other

•

Fixed: $10.1B

•

Float: $3.5B

•

1ML based: <1% (of total long term debt)

•

3ML based: 26% (of total long term debt)

•

Weighted avg. life: 4.37 years

Senior debt

76% Fix / 24% Float

Sub debt

64% Fix / 36% Float

99% Fix / 1% Float

Auto securiz.

proceeds

0% Fix / 100% Float

TRUPS

100% Fix / 0% Float

Other

35%

45%

20%

73%

12%

21%

27%

44%

68%

24%

<1%

Interest rate risk management

Data as of 03/31/17

Actual

results

may

vary

from

these

simulated

results

due

differences

between

forecasted

and

actual

balance

sheet

composition,

timing,

magnitude,

and

frequency

interest

rate

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

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

•

NII benefits from asset rate reset in a rising rate environment

–

57% of total loans are floating rate considering impacts of interest rate swaps (75% of

total commercial and 30%

of total consumer)

–

Investment portfolio duration of 5.0 years

–

Short-term borrowings represent approximately 12% of total wholesale funding, or 2% of total funding

–

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

•

Interest rate sensitivity tables are based on conservative deposit assumptions

–

70% beta on all interest-bearing deposit and sweep balances (~50% betas experienced in 2004 –

2006 Fed

tightening cycle)

–

No modeled re-pricing lag

–

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

increase in rates

–

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

Change in Interest Rates (bps)

+200 Shock

Change in Interest Rates (bps)

+100 Shock

+200 Ramp over 12 months

2.05%

6.98%

(4.00%)

(6.00%)

+25 Shock

+100 Ramp over 12 months

1.20%

4.37%

-100 Shock

-50 Ramp over 6 months

(3.48%)

(6.37%)

(6.00%)

(8.00%)

Betas 25% Higher

Betas 25% Lower

Change in Interest Rates (bps)

Months

13-24

Months

13-24

Months

Change in Interest Rates (bps)

Months

13-24

Months

13-24

Months

+200 Ramp over 12 months

1.79%

6.45%

2.31%

7.50%

+200 Ramp over 12 months

(0.96%)

0.95%

5.06%

13.00%

+100 Ramp over 12 months

1.07%

4.11%

1.33%

4.64%

+100 Ramp over 12 months

(0.30%)

1.36%

2.71%

7.39%

(12.00%)

% Change in NII (FTE)

$1B Balance Decrease

$1B Balance Increase

(5.45%)

Estimated NII Sensivity with Deposit Beta Changes

(2.21%)

(0.40%)

(0.19%)

Months

Estimated NII Sensitivity with Demand Deposit Balance Changes

% Change in NII (FTE)

13-24

Months

13-24

Months

Estimated NII Sensitivity Profile and ALCO Policy Limits

Estimated EVE Sensitivity Profile and ALCO Policy Limits

% Change in

NII (FTE)

ALCO Policy Limits

Change in EVE

ALCO Policy Limit

Mortgage banking results

•

$1.9B in originations, up 10% YoY; 51% purchase volume

•

1Q17 mortgage banking drivers:

–

Origination fees and gain on sale revenue down $1MM, or 3%, sequentially

–

Gain on sale margin up 29 bps sequentially

–

Net MSR valuation adjustments of positive $3MM; servicing rights amortization of $27MM

–

$47MM in gross servicing fees

•

YoY decline in mortgage banking revenue driven primarily by lower origination fees and gains

on loan sales

•

Purchased $2.4 billion MSR portfolio in 1Q 2017

Gain on sale margin represents gains on all loans originated for sale

$1.06

$1.70

$1.79

$1.66

$1.25

$0.70

$1.05

$1.09

$1.06

$0.68

3.47%

2.62%

3.01%

1.69%

1.98%

1Q16

2Q16

3Q16

4Q16

1Q17

Originations for sale

Originations HFI

Margin

Mortgage

originations

and

gain-on-sale

margins

($ billions)

(27)

(35)

(27)

(9)

1Q16

2Q16

3Q16

4Q16

1Q17

Mortgage banking revenue

($ millions)

Orig

fees and gains on loan sales

Gross servicing fees

Net MSR valuation adjustments

Servicing rights amortization

NPL rollforward

NPL HFI Rollforward

Commercial

1Q16

2Q16

3Q16

4Q16

1Q17

341

543

539

460

523

Transfers to nonaccrual status

306

104

145

161

128

Transfers to accrual status

(3)

(6)

(4)

Transfers from held for sale

Transfers to held for sale

(3)

(36)

(3)

Loans sold from portfolio

(6)

(2)

(3)

Loan paydowns/payoffs

(39)

(52)

(112)

(53)

(80)

Transfers to OREO

(1)

(3)

(1)

(3)

(2)

Charge-offs

(60)

(51)

(81)

(40)

(46)

Draws/other extensions of credit

543

539

460

523

Consumer

1Q16

2Q16

3Q16

4Q16

1Q17

165

158

154

141

137

Transfers to nonaccrual status

Transfers to accrual status

(33)

(31)

(28)

(21)

(19)

Transfers from held for sale

Transfers to held for sale

Loans sold from portfolio

Loan paydowns/payoffs

(9)

(11)

(10)

(8)

(10)

Transfers to OREO

(6)

(7)

(5)

(4)

Charge-offs

(14)

(11)

(13)

(14)

(12)

Draws/other extensions of credit

158

154

141

137

134

Total NPL

701

693

601

660

657

Total new nonaccrual loans - HFI

361

160

190

205

170

Beginning NPL amount

Ending Commercial NPL

Beginning NPL amount

Ending Consumer NPL

($ in millions)

1Q16

2Q16

3Q16

4Q16

1Q17

EOP Balance*

$3,428

$3,706

$3,905

$3,903

$4,283

Avg Balance*

$3,297

$3,551

$3,848

$3,890

$3,987

NPAs*

as % of loans

0.23%

0.19%

0.13%

Net charge-offs

as % of loans

(0.06%)

Commercial construction

Residential Mortgage

Commercial & Industrial

Home Equity & Automobile

Commercial Real Estate

*Excludes loans held-for-sale

($ in millions)

1Q16

2Q16

3Q16

4Q16

1Q17

EOP Balance*

$8,112

$7,988

$7,864

$7,695

$7,469

Avg Balance*

$8,217

$8,054

$7,918

$7,779

$7,581

90+ days delinquent

as % of loans

Net charge-offs

as % of loans

0.36%

0.30%

0.32%

0.35%

0.33%

Home equity

($ in millions)

1Q16

2Q16

3Q16

4Q16

1Q17

EOP Balance*

$11,128

$10,671

$10,349

$9,983

$9,572

Avg Balance*

$11,283

$10,887

$10,508

$10,162

$9,786

90+ days delinquent

as % of loans

0.07%

0.08%

0.09%

0.06%

Net charge-offs

$11

as % of loans

0.32%

0.26%

0.35%

0.40%

0.48%

Automobile

($ in millions)

1Q16

2Q16

3Q16

4Q16

1Q17

EOP Balance*

$13,895

$14,307

$14,643

$15,051

$15,336

Avg Balance*

$13,788

$14,046

$14,455

$14,854

$15,200

90+ days delinquent

$44

$38

$43

$49

$45

as % of loans

0.32%

0.27%

0.29%

0.33%

0.29%

NPAs*

$77

$69

$58

$53

$48

as % of loans

0.55%

0.48%

0.40%

0.35%

0.31%

Net charge-offs

as % of loans

0.07%

0.06%

0.07%

0.06%

0.13%

Residential mortgage

($ in millions)

1Q16

2Q16

3Q16

4Q16

1Q17

EOP Balance*

$43,433

$43,558

$42,727

$41,676

$41,074

Avg Balance*

$43,089

$43,876

$43,116

$42,548

$41,854

90+ days delinquent

as % of loans

0.01%

0.02%

0.01%

NPAs*

$473

$477

$419

$488

$490

as % of loans

1.09%

1.10%

0.98%

1.17%

1.19%

Net charge-offs

$46

$39

$61

$25

$36

as % of loans

0.43%

0.36%

0.56%

0.24%

0.34%

C&I

Credit trends

($ in millions)

1Q16

2Q16

3Q16

4Q16

1Q17

EOP Balance*

$6,864

$6,875

$6,856

$6,899

$6,924

Avg Balance*

$6,886

$6,831

$6,888

$6,957

$6,941

NPAs*

$126

$114

$86

$72

$64

as % of loans

1.84%

1.66%

1.25%

1.04%

0.92%

Net charge-offs

as % of loans

0.35%

0.38%

0.08%

0.11%

0.29%

Commercial mortgage

Regulation G non-GAAP reconciliation

See page 32 of the earnings release for a discussion on the use of non-GAAP financial measures

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconciliation

$ and shares in millions

(unaudited)

March

December

September

June

March

2017

2016

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) (a)

$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)

Average goodwill

(2,416)

Average intangible assets and other servicing rights

(11)

(10)

(11)

(12)

Average tangible common equity (b)

$12,671

$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)

Goodwill

(2,419)

(2,416)

Intangible assets and other servicing rights

(11)

(10)

(11)

(12)

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

$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 (d)

$12,601

$12,389

$12,264

$12,079

$11,880

Total assets (U.S. GAAP)

$140,200

$142,177

$143,279

$143,625

$142,430

Less:

Goodwill

(2,419)

(2,416)

Intangible assets and other servicing rights

(11)

(10)

(11)

(12)

Tangible assets, including unrealized gains / losses (e)

$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 (f)

$137,665

$139,660

$139,691

$139,830

$138,950

Common shares outstanding (g)

750

756

766

770

Ratios:

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

9.3%

11.6%

15.2%

9.6%

9.9%

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

9.15%

8.87%

8.78%

8.64%

8.55%

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

9.20%

8.91%

9.24%

9.18%

8.97%

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

$16.89

$16.60

$17.22

$16.93

$16.32

For the Three Months Ended

Regulation G non-GAAP reconciliation

See page 32 of the earnings release for a discussion on the use of non-GAAP financial measures

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconciliation

$ and shares in millions

(unaudited)

March

December

September

June

March

2017

2016

CET 1 capital (transitional)

$12,636

$12,426

$12,299

$12,112

$11,914

Less:

Adjustments to CET 1 capital from transitional to fully phased-in (1)

(2)

(4)

(5)

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

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 (2)

1,164

1,115

929

932

1,027

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

$118,571

$120,747

$121,883

$122,756

$122,459

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

10.66%

10.29%

10.09%

9.86%

9.72%

(1)

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

(2)

Primarily relates to higher risk-weighting for MSRs

Net interest income (U.S. GAAP)

$933

$903

$907

$902

$903

Add:

FTE Adjustment

Net interest income (FTE) (j)

$939

$909

$913

$908

$909

Net interest income (FTE) (annualized) (k)

$3,808

$3,616

$3,632

$3,652

$3,656

Net interest income (FTE)

$939

$909

$913

$908

$909

Bankcard refunds / (reversal)

(12)

Adjusted net interest income (FTE) (l)

$927

$925

$913

$908

$909

Adjusted net interest income (FTE) (annualized) (m)

$3,760

$3,680

$3,632

$3,652

$3,656

Noninterest income (U.S. GAAP) (n)

$523

$620

$840

$599

$637

Gain on Vantiv warrant actions

(9)

Vantiv TRA-related transactions

(280)

Gain from the sale of a non-branch facility

(11)

Branch / land impairment charge

Valuation of 2009 Visa total return swap

(6)

(1)

Transfer of certain nonconforming investments under Volcker to held-for-sale

Vantiv warrant valuation

(19)

(47)

Gain on sale of certain branches

(11)

(8)

Gain on sale of the non-strategic agented bankcard loan portfolio

(11)

Securities (gains) / losses

(4)

(6)

(3)

Adjusted noninterest income (o)

$536

$608

$596

$602

$578

Noninterest expense (U.S. GAAP) (p)

$986

$960

$973

$983

$986

Contribution for Fifth Third Foundation

(5)

(3)

Severance expense

(1)

(4)

(3)

(15)

Retirement eligibility changes

(9)

Adjusted noninterest expense (q)

$985

$951

$966

$971

Average interest-earning assets (r)

125,968

126,548

126,092

126,847

125,651

Ratios:

Net interest margin (k) / (r)

3.02%

2.86%

2.88%

2.91%

Adjusted net interest margin (m) / (r)

2.98%

2.91%

2.88%

2.91%

Efficiency ratio (p) / [(n) + (j)]

67.4%

62.8%

55.5%

65.3%

63.8%

Adjusted efficiency ratio (q) / [(o) + (l)]

67.3%

62.0%

64.0%

64.3%

65.3%

For the Three Months Ended

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