EX-99.1 2 dex991.htm FIFTH THIRD BANCORP PRESENTATION Fifth Third Bancorp Presentation
BancAnalysts Association of Boston
BancAnalysts Association of Boston
25   Annual Bank Conference
25   Annual Bank Conference
November 3, 2006
Kevin Kabat
President
Chris Marshall
Chief Financial Officer
Exhibit 99.1
th

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Agenda
Historical performance
Focus: leveraging our model
Focus: deposit gathering
Focus: credit
Focus: balance sheet
Summary

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1990
2006
CAGR
Assets
$8 billion
$106 billion
18%
Net income
$120 million
$1.5 billion*
18%
Earnings per share
$0.41
$2.69*
13%
Market cap
$1.3 billion
$22 billion
#
20%
Branches
214
1,145
11%
ATMs
262    
2,114
14%
Rank, U.S.
# 50 -
60
# 11
*
YTD 9/30/2006  annualized; diluted earnings per share as originally reported (split-adjusted).
#
as of 10/27/06.
Historical context: extraordinary growth

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2002
Stock price
$68.95
Market cap
$40B
ROE
18.4%
Efficiency ratio
47.5%
NIM
3.96%
2006
Stock price
$39.53*
Market cap
$22B*
ROE
15.5%
Efficiency ratio
55.2%
NIM
3.03%
Recent performance: challenging
*
as of 10/27/06.

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(CAGR: 3Q06* vs. 3Q02: per share)
Source:
SNL
Financial;
date
shown
per
share
to
adjust
for
effect
of
acquisitions.
*
Comparisons as of 3Q06 except for core deposits, cards, which use regulatory data as of 2Q06.
#
Median of top 20 banks (excluding trust banks, C, JPM); median revenue growth of six processing companies (FDC, ADS, FISV, GPN, TSS,
FIS); FTPS adjusted for 2Q04 sale of certain merchant processing
contracts.
^ Median of large Midwest peers (NCC, PNC, HBAN, MI, KEY, CMA, USB).
Focus: leveraging our model
16.2%
15.4%
15.1%
ROE
57.3%
57.1%
55.5%
Efficiency ratio
5%
3%
16%
Credit card loan growth
N/A
17%
18%
Processing fee growth
6%
7%
8%
Core deposit growth
7%
10%
14%
Loan growth
Midwest
Peers
^
Peer
Group
#
Fifth
Third

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Focus: leveraging our model
Better delivery to the
customer
Entrepreneurial culture
Attract better employee talent
Collaboration across lines of
business
Development and sharing of
best practices
Differentiation that creates
competitive advantage in the marketplace
Local management and full
line-of-business and staff
accountability
Local board of directors
Local decision-making
Cohesive geography
Common platform

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Focus: leveraging our model
Credit
Cards
Deposits
Private client
Merchant
acquisition
Financial
institutions
Institutional
products
Credit
Bundled
Payments
Products
Business
Banking
Banking
Fifth Third
Bank
Investments
Processing

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Deposit rates by product typically above peers…
1.10
1.87
1.92
2.26
2.49
0.00
1.00
2.00
3.00
4.00
5.00
6.00
USB
STI
BBT
RF
FITB
Source: Company reports (if disclosed).
2.56
2.80
2.89
2.92
3.05
3.07
3.47
4.30
0.00
1.00
2.00
3.00
4.00
5.00
6.00
RF
STI
NCC
HBAN
KEY
CMA
MI
FITB
0.19
0.40
0.41
0.64
0.87
1.71
1.75
2.60
3.08
0.00
1.00
2.00
3.00
4.00
5.00
6.00
KEY
USB
RF
NCC
CMA
STI
HBAN
BBT
FITB
3.93
4.11
4.17
4.24
4.24
4.29
4.32
4.40
4.43
4.55
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Q306 IBT rates
Q306 MMDA rates
Q306 savings rates
Q306 consumer CD rates

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…but in line overall given low-cost emphasis
Source: Company reports (if disclosed).
2.06
2.70
3.20
3.27
3.30
3.31
3.31
3.43
3.45
3.90
3.04
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Q306 interest-bearing core deposit rates

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15.4%
10.1%
7.5%
7.4%
6.2%
5.8%
5.5%
5.4%
4.9%
4.3%
2.9%
2.3%
0.6%
-0.7%
-1.4%
-2.0%
-5.2%
Focus: deposit gathering
June 2005 to June 2006 (FDIC data)
Additionally:
20 of 21* Fifth Third affiliate banks grew deposits (all 21 excluding >$1B branches)
17 of 21 affiliates grew deposit market share (18 of 21 excluding >$1B branches)
Source: SNL Financial; FBR report, October 25, 2006.
* 19 affiliates plus Pittsburgh and St. Louis.
#3 overall among large cap banks

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Focus: credit
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
Median
Fifth Third Bancorp
Gross
C/Os
Net
C/Os
Gross and net charge-
offs have historically
fallen within a relatively
stable band
Credit underwriting
standards do not
oscillate significantly
from cycle to cycle –
“we stick with our
customers”
Midwest economy
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Median
Fifth Third Bancorp

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Margin pressure primarily related to fixed rate securities
funded with floating rate liabilities
Average Securities and Spread
*
Interest bearing liabilities excluding core deposits.
Focus: balance sheet
in rates
in NII              in EPS*
+200 bps
-
1.76%
-
5-6 ¢
+100 bps
-
0.81%
-
2-3 ¢
-
100 bps
+1.39%
+4-5 ¢
-
200 bps
+2.46%
+8-9 ¢
Interest rate sensitivity
Source: 3Q06 10-Q. Parallel shocks phased in over 12 mo. policy period.
* Change in NII from 10-Q, using 3Q06 NII annualized, 35% tax rate, and
3Q06 average fully diluted shares. Not a projection.
•
#
Estimates including effects of expected deposit betas and maturation
of loans and deposits.
Sensitivity primarily to moves in
short end of curve
Liability sensitivity has been
reduced in recent quarters
through securities portfolio runoff
Approximately 40-45% of assets,
50-55% of funding variable rate
#
0
5
10
15
20
25
30
2002
2003
2004
2005
3Q06
0
100
200
300
400
500
600
Avg. Securities  
Yield  
Wholesale borrowings*  

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Balance sheet
rationalization
Mortgage/home equity
De novos
Credit cards
Open issues and decisions
Broaden product mix
Review risk-based pricing on high LTV
home equity loans (e.g., high LTVs)
How many; where
Portfolio unrepresentative of market
position —
strategic plan for growth
Resize bond portfolio as appropriate
—
More likely 10-20% of earning assets
vs. 22% currently
Optimize capital structure
Implement securitization capability

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Fifth Third: building a better future
Achieving the proper balance between growth and
profitability
Capitalizing on our strengths and developing plans
to address areas of weakness
Communicating clearly with our investors
Delivering on our promises and returning to above-
par performance and shareholder returns

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Cautionary statement
This presentation may contain forward-looking statements about Fifth Third Bancorp and/or the company as combined with acquired entities 
within the meaning of Sections 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and 21E of the
Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. This
presentation may contain certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives,
future
performance
and
business
of
Fifth
Third
Bancorp
and/or
the
combined
company
including
statements
preceded
by,
followed
by
or
that
include the words or phrases such as "believes," "expects," "anticipates," "plans," "trend," "objective," "continue," "remain" or similar
expressions or future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions. 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) competitive pressures among depository institutions
increase significantly; (2) changes in the interest rate environment reduce interest margins; (3) prepayment speeds, loan origination and sale
volumes, charge-offs and loan loss provisions; (4) general economic conditions, either national or in the states in which Fifth Third and/or
combined
entities
do
business,
are
less
favorable
than
expected;
(5) political developments, wars or other hostilities may disrupt or increase
volatility
in
securities
markets
or
other
economic
conditions;
(6)
changes
and
trends
in
the
securities
markets;
(7)
legislative
or
regulatory
changes or actions, or significant litigation, adversely affect Fifth Third and/or acquired entities or the businesses in which Fifth Third and/or
combined
entities
are
engaged;
(8)
difficulties
in
combining
the
operations
of acquired entities and (9) the impact of reputational risk created by
the developments discussed above on such matters as business generation and retention, funding and liquidity. We undertake no obligation to
release revisions to these forward-looking statements or reflect events or circumstances after the date of this release. Further information on
other
factors
which
could
affect
the
financial
results
of
Fifth
Third
are
included
in
Fifth
Third's
and/or
the
acquired
entity's
filings with the
Securities and Exchange Commission. These documents are available free of charge at the Commission's website at http://www.sec.gov
and/or from Fifth Third.
The financial information for affiliate operating segments in this presentation is reported on the basis used internally by the Bancorp’s
management
to
evaluate
performance
and
allocate
resources.
Allocations
have
been
consistently
applied
for
all
periods
presented.
The
performance measurement of the operating segments is based on the management structure of the Bancorp and is not necessarily
comparable with similar information for any other financial institution. The information presented is also not necessarily indicative of the
segments’
financial condition and results of operations if they were independent entities.