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

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EX-99.2 - EX-99.2 - FIFTH THIRD BANCORP	a2q20earningspresentatio.htm
8-K - 8-K - FIFTH THIRD BANCORP	fitb-20200723.htm

Fifth Third Announces Second Quarter 2020 Results

Reported diluted earnings per share of $0.23

Reported results included a negative $0.07 impact from certain items on page 2



Key Financial Data								Key Highlights

$ millions for all balance sheet and income statement items
	2Q20				1Q20			2Q19	Continue to provide support in response to the pandemic –Proactive outreach with customers, including those transitioning out of COVID-19 hardship programs –Originated $5.5 billion in Paycheck Protection Program (PPP) loans to approximately 38,000 small and mid-sized businesses –Taking measures to ensure continued employee & customer safety and remote workforce productivity Second quarter 2020 –Pre-provision net revenue^(a) up 4% from the prior quarter and up 10% from the year-ago quarter despite continued rate headwinds –Record capital markets revenue –Significant improvement in reported and adjusted efficiency ratio compared to both the prior and year-ago quarter –NCO ratio lower than low end of previous guidance range –9.7% CET1 up 35 bps sequentially; exceeds required minimum (including indicative stress capital buffer) by over 270 bps –Record deposit growth exceeding loan growth, resulting in excess liquidity (loan-to-core deposit ratio of 75%) –IB core deposit costs down 41 bps, more than previous guidance; NIM primarily impacted by excess liquidity (29 bps of the sequential decline); NIM also impacted by decline in market rates

Income Statement Data
Net income available to common shareholders	$163		$29			$427
Net interest income (U.S. GAAP)	1,200		1,229			1,245
Net interest income (FTE)^(a)	1,203		1,233			1,250
Noninterest income	650		671			660
Noninterest expense	1,121		1,200			1,243

Per Share Data
Earnings per share, basic	$0.23		$0.04			$0.57
Earnings per share, diluted	0.23		0.04			0.57
Book value per share	28.88		28.26			26.17
Tangible book value per share^(a)	22.66		22.02			20.03

Balance Sheet & Credit Quality
Average portfolio loans and leases	$118,506		$110,779			$110,095
Average deposits	150,598		126,789			124,345
Net charge-off ratio^(b)	0.44	%	0.44	%		0.29	%
Nonperforming asset ratio^(c)	0.65		0.60			0.51

Financial Ratios
Return on average assets	0.40	%	0.11	%		1.08	%
Return on average common equity	3.2		0.6			9.1
Return on average tangible common equity^(a)	4.3		1.0			12.3
CET1 capital^(d)(e)	9.72		9.37			9.57
Net interest margin^(a)	2.75		3.28			3.37
Efficiency^(a)	60.5		63.0			65.1
Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.

CEO Commentary

“Our second quarter performance once again highlighted the strength of our franchise and our ability to navigate the dynamic environment and mitigate the impact of lower rates through well-diversified fee revenues and continued expense discipline. Our CET1 capital ratio of 9.7% and loan-to-core deposit ratio of 75% are both indicative of our balance sheet strength which will serve us well during this challenging environment.

We have now generated year-over-year adjusted positive operating leverage in seven out of the past eight quarters, and also grew tangible book value per share for five consecutive quarters.

We expect credit quality to remain relatively stable in the near-term, reflecting our disciplined client selection, decade-long focus on improving our credit performance in the event of a downturn, and proactive risk management actions. Additionally, our allowance for credit losses continues to incorporate our expectation of a protracted downturn followed by a prolonged recovery period due to the economic fallout from the pandemic.

We remain intently focused on taking appropriate action for our customers, our employees, and our communities during these uncertain times. I am very proud of the way our employees have responded to support our customers and each other.”

-Greg D. Carmichael, Chairman, President and CEO

Investor contact: Chris Doll (513) 534-2345 | Media contact: Ed Loyd (513) 534-6397 July 23, 2020


Income Statement Highlights
($ in millions, except per share data)	For the Three Months Ended					% Change
	June	March	June
	2020	2020	2019	Seq	Yr/Yr
Condensed Statements of Income
Net interest income (NII)^(a)	$1,203	$1,233	$1,250	(2)%	(4)%
Provision for credit losses	485	640	85	(24)%	471%
Noninterest income	650	671	660	(3)%	(2)%
Noninterest expense	1,121	1,200	1,243	(7)%	(10)%
Income before income taxes^(a)	$247	$64	$582	286%	(58)%

Taxable equivalent adjustment	$3	$4	$5	(25)%	(40)%
Applicable income tax expense	49	14	124	250%	(60)%
Net income	$195	$46	$453	324%	(57)%
Dividends on preferred stock	32	17	26	88%	23%
Net income available to common shareholders	$163	$29	$427	462%	(62)%
Earnings per share, diluted	$0.23	$0.04	$0.57	475%	(60)%

Fifth Third Bancorp (NASDAQ®: FITB) today reported second quarter 2020 net income of $195 million compared to net income of $46 million in the prior quarter and $453 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $163 million, or $0.23 per diluted share, compared to $29 million, or $0.04 per diluted share, in the prior quarter and $427 million, or $0.57 per diluted share, in the year-ago quarter.



						Diluted earnings per share impact of certain items - 2Q20

						(after-tax impacts^(f); $ in millions, except per share data)

						Valuation of Visa total return swap within other noninterest income			$(22)
						Branch and non-branch real estate charges within other noninterest income			(10)
						COVID-19-related expenses			(9)
						Merger-related expenses			(7)
						FHLB debt extinguishment charge within other noninterest expense			(4)
						After-tax impact^(f)of certain items			$(52)

						Diluted earnings per share impact of certain items			$(0.07)

						Diluted earnings per share impact reflect 717.572 million average diluted shares outstanding


Net Interest Income
(FTE; $ in millions)^(a)	For the Three Months Ended												% Change
	June				March			June
	2020				2020			2019			Seq	Yr/Yr
Interest Income
Interest income	$1,406		$1,529			$1,641			(8)%	(14)%
Interest expense	203		296			391			(31)%	(48)%
Net interest income (NII)	$1,203		$1,233			$1,250			(2)%	(4)%
Adjusted NII^(a)	$1,188		$1,217			$1,232			(2)%	(4)%

Average Yield/Rate Analysis									bps Change
Yield on interest-earning assets	3.21	%	4.07	%		4.42	%		(86)	(121)
Rate paid on interest-bearing liabilities	0.66	%	1.09	%		1.47	%		(43)	(81)

Ratios
Net interest rate spread	2.55	%	2.98	%		2.95	%		(43)	(40)
Net interest margin (NIM)	2.75	%	3.28	%		3.37	%		(53)	(62)
Adjusted NIM^(a)	2.71	%	3.24	%		3.32	%		(53)	(61)

Compared to the prior quarter, reported NII decreased $30 million, or 2%. Excluding purchase accounting accretion of $15 million in the current quarter and $16 million in the prior quarter, adjusted NII decreased $29 million, or 2%. The decrease was driven by the impact of lower market rates on commercial loans, decreased mortgage loan balances due to an increase in prepayment activity, as well as a decline in home equity and credit card balances reflecting generally subdued demand. These impacts were partially offset by elevated average commercial revolving line of credit balances and growth from lower yielding PPP loans, as well as continued focus on reducing deposit costs and the favorable impact of previously executed hedges. Compared to the prior quarter, reported and adjusted NIM decreased 53 bps, also driven by lower market rates and the unfavorable impact from elevated cash balances (29 bps), and lower yielding PPP loans (1 bp), partially offset by benefits from lower deposit costs and previously executed hedges.

Compared to the year-ago quarter, reported NII decreased $47 million, or 4%. Excluding purchase accounting accretion, adjusted NII decreased $44 million, or 4%, primarily reflecting lower market rates, partially offset by the impact of elevated average commercial line draws and lower yielding PPP loans, as well as a continued focus on reducing deposit costs and the favorable impact of previously executed hedges. Compared to the year-ago quarter, reported NIM decreased 62 bps. Excluding purchase accounting accretion, adjusted NIM decreased 61 bps, primarily reflecting the impact of lower market rates on commercial loans and significantly elevated cash balances, partially offset by benefits from lower deposit costs and previously executed hedges.


Noninterest Income
($ in millions)	For the Three Months Ended					% Change
	June	March	June
	2020	2020	2019	Seq	Yr/Yr
Noninterest Income
Service charges on deposits	$122	$148	$143	(18)%	(15)%
Commercial banking revenue	137	124	107	10%	28%
Mortgage banking net revenue	99	120	63	(18)%	57%
Wealth and asset management revenue	120	134	122	(10)%	(2)%
Card and processing revenue	82	86	92	(5)%	(11)%
Leasing business revenue	57	73	76	(22)%	(25)%
Other noninterest income	12	7	47	71%	(74)%
Securities gains (losses), net	21	(24)	8	NM	163%
Securities gains, net - non-qualifying hedges
on mortgage servicing rights	—	3	2	(100)%	(100)%
Total noninterest income	$650	$671	$660	(3)%	(2)%

Reported noninterest income decreased $21 million, or 3%, from the prior quarter, and decreased $10 million, or 2%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below. Reported noninterest income results include securities gains/losses which were attributable predominantly to mark-to-market impacts related to non-qualified deferred compensation assets, and were offset in noninterest expense, resulting in an immaterial impact to pre-tax income.


Noninterest Income excluding certain items
($ in millions)	For the Three Months Ended
	June		March		June
	2020		2020		2019
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)	$650	$671		$660
Valuation of Visa total return swap	29	22		22
Branch and non-branch real estate charges	12	—		—
Net impairment on private equity investments	—	15		—
Securities (gains) losses, net (excluding GreenSky)	(21)	24		(8)
Noninterest income excluding certain items^(a)	$670	$732		$674

Compared to the prior quarter, noninterest income excluding certain items decreased $62 million, or 8%. Compared to the year-ago quarter, noninterest income excluding certain items decreased $4 million, or 1%.

Compared to the prior quarter, service charges on deposits decreased $26 million, or 18%, reflecting lower consumer and commercial deposit fees which were impacted by the record growth in deposit balances as well as hardship-related fee waivers granted throughout the quarter. Commercial banking revenue increased $13 million, or 10%, reflecting increases in both debt and equity capital markets revenue, as well as increased institutional brokerage revenue. Mortgage banking net revenue decreased $21 million, or 18%, as strong origination fees and gains on loan sales (reflecting improved margins) in the current quarter were more than offset by the MSR net valuation adjustment that returned to normalized levels compared to the prior quarter favorability, as well as lower origination volume and a decrease in gross servicing fee revenue in the current quarter. Current quarter mortgage originations of $3.4 billion decreased 15% compared to the prior quarter and were impacted by the decision to temporarily pause correspondent channel production. Mortgage originations excluding correspondent channel production increased 22% compared to the prior quarter. Wealth and asset management revenue decreased $14 million, or 10%, primarily driven by lower revenue given the equity market performance and seasonally strong tax preparation fees from the prior quarter. Card and processing revenue decreased

$4 million, or 5%, resulting from lower credit and debit volumes throughout the quarter reflecting customer behavioral changes in response to the pandemic, partially offset by lower rewards. Leasing business revenue decreased $16 million, or 22%, primarily driven by a decrease in lease syndication revenue.

Compared to the year-ago quarter, service charges on deposits decreased $21 million, or 15%, driven by lower consumer and commercial deposit fees, which were impacted by the record growth in deposit balances as well as hardship-related fee waivers granted throughout the quarter. Commercial banking revenue increased $30 million, or 28%, reflecting increases in both debt and equity capital markets revenue, as well as increased institutional brokerage and financial risk management revenue. Mortgage banking net revenue increased $36 million, or 57% primarily driven by strong origination fees and gains on loan sales reflecting improved margins. Originations excluding the correspondent channel increased 41% compared to the year-ago quarter. Wealth and asset management revenue decreased $2 million, or 2%. Card and processing revenue decreased by $10 million, or 11%, reflecting decreases in debit and credit volumes, partially offset by lower rewards. Leasing business revenue decreased $19 million, or 25% primarily reflecting lower business solutions revenue.


Noninterest Expense
($ in millions)	For the Three Months Ended									% Change
	June		March		June
	2020		2020		2019			Seq	Yr/Yr
Noninterest Expense
Compensation and benefits	$627	$647		$641		(3)%	(2)%
Net occupancy expense	82	82		88		-	(7)%
Technology and communications	90	93		136		(3)%	(34)%
Equipment expense	32	32		33		-	(3)%
Card and processing expense	29	31		34		(6)%	(15)%
Leasing business expense	33	35		38		(6)%	(13)%
Marketing expense	20	31		41		(35)%	(51)%
Intangible amortization expense	12	13		14		(8)%	(14)%
Other noninterest expense	196	236		218		(17)%	(10)%
Total noninterest expense	$1,121	$1,200		$1,243		(7)%	(10)%


Impacts of Merger-Related Expenses
($ in millions)	For the Three Months Ended
	June		March		June
	2020		2020		2019
Merger-Related Expenses
Compensation and benefits	$2	$2		$41
Net occupancy expense	2	1		6
Technology and communications	4	3		49
Equipment expense	—	—		1
Card and processing expense	—	—		1
Leasing business expense	—	—		—
Marketing expense	—	—		3
Intangible amortization expense	—	—		—
Other noninterest expense	1	1		8
Total merger-related expenses	$9	$7		$109


Noninterest Expense excluding Merger-Related Expenses^(a)
($ in millions)	For the Three Months Ended									% Change
	June		March		June
	2020		2020		2019		Seq		Yr/Yr
Noninterest Expense excluding Merger-Related Expenses
Compensation and benefits	$625	$645		$600		(3)%		4%
Net occupancy expense	80	81		82		(1)%		(2)%
Technology and communications	86	90		87		(4)%		(1)%
Equipment expense	32	32		32		—%		—%
Card and processing expense	29	31		33		(6)%		(12)%
Leasing business expense	33	35		38		(6)%		(13)%
Marketing expense	20	31		38		(35)%		(47)%
Intangible amortization expense	12	13		14		(8)%		(14)%
Other noninterest expense	195	235		210		(17)%		(7)%
Total noninterest expense excluding merger-related expenses	$1,112	$1,193		$1,134		(7)%		(2)%

Compared to the prior quarter, reported noninterest expense decreased $79 million, or 7%. Excluding certain noninterest expense items shown on page 2 and in the reconciliation tables of the earnings release (including COVID-19-related expenses), as well as intangible amortization expense, noninterest expense decreased $62 million, or 5%, primarily reflecting lower compensation and benefits (which included $22 million from non-qualified deferred compensation expense in the current quarter compared to an expense benefit of $26 million in the prior quarter), lower other noninterest expense, declines in expenses directly associated with revenue-generating activities, and continued discipline managing expenses throughout the Company. Excluding the impacts of non-qualified deferred compensation expense (offset in noninterest income), expenses decreased $110 million, or 9%, compared to the prior quarter.

Compared to the year-ago quarter, reported noninterest expense decreased $122 million, or 10%. Excluding certain noninterest expenses shown on page 2 and in the reconciliation tables of the earnings release (including COVID-19-related expenses), as well as intangible amortization expense, noninterest expense decreased $38 million, or 3%, primarily reflecting lower marketing expense, lower other noninterest expense, and declines in expenses directly associated with business activities, partially offset by elevated compensation and benefits expenses (which included $22 million from non-qualified deferred compensation expense in the current quarter compared to $7 million in the year-ago quarter). Excluding the impacts of non-qualified deferred compensation expense (offset in noninterest income), expenses decreased $53 million, or 5%, compared to the year-ago quarter.


Average Interest-Earning Assets
($ in millions)	For the Three Months Ended									% Change
	June		March		June
	2020		2020		2019			Seq	Yr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans	$59,040	$51,586		$52,078		14%	13%
Commercial mortgage loans	11,222	11,019		10,632		2%	6%
Commercial construction loans	5,548	5,132		5,248		8%	6%
Commercial leases	3,056	3,201		3,809		(5)%	(20)%
Total commercial loans and leases	$78,866	$70,938		$71,767		11%	10%
Consumer loans:
Residential mortgage loans	$16,561	$16,732		$16,804		(1)%	(1)%
Home equity	5,820	6,006		6,376		(3)%	(9)%
Indirect secured consumer loans	12,124	11,809		10,190		3%	19%
Credit card	2,248	2,498		2,408		(10)%	(7)%
Other consumer loans	2,887	2,796		2,550		3%	13%
Total consumer loans	$39,640	$39,841		$38,328		(1)%	3%
Total average portfolio loans and leases	$118,506	$110,779		$110,095		7%	8%

Average Loans and Leases Held for Sale
Commercial loans and leases held for sale	$68	$108		$113		(37)%	(40)%
Consumer loans held for sale	844	1,293		785		(35)%	8%
Total average loans and leases held for sale	$912	$1,401		$898		(35)%	2%

Securities and other short-term investments	$56,806	$39,033		$37,797		46%	50%
Total average interest-earning assets	$176,224	$151,213		$148,790		17%	18%

Compared to the prior quarter, total average portfolio loans and leases increased 7%, reflecting growth in commercial and industrial (C&I) loans, commercial construction and indirect secured consumer loans (predominantly indirect automobile). Average commercial portfolio loans and leases increased 11%, reflecting elevated C&I revolving line of credit utilization and the impact of PPP loans in the current quarter, as well as growth in commercial construction and commercial mortgage loans, partially offset by lower commercial leases. Average consumer portfolio loans decreased 1%, reflecting declines in credit card and home equity loans, partially offset by growth in indirect secured consumer loans.

Compared to the year-ago quarter, total average portfolio loans and leases increased 8%, reflecting growth in C&I loans as well as continued growth in indirect secured consumer loans (predominantly indirect automobile). Average commercial portfolio loans and leases increased 10%, reflecting elevated C&I balances predominantly from elevated corporate banking client line of credit utilization for part of the quarter, PPP loans, and growth in commercial mortgage loans, partially offset by a decline in commercial leases. Average consumer portfolio loans increased 3%, as higher indirect secured consumer loans were partially offset by lower credit card and home equity loans.

Total period-end commercial portfolio loans and leases of $75 billion included $5.2 billion in PPP loan balances and decreased $3 billion, or 3%, from the prior quarter, and increased $5 billion, or 7%, from the year-ago quarter, reflecting a normalization of commercial revolving line utilization throughout the current quarter. Period-end commercial revolving line utilization was 38%, compared to 47% in the prior quarter and 37% in the year-ago quarter.

Average available-for-sale debt and other securities of $36.1 billion increased 3% compared to the prior quarter and increased 4% compared to the year-ago quarter. Average other short-term investments (which includes interest-bearing cash) of $19.8 billion increased $16.9 billion compared to the prior quarter and increased $17.5 billion compared to the year-ago quarter.


Average Deposits
	($ in millions)	For the Three Months Ended									% Change
		June		March		June
		2020		2020		2019			Seq	Yr/Yr
	Average Deposits
	Demand	$45,761	$35,765		$35,818		28%	28%
	Interest checking	49,760	40,298		36,514		23%	36%
	Savings	16,354	14,715		14,418		11%	13%
	Money market	30,022	27,109		25,934		11%	16%
	Foreign office^(g)	182	209		163		(13)%	12%
	Total transaction deposits	$142,079	$118,096		$112,847		20%	26%
	Other time	4,421	5,081		5,678		(13)%	(22)%
	Total core deposits	$146,500	$123,177		$118,525		19%	24%
	Certificates - $100,000 and over	4,067	3,355		5,780		21%	(30)%
	Other deposits	31	257		40		(88)%	(23)%
	Total average deposits	$150,598	$126,789		$124,345		19%	21%

Compared to the prior quarter, average core deposits increased 19%, with double-digit growth in all deposit captions except other time and foreign office deposits. Average demand deposits represented 31% of total core deposits in the current quarter compared to 29% in the prior quarter. Average commercial transaction deposits increased 34% and average consumer transaction deposits increased 8%.

Compared to the year-ago quarter, average core deposits increased 24%, reflecting record growth in commercial and consumer balances. Average commercial transaction deposits increased 45% and average consumer transaction deposits increased 10%.

The period end loan-to-core deposit ratio was 75% in the current quarter, compared to 89% in the prior quarter and 91% in the year-ago quarter.


Average Wholesale Funding
	($ in millions)	For the Three Months Ended									% Change
		June		March		June
		2020		2020		2019			Seq	Yr/Yr
	Average Wholesale Funding
	Certificates - $100,000 and over	$4,067	$3,355		$5,780		21%	(30)%
	Other deposits	31	257		40		(88)%	(23)%
	Federal funds purchased	309	654		1,151		(53)%	(73)%
	Other short-term borrowings	2,377	1,750		1,119		36%	112%
	Long-term debt	16,955	15,816		15,543		7%	9%
	Total average wholesale funding	$23,739	$21,832		$23,633		9%	—%

Compared to the prior quarter, average wholesale funding increased 9%, driven primarily by debt issuances of $1.25 billion during the quarter, as well as increases in jumbo CD balances and other short-term borrowings reflecting $3 billion in FHLB advances which were initiated in the first month of the quarter and subsequently extinguished, partially offset by decreased federal funds borrowings and other deposits. Compared to the year-ago quarter, average wholesale funding remained flat as decreases in jumbo CD balances, federal funds borrowings and other deposits were offset by increases in long-term debt and other short-term borrowings.


Credit Quality Summary
($ in millions)	As of and For the Three Months Ended
	June				March			December			September		June
	2020				2020			2019			2019		2019

Total nonaccrual portfolio loans and leases (NPLs)	$700		$647			$618			$482		$521
Repossessed property	4		10			10			9		8
OREO	43		52			52			28		31
Total nonperforming portfolio loans and leases and OREO (NPAs)	$747		$709			$680			$519		$560

NPL ratio^(h)	0.61	%	0.55	%		0.56	%		0.44	%	0.48	%
NPA ratio^(c)	0.65	%	0.60	%		0.62	%		0.47	%	0.51	%

Total loans and leases 30-89 days past due (accrual)	$381		$409			$364			$402		$383
Total loans and leases 90 days past due (accrual)	136		151			130			132		128

Allowance for loan and lease losses (ALLL), beginning	$2,348		$1,202			$1,143			$1,115		$1,115
Impact of CECL adoption	—		643			—			—		—
Total net losses charged-off	(130)		(122)			(113)			(99)		(78)
Provision for loan and lease losses	478		625			172			127		78
ALLL, ending	$2,696		$2,348			$1,202			$1,143		$1,115

Reserve for unfunded commitments, beginning	$169		$144			$154			$147		$133
Impact of CECL adoption	—		10			—			—		—
Reserve for acquired commitments	—		—			—			—		7
Provision for (benefit from) the reserve for unfunded commitments	7		15			(10)			7		7
Reserve for unfunded commitments, ending	$176		$169			$144			$154		$147

Total allowance for credit losses (ACL)	$2,872		$2,517			$1,346			$1,297		$1,262

ACL ratios:
As a % of portfolio loans and leases	2.50	%	2.13	%		1.23	%		1.19	%	1.15	%
As a % of nonperforming portfolio loans and leases	410	%	389	%		218	%		269	%	242	%
As a % of nonperforming portfolio assets	385	%	355	%		198	%		250	%	225	%

ALLL as a % of portfolio loans and leases	2.34	%	1.99	%		1.10	%		1.04	%	1.02	%

Total losses charged-off	$(163)		$(159)			$(152)			$(130)		$(119)
Total recoveries of losses previously charged-off	33		37			39			31		41
Total net losses charged-off	$(130)		$(122)			$(113)			$(99)		$(78)

Net charge-off ratio (NCO ratio)^(b)	0.44	%	0.44	%		0.41	%		0.36	%	0.29	%
Commercial NCO ratio	0.40	%	0.32	%		0.20	%		0.18	%	0.13	%
Consumer NCO ratio	0.52	%	0.66	%		0.78	%		0.68	%	0.59	%

Nonperforming portfolio loans and leases were $700 million in the current quarter, with the resulting NPL ratio of 0.61%. Compared to the prior quarter, NPLs increased $53 million with the NPL ratio increasing 6 bps. Compared to the year-ago quarter, NPLs increased $179 million with the NPL ratio increasing 13 bps.

Nonperforming portfolio assets were $747 million in the current quarter, with the resulting NPA ratio of 0.65%. Compared to the prior quarter, NPAs increased $38 million with the NPA ratio increasing 5 bps. Compared to the year-ago quarter, NPAs increased $187 million with the NPA ratio increasing 14 bps.

The provision for credit losses totaled $485 million in the current quarter. The allowance for credit loss ratio represented 2.50% of total portfolio loans and leases in the current quarter, compared with 2.13% in the prior quarter and 1.15% in the year-ago quarter (using the incurred loss methodology). In the current quarter, the allowance for credit losses represented 410% of nonperforming portfolio loans and leases and 385% of nonperforming portfolio assets. The allowance for loan and lease losses ratio represented 2.34% of total portfolio loans and leases in the current quarter.

Net charge-offs were $130 million in the current quarter, with the resulting NCO ratio of 0.44%. Compared to the prior quarter, net charge-offs increased $8 million and the NCO ratio remained flat. Compared to the year-ago quarter, net charge-offs increased $52 million and the NCO ratio increased 15 bps.


Capital Position
	As of and For the Three Months Ended
	June			March			December		September				June
	2020			2020			2019		2019			2019
Capital Position
Average total Bancorp shareholders' equity as a % of average assets		11.30	%	12.63	%	12.58%		12.43%		12.02	%
Tangible equity^(a)		7.68	%	8.41	%	9.52%		9.29%		9.09	%
Tangible common equity (excluding AOCI)^(a)		6.77	%	7.41	%	8.44%		8.21%		8.27	%
Tangible common equity (including AOCI)^(a)		8.13	%	8.65	%	9.08%		9.09%		8.91	%

Regulatory Capital Ratios^(e)
CET1 capital^(d)		9.72	%	9.37	%	9.75%		9.56%		9.57	%
Tier I risk-based capital^(d)		10.95	%	10.56	%	10.99%		10.81%		10.62	%
Total risk-based capital^(d)		14.23	%	13.59	%	13.84%		13.68%		13.53	%
Tier I leverage		8.16	%	9.37	%	9.54%		9.36%		9.24	%

Capital ratios remained strong during the quarter. The CET1 capital ratio was 9.72%, the tangible common equity to tangible assets ratio was 6.77% excluding AOCI, and 8.13% including AOCI. The Tier I risk-based capital ratio was 10.95%, the Total risk-based capital ratio was 14.23%, and the Tier I leverage ratio was 8.16%. Certain capital ratios, including the Tier I leverage ratio, were impacted by the significant increase in assets throughout the quarter, predominantly from growth in 0% risk-weighted assets resulting from an increase in interest-bearing cash as well as PPP loans.

On June 30, 2020, Fifth Third released its indicative stress capital buffer requirement resulting from the Federal Reserve Board’s 2020 Comprehensive Capital Analysis and Review results incorporating the supervisory severely adverse scenario published in February 2020. Fifth Third’s indicative stress capital buffer under this scenario is 2.5%, effective October 1, 2020. The stress capital buffer of 2.5% is the floor under the regulatory capital rules. Without the floor, Fifth Third estimates its buffer would have been approximately 2.1%.

Tax Rate

The effective tax rate was 19.9% compared with 22.6% in the prior quarter and 21.5% in the year-ago quarter. The tax rate in the current quarter reflected a one-time $2 million tax benefit primarily due to various state items.

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.

Corporate Profile

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of June 30, 2020, the Company had $203 billion in assets and operates 1,122 full-service Banking Centers, and 2,456 Fifth Third branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. In total, Fifth Third provides its customers with access to approximately 53,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2020, had $405 billion in assets under care, of which it managed $49 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory 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)Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 27.

(b)Net losses charged-off as a percent of average portfolio loans and leases.

(c)Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.

(d)Under the U.S. 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.

(e)Current period regulatory capital ratios are estimated.

(f)Assumes a 23% tax rate.

(g)Includes commercial customer Eurodollar sweep balances for which the Bank pays rates comparable to other commercial deposit accounts.

(h)Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO.

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,” “is anticipated,” “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 by our filings with the U.S. Securities and Exchange Commission (“SEC”). 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. We undertake no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this document.

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) effects of the global COVID-19 pandemic; (2) deteriorating credit quality; (3) loan concentration by location or industry of borrowers or collateral; (4) problems encountered by other financial institutions; (5) inadequate sources of funding or liquidity; (6) unfavorable actions of rating agencies; (7) inability to maintain or grow deposits; (8) limitations on the ability to receive dividends from subsidiaries; (9) cyber-security risks; (10) Fifth Third’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (11) failures by third-party service providers; (12) inability to manage strategic initiatives and/or organizational changes; (13) inability to implement technology system enhancements; (14) failure of internal controls and other risk management systems; (15) losses related to fraud, theft or violence; (16) inability to attract and retain skilled personnel; (17) adverse impacts of government regulation; (18) governmental or regulatory changes or other actions; (19) failures to meet applicable capital requirements; (20) regulatory objections to Fifth Third’s capital plan; (21) regulation of Fifth Third’s derivatives activities; (22) deposit insurance premiums; (23) assessments for the orderly liquidation fund; (24) replacement of LIBOR; (25) weakness in the national or local economies; (26) global political and economic uncertainty or negative actions; (27) changes in interest rates; (28) changes and trends in capital markets; (29) fluctuation of Fifth Third’s stock price; (30) volatility in mortgage banking revenue; (31) litigation, investigations, and enforcement proceedings by governmental authorities; (32) breaches of contractual covenants, representations and warranties; (33) competition and changes in the financial services industry; (34) changing retail distribution strategies, customer preferences and behavior; (35) risks relating to Fifth Third’s ability to realize the anticipated benefits of the merger with MB Financial, Inc.; (36) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (37) potential dilution from future acquisitions; (38) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (39) results of investments or acquired entities; (40) changes in accounting standards or interpretation or declines in the value of Fifth Third’s goodwill or other intangible assets; (41) inaccuracies or other failures from the use of models; (42) effects of critical accounting policies and judgments or the use of inaccurate estimates; (43) weather-related events, other natural disasters, or health emergencies; and (44) the impact of reputational risk created by these or other 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.

# # #

Quarterly Financial Review for June 30, 2020

Table of Contents




			Financial Highlights			14-15
			Consolidated Statements of Income			16-17
			Consolidated Balance Sheets			18-19
			Consolidated Statements of Changes in Equity			20
			Average Balance Sheet and Yield Analysis			21-22
			Summary of Loans and Leases			23
			Regulatory Capital			24
			Summary of Credit Loss Experience			25
			Asset Quality			26
			Regulation G Non-GAAP Reconciliation			27-29
			Segment Presentation			30


Fifth Third Bancorp and Subsidiaries
Financial Highlights									% / bps										% / bps
$ in millions, except per share data			For the Three Months Ended										Change						Year to Date	Change
(unaudited)			June		March		June						June		June
		2020	2020		2019		Seq		Yr/Yr		2020		2019		Yr/Yr
Income Statement Data
Net interest income			$1,200		$1,229		$1,245		(2%)		(4%)		$2,429		$2,327		4%
Net interest income (FTE)^(a)			1,203		1,233		1,250		(2%)		(4%)		2,436		2,336		4%
Noninterest income			650		671		660		(3%)		(2%)		1,321		1,761		(25%)
	Total revenue (FTE)^(a)	1,853	1,904		1,910		(3%)		(3%)		3,757		4,097		(8%)
Provision for credit losses			485		640		85		(24%)		471%		1,125		175		543%
Noninterest expense			1,121		1,200		1,243		(7%)		(10%)		2,321		2,341		(1%)
Net income			195		46		453		324%		(57%)		243		1,228		(80%)
Net income available to common shareholders			163		29		427		462%		(62%)		193		1,187		(84%)

Earnings Per Share Data
Net income allocated to common shareholders			$162		$28		$423		479%		(62%)		$191		$1,176		(84%)
Average common shares outstanding (in thousands):
	Basic	714,767	713,556		738,051		—		(3%)		714,161		699,767		2%
	Diluted	717,572	720,363		747,750		—		(4%)		718,967		709,430		1%
Earnings per share, basic			$0.23		$0.04		$0.57		475%		(60%)		$0.27		$1.68		(84%)
Earnings per share, diluted			0.23		0.04		0.57		475%		(60%)		0.27		1.66		(84%)

Common Share Data
Cash dividends per common share			$0.27		$0.27		$0.24		-		13%		$0.54		$0.46		17%
Book value per share			28.88		28.26		26.17		2%		10%		28.88		26.17		10%
Market price per share			19.28		14.85		27.90		30%		(31%)		19.28		27.90		(31%)
Common shares outstanding (in thousands)			712,202		711,306		731,474		—		(3%)		712,202		731,474		(3%)
Market capitalization			$13,731		$10,563		$20,408		30%		(33%)		$13,731		$20,408		(33%)

Financial Ratios
Return on average assets			0.40	%	0.11	%	1.08	%	29		(68)		0.26	%	1.56	%	(130)
Return on average common equity			3.2	%	0.6	%	9.1	%	260		(590)		1.9	%	13.9	%	(1,200)
Return on average tangible common equity^(a)			4.3	%	1.0	%	12.3	%	330		(800)		2.7	%	17.8	%	(1,510)
Noninterest income as a percent of total revenue^(a)			35.0	%	35.0	%	35.0	%	—		—		35.0	%	43.0	%	(800)
Dividend payout			117.4%		675.0%		42.1%		(5,576)		753		200.0%		27.4%		1,726
Average total Bancorp shareholders' equity as a percent of average assets			11.30	%	12.63	%	12.02	%	(133)		(72)		11.92	%	11.74	%	18
Tangible common equity^(a)			6.77	%	7.41	%	8.27	%	(64)		(150)		6.76	%	8.27	%	(151)
Net interest margin (FTE)^(a)			2.75	%	3.28	%	3.37	%	(53)		(62)		2.99	%	3.33	%	(34)
Efficiency (FTE)^(a)			60.5	%	63.0	%	65.1	%	(250)		(460)		61.8	%	57.1	%	470
Effective tax rate			19.9	%	22.6	%	21.5	%	(270)		(160)		20.4	%	21.9	%	(150)

Credit Quality
Net losses charged-off			$130		$122		$78		7	%	67	%	$252		$156		62	%
Net losses charged-off as a percent of average portfolio loans and leases			0.44	%	0.44	%	0.29	%	—		15		0.44	%	0.30	%	14
ALLL as a percent of portfolio loans and leases			2.34	%	1.99	%	1.02	%	35		132		2.34	%	1.02	%	132
ACL as a percent of portfolio loans and leases^(g)			2.50	%	2.13	%	1.15	%	37		135		2.50	%	1.15	%	135
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO			0.65	%	0.60	%	0.51	%	5		14		0.65	%	0.51	%	14

Average Balances
Loans and leases, including held for sale			$119,418		$112,180		$110,993		6%		8%		$115,799		$104,712		11%
Securities and other short-term investments			56,806		39,033		37,797		46%		50%		47,920		36,953		30%
Assets			198,387		171,871		167,578		15%		18%		185,129		158,324		17%
Transaction deposits^(b)			142,079		118,096		112,847		20%		26%		130,087		106,780		22%
Core deposits^(c)			146,500		123,177		118,525		19%		24%		134,838		112,051		20%
Wholesale funding^(d)			23,739		21,832		23,633		9%		—		22,786		22,915		(1%)
Bancorp shareholders' equity			22,420		21,713		20,135		3%		11%		22,066		18,588		19%

Regulatory Capital Ratios^(e)
CET1 capital^(f)			9.72	%	9.37	%	9.57	%	35		15		9.72	%	9.57	%	15
Tier I risk-based capital^(f)			10.95	%	10.56	%	10.62	%	39		33		10.95	%	10.62	%	33
Total risk-based capital^(f)			14.23	%	13.59	%	13.53	%	64		70		14.23	%	13.53	%	70
Tier I leverage			8.16	%	9.37	%	9.24	%	(121)		(108)		8.16	%	9.24	%	(108)

Operations
Banking centers			1,122		1,123		1,207		—		(7%)		1,122		1,207		(7%)
ATMs			2,456		2,464		2,551		—		(4%)		2,456		2,551		(4%)
Full-time equivalent employees			20,340		20,182		19,758		1%		3%		20,340		19,758		3%

(a)Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 27.

(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.

(c)Includes transaction deposits plus other time deposits.

(d)Includes certificates $100,000 and over, other deposits, federal funds purchased, other short-term borrowings and long-term debt.

(e)Current period regulatory capital ratios are estimates.

(f)Under the U.S. 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.

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


Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share data			For the Three Months Ended
(unaudited)			June		March		December		September		June
		2020	2020		2019		2019		2019
Income Statement Data
Net interest income			$1,200		$1,229		$1,228		$1,242		$1,245
Net interest income (FTE)^(a)			1,203		1,233		1,232		1,246		1,250
Noninterest income			650		671		1,035		740		660
	Total revenue (FTE)^(a)	1,853	1,904		2,267		1,986		1,910
Provision for credit losses			485		640		162		134		85
Noninterest expense			1,121		1,200		1,160		1,159		1,243
Net income			195		46		734		549		453
Net income available to common shareholders			163		29		701		530		427

Earnings Per Share Data
Net income allocated to common shareholders			$162		$28		$696		$526		$423
Average common shares outstanding (in thousands):
	Basic	714,767	713,556		715,137		726,716		738,051
	Diluted	717,572	720,363		724,968		736,086		747,750
Earnings per share, basic			$0.23		$0.04		$0.97		$0.72		$0.57
Earnings per share, diluted			0.23		0.04		0.96		0.71		0.57

Common Share Data
Cash dividends per common share			$0.27		$0.27		$0.24		$0.24		$0.24
Book value per share			28.88		28.26		27.41		27.32		26.17
Market value per share			19.28		14.85		30.74		27.38		27.90
Common shares outstanding (in thousands)			712,202		711,306		708,916		718,583		731,474
Market capitalization			$13,731		$10,563		$21,792		$19,675		$20,408

Financial Ratios
Return on average assets			0.40	%	0.11	%	1.72	%	1.28	%	1.08	%
Return on average common equity			3.2	%	0.6	%	14.2	%	10.7	%	9.1	%
Return on average tangible common equity^(a)			4.3	%	1.0	%	18.7	%	14.2	%	12.3	%
Noninterest income as a percent of total revenue^(a)			35	%	35	%	46	%	37	%	35	%
Dividend payout			117.4%		675.0%		24.7%		33.3%		42.1%
Average total Bancorp shareholders' equity as a percent of average assets			11.30	%	12.63	%	12.58	%	12.43	%	12.02	%
Tangible common equity^(a)			6.77	%	7.41	%	8.44	%	8.21	%	8.27	%
Net interest margin (FTE)^(a)			2.75	%	3.28	%	3.27	%	3.32	%	3.37	%
Efficiency (FTE)^(a)			60.5	%	63.0	%	51.2	%	58.4	%	65.1	%
Effective tax rate			19.9	%	22.6	%	22.0	%	20.2	%	21.5	%

Credit Quality
Net losses charged-off			$130		$122		$113		$99		$78
Net losses charged-off as a percent of average portfolio loans and leases			0.44	%	0.44	%	0.41	%	0.36	%	0.29	%
ALLL as a percent of portfolio loans and leases			2.34	%	1.99	%	1.10	%	1.04	%	1.02	%
Allowance for credit losses as a percent of portfolio loans and leases^(g)			2.50	%	2.13	%	1.23	%	1.19	%	1.15	%
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO			0.65	%	0.60	%	0.62	%	0.47	%	0.51	%

Average Balances
Loans and leases, including held for sale			$119,418		$112,180		$110,986		$110,666		$110,993
Securities and other short-term investments			56,806		39,033		38,326		38,188		37,797
Assets			198,387		171,871		169,327		169,585		167,578
Transaction deposits^(b)			142,079		118,096		116,285		114,541		112,847
Core deposits^(c)			146,500		123,177		121,792		120,364		118,525
Wholesale funding^(d)			23,739		21,832		21,491		22,492		23,633
Bancorp shareholders' equity			22,420		21,713		21,304		21,087		20,135

Regulatory Capital Ratios^(e)
CET1 capital^(f)			9.72	%	9.37	%	9.75	%	9.56	%	9.57	%
Tier I risk-based capital^(f)			10.95	%	10.56	%	10.99	%	10.81	%	10.62	%
Total risk-based capital^(f)			14.23	%	13.59	%	13.84	%	13.68	%	13.53	%
Tier I leverage			8.16	%	9.37	%	9.54	%	9.36	%	9.24	%

Operations
Banking centers			1,122		1,123		1,149		1,143		1,207
ATMs			2,456		2,464		2,481		2,487		2,551
Full-time equivalent employees			20,340		20,182		19,869		19,478		19,758

(a)Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 27.

(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.

(c)Includes transaction deposits plus other time deposits.

(d)Includes certificates $100,000 and over, other deposits, federal funds purchased, other short-term borrowings and long-term debt.

(e)Current period regulatory capital ratios are estimates.

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


Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income^(a)
$ in millions	For the Three Months Ended					% Change				Year to Date	% Change
(unaudited)	June	March	June				June	June
	2020	2020	2019	Seq	Yr/Yr		2020	2019	Yr/Yr
Interest Income
Interest and fees on loans and leases	$1,115	$1,235	$1,336	(10%)	(17%)		$2,350	$2,479	(5%)
Interest on securities	283	283	290	-	(2%)		566	571	(1%)
Interest on other short-term investments	5	7	10	(29%)	(50%)		12	19	(37%)
Total interest income	1,403	1,525	1,636	(8%)	(14%)		2,928	3,069	(5%)

Interest Expense
Interest on deposits	83	166	243	(50)%	(66%)		248	449	(45%)
Interest on federal funds purchased	—	2	8	(100)%	(100%)		2	20	(90%)
Interest on other short-term borrowings	2	6	9	(67)%	(78%)		8	14	(43%)
Interest on long-term debt	118	122	131	(3)%	(10%)		241	259	(7%)
Total interest expense	203	296	391	(31)%	(48%)		499	742	(33%)

Net Interest Income	1,200	1,229	1,245	(2)%	(4%)		2,429	2,327	4%

Provision for credit losses	485	640	85	(24%)	471%		1,125	175	543%
Net Interest Income After Provision for Credit Losses	715	589	1,160	21%	(38%)		1,304	2,152	(39%)

Noninterest Income
Service charges on deposits	122	148	143	(18)%	(15%)		270	274	(1%)
Commercial banking revenue	137	124	107	10%	28%		261	209	25%
Mortgage banking net revenue	99	120	63	(18)%	57%		219	119	84%
Wealth and asset management revenue	120	134	122	(10)%	(2%)		255	234	9%
Card and processing revenue	82	86	92	(5)%	(11%)		167	171	(2%)
Leasing business revenue	57	73	76	(22)%	(25%)		131	108	21%
Other noninterest income	12	7	47	71%	(74%)		18	616	(97%)
Securities (losses) gains, net	21	(24)	8	NM	163%		(3)	25	NM
Securities gains, net - non-qualifying hedges on mortgage servicing rights	—	3	2	(100%)	(100%)		3	5	(40%)
Total noninterest income	650	671	660	(3)%	(2%)		1,321	1,761	(25%)

Noninterest Expense
Compensation and benefits	627	647	641	(3%)	(2%)		1,274	1,251	2%
Net occupancy expense	82	82	88	-	(7%)		164	164	-
Technology and communications	90	93	136	(3%)	(34%)		183	219	(16%)
Equipment expense	32	32	33	-	(3%)		64	63	2%
Card and processing expense	29	31	34	(6%)	(15%)		60	64	(6%)
Leasing business expense	33	35	38	(6%)	(13%)		68	57	19%
Marketing expense	20	31	41	(35%)	(51%)		51	77	(34%)
Other noninterest expense	208	249	232	(16%)	(10%)		457	446	2%
Total noninterest expense	1,121	1,200	1,243	(7%)	(10%)		2,321	2,341	(1%)
Income Before Income Taxes	244	60	577	307%	(58%)		304	1,572	(81%)
Applicable income tax expense	49	14	124	250%	(60%)		61	344	(82%)
Net Income	195	46	453	324%	(57%)		243	1,228	(80%)
Dividends on preferred stock	32	17	26	88%	23%		50	41	22%
Net Income Available to Common Shareholders	$163	$29	$427	462%	(62%)		$193	$1,187	(84%)


Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millions	For the Three Months Ended
(unaudited)	June	March	December	September	June
	2020	2020	2019	2019	2019
Interest Income
Interest and fees on loans and leases	$1,115	$1,235	$1,252	$1,320	$1,336
Interest on securities	283	283	299	291	290
Interest on other short-term investments	5	7	8	14	10
Total interest income	1,403	1,525	1,559	1,625	1,636

Interest Expense
Interest on deposits	83	166	201	243	243
Interest on federal funds purchased	—	2	5	4	8
Interest on other short-term borrowings	2	6	5	8	9
Interest on long-term debt	118	122	120	128	131
Total interest expense	203	296	331	383	391

Net Interest Income	1,200	1,229	1,228	1,242	1,245

Provision for credit losses	485	640	162	134	85
Net Interest Income After Provision for Credit Losses	715	589	1,066	1,108	1,160

Noninterest Income
Service charges on deposits	122	148	149	143	143
Commercial banking revenue	137	124	127	123	107
Mortgage banking net revenue	99	120	73	95	63
Wealth and asset management revenue	120	134	129	124	122
Card and processing revenue	82	86	95	94	92
Leasing business revenue	57	73	71	92	76
Other noninterest income	12	7	382	64	47
Securities gains (losses), net	21	(24)	10	5	8
Securities gains (losses), net - non-qualifying hedges on mortgage servicing rights	—	3	(1)	—	2
Total noninterest income	650	671	1,035	740	660

Noninterest Expense
Compensation and benefits	627	647	576	584	641
Net occupancy expense	82	82	84	84	88
Technology and communications	90	93	103	100	136
Equipment expense	32	32	33	33	33
Card and processing expense	29	31	33	33	34
Leasing business expense	33	35	36	40	38
Marketing expense	20	31	44	40	41
Other noninterest expense	208	249	251	245	232
Total noninterest expense	1,121	1,200	1,160	1,159	1,243
Income Before Income Taxes	244	60	941	689	577
Applicable income tax expense	49	14	207	140	124
Net Income	195	46	734	549	453
Dividends on preferred stock	32	17	33	19	26
Net Income Available to Common Shareholders	$163	$29	$701	$530	$427


Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data	As of						% Change
(unaudited)	June	March	June
	2020	2020	2019	Seq	Yr/Yr
Assets
Cash and due from banks	$3,221	$3,282	$2,764	(2%)	17%
Other short-term investments	28,243	6,319	3,357	347%	741%
Available-for-sale debt and other securities^(a)	38,599	38,645	35,753	0%	8%
Held-to-maturity securities^(b)	16	17	21	(6%)	(24%)
Trading debt securities	526	433	322	21%	63%
Equity securities	273	459	485	(41%)	(44%)
Loans and leases held for sale	912	1,630	1,205	(44%)	(24%)
Portfolio loans and leases:
Commercial and industrial loans	55,661	58,250	51,104	(4%)	9%
Commercial mortgage loans	11,233	11,160	10,717	1%	5%
Commercial construction loans	5,479	5,462	5,264	0%	4%
Commercial leases	3,061	3,123	3,677	(2%)	(17%)
Total commercial loans and leases	75,434	77,995	70,762	(3%)	7%
Residential mortgage loans	16,457	16,701	16,777	(1%)	(2%)
Home equity	5,681	5,963	6,325	(5%)	(10%)
Indirect secured consumer loans	12,395	12,050	10,403	3%	19%
Credit card	2,211	2,417	2,436	(9%)	(9%)
Other consumer loans	2,875	2,911	2,580	(1%)	11%
Total consumer loans	39,619	40,042	38,521	(1%)	3%
Portfolio loans and leases	115,053	118,037	109,283	(3%)	5%
Allowance for loan and lease losses	(2,696)	(2,348)	(1,115)	15%	142%
Portfolio loans and leases, net	112,357	115,689	108,168	(3%)	4%
Bank premises and equipment	2,053	2,009	2,074	2%	(1%)
Operating lease equipment	809	819	894	(1%)	(10%)
Goodwill	4,261	4,261	4,284	-	(1%)
Intangible assets	171	184	215	(7%)	(20%)
Servicing rights	676	685	1,039	(1%)	(35%)
Other assets	10,789	10,959	8,221	(2%)	31%
Total Assets	$202,906	$185,391	$168,802	9%	20%

Liabilities
Deposits:
Demand	$49,359	$39,533	$35,589	25%	39%
Interest checking	51,586	44,520	37,491	16%	38%
Savings	16,896	15,557	14,484	9%	17%
Money market	30,881	27,775	26,465	11%	17%
Foreign office	191	177	175	8%	9%
Other time	3,913	4,683	5,759	(16%)	(32%)
Certificates $100,000 and over	4,120	2,816	5,429	46%	(24%)
Other deposits	—	—	—	NM	NM
Total deposits	156,946	135,061	125,392	16%	25%
Federal funds purchased	262	1,625	179	(84%)	46%
Other short-term borrowings	1,285	4,542	957	(72%)	34%
Accrued taxes, interest and expenses	2,582	2,432	2,397	6%	8%
Other liabilities	3,169	3,576	3,422	(11%)	(7%)
Long-term debt	16,327	16,282	15,784	0%	3%
Total Liabilities	180,571	163,518	148,131	10%	22%
Equity
Common stock^(c)	2,051	2,051	2,051	-	-
Preferred stock	1,770	1,770	1,331	-	33%
Capital surplus	3,603	3,597	3,572	0%	1%
Retained earnings	17,643	17,677	17,431	0%	1%
Accumulated other comprehensive income	2,951	2,477	1,178	19%	151%
Treasury stock	(5,683)	(5,699)	(5,089)	0%	12%
Total Bancorp shareholders' equity	22,335	21,873	20,474	2%	9%
Noncontrolling interests	—	—	197	NM	(100%)
Total Equity	22,335	21,873	20,671	2%	8%
Total Liabilities and Equity	$202,906	$185,391	$168,802	9%	20%
(a) Amortized cost	$35,780	$36,428	$34,731	(2%)	3%
(b) Market values	16	17	21	(6%)	(24%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized	2,000,000	2,000,000	2,000,000	—	—
Outstanding, excluding treasury	712,202	711,306	731,474	—	(3	%)
Treasury	211,690	212,586	192,419	—	10	%


Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data	As of
(unaudited)	June	March	December	September	June
	2020	2020	2019	2019	2019
Assets
Cash and due from banks	$3,221	$3,282	$3,278	$3,261	$2,764
Other short-term investments	28,243	6,319	1,950	3,235	3,357
Available-for-sale debt and other securities^(a)	38,599	38,645	36,028	37,178	35,753
Held-to-maturity securities^(b)	16	17	17	18	21
Trading debt securities	526	433	297	297	322
Equity securities	273	459	564	459	485
Loans and leases held for sale	912	1,630	1,400	1,223	1,205
Portfolio loans and leases:
Commercial and industrial loans	55,661	58,250	50,542	50,768	51,104
Commercial mortgage loans	11,233	11,160	10,963	10,822	10,717
Commercial construction loans	5,479	5,462	5,090	5,281	5,264
Commercial leases	3,061	3,123	3,363	3,495	3,677
Total commercial loans and leases	75,434	77,995	69,958	70,366	70,762
Residential mortgage loans	16,457	16,701	16,724	16,675	16,777
Home equity	5,681	5,963	6,083	6,218	6,325
Indirect secured consumer loans	12,395	12,050	11,538	11,026	10,403
Credit card	2,211	2,417	2,532	2,467	2,436
Other consumer loans	2,875	2,911	2,723	2,657	2,580
Total consumer loans	39,619	40,042	39,600	39,043	38,521
Portfolio loans and leases	115,053	118,037	109,558	109,409	109,283
Allowance for loan and lease losses	(2,696)	(2,348)	(1,202)	(1,143)	(1,115)
Portfolio loans and leases, net	112,357	115,689	108,356	108,266	108,168
Bank premises and equipment	2,053	2,009	1,995	2,053	2,074
Operating lease equipment	809	819	848	869	894
Goodwill	4,261	4,261	4,252	4,290	4,284
Intangible assets	171	184	201	201	215
Servicing rights	676	685	993	910	1,039
Other assets	10,789	10,959	9,190	8,819	8,221
Total Assets	$202,906	$185,391	$169,369	$171,079	$168,802

Liabilities
Deposits:
Demand	$49,359	$39,533	$35,968	$35,893	$35,589
Interest checking	51,586	44,520	40,409	36,965	37,491
Savings	16,896	15,557	14,248	14,354	14,484
Money market	30,881	27,775	27,277	27,370	26,465
Foreign office	191	177	221	226	175
Other time	3,913	4,683	5,237	5,662	5,759
Certificates $100,000 and over	4,120	2,816	3,702	4,377	5,429
Other deposits	—	—	—	500	—
Total deposits	156,946	135,061	127,062	125,347	125,392
Federal funds purchased	262	1,625	260	876	179
Other short-term borrowings	1,285	4,542	1,011	4,046	957
Accrued taxes, interest and expenses	2,582	2,432	2,441	2,507	2,397
Other liabilities	3,169	3,576	2,422	2,425	3,422
Long-term debt	16,327	16,282	14,970	14,474	15,784
Total Liabilities	180,571	163,518	148,166	149,675	148,131
Equity
Common stock^(c)	2,051	2,051	2,051	2,051	2,051
Preferred stock	1,770	1,770	1,770	1,770	1,331
Capital surplus	3,603	3,597	3,599	3,589	3,572
Retained earnings	17,643	17,677	18,315	17,786	17,431
Accumulated other comprehensive income	2,951	2,477	1,192	1,635	1,178
Treasury stock	(5,683)	(5,699)	(5,724)	(5,427)	(5,089)
Total Bancorp shareholders' equity	22,335	21,873	21,203	21,404	20,474
Noncontrolling interests	—	—	—	—	197
Total Equity	22,335	21,873	21,203	21,404	20,671
Total Liabilities and Equity	$202,906	$185,391	$169,369	$171,079	$168,802
(a) Amortized cost	$35,780	$36,428	$34,966	$35,662	$34,731
(b) Market values	16	17	17	18	21
(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	712,202	711,306	708,916	718,583	731,474
Treasury	211,690	212,586	214,977	205,309	192,419


Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
			For the Three Months Ended				Year to Date
			June	June		June	June
			2020	2019		2020	2019
Total Equity, Beginning					$21,873	$19,844		$21,203	$16,250
Net income					195	453		243	1,228
Other comprehensive income, net of tax:
	Change in unrealized gains:
		Available-for-sale debt securities	456	577		1,338	1,008
		Qualifying cash flow hedges	17	191		419	280
	Change in accumulated other comprehensive income related to employee benefit plans			1	1		2	2
Comprehensive income					669	1,222		2,002	2,518
Cash dividends declared:
	Common stock			(195)	(178)		(390)	(343)
	Preferred stock			(32)	(26)		(50)	(41)
Impact of stock transactions under stock compensation plans, net					20	10		43	35
Shares acquired for treasury					—	(200)		—	(1,113)
Impact of acquisition					—	—		—	3,159
Noncontrolling interest					—	—		—	197
Other					—	(1)		(1)	(1)
Impact of cumulative effect of change in accounting principles					—	—		(472)	10
Total Equity, Ending					$22,335	$20,671		$22,335	$20,671


Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate Analysis
$ in millions	For the Three Months Ended								% Change					Year to Date	% Change
(unaudited)	June		March		June				June		June
	2020		2020		2019		Seq	Yr/Yr	2020		2019		Yr/Yr
Assets
Interest-earning assets:
Commercial and industrial loans	$59,106		$51,693		$52,187		14%	13%	$55,399		$49,145		13%
Commercial mortgage loans	11,224		11,020		10,635		2%	6%	11,122		9,035		23%
Commercial construction loans	5,548		5,132		5,248		8%	6%	5,340		5,044		6%
Commercial leases	3,056		3,201		3,811		(5%)	(20%)	3,128		3,684		(15%)
Total commercial loans and leases	78,934		71,046		71,881		11%	10%	74,989		66,908		12%
Residential mortgage loans	17,405		18,024		17,589		(3%)	(1%)	17,715		16,873		5%
Home equity	5,820		6,006		6,376		(3%)	(9%)	5,913		6,366		(7%)
Indirect secured consumer loans	12,124		11,809		10,190		3%	19%	11,967		9,686		24%
Credit card	2,248		2,498		2,408		(10%)	(7%)	2,373		2,402		(1%)
Other consumer loans	2,887		2,797		2,549		3%	13%	2,842		2,477		15%
Total consumer loans	40,484		41,134		39,112		(2%)	4%	40,810		37,804		8%
Taxable securities	36,817		35,973		35,467		2%	4%	36,395		34,896		4%
Tax exempt securities	156		162		40		(4%)	290%	159		34		368%
Other short-term investments	19,833		2,898		2,290		584%	766%	11,366		2,023		462%
Total interest-earning assets	176,224		151,213		148,790		17%	18%	163,719		141,665		16%
Cash and due from banks	3,121		2,880		2,931		8%	6%	3,000		2,576		16%
Other assets	21,394		19,623		16,972		9%	26%	20,509		15,192		35%
Allowance for loan and lease losses	(2,352)		(1,845)		(1,115)		27%	111%	(2,099)		(1,109)		89%
Total Assets	$198,387		$171,871		$167,578		15%	18%	$185,129		$158,324		17%

Liabilities
Interest-bearing liabilities:
Interest checking deposits	$49,760		$40,298		$36,514		23%	36%	$45,029		$35,113		28%
Savings deposits	16,354		14,715		14,418		11%	13%	15,534		13,739		13%
Money market deposits	30,022		27,109		25,934		11%	16%	28,565		24,541		16%
Foreign office deposits	182		209		163		(13%)	12%	196		185		6%
Other time deposits	4,421		5,081		5,678		(13%)	(22%)	4,751		5,271		(10%)
Total interest-bearing core deposits	100,739		87,412		82,707		15%	22%	94,075		78,849		19%
Certificates $100,000 and over	4,067		3,355		5,780		21%	(30%)	3,711		4,576		(19%)
Other deposits	31		257		40		(88%)	(23%)	144		381		(62%)
Federal funds purchased	309		654		1,151		(53%)	(73%)	481		1,582		(70%)
Other short-term borrowings	2,377		1,750		1,119		36%	112%	2,063		884		133%
Long-term debt	16,955		15,816		15,543		7%	9%	16,387		15,492		6%
Total interest-bearing liabilities	124,478		109,244		106,340		14%	17%	116,861		101,764		15%
Demand deposits	45,761		35,765		35,818		28%	28%	40,763		33,202		23%
Other liabilities	5,727		5,149		5,088		11%	13%	5,438		4,659		17%
Total Liabilities	175,966		150,158		147,246		17%	20%	163,062		139,625		17%
Total Equity	22,421		21,713		20,332		3%	10%	22,067		18,699		18%
Total Liabilities and Equity	$198,387		$171,871		$167,578		15%	18%	$185,129		$158,324		17%

	For the Three Months Ended								bps Change					Year to Date	bps Change
	June		March		June				June		June
Yield/Rate Analysis	2020		2020		2019		Seq	Yr/Yr	2020		2019		Yr/Yr
Interest-earning assets:
Commercial and industrial loans^(a)	3.47	%	4.25	%	4.79	%	(78)	(132)	3.83	%	4.73	%	(90)
Commercial mortgage loans^(a)	3.44	%	4.44	%	5.11	%	(100)	(167)	3.94	%	4.98	%	(104)
Commercial construction loans^(a)	3.53	%	4.82	%	5.71	%	(129)	(218)	4.15	%	5.63	%	(148)
Commercial leases^(a)	3.47	%	3.46	%	3.51	%	1	(4)	3.47	%	3.30	%	17
Total commercial loans and leases	3.47	%	4.28	%	4.84	%	(81)	(137)	3.86	%	4.76	%	(90)
Residential mortgage loans	3.53	%	3.63	%	3.70	%	(10)	(17)	3.58	%	3.71	%	(13)
Home equity	3.60	%	4.71	%	5.30	%	(111)	(170)	4.16	%	5.32	%	(116)
Indirect secured consumer loans	4.04	%	4.09	%	4.11	%	(5)	(7)	4.07	%	3.96	%	11
Credit card	11.28	%	12.13	%	12.38	%	(85)	(110)	11.72	%	12.50	%	(78)
Other consumer loans	6.50	%	7.71	%	7.58	%	(121)	(108)	7.09	%	7.54	%	(45)
Total consumer loans	4.34	%	4.71	%	4.85	%	(37)	(51)	4.53	%	4.85	%	(32)
Total loans and leases	3.76	%	4.44	%	4.84	%	(68)	(108)	4.09	%	4.79	%	(70)
Taxable securities	3.08	%	3.15	%	3.28	%	(7)	(20)	3.12	%	3.30	%	(18)
Tax exempt securities^(a)	2.96	%	3.04	%	3.50	%	(8)	(54)	3.00	%	4.03	%	(103)
Other short-term investments	0.11	%	0.97	%	1.80	%	(86)	(169)	0.22	%	1.87	%	(165)
Total interest-earning assets	3.21	%	4.07	%	4.42	%	(86)	(121)	3.61	%	4.38	%	(77)

Interest-bearing liabilities:
Interest checking deposits	0.24	%	0.75	%	1.17	%	(51)	(93)	0.46	%	1.17	%	(71)
Savings deposits	0.06	%	0.13	%	0.17	%	(7)	(11)	0.09	%	0.16	%	(7)
Money market deposits	0.32	%	0.72	%	1.14	%	(40)	(82)	0.51	%	1.09	%	(58)
Foreign office deposits	0.09	%	0.57	%	0.53	%	(48)	(44)	0.35	%	0.57	%	(22)
Other time deposits	1.21	%	1.56	%	1.84	%	(35)	(63)	1.40	%	1.82	%	(42)
Total interest-bearing core deposits	0.27	%	0.68	%	1.03	%	(41)	(76)	0.46	%	1.01	%	(55)
Certificates $100,000 and over	1.40	%	2.09	%	2.10	%	(69)	(70)	1.71	%	2.11	%	(40)
Other deposits	0.04	%	0.85	%	2.92	%	(81)	(288)	0.76	%	2.46	%	(170)
Federal funds purchased	0.16	%	1.13	%	2.61	%	(97)	(245)	0.82	%	2.50	%	(168)
Other short-term borrowings	0.32	%	1.32	%	3.08	%	(100)	(276)	0.74	%	3.28	%	(254)
Long-term debt	2.80	%	3.12	%	3.39	%	(32)	(59)	2.95	%	3.37	%	(42)
Total interest-bearing liabilities	0.66	%	1.09	%	1.47	%	(43)	(81)	0.86	%	1.47	%	(61)
(a) Presented on an FTE basis.


Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate Analysis
$ in millions	For the Three Months Ended
(unaudited)	June		March		December		September		June
	2020		2020		2019		2019		2019
Assets
Interest-earning assets:
Commercial and industrial loans	$59,106		$51,693		$50,980		$51,364		$52,187
Commercial mortgage loans	11,224		11,020		10,832		10,695		10,635
Commercial construction loans	5,548		5,132		5,334		5,267		5,248
Commercial leases	3,056		3,201		3,384		3,563		3,811
Total commercial loans and leases	78,934		71,046		70,530		70,889		71,881
Residential mortgage loans	17,405		18,024		17,853		17,733		17,589
Home equity	5,820		6,006		6,147		6,267		6,376
Indirect secured consumer loans	12,124		11,809		11,281		10,707		10,190
Credit card	2,248		2,498		2,496		2,448		2,408
Other consumer loans	2,887		2,797		2,679		2,622		2,549
Total consumer loans	40,484		41,134		40,456		39,777		39,112
Taxable securities	36,817		35,973		36,255		35,653		35,467
Tax exempt securities	156		162		57		38		40
Other short-term investments	19,833		2,898		2,014		2,497		2,290
Total interest-earning assets	176,224		151,213		149,312		148,854		148,790
Cash and due from banks	3,121		2,880		3,063		2,769		2,931
Other assets	21,394		19,623		18,096		19,077		16,972
Allowance for loan and lease losses	(2,352)		(1,845)		(1,144)		(1,115)		(1,115)
Total Assets	$198,387		$171,871		$169,327		$169,585		$167,578
Liabilities
Interest-bearing liabilities:
Interest checking deposits	$49,760		$40,298		$38,628		$37,729		$36,514
Savings deposits	16,354		14,715		14,274		14,405		14,418
Money market deposits	30,022		27,109		27,429		26,962		25,934
Foreign office deposits	182		209		244		222		163
Other time deposits	4,421		5,081		5,507		5,823		5,678
Total interest-bearing core deposits	100,739		87,412		86,082		85,141		82,707
Certificates $100,000 and over	4,067		3,355		4,072		4,795		5,780
Other deposits	31		257		252		47		40
Federal funds purchased	309		654		1,174		739		1,151
Other short-term borrowings	2,377		1,750		1,133		1,278		1,119
Long-term debt	16,955		15,816		14,860		15,633		15,543
Total interest-bearing liabilities	124,478		109,244		107,573		107,633		106,340
Demand deposits	45,761		35,765		35,710		35,223		35,818
Other liabilities	5,727		5,149		4,740		5,522		5,088
Total Liabilities	175,966		150,158		148,023		148,378		147,246
Total Equity	22,421		21,713		21,304		21,207		20,332
Total Liabilities and Equity	$198,387		$171,871		$169,327		$169,585		$167,578
Yield/Rate Analysis
Interest-earning assets:
Commercial and industrial loans^(a)	3.47	%	4.25	%	4.32	%	4.66	%	4.79	%
Commercial mortgage loans^(a)	3.44	%	4.44	%	4.48	%	4.86	%	5.11	%
Commercial construction loans^(a)	3.53	%	4.82	%	4.88	%	5.39	%	5.71	%
Commercial leases^(a)	3.47	%	3.46	%	3.30	%	3.34	%	3.51	%
Total commercial loans and leases	3.47	%	4.28	%	4.34	%	4.68	%	4.84	%
Residential mortgage loans	3.53	%	3.63	%	3.57	%	3.67	%	3.70	%
Home equity	3.60	%	4.71	%	4.80	%	5.20	%	5.30	%
Indirect secured consumer loans	4.04	%	4.09	%	4.16	%	4.22	%	4.11	%
Credit card	11.28	%	12.13	%	12.37	%	12.57	%	12.38	%
Other consumer loans	6.50	%	7.71	%	7.75	%	7.69	%	7.58	%
Total consumer loans	4.34	%	4.71	%	4.74	%	4.87	%	4.85	%
Total loans and leases	3.76	%	4.44	%	4.49	%	4.75	%	4.84	%
Taxable securities	3.08	%	3.15	%	3.27	%	3.24	%	3.28	%
Tax exempt securities^(a)	2.96	%	3.04	%	4.44	%	3.18	%	3.50	%
Other short-term investments	0.11	%	0.97	%	1.65	%	2.18	%	1.80	%
Total interest-earning assets	3.21	%	4.07	%	4.15	%	4.34	%	4.42	%
Interest-bearing liabilities:
Interest checking deposits	0.24	%	0.75	%	0.88	%	1.12	%	1.17	%
Savings deposits	0.06	%	0.13	%	0.14	%	0.18	%	0.17	%
Money market deposits	0.32	%	0.72	%	0.89	%	1.13	%	1.14	%
Foreign office deposits	0.09	%	0.57	%	0.95	%	0.37	%	0.53	%
Other time deposits	1.21	%	1.56	%	1.75	%	1.79	%	1.84	%
Total interest-bearing core deposits	0.27	%	0.68	%	0.82	%	1.01	%	1.03	%
Certificates $100,000 and over	1.40	%	2.09	%	2.14	%	2.20	%	2.10	%
Other deposits	0.04	%	0.85	%	1.75	%	1.97	%	2.92	%
Federal funds purchased	0.16	%	1.13	%	1.74	%	2.06	%	2.61	%
Other short-term borrowings	0.32	%	1.32	%	1.89	%	2.55	%	3.08	%
Long-term debt	2.80	%	3.12	%	3.22	%	3.26	%	3.39	%
Total interest-bearing liabilities	0.66	%	1.09	%	1.22	%	1.41	%	1.47	%
Ratios:
Net interest margin (FTE)^(b)	2.75	%	3.28	%	3.27	%	3.32	%	3.37	%
Net interest rate spread (FTE)^(b)	2.55	%	2.98	%	2.93	%	2.93	%	2.95	%
Interest-bearing liabilities to interest-earning assets	70.64	%	72.24	%	72.05	%	72.31	%	71.47	%
(a) Presented on an FTE basis.
(b) Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 27.


Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millions	For the Three Months Ended
(unaudited)	June	March	December	September	June
	2020	2020	2019	2019	2019
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans	$59,040	$51,586	$50,938	$51,241	$52,078
Commercial mortgage loans	11,222	11,019	10,831	10,692	10,632
Commercial construction loans	5,548	5,132	5,334	5,267	5,248
Commercial leases	3,056	3,201	3,384	3,562	3,809
Total commercial loans and leases	78,866	70,938	70,487	70,762	71,767
Consumer loans:
Residential mortgage loans	16,561	16,732	16,697	16,736	16,804
Home equity	5,820	6,006	6,147	6,267	6,376
Indirect secured consumer loans	12,124	11,809	11,281	10,707	10,190
Credit card	2,248	2,498	2,496	2,448	2,408
Other consumer loans	2,887	2,796	2,679	2,621	2,550
Total consumer loans	39,640	39,841	39,300	38,779	38,328
Total average portfolio loans and leases	$118,506	$110,779	$109,787	$109,541	$110,095

Average Loans and Leases Held for Sale
Average commercial loans and leases held for sale	$68	$108	$43	$127	$113
Average consumer loans held for sale	844	1,293	1,156	998	785
Average loans and leases held for sale	$912	$1,401	$1,199	$1,125	$898

End of Period Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans	$55,661	$58,250	$50,542	$50,768	$51,104
Commercial mortgage loans	11,233	11,160	10,963	10,822	10,717
Commercial construction loans	5,479	5,462	5,090	5,281	5,264
Commercial leases	3,061	3,123	3,363	3,495	3,677
Total commercial loans and leases	75,434	77,995	69,958	70,366	70,762
Consumer loans:
Residential mortgage loans	16,457	16,701	16,724	16,675	16,777
Home equity	5,681	5,963	6,083	6,218	6,325
Indirect secured consumer loans	12,395	12,050	11,538	11,026	10,403
Credit card	2,211	2,417	2,532	2,467	2,436
Other consumer loans	2,875	2,911	2,723	2,657	2,580
Total consumer loans	39,619	40,042	39,600	39,043	38,521
Total portfolio loans and leases	$115,053	$118,037	$109,558	$109,409	$109,283

End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale	$72	$65	$136	$86	$174
Consumer loans held for sale	840	1,565	1,264	1,137	1,031
Loans and leases held for sale	$912	$1,630	$1,400	$1,223	$1,205

Operating lease equipment	$809	$819	$848	$869	$894

Loans and Leases Serviced for Others^(a)
Commercial and industrial loans	$967	$947	$922	$916	$977
Commercial mortgage loans	592	545	454	446	438
Commercial construction loans	536	462	397	392	323
Commercial leases	582	302	322	345	358
Residential mortgage loans	78,804	81,901	80,734	82,702	84,597
Other consumer loans	50	50	50	50	50
Total loans and leases serviced for others	81,531	84,207	82,879	84,851	86,743
Total loans and leases serviced	$198,305	$204,693	$194,685	$196,352	$198,125
(a) Fifth Third sells certain loans and leases and obtains servicing responsibilities.


Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millions				As of
(unaudited)				June		March		December		September		June
		2020^(a)		2020		2019		2019		2019
Regulatory Capital
CET1 capital				$13,935		$13,840		$13,847		$13,568		$13,532
Additional tier I capital				1,769		1,769		1,769		1,769		1,493
Tier I capital				15,704		15,609		15,616		15,337		15,025
Tier II capital				4,704		4,472		4,045		4,076		4,112
Total regulatory capital				$20,408		$20,081		$19,661		$19,413		$19,137
Risk-weighted assets^(b)				$143,407		$147,756		$142,065		$141,880		$141,421

Ratios
Average total Bancorp shareholders' equity as a percent of average assets				11.30	%	12.63	%	12.58	%	12.43	%	12.02	%

Regulatory Capital Ratios
Fifth Third Bancorp
	CET1 capital^(b)	9.72	%	9.37	%	9.75	%	9.56	%	9.57	%
	Tier I risk-based capital^(b)	10.95	%	10.56	%	10.99	%	10.81	%	10.62	%
	Total risk-based capital^(b)	14.23	%	13.59	%	13.84	%	13.68	%	13.53	%
	Tier I leverage	8.16	%	9.37	%	9.54	%	9.36	%	9.24	%

Fifth Third Bank
	Tier I risk-based capital^(b)	11.75	%	11.36	%	11.86	%	11.79	%	11.67	%
	Total risk-based capital^(b)	13.64	%	13.17	%	13.46	%	13.37	%	13.23	%
	Tier I leverage	8.80	%	10.16	%	10.36	%	10.26	%	10.59	%

(a)Current period regulatory capital data and ratios are estimated.

(b)Under the U.S. 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.


Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millions	For the Three Months Ended
(unaudited)	June		March		December		September		June
	2020		2020		2019		2019		2019
Average portfolio loans and leases:
Commercial and industrial loans	$59,040		$51,586		$50,938		$51,241		$52,078
Commercial mortgage loans	11,222		11,019		10,831		10,692		10,632
Commercial construction loans	5,548		5,132		5,334		5,267		5,248
Commercial leases	3,056		3,201		3,384		3,562		3,809
Total commercial loans and leases	78,866		70,938		70,487		70,762		71,767
Residential mortgage loans	16,561		16,732		16,697		16,736		16,804
Home equity	5,820		6,006		6,147		6,267		6,376
Indirect secured consumer loans	12,124		11,809		11,281		10,707		10,190
Credit card	2,248		2,498		2,496		2,448		2,408
Other consumer loans	2,887		2,796		2,679		2,621		2,550
Total consumer loans	39,640		39,841		39,300		38,779		38,328
Total average portfolio loans and leases	$118,506		$110,779		$109,787		$109,541		$110,095

Losses charged-off:
Commercial and industrial loans	($68)		($54)		($40)		($30)		($30)
Commercial mortgage loans	(2)		(2)		—		—		—
Commercial leases	(11)		(5)		—		(4)		(3)
Total commercial loans and leases	(81)		(61)		(40)		(34)		(33)
Residential mortgage loans	(2)		(2)		(4)		(2)		(1)
Home equity	(3)		(5)		(12)		(5)		(6)
Indirect secured consumer loans	(15)		(21)		(24)		(21)		(15)
Credit card	(40)		(42)		(40)		(38)		(40)
Other consumer loans	(22)		(28)		(32)		(30)		(24)
Total consumer loans	(82)		(98)		(112)		(96)		(86)
Total losses charged-off	($163)		($159)		($152)		($130)		($119)

Recoveries of losses previously charged-off:
Commercial and industrial loans	$3		$4		$4		$1		$10
Commercial mortgage loans	—		—		—		—		—
Commercial leases	—		—		—		—		—
Total commercial loans and leases	3		4		4		1		10
Residential mortgage loans	1		1		1		1		2
Home equity	2		2		3		3		3
Indirect secured consumer loans	8		9		8		8		8
Credit card	6		6		7		5		5
Other consumer loans	13		15		16		13		13
Total consumer loans	30		33		35		30		31
Total recoveries of losses previously charged-off	$33		$37		$39		$31		$41

Net losses charged-off:
Commercial and industrial loans	($65)		($50)		($36)		($29)		($20)
Commercial mortgage loans	(2)		(2)		—		—		—
Commercial leases	(11)		(5)		—		(4)		(3)
Total commercial loans and leases	(78)		(57)		(36)		(33)		(23)
Residential mortgage loans	(1)		(1)		(3)		(1)		1
Home equity	(1)		(3)		(9)		(2)		(3)
Indirect secured consumer loans	(7)		(12)		(16)		(13)		(7)
Credit card	(34)		(36)		(33)		(33)		(35)
Other consumer loans	(9)		(13)		(16)		(17)		(11)
Total consumer loans	(52)		(65)		(77)		(66)		(55)
Total net losses charged-off	($130)		($122)		($113)		($99)		($78)

Net losses charged-off as a percent of average portfolio loans and leases:
Commercial and industrial loans	0.45	%	0.39	%	0.28	%	0.22	%	0.15	%
Commercial mortgage loans	0.07	%	0.06	%	(0.02	%)	(0.01	%)	0.00	%
Commercial leases	1.47	%	0.60	%	0.06	%	0.41	%	0.32	%
Total commercial loans and leases	0.40	%	0.32	%	0.20	%	0.18	%	0.13	%
Residential mortgage loans	0.02	%	0.02	%	0.07	%	0.03	%	(0.02	%)
Home equity	0.07	%	0.17	%	0.59	%	0.16	%	0.18	%
Indirect secured consumer loans	0.24	%	0.43	%	0.56	%	0.50	%	0.30	%
Credit card	6.17	%	5.87	%	5.21	%	5.41	%	5.75	%
Other consumer loans	1.17	%	1.87	%	2.51	%	2.47	%	1.84	%
Total consumer loans	0.52	%	0.66	%	0.78	%	0.68	%	0.59	%
Total net losses charged-off as a percent of average portfolio loans and leases	0.44	%	0.44	%	0.41	%	0.36	%	0.29	%


Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millions	For the Three Months Ended
(unaudited)	June		March		December		September		June
	2020		2020		2019		2019		2019
Allowance for Credit Losses
Allowance for loan and lease losses, beginning	$2,348		$1,202		$1,143		$1,115		$1,115
Impact of CECL adoption	—		643		—		—		—
Total net losses charged-off	(130)		(122)		(113)		(99)		(78)
Provision for loan and lease losses	478		625		172		127		78
Allowance for loan and lease losses, ending	$2,696		$2,348		$1,202		$1,143		$1,115

Reserve for unfunded commitments, beginning	$169		$144		$154		$147		$133
Impact of CECL adoption	—		10		—		—		—
Reserve for acquired commitments	—		—		—		—		7
Provision for (benefit from) the reserve for unfunded commitments	7		15		(10)		7		7
Reserve for unfunded commitments, ending	$176		$169		$144		$154		$147

Components of allowance for credit losses:
Allowance for loan and lease losses	$2,696		$2,348		$1,202		$1,143		$1,115
Reserve for unfunded commitments	176		169		144		154		147
Total allowance for credit losses	$2,872		$2,517		$1,346		$1,297		$1,262

	As of
	June		March		December		September		June
	2020		2020		2019		2019		2019
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
Commercial and industrial loans	$94		$100		$118		$70		$135
Commercial mortgage loans	89		83		21		17		20
Commercial construction loans	—		1		1		—		—
Commercial leases	22		18		26		27		31
Residential mortgage loans	14		12		13		12		11
Home equity	52		54		54		63		61
Indirect secured consumer loans	5		1		1		1		1
Other consumer loans	2		2		2		2		2
Total nonaccrual portfolio loans and leases (excludes restructured loans)	278		271		236		192		261
Nonaccrual restructured portfolio commercial loans and leases	282		243		231		235		204
Nonaccrual restructured portfolio consumer loans and leases	140		133		151		55		56
Total nonaccrual portfolio loans and leases	700		647		618		482		521
Repossessed property	4		10		10		9		8
OREO	43		52		52		28		31
Total nonperforming portfolio loans and leases and OREO	747		709		680		519		560
Nonaccrual loans held for sale	1		—		—		—		4
Nonaccrual restructured loans held for sale	1		1		7		13		23
Total nonperforming assets	$749		$710		$687		$532		$587

Restructured portfolio consumer loans and leases (accrual)	$963		$976		$965		$958		$958
Restructured portfolio commercial loans and leases (accrual)	$119		$63		$23		$34		$32

Loans and leases 90 days past due (accrual):
Commercial and industrial loans	$10		$13		$11		$15		$19
Commercial mortgage loans	23		20		15		18		11
Commercial construction loans	—		—		—		1		1
Commercial leases	—		10		—		1		—
Total commercial loans and leases	33		43		26		35		31
Residential mortgage loans	54		54		50		48		47
Home equity	—		—		1		—		1
Indirect secured consumer loans	12		11		10		10		11
Credit card	36		42		42		38		37
Other consumer loans	1		1		1		1		1
Total consumer loans	103		108		104		97		97
Total loans and leases 90 days past due (accrual)^(b)	$136		$151		$130		$132		$128
Ratios
Net losses charged-off as a percent of average portfolio loans and leases	0.44	%	0.44	%	0.41	%	0.36	%	0.29	%
Allowance for credit losses:
As a percent of portfolio loans and leases	2.50	%	2.13	%	1.23	%	1.19	%	1.15	%
As a percent of nonperforming portfolio loans and leases^(a)	410	%	389	%	218	%	269	%	242	%
As a percent of nonperforming portfolio assets^(a)	385	%	355	%	198	%	250	%	225	%
Nonperforming portfolio loans and leases as a percent of portfolio loans
and leases and OREO^(a)	0.61	%	0.55	%	0.56	%	0.44	%	0.48	%
Nonperforming portfolio assets as a percent of portfolio loans and leases
and OREO^(a)	0.65	%	0.60	%	0.62	%	0.47	%	0.51	%
Nonperforming assets as a percent of total loans and leases, OREO, and
repossessed property	0.65	%	0.59	%	0.62	%	0.48	%	0.53	%
(a) Excludes nonaccrual loans held for sale.
(b) Excludes 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: “net interest income (FTE),” “interest income (FTE),” “net interest margin (FTE),” “net interest rate spread (FTE),” “income before income taxes (FTE),” “tangible net income available to common shareholders,” “average tangible common equity,” “return on average tangible common equity,” “tangible common equity (excluding AOCI),” “tangible common equity (including AOCI),” “tangible equity,” “tangible book value per share,” “adjusted noninterest income,” “adjusted noninterest expense,” “pre-provision net revenue,” “adjusted efficiency ratio,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” “adjusted return on average tangible common equity, excluding accumulated other comprehensive income,” “adjusted net interest margin,” “adjusted pre-provision net revenue,” “adjusted return on average assets,” “efficiency ratio (FTE),” “total revenue (FTE),” and certain ratios derived from these measures. The Bancorp believes these non-GAAP measures provide useful information to investors because these are among the measures used by the Fifth Third management team to evaluate operating performance and to make day-to-day operating decisions.

The FTE 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 and net interest margin as it provides a relevant comparison between taxable and non-taxable amounts.

The Bancorp believes tangible net income available to common shareholders, average tangible common equity, tangible common equity (excluding AOCI), tangible common equity (including AOCI), tangible equity, tangible book value per share and return on average tangible common equity are important measures for evaluating the performance of the business without the impacts of intangible items, whether acquired or created internally, in a manner comparable to other companies in the industry who present similar measures.

The Bancorp believes noninterest income, noninterest expense, net interest income, net interest margin, pre-provision net revenue, efficiency ratio, return on average common equity, return on average tangible common equity, and return on average assets are important measures that adjust for significant, unusual, or large transactions that may occur in a reporting period which management does not consider indicative of ongoing financial performance and enhances comparability of results with prior periods.

Management considers various measures when evaluating capital utilization and adequacy, including the tangible equity and tangible common equity (including and excluding AOCI), in addition to capital ratios defined by U.S. banking agencies. These calculations are intended to complement the capital ratios defined by 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 AOCI on certain assets and liabilities enables investors and others to assess the Bancorp’s use of equity without the effects of changes in AOCI, some of which are uncertain; providing the tangible common equity ratio including AOCI enables investors and others to assess the Bancorp’s use of equity if components of AOCI, such as unrealized gains or losses, were to be monetized.

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 Reg. G reconciliations of all historical non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page.


Fifth Third Bancorp and Subsidiaries
Regulation G Non-GAAP Reconciliation
$ and shares in millions			As of and For the Three Months Ended
(unaudited)			June		March		December		September		June
		2020	2020		2019		2019		2019
Net interest income			$1,200		$1,229		$1,228		$1,242		$1,245
Add: Taxable equivalent adjustment			3		4		4		4		5
Net interest income (FTE) (a)			1,203		1,233		1,232		1,246		1,250

Net interest income (annualized) (b)			4,826		4,943		4,872		4,928		4,994
Net interest income (FTE) (annualized) (c)			4,838		4,959		4,888		4,943		5,014

Net interest income (FTE)			1,203		1,233		1,232		1,246		1,250
Less: Net interest income impact from purchase accounting accretion			15		16		18		28		18
Adjusted net interest income (FTE) (d)			1,188		1,217		1,214		1,218		1,232
Adjusted net interest income (FTE) (annualized) (e)			4,777		4,895		4,816		4,832		4,942

Interest income			1,403		1,525		1,559		1,625		1,636
Add: Taxable equivalent adjustment			3		4		4		4		5
Interest income (FTE)			1,406		1,529		1,563		1,629		1,641
Interest income (FTE) (annualized) (f)			5,655		6,150		6,201		6,463		6,582

Interest expense (annualized) (g)			816		1,191		1,313		1,520		1,568
Average interest-earning assets (h)			176,224		151,213		149,312		148,854		148,790
Average interest-bearing liabilities (i)			124,478		109,244		107,573		107,633		106,340

Net interest margin (b) / (h)			2.74	%	3.27	%	3.26	%	3.31	%	3.36	%
Net interest margin (FTE) (c) / (h)			2.75	%	3.28	%	3.27	%	3.32	%	3.37	%
Adjusted net interest margin (e) / (h)			2.71	%	3.24	%	3.22	%	3.25	%	3.32	%
Net interest rate spread (FTE) (f) / (h) - (g) / (i)			2.55	%	2.98	%	2.93	%	2.93	%	2.95	%

Income before income taxes			$244		$60		$941		$689		$577
Add: Taxable equivalent adjustment			3		4		4		4		5
Income before income taxes (FTE)			$247		$64		$945		$693		$582

Net income available to common shareholders			$163		$29		$701		$530		$427
Add: Intangible amortization, net of tax			9		10		11		11		11
Tangible net income available to common shareholders (j)			172		39		712		541		438
Tangible net income available to common shareholders (annualized) (k)			692		157		2,825		2,146		1,757

Average Bancorp shareholders' equity			22,420		21,713		21,304		21,087		20,135
Less:	Average preferred stock	(1,770)	(1,770)		(1,770)		(1,445)		(1,331)
	Average goodwill	(4,261)	(4,251)		(4,260)		(4,286)		(4,301)
	Average intangible assets	(178)	(193)		(194)		(208)		(215)
Average tangible common equity, including AOCI (l)			16,211		15,499		15,080		15,148		14,288
Less:	Average AOCI	(2,702)	(1,825)		(1,416)		(1,444)		(619)
Average tangible common equity, excluding AOCI (m)			13,509		13,674		13,664		13,704		13,669

Total Bancorp shareholders' equity			22,335		21,873		21,203		21,404		20,474
Less:	Preferred stock	(1,770)	(1,770)		(1,770)		(1,770)		(1,331)
	Goodwill	(4,261)	(4,261)		(4,252)		(4,290)		(4,284)
	Intangible assets	(171)	(184)		(201)		(201)		(215)
Tangible common equity, including AOCI (n)			16,133		15,658		14,980		15,143		14,644
Less:	AOCI	(2,951)	(2,477)		(1,192)		(1,635)		(1,178)
Tangible common equity, excluding AOCI (o)			13,182		13,181		13,788		13,508		13,466
Add:	Preferred stock	1,770	1,770		1,770		1,770		1,331
Tangible equity (p)			14,952		14,951		15,558		15,278		14,797

Total assets			202,906		185,391		169,369		171,079		168,802
Less:	Goodwill	(4,261)	(4,261)		(4,252)		(4,290)		(4,284)
	Intangible assets	(171)	(184)		(201)		(201)		(215)
Tangible assets, including AOCI (q)			198,474		180,946		164,916		166,588		164,303
Less:	AOCI, before tax	(3,735)	(3,135)		(1,509)		(2,070)		(1,491)
Tangible assets, excluding AOCI (r)			$194,739		$177,811		$163,407		$164,518		$162,812

Common shares outstanding (s)			712		711		709		719		731

Tangible equity (p) / (r)			7.68	%	8.41	%	9.52	%	9.29	%	9.09	%
Tangible common equity (excluding AOCI) (o) / (r)			6.77	%	7.41	%	8.44	%	8.21	%	8.27	%
Tangible common equity (including AOCI) (n) / (q)			8.13	%	8.65	%	9.08	%	9.09	%	8.91	%
Tangible book value per share (n) / (s)			$22.66		$22.02		$21.13		$21.06		$20.03


Fifth Third Bancorp and Subsidiaries
Regulation G Non-GAAP Reconciliation
$ in millions			For the Three Months Ended
(unaudited)			June			March			June
		2020			2020			2019
Net income (t)			$195			$46			$453
Net income (annualized) (u)			784			185			1,817

Adjustments (pre-tax items)^(a)
	Valuation of Visa total return swap	29			22			22
	Branch and non-branch real estate charges	12			-			-
	COVID-19-related expenses	12			-			-
	Merger-related expenses	9			7			109
	FHLB debt extinguishment charge	6			-			-
	Unfavorable credit valuation adjustment (CVA)	-			36			-
	Net impairment of private equity investments	-			15			-
Adjustments, after-tax (v)^(a)			52			62			101

Noninterest income (x)			650			671			660
	Valuation of Visa total return swap	29			22			22
	Branch and non-branch real estate charges	12			-			-
	Net impairment of private equity investments	-			15			-
Adjusted noninterest income (y)			691			708			682

Noninterest expense (z)			1,121			1,200			1,243
	COVID-19-related expenses	(12)			-			-
	Merger-related expenses	(9)			(7)			(109)
	FHLB debt extinguishment charge	(6)			-			-
	Unfavorable credit valuation adjustment (CVA)	-			(36)			-
Adjusted noninterest expense (aa)			1,094			1,157			1,134
	Intangible amortization expense	12			13			14
Adjusted noninterest expense excluding intangible amortization expense (ab)			1,082			1,144			1,120

Adjusted net income (t) + (v) + (w)			247			108			554
Adjusted net income (annualized) (ac)			993			434			2,222

Adjusted tangible net income available to common shareholders (j) + (v) + (w)			224			101			539
Adjusted tangible net income available to common shareholders (annualized) (ad)			901			406			2,162

Average assets (ae)			$198,387			$171,871			$167,578

Return on average tangible common equity (k) / (l)			4.3	%		1.0	%		12.3	%
Adjusted return on average tangible common equity, including AOCI (ad) / (l)			5.6	%		2.6	%		15.1	%
Adjusted return on average tangible common equity, excluding AOCI (ad) / (m)			6.7	%		3.0	%		15.8	%

Return on average assets (u) / (ae)			0.40	%		0.11	%		1.08	%
Adjusted return on average assets (ac) / (ae)			0.50	%		0.25	%		1.33	%
Efficiency ratio (z) / [(a) + (x)]			60.5	%		63.0	%		65.1	%
Adjusted efficiency ratio (ab) / [(d) + (y)]			57.6	%		59.4	%		58.5	%
Total revenue (FTE) (a) + (x)			$1,853			$1,904			$1,910
Pre-provision net revenue (PPNR) (a) + (x) - (z)			$732			$704			$667
Adjusted pre-provision net revenue (PPNR) (d) + (y) - (ab)			$797			$781			$794
(a) Assumes a 23% tax rate, except for merger-related expenses impacted by certain non-deductible items.


Fifth Third Bancorp and Subsidiaries
Segment Presentation
$ in millions
(unaudited)

For the three months ended June 30, 2020	Commercial Banking	Branch Banking^(b)	Consumer Lending^(c)	Wealth and Asset Management	Other/ Eliminations	Total

Net interest income (FTE)^(a)	$573	$513	$92	$51	$(26)	$1,203
(Provision for) benefit from credit losses	(457)	(52)	(10)	1	33	(485)
Net interest income after provision for credit losses	116	461	82	52	7	718
Noninterest income	294	167	98	121	(30)	650
Noninterest expense	(405)	(454)	(120)	(122)	(20)	(1,121)
Income (loss) before income taxes	5	174	60	51	(43)	247
Applicable income tax (expense) benefit^(a)	7	(36)	(12)	(11)	—	(52)
Net income (loss)	$12	$138	$48	$40	$(43)	$195

For the three months ended March 31, 2020	Commercial Banking	Branch Banking^(b)	Consumer Lending^(c)	Wealth and Asset Management	Other/ Eliminations	Total

Net interest income (FTE)^(a)	$511	$505	$89	$37	$91	$1,233
Provision for credit losses	(45)	(62)	(13)	(1)	(519)	(640)
Net interest income after provision for credit losses	466	443	76	36	(428)	593
Noninterest income	287	198	124	135	(73)	671
Noninterest expense	(480)	(488)	(122)	(143)	33	(1,200)
Income (loss) before income taxes	273	153	78	28	(468)	64
Applicable income tax (expense) benefit^(a)	(49)	(32)	(17)	(6)	86	(18)
Net income (loss)	$224	$121	$61	$22	$(382)	$46

For the three months ended December 31, 2019	Commercial Banking	Branch Banking^(b)	Consumer Lending^(c)	Wealth and Asset Management	Other/ Eliminations	Total

Net interest income (FTE)^(a)	$603	$569	$91	$41	$(72)	$1,232
Provision for credit losses	(83)	(60)	(15)	—	(4)	(162)
Net interest income after provision for credit losses	520	509	76	41	(76)	1,070
Noninterest income	324	214	74	129	294	1,035
Noninterest expense	(422)	(485)	(123)	(131)	1	(1,160)
Income before income taxes	422	238	27	39	219	945
Applicable income tax expense^(a)	(81)	(50)	(6)	(8)	(66)	(211)
Net income	$341	$188	$21	$31	$153	$734

For the three months ended September 30, 2019	Commercial Banking	Branch Banking^(b)	Consumer Lending^(c)	Wealth and Asset Management	Other/ Eliminations	Total

Net interest income (FTE)^(a)	$627	$598	$88	$44	$(111)	$1,246
Provision for credit losses	(54)	(58)	(14)	—	(8)	(134)
Net interest income after provision for credit losses	573	540	74	44	(119)	1,112
Noninterest income	335	204	96	125	(20)	740
Noninterest expense	(425)	(469)	(114)	(129)	(22)	(1,159)
Income (loss) before income taxes	483	275	56	40	(161)	693
Applicable income tax (expense) benefit^(a)	(90)	(58)	(12)	(8)	24	(144)
Net income (loss)	$393	$217	$44	$32	$(137)	$549

For the three months ended June 30, 2019	Commercial Banking	Branch Banking^(b)	Consumer Lending^(c)	Wealth and Asset Management	Other/ Eliminations	Total

Net interest income (FTE)^(a)	$634	$620	$83	$48	$(135)	$1,250
(Provision for) benefit from credit losses	(25)	(55)	(7)	—	2	(85)
Net interest income after provision for credit losses	609	565	76	48	(133)	1,165
Noninterest income	301	202	67	118	(28)	660
Noninterest expense	(420)	(467)	(118)	(135)	(103)	(1,243)
Income (loss) before income taxes	490	300	25	31	(264)	582
Applicable income tax (expense) benefit^(a)	(95)	(63)	(5)	(7)	41	(129)
Net income (loss)	$395	$237	$20	$24	$(223)	$453
(a) Includes taxable equivalent adjustments of $3 million, $4 million, $4 million, $4 million and $5 million for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, respectively.
(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.

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