Press release dated October 19, 2007

EX-99.1 2 dex991.htm PRESS RELEASE DATED OCTOBER 19, 2007 Press release dated October 19, 2007

Exhibit 99.1

LOGO


		News Release

CONTACTS:	Jeff Richardson (Investors)	FOR IMMEDIATE RELEASE
	(513) 534-0983	October 19, 2007
	Jim Eglseder (Investors)
	(513) 534-8424
	Stephanie Honan (Media)
	(513) 534-6957

FIFTH THIRD BANCORP REPORTS THIRD QUARTER 2007

EARNINGS OF $0.71 PER DILUTED SHARE

Earnings Highlights


	For the Three Months Ended															% Change
	September 2007			June 2007			March 2007			December 2006			September 2006			Seq		Yr/Yr
Net income (in millions)	$	376		$	376		$	359		$	66		$	377		—		—
Common Share Data
Earnings per share, basic		0.71			0.69			0.65			0.12			0.68		3	%	4	%
Earnings per share, diluted		0.71			0.69			0.65			0.12			0.68		3	%	4	%
Cash dividends per common share		0.42			0.42			0.42			0.40			0.40		—		5	%
Financial Ratios
Return on average assets		1.46	%		1.49	%		1.47	%		0.25	%		1.41	%	(2	%)	4	%
Return on average equity		16.0			15.7			14.6			2.6			15.1		2	%	6	%
Tangible equity		6.88			6.92			7.65			7.79			7.40		(1	%)	(7	%)
Net interest margin (a)		3.34			3.37			3.44			3.16			2.99		(1	%)	12	%
Efficiency (a)		55.0			55.3			57.0			82.9			55.5		(1	%)	(1	%)
Common shares outstanding (in thousands)		532,627			535,697			550,077			556,253			558,066		(1	%)	(5	%)
Average common shares outstanding (in thousands):
Basic		530,123			540,264			551,501			554,978			555,565		(2	%)	(5	%)
Diluted		532,471			543,228			554,175			557,654			557,949		(2	%)	(5	%)

(a)	Presented on a fully taxable equivalent basis

Fifth Third Bancorp today reported third quarter 2007 earnings of $376 million, or $0.71 per diluted share, compared with $376 million, or $0.69 per diluted share, in the second quarter of 2007 and $377 million, or $0.68 per diluted share, for the same period in 2006.

“Third quarter results were solid in a quarter that saw significant market disruption. While we weren’t completely immune from that disruption, we were spared most of its effects,” said Kevin T. Kabat, President and CEO of Fifth Third Bancorp. “Revenue growth of two percent sequentially and seven percent from a year ago was impressive, given the market, with strength in both net interest income and fee income. Expenses were also well controlled during the quarter. Credit continues to be a challenge and we are actively managing our risks as the cycle progresses. We continue to expect further deterioration in credit trends for the near future but the deterioration to remain manageable. Overall, we were pleased with our results given the macro environment in this kind of quarter and continue to execute our strategic plans.”

Income Statement Highlights


	For the Three Months Ended											% Change
	September 2007		June 2007		March 2007		December 2006			September 2006		Seq		Yr/Yr
Condensed Statements of Income ($ in millions)
Net interest income (taxable equivalent)	$	760	$	745	$	742	$	744		$	719	2	%	6	%
Provision for loan and lease losses		139		121		84		107			87	14	%	59	%
Total noninterest income		722		707		648		219			662	2	%	9	%
Total noninterest expense		816		803		793		798			767	2	%	6	%

Income before income taxes (taxable equivalent)		527		528		513		58			527	—		—

Taxable equivalent adjustment		6		6		6		6			6	—		—
Applicable income taxes		145		146		148		(14	)		144	(1	%)	1	%

Net income available to common shareholders (a)		376		375		359		66			377	—		—

Earnings per share, diluted	$	0.71	$	0.69	$	0.65	$	0.12		$	0.68	3	%	4	%

(a)	Dividends on preferred stock are $.185 million for all quarters presented


	For the Three Months Ended															% Change
	September 2007			June 2007			March 2007			December 2006			September 2006			Seq		Yr/Yr
Interest Income ($ in millions)
Total interest income (taxable equivalent)	$	1,535		$	1,495		$	1,466		$	1,551		$	1,540		3	%	—
Total interest expense		775			750			724			807			821		3	%	(6	%)

Net interest income (taxable equivalent)	$	760		$	745		$	742		$	744		$	719		2	%	6	%

Average Yield
Yield on interest-earning assets		6.74	%		6.76	%		6.79	%		6.58	%		6.40	%	—		5	%
Yield on interest-bearing liabilities		4.04	%		4.08	%		4.07	%		4.17	%		4.14	%	(1	%)	(2	%)

Net interest rate spread (taxable equivalent)		2.70	%		2.68	%		2.72	%		2.41	%		2.26	%	1	%	19	%

Net interest margin (taxable equivalent)		3.34	%		3.37	%		3.44	%		3.16	%		2.99	%	(1	%)	12	%
Average Balances ($ in millions)
Loans and leases, including held for sale	$	78,244		$	77,048		$	75,861		$	75,262		$	73,938		2	%	6	%
Total securities and other short-term investments		12,129			11,711			11,673			18,262			21,582		4	%	(44	%)
Total interest-bearing liabilities		76,070			73,735			72,148			76,769			78,735		3	%	(3	%)
Shareholders’ equity		9,325			9,599			9,970			10,150			9,878		(3	%)	(6	%)

Net Interest Income

Net interest income of $760 million on a taxable equivalent basis was up $15 million, or two percent, from the second quarter. Growth was driven by a two percent increase in earning assets, wider asset spreads, and lower wholesale borrowing rates during the quarter. Otherwise, the following factors offset one another in their effect on net interest income. Interest reversals on higher nonperforming assets as well as issuance of trust preferred securities and share repurchases in the second and third quarters lowered net interest income, while net interest income benefited from $6 million in dividend rate adjustments associated with the agreement to repurchase our REIT preferred stock, modest reductions in consumer deposit rates, and a higher day count. The net interest margin was 3.34 percent, down 3 bps. The margin was reduced by the impact of interest reversals on nonperforming loans, day count, and the issuance of trust preferred securities and share repurchases, offset by the benefit of the REIT dividends. Otherwise, wider asset spreads and lower wholesale borrowing costs produced modest margin expansion.

Compared with the third quarter 2006, net interest income increased $41 million, or six percent, and the net interest margin expanded 35 bps, primarily the result of the fourth quarter 2006 balance sheet actions.

Average Loans


	For the Three Months Ended										% Change
	September 2007		June 2007		March 2007		December 2006		September 2006		Seq		Yr/Yr
Average Loans and Leases ($ in millions)
Commercial:
Commercial loans	$	22,345	$	21,587	$	20,908	$	21,228	$	20,879	4	%	7	%
Commercial mortgage		11,117		11,030		10,566		9,929		9,833	1	%	13	%
Commercial construction		5,499		5,595		6,014		6,099		5,913	(2	%)	(7	%)
Commercial leases		3,700		3,678		3,661		3,762		3,740	1	%	(1	%)

Subtotal - commercial loans and leases		42,661		41,890		41,149		41,018		40,365	2	%	6	%

Consumer:
Residential mortgage loans		10,396		10,201		10,166		10,038		9,699	2	%	7	%
Home equity		11,752		11,886		12,072		12,225		12,174	(1	%)	(3	%)
Automobile loans		10,865		10,552		10,230		9,834		9,522	3	%	14	%
Credit card		1,366		1,248		1,021		915		870	9	%	57	%
Other consumer loans and leases		1,204		1,271		1,223		1,232		1,308	(5	%)	(8	%)

Subtotal - consumer loans and leases		35,583		35,158		34,712		34,244		33,573	1	%	6	%

Total average loans and leases	$	78,244	$	77,048	$	75,861	$	75,262	$	73,938	2	%	6	%

Average loan and lease balances grew two percent sequentially and six percent over the third quarter last year. Average commercial loans and leases grew two percent sequentially and six percent compared with the year ago quarter. Average C&I loan growth was four percent sequentially and reflects growth in customer balances related to the disruption in wholesale capital markets. Commercial mortgage balances grew $87 million and commercial construction loans declined $96 million, reflecting the conversion of construction loans to permanent financing and otherwise low levels of activity in this sector. Consumer loans and leases grew one percent sequentially and six percent compared with the year ago quarter, reflecting strong auto loan and credit card growth, offset by anticipated run-off in the consumer lease portfolio totaling $381 million versus third quarter 2006. Excluding this run-off, consumer loans and leases grew seven percent versus the quarter a year ago.

Average Deposits


	For the Three Months Ended										% Change
	September 2007		June 2007		March 2007		December 2006		September 2006		Seq		Yr/Yr
Average Deposits ($ in millions)
Demand deposits	$	13,143	$	13,370	$	13,185	$	13,882	$	13,642	(2	%)	(4	%)
Interest checking		14,334		15,061		15,509		15,744		16,251	(5	%)	(12	%)
Savings		15,390		14,620		13,689		12,812		12,279	5	%	25	%
Money market		6,247		6,244		6,377		6,572		6,371	—		(2	%)
Foreign office (a)		1,808		1,637		1,343		1,047		770	10	%	135	%

Subtotal - Transaction deposits		50,922		50,932		50,103		50,057		49,313	—		3	%

Other time		10,290		10,780		11,037		10,991		10,794	(5	%)	(5	%)

Subtotal - Core deposits		61,212		61,712		61,140		61,048		60,107	(1	%)	2	%

Certificates - $100,000 and over		6,062		6,511		6,682		6,750		6,415	(7	%)	(5	%)
Other foreign office		1,981		732		364		1,711		2,898	171	%	(32	%)

Total deposits	$	69,255	$	68,955	$	68,186	$	69,509	$	69,420	—		—

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

Average core deposits were down one percent sequentially and grew two percent over third quarter 2006. Strong growth in savings was largely offset by declines in interest checking, CDs and commercial demand deposits. Retail core deposits decreased two percent sequentially, driven primarily by growth in savings that was more than offset by declines in interest

checking and CDs, and were up two percent from a year ago as savings and DDA balance growth more than offset declines in interest checking and CDs. Commercial core deposits grew one percent both sequentially and from the third quarter 2006.

Weighted average rates paid on interest-bearing core deposits declined to 3.36 percent compared with 3.42 percent in the second quarter. This reflected a modest reduction in rates paid across certain product offerings, partially offset by a continued shift from DDA and interest checking into higher rate deposit products, primarily savings and money market accounts.


	For the Three Months Ended											% Change
	September 2007		June 2007		March 2007		December 2006			September 2006		Seq		Yr/Yr
Noninterest Income ($ in millions)
Electronic payment processing revenue	$	253	$	243	$	225	$	232		$	218	4	%	16	%
Service charges on deposits		151		142		126		122			134	6	%	13	%
Investment advisory revenue		95		97		96		90			89	(3	%)	7	%
Corporate banking revenue		91		88		83		82			79	3	%	15	%
Mortgage banking net revenue		26		41		40		30			36	(36	%)	(28	%)
Other noninterest income		93		96		78		58			87	(3	%)	6	%
Securities gains (losses), net		13		—		—		(398	)		19	NM		(32	%)
Securities gains, net - non-qualifying hedges on mortgage servicing rights		—		—		—		3			—	NM		NM

Total noninterest income	$	722	$	707	$	648	$	219		$	662	2	%	9	%

Noninterest Income

Noninterest income rose $15 million sequentially, or two percent, on higher revenues in payment processing, deposit service charges and corporate banking, as securities gains were more than offset by a sequential reduction in mortgage banking revenue. Compared with third quarter 2006, noninterest income grew nine percent, with growth across nearly every category except mortgage banking. We saw particular year-over-year strength in electronic payment processing revenue, deposit service charges and corporate banking revenue. Excluding securities gains, mortgage banking, and other noninterest income, sequential growth was three percent and year-over-year growth was 13 percent.

Electronic payment processing revenue of $253 million increased four percent sequentially and 16 percent over last year, on strong growth in merchant processing and card issuer interchange offset by slower growing business financial institutions revenue. We expect growth in merchant processing to approximate current levels as we continue adding large, national merchant accounts. Higher card usage and an increase in credit card accounts, stemming from success in our initiative to increase our customer penetration, drove increased card issuer interchange. Higher card usage volumes drove financial institutions revenue growth.

Service charges on deposits of $151 million increased six percent sequentially and 13 percent versus the same quarter last year. Retail service charges increased 11 percent from the second quarter, driven by strong new account openings and higher levels of customer activity. Retail deposit revenue grew 19 percent compared with the year ago quarter. Commercial service charges increased by one percent sequentially and increased five percent compared with last year.

Investment advisory revenue of $95 million was down three percent sequentially and up seven percent over third quarter last year. Private bank revenue increased three percent sequentially and was up 10 percent from the same quarter last year. Brokerage fee revenue declined nine percent sequentially, reflecting seasonality and volatile equity markets in the third quarter, and increased seven percent year-over-year due to growth in the number of licensed brokers.

Corporate banking revenue of $91 million increased three percent sequentially and 15 percent year-over-year, reflecting our continued efforts to build out our corporate banking capabilities. Growth was driven by higher letter of credit fees and foreign exchange revenue, as well as loan syndications and asset backed securities activity.

Mortgage banking net revenue totaled $26 million, compared with $41 million last quarter and $36 million in the prior year quarter, with the reduction from prior quarters primarily attributable to lower gain-on-sale margins realized during the quarter. Mortgage originations of $3.0 billion were down from $3.3 billion in second quarter 2007 and up from $2.3 billion in third quarter 2006. Gains on loan sales and other fees of $9 million declined from $25 million in the second quarter and $21 million in third quarter 2006. Gains were significantly affected by liquidity issues in mortgage markets during the third quarter, resulting in wider credit spreads. Third quarter 2007 results included the impact of $3 million in mark-to-market losses on $470 million of jumbo mortgages and $110 million of Alt-A mortgages, previously held for sale, which were transferred to the loan portfolio. We expect to hold future jumbo loan production in our portfolio, while current Alt-A production is being underwritten and delivered within agency flow sale agreements. Net servicing revenue, before MSR valuation adjustments, totaled $14 million in the third quarter, compared with $13 million in the second quarter and $13 million a year ago. The MSR valuation and related mark-to-market adjustments on free-standing derivatives netted to a positive $3 million adjustment in the third quarter, the same as in the second and year ago quarters. The mortgage-servicing asset, net of the valuation reserve, was $621 million at quarter end on a servicing portfolio of $33.1 billion.

Securities gains and losses were $13 million in net gains on investment securities in the third quarter of 2007 compared with net gains of $19 million in the third quarter of 2006. Results last year consisted of $53 million in gains from sale of MasterCard, Inc. shares and $34 million of losses on investment securities.

Other noninterest income totaled $93 million in the third quarter compared with $96 million last quarter and $87 million in the same quarter last year. Included in third quarter 2007 results were a gain of $15 million on the sale of FDIC deposit insurance credits and a loss of $6 million on auto loans held for securitization. Last quarter’s results included a $16 million gain on sale of $89 million in certain non-strategic credit card accounts. Third quarter 2006 results included net gains totaling $10.5 million from the sale of three Indiana branches and the sale of $23 million of out-of-footprint credit card receivables.

Noninterest Expense


	For the Three Months Ended										% Change
	September 2007		June 2007		March 2007		December 2006		September 2006		Seq		Yr/Yr
Noninterest Expense ($ in millions)
Salaries, wages and incentives	$	310	$	309	$	292	$	300	$	288	1	%	8	%
Employee benefits		67		68		87		61		74	(2	%)	(10	%)
Payment processing expense		105		97		92		89		84	9	%	25	%
Net occupancy expense		66		68		65		65		63	(2	%)	6	%
Technology and communications		41		41		40		39		36	—		15	%
Equipment expense		30		31		29		30		32	(2	%)	(7	%)
Other noninterest expense		197		189		188		214		190	4	%	4	%

Total noninterest expense	$	816	$	803	$	793	$	798	$	767	2	%	6	%

Noninterest expense of $816 million increased two percent from second quarter 2007 and increased six percent from third quarter 2006. Payment processing expense growth associated with the increase in processing activity was a significant driver of overall expense growth. Otherwise, expense growth was flat sequentially and four percent versus a year ago. Salaries, wages and incentives were up $1 million sequentially, reflecting higher revenue-based incentives partially offset by lower salaries and wages. Second quarter 2007 results included $5 million in severance expense associated with expense reduction initiatives.

Compared with the third quarter of 2006, noninterest expense increased six percent as salaries, wages and incentives were up eight percent largely as a result of higher performance-based compensation. Employee benefits expense included $6 million in costs associated with pension settlement expense in the third quarter, compared with $8 million in the third quarter last year. Payment processing expense growth of 25 percent was driven by similar growth in transaction volumes. Third quarter 2006 results included an $11 million charge associated with early extinguishment of debt. Year-over-year expense growth in other categories largely reflected higher de novo related expenses, up $7 million, and technology investments.

Credit Quality


	For the Three Months Ended
	September 2007		June 2007		March 2007		December 2006		September 2006
Total net losses charged off ($ in millions)
Commercial loans	($23	)	($24	)	($15	)	($29	)	($25	)
Commercial mortgage loans	(8	)	(16	)	(7	)	(11	)	(7	)
Commercial construction loans	(5	)	(7	)	(6	)	(3	)	(1	)
Commercial leases	—		—		(1	)	—		1
Residential mortgage loans	(9	)	(9	)	(7	)	(8	)	(5	)
Home equity	(27	)	(20	)	(17	)	(14	)	(14	)
Automobile loans	(25	)	(15	)	(16	)	(19	)	(15	)
Credit card	(13	)	(10	)	(8	)	(10	)	(8	)
Other consumer loans and leases	(5	)	(1	)	6		(3	)	(5	)

Total net losses charged off	(115	)	(102	)	(71	)	(97	)	(79	)
Total losses	(127	)	(124	)	(99	)	(118	)	(96	)
Total recoveries	12		22		28		21		17

Total net losses charged off	($115	)	($102	)	($71	)	($97	)	($79	)
Ratios
Net losses charged off as a percent of average loans and leases (excluding held for sale)	0.60	%	0.55	%	0.39	%	0.52	%	0.43	%
Commercial	0.33	%	0.44	%	0.27	%	0.42	%	0.32	%
Consumer	0.93	%	0.68	%	0.53	%	0.64	%	0.57	%

Net charge-offs as a percentage of average loans and leases were 60 bps in the third quarter, compared with 55 bps last quarter and 43 bps in the third quarter of 2006. Sequential growth was primarily due to higher consumer charge-offs and lower commercial recoveries. Gross charge-offs and recoveries were 66 bps and 6 bps, respectively, of loans and leases, compared with 66 bps and 11 bps in the second quarter of 2007. Consumer net charge-offs of $79 million, or 93 bps, grew $24 million from the second quarter, driven primarily by losses in the auto and home equity portfolios. Auto charge-offs increased $10 million compared with last quarter primarily driven by higher deficiency balances on repossessed autos. Home equity losses increased $7 million compared with last quarter primarily due to increased losses on higher LTV and brokered second mortgage loans, reflecting borrower stress and lower home price valuations in certain geographies. Commercial net charge-offs of $36 million, or 33 bps, declined $11 million compared with the second quarter, driven by lower losses in the C&I and commercial mortgage portfolio and lower C&I recoveries. No commercial charge-off recorded in the third quarter exceeded $2 million. Second quarter net charge-offs included $3 million in losses related to the sale of $27 million in nonperforming commercial loans, and third quarter 2006 net charge-offs included $3 million in losses on the sale of $17 million in nonperforming commercial loans.


	For the Three Months Ended
	September 2007			June 2007			March 2007			December 2006			September 2006
Allowance for Credit Losses ($ in millions)
Allowance for loan and lease losses, beginning	$	803		$	784		$	771		$	761		$	753
Total net losses charged off		(115	)		(102	)		(71	)		(97	)		(79	)
Provision for loan and lease losses		139			121			84			107			87

Allowance for loan and lease losses, ending		827			803			784			771			761
Reserve for unfunded commitments, beginning		77			79			76			76			74
Provision for unfunded commitments		2			(2	)		3			—			2

Reserve for unfunded commitments, ending		79			77			79			76			76
Components of allowance for credit losses:
Allowance for loan and lease losses		827			803			784			771			761
Reserve for unfunded commitments		79			77			79			76			76

Total allowance for credit losses	$	906		$	880		$	863		$	847		$	837
Ratios
Allowance for loan and lease losses as a percent of loans and leases		1.08	%		1.06	%		1.05	%		1.04	%		1.04	%

Provision for loan and lease losses totaled $139 million in the third quarter, exceeding net charge-offs of $115 million, compared with $121 million last quarter and $87 million in the same quarter last year. The allowance for loan and lease losses represented 1.08 percent of total loans and leases outstanding as of quarter end, compared with 1.06 percent last quarter and 1.04 percent in the same quarter last year.


	For the Three Months Ended
	September 2007			June 2007			March 2007			December 2006			September 2006
Nonperforming Assets and Delinquent Loans ($ in millions)
Nonaccrual loans and leases	$	569		$	406		$	390		$	352		$	320
Other assets, including other real estate owned		137			122			104			103			91

Total nonperforming assets		706			528			494			455			411
Ninety days past due loans and leases		360			302			243			210			196
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned		0.92	%		0.70	%		0.66	%		0.61	%		0.56	%

Nonperforming assets (NPAs) at quarter end were $706 million, or 92 bps of total loans and leases and other real estate owned, up from 70 bps last quarter and 56 bps in the third quarter a year ago. Sequential growth in NPAs was $178 million, or 34 percent. Commercial NPAs of $446 million, or 104 bps, grew $116 million. Commercial construction and commercial mortgage continued to drive commercial NPA growth, particularly in Eastern Michigan, Northeastern Ohio, and Southern Florida which together accounted for two-thirds of the increase in commercial NPAs. Consumer NPAs of $260 million, or 78 bps, grew $62 million, driven primarily by higher first and second mortgage non-accrual loans, including $22 million related to debt restructurings with borrowers as well as higher foreclosed real estate, reflecting the impact of a weaker economy in parts of our footprint and generally lower home prices. Florida and Michigan accounted for almost two-thirds of the consumer NPA increase. Delinquent loans were $360 million, up $58 million from the second quarter, with the growth split evenly between commercial and consumer. Commercial delinquency growth was concentrated in construction lending, particularly in Southern Florida and Eastern Michigan. Consumer growth was driven by residential delinquencies in Florida and Michigan.

Capital Position/Other


	For the Three Months Ended
	September 2007 (a)		June 2007		March 2007		December 2006		September 2006
Capital Position
Average shareholders’ equity to average assets	9.13	%	9.53	%	10.05	%	9.70	%	9.33	%
Tangible equity	6.88	%	6.92	%	7.65	%	7.79	%	7.40	%
Regulatory capital ratios:
Tier I capital	8.50	%	8.13	%	8.71	%	8.39	%	8.64	%
Total risk-based capital	10.91	%	10.54	%	11.19	%	11.07	%	10.61	%
Tier I leverage	9.27	%	8.76	%	9.36	%	8.44	%	8.52	%

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

The tangible equity ratio was relatively flat sequentially, and declined 52 bps compared with the prior year third quarter primarily due to the effect of share repurchases partially offset by lower tangible assets as a result of the fourth quarter 2006 balance sheet actions. Regulatory capital ratios benefited from the issuance of $575 million in trust preferred securities. As previously announced, Fifth Third entered into an agreement to repurchase the outstanding Series B preferred shares of the Fifth Third REIT. The transaction is expected to close in December 2007 and will lower fourth quarter regulatory capital ratios by approximately 65 bps.

During the quarter, we repurchased 2.9 million shares at a total cost of $110 million. As of September 30, 2007, there were 19.2 million shares remaining under our current share repurchase authorization.

Our effective tax rate was 27.9%, similar to the tax rates experienced in the second quarter of 2007 and third quarter of 2006. The third quarter tax rate benefited from certain items that resulted in a net benefit of $8 million after-tax.

On August 16, 2007, Fifth Third Bancorp and First Charter Corporation (“FCTR”) signed a definitive agreement under which Fifth Third will acquire First Charter Bank, which operates 57 branches in North Carolina and two in Atlanta, Georgia. The transaction is expected to close in the first quarter of 2008. On September 21, 2007, Fifth Third and First Horizon Corporation (“FHN”) signed a definitive agreement under which Fifth Third will acquire nine branches in the Atlanta metro area from First Horizon. The transaction is expected to close in the first quarter of 2008. These transactions are expected to reduce first quarter 2008 capital ratios by approximately 45 bps. Additionally, we have received the necessary regulatory approvals to complete our acquisition of R-G Crown Bank, expected to close in November 2007. This transaction is expected to reduce fourth quarter capital ratios by approximately 40 bps.

Outlook

The following outlook represents currently expected full year growth rates compared with full year 2006 results. The outlook does not include the effect of our pending acquisition of R-G Crown Bank. Our outlook is based on current expectations as of the date of this release for results within our businesses; prevailing views related to economic growth, inflation, unemployment and other economic factors; and market forward interest rate expectations. These expectations are inherently subject to risks and uncertainties. There are a number of factors that could cause results to differ materially from historical performance and these expectations. We undertake no obligation to update these expectations after the date of this release. Please refer to the cautionary statement at the end of this release for more information.


Category		Growth, percentage, or bps range [change from July]
Net interest income		Mid single digits

Net interest margin		3.35-3.40%

Noninterest income*		High single digits

Noninterest expense**		Mid-to-high single digits

Loans		Mid single digits

Core deposits		Low-to-mid single digits

Net charge-offs		Mid-50 bps range

Effective tax rate [non-tax equivalent]		28.5-29.0%

Tangible equity/tangible asset ratio		2007 target 6.5% [including R-G Crown]

*	comparison with the prior year excludes $415 million of losses recorded in noninterest income related to fourth quarter 2006 balance sheet actions

**	comparison with the prior year excludes $49 million of charges: $10 million in third quarter 2006 related to the early retirement of debt, and $39 million in fourth quarter 2006 related to termination of financing agreements

Conference Call

Fifth Third will host a conference call to discuss these financial results at 8:30 a.m. (Eastern Time) today. The audio webcast is available through the Fifth Third Investor Relations website at www.53.com (click on “About Fifth Third” then “Investor Relations”). Participants are advised to access the conference call at least 15 minutes prior to the scheduled start time. The dial-in number is 877-309-0967 for domestic access and 706-679-3977 for international access (password: Fifth Third).

If you are unable to listen to the live call you may access a webcast replay or podcast through the Fifth Third Investor Relations website at www.53.com. Additionally, a replay of the conference call will be available until Friday, November 2^nd by dialing 800-642-1687 for domestic access and 706-645-9291 for international access (passcode 5024648#).

Corporate Profile

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $104 billion in assets, operates 18 affiliates with 1,181 full-service Banking Centers, including 104 Bank Mart^® locations open seven days a week inside select grocery stores and 2,153 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania and Missouri. Fifth Third operates five main businesses: Commercial Banking, Branch Banking, Consumer Lending, Investment Advisors and Fifth Third Processing Solutions. Fifth Third is among the largest money managers in the Midwest and, as of September 30, 2007, has $232 billion in assets under care, of which it managed $34 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded through the NASDAQ^® National Global Select Market System under the symbol “FITB.”

FORWARD-LOOKING STATEMENTS

This report may contain forward-looking statements about Fifth Third Bancorp and/or the company as combined 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 report 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) general economic conditions, either national or in the states in which Fifth Third, one or more acquired entities and/or the combined company do business, are less favorable than expected; (2) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (3) changes in the interest rate environment reduce interest margins; (4) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (5) our ability to maintain required capital levels and adequate sources of funding and liquidity; (6) changes and trends in capital markets; (7) competitive pressures among depository institutions increase significantly; (8) effects of critical accounting policies and judgments; (9) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; (10) legislative or regulatory changes or actions, or significant litigation, adversely affect Fifth Third, one or more acquired entities and/or the combined company or the businesses in which Fifth Third, one or more acquired entities and/or the combined company are engaged; (11) ability to maintain favorable ratings from rating agencies; (12) fluctuation of Fifth Third’s stock price; (13) ability to attract and retain key personnel; (14) ability to receive dividends from its subsidiaries; (15) potentially dilutive effect of future acquisitions on current shareholders' ownership of Fifth Third; (16) effects of accounting or financial results of one or more acquired entity; (17) difficulties in combining the operations of acquired entities; (18) ability to secure confidential information through the use of computer systems and telecommunications network; and (19) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2006, filed with the United States Securities and Exchange Commission (SEC). Copies of this filing are available at no cost on the SEC's Web site at www.sec.gov or on the Fifth Third’s Web site at www.53.com. Fifth Third undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this report.

# # #

LOGO

Quarterly Financial Review for September 30, 2007

Table of Contents


Financial Highlights		12-13
Consolidated Statements of Income		14
Consolidated Statements of Income (Taxable Equivalent)		15
Consolidated Balance Sheets		16-17
Consolidated Statements of Changes in Shareholders’ Equity		18
Average Balance Sheet and Yield Analysis		19-21
Summary of Loans and Leases		22
Regulatory Capital		23
Summary of Credit Loss Experience		24
Asset Quality		25

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)


	For the Three Months Ended									% Change				Year to Date						% Change
	September 2007			June 2007			September 2006			Seq		Yr/Yr		September 2007			September 2006			Yr/Yr
Income Statement Data
Net interest income (a)	$	760		$	745		$	719		2	%	6	%	$	2,247		$	2,154		4	%
Noninterest income		722			707			662		2	%	9	%		2,077			1,934		7	%
Total revenue (a)		1,482			1,452			1,381		2	%	7	%		4,324			4,088		6	%
Provision for loan and lease losses		139			121			87		14	%	59	%		344			236		45	%
Noninterest expense		816			803			767		2	%	6	%		2,411			2,257		7	%
Net income		376			376			377		—		—			1,111			1,123		(1	%)
Common Share Data
Earnings per share, basic	$	0.71		$	0.69		$	0.68		3	%	4	%	$	2.05		$	2.02		1	%
Earnings per share, diluted		0.71			0.69			0.68		3	%	4	%		2.04			2.01		1	%
Cash dividends per common share	$	0.42		$	0.42		$	0.40		—		5	%	$	1.26		$	1.18		7	%
Book value per share		17.54			17.16			17.96		2	%	(2	%)		17.54			17.96		(2	%)
Dividend payout ratio		59.3	%		59.7	%		59.2	%	(1	%)	—			61.1	%		58.6	%	4	%
Market price per share:
High	$	41.17		$	43.32		$	40.18		(5	%)	2	%	$	43.32		$	41.43		5	%
Low		33.60			37.88			35.95		(11	%)	(7	%)		33.60			35.86		(6	%)
End of period		33.88			39.77			38.08		(15	%)	(11	%)		33.88			38.08		(11	%)
Common shares outstanding (in thousands)		532,627			535,697			558,066		(1	%)	(5	%)		532,627			558,066		(5	%)
Average common shares outstanding (in thousands):
Basic		530,123			540,264			555,565		(2	%)	(5	%)		540,551			554,985		(3	%)
Diluted		532,471			543,228			557,949		(2	%)	(5	%)		543,212			557,440		(3	%)
Market capitalization	$	18,045		$	21,305		$	21,251		(15	%)	(15	%)	$	18,045		$	21,251		(15	%)
Price/earnings ratio (b)		15.61			18.58			14.53		(16	%)	7	%		15.61			14.53		7	%
Financial Ratios
Return on average assets		1.46	%		1.49	%		1.41	%	(2	%)	4	%		1.47	%		1.42	%	4	%
Return on average equity		16.0	%		15.7	%		15.1	%	2	%	6	%		15.4	%		15.5	%	(1	%)
Noninterest income as a percent of total revenue		49	%		49	%		48	%	—		2	%		48	%		47	%	2	%
Average equity as a percent of average assets		9.13	%		9.53	%		9.33	%	(4	%)	(2	%)		9.56	%		9.19	%	4	%
Tangible equity		6.88	%		6.92	%		7.40	%	(1	%)	(7	%)		6.88	%		7.40	%	(7	%)
Net interest margin (a)		3.34	%		3.37	%		2.99	%	(1	%)	12	%		3.38	%		3.03	%	12	%
Efficiency (a)		55.0	%		55.3	%		55.5	%	(1	%)	(1	%)		55.8	%		55.2	%	1	%
Effective tax rate		27.9	%		28.1	%		27.6	%	(1	%)	1	%		28.4	%		28.9	%	(2	%)
Credit Quality
Net losses charged off	$	115		$	102		$	79		13	%	46	%	$	288		$	219		32	%
Net losses charged off as a percent of average loans and leases		0.60	%		0.55	%		0.43	%	9	%	40	%		0.51	%		0.41	%	24	%
Allowance for loan and lease losses as a percent of loans and leases		1.08	%		1.06	%		1.04	%	2	%	4	%		1.08	%		1.04	%	4	%
Allowance for credit losses as a percent of loans and leases		1.19	%		1.16	%		1.14	%	3	%	4	%		1.19	%		1.14	%	4	%
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned		0.92	%		0.70	%		0.56	%	31	%	64	%		0.92	%		0.56	%	64	%
Average Balances
Loans and leases, including held for sale	$	78,244		$	77,048		$	73,938		2	%	6	%	$	77,060		$	72,896		6	%
Total securities and other short-term investments		12,129			11,711			21,582		4	%	(44	%)		11,839			22,309		(47	%)
Total assets		102,131			100,767			105,868		1	%	(4	%)		100,707			105,452		(4	%)
Transaction deposits (d)		50,922			50,932			49,313		—		3	%		50,657			49,549		2	%
Core deposits (e)		61,212			61,712			60,107		(1	%)	2	%		61,357			59,883		2	%
Wholesale funding (f)		28,001			25,393			32,270		10	%	(13	%)		25,875			32,396		(20	%)
Shareholders’ equity		9,325			9,599			9,878		(3	%)	(6	%)		9,629			9,696		(1	%)
Regulatory Capital Ratios (c)
Tier I capital		8.50	%		8.13	%		8.64	%	5	%	(2	%)		8.50	%		8.64	%	(2	%)
Total risk-based capital		10.91	%		10.54	%		10.61	%	4	%	3	%		10.91	%		10.61	%	3	%
Tier I leverage		9.27	%		8.76	%		8.52	%	6	%	9	%		9.27	%		8.52	%	9	%
Operations
Banking centers		1,181			1,167			1,145		1	%	3	%		1,181			1,145		3	%
ATMs		2,153			2,132			2,114		1	%	2	%		2,153			2,114		2	%
Full-time equivalent employees		20,775			21,033			21,301		(1	%)	(2	%)		20,775			21,301		(2	%)

(a)	Presented on a fully taxable equivalent basis

(b)	Based on the most recent twelve-month diluted earnings per share and end of period stock prices (c) Current period regulatory capital ratios are estimates

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

(e)	Includes transaction deposits plus other time deposits

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

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)


	For the Three Months Ended
	September 2007			June 2007			March 2007			December 2006			September 2006
Income Statement Data
Net interest income (a)	$	760		$	745		$	742		$	744		$	719
Noninterest income		722			707			648			219			662
Total revenue (a)		1,482			1,452			1,390			963			1,381
Provision for loan and lease losses		139			121			84			107			87
Noninterest expense		816			803			793			798			767
Net income		376			376			359			66			377
Common Share Data
Earnings per share, basic	$	0.71		$	0.69		$	0.65		$	0.12		$	0.68
Earnings per share, diluted		0.71			0.69			0.65			0.12			0.68
Cash dividends per common share	$	0.42		$	0.42		$	0.42		$	0.40		$	0.40
Book value per share		17.54			17.16			17.82			18.02			17.96
Dividend payout ratio		59.3	%		59.7	%		64.5	%		338.0	%		59.2	%
Market price per share:
High	$	41.17		$	43.32		$	41.41		$	41.57		$	40.18
Low		33.60			37.88			37.93			37.75			35.95
End of period		33.88			39.77			38.69			40.93			38.08
Common shares outstanding (in thousands)		532,627			535,697			550,077			556,253			558,066
Average common shares outstanding (in thousands):
Basic		530,123			540,264			551,501			554,978			555,565
Diluted		532,471			543,228			554,175			557,654			557,949
Market capitalization	$	18,045		$	21,305		$	21,282		$	22,767		$	21,251
Price/earnings ratio (b)		15.61			18.58			18.08			19.13			14.53
Financial Ratios
Return on average assets		1.46	%		1.49	%		1.47	%		0.25	%		1.41	%
Return on average equity		16.0	%		15.7	%		14.6	%		2.6	%		15.1	%
Noninterest income as a percent of total revenue		49	%		49	%		47	%		23	%		48	%
Average equity as a percent of average assets		9.13	%		9.53	%		10.05	%		9.70	%		9.33	%
Tangible equity		6.88	%		6.92	%		7.65	%		7.79	%		7.40	%
Net interest margin (a)		3.34	%		3.37	%		3.44	%		3.16	%		2.99	%
Efficiency (a)		55.0	%		55.3	%		57.0	%		82.9	%		55.5	%
Effective tax rate		27.9	%		28.1	%		29.3	%		(27.0	%)		27.6	%
Credit Quality
Net losses charged off	$	115		$	102		$	71		$	97		$	79
Net losses charged off as a percent of average loans and leases		0.60	%		0.55	%		0.39	%		0.52	%		0.43	%
Allowance for loan and lease losses as a percent of loans and leases		1.08	%		1.06	%		1.05	%		1.04	%		1.04	%
Allowance for credit losses as a percent of loans and leases		1.19	%		1.16	%		1.15	%		1.14	%		1.14	%
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned		0.92	%		0.70	%		0.66	%		0.61	%		0.56	%
Average Balances
Loans and leases, including held for sale	$	78,244		$	77,048		$	75,861		$	75,262		$	73,938
Total securities and other short-term investments		12,129			11,711			11,673			18,262			21,582
Total assets		102,131			100,767			99,192			104,602			105,868
Transaction deposits (d)		50,922			50,932			50,103			50,057			49,313
Core deposits (e)		61,212			61,712			61,140			61,048			60,107
Wholesale funding (f)		28,001			25,393			24,193			29,603			32,270
Shareholders’ equity		9,325			9,599			9,970			10,150			9,878
Regulatory Capital Ratios (c)
Tier I capital		8.50	%		8.13	%		8.71	%		8.39	%		8.64	%
Total risk-based capital		10.91	%		10.54	%		11.19	%		11.07	%		10.61	%
Tier I leverage		9.27	%		8.76	%		9.36	%		8.44	%		8.52	%
Operations
Banking centers		1,181			1,167			1,161			1,150			1,145
ATMs		2,153			2,132			2,104			2,096			2,114
Full-time equivalent employees		20,775			21,033			21,442			21,362			21,301

(a)	Presented on a fully taxable equivalent basis

(b)	Based on the most recent twelve-month diluted earnings per share and end of period stock prices

(c)	Current period regulatory capital ratios are estimates

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

(e)	Includes transaction deposits plus other time deposits

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

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income

$ in millions

(unaudited)


	For the Three Months Ended						% Change				Year to Date				% Change
	September 2007		June 2007		September 2006		Seq		Yr/Yr		September 2007		September 2006		Yr/Yr
Interest Income
Interest and fees on loans and leases	$	1,376	$	1,343	$	1,294	2	%	6	%	$	4,032	$	3,668	10	%
Interest on securities		147		143		238	3	%	(38	%)		433		735	(41	%)
Interest on other short-term investments		6		3		2	136	%	171	%		12		7	78	%

Total interest income		1,529		1,489		1,534	3	%	—			4,477		4,410	2	%
Interest Expense
Interest on deposits		511		505		510	1	%	—			1,514		1,392	9	%
Interest on short-term borrowings		93		72		106	29	%	(12	%)		224		302	(26	%)
Interest on long-term debt		171		173		205	(1	%)	(16	%)		510		582	(12	%)

Total interest expense		775		750		821	3	%	(6	%)		2,248		2,276	(1	%)

Net Interest Income		754		739		713	2	%	6	%		2,229		2,134	4	%
Provision for loan and lease losses		139		121		87	14	%	59	%		344		236	45	%

Net interest income after provision for loan and lease losses		615		618		626	(1	%)	(2	%)		1,885		1,898	(1	%)
Noninterest Income
Electronic payment processing revenue		253		243		218	4	%	16	%		721		626	15	%
Service charges on deposits		151		142		134	6	%	13	%		419		395	6	%
Investment advisory revenue		95		97		89	(3	%)	7	%		288		276	4	%
Corporate banking revenue		91		88		79	3	%	15	%		261		236	11	%
Mortgage banking net revenue		26		41		36	(36	%)	(28	%)		107		125	(14	%)
Other noninterest income		93		96		87	(3	%)	6	%		267		242	10	%
Securities gains (losses), net		13		—		19	NM		(32	%)		14		34	(59	%)
Securities gains, net - non-qualifying hedges on mortgage servicing rights		—		—		—	NM		NM			—		—	NM

Total noninterest income		722		707		662	2	%	9	%		2,077		1,934	7	%
Noninterest Expense
Salaries, wages and incentives		310		309		288	1	%	8	%		912		875	4	%
Employee benefits		67		68		74	(2	%)	(10	%)		222		230	(4	%)
Payment processing expense		105		97		84	9	%	25	%		294		236	25	%
Net occupancy expense		66		68		63	(2	%)	6	%		199		180	11	%
Technology and communications		41		41		36	—		15	%		122		102	20	%
Equipment expense		30		31		32	(2	%)	(7	%)		90		86	5	%
Other noninterest expense		197		189		190	4	%	4	%		572		548	4	%

Total noninterest expense		816		803		767	2	%	6	%		2,411		2,257	7	%
Income before income taxes and cumulative effect		521		522		521	—		—			1,551		1,575	(2	%)
Applicable income taxes		145		146		144	(1	%)	1	%		440		456	(4	%)

Income before cumulative effect		376		376		377	—		—			1,111		1,119	(1	%)
Cumulative effect of change in accounting principle, net of tax (a)		—		—		—	NM		NM			—		4	(100	%)

Net income	$	376	$	376	$	377	—		—		$	1,111	$	1,123	(1	%)

Net income available to common shareholders (b)	$	376	$	375	$	377	—		—		$	1,110	$	1,122	(1	%)

(a)	Reflects a benefit of $3.5 million (net of $1.7 million of tax) for the adoption of SFAS No. 123(R) as of January 1, 2006 due to the recognition of an estimate of forfeiture experience to be realized for all stock-based awards

(b)	Dividends on preferred stock are $.185 million for all quarters presented

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income (Taxable Equivalent)

$ in millions

(unaudited)


	For the Three Months Ended
	September 2007		June 2007		March 2007		December 2006			September 2006
Interest Income
Interest and fees on loans and leases	$	1,376	$	1,343	$	1,314	$	1,332		$	1,294
Interest on securities		147		143		143		199			238
Interest on other short-term investments		6		3		3		14			2

Total interest income		1,529		1,489		1,460		1,545			1,534
Taxable equivalent adjustment		6		6		6		6			6

Total interest income (taxable equivalent)		1,535		1,495		1,466		1,551			1,540
Interest Expense
Interest on deposits		511		505		498		518			510
Interest on short-term borrowings		93		72		59		100			106
Interest on long-term debt		171		173		167		189			205

Total interest expense		775		750		724		807			821

Net interest income (taxable equivalent)		760		745		742		744			719
Provision for loan and lease losses		139		121		84		107			87

Net interest income (taxable equivalent) after provision for loan and lease losses		621		624		658		637			632
Noninterest Income
Electronic payment processing revenue		253		243		225		232			218
Service charges on deposits		151		142		126		122			134
Investment advisory revenue		95		97		96		90			89
Corporate banking revenue		91		88		83		82			79
Mortgage banking net revenue		26		41		40		30			36
Other noninterest income		93		96		78		58			87
Securities gains (losses), net		13		—		—		(398	)		19
Securities gains, net - non-qualifying hedges on mortgage servicing rights		—		—		—		3			—

Total noninterest income		722		707		648		219			662
Noninterest Expense
Salaries, wages and incentives		310		309		292		300			288
Employee benefits		67		68		87		61			74
Payment processing expense		105		97		92		89			84
Net occupancy expense		66		68		65		65			63
Technology and communications		41		41		40		39			36
Equipment expense		30		31		29		30			32
Other noninterest expense		197		189		188		214			190

Total noninterest expense		816		803		793		798			767

Income before income taxes and cumulative effect (taxable equivalent)		527		528		513		58			527
Taxable equivalent adjustment		6		6		6		6			6

Income before income taxes and cumulative effect		521		522		507		52			521
Applicable income taxes		145		146		148		(14	)		144

Income before cumulative effect		376		376		359		66			377
Cumulative effect of change in accounting principle, net of tax		—		—		—		—			—

Net income	$	376	$	376	$	359	$	66		$	377

Net income available to common shareholders (a)	$	376	$	375	$	359	$	66		$	377

(a)	Dividends on preferred stock are $.185 million for all quarters presented

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)


	As of									% Change
	September 2007			June 2007			September 2006			Seq		Yr/Yr
Assets
Cash and due from banks	$	2,540		$	2,327		$	2,399		9	%	6	%
Available-for-sale and other securities (a)		10,777			11,015			19,514		(2	%)	(45	%)
Held-to-maturity securities (b)		346			346			359		—		(4	%)
Trading securities		155			148			164		5	%	(5	%)
Other short-term investments		720			404			125		78	%	476	%
Loans held for sale		2,761			1,708			872		62	%	216	%
Portfolio loans and leases:
Commercial loans		22,649			22,152			21,260		2	%	7	%
Commercial mortgage loans		11,090			11,044			9,879		—		12	%
Commercial construction loans		5,463			5,469			5,879		—		(7	%)
Commercial leases		3,710			3,697			3,751		—		(1	%)
Residential mortgage loans		9,057			8,477			8,811		7	%	3	%
Home equity		11,737			11,780			12,235		—		(4	%)
Automobile loans		10,006			10,714			9,599		(7	%)	4	%
Credit card		1,460			1,263			876		16	%	67	%
Other consumer loans and leases		1,082			1,113			1,190		(3	%)	(9	%)

Portfolio loans and leases		76,254			75,709			73,480		1	%	4	%
Allowance for loan and lease losses		(827	)		(803	)		(761	)	3	%	9	%

Portfolio loans and leases, net		75,427			74,906			72,719		1	%	4	%
Bank premises and equipment		2,127			2,063			1,902		3	%	12	%
Operating lease equipment		283			209			142		35	%	99	%
Goodwill		2,192			2,192			2,193		—		—
Intangible assets		138			147			175		(6	%)	(21	%)
Servicing rights		626			607			504		3	%	24	%
Other assets		6,173			5,318			4,760		16	%	30	%

Total assets	$	104,265		$	101,390		$	105,828		3	%	(1	%)

Liabilities
Deposits:
Demand	$	13,174		$	13,524		$	13,883		(3	%)	(5	%)
Interest checking		14,294			14,672			15,855		(3	%)	(10	%)
Savings		15,599			15,036			12,392		4	%	26	%
Money market		6,163			6,334			6,462		(3	%)	(5	%)
Foreign office		2,014			1,744			846		15	%	138	%
Other time		10,267			10,428			10,818		(2	%)	(5	%)
Certificates - $100,000 and over		5,973			6,204			6,871		(4	%)	(13	%)
Other foreign office		1,898			1,251			1,516		52	%	25	%

Total deposits		69,382			69,193			68,643		—		1	%
Federal funds purchased		5,130			3,824			5,434		34	%	(6	%)
Other short-term borrowings		3,796			3,331			3,833		14	%	(1	%)
Accrued taxes, interest and expenses		2,244			2,114			2,156		6	%	4	%
Other liabilities		1,871			1,780			1,570		5	%	19	%
Long-term debt		12,498			11,957			14,170		5	%	(12	%)

Total liabilities		94,921			92,199			95,806		3	%	(1	%)
Total shareholders’ equity (c)		9,344			9,191			10,022		2	%	(7	%)

Total liabilities and shareholders’ equity	$	104,265		$	101,390		$	105,828		3	%	(1	%)

(a) Amortized cost	$	11,007		$	11,370		$	20,103		(3	%)	(45	%)
(b) Market values		346			346			359		—		(4	%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized		1,300,000			1,300,000			1,300,000		—		—
Outstanding, excluding treasury		532,627			535,697			558,066		(1	%)	(5	%)
Treasury		50,800			47,730			25,361		6	%	100	%

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)


	As of
	September 2007			June 2007			March 2007			December 2006			September 2006
Assets
Cash and due from banks	$	2,540		$	2,327		$	2,244		$	2,737		$	2,399
Available-for-sale and other securities (a)		10,777			11,015			10,592			11,053			19,514
Held-to-maturity securities (b)		346			346			347			356			359
Trading securities		155			148			160			187			164
Other short-term investments		720			404			223			809			125
Loans held for sale		2,761			1,708			1,382			1,150			872
Portfolio loans and leases:
Commercial loans		22,649			22,152			21,479			20,831			21,260
Commercial mortgage loans		11,090			11,044			10,906			10,405			9,879
Commercial construction loans		5,463			5,469			5,688			6,168			5,879
Commercial leases		3,710			3,697			3,687			3,841			3,751
Residential mortgage loans		9,057			8,477			8,484			8,830			8,811
Home equity		11,737			11,780			11,926			12,153			12,235
Automobile loans		10,006			10,714			10,400			10,028			9,599
Credit card		1,460			1,263			1,111			1,004			876
Other consumer loans and leases		1,082			1,113			1,140			1,093			1,190

Portfolio loans and leases		76,254			75,709			74,821			74,353			73,480
Allowance for loan and lease losses		(827	)		(803	)		(784	)		(771	)		(761	)

Portfolio loans and leases, net		75,427			74,906			74,037			73,582			72,719
Bank premises and equipment		2,127			2,063			2,001			1,940			1,902
Operating lease equipment		283			209			212			202			142
Goodwill		2,192			2,192			2,192			2,193			2,193
Intangible assets		138			147			158			166			175
Servicing rights		626			607			572			524			504
Other assets		6,173			5,318			5,704			5,770			4,760

Total assets	$	104,265		$	101,390		$	99,824		$	100,669		$	105,828

Liabilities
Deposits:
Demand	$	13,174		$	13,524		$	13,510		$	14,331		$	13,883
Interest checking		14,294			14,672			15,755			15,993			15,855
Savings		15,599			15,036			14,256			13,181			12,392
Money market		6,163			6,334			6,336			6,584			6,462
Foreign office		2,014			1,744			1,495			1,353			846
Other time		10,267			10,428			10,869			10,987			10,818
Certificates - $100,000 and over		5,973			6,204			6,776			6,628			6,871
Other foreign office		1,898			1,251			191			323			1,516

Total deposits		69,382			69,193			69,188			69,380			68,643
Federal funds purchased		5,130			3,824			1,622			1,421			5,434
Other short-term borrowings		3,796			3,331			2,383			2,796			3,833
Accrued taxes, interest and expenses		2,244			2,114			2,324			2,283			2,156
Other liabilities		1,871			1,780			1,883			2,209			1,570
Long-term debt		12,498			11,957			12,620			12,558			14,170

Total liabilities		94,921			92,199			90,020			90,647			95,806
Total shareholders’ equity (c)		9,344			9,191			9,804			10,022			10,022

Total liabilities and shareholders’ equity	$	104,265		$	101,390		$	99,824		$	100,669		$	105,828

(a) Amortized cost	$	11,007		$	11,370		$	10,754		$	11,236		$	20,103
(b) Market values		346			346			347			356			359
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized		1,300,000			1,300,000			1,300,000			1,300,000			1,300,000
Outstanding, excluding treasury		532,627			535,697			550,077			556,253			558,066
Treasury		50,800			47,730			33,350			27,174			25,361

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

$ in millions

(unaudited)


	For the Three Months Ended						Year to Date
	September 2007			September 2006			September 2007			September 2006
Total shareholders’ equity, beginning	$	9,191		$	9,556		$	10,022		$	9,446
Net income		376			377			1,111			1,123
Other comprehensive income, net of tax:
Change in unrealized gains and (losses):
Available-for-sale securities		81			288			(30	)		13
Qualifying cash flow hedges		13			3			7			8
Change in accumulated other comprehensive income related to employee benefit plans		1			—			4			—

Comprehensive income		471			668			1,092			1,144
Cash dividends declared:
Common stock		(224	)		(223	)		(680	)		(658	)
Preferred stock (a)		—			—			(1	)		(1	)
Stock-based awards exercised, including treasury shares issued		1			6			46			30
Stock-based compensation expense		11			17			46			61
Loans repaid (issued) related to exercise of stock-based awards, net		1			2			3			7
Change in corporate tax benefit related to stock-based compensation		1			(1	)		4			(1	)
Shares acquired for treasury		(110	)		—			(1,084	)		(1	)
Impact of cumulative effect of change in accounting principle (b)		—			—			(98	)		(6	)
Other		2			(3	)		(6	)		1

Total shareholders’ equity, ending	$	9,344		$	10,022		$	9,344		$	10,022

(a)	Dividends on preferred stock are $.185 million for all quarters presented

(b)

2007 includes $96 million impact due to the adoption of FSP FAS 13-2, “Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leverage Lease Transaction” on January 1, 2007 and $2 million impact due to the adoption of FIN No. 48, “Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No. 109” on January 1, 2007. 2006 impact is due to the adoption of SFAS No. 123(R) “Share-Based Payment” on January 1, 2006.

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	For the Three Months Ended									% Change
	September 2007			June 2007			September 2006			Seq		Yr/Yr
Assets
Interest-earning assets:
Commercial loans	$	22,345		$	21,587		$	20,879		4	%	7	%
Commercial mortgage loans		11,117			11,030			9,833		1	%	13	%
Commercial construction loans		5,499			5,595			5,913		(2	%)	(7	%)
Commercial leases		3,700			3,678			3,740		1	%	(1	%)
Residential mortgage loans		10,396			10,201			9,699		2	%	7	%
Home equity		11,752			11,886			12,174		(1	%)	(3	%)
Automobile loans		10,865			10,552			9,522		3	%	14	%
Credit card		1,366			1,248			870		9	%	57	%
Other consumer loans and leases		1,204			1,271			1,308		(5	%)	(8	%)
Taxable securities		11,180			11,030			20,836		1	%	(46	%)
Tax exempt securities		490			508			587		(4	%)	(17	%)
Other short-term investments		459			173			159		166	%	188	%

Total interest-earning assets		90,373			88,759			95,520		2	%	(5	%)
Cash and due from banks		2,228			2,265			2,355		(2	%)	(5	%)
Other assets		10,330			10,524			8,745		(2	%)	18	%
Allowance for loan and lease losses		(800	)		(781	)		(752	)	2	%	6	%

Total assets	$	102,131		$	100,767		$	105,868		1	%	(4	%)

Liabilities
Interest-bearing liabilities:
Interest checking	$	14,334		$	15,061		$	16,251		(5	%)	(12	%)
Savings		15,390			14,620			12,279		5	%	25	%
Money market		6,247			6,244			6,371		—		(2	%)
Foreign office		1,808			1,637			770		10	%	135	%
Other time		10,290			10,780			10,794		(5	%)	(5	%)
Certificates - $100,000 and over		6,062			6,511			6,415		(7	%)	(5	%)
Other foreign office		1,981			732			2,898		171	%	(32	%)
Federal funds purchased		4,322			3,540			4,546		22	%	(5	%)
Other short-term borrowings		3,285			2,372			4,056		39	%	(19	%)
Long-term debt		12,351			12,238			14,355		1	%	(14	%)

Total interest-bearing liabilities		76,070			73,735			78,735		3	%	(3	%)
Demand deposits		13,143			13,370			13,642		(2	%)	(4	%)
Other liabilities		3,593			4,063			3,613		(12	%)	(1	%)

Total liabilities		92,806			91,168			95,990		2	%	(3	%)
Shareholders’ equity		9,325			9,599			9,878		(3	%)	(6	%)

Total liabilities and shareholders’ equity	$	102,131		$	100,767		$	105,868		1	%	(4	%)

Yield Analysis
Interest-earning assets:
Commercial loans		7.45	%		7.45	%		7.39	%
Commercial mortgage loans		7.31	%		7.30	%		7.31	%
Commercial construction loans		7.55	%		7.69	%		7.90	%
Commercial leases		4.23	%		4.32	%		4.85	%
Residential mortgage loans		6.12	%		6.12	%		5.96	%
Home equity		7.63	%		7.66	%		7.67	%
Automobile loans		6.34	%		6.26	%		5.84	%
Credit card		10.03	%		10.62	%		12.06	%
Other consumer loans and leases		5.23	%		5.41	%		4.77	%

Total loans and leases		6.99	%		7.01	%		6.96	%
Taxable securities		5.00	%		4.98	%		4.39	%
Tax exempt securities		7.17	%		7.38	%		7.29	%
Other short-term investments		5.35	%		6.08	%		5.69	%

Total interest-earning assets		6.74	%		6.76	%		6.40	%
Interest-bearing liabilities:
Interest checking		2.14	%		2.21	%		2.49	%
Savings		3.15	%		3.23	%		3.08	%
Money market		4.35	%		4.44	%		4.30	%
Foreign office		4.33	%		4.38	%		4.11	%
Other time		4.61	%		4.63	%		4.24	%
Certificates - $100,000 and over		5.11	%		5.12	%		5.03	%
Other foreign office		5.12	%		5.31	%		5.30	%
Federal funds purchased		5.15	%		5.31	%		5.33	%
Other short-term borrowings		4.50	%		4.31	%		4.42	%
Long-term debt		5.47	%		5.65	%		5.66	%

Total interest-bearing liabilities		4.04	%		4.08	%		4.14	%
Ratios:
Net interest margin (taxable equivalent)		3.34	%		3.37	%		2.99	%
Net interest rate spread (taxable equivalent)		2.70	%		2.68	%		2.26	%
Interest-bearing liabilities to interest-earning assets		84.17	%		83.07	%		82.43	%

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	Year to Date						% Change
	September 2007			September 2006			Yr/Yr
Assets
Interest-earning assets:
Commercial loans	$	21,619		$	20,260		7	%
Commercial mortgage loans		10,906			9,753		12	%
Commercial construction loans		5,701			5,987		(5	%)
Commercial leases		3,680			3,719		(1	%)
Residential mortgage loans		10,255			9,418		9	%
Home equity		11,902			12,018		(1	%)
Automobile loans		10,551			9,481		11	%
Credit card		1,213			812		49	%
Other consumer loans and leases		1,233			1,448		(15	%)
Taxable securities		11,054			21,527		(49	%)
Tax exempt securities		511			616		(17	%)
Other short-term investments		274			166		65	%

Total interest-earning assets		88,899			95,205		(7	%)
Cash and due from banks		2,260			2,528		(11	%)
Other assets		10,332			8,467		22	%
Allowance for loan and lease losses		(784	)		(748	)	5	%

Total assets	$	100,707		$	105,452		(4	%)

Liabilities
Interest-bearing liabilities:
Interest checking	$	14,964		$	16,955		(12	%)
Savings		14,573			11,979		22	%
Money market		6,289			6,296		—
Foreign office		1,598			626		155	%
Other time		10,700			10,334		4	%
Certificates - $100,000 and over		6,416			5,473		17	%
Other foreign office		1,032			3,406		(70	%)
Federal funds purchased		3,462			4,328		(20	%)
Other short-term borrowings		2,689			4,540		(41	%)
Long-term debt		12,276			14,649		(16	%)

Total interest-bearing liabilities		73,999			78,586		(6	%)
Demand deposits		13,233			13,693		(3	%)
Other liabilities		3,846			3,477		11	%

Total liabilities		91,078			95,756		(5	%)
Shareholders’ equity		9,629			9,696		(1	%)

Total liabilities and shareholders’ equity	$	100,707		$	105,452		(4	%)

Yield Analysis
Interest-earning assets:
Commercial loans		7.47	%		7.12	%
Commercial mortgage loans		7.31	%		7.08	%
Commercial construction loans		7.67	%		7.58	%
Commercial leases		4.29	%		5.00	%
Residential mortgage loans		6.13	%		5.90	%
Home equity		7.66	%		7.36	%
Automobile loans		6.26	%		5.65	%
Credit card		10.82	%		11.68	%
Other consumer loans and leases		5.22	%		4.92	%

Total loans and leases		7.01	%		6.74	%
Taxable securities		5.01	%		4.42	%
Tax exempt securities		7.32	%		7.41	%
Other short-term investments		5.84	%		5.44	%

Total interest-earning assets		6.76	%		6.22	%
Interest-bearing liabilities:
Interest checking		2.22	%		2.39	%
Savings		3.21	%		2.89	%
Money market		4.42	%		3.99	%
Foreign office		4.35	%		3.77	%
Other time		4.61	%		4.00	%
Certificates - $100,000 and over		5.14	%		4.66	%
Other foreign office		5.19	%		4.91	%
Federal funds purchased		5.24	%		4.93	%
Other short-term borrowings		4.41	%		4.18	%
Long-term debt		5.55	%		5.31	%

Total interest-bearing liabilities		4.06	%		3.87	%
Ratios:
Net interest margin (taxable equivalent)		3.38	%		3.03	%
Net interest rate spread (taxable equivalent)		2.70	%		2.35	%
Interest-bearing liabilities to interest-earning assets		83.24	%		82.54	%

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	For the Three Months Ended
	September 2007			June 2007			March 2007			December 2006			September 2006
Assets
Interest-earning assets:
Commercial loans	$	22,345		$	21,587		$	20,908		$	21,228		$	20,879
Commercial mortgage loans		11,117			11,030			10,566			9,929			9,833
Commercial construction loans		5,499			5,595			6,014			6,099			5,913
Commercial leases		3,700			3,678			3,661			3,762			3,740
Residential mortgage loans		10,396			10,201			10,166			10,038			9,699
Home equity		11,752			11,886			12,072			12,225			12,174
Automobile loans		10,865			10,552			10,230			9,834			9,522
Credit card		1,366			1,248			1,021			915			870
Other consumer loans and leases		1,204			1,271			1,223			1,232			1,308
Taxable securities		11,180			11,030			10,951			16,685			20,836
Tax exempt securities		490			508			534			568			587
Other short-term investments		459			173			188			1,009			159

Total interest-earning assets		90,373			88,759			87,534			93,524			95,520
Cash and due from banks		2,228			2,265			2,287			2,398			2,355
Other assets		10,330			10,524			10,140			9,440			8,745
Allowance for loan and lease losses		(800	)		(781	)		(769	)		(760	)		(752	)

Total assets	$	102,131		$	100,767		$	99,192		$	104,602		$	105,868

Liabilities
Interest-bearing liabilities:
Interest checking	$	14,334		$	15,061		$	15,509		$	15,744		$	16,251
Savings		15,390			14,620			13,689			12,812			12,279
Money market		6,247			6,244			6,377			6,572			6,371
Foreign office		1,808			1,637			1,343			1,047			770
Other time		10,290			10,780			11,037			10,991			10,794
Certificates - $100,000 and over		6,062			6,511			6,682			6,750			6,415
Other foreign office		1,981			732			364			1,711			2,898
Federal funds purchased		4,322			3,540			2,505			3,615			4,546
Other short-term borrowings		3,285			2,372			2,400			4,468			4,056
Long-term debt		12,351			12,238			12,242			13,059			14,355

Total interest-bearing liabilities		76,070			73,735			72,148			76,769			78,735
Demand deposits		13,143			13,370			13,185			13,882			13,642
Other liabilities		3,593			4,063			3,889			3,801			3,613

Total liabilities		92,806			91,168			89,222			94,452			95,990
Shareholders’ equity		9,325			9,599			9,970			10,150			9,878

Total liabilities and shareholders’ equity	$	102,131		$	100,767		$	99,192		$	104,602		$	105,868

Yield Analysis
Interest-earning assets:
Commercial loans		7.45	%		7.45	%		7.50	%		7.46	%		7.39	%
Commercial mortgage loans		7.31	%		7.30	%		7.31	%		7.34	%		7.31	%
Commercial construction loans		7.55	%		7.69	%		7.74	%		7.82	%		7.90	%
Commercial leases		4.23	%		4.32	%		4.34	%		4.88	%		4.85	%
Residential mortgage loans		6.12	%		6.12	%		6.17	%		6.04	%		5.96	%
Home equity		7.63	%		7.66	%		7.69	%		7.71	%		7.67	%
Automobile loans		6.34	%		6.26	%		6.18	%		6.10	%		5.84	%
Credit card		10.03	%		10.62	%		12.17	%		12.26	%		12.06	%
Other consumer loans and leases		5.23	%		5.41	%		5.03	%		4.70	%		4.77	%

Total loans and leases		6.99	%		7.01	%		7.04	%		7.03	%		6.96	%
Taxable securities		5.00	%		4.98	%		5.06	%		4.57	%		4.39	%
Tax exempt securities		7.17	%		7.38	%		7.40	%		7.30	%		7.29	%
Other short-term investments		5.35	%		6.08	%		6.82	%		5.56	%		5.69	%

Total interest-earning assets		6.74	%		6.76	%		6.79	%		6.58	%		6.40	%
Interest-bearing liabilities:
Interest checking		2.14	%		2.21	%		2.31	%		2.41	%		2.49	%
Savings		3.15	%		3.23	%		3.27	%		3.24	%		3.08	%
Money market		4.35	%		4.44	%		4.46	%		4.40	%		4.30	%
Foreign office		4.33	%		4.38	%		4.32	%		4.22	%		4.11	%
Other time		4.61	%		4.63	%		4.59	%		4.46	%		4.24	%
Certificates - $100,000 and over		5.11	%		5.12	%		5.17	%		5.15	%		5.03	%
Other foreign office		5.12	%		5.31	%		5.31	%		5.33	%		5.30	%
Federal funds purchased		5.15	%		5.31	%		5.30	%		5.31	%		5.33	%
Other short-term borrowings		4.50	%		4.31	%		4.37	%		4.61	%		4.42	%
Long-term debt		5.47	%		5.65	%		5.54	%		5.70	%		5.66	%

Total interest-bearing liabilities		4.04	%		4.08	%		4.07	%		4.17	%		4.14	%
Ratios:
Net interest margin (taxable equivalent)		3.34	%		3.37	%		3.44	%		3.16	%		2.99	%
Net interest rate spread (taxable equivalent)		2.70	%		2.68	%		2.72	%		2.41	%		2.26	%
Interest-bearing liabilities to interest-earning assets		84.17	%		83.07	%		82.42	%		82.08	%		82.43	%

Fifth Third Bancorp and Subsidiaries

Summary of Loans and Leases

$ in millions

(unaudited)


	For the Three Months Ended
	September 2007		June 2007		March 2007		December 2006		September 2006
Average Loans and Leases (including unearned income)
Commercial:
Commercial loans	$	22,345	$	21,587	$	20,908	$	21,228	$	20,879
Commercial mortgage loans		11,117		11,030		10,566		9,929		9,833
Commercial construction loans		5,499		5,595		6,014		6,099		5,913
Commercial leases		3,700		3,678		3,661		3,762		3,740

Subtotal - commercial		42,661		41,890		41,149		41,018		40,365
Consumer:
Residential mortgage loans		10,396		10,201		10,166		10,038		9,699
Home equity		11,752		11,886		12,072		12,225		12,174
Automobile loans		10,865		10,552		10,230		9,834		9,522
Credit card		1,366		1,248		1,021		915		870
Other consumer loans and leases		1,204		1,271		1,223		1,232		1,308

Subtotal - consumer		35,583		35,158		34,712		34,244		33,573

Total average loans and leases	$	78,244	$	77,048	$	75,861	$	75,262	$	73,938

End of Period Loans and Leases Serviced
Commercial:
Commercial loans	$	22,649	$	22,152	$	21,479	$	20,831	$	21,260
Commercial mortgage loans		11,090		11,044		10,906		10,405		9,879
Commercial construction loans		5,463		5,469		5,688		6,168		5,879
Commercial leases		3,710		3,697		3,687		3,841		3,751

Subtotal - commercial		42,912		42,362		41,760		41,245		40,769
Consumer:
Residential mortgage loans		9,057		8,477		8,484		8,830		8,811
Home equity		11,737		11,780		11,926		12,153		12,235
Automobile loans		10,006		10,714		10,400		10,028		9,599
Credit card		1,460		1,263		1,111		1,004		876
Other consumer loans and leases		1,082		1,113		1,140		1,093		1,190

Subtotal - consumer		33,342		33,347		33,061		33,108		32,711

Total portfolio loans and leases		76,254		75,709		74,821		74,353		73,480
Loans held for sale		2,761		1,708		1,382		1,150		872
Operating lease equipment		283		209		212		202		142
Loans and Leases Serviced for Others (a):
Commercial loans		3,462		3,849		3,948		3,933		4,006
Commercial mortgage loans		203		202		621		770		756
Commercial construction loans		211		171		184		175		123
Commercial leases		193		230		250		263		256
Residential mortgage loans		33,109		31,538		30,253		28,688		27,823
Home equity		304		326		348		374		416
Automobile loans		—		88		115		146		180
Credit card		21		112		21		23		23
Other consumer loans and leases		17		8		11		—		—

Total loans and leases serviced for others		37,520		36,524		35,751		34,372		33,583

Total loans and leases serviced	$	116,818	$	114,150	$	112,166	$	110,077	$	108,077

(a)	Fifth Third sells certain loans and leases and retains servicing responsibilities

Fifth Third Bancorp and Subsidiaries

Regulatory Capital (a)

$ in millions

(unaudited)


	As of
	September 2007			June 2007			March 2007			December 2006			September 2006
Tier I capital:
Shareholders’ equity	$	9,344		$	9,191		$	9,804		$	10,022		$	10,022
Goodwill and certain other intangibles		(2,310	)		(2,318	)		(2,328	)		(2,336	)		(2,345	)
Unrealized (gains) losses		197			294			162			176			385
Qualifying trust preferred securities		1,390			815			815			165			165
Other		622			634			600			598			583

Total tier I capital	$	9,243		$	8,616		$	9,053		$	8,625		$	8,810

Total risk-based capital:
Tier I capital	$	9,243		$	8,616		$	9,053		$	8,625		$	8,810
Qualifying allowance for credit losses		926			901			885			867			857
Qualifying subordinated notes		1,697			1,646			1,696			1,893			1,150

Total risk-based capital	$	11,866		$	11,163		$	11,634		$	11,385		$	10,817

Risk-weighted assets	$	108,745		$	105,950		$	103,937		$	102,823		$	101,940
Ratios:
Average shareholders’ equity to average assets		9.13	%		9.53	%		10.05	%		9.70	%		9.33	%
Regulatory capital:
Tier I capital		8.50	%		8.13	%		8.71	%		8.39	%		8.64	%
Total risk-based capital		10.91	%		10.54	%		11.19	%		11.07	%		10.61	%
Tier I leverage		9.27	%		8.76	%		9.36	%		8.44	%		8.52	%

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

Fifth Third Bancorp and Subsidiaries

Summary of Credit Loss Experience

$ in millions

(unaudited)


	For the Three Months Ended
	September 2007			June 2007			March 2007			December 2006			September 2006
Average loans and leases (excluding held for sale):
Commercial loans	$	22,183		$	21,584		$	20,908		$	21,217		$	20,879
Commercial mortgage loans		11,041			11,008			10,566			9,929			9,833
Commercial construction loans		5,499			5,595			6,014			6,099			5,913
Commercial leases		3,698			3,673			3,658			3,761			3,735
Residential mortgage loans		8,765			8,490			8,830			8,886			8,704
Home equity		11,752			11,881			12,062			12,224			12,174
Automobile loans		10,853			10,552			10,230			9,834			9,522
Credit card		1,366			1,248			1,021			915			870
Other consumer loans and leases		1,138			1,174			1,127			1,167			1,273

Total average loans and leases (excluding held for sale)	$	76,295		$	75,205		$	74,416		$	74,032		$	72,903

Losses charged off:
Commercial loans		($24	)		($29	)		($19	)		($37	)		($29	)
Commercial mortgage loans		(8	)		(16	)		(7	)		(11	)		(8	)
Commercial construction loans		(5	)		(7	)		(6	)		(3	)		(1	)
Commercial leases		—			—			(1	)		(1	)		—
Residential mortgage loans		(9	)		(9	)		(7	)		(8	)		(5	)
Home equity		(29	)		(22	)		(19	)		(16	)		(16	)
Automobile loans		(32	)		(24	)		(25	)		(25	)		(21	)
Credit card		(14	)		(12	)		(11	)		(11	)		(9	)
Other consumer loans and leases		(6	)		(5	)		(4	)		(6	)		(7	)

Total losses		(127	)		(124	)		(99	)		(118	)		(96	)
Recoveries of losses previously charged off:
Commercial loans		1			5			4			8			4
Commercial mortgage loans		—			—			—			—			1
Commercial construction loans		—			—			—			—			—
Commercial leases		—			—			—			1			1
Residential mortgage loans		—			—			—			—			—
Home equity		2			2			2			2			2
Automobile loans		7			9			9			6			6
Credit card		1			2			3			1			1
Other consumer loans and leases		1			4			10			3			2

Total recoveries		12			22			28			21			17
Net losses charged off:
Commercial loans		(23	)		(24	)		(15	)		(29	)		(25	)
Commercial mortgage loans		(8	)		(16	)		(7	)		(11	)		(7	)
Commercial construction loans		(5	)		(7	)		(6	)		(3	)		(1	)
Commercial leases		—			—			(1	)		—			1
Residential mortgage loans		(9	)		(9	)		(7	)		(8	)		(5	)
Home equity		(27	)		(20	)		(17	)		(14	)		(14	)
Automobile loans		(25	)		(15	)		(16	)		(19	)		(15	)
Credit card		(13	)		(10	)		(8	)		(10	)		(8	)
Other consumer loans and leases		(5	)		(1	)		6			(3	)		(5	)

Total net losses charged off		($115	)		($102	)		($71	)		($97	)		($79	)

Net charge-off Ratios:
Commercial loans		0.41	%		0.44	%		0.29	%		0.54	%		0.47	%
Commercial mortgage loans		0.26	%		0.56	%		0.26	%		0.41	%		0.30	%
Commercial construction loans		0.35	%		0.48	%		0.37	%		0.20	%		0.07	%
Commercial leases		(0.01	%)		0.02	%		0.03	%		0.09	%		(0.12	%)
Residential mortgage loans		0.41	%		0.43	%		0.32	%		0.31	%		0.27	%
Home equity		0.94	%		0.66	%		0.56	%		0.46	%		0.46	%
Automobile loans		0.91	%		0.58	%		0.61	%		0.76	%		0.63	%
Credit card		3.59	%		3.28	%		3.28	%		4.07	%		3.82	%
Other consumer loans and leases		1.99	%		0.78	%		(1.36	%)		1.37	%		1.09	%

Total net charge-off ratio		0.60	%		0.55	%		0.39	%		0.52	%		0.43	%

Fifth Third Bancorp and Subsidiaries

Asset Quality

$ in millions

(unaudited)


	For the Three Months Ended
	September 2007			June 2007			March 2007			December 2006			September 2006
Allowance for Credit Losses
Allowance for loan and lease losses, beginning	$	803		$	784		$	771		$	761		$	753
Total net losses charged off		(115	)		(102	)		(71	)		(97	)		(79	)
Provision for loan and lease losses		139			121			84			107			87

Allowance for loan and lease losses, ending	$	827		$	803		$	784		$	771		$	761
Reserve for unfunded commitments, beginning	$	77		$	79		$	76		$	76		$	74
Provision for unfunded commitments		2			(2	)		3			—			2

Reserve for unfunded commitments, ending	$	79		$	77		$	79		$	76		$	76

Components of allowance for credit losses:
Allowance for loan and lease losses	$	827		$	803		$	784		$	771		$	761
Reserve for unfunded commitments		79			77			79			76			76

Total allowance for credit losses	$	906		$	880		$	863		$	847		$	837

Nonperforming Assets and Delinquent Loans
Nonaccrual loans and leases (a)	$	569		$	406		$	390		$	352		$	320
Renegotiated loans and leases		—			—			—			—			—
Other assets, including other real estate owned		137			122			104			103			91

Total nonperforming assets	$	706		$	528		$	494		$	455		$	411

Ninety days past due loans and leases (a)	$	360		$	302		$	243		$	210		$	196

Ratios
Net losses charged off as a percent of average loans and leases		0.60	%		0.55	%		0.39	%		0.52	%		0.43	%
Allowance for loan and lease losses as a percent of loans and leases		1.08	%		1.06	%		1.05	%		1.04	%		1.04	%
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned		0.92	%		0.70	%		0.66	%		0.61	%		0.56	%

(a)	Nonaccrual includes $66 million and Ninety Days Past Due includes $89 million of residential mortgage loans as of September 30, 2007.