EX-99.1 2 dex991.htm FIFTH THIRD BANCORP PRESENTATION Fifth Third Bancorp Presentation
Fifth Third Bank | All Rights Reserved
BancAnalysts Association of Boston
Conference
Kevin Kabat
Chairman, President & CEO
November 7, 2008
Exhibit 99.1

2
Fifth Third Bank | All Rights Reserved
Agenda
Overview
3Q08 results
Operating trends
Credit trends
Capital position
Summary and priorities
Appendix

3
Fifth Third Bank | All Rights Reserved
Fifth
Third
overview
^
As of 9/30/2008
*
As of 10/14/2008
**
Nilson, March 2008
$116 billion assets #13
^
$8 billion market cap #12
*
1,298 banking centers
Over 2,300 ATMs
18 affiliates in 12 states
World’s
5 
largest
merchant
acquirer
**
Naples
Cincinnati
Florence
Louisville
Lexington
Nashville
Atlanta
Augusta
Orlando
Tampa
Naples
Raleigh
Charlotte
Huntington
Pittsburgh
Cleveland
Columbus
Toledo
Detroit
Grand Rapids
Traverse
City
Chicago
Evansville
Jacksonville
Indianapolis
St. Louis
th

4
Fifth Third Bank | All Rights Reserved
3Q08 in review
Strong
core
operating
results
offset
by
higher
credit
costs,
market
valuation
adjustments
Reported
$0.14
loss
per
diluted
share,
compared
to
$0.61
income
per
diluted
share
in
3Q07
—
Net
charge-offs
of
$463
million,
provision
expense
of
$941
million
—
$51
million
pre-tax
loss
on
Fannie
and
Freddie
preferred
stock,
$27
million
loss
on
BOLI
policy,
$12
million
loss
on
residual
write-downs
on
1Q08
auto
securitization
—
$76
million
gain
on
litigation
related
to
Supervisory
Goodwill,
offset
by
$36
million
of
legal
expenses
—
$45
million
non-cash
charge
due
to
Visa’s
settlement
with
Discover
Core
business
momentum
remains
strong
–
core
pre-tax
pre-provision
income
up
12%
from
3Q07
*
—
Net
interest
income
growth
of
41%
driven
by
$215
million
loan
discount
accretion
from
the
second
quarter
First
Charter
acquisition.
Excluding
loan
discount
accretion,
net
interest
income
increased
12%
—
Fee
income
growth
of
5%,
up
14%
on
a
core
basis,
on
double
digit
growth
in
payments
processing,
deposit
service,
corporate
banking,
and
mortgage
banking
revenue
—
Average
loan
growth
of
11%
and
transaction
deposit
growth
of
3%
^
Strong
capital
position
will
be
further
enhanced
by
U.S.
Treasury
capital
investment
of
$3.45
billion
—
Tier
1
capital
ratio
of
8.6%
(pro
forma
including
CPP
of
11.6%)
—
Tangible
equity
ratio
of
6.2%
(pro
forma
including
CPP
of
9.3%)
*
3Q08
reported
results
of
40%
year-over-year
growth
in
pre-tax,
pre-provision
earnings.
Excludes
$27
million
BOLI
charge,
$215
million
in
loan
discount
accretion
from
the
acquisition
of
First
Charter,
$76
million
in
revenue
and
$36
million
in
expense
from
a
litigation
settlement
stemming
from
a
prior
acquisition,
and
$45
million
in
Visa
litigation
expense
in
3Q08.
Excludes
$78
million
in
Visa
litigation
expense,
$2
million
BOLI
charge,
and
$31
million
in
gains
from
asset
sales
in
3Q07;
all
quarters
exclude
securities
gains/losses.
^
Loans
include
held
for
investment;
transaction
deposits
represent
core
deposits
excluding
CDs

5
Fifth Third Bank | All Rights Reserved
3.00%
3.20%
3.40%
3.60%
3.80%
4.00%
3Q07
4Q07
1Q08
2Q08*
3Q08*
$500
$550
$600
$650
$700
$750
$800
$850
$900
Net interest income
NIM
Increasing net interest income
*
3Q08
reported
results:
41%
year-over-year
growth
and
4.24%
NIM.
Results
above
exclude
$130
million
charge
related
to
leveraged
lease
litigation
in
2Q08
and
exclude
$31
million
and
$215
million
in
loan
discount
accretion
from
the
First
Charter
acquisition
in
2Q08
and
3Q08,
respectively.

6
Fifth Third Bank | All Rights Reserved
Fee income growth and diversification
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
3Q07
4Q07
1Q08
2Q08
3Q08
Payment
processing
Deposit
service
charges
Investment    
advisory
Corporate
banking
Mortgage
Secs/other
Reported
year-over-year
fee
income
growth
of
5%.
Results
above
exclude
$76
million
in
litigation
revenue
from
a
prior
acquisition
and
$27
million
BOLI
charge
in
3Q08.
Excludes
$152
million
BOLI
charge
and
$273
million
Visa
IPO
gain
in
1Q08;
excludes
$177
million
BOLI
charge
in
4Q07;
excludes
$31
million
of
gains
from
asset
sales
and
$2
million
in
BOLI
charge
in
3Q07;
excludes
securities
gains/losses
in
all
quarters.
YOY
growth
+11%
+13%
-5%
+15%
+74%
NM
Continued strong growth in processing, deposit fees and corporate banking fees

7
Fifth Third Bank | All Rights Reserved
FTPS: key growth engine
3Q08 revenue
38%
35%
27%
Merchant
Services
Financial
Institutions
Bankcard
$0
$50
$100
$150
$200
$250
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
FI/EFT
Bankcard
Merchant
+19%
2-Yr
CAGR
Merchant
•
4 
Largest
U.S.
Acquirer
•
Over
37,500
merchants
•
$26.7B
in
credit/debit
processing
volume
•
Over
5.6B
acquired
transactions
•
e.g.
Nordstrom,
Saks,
Walgreen's,                       
Office
Max,
Barnes
and
Noble,
U.S.
Treasury
Financial Institutions
•
2,700 FI relationships
•
877mm POS/ATM transactions
Bankcard
•
$1.7B in outstanding balances
•
1.6mm cardholders
•
Top three Debit MasterCard Issuer
•
23   largest U.S. bankcard issuer
YOY
growth
+17%
+7%
+9%
+19%
+6%
th
rd

8
Fifth Third Bank | All Rights Reserved
Corporate banking
$0
$30
$60
$90
$120
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
International
Business lending
Derivatives
Capital markets lending fees
2-Yr
CAGR
YOY 
growth
+10%
-10%
+8%
+33%
+14%
-29%
+11%
+36%
International
•
Letters of credit
•
Foreign exchange
Capital markets lending fees
•
Institutional Sales
•
Asset securitization/conduit fees
•
Loan/lease syndication fees
Derivatives
•
Customer interest rate derivatives
Business lending fees
•
Commitment and other loan fees

9
Fifth Third Bank | All Rights Reserved
$300
$400
$500
$600
$700
$800
3Q07
4Q07
1Q08
2Q08
3Q08
Strong operating performance…
3Q08
reported
results
of
40%
growth
in
pre-tax,
pre-provision
earnings.
3Q08
results
above
exclude
$27
million
BOLI
charge,
$215
million
in
loan
discount
accretion
from
the
acquisition
of
First
Charter,
$76
million
in
revenue
and
$36
million
in
expense
from
a
litigation
settlement
stemming
from
a
prior
acquisition,
and
$45
million
in
Visa
litigation
expense.
2Q08
results
above
exclude
$31
million
loan
discount
accretion
and
$130
million
leveraged
lease
charge.
1Q08
results
above
exclude
$152
BOLI
charge,
$273
Visa
IPO
gain
and
$152
million
reversal
of
Visa
litigation
expenses.
4Q07
results
above
exclude
$177
million
BOLI
charge
and
$94
million
in
Visa
litigation
expense;
3Q07
results
exclude
$78
million
in
Visa
litigation
expense,
$2
million
BOLI
charge,
and
$31
million
in
gains
from
asset
sales;
all
quarters
exclude
securities
gains/losses.

10
Fifth Third Bank | All Rights Reserved
-$1,000
-$800
-$600
-$400
-$200
$0
$200
$400
$600
$800
3Q07
4Q07
1Q08
2Q08
3Q08
…offset by credit costs
See note on p. 9  for adjustments.
Net
charge-
offs
Additional
provision

11
Fifth Third Bank | All Rights Reserved
Real estate driving credit deterioration
0
100,000
200,000
300,000
400,000
500,000
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
C&I/Lease
Auto
Credit Card
Other
CRE
Res RE
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
C&I/Lease
Auto/Other
CRE
Res RE
Res
RE
CRE
NPA, charge-off growth driven by residential, commercial real estate
Res
RE
CRE
Total NPAs
Total NCOs

12
Fifth Third Bank | All Rights Reserved
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Q3 2007
Q4 2007
Q1 2008
Q2 2008
3Q 2008
Other SE
National
Other MW
Michigan
Florida
-
100,000
200,000
300,000
400,000
500,000
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Other SE
National
Other MW
Michigan
Florida
Highest
stress
markets
Highest
stress
markets
NPA, charge-off growth driven by Florida and Michigan
Michigan and Florida: most stressed markets
Total NPAs
Total NCOs

13
Fifth Third Bank | All Rights Reserved
Portfolio performance drivers
Performance Largely Driven By
Geography:
Florida, Michigan most stressed (3Q08 C/O ratio)
Total loan portfolio 4.74%
Commercial portfolio 5.14%
Consumer portfolio 4.10%
Remaining Midwest, Southeast performance
reflects economic trends (3Q08 C/O ratio)
Total loan portfolio 1.06% ex-FL/MI
Commercial portfolio 0.72% ex-FL/MI
Consumer portfolio 1.60% ex-FL/MI
Products:
Homebuilder/developer charge-offs $163 million in
3Q08
Total charge-off ratio 2.17% (1.46% ex-HBs)
Commercial charge-off ratio 2.07% (0.86% ex-
HBs)
Brokered home equity charge-offs 5.05% in 3Q08
Direct home equity portfolio 1.00%
No Previous Lending
Subprime
Option ARMs
Discontinued or Suspended Lending
Discontinued:
Brokered home equity ($2.4B)
Suspended:
Homebuilder/residential development ($3.1B)
Other non-owner occupied commercial RE ($9.4B)
Saleability:
All mortgages originated for intended sale*
* Residential construction-related consumer mortgages intended to be held in portfolio until permanent financing compete.

14
Fifth Third Bank | All Rights Reserved
Loss mitigation activities
Reset policies and guidelines
—
Eliminated all brokered home equity production
—
Significantly tightened underwriting limits and exception authorities
—
Further restrictions on consumer guidelines for weaker geographies
—
Suspended all new residential development lending and non-owner occupied
commercial property lending
—
New concentration limits for commercial portfolio
Loss mitigation and containment
—
Implemented Watch and Criticized Asset Reduction initiative
—
Major expansion of commercial and consumer workout teams
—
Implemented aggressive home equity line management program
—
Expanded consumer credit outreach program
—
Rigorous review of geographic exposures
—
Continue to evaluate potential sales of problem loans

15
Fifth Third Bank | All Rights Reserved
•
Capital
plan
and
targets
designed
to
help
ensure
strong
capital
levels,
positioning
Fifth
Third
to
absorb
significant
potential
losses
and
provisions
in
a
potentially
more
difficult
environment
through
2009
•
Revised
capital
targets
in
June
2008
in
order
to
provide
greater
cushion
•
Strengthened
Fifth
Third’s
capital
position
through
several
capital
actions:
—
Capital
actions
intended
to
maintain
a
Tier
1
ratio
within
target
range
if
credit
cycle
significantly
deteriorates
without
further
capital
issuance
–
Capital
issuance
–
Issued
$1.1
billion
of
Tier
1
capital
in
the
form
of
convertible
preferred
securities
-
achieved
new
Tier
1
target
immediately
–
Dividend
reduction
–
Reducing
quarterly
common
dividend
to
$0.15
per
share,
conserves
$1.2
billion
in
common
equity
through
the
end
of
2009
relative
to
previous
$0.44
level
per
share
–
Asset
sales/dispositions
–
No
longer
pursuing
additional
capital
via
sale
of
non-
core
businesses
but
will
continue
to
evaluate
businesses
from
a
strategic
planning
perspective
Received
preliminary
approval
for
U.S.
Treasury
investment
of
$3.45
billion
in
senior
preferred
stock
Strong capital position
6.2%
12.3%
8.6%
3Q08
6-7%
11.5-12.5%
8-9%
Target
N/A
10%
6%
Regulatory
“well-
capitalized”
minimum
9.3%
TE/TA
15.3%
Total Capital
11.6%
3Q08 pro forma for
$3.45B CPP
Tier 1 Capital
Ratio

16
Fifth Third Bank | All Rights Reserved
Strong capital position
Source:
SNL
Financial
and
company
reports.
Uses
6/30/2008
data
where
9/30/2008
data
is
unavailable.
CPP
impact
calculated
as
CPP
dollar
amount
divided
by
most
recently
disclosed
risk-weighted
assets
and
tangible
assets
per
SNL.
*PNC/NCC
capital
ratios
from
10/24/2008
investor
presentation
on
tangible
equity
basis.
WFC/WB
capital
ratios
year-end
estimates
from
10/03/2008
investor
presentation.
Adjusted
to
reflect
$5
billion
in
additional
CPP
preferred
shares,
$10
billion
of
additional
common
equity,
and
tangible
equity
effect.
TE
Impact
3Q08
TE
Tier 1
Impact
3Q08
Tier 1
Tangible
Equity/
Tangible
Assets
Tier 1
7.1
5.4
5.2
5.7
6.4
5.8
6.2
6.6
7.0
6.9
7.6
8.1
3.7
4.9
11.1
10.7
9.6
9.5
9.3
9.3
8.5
8.4
8.3
8.0
7.8
CMA
COF
MI
KEY
ZION
FITB
HBAN
STI
RF
USB
BBT
WFC/
WB*
MTB
PNC/
NCC*
9.4
11.3
8.9
8.6
8.5
8.1
7.9
8.5
7.5
7.4
8.2
7.8
10.0
8.9
14.3
12.3
11.9
11.6
11.5
10.9
10.9
10.8
10.4
10.3
10.2
COF
BBT
HBAN
FITB
USB
ZION
MI
KEY
RF
CMA
STI
PNC/
NCC*
WFC/
WB*
MTB

17
Fifth Third Bank | All Rights Reserved
Fifth Third differentiators
Integrated affiliate delivery model
Strong sales culture
Operational efficiency
Streamlined decision making
Integrated payments platform (FTPS)
Acquisition integration
Customer satisfaction

18
Fifth Third Bank | All Rights Reserved
Bradenton-Sarasota-Venice, FL
2008  
Rank
Institution (ST)
2008   
Number
of     
Branches
2008       
Total      
Deposits in  
Market     
($000)
2008   
Total  
Market 
Share  
(%)
1
Bank of America
38
3,563,501
21.31
2
Wachovia Corp.
34
3,123,006
18.68
3
SunTrust
35
1,812,254
10.84
4
Pro Forma Fifth Third
17
685,391
4.10
4
Century Financial Group
10
657,159
3.93
5
Corp.
8
532,228
3.18
6
BB&T
16
462,948
2.77
7
Northern Trust
4
433,101
2.59
8
Fifth Third
13
420,807
2.52
9
Regions Financial
22
413,923
2.48
10
RBC Centura
12
355,152
2.12
11
Bank of Commerce
3
291,141
1.74
12
Colonial BancGroup
8
283,775
1.70
13
LandMark Financial
6
265,416
1.59
14
Freedom Bank
4
264,584
1.58
15
Superior Bancorp
3
250,859
1.50
Total
336
16,721,587
•
1.16%
deposit
premium
–
assumed
all
deposits
•
Exclusive
right
to
purchase
branches
at
appraised
value
within
90
days
of
close
•
Increases
market
share
from
8 
to
4 
in
Bradenton-Sarasota-Venice
MSA
Freedom Bank
th
th

19
Fifth Third Bank | All Rights Reserved
Summary and priorities
Delivery
of
strong
operating
results
remains
a
hallmark
of
Fifth
Third
despite
sluggish
economy
—
Despite
a
difficult
operating
environment,
core
businesses
are
creating
new
and
profitable
opportunities
to
enhance
franchise
value
Fifth
Third
has
taken
steps
to
ensure
it
is
well-positioned
to
weather
potential
further
deterioration
in
the
credit
environment
—
Michigan
and
Florida
exposures
and
stressed
housing
markets
have
pressured
earnings
—
Proactive
measures
to
mitigate
exposures
including
tightened
credit
standards
for
new
loans
as
well
as
operational
revisions
to
contain
credit
losses
in
existing
portfolios
Capital
plan
designed
to
maintain
strong
capital
levels
under
significant
additional
stress
in
credit
trends
—
With
a
strong
capital
position,
Fifth
Third
expects
to
successfully
navigate
through
the
current
difficult
market
conditions
and
continue
to
be
one
of
the
strongest
retail
and
commercial
banking
organizations
in
the
U.S.

20
Fifth Third Bank | All Rights Reserved
Cautionary statement
This
report
may
contain
forward-looking
statements
about
Fifth
Third
Bancorp
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
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
and
weakening
in
the
economy,
specifically
the
real
estate
market,
either
national
or
in
the
states
in
which
Fifth
Third,
does
business,
are
less
favorable
than
expected;
(2)
deteriorating
credit
quality;
(3)
political
developments,
wars
or
other
hostilities
may
disrupt
or
increase
volatility
in
securities
markets
or
other
economic
conditions;
(4)
changes
in
the
interest
rate
environment
reduce
interest
margins;
(5)
prepayment
speeds,
loan
origination
and
sale
volumes,
charge-offs
and
loan
loss
provisions;
(6)
Fifth
Third’s
ability
to
maintain
required
capital
levels
and
adequate
sources
of
funding
and
liquidity;
(7)
changes
and
trends
in
capital
markets;
(8)
competitive
pressures
among
depository
institutions
increase
significantly;
(9)
effects
of
critical
accounting
policies
and
judgments;
(10)
changes
in
accounting
policies
or
procedures
as
may
be
required
by
the
Financial
Accounting
Standards
Board
or
other
regulatory
agencies;
(11)
legislative
or
regulatory
changes
or
actions,
or
significant
litigation,
adversely
affect
Fifth
Third,
or
the
businesses
in
which
Fifth
Third,
one
is
engaged;
(12)
ability
to
maintain
favorable
ratings
from
rating
agencies;
(13)
fluctuation
of
Fifth
Third’s
stock
price;
(14)
ability
to
attract
and
retain
key
personnel;
(15)
ability
to
receive
dividends
from
its
subsidiaries;
(16)
potentially
dilutive
effect
of
future
acquisitions
on
current
shareholders'
ownership
of
Fifth
Third;
(17)
effects
of
accounting
or
financial
results
of
one
or
more
acquired
entities;
(18)
difficulties
in
combining
the
operations
of
acquired
entities;
(19)
inability
to
generate
the
gains
on
sale
and
related
increase
in
shareholders’
equity
that
it
anticipates
from
the
sale
of
certain
non-core
businesses;
(20)
loss
of
income
from
the
sale
of
certain
non-core
businesses
could
have
an
adverse
effect
on
Fifth
Third’s
earnings
and
future
growth;
(21)
ability
to
secure
confidential
information
through
the
use
of
computer
systems
and
telecommunications
networks;
(22)
the
impact
of
reputational
risk
created
by
these
developments
on
such
matters
as
business
generation
and
retention,
funding
and
liquidity;
and
(23)
the
Treasury
providing
satisfactory
definitive
documentation
for
its
purchase
of
senior
preferred
shares
and
agreement
on
final
terms
and
conditions.
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,
2007,
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.