EX-99.1 2 q32021earningsrelease.htm EX-99.1 Document

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Fifth Third Announces Third Quarter 2021 Results
Reported diluted earnings per share of $0.97
Reported results included a positive $0.03 impact from certain items on page 2
Key Financial DataKey Highlights
$ millions for all balance sheet and income statement items
3Q21
2Q21
3Q20
       Select Business Highlights:
•Closed acquisition of Provide, a leading fintech company serving healthcare practices
•Finalized HSA deposit sale, generating a pre-tax gain of $60 million (noninterest income)
•Made $15 million pre-tax contribution to accelerate racial equality, equity and inclusion in our communities
•Generated consumer household growth of 3% vs. 3Q20
•Commercial loan production increased 5% compared to 2Q21; strongest production quarter since 4Q19
      Select Financial Highlights:
•ROTCE(a) of 16.9%; adjusted ROTCE(a) of 18.7% excl. AOCI
•PPNR(a) increased 17% and adjusted PPNR(a) increased 4% compared to 3Q20
•Period-end C&I loan growth of 1% (or 4% excl. impact of PPP loans) compared to 2Q21
•Historically low NCO ratio of 0.08% reflecting improvements in both commercial and consumer
•Repurchased shares totaling $550 million; capital plans support repurchase of shares totaling approximately $300 million in 4Q21; continue to target 9.5% CET1 by June 2022



Income Statement Data
Net income available to common shareholders$684$674$562
Net interest income (U.S. GAAP)1,1891,2081,170
Net interest income (FTE)(a)
1,1921,2111,173
Noninterest income836741722
Noninterest expense1,1721,1531,161
Per Share Data
Earnings per share, basic$0.98$0.95$0.78
Earnings per share, diluted0.970.940.78
Book value per share29.5929.5729.25
Tangible book value per share(a)
22.7923.3423.06
Balance Sheet & Credit Quality
Average portfolio loans and leases$107,970$108,534$113,362
Average deposits162,647162,619155,911
Net charge-off ratio(b)
0.08%0.16%0.35%
Nonperforming asset ratio(c)
0.520.610.84
Financial Ratios
Return on average assets1.36%1.38%1.14%
Return on average common equity13.013.010.7
Return on average tangible common equity(a)
16.916.613.8
CET1 capital(d)(e)
9.8510.3710.14
Net interest margin(a)
2.592.632.58
Efficiency(a)
57.859.161.3
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
"Fifth Third has continued to deliver strong and steady financial results throughout the pandemic while fully supporting our customers, communities, and employees. Our performance this quarter once again reflected strong business outcomes across our franchise, resulting in improved and diversified revenues. This was combined with disciplined balance sheet management, expense management, and yet another quarter of benign credit results. As a result of our continued momentum, we generated positive operating leverage on a year-over-year basis.
Excluding the impact of the Paycheck Protection Program (PPP), loan growth this quarter reflected robust production, with even better growth on an end-of-period basis. We expect this positive momentum to carry forward in the fourth quarter and beyond.
I am very proud that, in addition to producing strong financial results, we have also continued to take deliberate actions to improve the lives of our customers and the well-being of our communities. We made a $15 million contribution in the third quarter to accelerate racial equality, equity and inclusion in our communities.
We closed two transactions during the third quarter to improve growth and profitability. The acquisition of Provide – a leading fintech company serving healthcare practices – will further accelerate profitable relationship growth. Additionally, we finalized the sale of HSA deposits as part of our multi-year strategy to simplify the organization and prioritize investments in order to generate differentiated outcomes for customers and shareholders. We continue to focus on growing strong relationships and managing the balance sheet with a through-the-cycle perspective in order to generate sustainable long-term value."
         -Greg D. Carmichael, Chairman and CEO
Investor contact: Chris Doll (513) 534-2345 | Media contact: Ed Loyd (513) 534-6397 October 19, 2021

        
Income Statement Highlights
($ in millions, except per share data)For the Three Months Ended% Change
SeptemberJuneSeptember
202120212020SeqYr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,192$1,211$1,173(2)%2%
Benefit from credit losses(42)(115)(15)(63)%180%
Noninterest income83674172213%16%
Noninterest expense1,1721,1531,1612%1%
Income before income taxes(a)
$898$914$749(2)%20%
Taxable equivalent adjustment$3$3$3——
Applicable income tax expense191202165(5)%16%
Net income$704$709$581(1)%21%
Dividends on preferred stock203519(43)%5%
Net income available to common shareholders$684$674$5621%22%
Earnings per share, diluted$0.97$0.94$0.783%24%
Fifth Third Bancorp (NASDAQ®: FITB) today reported third quarter 2021 net income of $704 million compared to net income of $709 million in the prior quarter and $581 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $684 million, or $0.97 per diluted share, compared to $674 million, or $0.94 per diluted share, in the prior quarter and $562 million, or $0.78 per diluted share, in the year-ago quarter.

Diluted earnings per share impact of certain items - 3Q21
(after-tax impacts(f); $ in millions, except per share data)
Valuation of Visa total return swap (noninterest income)$(13)
Fifth Third Foundation contribution expense(12)
HSA disposition gain (noninterest income)46
After-tax impact(f) of certain items
$21
Diluted earnings per share impact of certain items1
$0.03
1Diluted earnings per share impact reflects 706.090 million average diluted shares outstanding






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Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended% Change
SeptemberJuneSeptember
202120212020SeqYr/Yr
Interest Income
Interest income$1,295 $1,326 $1,332 (2)%(3)%
Interest expense103115159(10)%(35)%
Net interest income (NII)$1,192 $1,211 $1,173 (2)%2%
Average Yield/Rate Analysisbps Change
Yield on interest-earning assets2.81 %2.88 %2.93 %(7)(12)
Rate paid on interest-bearing liabilities0.36 %0.40 %0.51 %(4)(15)
Ratios
Net interest rate spread2.45 %2.48 %2.42 %(3)3
Net interest margin (NIM)2.59 %2.63 %2.58 %(4)1
Compared to the prior quarter, NII decreased $19 million, or 2%, primarily due to lower PPP-related income, lower yields on commercial loan balances (excluding PPP), and a reduction in prepayment penalties received in the investment portfolio, partially offset by higher day count and reductions in long-term debt. PPP-related interest income was $47 million compared to $53 million in the prior quarter. Compared to the prior quarter, NIM decreased 4 bps, primarily due to lower yields on commercial loan balances (excluding PPP), a reduction in prepayment penalties received in the investment portfolio, and higher day count, partially offset by reductions in long-term debt. Underlying NIM(g) decreased 9 bps sequentially. Excess liquidity and PPP had a negative impact on reported NIM of approximately 44 bps in the current quarter, compared to 49 bps in the prior quarter.
Compared to the year-ago quarter, NII increased $19 million, or 2%, primarily reflecting the benefit of GNMA forbearance loan buyout purchases, lower deposit costs, a reduction in long-term debt, and higher interest income from PPP loans, partially offset by lower C&I, home equity, and credit card balances and the impact of lower market rates. Compared to the year-ago quarter, reported NIM increased 1 bp, primarily reflecting lower deposit costs, PPP-related income, and a reduction in long-term debt, partially offset by lower market rates, loan spread compression, and the impact of excess liquidity.
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Noninterest Income
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202120212020SeqYr/Yr
Noninterest Income
Service charges on deposits$152$149$1442%6%
Commercial banking revenue152160125(5)%22%
Mortgage banking net revenue86647634%13%
Wealth and asset management revenue1471451321%11%
Card and processing revenue10210292—11%
Leasing business revenue78617728%1%
Other noninterest income1204926145%362%
Securities (losses) gains, net(1)1051NMNM
Securities (losses) gains, net - non-qualifying hedges
   on mortgage servicing rights—1(1)(100)%(100)%
Total noninterest income$836$741$72213%16%
Reported noninterest income increased $95 million, or 13%, from the prior quarter, and increased $114 million, or 16%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including securities gains and losses.
Noninterest Income excluding certain items
($ in millions)For the Three Months Ended
SeptemberJuneSeptember
202120212020
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)$836 $741 $722 
Valuation of Visa total return swap173722
HSA disposition gain(60)——
Branch and non-branch real estate charges——10
Securities losses/(gains), net1(10)(51)
Noninterest income excluding certain items(a)
$794 $768 $703 
Compared to the prior quarter, noninterest income excluding certain items increased $26 million, or 3%. Compared to the year-ago quarter, noninterest income excluding certain items increased $91 million, or 13%.
Compared to the prior quarter, service charges on deposits increased $3 million, or 2%, reflecting an increase in both commercial and consumer deposit fees. Commercial banking revenue decreased $8 million, or 5%, primarily driven by lower financial risk management revenue and corporate bond fees, partially offset by an increase in M&A advisory revenue. Mortgage banking net revenue increased $22 million, or 34%, reflecting an incremental $12 million favorable impact from MSR net valuation adjustments and a $9 million decrease in MSR asset decay reflecting slower prepayment speeds. This was partially offset by a $3 million decrease in origination fees and gains on loan sales. Current quarter mortgage originations of $5.0 billion were flat compared to the prior quarter. Wealth and asset management revenue increased $2 million, or 1%, driven primarily by higher personal asset management revenue. Leasing business revenue increased $17 million, or 28%, primarily driven by an increase in business solutions revenue and lease syndication revenue.
Compared to the year-ago quarter, service charges on deposits increased $8 million, or 6%, reflecting an increase in both commercial treasury management and consumer deposit fees. Commercial banking revenue increased $27 million, or 22%, primarily driven by increases in loan syndication revenue and M&A advisory revenue, partially offset by lower corporate bond fees. Mortgage banking net revenue increased $10 million, or 13%, reflecting an incremental $17 million
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favorable impact from MSR net valuation adjustments and an $11 million decrease in MSR asset decay reflecting slower prepayment speeds. This was partially offset by a $15 million decrease in origination fees and gains on loan sales. Wealth and asset management revenue increased $15 million, or 11%, primarily driven by higher personal asset management revenue and brokerage fees. Card and processing revenue increased $10 million, or 11%, primarily driven by higher spend volumes, partially offset by higher rewards. Leasing business revenue increased $1 million, or 1%, primarily reflecting increases in lease syndication revenue. Other noninterest income excluding certain items increased $19 million, primarily reflecting higher private equity income in the current quarter compared to the year-ago quarter.
Noninterest Expense
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202120212020SeqYr/Yr
Noninterest Expense
Compensation and benefits$627 $638 $637 (2)%(2)%
Net occupancy expense7977903%(12)%
Technology and communications9894894%10%
Equipment expense343433—3%
Card and processing expense192029(5)%(34)%
Leasing business expense333335—(6)%
Marketing expense29202345%26%
Other noninterest expense2532372257%12%
Total noninterest expense$1,172 $1,153 $1,161 2%1%
Reported noninterest expense increased $19 million, or 2%, from the prior quarter, and increased $11 million, or 1%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
Noninterest Expense excluding certain items
($ in millions)For the Three Months Ended
SeptemberJuneSeptember
202120212020
Noninterest Expense excluding certain items
Noninterest expense (U.S. GAAP)$1,172 $1,153 $1,161 
Fifth Third Foundation contribution(15)——
Restructuring severance expense——(19)
Branch and non-branch real estate charges——(9)
Noninterest expense excluding certain items(a)
$1,157 $1,153 $1,133 

Compared to the prior quarter, noninterest expense excluding certain items increased $4 million, primarily reflecting an increase in marketing expense associated with Fifth Third Momentum Banking, and an increase in travel and entertainment expense. This was partially offset by a decrease in compensation and benefits expense, primarily reflecting a decline in full-time equivalent employees compared to the prior quarter.
Compared to the year-ago quarter, noninterest expense excluding certain items increased $24 million, or 2%, primarily driven by an increase in performance-based compensation expense reflecting strong business results, expenses associated with the aforementioned GNMA forbearance loan buyout purchases, and an increase in travel and entertainment expense. This was partially offset by lower card and processing expense due to contract renegotiations and lower net occupancy expense. Full-time equivalent employees declined 5% compared to the year-ago quarter.
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Average Interest-Earning Assets
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202120212020SeqYr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans$47,766 $48,773 $54,004 (2)%(12)%
Commercial mortgage loans10,31710,45911,069(1)%(7)%
Commercial construction loans5,7286,0435,534(5)%4%
Commercial leases3,1583,1742,966(1)%6%
Total commercial loans and leases$66,969$68,449$73,573(2)%(9)%
Consumer loans:
Residential mortgage loans$16,223$15,883$16,6182%(2)%
Home equity4,4094,6745,581(6)%(21)%
Indirect secured consumer loans15,59014,70212,5996%24%
Credit card1,7481,7702,134(1)%(18)%
Other consumer loans3,0313,0562,857(1)%6%
Total consumer loans$41,001$40,085$39,7892%3%
Total average portfolio loans and leases$107,970 $108,534 $113,362 (1)%(5)%
Memo:
Average PPP loans$3,071$4,810$5,216(36)%(41)%
Average portfolio commercial and industrial loans - excl. PPP loans$44,695$43,963$48,7882%(8)%
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$31$52$55(40)%(44)%
Consumer loans held for sale5,5275,8571,196(6)%362%
Total average loans and leases held for sale$5,558$5,909$1,251(6)%344%
Securities (taxable and tax-exempt)$37,208$36,917$36,3001%3%
Other short-term investments32,06533,55829,791(4)%8%
Total average interest-earning assets$182,801$184,918$180,704(1)%1%
Compared to the prior quarter, total average portfolio loans and leases decreased 1%, as a decline in commercial loan and lease balances (primarily due to PPP balance declines) was partially offset by an increase in consumer loans. Average commercial portfolio loans and leases decreased 2%, as a decline in PPP balances was partially offset by growth in C&I loans (excluding PPP). Average consumer portfolio loans increased 2%, as higher indirect secured consumer loans and residential mortgage loans were partially offset by lower home equity balances.
Compared to the year-ago quarter, total average portfolio loans and leases decreased 5%, as lower commercial loan and lease balances were partially offset by an increase in consumer loans. Average commercial portfolio loans and leases decreased 9% due to declines in C&I revolving line of credit utilization and term loan balances, PPP forgiveness, and lower commercial mortgage loans. Average consumer portfolio loans increased 3%, as higher indirect secured consumer loans were partially offset by lower home equity, residential mortgage, and credit card balances.
Average loans and leases held for sale were $6 billion in the current quarter compared to $6 billion in the prior quarter and $1 billion in the year-ago quarter. The increase from the year-ago quarter was primarily attributable to the aforementioned GNMA forbearance loan buyout purchases within consumer loans held for sale (approximately $4.0 billion purchased since December 2020, including $0.3 billion in September 2021).
Average securities (taxable and tax-exempt) of $37 billion in the current quarter increased $0.3 billion, or 1%, compared to the prior quarter and increased $1 billion, or 3%, compared to the year-ago quarter.
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Average other short-term investments (including interest-bearing cash) of $32 billion in the current quarter decreased $1 billion, or 4%, compared to the prior quarter and increased $2 billion, or 8%, compared to the year-ago quarter.

Total period-end commercial portfolio loans and leases of $67 billion were flat compared to the prior quarter, as PPP forgiveness and lower construction loan balances were offset by an increase in C&I loan balances (excluding PPP). Compared to the year-ago quarter, total period-end commercial portfolio loans decreased $5 billion, or 6%, reflecting PPP forgiveness, lower C&I revolving line of credit utilization and term loan balances as well as lower commercial mortgage loans. Period-end commercial revolving line utilization was flat compared to the prior quarter at 31%, down from 33% in the year-ago quarter.

Period-end consumer portfolio loans of $41 billion increased 1% compared to the prior quarter, as continued growth in indirect secured consumer loans was partially offset by a decline in home equity balances. Compared to the year-ago quarter, total period-end consumer portfolio loans increased $2 billion, or 4%, reflecting higher indirect secured consumer loan balances, partially offset by lower home equity balances.

Average Deposits
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202120212020SeqYr/Yr
Average Deposits
Demand$62,626 $61,994 $50,414 1%24%
Interest checking45,12845,30749,800—(9)%
Savings20,94120,49417,0132%23%
Money market30,51430,84431,151(1)%(2)%
Foreign office(h)
19514018939%3%
Total transaction deposits$159,404$158,779$148,567—7%
Other time2,3832,6963,711(12)%(36)%
Total core deposits$161,787$161,475$152,278—6%
Certificates - $100,000 and over8601,1443,633(25)%(76)%
Total average deposits$162,647 $162,619 $155,911 —4%
Compared to the prior quarter, average core deposits were flat, as increases in demand and savings deposit balances were offset by decreases in money market deposit balances and other time deposit balances. The HSA deposit sale was finalized near the end of the third quarter, and consisted of approximately $360 million in average interest checking balances for the third quarter of 2021. Average demand deposits represented 39% of total core deposits in the current quarter compared to 38% in the prior quarter. Average commercial transaction deposits were flat and average consumer transaction deposits increased 1%.
Compared to the year-ago quarter, average core deposits increased 6%, driven by the impacts of fiscal and monetary stimulus combined with success in generating consumer household growth. Average commercial transaction deposits increased 2% and average consumer transaction deposits increased 14%.
The period end portfolio loan-to-core deposit ratio was 66% in the current quarter, compared to 67% in the prior quarter and 72% in the year-ago quarter. Excluding the impact of PPP loans, the period end portfolio loan-to-core deposit ratio was 64% in the current quarter, compared to 64% in the prior quarter and 69% in the year-ago quarter.
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Average Wholesale Funding
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202120212020SeqYr/Yr
Average Wholesale Funding
Certificates - $100,000 and over$860 $1,144 $3,633 (25)%(76)%
Federal funds purchased3483462731%27%
Other short-term borrowings1,1221,0971,6262%(31)%
Long-term debt12,05713,88316,230(13)%(26)%
Total average wholesale funding$14,387$16,470$21,762(13)%(34)%
Compared to the prior quarter, average wholesale funding decreased 13%, reflecting the impact of reductions in long-term debt over the past two quarters (including the retirement of $850 million in long-term debt in September 2021), as well as continued runoff in jumbo CD balances. Compared to the year-ago quarter, average wholesale funding decreased 34%, reflecting decreases in long-term debt, jumbo CD balances, and other short-term borrowings.
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Credit Quality Summary
($ in millions)As of and For the Three Months Ended
SeptemberJuneMarchDecemberSeptember
20212021202120202020
Total nonaccrual portfolio loans and leases (NPLs)$528$621$741$834$891
Repossessed property45797
OREO2731352133
Total nonperforming portfolio loans and leases and OREO (NPAs)$559$657$783$864$931
NPL ratio(i)
0.49 %0.58 %0.68 %0.77 %0.80 %
NPA ratio(c)
0.52 %0.61 %0.72 %0.79 %0.84 %
Total loans and leases 30-89 days past due (accrual)$267$281$305$357$323
Total loans and leases 90 days past due (accrual)9283124163139
Allowance for loan and lease losses (ALLL), beginning$2,033 $2,208 $2,453 $2,574 $2,696 
Total net losses charged-off(21)(44)(71)(118)(101)
Benefit from loan and lease losses(58)(131)(174)(3)(21)
ALLL, ending$1,954$2,033$2,208$2,453$2,574
Reserve for unfunded commitments, beginning$189$173$172$182$176
Provision for (benefit from) the reserve for unfunded commitments16161(10)6
Reserve for unfunded commitments, ending$205$189$173$172$182
Total allowance for credit losses (ACL)$2,159 $2,222 $2,381 $2,625 $2,756 
ACL ratios:
As a % of portfolio loans and leases2.00 % 2.06 % 2.19 % 2.41 % 2.49 % 
As a % of nonperforming portfolio loans and leases409 % 358 % 321 % 315 % 309 % 
As a % of nonperforming portfolio assets386 % 338 % 304 % 304 % 296 % 
ALLL as a % of portfolio loans and leases1.81 %1.89 %2.03 %2.25 %2.32 %
Total losses charged-off$(56)$(103)$(109)$(154)$(135)
Total recoveries of losses previously charged-off3559383634
Total net losses charged-off$(21)$(44)$(71)$(118)$(101)
Net charge-off ratio (NCO ratio)(b)
0.08 %0.16 %0.27 %0.43 %0.35 %
Commercial NCO ratio0.03 %0.10 %0.17 %0.40 %0.33 %
Consumer NCO ratio0.16 %0.26 %0.43 %0.47 %0.40 %
Nonperforming portfolio loans and leases were $528 million in the current quarter, with the resulting NPL ratio of 0.49%. Compared to the prior quarter, NPLs decreased $93 million with the NPL ratio decreasing 9 bps. Compared to the year-ago quarter, NPLs decreased $363 million with the NPL ratio decreasing 31 bps.
Nonperforming portfolio assets were $559 million in the current quarter, with the resulting NPA ratio of 0.52%. Compared to the prior quarter, NPAs decreased $98 million with the NPA ratio decreasing 9 bps. Compared to the year-ago quarter, NPAs decreased $372 million with the NPA ratio decreasing 32 bps.
The benefit from credit losses totaled $42 million in the current quarter. The allowance for credit loss ratio represented 2.00% of total portfolio loans and leases in the current quarter, compared with 2.06% in the prior quarter and 2.49% in the year-ago quarter. In the current quarter, the allowance for credit losses represented 409% of nonperforming portfolio loans
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and leases and 386% of nonperforming portfolio assets. The allowance for loan and lease losses ratio represented 1.81% of total portfolio loans and leases in the current quarter.
Net charge-offs were $21 million in the current quarter, with the resulting NCO ratio of 0.08%. Compared to the prior quarter, net charge-offs decreased $23 million and the NCO ratio decreased 8 bps, reflecting improvement in both commercial and consumer portfolios. Compared to the year-ago quarter, net charge-offs decreased $80 million and the NCO ratio decreased 27 bps.

Capital Position
As of and For the Three Months Ended
SeptemberJuneMarchDecemberSeptember
20212021202120202020
Capital Position
Average total Bancorp shareholders' equity as a % of average assets11.16 %11.11 %11.26%11.34%11.33 %
Tangible equity(a)
8.06 %8.35 %8.20%8.18%8.09 %
Tangible common equity (excluding AOCI)(a)
7.01 %7.28 %7.14%7.11%6.99 %
Tangible common equity (including AOCI)(a)
7.74 %8.18 %7.95%8.29%8.31 %
Regulatory Capital Ratios(d)(e)
CET1 capital
9.85 %10.37 %10.46%10.34%10.14 %
Tier I risk-based capital
11.27 %11.83 %11.94%11.83%11.64 %
Total risk-based capital
13.92 %14.60 %14.80%15.08%14.93 %
Tier I leverage8.35 %8.55 %8.61%8.49%8.37 %
Capital ratios remained strong this quarter. The CET1 capital ratio was 9.85%, the tangible common equity to tangible assets ratio was 7.01% excluding AOCI, and 7.74% including AOCI. The Tier I risk-based capital ratio was 11.27%, the Total risk-based capital ratio was 13.92%, and the Tier I leverage ratio was 8.35%. Certain capital ratios, including the Tier I leverage ratio, continued to be impacted by the increase in assets since the onset of the pandemic, predominantly from 0% risk-weighted assets resulting from interest-bearing cash as well as PPP loans.
During the third quarter of 2021, Fifth Third repurchased approximately $550 million of its outstanding stock, which reduced common shares by approximately 14.5 million at quarter end. Fifth Third also increased its quarterly cash dividend on its common shares $0.03, or 11%, to $0.30 per share for the third quarter of 2021.

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Tax Rate
The effective tax rate was 21.3% compared with 22.1% in the prior quarter and 22.1% in the year-ago quarter.
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, which will be available for 30 days.
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 September 30, 2021, the Company had $208 billion in assets and operates 1,100 full-service Banking Centers, and 2,336 Fifth Third branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 52,000 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 September 30, 2021, had $541 billion in assets under care, of which it managed $61 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 reconciliation beginning on page 27.
(b)Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis.
(c)Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.
(d)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(e)Current period regulatory capital ratios are estimated.
(f)Assumes a 23% tax rate.
(g)Third quarter 2021 underlying NIM calculated by reducing average interest-earning assets approximately $29.6 billion resulting from excess cash compared to normalized levels (average other short term investments less a $2.5 billion normalized level) and approximately $3.1 billion from average PPP balances (with a corresponding reduction to net interest income of approximately $47 million), resulting in an underlying NIM of approximately 3.03%; Second quarter 2021 underlying NIM calculated by reducing average interest-earning assets approximately $31.1 billion resulting from excess cash compared to normalized levels (average other short term investments less a $2.5 billion normalized level) and approximately $4.8 billion from average PPP balances (with a corresponding reduction to net interest income of approximately $53 million), resulting in an underlying NIM of approximately 3.12%.
(h)Includes commercial customer Eurodollar sweep balances for which the Bank pays rates comparable to other commercial deposit accounts.
(i)Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO.



11


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. All statements other than statements of historical fact are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions 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, misappropriation 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) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (36) potential dilution from future acquisitions; (37) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (38) results of investments or acquired entities; (39) changes in accounting standards or interpretation or declines in the value of Fifth Third’s goodwill or other intangible assets; (40) inaccuracies or other failures from the use of models; (41) effects of critical accounting policies and judgments or the use of inaccurate estimates; (42) weather-related events, other natural disasters, or health emergencies (including pandemics); (43) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity; and (44) changes in law or requirements imposed by Fifth Third’s regulators impacting our capital actions, including dividend payments and stock repurchases.

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. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.
# # #


12

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Quarterly Financial Review for September 30, 2021

Table of Contents


Financial Highlights14-15
Consolidated Statements of Income16-17
Consolidated Balance Sheets18-19
Consolidated Statements of Changes in Equity20
Average Balance Sheet and Yield Analysis21-22
Summary of Loans and Leases23
Regulatory Capital24
Summary of Credit Loss Experience25
Asset Quality26
Non-GAAP Reconciliation27-29
Segment Presentation30


13

Fifth Third Bancorp and Subsidiaries
Financial Highlights% / bps% / bps
$ in millions, except per share dataFor the Three Months EndedChangeYear to DateChange
(unaudited)SeptemberJuneSeptemberSeptemberSeptember
202120212020SeqYr/Yr20212020Yr/Yr
Income Statement Data
Net interest income$1,189$1,208$1,170(2%)2%$3,574$3,600(1%)
Net interest income (FTE)(a)
1,1921,2111,173(2%)2%3,5833,610(1%)
Noninterest income83674172213%16%2,3262,04314%
Total revenue (FTE)(a)
2,0281,9521,8954%7%5,9095,6535%
(Benefit from) provision for credit losses(42)(115)(15)(63%)180%(330)1,110NM
Noninterest expense1,1721,1531,1612%1%3,5413,4822%
Net income704709581(1%)21%2,107823156%
Net income available to common shareholders6846745621%22%2,032754169%
Earnings Per Share Data
Net income allocated to common shareholders$683$673$5601%22%$2,027$751170%
Average common shares outstanding (in thousands):
Basic697,457708,833715,102(2%)(2%)706,846714,477(1%)
Diluted706,090718,085718,894(2%)(2%)715,803718,943—
Earnings per share, basic$0.98$0.95$0.783%26%$2.87$1.05173%
Earnings per share, diluted0.970.940.783%24%2.831.04172%
Common Share Data
Cash dividends per common share$0.30$0.27$0.2711%11%$0.84$0.814%
Book value per share29.5929.5729.25—1%29.5929.251%
Market value per share42.4438.2321.3211%99%42.4421.3299%
Common shares outstanding (in thousands)689,790703,740712,328(2%)(3%)689,790712,328(3%)
Market capitalization$29,275$26,904$15,1879%93%$29,275$15,18793%
Financial Ratios
Return on average assets1.36 %1.38 %1.14 %(2)221.37 %0.58 %79
Return on average common equity13.0 %13.0 %10.7 %—23013.1 %4.9 %820
Return on average tangible common equity(a)
16.9 %16.6 %13.8 %3031016.8 %6.5 %NM
Noninterest income as a percent of total revenue(a)
41 %38 %38 %30030039 %36 %300
Dividend payout30.6 %28.4 %34.6 %220(620)29.3 %77.1 %NM
Average total Bancorp shareholders' equity as a percent of average assets11.16 %11.11 %11.33 %5(17)11.18 %11.71 %(53)
Tangible common equity(a)
7.01 %7.28 %6.99 %(27)27.01 %6.99 %2
Net interest margin (FTE)(a)
2.59 %2.63 %2.58 %(4)12.61 %2.85 %(24)
Efficiency (FTE)(a)
57.8 %59.1 %61.3 %(130)(350)59.9 %61.6 %(170)
Effective tax rate21.3 %22.1 %22.1 %(80)(80)21.6 %21.6 %—
Credit Quality
Net losses charged-off$21$44$101(52 %)(79 %)$136$353(61 %)
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.08 %0.16 %0.35 %(8)(27)0.17 %0.41 %(24)
ALLL as a percent of portfolio loans and leases1.81 %1.89 %2.32 %(8)(51)1.81 %2.32 %(51)
ACL as a percent of portfolio loans and leases(g)
2.00 %2.06 %2.49 %(6)(49)2.00 %2.49 %(49)
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.52 %0.61 %0.84 %(9)(32)0.52 %0.84 %(32)
Average Balances
Loans and leases, including held for sale$113,528$114,443$114,613(1%)(1%)$113,890$115,401(1%)
Securities and other short-term investments69,27370,47566,091(2%)5%69,58954,02129%
Assets205,449206,353202,533—1%205,219190,9737%
Transaction deposits(b)
159,404158,779148,567—7%157,361136,29315%
Core deposits(c)
161,787161,475152,278—6%160,067140,69514%
Wholesale funding(d)
14,38716,47021,762(13%)(34%)16,40022,441(27%)
Bancorp shareholders' equity22,92722,92722,952——22,93522,3643%
Regulatory Capital Ratios(e)(f)
CET1 capital
9.85 %10.37 %10.14 %(52)(29)9.85 %10.14 %(29)
Tier I risk-based capital
11.27 %11.83 %11.64 %(56)(37)11.27 %11.64 %(37)
Total risk-based capital
13.92 %14.60 %14.93 %(68)(101)13.92 %14.93 %(101)
Tier I leverage8.35 %8.55 %8.37 %(20)(2)8.35 %8.37 %(2)
Operations
Banking centers1,1001,0961,122—(2%)1,1001,122(2%)
ATMs2,3362,3692,414(1%)(3%)2,3362,414(3%)
Full-time equivalent employees19,17119,40220,283(1%)(5%)19,17120,283(5%)
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures 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)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.

14

Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share dataFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20212021202120202020
Income Statement Data
Net interest income$1,189$1,208$1,176$1,182$1,170
Net interest income (FTE)(a)
1,1921,2111,1791,1851,173
Noninterest income836741749787722
Total revenue (FTE)(a)
2,0281,9521,9281,9721,895
Benefit from credit losses(42)(115)(173)(13)(15)
Noninterest expense1,1721,1531,2151,2361,161
Net income704709694604581
Net income available to common shareholders684674674569562
Earnings Per Share Data
Net income allocated to common shareholders$683$673$672$567$560
Average common shares outstanding (in thousands):
Basic697,457708,833714,433715,482715,102
Diluted706,090718,085723,425722,096718,894
Earnings per share, basic$0.98$0.95$0.94$0.79$0.78
Earnings per share, diluted0.970.940.930.780.78
Common Share Data
Cash dividends per common share$0.30$0.27$0.27$0.27$0.27
Book value per share29.5929.5728.7829.4629.25
Market value per share42.4438.2337.4527.5721.32
Common shares outstanding (in thousands)689,790703,740711,596712,760712,328
Market capitalization$29,275$26,904$26,649$19,651$15,187
Financial Ratios
Return on average assets1.36 %1.38 %1.38 %1.18 %1.14 %
Return on average common equity13.0 %13.0 %13.1 %10.8 %10.7 %
Return on average tangible common equity(a)
16.9 %16.6 %16.8 %13.9 %13.8 %
Noninterest income as a percent of total revenue(a)
41 %38 %39 %40 %38 %
Dividend payout30.6 %28.4 %28.7 %34.2 %34.6 %
Average total Bancorp shareholders' equity as a percent of average assets11.16 %11.11 %11.26 %11.34 %11.33 %
Tangible common equity(a)
7.01 %7.28 %7.14 %7.11 %6.99 %
Net interest margin (FTE)(a)
2.59 %2.63 %2.62 %2.58 %2.58 %
Efficiency (FTE)(a)
57.8 %59.1 %63.0 %62.7 %61.3 %
Effective tax rate21.3 %22.1 %21.4 %19.1 %22.1 %
Credit Quality
Net losses charged-off$21$44$71$118$101
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.08 %0.16 %0.27 %0.43 %0.35 %
ALLL as a percent of portfolio loans and leases1.81 %1.89 %2.03 %2.25 %2.32 %
ACL as a percent of portfolio loans and leases(g)
2.00 %2.06 %2.19 %2.41 %2.49 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.52 %0.61 %0.72 %0.79 %0.84 %
Average Balances
Loans and leases, including held for sale$113,528$114,443$113,701$111,464$114,613
Securities and other short-term investments69,27370,47569,01470,95466,091
Assets205,449206,353203,836203,930202,533
Transaction deposits(b)
159,404158,779153,834153,053148,567
Core deposits(c)
161,787161,475156,879156,326152,278
Wholesale funding(d)
14,38716,47018,39118,71621,762
Bancorp shareholders' equity22,92722,92722,95223,12622,952
Regulatory Capital Ratios(e)(f)
CET1 capital
9.85 %10.37 %10.46 %10.34 %10.14 %
Tier I risk-based capital
11.27 %11.83 %11.94 %11.83 %11.64 %
Total risk-based capital
13.92 %14.60 %14.80 %15.08 %14.93 %
Tier I leverage8.35 %8.55 %8.61 %8.49 %8.37 %
Operations
Banking centers1,1001,0961,0981,1341,122
ATMs2,3362,3692,3832,3972,414
Full-time equivalent employees19,17119,40219,81919,87220,283
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures 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)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
15

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended% ChangeYear to Date% Change
(unaudited)SeptemberJuneSeptemberSeptemberSeptember
202120212020SeqYr/Yr20212020Yr/Yr
Interest Income
Interest and fees on loans and leases$1,014$1,035$1,047(2%)(3%)$3,078$3,397(9%)
Interest on securities266279274(5%)(3%)809840(4%)
Interest on other short-term investments129833%50%292045%
Total interest income1,2921,3231,329(2%)(3%)3,9164,257(8%)
Interest Expense
Interest on deposits121546(20%)(74%)48295(84%)
Interest on federal funds purchased——————2(100%)
Interest on other short-term borrowings——5—(100%)113(92%)
Interest on long-term debt91100108(9%)(16%)293347(16%)
Total interest expense103115159(10%)(35%)342657(48%)
Net Interest Income1,1891,2081,170(2%)2%3,5743,600(1%)
(Benefit from) provision for credit losses(42)(115)(15)(63%)180%(330)1,110NM
Net Interest Income After (Benefit from) Provision for Credit Losses1,2311,3231,185(7%)4%3,9042,49057%
Noninterest Income
Service charges on deposits1521491442%6%4454147%
Commercial banking revenue152160125(5%)22%46538720%
Mortgage banking net revenue86647634%13%235295(20%)
Wealth and asset management revenue1471451321%11%43638713%
Card and processing revenue10210292—11%29826015%
Leasing business revenue78617728%1%2262079%
Other noninterest income1204926145%362%21142402%
Securities gains (losses), net(1)1051NMNM1248(75%)
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights—1(1)(100%)(100%)(2)3NM
Total noninterest income83674172213%16%2,3262,04314%
Noninterest Expense
Compensation and benefits627638637(2%)(2%)1,9711,9113%
Net occupancy expense7977903%(12%)235254(7%)
Technology and communications9894894%10%2852725%
Equipment expense343433—3%102975%
Card and processing expense192029(5%)(34%)7089(21%)
Leasing business expense333335—(6%)102103(1%)
Marketing expense29202345%26%7274(3%)
Other noninterest expense2532372257%12%7046823%
Total noninterest expense1,1721,1531,1612%1%3,5413,4822%
Income Before Income Taxes895911746(2%)20%2,6891,051156%
Applicable income tax expense191202165(5%)16%582228155%
Net Income704709581(1%)21%2,107823156%
Dividends on preferred stock203519(43%)5%75699%
Net Income Available to Common Shareholders$684$674$5621%22%$2,032$754169%
16

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20212021202120202020
Interest Income
Interest and fees on loans and leases$1,014$1,035$1,030$1,028$1,047
Interest on securities266279264278274
Interest on other short-term investments129898
Total interest income1,2921,3231,3021,3151,329
Interest Expense
Interest on deposits1215212746
Interest on other short-term borrowings——115
Interest on long-term debt91100104105108
Total interest expense103115126133159
Net Interest Income1,1891,2081,1761,1821,170
Benefit from credit losses(42)(115)(173)(13)(15)
Net Interest Income After Benefit from Credit Losses1,2311,3231,3491,1951,185
Noninterest Income
Service charges on deposits152149144146144
Commercial banking revenue152160153141125
Mortgage banking net revenue8664852576
Wealth and asset management revenue147145143133132
Card and processing revenue102102949292
Leasing business revenue7861876977
Other noninterest income120494216826
Securities (losses) gains, net(1)1031451
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights—1(2)(1)(1)
Total noninterest income836741749787722
Noninterest Expense
Compensation and benefits627638706679637
Net occupancy expense7977799890
Technology and communications9894939089
Equipment expense3434343433
Card and processing expense1920303129
Leasing business expense3333353735
Marketing expense2920233023
Other noninterest expense253237215237225
Total noninterest expense1,1721,1531,2151,2361,161
Income Before Income Taxes895911883746746
Applicable income tax expense191202189142165
Net Income704709694604581
Dividends on preferred stock2035203519
Net Income Available to Common Shareholders$684$674$674$569$562
17

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of% Change
(unaudited)SeptemberJuneSeptember
202120212020SeqYr/Yr
Assets
Cash and due from banks$3,213$3,285$2,996(2%)7%
Other short-term investments34,20332,40931,2856%9%
Available-for-sale debt and other securities(a)
37,87038,01237,425—1%
Held-to-maturity securities(b)
81015(20%)(47%)
Trading debt securities685711704(4%)(3%)
Equity securities329341277(4%)19%
Loans and leases held for sale5,2035,7302,323(9%)124%
Portfolio loans and leases:
  Commercial and industrial loans47,83447,56451,6951%(7%)
  Commercial mortgage loans10,30010,34710,878—(5%)
  Commercial construction loans5,4565,8715,656(7%)(4%)
  Commercial leases3,1303,2383,021(3%)4%
Total commercial loans and leases66,72067,02071,250—(6%)
  Residential mortgage loans16,15816,13116,158——
  Home equity4,2764,5455,455(6%)(22%)
  Indirect secured consumer loans16,00415,19212,9255%24%
  Credit card1,7441,7932,087(3%)(16%)
  Other consumer loans3,0093,0522,856(1%)5%
Total consumer loans41,19140,71339,4811%4%
Portfolio loans and leases107,911107,733110,731—(3%)
Allowance for loan and lease losses(1,954)(2,033)(2,574)(4%)(24%)
Portfolio loans and leases, net105,957105,700108,157—(2%)
Bank premises and equipment2,1012,0732,0901%1%
Operating lease equipment647715818(10%)(21%)
Goodwill4,5144,2594,2616%6%
Intangible assets16911715744%8%
Servicing rights94381866015%43%
Other assets11,88911,21010,8286%10%
Total Assets$207,731$205,390$201,9961%3%
Liabilities
Deposits:
  Demand $63,879$62,760$51,8962%23%
  Interest checking 45,96444,87249,5662%(7%)
  Savings 21,42320,66717,2214%24%
  Money market 30,65230,56431,192—(2%)
  Foreign office 20215216033%26%
  Other time 2,2042,4083,337(8%)(34%)
  Certificates $100,000 and over7848603,311(9%)(76%)
Total deposits165,108162,283156,6832%5%
Federal funds purchased309338251(9%)23%
Other short-term borrowings9491,1301,196(16%)(21%)
Accrued taxes, interest and expenses2,0832,0452,5002%(17%)
Other liabilities5,3394,3043,29224%62%
Long-term debt11,41912,36415,123(8%)(24%)
Total Liabilities185,207182,464179,0452%3%
Equity
Common stock(c)
2,0512,0512,051——
Preferred stock2,1162,1162,116——
Capital surplus3,6113,6023,624——
Retained earnings19,81719,34318,0102%10%
Accumulated other comprehensive income1,6371,9742,831(17%)(42%)
Treasury stock(6,708)(6,160)(5,681)9%18%
Total Equity22,52422,92622,951(2%)(2%)
Total Liabilities and Equity$207,731$205,390$201,9961%3%
(a) Amortized cost$36,308$36,081$34,6931%5%
(b) Market values8 10 15 (20%)(47%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,000——
Outstanding, excluding treasury689,790703,740712,328(2 %)(3 %)
Treasury234,102220,153211,5656 %11 %


18

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of
(unaudited)SeptemberJuneMarchDecemberSeptember
20212021202120202020
Assets
Cash and due from banks$3,213$3,285$3,122$3,147$2,996
Other short-term investments34,20332,40934,18733,39931,285
Available-for-sale debt and other securities(a)
37,87038,01237,59537,51337,425
Held-to-maturity securities(b)
810101115
Trading debt securities685711728560704
Equity securities329341315313277
Loans and leases held for sale5,2035,7305,4774,7412,323
Portfolio loans and leases:
  Commercial and industrial loans47,83447,56449,09449,66551,695
  Commercial mortgage loans10,30010,34710,48110,60210,878
  Commercial construction loans5,4565,8716,1985,8155,656
  Commercial leases3,1303,2383,2552,9153,021
Total commercial loans and leases66,72067,02069,02868,99771,250
  Residential mortgage loans16,15816,13115,77615,92816,158
  Home equity4,2764,5454,8155,1835,455
  Indirect secured consumer loans16,00415,19214,33613,65312,925
  Credit card1,7441,7931,8102,0072,087
  Other consumer loans3,0093,0523,0903,0142,856
Total consumer loans41,19140,71339,82739,78539,481
Portfolio loans and leases107,911107,733108,855108,782110,731
Allowance for loan and lease losses(1,954)(2,033)(2,208)(2,453)(2,574)
Portfolio loans and leases, net105,957105,700106,647106,329108,157
Bank premises and equipment2,1012,0732,0722,0882,090
Operating lease equipment647715718777818
Goodwill4,5144,2594,2594,2584,261
Intangible assets169117127139157
Servicing rights943818784656660
Other assets11,88911,21010,85810,74910,828
Total Assets$207,731$205,390$206,899$204,680$201,996
Liabilities
Deposits:
  Demand $63,879$62,760$61,363$57,711$51,896
  Interest checking45,96444,87245,58247,27049,566
  Savings 21,42320,66720,16218,25817,221
  Money market 30,65230,56430,63030,65031,192
  Foreign office 202152113143160
  Other time 2,2042,4082,7593,0233,337
  Certificates $100,000 and over7848601,7842,0263,311
Total deposits165,108162,283162,393159,081156,683
Federal funds purchased309338302300251
Other short-term borrowings9491,1301,1061,1921,196
Accrued taxes, interest and expenses2,0832,0451,8792,6142,500
Other liabilities5,3394,3043,8813,4093,292
Long-term debt11,41912,36414,74314,97315,123
Total Liabilities185,207182,464184,304181,569179,045
Equity
Common stock(c)
2,0512,0512,0512,0512,051
Preferred stock2,1162,1162,1162,1162,116
Capital surplus3,6113,6023,5923,6353,624
Retained earnings19,81719,34318,86318,38418,010
Accumulated other comprehensive income1,6371,9741,7922,6012,831
Treasury stock(6,708)(6,160)(5,819)(5,676)(5,681)
Total Equity22,52422,92622,59523,11122,951
Total Liabilities and Equity$207,731$205,390$206,899$204,680$201,996
(a) Amortized cost$36,308$36,081$35,963$34,982$34,693
(b) Market values810101115
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,0002,000,0002,000,000
Outstanding, excluding treasury689,790703,740711,596712,760712,328
Treasury234,102220,153212,297211,132211,565
19

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months EndedYear to Date
SeptemberSeptemberSeptemberSeptember
2021202020212020
Total Equity, Beginning$22,926$22,335$23,111$21,203
Net income7045812,107823
Other comprehensive (loss) income, net of tax:
Change in unrealized (losses) gains:
Available-for-sale debt securities(282)(66)(741)1,272
Qualifying cash flow hedges(56)(55)(226)364
Change in accumulated other comprehensive income related to employee benefit plans1133
Comprehensive income3674611,1432,462
Cash dividends declared:
Common stock(210)(195)(597)(585)
Preferred stock(20)(19)(75)(69)
Impact of stock transactions under stock compensation plans, net11232066
Shares acquired for treasury(550)—(1,077)—
Other——(1)—
Issuance of preferred stock—346—346
Impact of cumulative effect of change in accounting principles———(472)
Total Equity, Ending$22,524$22,951$22,524$22,951
20

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisFor the Three Months Ended
$ in millionsSeptemberJuneSeptember
(unaudited)202120212020
AverageAverageAverageAverageAverageAverage
BalanceYield/RateBalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$47,7743.54 %$48,8173.62 %$54,0563.35 %
  Commercial mortgage loans(a)
10,3393.00 %10,4673.11 %11,0713.12 %
  Commercial construction loans(a)
5,7293.12 %6,0433.09 %5,5343.18 %
  Commercial leases(a)
3,1582.84 %3,1742.94 %2,9663.44 %
Total commercial loans and leases67,0003.39 %68,5013.47 %73,6273.30 %
  Residential mortgage loans21,7503.21 %21,7403.29 %17,8143.48 %
  Home equity4,4093.59 %4,6743.60 %5,5813.59 %
  Indirect secured consumer loans15,5903.27 %14,7023.41 %12,5993.93 %
  Credit card1,74812.38 %1,77012.13 %2,13411.37 %
  Other consumer loans3,0315.91 %3,0565.96 %2,8586.46 %
Total consumer loans46,5283.79 %45,9423.88 %40,9864.25 %
Total loans and leases113,5283.55 %114,4433.63 %114,6133.64 %
Securities:
Taxable securities36,1772.86 %36,0973.06 %36,1473.01 %
Tax exempt securities(a)
1,0312.22 %8202.47 %1532.99 %
Other short-term investments32,0650.15 %33,5580.11 %29,7910.10 %
Total interest-earning assets182,8012.81 %184,9182.88 %180,7042.93 %
Cash and due from banks3,1143,0332,944
Other assets21,56620,60821,583
Allowance for loan and lease losses(2,032)(2,206)(2,698)
Total Assets$205,449$206,353$202,533
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$45,1280.05 %$45,3070.06 %$49,8000.10 %
  Savings deposits20,9410.02 %20,4940.02 %17,0130.04 %
  Money market deposits30,5140.03 %30,8440.05 %31,1510.14 %
  Foreign office deposits1950.03 %1400.03 %1890.06 %
  Other time deposits2,3830.16 %2,6960.27 %3,7110.95 %
Total interest-bearing core deposits99,1610.04 %99,4810.05 %101,8640.13 %
  Certificates $100,000 and over8600.61 %1,1440.80 %3,6331.26 %
  Federal funds purchased3480.13 %3460.10 %2730.20 %
  Other short-term borrowings1,1220.12 %1,0970.12 %1,6261.28 %
  Long-term debt12,0572.98 %13,8832.85 %16,2302.62 %
Total interest-bearing liabilities113,5480.36 %115,9510.40 %123,6260.51 %
Demand deposits62,62661,99450,414
Other liabilities6,3485,4815,541
Total Liabilities182,522183,426179,581
Total Equity22,92722,92722,952
Total Liabilities and Equity$205,449$206,353$202,533
Ratios:
  Net interest margin (FTE)(b)
2.59 %2.63 %2.58 %
  Net interest rate spread (FTE)(b)
2.45 %2.48 %2.42 %
  Interest-bearing liabilities to interest-earning assets62.12 %62.70 %68.41 %
(a) Average Yield/Rate of these assets are presented on an FTE basis.
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.









21

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisYear to Date
$ in millionsSeptemberSeptember
(unaudited)20212020
AverageAverageAverageAverage
BalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$48,7613.59 %$54,9483.67 %
  Commercial mortgage loans(a)
10,4463.06 %11,1053.66 %
  Commercial construction loans(a)
5,9363.14 %5,4053.82 %
  Commercial leases(a)
3,1542.98 %3,0743.46 %
Total commercial loans and leases68,2973.44 %74,5323.67 %
  Residential mortgage loans21,3163.28 %17,7483.55 %
  Home equity4,6953.59 %5,8023.98 %
  Indirect secured consumer loans14,7553.41 %12,1794.02 %
  Credit card1,79812.29 %2,29311.61 %
  Other consumer loans3,0295.99 %2,8476.88 %
Total consumer loans45,5933.89 %40,8694.43 %
Total loans and leases113,8903.62 %115,4013.94 %
Securities:
  Taxable securities36,0142.96 %36,3123.08 %
  Tax exempt securities(a)
7972.32 %1573.00 %
Other short-term investments32,7780.12 %17,5520.15 %
Total interest-earning assets183,4792.86 %169,4223.36 %
Cash and due from banks3,0462,981
Other assets20,92220,870
Allowance for loan and lease losses(2,228)(2,300)
Total Assets$205,219$190,973
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$45,3330.06 %$46,6310.33 %
  Savings deposits20,1360.02 %16,0310.07 %
  Money market deposits30,6530.04 %29,4340.38 %
  Foreign office deposits1550.04 %1930.25 %
  Other time deposits2,7060.30 %4,4021.27 %
Total interest-bearing core deposits98,9830.05 %96,6910.35 %
  Certificates $100,000 and over1,3340.90 %3,6851.56 %
  Other deposits—— 950.76 %
  Federal funds purchased3390.12 %4120.68 %
  Other short-term borrowings1,1420.16 %1,9160.90 %
  Long-term debt13,5852.88 %16,3332.84 %
Total interest-bearing liabilities115,3830.40 %119,1320.74 %
Demand deposits61,08444,004
Other liabilities5,8175,473
Total Liabilities182,284168,609
Total Equity22,93522,364
Total Liabilities and Equity$205,219$190,973
Ratios:
  Net interest margin (FTE)(b)
2.61 %2.85 %
  Net interest rate spread (FTE)(b)
2.46 %2.62 %
  Interest-bearing liabilities to interest-earning assets62.89 %70.32 %
(a) Average Yield/Rate of these assets are presented on an FTE basis.
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
22

Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20212021202120202020
Average Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$47,766$48,773$49,629$50,385$54,004
  Commercial mortgage loans10,31710,45910,53210,72711,069
  Commercial construction loans5,7286,0436,0395,8205,534
  Commercial leases3,1583,1743,1142,9322,966
Total commercial loans and leases66,96968,44969,31469,86473,573
Consumer loans:
  Residential mortgage loans16,22315,88315,80316,01616,618
  Home equity4,4094,6745,0095,3155,581
  Indirect secured consumer loans15,59014,70213,95513,27212,599
  Credit card1,7481,7701,8792,0422,134
  Other consumer loans3,0313,0562,9962,8512,857
Total consumer loans41,00140,08539,64239,49639,789
Total average portfolio loans and leases$107,970$108,534$108,956$109,360$113,362
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$31$52$104$56$55
Consumer loans held for sale5,5275,8574,6412,0481,196
Average loans and leases held for sale$5,558$5,909$4,745$2,104$1,251
Average PPP loans(a)
$3,071$4,810$5,200$5,098$5,216
Average portfolio commercial and industrial loans - excluding PPP loans44,69543,96344,42945,28748,788
Total average portfolio commercial and industrial loans$47,766$48,773$49,629$50,385$54,004
End of Period Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$47,834$47,564$49,094$49,665$51,695
  Commercial mortgage loans10,30010,34710,48110,60210,878
  Commercial construction loans5,4565,8716,1985,8155,656
  Commercial leases3,1303,2383,2552,9153,021
Total commercial loans and leases66,72067,02069,02868,99771,250
Consumer loans:
  Residential mortgage loans16,15816,13115,77615,92816,158
  Home equity4,2764,5454,8155,1835,455
  Indirect secured consumer loans16,00415,19214,33613,65312,925
  Credit card1,7441,7931,8102,0072,087
  Other consumer loans3,0093,0523,0903,0142,856
Total consumer loans41,19140,71339,82739,78539,481
Total portfolio loans and leases$107,911$107,733$108,855$108,782$110,731
End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale$2$46$80$276$59
Consumer loans held for sale5,2015,6845,3974,4652,264
Loans and leases held for sale$5,203$5,730$5,477$4,741$2,323
Operating lease equipment$647$715$718$777$818
Loans and Leases Serviced for Others(b)
Commercial and industrial loans$879$919$1,011$979$903
Commercial mortgage loans620623639653585
Commercial construction loans487528592601623
Commercial leases555536547569584
Residential mortgage loans77,92971,49665,92268,80073,521
Other consumer loans5050505050
Total loans and leases serviced for others80,52074,15268,76171,65276,266
Total loans and leases serviced$194,281$188,330$183,811$185,952$190,138
End of period PPP loans(a)
$2,344$3,685$5,381$4,844$5,242
End of period portfolio commercial and industrial loans - excluding PPP loans45,49043,87943,71344,82146,453
Total end of period portfolio commercial and industrial loans$47,834$47,564$49,094$49,665$51,695
(a)Paycheck Protection Program loans are included in commercial and industrial loans in the Condensed Consolidated Balance Sheets.
(b)Fifth Third sells certain loans and leases and obtains servicing responsibilities.
23

Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millionsAs of
(unaudited)SeptemberJuneMarchDecemberSeptember
2021(a)
2021202120202020
Regulatory Capital(b)
CET1 capital$14,673$15,050$14,931$14,682$14,307
Additional tier I capital2,1162,1162,1172,1152,115
Tier I capital16,78917,16617,04816,79716,422
Tier II capital3,9524,0184,0834,6154,645
Total regulatory capital$20,741$21,184$21,131$21,412$21,067
Risk-weighted assets
$148,982$145,084$142,799$141,974$141,083
Ratios
Average total Bancorp shareholders' equity as a percent of average assets11.16 %11.11 %11.26 %11.34 %11.33 %
Regulatory Capital Ratios(b)
Fifth Third Bancorp
CET1 capital
9.85 %10.37 %10.46 %10.34 %10.14 %
Tier I risk-based capital
11.27 %11.83 %11.94 %11.83 %11.64 %
Total risk-based capital
13.92 %14.60 %14.80 %15.08 %14.93 %
Tier I leverage8.35 %8.55 %8.61 %8.49 %8.37 %
Fifth Third Bank
Tier I risk-based capital
11.26 %11.67 %12.70 %12.28 %12.25 %
Total risk-based capital
12.79 %13.27 %14.41 %14.17 %14.14 %
Tier I leverage8.35 %8.46 %9.19 %8.85 %8.85 %
(a)Current period regulatory capital data and ratios are estimated.
(b)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
24

Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20212021202120202020
Average portfolio loans and leases:
  Commercial and industrial loans$47,766$48,773$49,629$50,385$54,004
  Commercial mortgage loans10,31710,45910,53210,72711,069
  Commercial construction loans5,7286,0436,0395,8205,534
  Commercial leases3,1583,1743,1142,9322,966
Total commercial loans and leases66,96968,44969,31469,86473,573
  Residential mortgage loans16,22315,88315,80316,01616,618
  Home equity4,4094,6745,0095,3155,581
  Indirect secured consumer loans15,59014,70213,95513,27212,599
  Credit card1,7481,7701,8792,0422,134
  Other consumer loans3,0313,0562,9962,8512,857
Total consumer loans41,00140,08539,64239,49639,789
Total average portfolio loans and leases$107,970$108,534$108,956$109,360$113,362
Losses charged-off:
  Commercial and industrial loans($10)($36)($32)($44)($45)
  Commercial mortgage loans—(8)(3)(31)(11)
  Commercial leases—(1)——(10)
Total commercial loans and leases(10)(45)(35)(75)(66)
  Residential mortgage loans(1)(1)(1)(4)(1)
  Home equity(2)(2)(3)(3)(4)
  Indirect secured consumer loans(9)(11)(18)(19)(11)
  Credit card(17)(26)(31)(31)(34)
  Other consumer loans(17)(18)(21)(22)(19)
Total consumer loans(46)(58)(74)(79)(69)
Total losses charged-off($56)($103)($109)($154)($135)
Recoveries of losses previously charged-off:
  Commercial and industrial loans$5$23$5$3$3
  Commercial mortgage loans1211—
  Commercial leases—3112
Total commercial loans and leases628755
  Residential mortgage loans21122
  Home equity33333
  Indirect secured consumer loans10119108
  Credit card56665
  Other consumer loans910121011
Total consumer loans2931313129
Total recoveries of losses previously charged-off$35$59$38$36$34
Net losses charged-off:
  Commercial and industrial loans($5)($13)($27)($41)($42)
  Commercial mortgage loans1(6)(2)(30)(11)
  Commercial leases—211(8)
Total commercial loans and leases(4)(17)(28)(70)(61)
  Residential mortgage loans1——(2)1
  Home equity11——(1)
  Indirect secured consumer loans1—(9)(9)(3)
  Credit card(12)(20)(25)(25)(29)
  Other consumer loans(8)(8)(9)(12)(8)
Total consumer loans(17)(27)(43)(48)(40)
Total net losses charged-off($21)($44)($71)($118)($101)
Net losses charged-off as a percent of average portfolio loans and leases (annualized):
  Commercial and industrial loans0.04 %0.11 %0.22 %0.33 %0.31 %
  Commercial mortgage loans(0.03 %)0.22 %0.09 %1.13 %0.39 %
  Commercial leases— (0.21 %)(0.09 %)(0.15 %)1.09 %
Total commercial loans and leases0.03 %0.10 %0.17 %0.40 %0.33 %
  Residential mortgage loans(0.02 %)(0.01 %)(0.01 %)0.04 %(0.02 %)
  Home equity(0.13 %)(0.09 %)0.01 %— 0.07 %
  Indirect secured consumer loans(0.02 %)0.01 %0.25 %0.28 %0.11 %
  Credit card2.70 %4.52 %5.50 %4.95 %5.44 %
  Other consumer loans1.05 %0.91 %1.17 %1.50 %1.05 %
Total consumer loans0.16 %0.26 %0.43 %0.47 %0.40 %
Total net losses charged-off as a percent of average portfolio loans and leases (annualized)0.08 %0.16 %0.27 %0.43 %0.35 %
25

Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20212021202120202020
Allowance for Credit Losses
Allowance for loan and lease losses, beginning$2,033$2,208$2,453$2,574$2,696
  Total net losses charged-off(21)(44)(71)(118)(101)
Benefit from loan and lease losses(58)(131)(174)(3)(21)
Allowance for loan and lease losses, ending$1,954$2,033$2,208$2,453$2,574
Reserve for unfunded commitments, beginning$189$173$172$182$176
  Provision for (benefit from) the reserve for unfunded commitments16161(10)6
Reserve for unfunded commitments, ending$205$189$173$172$182
Components of allowance for credit losses:
  Allowance for loan and lease losses$1,954$2,033$2,208$2,453$2,574
  Reserve for unfunded commitments205189173172182
Total allowance for credit losses$2,159$2,222$2,381$2,625$2,756
As of
SeptemberJuneMarchDecemberSeptember
20212021202120202020
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
  Commercial and industrial loans$172$193$197$230$266
  Commercial mortgage loans4343508299
  Commercial construction loans——1——
  Commercial leases696716
  Residential mortgage loans1317222530
  Home equity4853555250
  Indirect secured consumer loans56698
  Other consumer loans11223
Total nonaccrual portfolio loans and leases (excludes restructured loans)288322339407472
Nonaccrual restructured portfolio commercial loans and leases128164255319307
Nonaccrual restructured portfolio consumer loans and leases(c)
112135147108112
Total nonaccrual portfolio loans and leases528621741834891
Repossessed property45797
OREO2731352133
Total nonperforming portfolio loans and leases and OREO559657783864931
Nonaccrual loans held for sale—132510
Nonaccrual restructured loans held for sale1272011
Total nonperforming assets$560$697$805$870$942
Restructured portfolio consumer loans and leases (accrual)$684$699$763$796$818
Restructured portfolio commercial loans and leases (accrual)$74$80$81$92$123
Loans and leases 90 days past due (accrual):
  Commercial and industrial loans$4$2$8$39$4
  Commercial mortgage loans247826
  Commercial construction loans——1——
  Commercial leases1——12
Total commercial loans and leases76164832
  Residential mortgage loans(c)
6157737067
  Home equity11122
  Indirect secured consumer loans8481010
  Credit card1414253127
  Other consumer loans11121
Total consumer loans8577108115107
Total loans and leases 90 days past due (accrual)(b)
$92$83$124$163$139
Ratios
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.08 %0.16 %0.27 %0.43 %0.35 %
Allowance for credit losses:
As a percent of portfolio loans and leases2.00 %2.06 %2.19 %2.41 %2.49 %
   As a percent of nonperforming portfolio loans and leases(a)
409 %358 %321 %315 %309 %
   As a percent of nonperforming portfolio assets(a)
386 %338 %304 %304 %296 %
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO(a)
0.49 %0.58 %0.68 %0.77 %0.80 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
0.52 %0.61 %0.72 %0.79 %0.84 %
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property0.49 %0.61 %0.70 %0.77 %0.83 %
(a) Excludes nonaccrual loans held for sale.
(b) Excludes loans held for sale.
(c) Excludes government guaranteed residential mortgage loans.


26


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,” “noninterest income excluding certain items,” “adjusted noninterest expense,” “noninterest expense excluding certain items,” “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,” “underlying net interest margin,” “adjusted pre-provision net revenue,” “adjusted return on average assets,” “efficiency ratio (FTE),” “total revenue (FTE),” “noninterest income as a percent of total revenue”, 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, noninterest income as a percent of total revenue, 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.

The Bancorp believes noninterest income excluding certain items and noninterest expense excluding certain items are important measures that adjust for certain components that are prone to significant period-to-period changes in order to facilitate the explanation of variances in the noninterest income and noninterest expense line items.

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 reconciliations of all historical non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page.
27

Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ and shares in millionsAs of and For the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20212021202120202020
Net interest income$1,189$1,208$1,176$1,182$1,170
Add: Taxable equivalent adjustment33333
Net interest income (FTE) (a)1,1921,2111,1791,1851,173
Net interest income (annualized) (b)4,7174,8454,7694,7024,655
Net interest income (FTE) (annualized) (c)4,7294,8574,7824,7144,667
Interest income1,2921,3231,3021,3151,329
Add: Taxable equivalent adjustment33333
Interest income (FTE)1,2951,3261,3051,3181,332
Interest income (FTE) (annualized) (d)5,1385,3195,2935,2435,299
Interest expense (annualized) (e)409461511529633
Average interest-earning assets (f)182,801184,918182,715182,418180,704
Average interest-bearing liabilities (g)113,548115,951116,684118,677123,626
Net interest margin (b) / (f)2.58 %2.62 %2.61 %2.58 %2.58 %
Net interest margin (FTE) (c) / (f)2.59 %2.63 %2.62 %2.58 %2.58 %
Net interest rate spread (FTE) (d) / (f) - (e) / (g)2.45 %2.48 %2.46 %2.42 %2.42 %
Income before income taxes$895$911$883$746$746
Add: Taxable equivalent adjustment33333
Income before income taxes (FTE)$898$914$886$749$749
Net income available to common shareholders$684$674$674$569$562
Add: Intangible amortization, net of tax98999
Tangible net income available to common shareholders (h)693682683578571
Tangible net income available to common shareholders (annualized) (i)2,7492,7352,7702,2992,272
Average Bancorp shareholders' equity22,92722,92722,95223,12622,952
Less: Average preferred stock(2,116)(2,116)(2,116)(2,116)(2,007)
Average goodwill(4,430)(4,259)(4,259)(4,261)(4,261)
Average intangible assets(149)(122)(133)(151)(164)
Average tangible common equity, including AOCI (j)16,23216,43016,44416,59816,520
Less:Average AOCI(1,980)(1,968)(2,231)(2,623)(2,919)
Average tangible common equity, excluding AOCI (k)14,25214,46214,21313,97513,601
Total Bancorp shareholders' equity22,52422,92622,59523,11122,951
Less:Preferred stock(2,116)(2,116)(2,116)(2,116)(2,116)
Goodwill(4,514)(4,259)(4,259)(4,258)(4,261)
Intangible assets(169)(117)(127)(139)(157)
Tangible common equity, including AOCI (l)15,72516,43416,09316,59816,417
Less:AOCI(1,637)(1,974)(1,792)(2,601)(2,831)
Tangible common equity, excluding AOCI (m)14,08814,46014,30113,99713,586
Add:Preferred stock2,1162,1162,1162,1162,116
Tangible equity (n)16,20416,57616,41716,11315,702
Total assets207,731205,390206,899204,680201,996
Less:Goodwill(4,514)(4,259)(4,259)(4,258)(4,261)
Intangible assets(169)(117)(127)(139)(157)
Tangible assets, including AOCI (o)203,048201,014202,513200,283197,578
Less:AOCI, before tax(2,072)(2,499)(2,268)(3,292)(3,584)
Tangible assets, excluding AOCI (p)$200,976$198,515$200,245$196,991$193,994
Common shares outstanding (q)690704712713712
Tangible equity (n) / (p)8.06 %8.35 %8.20 %8.18 %8.09 %
Tangible common equity (excluding AOCI) (m) / (p)7.01 %7.28 %7.14 %7.11 %6.99 %
Tangible common equity (including AOCI) (l) / (o)7.74 %8.18 %7.95 %8.29 %8.31 %
Tangible book value per share (l) / (q)$22.79$23.34$22.60$23.28$23.06
28

Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneSeptember
202120212020
Net income (r)$704$709$581
Net income (annualized) (s)2,7932,8442,311
Adjustments (pre-tax items)
Valuation of Visa total return swap173722
Fifth Third Foundation contribution15--
HSA disposition gain(60)--
Branch and non-branch real estate charges--19
Restructuring severance expense--19
Adjustments, after-tax (t)(a)
(21)2846
Noninterest income (u)836741722
Valuation of Visa total return swap173722
HSA disposition gain(60)--
Branch and non-branch real estate charges--10
Adjusted noninterest income (v)793778754
Noninterest expense (w)1,1721,1531,161
Fifth Third Foundation contribution(15)--
Branch and non-branch real estate charges--(9)
Restructuring severance expense--(19)
Adjusted noninterest expense (x)1,1571,1531,133
Adjusted net income (r) + (t)683737627
Adjusted net income (annualized) (y)2,7102,9562,494
Adjusted tangible net income available to common shareholders (h) + (t)672710617
Adjusted tangible net income available to common shareholders (annualized) (z)2,6662,8482,455
Average assets (aa)$205,449$206,353$202,533
Return on average tangible common equity (i) / (j)16.9 %16.6 %13.8 %
Return on average tangible common equity excluding AOCI (i) / (k)19.3 %18.9 %16.7 %
Adjusted return on average tangible common equity, including AOCI (z) / (j)16.4 %17.3 %14.9 %
Adjusted return on average tangible common equity, excluding AOCI (z) / (k)18.7 %19.7 %18.1 %
Return on average assets (s) / (aa)1.36 %1.38 %1.14 %
Adjusted return on average assets (y) / (aa)1.32 %1.43 %1.23 %
Efficiency ratio (FTE) (w) / [(a) + (u)]57.8 %59.1 %61.3 %
Adjusted efficiency ratio (x) / [(a) + (v)]58.3 %58.0 %58.8 %
Total revenue (FTE) (a) + (u)$2,028$1,952$1,895
Pre-provision net revenue (PPNR) (a) + (u) - (w)$856$799$734
Adjusted pre-provision net revenue (PPNR) (a) + (v) - (x)$828$836$794
Totals may not foot due to rounding; (a) Assumes a 23% tax rate
29

Fifth Third Bancorp and Subsidiaries
Segment Presentation
$ in millions
(unaudited)
For the three months ended September 30, 2021
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$371$309$145$22$345$1,192
Benefit from (provision for) credit losses242(13)2—(189)42
Net interest income after benefit from (provision for) credit losses613296147221561,234
Noninterest income3622298414318836
Noninterest expense(406)(463)(158)(134)(11)(1,172)
Income before income taxes569627331163898
Applicable income tax expense(a)
(112)(14)(15)(7)(46)(194)
Net income$457$48$58$24$117$704
For the three months ended June 30, 2021
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$378$301$142$21$369$1,211
Benefit from (provision for) credit losses151(25)——(11)115
Net interest income after benefit from (provision for) credit losses529276142213581,326
Noninterest income35522463143(44)741
Noninterest expense(399)(450)(163)(131)(10)(1,153)
Income before income taxes485504233304914
Applicable income tax expense(a)
(92)(10)(9)(7)(87)(205)
Net income$393$40$33$26$217$709
For the three months ended March 31, 2021
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$367$295$128$21$368$1,179
Benefit from (provision for) credit losses76(41)(8)1145173
Net interest income after benefit from (provision for) credit losses443254120225131,352
Noninterest income36120482138(36)749
Noninterest expense(420)(489)(161)(135)(10)(1,215)
Income (loss) before income taxes384(31)4125467886
Applicable income tax (expense) benefit(a)
(72)7(9)(5)(113)(192)
Net income (loss)$312$(24)$32$20$354$694
For the three months ended December 31, 2020
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$397$293$102$23$370$1,185
Benefit from (provision for) credit losses(212)(49)(9)(2)28513
Net interest income after benefit from (provision for) credit losses18524493216551,198
Noninterest income4041962213629787
Noninterest expense(427)(471)(135)(131)(72)(1,236)
Income (loss) before income taxes162(31)(20)26612749
Applicable income tax (expense) benefit(a)
(24)64(5)(126)(145)
Net income (loss)$138$(25)$(16)$21$486$604
For the three months ended September 30, 2020
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$435$355$98$28$257$1,173
Benefit from (provision for) credit losses(337)(68)(2)—42215
Net interest income after benefit from (provision for) credit losses9828796286791,188
Noninterest income318192731327722
Noninterest expense(411)(460)(137)(133)(20)(1,161)
Income before income taxes5193227666749
Applicable income tax (expense) benefit(a)
7(4)(7)(6)(158)(168)
Net income$12$15$25$21$508$581
(a) Includes taxable equivalent adjustments of $3 million for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020.
(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.
30