EX-99.1

EX-99.1 2 dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO


		News Release
CONTACTS:	Jim Eglseder (Investors)	FOR IMMEDIATE RELEASE
	(513) 534-8424	July 21, 2011
	Rich Rosen, CFA (Investors)
	(513) 534-3307
	Debra DeCourcy, APR (Media)
	(513) 534-4153

FIFTH THIRD BANCORP ANNOUNCES SECOND QUARTER 2011 NET INCOME TO COMMON SHAREHOLDERS OF $328 MILLION OR $0.35 PER SHARE

•

2Q11 net income available to common shareholders of $328 million or $0.35 per diluted common share

•

1Q11 net income to common of $88 million or $0.10 per share ($241 million or $0.27 excluding the effect of accelerated TARP discount accretion)

•

2Q10 net income to common of $130 million or $0.16 per share

•

2Q11 net income of $337 million compared with 1Q11 net income of $265 million and 2Q10 net income of $192 million

•

2Q11 return on assets of 1.2 percent

•

2Q11 return on average common equity of 11.0 percent; return on average tangible common equity of 14.0 percent

•

Pre-provision net revenue (PPNR)* of $619 million

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Net interest income of $869 million, down 2 percent sequentially; 3.62 percent net interest margin; period end loans up 1 percent driven by 3 percent growth in C&I loans

•

Noninterest income of $656 million, up 12 percent sequentially driven primarily by stronger mortgage-related revenue, card and processing revenue and corporate banking revenue

•

Noninterest expense of $901 million, down 2 percent sequentially driven primarily by seasonal decrease in FICA and unemployment costs

•

Credit trends remain favorable

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2Q11 net charge-offs of $304 million (1.56 percent of loans and leases), the lowest level since the first quarter of 2008, vs. 1Q11 NCOs of $367 million and 2Q10 NCOs of $434 million

•

Total nonperforming assets of $2.3 billion including held-for-sale declined $78 million or 3 percent sequentially (lowest levels since 2Q08); nonperforming assets excluding held-for-sale of $2.1 billion declined $38 million or 2 percent

•

NPA ratio of 2.66 percent down 7 bps from 1Q11, NPL ratio of 2.09 percent down 2 bps from 1Q11; NPL inflows of $449 million down 55 percent from peak in 3Q09

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Total delinquencies (includes loans and leases 30-89 days past due and over 90 days past due) declined 9 percent sequentially to lowest level since 2006

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Allowance to loan ratio of 3.35 percent, 125 percent of nonperforming assets, 160 percent of nonperforming loans and leases, and 2.1 times annualized 2Q11 net charge-offs

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Strong capital ratios; exceed fully phased-in Basel III proposed standards

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Tier 1 common ratio 9.20 percent, up 21 bps sequentially (pro forma** ~9.6 percent on a full-phased in Basel III adjusted basis)

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Tier 1 ratio 11.93 percent, Total capital ratio 16.03 percent, Leverage ratio 11.03 percent

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Tangible common equity ratio of 8.64 percent excluding unrealized gains/losses, up 25 bps; 8.96 percent including unrealized gains/losses, up 36 bps

•

Book value per share of $13.23, tangible book value per share of $10.55

•

Tangible book value per share growth 11 percent from 2Q10, 4 percent from 1Q11

*	Pre-provision net revenue (PPNR): net interest income plus noninterest income minus noninterest expense and taxable equivalent adjustment

**	Estimate, subject to final rule-making and clarification by U.S. banking regulators; currently assumes unrealized securities gains are included in common equity for purposes of this calculation

Fifth Third Bancorp (Nasdaq: FITB) today reported second quarter 2011 net income of $337 million, compared with net income of $265 million in the first quarter of 2011 and net income of $192 million in the second quarter of 2010. After preferred dividends, second quarter 2011 net income available to common shareholders was $328 million or $0.35 per diluted share, compared with first quarter net income of $88 million or $0.10 per diluted share, and net income of $130 million or $0.16 per diluted share in the second quarter of 2010.

First quarter 2011 net income available to common shareholders was reduced by $153 million, or $0.17 per diluted share, of discount accretion recorded in preferred dividends accelerated by the February repurchase of $3.408 billion of TARP CPP Preferred Stock.

Earnings Highlights


	For the Three Months Ended															% Change
	June 2011			March 2011			December 2010			September 2010			June 2010			Seq			Yr/Yr
Earnings ($ in millions)
Net income attributable to Bancorp	$	337		$	265		$	333		$	238		$	192			27	%		75	%
Net income available to common shareholders	$	328		$	88		$	270		$	175		$	130			272	%		153	%

Common Share Data
Earnings per share, basic		0.36			0.10			0.34			0.22			0.16			260	%		125	%
Earnings per share, diluted		0.35			0.10			0.33			0.22			0.16			250	%		119	%
Cash dividends per common share		0.06			0.06			0.01			0.01			0.01			—			500	%

Financial Ratios
Return on average assets		1.22	%		0.97	%		1.18	%		0.84	%		0.68	%		26	%		79	%
Return on average common equity		11.0			3.1			10.4			6.8			5.2			255	%		112	%
Return on average tangible common equity		14.0			4.2			13.9			9.4			7.4			234	%		89	%
Tier I capital		11.93			12.20			13.89			13.85			13.65			(2	%)		(13	%)
Tier I common equity		9.20			8.99			7.48			7.34			7.17			2	%		28	%
Net interest margin (a)		3.62			3.71			3.75			3.70			3.57			(2	%)		1	%
Efficiency (a)		59.1			62.5			62.6			56.2			62.1			(5	%)		(5	%)

Common shares outstanding (in thousands)		919,818			918,728			796,273			796,283			796,320			—			16	%
Average common shares outstanding (in thousands):
Basic		914,601			880,830			791,072			791,017			790,839			4	%		16	%
Diluted		955,478			894,841			836,225			797,492			802,255			7	%		19	%

(a)	Presented on a fully taxable equivalent basis

“Fifth Third’s second quarter results were strong and reflected continued improvement in credit trends,” said Kevin T. Kabat, president and CEO of Fifth Third Bancorp. “Bottom-line results were the best Fifth Third has generated since 2007 and drove strong returns – a 1.2 percent return on assets, a 14 percent return on average tangible common equity, and 4 percent unannualized sequential growth in tangible book value per share.

Noninterest income increased 12 percent from the first quarter and expenses were well-controlled, down 2 percent. Mortgage banking revenue improved significantly from the first quarter, and card and processing revenue and corporate banking revenue were both up 10 percent or more. Period-end loan balances were up 1 percent driven by 3 percent growth in both C&I and residential mortgage loans; average transaction deposits increased 2 percent and core deposits increased 1 percent reflecting continued CD run-off.

Net interest income and the net interest margin were both down modestly in the quarter reflecting a flatter yield curve and heightened loan pricing competition. We expect both measures to improve in the third and fourth quarters.

Credit results continued to trend favorably. Net charge-offs were $304 million, down 17 percent from last quarter and were the lowest level we’ve experienced since the beginning of 2008. Nonperforming asset levels and delinquencies also declined. We expect further improvement in credit results in the second half of the year.

Overall, we expect second half 2011 results to produce similarly strong or stronger returns and build upon the 11 percent growth in tangible book value per share we’ve generated over the past year.”

Income Statement Highlights


	For the Three Months Ended										% Change
	June 2011		March 2011		December 2010		September 2010		June 2010		Seq			Yr/Yr
Condensed Statements of Income ($ in millions)
Net interest income (taxable equivalent)	$	869	$	884	$	919	$	916	$	887		(2	%)		(2	%)
Provision for loan and lease losses		113		168		166		457		325		(33	%)		(65	%)
Total noninterest income		656		584		656		827		620		12	%		6	%
Total noninterest expense		901		918		987		979		935		(2	%)		(4	%)

Income before income taxes (taxable equivalent)		511		382		422		307		247		33	%		107	%


Taxable equivalent adjustment		5		5		5		4		5		—			—
Applicable income taxes		169		112		83		65		50		51	%		238	%

Net income		337		265		334		238		192		27	%		75	%
Less: Net income attributable to noncontrolling interest		—		—		1		—		—		—			—

Net income attributable to Bancorp		337		265		333		238		192		27	%		75	%
Dividends on preferred stock		9		177		63		63		62		(95	%)		(85	%)

Net income available to common shareholders		328		88		270		175		130		272	%		153	%

Earnings per share, diluted	$	0.35	$	0.10	$	0.33	$	0.22	$	0.16		250	%		119	%

Net Interest Income


	For the Three Months Ended															% Change
	June 2011			March 2011			December 2010			September 2010			June 2010			Seq			Yr/Yr
Interest Income ($ in millions)
Total interest income (taxable equivalent)	$	1,050		$	1,065		$	1,109		$	1,130		$	1,121			(1	%)		(6	%)
Total interest expense		181			181			190			214			234			—			(23	%)

Net interest income (taxable equivalent)	$	869		$	884		$	919		$	916		$	887			(2	%)		(2	%)


Average Yield
Yield on interest-earning assets		4.37	%		4.47	%		4.52	%		4.57	%		4.51	%		(2	%)		(3	%)
Yield on interest-bearing liabilities		1.00	%		1.02	%		1.04	%		1.13	%		1.23	%		(2	%)		(19	%)

Net interest rate spread (taxable equivalent)		3.37	%		3.45	%		3.48	%		3.44	%		3.28	%		(2	%)		3	%

Net interest margin (taxable equivalent)		3.62	%		3.71	%		3.75	%		3.70	%		3.57	%		(2	%)		1	%

Average Balances ($ in millions)
Loans and leases, including held for sale	$	79,153		$	79,379		$	79,148		$	78,854		$	78,807			—			—
Total securities and other short-term investments		17,192			17,290			18,066			19,309			20,891			(1	%)		(18	%)
Total interest-earning assets		96,345			96,669			97,214			98,163			99,698			—			(3	%)
Total interest-bearing liabilities		72,503			72,372			72,657			75,076			76,415			—			(5	%)
Bancorp shareholders’ equity		12,365			13,052			14,007			13,852			13,563			(5	%)		(9	%)

Net interest income of $869 million on a taxable equivalent basis decreased $15 million from the first quarter of 2011. The decline in net interest income was attributable to lower yields on commercial and consumer loans, a flatter yield curve and lower LIBOR rates, partially offset by higher loan balances, lower deposit costs and CDs maturing or migrating into lower cost deposit categories. A higher day-count increased net interest income by $6 million, offset by higher interest expense resulting from hedge ineffectiveness and the full quarter effect of the issuance of $1 billion in fixed-rate debt in the first quarter of 2011. The net interest margin was 3.62 percent, a decrease of 9 bps from 3.71 percent in the previous quarter, and was impacted by the previously mentioned items. Of the decrease, 2 bps was attributable to hedge ineffectiveness, 2 bps to the higher day-count, and 1 bp to the increase in long-term debt.

Compared with the second quarter of 2010, net interest income decreased $18 million while the net interest margin increased 5 bps. The decrease in net interest income was largely the result of lower loan yields, partially offset by higher average loan balances and run-off in higher-priced CDs. The net interest margin improvement largely reflected deposit growth and shift in mix from higher cost term deposits to lower cost deposit products.

Securities

Average securities and other short-term investments were $17.2 billion in the second quarter of 2011, consistent with $17.3 billion in the previous quarter and down from $20.9 billion in the second quarter of 2010. Lower cash balances held at the Fed contributed to the sequential and year-over-year declines.

Loans


	For the Three Months Ended										% Change
	June		March		December		September		June
	2011		2011		2010		2010		2010		Seq			Yr/Yr
Average Portfolio Loans and Leases ($ in millions)
Commercial:
Commercial and industrial loans	$	27,909	$	27,331	$	26,338	$	26,344	$	26,176		2	%		7	%
Commercial mortgage	$	10,394	$	10,685		10,985		11,375		11,659		(3	%)		(11	%)
Commercial construction	$	1,918	$	2,030		2,171		2,885		3,160		(6	%)		(39	%)
Commercial leases	$	3,349	$	3,364		3,314		3,257		3,336		—			—

Subtotal - commercial loans and leases		43,570		43,410		42,808		43,861		44,331		—			(2	%)

Consumer:
Residential mortgage loans		9,654		9,282		8,382		7,837		7,805		4	%		24	%
Home equity		11,144		11,376		11,655		11,897		12,102		(2	%)		(8	%)
Automobile loans		11,188		11,070		10,825		10,517		10,170		1	%		10	%
Credit card		1,834		1,852		1,844		1,838		1,859		(1	%)		(1	%)
Other consumer loans and leases		547		646		722		667		706		(15	%)		(23	%)

Subtotal - consumer loans and leases		34,367		34,226		33,428		32,756		32,642		—			5	%

Total average loans and leases (excluding held for sale)	$	77,937	$	77,636	$	76,236	$	76,617	$	76,973		—			1	%

Average loans held for sale		1,216		1,743		2,912		2,237		1,834		(30	%)		(34	%)

Average loan and lease balances (excluding loans held-for-sale) were up $301 million sequentially and increased $964 million, or 1 percent from the second quarter of 2010. Period end loan and lease balances grew $502 million, or 1 percent from the first quarter and $1.7 billion or 2 percent from a year ago.

Average commercial portfolio loan and lease balances were up $160 million sequentially and declined $761 million or 2 percent from the second quarter of 2010. Commercial and industrial (C&I) average loans increased 2 percent sequentially and 7 percent compared with the second quarter of 2010. Average commercial mortgage and commercial construction loan balances declined by a combined 3 percent sequentially and 17 percent from the same period the previous year, reflecting continued low customer demand and tighter underwriting standards. The year-over-year comparison was also affected by the transfer of $961 million of loans to loans held-for-sale at the end of the third quarter 2010. Commercial line usage, on an end of period basis for the second quarter, was consistent at 32.9 percent of committed lines versus 33.3 percent in the first quarter of 2011 and 32.1 percent in the second quarter of 2010.

Average consumer portfolio loan and lease balances were up $141 million sequentially and increased $1.7 billion, or 5 percent from the second quarter of 2010. Average residential mortgage loans increased 4 percent sequentially and 24 percent compared with the second quarter of 2010. Sequential and year-over-year growth reflected the continued retention of certain shorter-term fixed-rate residential mortgages, branch originated, which totaled $283 million in the second quarter. Average auto loans increased 1 percent sequentially and 10 percent year-over-year as continued strong loan origination volumes more than offset pay-downs. This growth was partially offset by lower home equity loan balances, which declined 2 percent sequentially and 8 percent year-over-year due to lower demand and production.

Average loans held-for-sale of $1.2 billion declined $527 million from first quarter levels and $618 million compared with the second quarter of 2010 driven primarily by lower balances of mortgage loans in the held-for-sale warehouse due to deliveries in excess of origination volumes.

Deposits


	For the Three Months Ended										% Change
	June		March		December		September		June
	2011		2011		2010		2010		2010		Seq			Yr/Yr
Average Deposits ($ in millions)
Demand deposits	$	22,174	$	21,582	$	21,066	$	19,362	$	19,406		3	%		14	%
Interest checking		18,701		18,539		17,578		17,142		18,652		1	%		—
Savings		21,817		21,324		20,602		19,905		19,446		2	%		12	%
Money market		5,009		5,136		4,985		4,940		4,679		(2	%)		7	%
Foreign office (a)		3,805		3,580		3,733		3,592		3,325		6	%		14	%

Subtotal - Transaction deposits		71,506		70,161		67,964		64,941		65,508		2	%		9	%
Other time		6,738		7,363		8,490		10,261		11,336		(8	%)		(41	%)

Subtotal - Core deposits		78,244		77,524		76,454		75,202		76,844		1	%		2	%
Certificates - $100,000 and over		3,955		4,226		4,858		6,096		6,354		(6	%)		(38	%)
Other		2		1		9		4		5		77	%		(54	%)

Total deposits	$	82,201	$	81,751	$	81,321	$	81,302	$	83,203		1	%		(1	%)

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

Average core deposits increased 1 percent sequentially and 2 percent from the second quarter of 2010, as transaction deposit growth was partially offset by continued runoff of consumer time deposits (CDs). Average transaction deposits, excluding consumer time deposits, increased 2 percent from the first quarter of 2011 and 9 percent year-over-year. Sequential and year-over-year growth was primarily driven by higher demand deposit account (DDA) and savings balances.

Retail average transaction deposits increased 4 percent sequentially and 13 percent from the second quarter of 2010 and reflected growth across all transaction deposit account categories for each comparison period, particularly DDA and savings. Consumer CDs included in core deposits declined 9 percent sequentially and 41 percent year-over-year, driven by maturities of higher-rate CDs and customer reluctance to purchase longer CD maturities given the current low rate environment.

Commercial average transaction deposits decreased 2 percent sequentially and increased 1 percent from the previous year. The sequential decline reflects seasonally higher balances in the first quarter. Growth in DDAs was offset by lower interest checking, money market and foreign office accounts. On a year-over-year basis, strong DDA growth more than offset lower public funds balances. Average public funds balances were $5.7 billion, flat sequentially and down $663 million from the second quarter of 2010 due to ongoing pricing adjustments which continue to reflect our excess liquidity position.

Noninterest Income


	For the Three Months Ended										% Change
	June 2011		March 2011		December 2010		September 2010		June 2010		Seq			Yr/Yr
Noninterest Income ($ in millions)
Service charges on deposits	$	126	$	124	$	140	$	143	$	149		1	%		(16	%)
Corporate banking revenue		95		86		103		86		93		11	%		2	%
Mortgage banking net revenue		162		102		149		232		114		58	%		42	%
Investment advisory revenue		95		98		93		90		87		(3	%)		10	%
Card and processing revenue		89		80		81		77		84		10	%		5	%
Other noninterest income		83		81		55		195		85		3	%		(2	%)
Securities gains, net		6		8		21		4		8		(25	%)		(25	%)
Securities gains, net - non-qualifying hedges
on mortgage servicing rights		—		5		14		—		—		NM			NM

Total noninterest income	$	656	$	584	$	656	$	827	$	620		12	%		6	%

NM: Not Meaningful

Noninterest income of $656 million increased $72 million or 12 percent sequentially and $36 million or 6 percent compared with results a year ago. The sequential growth was driven by higher mortgage-related revenue, corporate banking revenue and card and processing revenue. The year-over-year growth reflected higher mortgage-related revenue partially offset by lower deposit service charges due to the effect of the August 2010 implementation of Regulation E.

Second quarter 2011 results included a $29 million positive valuation adjustment on warrants and puts related to the 2009 sale of an interest in our processing business, compared with $2 million in negative valuation adjustments on these instruments in the first quarter of 2011 and a $10 million positive valuation adjustment in the second quarter of 2010. Second quarter 2011 results included a $4 million reduction in income due to the increase in fair value of the liability related to the total return swap entered into as part of the 2009 sale of Visa, Inc. Class B shares. This item reduced noninterest income in the first quarter of 2011 by $9 million. Excluding these items, as well as investment securities gains in all periods, noninterest income increased $38 million, or 6 percent, from the previous quarter driven by higher mortgage-related revenue, corporate banking

revenue and card and processing revenue. On a year-over-year basis, noninterest income excluding the items mentioned above increased $23 million, or 4 percent, due to higher mortgage-related revenue partially offset by lower deposit service charges.

Service charges on deposits of $126 million increased 1 percent sequentially from a seasonally light first quarter and decreased 16 percent compared with the same quarter last year, due to lower retail service charges. Retail service charges were flat compared with the previous quarter and declined 34 percent compared with the second quarter of 2010, largely due to the implementation of new overdraft regulations and overdraft policies. Commercial service charges increased 2 percent sequentially and 3 percent compared with the same quarter last year.

Corporate banking revenue of $95 million increased 11 percent from the first quarter of 2011 and increased 2 percent from the same period last year. Sequential results were driven by higher lease remarketing fees, syndication fee revenue and institutional sales revenue. On a year-over-year basis, higher revenue from business lending fees primarily drove the increase.

Mortgage banking net revenue was $162 million in the second quarter of 2011, a 58 percent increase from the first quarter of 2011 and a 42 percent increase from the second quarter of 2010. Second quarter 2011 originations were $3.1 billion, a decrease from $3.9 billion in the previous quarter and $3.8 billion in the second quarter of 2010. Second quarter 2011 originations resulted in gains of $64 million on mortgages sold compared with gains of $62 million during the previous quarter and $89 million during the second quarter of 2010. Gain on sale margins increased sequentially from weak first quarter levels as interest rates were generally lower this quarter. Mortgage servicing fees this quarter were $58 million, compared with $58 million in the first quarter of 2011 and $54 million in the second quarter of 2010. Mortgage banking revenue is also affected by net servicing asset value adjustments, which include mortgage servicing rights (MSR) amortization and MSR valuation adjustments (including mark-to-market adjustments on free-standing derivatives used to economically hedge the MSR portfolio). These net servicing asset valuation adjustments were positive $40 million in the second quarter of 2011 (reflecting MSR amortization of $25 million and MSR valuation adjustments of positive $65 million); negative $18 million in the first quarter of 2011 (MSR amortization of $28 million and MSR valuation adjustments of positive $10 million); and negative $29 million in the second quarter of 2010 (MSR amortization of $25 million and negative $4 million in MSR valuation adjustments). The mortgage-servicing asset, net of the valuation reserve, was $847 million at quarter end on a servicing portfolio of $56 billion.

Investment advisory revenue of $95 million decreased 3 percent sequentially and increased 10 percent from the second quarter of 2010. The sequential decline was primarily driven by seasonally high tax-related private client services fees in the first quarter and a less active securities trading environment in the second quarter. Year-over-year improvement reflected an overall increase in equity and bond market values.

Card and processing revenue was $89 million in the second quarter of 2011, an increase of 10 percent sequentially and 5 percent from the second quarter of 2010. The sequential increase reflected higher transaction volumes compared with the seasonally weak first quarter, while the year-over-year comparison reflected higher transaction volumes as general improvement in the economy drove increased spending.

Other noninterest income totaled $83 million in the second quarter of 2011 compared with $81 million in the previous quarter and $85 million in the second quarter of 2010. Other noninterest income included revenue associated with the transition service agreement (TSA) entered into as part of our processing business sale, revenue from our equity interest in the processing business, effects of the valuation of warrants and puts related to the processing business sale, and changes in income related to the valuation of the total return swap entered into as part of the 2009 sale of Visa, Inc. Class B shares. For periods ending June 30, 2011, March 31, 2011, and June 30, 2010, TSA revenue was $5 million, $11 million, and $13 million, respectively; revenue from our processing business equity interest was $6 million, $9 million, and $6 million, respectively; warrant/put valuation adjustments were positive $29 million, negative $2 million, and positive $10 million, respectively; and reductions in income related to the Visa, Inc. total return swap were $4 million this quarter and $9 million in the first quarter. Excluding these items, other noninterest income decreased $25 million from the previous quarter and $9 million from the first quarter of 2010, primarily due to the effects of higher net credit-related costs recognized in other noninterest income.

Net credit-related costs recognized in other noninterest income were $28 million in the second quarter of 2011 versus $3 million last quarter and $15 million in the second quarter of 2010. Second quarter 2011 results included $8 million of net gains on sales of commercial loans held-for-sale and $9 million of fair value charges on commercial loans held-for-sale, as well as $26 million of losses on other real estate owned (OREO). First quarter 2011 results included $17 million of net gains on sales of commercial loans held-for-sale and $16 million of fair value charges on commercial loans held-for-sale, as well as $2 million of losses on OREO. Second quarter 2010 results included net gains of $6 million on the sale of loans held-for-sale, $7 million of fair value charges on commercial loans held-for-sale, and $13 million of losses on OREO.

Net gains on investment securities were $6 million in the second quarter of 2011, compared with investment securities gains of $8 million in the previous quarter and $8 million in the second quarter of 2010.

There were no gains on securities held as non-qualifying hedges for the MSR, compared with $5 million in the first quarter of 2011 and none in the second quarter of 2010.

Noninterest Expense


	For the Three Months Ended										% Change
	June 2011		March 2011		December 2010		September 2010		June 2010		Seq			Yr/Yr
Noninterest Expense ($ in millions)
Salaries, wages and incentives	$	365	$	351	$	385	$	360	$	356		4	%		2	%
Employee benefits		79		97		73		82		73		(19	%)		9	%
Net occupancy expense		75		77		76		72		73		(3	%)		2	%
Technology and communications		48		45		52		48		45		6	%		6	%
Equipment expense		28		29		32		30		31		(4	%)		(9	%)
Card and processing expense		29		29		26		26		31		1	%		(8	%)
Other noninterest expense		277		290		343		361		326		(4	%)		(15	%)

Total noninterest expense	$	901	$	918	$	987	$	979	$	935		(2	%)		(4	%)

Noninterest expense of $901 million decreased 2 percent from the first quarter of 2011 and decreased 4 percent from the second quarter of 2010. Excluding $6 million of debt extinguishment gains in the second quarter and $3 million in the first quarter recorded as a reduction to other noninterest expense, noninterest expense declined $14 million sequentially and $28 million compared with the second quarter of 2010. The remaining sequential decline was primarily driven by lower employee benefits expense due to a decrease in FICA and unemployment costs from seasonally high first quarter levels as well as improvements in other noninterest expense, partially offset by higher salaries, wages, and incentives. The remaining year-over-year decline was due to significantly lower credit-related expenses. Each period included operating expenses related to the processing business that were largely offset by revenue under the TSA reported in other noninterest income.

Credit costs related to problem assets recorded as noninterest expense totaled $36 million in the second quarter of 2011, compared with $32 million in the first quarter of 2011 and $55 million in the second quarter of 2010. Second quarter credit-related expenses included provision expense for mortgage repurchases of $14 million, compared with $8 million in the first quarter and $18 million a year ago. (Realized mortgage repurchase losses were $22 million in the second quarter of 2011, compared with $24 million last quarter and $19 million in the second quarter of 2010.) Provision for unfunded commitments was a benefit of $14 million in the current quarter, compared with a benefit of $16 million last quarter and a benefit of $6 million a year ago. Derivative valuation adjustments related to customer credit risk were $1 million in expense this quarter versus a net of zero last quarter and $9 million in expense a year ago. OREO expense was $6 million this quarter, compared with $13 million last quarter and $7 million a year ago. Other problem asset-related expenses were $30 million in the second quarter, compared with $28 million the previous quarter and $26 million in the same period last year.

Credit Quality


	For the Three Months Ended
	June 2011			March 2011			December 2010			September 2010			June 2010
Total net losses charged off ($ in millions)
Commercial and industrial loans	($	76	)	($	83	)	($	85	)	($	237	)	($	104	)
Commercial mortgage loans		(47	)		(54	)		(80	)		(268	)		(78	)
Commercial construction loans		(20	)		(26	)		(11	)		(121	)		(43	)
Commercial leases		2			(1	)		3			(1	)		—
Residential mortgage loans		(36	)		(65	)		(62	)		(204	)		(85	)
Home equity		(54	)		(63	)		(65	)		(66	)		(61	)
Automobile loans		(8	)		(20	)		(19	)		(17	)		(20	)
Credit card		(28	)		(31	)		(33	)		(36	)		(42	)
Other consumer loans and leases		(37	)		(24	)		(4	)		(6	)		(1	)

Total net losses charged off		(304	)		(367	)		(356	)		(956	)		(434	)

Total losses		(343	)		(397	)		(399	)		(992	)		(472	)
Total recoveries		39			30			43			36			38

Total net losses charged off	($	304	)	($	367	)	($	356	)	($	956	)	($	434	)
Ratios (annualized)
Net losses charged off as a percent of average loans and leases (excluding held for sale)		1.56	%		1.92	%		1.86	%		4.95	%		2.26	%
Commercial		1.30	%		1.52	%		1.59	%		5.66	%		2.03	%
Consumer		1.89	%		2.43	%		2.20	%		4.00	%		2.57	%

Net charge-offs were $304 million in the second quarter of 2011, or 156 bps of average loans on an annualized basis. First quarter 2011 net charge-offs were $367 million, or 192 bps of average loans on an annualized basis. Second quarter 2010 net charge-offs were $434 million, or 226 bps of average loans on an annualized basis.

Commercial net charge-offs were $141 million, or 130 bps, down $23 million versus $164 million, or 152 bps, in the first quarter. Improvement in charge-offs was broad-based. C&I net losses were $76 million, compared with net losses of $83 million in the previous quarter. Commercial mortgage net losses totaled $47 million compared with net losses of $54 million in the first quarter. Commercial construction net losses were $20 million, compared with net losses of $26 million in the prior quarter. Net losses on residential builder and developer portfolio loans across the C&I and commercial real estate categories totaled $14 million. Originations of homebuilder / developer loans were suspended in 2007 and the remaining portfolio balance is $597 million, down from a peak of $3.3 billion in the second quarter of 2008.

Consumer net charge-offs were $163 million, or 189 bps, down $40 million versus $203 million, or 243 bps, in the first quarter. Improvements were driven by trends in the residential mortgage and automobile portfolios, partially offset by the effect of charge-offs on loans from a credit relationship in the other consumer loans and leases portfolio described below. Net charge-offs on residential mortgage loans in the portfolio were $36 million, down from $65 million in the previous quarter, with lower losses in Florida driving $16 million of improvement. Home equity net charge-offs were $54 million, compared with portfolio losses of $63 million in the first quarter. Net losses on brokered home equity loans represented 36 percent of second quarter home equity losses; such loans are 14 percent of the total home equity portfolio. The home equity portfolio included $1.6 billion of brokered loans, down from a peak of $2.6 billion in 2007; originations of these loans were discontinued in 2007. Net charge-offs in the auto portfolio of $8 million declined $12 million from the prior

quarter. Net losses on consumer credit card loans were $28 million, down $3 million from the previous quarter. Net charge-offs in other consumer loans were $37 million, up $13 million from the previous quarter, primarily the result of a commercial loan that was foreclosed upon in the fourth quarter 2010 which was collateralized by individual consumer loans. These loans were subsequently moved to other consumer loans. We recorded $34 million and $23 million of charge-offs related to these loans in the second and first quarters of 2011, respectively, and have no remaining loss exposure following the second quarter 2011 charge-offs.


	For the Three Months Ended
	June 2011			March 2011			December 2010			September 2010			June 2010
Allowance for Credit Losses ($ in millions)
Allowance for loan and lease losses, beginning	$	2,805		$	3,004		$	3,194		$	3,693		$	3,802
Total net losses charged off		(304	)		(367	)		(356	)		(956	)		(434	)
Provision for loan and lease losses		113			168			166			457			325

Allowance for loan and lease losses, ending		2,614			2,805			3,004			3,194			3,693

Reserve for unfunded commitments, beginning		211			227			231			254			260
Provision for unfunded commitments		(14	)		(16	)		(4	)		(23	)		(6	)

Reserve for unfunded commitments, ending		197			211			227			231			254

Components of allowance for credit losses:
Allowance for loan and lease losses		2,614			2,805			3,004			3,194			3,693
Reserve for unfunded commitments		197			211			227			231			254

Total allowance for credit losses	$	2,811		$	3,016		$	3,231		$	3,425		$	3,947
Allowance for loan and lease losses ratio
As a percent of loans and leases		3.35	%		3.62	%		3.88	%		4.20	%		4.85	%
As a percent of nonperforming loans and leases (a)		160	%		170	%		179	%		202	%		146	%
As a percent of nonperforming assets (a)		125	%		132	%		138	%		153	%		124	%

(a)	Excludes non accrual loans and leases in loans held for sale

Provision for loan and lease losses totaled $113 million in the second quarter of 2011, down $55 million from the first quarter of 2011 and $212 million from the second quarter of 2010. The allowance for loan and lease losses represented 3.35 percent of total loans and leases outstanding as of quarter end, compared with 3.62 percent last quarter, and represented 160 percent of nonperforming loans and leases, 125 percent of nonperforming assets, and 214 percent of second quarter annualized net charge-offs.


	June 2011			March 2011			As of December 2010			September 2010			June 2010
Nonperforming Assets and Delinquent Loans ($ in millions)
Nonaccrual portfolio loans and leases:
Commercial and industrial loans (a)	$	485		$	477		$	473		$	525		$	731
Commercial mortgage loans		417			415			407			464			773
Commercial construction loans		147			159			182			211			383
Commercial leases		16			11			11			30			45
Residential mortgage loans		145			140			152			124			282
Home equity		26			24			23			23			21
Automobile loans		1			1			1			1			1
Other consumer loans and leases (a)		3			60			84			—			—

Total nonaccrual loans and leases	$	1,240		$	1,287		$	1,333		$	1,378		$	2,236
Restructured loans and leases - commercial (nonaccrual)		188			149			141			31			48
Restructured loans and leases - consumer (nonaccrual)		211			209			206			175			246

Total nonperforming loans and leases	$	1,639		$	1,645		$	1,680		$	1,584		$	2,530
Repossessed personal property		15			20			27			29			16
Other real estate owned (b)		434			461			467			469			423

Total nonperforming assets (c)	$	2,088		$	2,126		$	2,174		$	2,082		$	2,969
Nonaccrual loans held for sale		147			184			247			680			163
Restructured loans - commercial (nonaccrual) held for sale		29			32			47			19			4

Total nonperforming assets including loans held for sale	$	2,264		$	2,342		$	2,468		$	2,781		$	3,136


Restructured Consumer loans and leases (accrual)	$	1,593		$	1,573		$	1,560		$	1,588		$	1,602
Restructured Commercial loans and leases (accrual)	$	266		$	243		$	228		$	146		$	113

Total loans and leases 90 days past due	$	279		$	266		$	274		$	317		$	397
Nonperforming loans and leases as a percent of portfolio loans, leases and other assets, including other real estate owned (c)		2.09	%		2.11	%		2.15	%		2.07	%		3.30	%
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned (c)		2.66	%		2.73	%		2.79	%		2.72	%		3.87	%

(a)

Nonaccrual loans and leases at December 31, 2010 reflect a reclassification of $84 million in nonperforming loans from commercial and industrial loans to other consumer loans and leases which occurred after the Bancorp’s Form 8-K was filed on January 19, 2011. This reclassification was primarily a result of the determination that consumer loans obtained in the foreclosure of a commercial loan were more appropriately categorized as other consumer loans and leases in accordance with regulatory guidelines.

(b)	Excludes government insured advances.

(c)	Does not include nonaccrual loans held-for-sale.

Total nonperforming assets, including loans held-for-sale, were $2.3 billion, a decline of $78 million, or 3 percent, from the previous quarter. Nonperforming assets held-for-investment (NPAs) at quarter end were $2.1 billion or 2.66 percent of total loans, leases and OREO, and decreased $38 million, or 2 percent, from the previous quarter. Nonperforming loans held-for-investment (NPLs) at quarter end were $1.6 billion or 2.09 percent of total loans, leases and OREO, and decreased $6 million from the first quarter. The decrease in total nonperforming assets was driven by the sale of assets from held-for-sale during the quarter and by decreases in NPLs and OREO in the held-for-investment portfolio.

Commercial portfolio NPAs at quarter-end were $1.6 billion, or 3.68 percent of commercial loans, leases and OREO, and increased $24 million, or 2 percent, from the first quarter. Commercial portfolio NPLs were $1.3 billion, or 2.86 percent of commercial loans and leases, and increased $42 million from last quarter. Commercial construction portfolio NPAs were $240 million, a decline of $8 million from the previous quarter. Commercial mortgage portfolio NPAs were $710 million, up $14 million from the prior quarter. Commercial real estate loans in Michigan and Florida represented 44 percent of commercial real estate NPAs and 37 percent of our total commercial real estate portfolio. C&I portfolio NPAs of $638 million increased $18 million from the previous quarter. Within the overall commercial loan portfolio, residential real estate builder and developer portfolio NPAs declined $6 million from the first quarter to $243 million, of which $68 million were commercial construction assets, $159 million were commercial mortgage assets and $16 million were C&I

assets. Commercial portfolio NPAs included $188 million of nonaccrual troubled debt restructurings (TDRs), compared with $149 million last quarter.

Consumer portfolio NPAs of $476 million, or 1.37 percent of consumer loans, leases and OREO, decreased $63 million from the first quarter. Consumer portfolio NPLs were $387 million, or 1.12 percent of consumer loans and leases, and decreased $48 million from last quarter. Of consumer NPAs, $410 million were in residential real estate portfolios. Residential mortgage NPAs were $338 million, consistent with the previous quarter, with Florida representing 47 percent of residential mortgage NPAs and 18 percent of total residential mortgage loans. Home equity NPAs were consistent with last quarter at $71 million. Credit card NPAs declined $4 million from the previous quarter to $50 million. Other consumer NPAs declined $57 million to $3 million, primarily due to charge-offs on loans that collateralized the previously mentioned commercial loan foreclosed upon in the fourth quarter 2010. Consumer nonaccrual TDRs were $211 million in the second quarter of 2011, compared with $209 million in the first quarter.

Second quarter OREO balances included in portfolio NPA balances described above were $434 million compared with $461 million in the first quarter, and included $355 million in commercial OREO and $79 million in consumer OREO. Repossessed personal property of $15 million consisted largely of autos.

Loans still accruing over 90 days past due were $279 million, up $13 million, or 5 percent, from the first quarter of 2011. Commercial balances 90 days past due of $68 million increased $29 million sequentially. Consumer balances 90 days past due of $211 million declined $16 million from the previous quarter. Loans 30-89 days past due of $466 million decreased $83 million, or 15 percent, from the previous quarter. Commercial balances 30-89 days past due of $135 million declined $54 million, or 29 percent, sequentially and consumer balances 30-89 days past due of $331 million declined $29 million, or 8 percent, from the first quarter.

At quarter-end, we held $176 million of commercial nonaccrual loans for sale, compared with $216 million at the end of the first quarter. During the quarter, we transferred approximately $15 million of commercial loans from the portfolio to loans held-for-sale, and we transferred approximately $10 million of loans from loans held-for-sale to OREO. We recorded negative valuation adjustments of $9 million on held-for-sale loans and we recorded net gains of $8 million on loans that were sold or settled during the quarter.

Capital Position


	For the Three Months Ended
	June 2011			March 2011			December 2010			September 2010			June 2010
Capital Position
Average shareholders’ equity to average assets		11.12	%		11.77	%		12.52	%		12.38	%		12.04	%
Tangible equity (a)		9.01	%		8.76	%		10.42	%		10.04	%		9.89	%
Tangible common equity (excluding unrealized gains/losses) (a)		8.64	%		8.39	%		7.04	%		6.70	%		6.55	%
Tangible common equity (including unrealized gains/losses) (a)		8.96	%		8.60	%		7.30	%		7.06	%		6.91	%
Tangible common equity as a percent of risk-weighted assets (excluding unrealized gains/losses) (a) (b)		9.28	%		9.09	%		7.56	%		7.40	%		7.23	%

Regulatory capital ratios: (c)
Tier I capital		11.93	%		12.20	%		13.89	%		13.85	%		13.65	%
Total risk-based capital		16.03	%		16.27	%		18.08	%		18.28	%		17.99	%
Tier I leverage		11.03	%		11.21	%		12.79	%		12.54	%		12.24	%
Tier I common equity (a)		9.20	%		8.99	%		7.48	%		7.34	%		7.17	%
Book value per share		13.23			12.80			13.06			12.86			12.65
Tangible book value per share (a)		10.55			10.11			9.94			9.74			9.51

(a)

The tangible equity, tangible common equity, tier I common equity and tangible book value per share ratios, while not required by accounting principles generally accepted in the United States of America (U.S. GAAP), are considered to be critical metrics with which to analyze banks. The ratios have been included herein to facilitate a greater understanding of the Bancorp’s capital structure and financial condition. See the Regulation G Non-GAAP Reconciliation table for a reconciliation of these ratios to U.S. GAAP.

(b)

Under the banking agencies risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together resulting in the Bancorp’s total risk weighted assets.

(c)	Current period regulatory capital data ratios are estimated.

Capital ratios remained strong during the quarter. Compared with the prior quarter, the Tier 1 common equity ratio increased 21 bps to 9.20 percent. The tangible common equity to tangible assets ratio increased 25 bps to 8.64 percent excluding unrealized gains/losses, and increased 36 bps to 8.96 percent including unrealized gains/losses. These ratios increased primarily due to higher retained earnings. The Tier 1 capital ratio decreased 27 bps to 11.93 percent, the Total capital ratio decreased 24 bps to 16.03 percent, and the Leverage ratio decreased 18 bps to 11.03 percent. These decreases were primarily due to the redemption of $452 million in Trust Preferred Securities (TruPS), partially offset by higher retained earnings.

Book value per share at June 30, 2011 was $13.23 and tangible book value per share was $10.55, compared with March 31, 2011 book value per share of $12.80 and tangible book value per share of $10.11.

Average diluted common shares of 955.5 million shares increased 60.7 million shares from 894.8 million shares in the first quarter of 2011. This increase was due primarily to first quarter capital actions and the dilution treatment of our Series G convertible preferred shares. First, the average fully diluted share count increased due to the full quarter effect of our first quarter 2011 issuance of 122 million common shares in connection with the redemption of TARP preferred stock. The average effect of the issuance of these shares increased the quarterly average share count by 32.7 million shares. Second, our repurchase of the warrants associated with the TARP preferred stock late in the first quarter eliminated their dilutive effect to the fully diluted share count, whereas they represented an average of 7.2 million shares in the first quarter fully diluted

share count. Finally, the higher level of earnings reported in the second quarter resulted in our Series G convertible preferred shares being included in the fully diluted common share count in the second quarter under the “if converted” method. In the first quarter, fully diluted earnings per share was calculated using the preferred dividend rather than including these shares in the common share count, as their impact would have been anti-dilutive to EPS. This increased average fully diluted common shares by 35.5 million versus the first quarter. Period end common shares outstanding were 919.8 million in the second quarter of 2011, compared with 918.7 million in the first quarter of 2011. The inclusion or exclusion of the fully dilutive effect of the common shares underlying the Series G shares has no impact on end of period shares.

The Bank for International Settlements (BIS) has proposed new capital rules for Internationally Active banks, known as “Basel III.” Fifth Third is subject to U.S. bank regulations for capital, which have not yet been issued in response to the Basel proposals. Fifth Third’s capital levels exceed current U.S. “well-capitalized” standards and proposed Basel III standards, and we expect Fifth Third’s capital levels to continue to exceed U.S. “well-capitalized” standards including the adoption of U.S. rules that incorporate changes contemplated under Basel III and/or the Dodd-Frank Act.

Fifth Third’s Tier 1 and Total capital levels at June 30, 2011 included $2.3 billion of TruPS, or 2.3 percent of risk weighted assets compared with $2.8 billion at March 31, 2011. During the quarter, the Bancorp redeemed at par $452 million of its TruPS, including $400 million 8.875% retail TruPS, and $52 million in floating rate capital securities. Under the Dodd-Frank financial reform legislation, these TruPS are intended to be phased out of Tier 1 capital over three years beginning in 2013. The BIS also issued proposals that would include a phase-out of these securities, although over a longer period. We will continue to evaluate the role of these types of securities in our capital structure, based on regulatory developments. To the extent these types of securities remain outstanding during and after the phase-in period, they would be expected to continue to be included in Total capital, subject to prevailing U.S. capital standards. The BIS has also proposed adjustments to definitions of capital, including what is to be included in the definition of Tier 1 common, and to risk weightings applied to certain types of assets. We do not currently expect these proposed adjustments to negatively affect Fifth Third’s Tier 1 common capital levels and for any positive effect to be modest.

We expect to manage our capital structure – including the components represented by common equity and non-common equity – over time to adapt to the effect of legislation, changes in U.S. bank capital regulations reflecting changes to BIS capital rules, and our goals for capital levels and capital composition as appropriate given any changes in rules.

Other

Fifth Third Bank owns a 49 percent interest in Vantiv, LLC, formerly Fifth Third Processing Solutions, LLC. (Advent International owns the remaining 51 percent interest.) The 49 percent interest is recorded on Fifth Third’s balance sheet as an equity method investment with a book value of $534 million. Additionally, Fifth Third has a warrant to purchase additional shares in Vantiv which is carried as a derivative asset at a fair

market value of $104 million, and Advent has a contingent put option to sell shares in Vantiv to Fifth Third which is carried as a derivative liability at a fair market value of $7 million.

Conference Call

Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live by Thomson Financial and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Fifth Third” then “Investor Relations”). The webcast also is being distributed over Thomson Financial’s Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Financial’s individual investor center at www.earnings.com or by visiting any of the investor sites in Thomson Financial’s Individual Investor Network. Institutional investors can access the call via Thomson Financial’s password-protected event management site, StreetEvents (www.streetevents.com).

Those unable to listen to the live webcast may access a webcast replay or podcast through the Fifth Third Investor Relations website at the same web address. Additionally, a telephone replay of the conference call will be available beginning approximately two hours after the conference call until Thursday, August 4^th by dialing 800-642-1687 for domestic access and 706-645-9291 for international access (passcode 77050659#).

Corporate Profile

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of June 30, 2011, the Company had $111 billion in assets and operated 15 affiliates with 1,316 full-service Banking Centers, including 103 Bank Mart^® locations open seven days a week inside select grocery stores and 2,456 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. Fifth Third also has a 49% interest in Vantiv, LLC, formerly Fifth Third Processing Solutions, LLC. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2011, had $276 billion in assets under care, of which it managed $25 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 on the NASDAQ^® National Global Select Market under the symbol “FITB.”

Forward-Looking Statements

This news release contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements we may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us.

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 nationally 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) 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) maintaining capital requirements may limit Fifth Third’s operations and potential growth; (8) changes and trends in capital markets; (9) problems encountered by larger or similar financial institutions may adversely affect the banking industry and/or Fifth Third; (10) competitive pressures among depository institutions increase significantly; (11) effects of critical accounting policies and judgments; (12) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (FASB) or other regulatory agencies; (13) 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, including the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act; (14) ability to maintain favorable ratings from rating agencies; (15) fluctuation of Fifth Third’s stock price; (16) ability to attract and retain key personnel; (17) ability to receive dividends from its subsidiaries; (18) potentially dilutive effect of future acquisitions on current shareholders’ ownership of Fifth Third; (19) effects of accounting or financial results of one or more acquired entities; (20) difficulties in separating Vantiv, LLC, formerly Fifth Third Processing Solutions from Fifth Third; (21) loss of income from any sale or potential sale of businesses that could have an adverse effect on Fifth Third’s earnings and future growth; (22) ability to secure confidential information through the use of computer systems and telecommunications networks; and (23) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity.

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements.

# # #

LOGO

Quarterly Financial Review for June 30, 2011

Table of Contents


Financial Highlights			19-20
Consolidated Statements of Income			21
Consolidated Statements of Income (Taxable Equivalent)			22
Consolidated Balance Sheets			23-24
Consolidated Statements of Changes in Equity			25
Average Balance Sheet and Yield Analysis			26-28
Summary of Loans and Leases			29
Regulatory Capital			30
Summary of Credit Loss Experience			31
Asset Quality			32
Regulation G Non-GAAP Reconciliation			33
Segment Presentation			34

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)


	For the Three Months Ended									% Change						Year to Date						% Change
	June 2011			March 2011			June 2010			Seq			Yr/Yr			June 2011			June 2010			Yr/Yr
Income Statement Data
Net interest income (a)	$	869		$	884		$	887			(2	%)		(2	%)	$	1,752		$	1,788			(2	%)
Noninterest income		656			584			620			12	%		6	%		1,240			1,247			(1	%)
Total revenue (a)		1,525			1,468			1,507			4	%		1	%		2,992			3,035			(1	%)
Provision for loan and lease losses		113			168			325			(33	%)		(65	%)		281			915			(69	%)
Noninterest expense		901			918			935			(2	%)		(4	%)		1,819			1,891			(4	%)
Net income attributable to Bancorp		337			265			192			27	%		75	%		602			182			231	%
Net income available to common shareholders		328			88			130			272	%		153	%		417			57			625	%

Common Share Data
Earnings per share, basic	$	0.36		$	0.10		$	0.16			260	%		125	%	$	0.46		$	0.07			557	%
Earnings per share, diluted		0.35			0.10			0.16			250	%		119	%		0.46			0.07			557	%
Cash dividends per common share		0.06			0.06			0.01			—			500	%		0.12			0.02			500	%
Book value per share		13.23			12.80			12.65			3	%		5	%		13.23			12.65			5	%
Market price per share		12.75			13.89			12.29			(8	%)		4	%		12.75			12.29			4	%
Common shares outstanding (in thousands)		919,818			918,728			796,320			—			16	%		919,818			796,320			16	%
Average common shares outstanding (in thousands):
Basic		914,601			880,830			790,839			4	%		16	%		897,808			790,657			14	%
Diluted		955,478			894,841			802,255			7	%		19	%		907,484			795,454			14	%
Market capitalization	$	11,728		$	12,761		$	9,787			(8	%)		20	%	$	11,728		$	9,787			20	%

Financial Ratios
Return on assets		1.22	%		0.97	%		0.68	%		26	%		79	%		1.09	%		0.32	%		241	%
Return on average common equity		11.0	%		3.1	%		5.2	%		255	%		112	%		7.2	%		1.2	%		500	%
Return on average tangible common equity (b)		14.0	%		4.2	%		7.4	%		233	%		89	%		9.3	%		3.9	%		138	%
Noninterest income as a percent of total revenue		43	%		40	%		41	%		7	%		5	%		41	%		41	%		—
Average equity as a percent of average assets		11.12	%		11.77	%		12.04	%		(6	%)		(8	%)		11.44	%		11.98	%		(5	%)
Tangible common equity (c) (d)		8.64	%		8.39	%		6.55	%		3	%		32	%		8.64	%		6.55	%		32	%
Net interest margin (a)		3.62	%		3.71	%		3.57	%		(2	%)		1	%		3.66	%		3.60	%		2	%
Efficiency (a)		59.1	%		62.5	%		62.1	%		(5	%)		(5	%)		60.8	%		62.3	%		(2	%)
Effective tax rate		33.3	%		29.7	%		20.5	%		12	%		62	%		31.8	%		17.3	%		84	%

Credit Quality
Net losses charged off	$	304		$	367		$	434			(17	%)		(30	%)	$	671		$	1,016			(34	%)
Net losses charged off as a percent of average loans and leases		1.56	%		1.92	%		2.26	%		(19	%)		(31	%)		1.74	%		2.64	%		(34	%)
Allowance for loan and lease losses as a percent of loans and leases		3.35	%		3.62	%		4.85	%		(7	%)		(31	%)		3.35	%		4.85	%		(31	%)
Allowance for credit losses as a percent of loans and leases		3.61	%		3.89	%		5.18	%		(7	%)		(30	%)		3.61	%		5.18	%		(30	%)
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned (e)		2.66	%		2.73	%		3.87	%		(3	%)		(31	%)		2.66	%		3.87	%		(31	%)

Average Balances
Loans and leases, including held for sale	$	79,153		$	79,379		$	78,807			—			—		$	79,265		$	79,468			—
Total securities and other short-term investments		17,192			17,290			20,891			(1	%)		(18	%)		17,241			20,726			(17	%)
Total assets		111,200			110,844			112,613			—			(1	%)		111,023			113,021			(2	%)
Transaction deposits (f)		71,506			70,161			65,508			2	%		9	%		70,838			64,859			9	%
Core deposits (g)		78,244			77,524			76,844			1	%		2	%		77,887			76,555			2	%
Wholesale funding (h)		16,433			16,430			18,977			—			(13	%)		16,430			19,591			(16	%)
Bancorp shareholders’ equity		12,365			13,052			13,563			(5	%)		(9	%)		12,706			13,541			(6	%)

Regulatory Capital Ratios (i)
Tier I capital		11.93	%		12.20	%		13.65	%		(2	%)		(12	%)		11.95	%		13.65	%		(12	%)
Total risk-based capital		16.03	%		16.27	%		17.99	%		(1	%)		(11	%)		16.05	%		17.99	%		(11	%)
Tier I leverage		11.03	%		11.21	%		12.24	%		(2	%)		(10	%)		11.02	%		12.24	%		(10	%)
Tier I common equity (d)		9.20	%		8.99	%		7.17	%		2	%		28	%		9.21	%		7.17	%		28	%

Operations
Banking centers		1,316			1,310			1,309			—			1	%		1,316			1,309			1	%
ATMs		2,456			2,453			2,362			—			4	%		2,456			2,362			4	%
Full-time equivalent employees		20,953			20,837			20,479			1	%		2	%		20,953			20,479			2	%

(a)	Presented on a fully taxable equivalent basis

(b)

The return on average tangible common equity is calculated as tangible net income available to common shareholders (net income available to common shareholders excluding tax effected amortization of intangibles) divided by average tangible common equity, (average common equity less goodwill and intangible assets).

(c)

The tangible common equity ratio is calculated as tangible common equity (shareholders’ equity less preferred stock, goodwill, intangible assets and tax effected accumulated other comprehensive income) divided by tangible assets (total assets less goodwill, intangible assets and tax effected accumulated other comprehensive income.)

(d)

The tangible common equity and tier I common equity ratios, while not required by U.S. GAAP, are considered to be important metrics with which to analyze a bank’s position. The ratios have been included herein to facilitate a greater understanding of the Bancorp’s capital structure and financial condition.

(e)	Excludes nonaccrual loans held for sale

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

(g)	Includes transaction deposits plus other time deposits

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

(i)	Current period regulatory capital ratios are estimates

Fifth Third Bancorp and Subsidiaries

Financial Highlights

$ in millions, except per share data

(unaudited)


	For the Three Months Ended
	June 2011			March 2011			December 2010			September 2010			June 2010
Income Statement Data
Net interest income (a)	$	869		$	884		$	919		$	916		$	887
Noninterest income		656			584			656			827			620
Total revenue (a)		1,525			1,468			1,575			1,743			1,507
Provision for loan and lease losses		113			168			166			457			325
Noninterest expense		901			918			987			979			935
Net income attributable to Bancorp		337			265			333			238			192
Net income available to common shareholders		328			88			270			175			130

Common Share Data
Earnings per share, basic	$	0.36		$	0.10		$	0.34		$	0.22		$	0.16
Earnings per share, diluted		0.35			0.10			0.33			0.22			0.16
Cash dividends per common share		0.06			0.06			0.01			0.01			0.01
Book value per share		13.23			12.80			13.06			12.86			12.65
Market price per share		12.75			13.89			14.68			12.03			12.29
Common shares outstanding (in thousands)		919,818			918,728			796,273			796,283			796,320
Average common shares outstanding (in thousands):
Basic		914,601			880,830			791,072			791,017			790,839
Diluted		955,478			894,841			836,225			797,492			802,255
Market capitalization	$	11,728		$	12,761		$	11,689		$	9,579		$	9,787

Financial Ratios
Return on assets		1.22	%		0.97	%		1.18	%		0.84	%		0.68	%
Return on average common equity		11.0	%		3.1	%		10.4	%		6.8	%		5.2	%
Return on average tangible common equity (b)		14.0	%		4.2	%		13.9	%		9.4	%		7.4	%
Noninterest income as a percent of total revenue		43	%		40	%		42	%		47	%		41	%
Average equity as a percent of average assets		11.12	%		11.77	%		12.52	%		12.38	%		12.04	%
Tangible common equity (c) (d)		8.64	%		8.39	%		7.04	%		6.70	%		6.55	%
Net interest margin (a)		3.62	%		3.71	%		3.75	%		3.70	%		3.57	%
Efficiency (a)		59.1	%		62.5	%		62.6	%		56.2	%		62.1	%
Effective tax rate		33.3	%		29.7	%		20.0	%		21.5	%		20.5	%

Credit Quality
Net losses charged off	$	304		$	367		$	356		$	956		$	434
Net losses charged off as a percent of average loans and leases		1.56	%		1.92	%		1.86	%		4.95	%		2.26	%
Allowance for loan and lease losses as a percent of loans and leases		3.35	%		3.62	%		3.88	%		4.20	%		4.85	%
Allowance for credit losses as a percent of loans and leases		3.61	%		3.89	%		4.17	%		4.51	%		5.18	%
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned (e)		2.66	%		2.73	%		2.79	%		2.72	%		3.87	%

Average Balances
Loans and leases, including held for sale	$	79,153		$	79,379		$	79,148		$	78,854		$	78,807
Total securities and other short-term investments		17,192			17,290			18,066			19,309			20,891
Total assets		111,200			110,844			111,858			111,854			112,613
Transaction deposits (f)		71,506			70,161			67,964			64,941			65,508
Core deposits (g)		78,244			77,524			76,454			75,202			76,844
Wholesale funding (h)		16,433			16,430			17,269			19,236			18,977
Bancorp shareholders’ equity		12,365			13,052			14,007			13,852			13,563

Regulatory Capital Ratios (i)
Tier I capital		11.93	%		12.20	%		13.89	%		13.85	%		13.65	%
Total risk-based capital		16.03	%		16.27	%		18.08	%		18.28	%		17.99	%
Tier I leverage		11.03	%		11.21	%		12.79	%		12.54	%		12.24	%
Tier I common equity (d)		9.20	%		8.99	%		7.48	%		7.34	%		7.17	%

Operations
Banking centers		1,316			1,310			1,312			1,309			1,309
ATMs		2,456			2,453			2,445			2,390			2,362
Full-time equivalent employees		20,953			20,837			20,838			20,667			20,479

(a)	Presented on a fully taxable equivalent basis

(b)

(c)

(d)

(e)	Excludes nonaccrual loans held for sale

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

(g)	Includes transaction deposits plus other time deposits

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

(i)	Current period regulatory capital ratios are estimates

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income

$ in millions

(unaudited)


	For the Three Months Ended						% Change						Year to Date				% Change
	June 2011		March 2011		June 2010		Seq			Yr/Yr			June 2011		June 2010		Yr/Yr
Interest Income
Interest and fees on loans and leases	$	893	$	910	$	951		(2	%)		(6	%)	$	1,803	$	1,910		(6	%)
Interest on securities		151		149		163		1	%		(7	%)		300		345		(13	%)
Interest on other short-term investments		1		1		2		3	%		(42	%)		2		4		(31	%)

Total interest income		1,045		1,060		1,116		(1	%)		(6	%)		2,105		2,259		(7	%)

Interest Expense
Interest on deposits		97		106		161		(9	%)		(40	%)		203		332		(39	%)
Interest on short-term borrowings		1		1		1		(18	%)		(19	%)		2		2		(11	%)
Interest on long-term debt		83		74		72		11	%		15	%		157		146		7	%

Total interest expense		181		181		234		—			(23	%)		362		480		(25	%)


Net Interest Income		864		879		882		(2	%)		(2	%)		1,743		1,779		(2	%)

Provision for loan and lease losses		113		168		325		(33	%)		(65	%)		281		915		(69	%)

Net interest income after provision for loan and lease losses		751		711		557		6	%		35	%		1,462		864		69	%

Noninterest Income
Service charges on deposits		126		124		149		1	%		(16	%)		250		291		(14	%)
Corporate banking revenue		95		86		93		11	%		2	%		181		174		4	%
Mortgage banking net revenue		162		102		114		58	%		42	%		264		266		(1	%)
Investment advisory revenue		95		98		87		(3	%)		10	%		193		177		9	%
Card and processing revenue		89		80		84		10	%		5	%		169		158		8	%
Other noninterest income		83		81		85		3	%		(2	%)		164		160		3	%
Securities gains, net		6		8		8		(25	%)		(25	%)		14		21		(33	%)
Securities gains, net - non-qualifying hedges on mortgage servicing rights		—		5		—		NM			NM			5		—		NM

Total noninterest income		656		584		620		12	%		6	%		1,240		1,247		(1	%)

Noninterest Expense
Salaries, wages and incentives		365		351		356		4	%		2	%		716		686		4	%
Employee benefits		79		97		73		(19	%)		9	%		176		159		11	%
Net occupancy expense		75		77		73		(3	%)		2	%		152		150		1	%
Technology and communications		48		45		45		6	%		6	%		93		90		3	%
Equipment expense		28		29		31		(4	%)		(9	%)		57		60		(6	%)
Card and processing expense		29		29		31		1	%		(8	%)		58		56		3	%
Other noninterest expense		277		290		326		(4	%)		(15	%)		567		690		(18	%)

Total noninterest expense		901		918		935		(2	%)		(4	%)		1,819		1,891		(4	%)

Income before income taxes		506		377		242		34	%		109	%		883		220		301	%
Applicable income taxes		169		112		50		51	%		238	%		281		38		639	%

Net Income		337		265		192		27	%		75	%		602		182		231	%
Less: Net income attributable to noncontrolling interest		—		—		—		NM			NM			—		NM		NM

Net income attributable to Bancorp		337		265		192		27	%		75	%		602		182		231	%
Dividends on preferred stock		9		177		62		(95	%)		(85	%)		185		125		48	%

Net income available to common shareholders	$	328	$	88	$	130		272	%		153	%	$	417	$	57		625	%

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Income (Taxable Equivalent)

$ in millions

(unaudited)


	For the Three Months Ended
	June 2011		March 2011		December 2010		September 2010		June 2010
Interest Income
Interest and fees on loans and leases	$	893	$	910	$	950	$	962	$	951
Interest on securities		151		149		152		161		163
Interest on other short-term investments		1		1		2		3		2

Total interest income		1,045		1,060		1,104		1,126		1,116
Taxable equivalent adjustment		5		5		5		4		5

Total interest income (taxable equivalent)		1,050		1,065		1,109		1,130		1,121

Interest Expense
Interest on deposits		97		106		118		141		161
Interest on short-term borrowings		1		1		1		1		1
Interest on long-term debt		83		74		71		72		72

Total interest expense		181		181		190		214		234


Net interest income (taxable equivalent)		869		884		919		916		887

Provision for loan and lease losses		113		168		166		457		325

Net interest income (taxable equivalent) after provision for loan and lease losses		756		716		753		459		562

Noninterest Income
Service charges on deposits		126		124		140		143		149
Corporate banking revenue		95		86		103		86		93
Mortgage banking net revenue		162		102		149		232		114
Investment advisory revenue		95		98		93		90		87
Card and processing revenue		89		80		81		77		84
Other noninterest income		83		81		55		195		85
Securities gains, net		6		8		21		4		8
Securities gains, net - non-qualifying hedges on mortgage servicing rights		—		5		14		—		—

Total noninterest income		656		584		656		827		620

Noninterest Expense
Salaries, wages and incentives		365		351		385		360		356
Employee benefits		79		97		73		82		73
Net occupancy expense		75		77		76		72		73
Technology and communications		48		45		52		48		45
Equipment expense		28		29		32		30		31
Card and processing expense		29		29		26		26		31
Other noninterest expense		277		290		343		361		326

Total noninterest expense		901		918		987		979		935

Income before income taxes (taxable equivalent)		511		382		422		307		247
Taxable equivalent adjustment		5		5		5		4		5

Income before income taxes		506		377		417		303		242
Applicable income taxes		169		112		83		65		50

Net Income		337		265		334		238		192
Less: Net Income attributable to noncontrolling interest		—		—		1		—		—

Net income attributable to Bancorp		337		265		333		238		192
Dividends on preferred stock		9		177		63		63		62

Net income available to common shareholders	$	328	$	88	$	270	$	175	$	130

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)


	As of									% Change
	June 2011			March 2011			June 2010			Seq			Yr/Yr
Assets
Cash and due from banks	$	2,380		$	2,121		$	2,216			12	%		7	%
Available-for-sale and other securities (a)		15,502			15,135			16,021			2	%		(3	%)
Held-to-maturity securities (b)		344			346			354			(1	%)		(3	%)
Trading securities		217			216			270			—			(20	%)
Other short-term investments		1,370			2,481			4,322			(45	%)		(68	%)
Loans held for sale		1,185			1,291			2,150			(8	%)		(45	%)
Portfolio loans and leases:
Commercial and industrial loans		28,099			27,344			26,008			3	%		8	%
Commercial mortgage loans		10,233			10,510			11,481			(3	%)		(11	%)
Commercial construction loans		1,778			1,980			2,965			(10	%)		(40	%)
Commercial leases		3,326			3,367			3,271			(1	%)		2	%
Residential mortgage loans		9,849			9,530			7,707			3	%		28	%
Home equity		11,048			11,222			11,987			(2	%)		(8	%)
Automobile loans		11,315			11,129			10,285			2	%		10	%
Credit card		1,856			1,821			1,841			2	%		1	%
Other consumer loans and leases		463			562			687			(18	%)		(33	%)

Portfolio loans and leases		77,967			77,465			76,232			1	%		2	%
Allowance for loan and lease losses		(2,614	)		(2,805	)		(3,693	)		(7	%)		(29	%)

Portfolio loans and leases, net		75,353			74,660			72,539			1	%		4	%
Bank premises and equipment		2,395			2,389			2,374			—			1	%
Operating lease equipment		492			513			489			(4	%)		1	%
Goodwill		2,417			2,417			2,417			—			—
Intangible assets		49			55			83			(11	%)		(40	%)
Servicing rights		847			894			646			(5	%)		31	%
Other assets		8,254			7,967			8,144			4	%		1	%

Total assets	$	110,805		$	110,485		$	112,025			—			(1	%)


Liabilities
Deposits:
Demand	$	22,589		$	22,066		$	19,256			2	%		17	%
Interest checking		18,072			18,597			17,759			(3	%)		2	%
Savings		21,764			21,697			19,646			—			11	%
Money market		4,859			5,184			4,666			(6	%)		4	%
Foreign office		3,271			3,569			3,430			(8	%)		(5	%)
Other time		6,399			7,043			10,966			(9	%)		(42	%)
Certificates - $100,000 and over		3,642			4,160			6,389			(12	%)		(43	%)
Other		2			1			3			223	%		(26	%)

Total deposits		80,598			82,317			82,115			(2	%)		(2	%)
Federal funds purchased		403			332			240			21	%		68	%
Other short-term borrowings		2,702			1,297			1,556			108	%		74	%
Accrued taxes, interest and expenses		1,067			844			721			26	%		48	%
Other liabilities		3,282			2,948			2,703			11	%		21	%
Long-term debt		10,152			10,555			10,989			(4	%)		(8	%)

Total liabilities		98,204			98,293			98,324			—			—
Equity
Common stock		2,051			2,051			1,779			—			15	%
Preferred stock		398			398			3,631			—			(89	%)
Capital surplus		2,769			2,824			1,696			(2	%)		63	%
Retained earnings		7,024			6,752			6,289			4	%		12	%
Accumulated other comprehensive income		396			263			440			50	%		(10	%)
Treasury stock		(66	)		(125	)		(134	)		(47	%)		(51	%)

Total Bancorp shareholders’ equity		12,572			12,163			13,701			3	%		(8	%)
Noncontrolling interest		29			29			—			—			NM

Total Equity		12,601			12,192			13,701			3	%		(8	%)

Total liabilities and equity	$	110,805		$	110,485		$	112,025			—			(1	%)

(a) Amortized cost	$	14,889		$	14,707		$	15,356			1	%		(3	%)
(b) Market values		344			346			354			(1	%)		(3	%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized		2,000,000			2,000,000			2,000,000			—			—
Outstanding, excluding treasury		919,818			918,728			796,320			—			16	%
Treasury		4,074			5,165			5,184			(21	%)		(21	%)

Fifth Third Bancorp and Subsidiaries

Consolidated Balance Sheets

$ in millions, except per share data

(unaudited)


	As of
	June 2011			March 2011			December 2010			September 2010			June 2010
Assets
Cash and due from banks	$	2,380		$	2,121		$	2,159		$	2,215		$	2,216
Available-for-sale and other securities (a)		15,502			15,135			15,414			15,975			16,021
Held-to-maturity securities (b)		344			346			353			354			354
Trading securities		217			216			294			320			270
Other short-term investments		1,370			2,481			1,515			3,271			4,322
Loans held for sale		1,185			1,291			2,216			2,733			2,150
Portfolio loans and leases:
Commercial and industrial loans		28,099			27,344			27,191			26,302			26,008
Commercial mortgage loans		10,233			10,510			10,845			10,985			11,481
Commercial construction loans		1,778			1,980			2,048			2,349			2,965
Commercial leases		3,326			3,367			3,378			3,304			3,271
Residential mortgage loans		9,849			9,530			8,956			7,975			7,707
Home equity		11,048			11,222			11,513			11,774			11,987
Automobile loans		11,315			11,129			10,983			10,738			10,285
Credit card		1,856			1,821			1,896			1,832			1,841
Other consumer loans and leases		463			562			681			750			687

Portfolio loans and leases		77,967			77,465			77,491			76,009			76,232
Allowance for loan and lease losses		(2,614	)		(2,805	)		(3,004	)		(3,194	)		(3,693	)

Portfolio loans and leases, net		75,353			74,660			74,487			72,815			72,539
Bank premises and equipment		2,395			2,389			2,389			2,377			2,374
Operating lease equipment		492			513			479			470			489
Goodwill		2,417			2,417			2,417			2,417			2,417
Intangible assets		49			55			62			72			83
Servicing rights		847			894			822			599			646
Other assets		8,254			7,967			8,400			8,704			8,144

Total assets	$	110,805		$	110,485		$	111,007		$	112,322		$	112,025


Liabilities
Deposits:
Demand	$	22,589		$	22,066		$	21,413		$	20,109		$	19,256
Interest checking		18,072			18,597			18,560			17,225			17,759
Savings		21,764			21,697			20,903			20,260			19,646
Money market		4,859			5,184			5,035			5,064			4,666
Foreign office		3,271			3,569			3,721			3,807			3,430
Other time		6,399			7,043			7,728			9,379			10,966
Certificates - $100,000 and over		3,642			4,160			4,287			5,515			6,389
Other		2			1			1			3			3

Total deposits		80,598			82,317			81,648			81,362			82,115
Federal funds purchased		403			332			279			368			240
Other short-term borrowings		2,702			1,297			1,574			1,775			1,556
Accrued taxes, interest and expenses		1,067			844			889			869			721
Other liabilities		3,282			2,948			2,979			3,082			2,703
Long-term debt		10,152			10,555			9,558			10,953			10,989

Total liabilities		98,204			98,293			96,927			98,409			98,324
Equity
Common stock		2,051			2,051			1,779			1,779			1,779
Preferred stock		398			398			3,654			3,642			3,631
Capital surplus		2,769			2,824			1,715			1,707			1,696
Retained earnings		7,024			6,752			6,719			6,456			6,289
Accumulated other comprehensive income		396			263			314			432			440
Treasury stock		(66	)		(125	)		(130	)		(132	)		(134	)

Total Bancorp shareholders’ equity		12,572			12,163			14,051			13,884			13,701
Noncontrolling interest		29			29			29			29			—

Total Equity		12,601			12,192			14,080			13,913			13,701

Total liabilities and equity	$	110,805		$	110,485		$	111,007		$	112,322		$	112,025

(a) Amortized cost	$	14,889		$	14,707		$	14,919		$	15,308		$	15,356
(b) Market values		344			346			353			354			354
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized		2,000,000			2,000,000			2,000,000			2,000,000			2,000,000
Outstanding, excluding treasury		919,818			918,728			796,273			796,283			796,320
Treasury		4,074			5,165			5,232			5,221			5,184

Fifth Third Bancorp and Subsidiaries

Consolidated Statements of Changes in Equity

$ in millions

(unaudited)


	For the Three Months Ended						Year to Date
	June 2011			June 2010			June 2011			June 2010
Total equity, beginning	$	12,192		$	13,408		$	14,080		$	13,497
Net income attributable to Bancorp		337			192			602			182
Other comprehensive income, net of tax:
Change in unrealized gains and (losses):
Available-for-sale securities		121			164			77			215
Qualifying cash flow hedges		10			(14	)		1			(20	)
Change in accumulated other comprehensive income related to employee benefit plans		2			2			4			4

Comprehensive income		470			344			684			381
Cash dividends declared:
Common stock		(55	)		(8	)		(110	)		(16	)
Preferred stock		(9	)		(51	)		(33	)		(103	)
Issuance of common stock		—			—			1,648			—
TARP repayment		—			—			(3,408	)		—
Stock-based awards exercised, including treasury shares issued		—			(3	)		1			(3	)
Loans repaid (issued) related to exercise of stock-based awards, net		—			—			1			—
Redemption of preferred stock warrants issued under TARP CPP		—			—			(280	)		—
Stock-based compensation expense		3			11			18			22
Impact of cumulative effect of change in accounting principle		—			—			—			(77	)

Total equity, ending	$	12,601		$	13,701		$	12,601		$	13,701

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	For the Three Months Ended									% Change
	June 2011			March 2011			June 2010			Seq			Yr/Yr
Assets
Interest-earning assets:
Commercial and industrial loans	$	27,970		$	27,404		$	26,179			2	%		7	%
Commercial mortgage loans		10,491			10,816			11,772			(3	%)		(11	%)
Commercial construction loans		1,950			2,085			3,258			(6	%)		(40	%)
Commercial leases		3,349			3,364			3,336			—			—
Residential mortgage loans		10,655			10,736			9,390			(1	%)		13	%
Home equity		11,144			11,376			12,102			(2	%)		(8	%)
Automobile loans		11,188			11,070			10,170			1	%		10	%
Credit card		1,834			1,852			1,859			(1	%)		(1	%)
Other consumer loans and leases		572			676			741			(15	%)		(23	%)
Taxable securities		15,115			15,156			16,451			—			(9	%)
Tax exempt securities		96			197			154			(51	%)		(60	%)
Other short-term investments		1,981			1,937			4,285			2	%		(54	%)

Total interest-earning assets		96,345			96,669			99,698			—			(3	%)
Cash and due from banks		2,356			2,268			2,163			4	%		9	%
Other assets		15,298			14,897			14,550			3	%		5	%
Allowance for loan and lease losses		(2,799	)		(2,990	)		(3,798	)		(6	%)		(26	%)

Total assets	$	111,200		$	110,844		$	112,613			—			(1	%)

Liabilities
Interest-bearing liabilities:
Interest checking	$	18,701		$	18,539		$	18,652			1	%		—
Savings		21,817			21,324			19,446			2	%		12	%
Money market		5,009			5,136			4,679			(2	%)		7	%
Foreign office		3,805			3,580			3,325			6	%		14	%
Other time		6,738			7,363			11,336			(8	%)		(41	%)
Certificates - $100,000 and over		3,955			4,226			6,354			(6	%)		(38	%)
Other		2			1			5			77	%		(54	%)
Federal funds purchased		344			310			264			11	%		30	%
Other short-term borrowings		1,605			1,638			1,478			(2	%)		9	%
Long-term debt		10,527			10,255			10,876			3	%		(3	%)

Total interest-bearing liabilities		72,503			72,372			76,415			—			(5	%)
Demand deposits		22,174			21,582			19,406			3	%		14	%
Other liabilities		4,129			3,809			3,229			8	%		28	%

Total liabilities		98,806			97,763			99,050			1	%		—
Equity		12,394			13,081			13,563			(5	%)		(9	%)

Total liabilities and equity	$	111,200		$	110,844		$	112,613			—			(1	%)


Yield Analysis
Interest-earning assets:
Commercial and industrial loans		4.35	%		4.45	%		4.75	%
Commercial mortgage loans		4.00	%		4.11	%		4.10	%
Commercial construction loans		3.01	%		3.15	%		3.15	%
Commercial leases		4.06	%		4.17	%		4.51	%
Residential mortgage loans		4.54	%		4.67	%		4.77	%
Home equity		3.91	%		3.96	%		4.01	%
Automobile loans		4.81	%		5.10	%		6.01	%
Credit card		9.91	%		10.43	%		10.91	%
Other consumer loans and leases		22.02	%		18.54	%		13.65	%

Total loans and leases		4.54	%		4.67	%		4.86	%
Taxable securities		3.97	%		3.96	%		3.93	%
Tax exempt securities		6.41	%		4.77	%		6.98	%
Other short-term investments		0.25	%		0.25	%		0.20	%

Total interest-earning assets		4.37	%		4.47	%		4.51	%

Interest-bearing liabilities:
Interest checking		0.26	%		0.28	%		0.30	%
Savings		0.33	%		0.43	%		0.60	%
Money market		0.29	%		0.32	%		0.42	%
Foreign office		0.29	%		0.31	%		0.36	%
Other time		2.40	%		2.36	%		2.70	%
Certificates - $100,000 and over		2.05	%		1.99	%		2.13	%
Other		0.02	%		0.05	%		0.10	%
Federal funds purchased		0.11	%		0.14	%		0.17	%
Other short-term borrowings		0.16	%		0.19	%		0.21	%
Long-term debt		3.16	%		2.95	%		2.64	%

Total interest-bearing liabilities		1.00	%		1.02	%		1.23	%
Ratios:
Net interest margin (taxable equivalent)		3.62	%		3.71	%		3.57	%
Net interest rate spread (taxable equivalent)		3.37	%		3.45	%		3.28	%
Interest-bearing liabilities to interest-earning assets		75.25	%		74.87	%		76.65	%

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	Year to Date						% Change
	June 2011			June 2010			Yr/Yr
Assets
Interest-earning assets:
Commercial and industrial loans	$	27,689		$	26,239			6	%
Commercial mortgage loans		10,652			11,804			(10	%)
Commercial construction loans		2,017			3,518			(43	%)
Commercial leases		3,356			3,402			(1	%)
Residential mortgage loans		10,695			9,434			13	%
Home equity		11,259			12,219			(8	%)
Automobile loans		11,130			10,178			9	%
Credit card		1,843			1,899			(3	%)
Other consumer loans and leases		624			775			(19	%)
Taxable securities		15,135			16,843			(10	%)
Tax exempt securities		147			165			(12	%)
Other short-term investments		1,959			3,718			(47	%)

Total interest-earning assets		96,506			100,194			(4	%)
Cash and due from banks		2,313			2,205			5	%
Other assets		15,098			14,407			5	%
Allowance for loan and lease losses		(2,894	)		(3,785	)		(24	%)

Total assets	$	111,023		$	113,021			(2	%)

Liabilities
Interest-bearing liabilities:
Interest checking	$	18,621		$	19,090			(2	%)
Savings		21,572			18,960			14	%
Money market		5,072			4,651			9	%
Foreign office		3,693			3,043			21	%
Other time		7,049			11,696			(40	%)
Certificates - $100,000 and over		4,090			6,700			(39	%)
Other		2			6			(72	%)
Federal funds purchased		327			242			35	%
Other short-term borrowings		1,622			1,464			11	%
Long-term debt		10,389			11,179			(7	%)

Total interest-bearing liabilities		72,437			77,031			(6	%)
Demand deposits		21,880			19,115			14	%
Other liabilities		3,970			3,334			19	%

Total liabilities		98,287			99,480			(1	%)
Equity		12,736			13,541			(6	%)

Total liabilities and equity	$	111,023		$	113,021			(2	%)


Yield Analysis
Interest-earning assets:
Commercial and industrial loans		4.40	%		4.68	%
Commercial mortgage loans		4.06	%		4.15	%
Commercial construction loans		3.08	%		3.03	%
Commercial leases		4.12	%		4.53	%
Residential mortgage loans		4.60	%		4.98	%
Home equity		3.94	%		4.01	%
Automobile loans		4.95	%		6.13	%
Credit card		10.17	%		10.83	%
Other consumer loans and leases		20.14	%		12.73	%

Total loans and leases		4.61	%		4.87	%
Taxable securities		3.96	%		4.08	%
Tax exempt securities		5.31	%		7.03	%
Other short-term investments		0.25	%		0.19	%

Total interest-earning assets		4.42	%		4.56	%

Interest-bearing liabilities:
Interest checking		0.27	%		0.29	%
Savings		0.38	%		0.64	%
Money market		0.30	%		0.44	%
Foreign office		0.30	%		0.35	%
Other time		2.38	%		2.73	%
Certificates - $100,000 and over		2.02	%		2.14	%
Other		0.03	%		0.05	%
Federal funds purchased		0.12	%		0.15	%
Other short-term borrowings		0.18	%		0.22	%
Long-term debt		3.05	%		2.64	%

Total interest-bearing liabilities		1.01	%		1.26	%

Ratios:
Net interest margin (taxable equivalent)		3.66	%		3.60	%
Net interest rate spread (taxable equivalent)		3.41	%		3.30	%
Interest-bearing liabilities to interest-earning assets		75.06	%		76.88	%

Fifth Third Bancorp and Subsidiaries

Average Balance Sheet and Yield Analysis

$ in millions, except share data

(unaudited)


	For the Three Months Ended
	June 2011			March 2011			December 2010			September 2010			June 2010
Assets
Interest-earning assets:
Commercial and industrial loans	$	27,970		$	27,404		$	26,509		$	26,348		$	26,179
Commercial mortgage loans		10,491			10,816			11,276			11,462			11,772
Commercial construction loans		1,950			2,085			2,289			2,955			3,258
Commercial leases		3,349			3,364			3,314			3,257			3,336
Residential mortgage loans		10,655			10,736			10,693			9,897			9,390
Home equity		11,144			11,376			11,655			11,897			12,102
Automobile loans		11,188			11,070			10,825			10,517			10,170
Credit card		1,834			1,852			1,844			1,838			1,859
Other consumer loans and leases		572			676			743			683			741
Taxable securities		15,115			15,156			15,367			15,580			16,451
Tax exempt securities		96			197			268			273			154
Other short-term investments		1,981			1,937			2,431			3,456			4,285

Total interest-earning assets		96,345			96,669			97,214			98,163			99,698
Cash and due from banks		2,356			2,268			2,284			2,283			2,163
Other assets		15,298			14,897			15,449			15,088			14,550
Allowance for loan and lease losses		(2,799	)		(2,990	)		(3,089	)		(3,680	)		(3,798	)

Total assets	$	111,200		$	110,844		$	111,858		$	111,854		$	112,613

Liabilities
Interest-bearing liabilities:
Interest checking	$	18,701		$	18,539		$	17,578		$	17,142		$	18,652
Savings		21,817			21,324			20,602			19,905			19,446
Money market		5,009			5,136			4,985			4,940			4,679
Foreign office		3,805			3,580			3,733			3,592			3,325
Other time		6,738			7,363			8,490			10,261			11,336
Certificates - $100,000 and over		3,955			4,226			4,858			6,096			6,354
Other		2			1			9			4			5
Federal funds purchased		344			310			376			302			264
Other short-term borrowings		1,605			1,638			1,728			1,880			1,478
Long-term debt		10,527			10,255			10,298			10,954			10,876

Total interest-bearing liabilities		72,503			72,372			72,657			75,076			76,415
Demand deposits		22,174			21,582			21,066			19,362			19,406
Other liabilities		4,129			3,809			4,099			3,544			3,229

Total liabilities		98,806			97,763			97,822			97,982			99,050
Equity		12,394			13,081			14,036			13,872			13,563

Total liabilities and equity	$	111,200		$	110,844		$	111,858		$	111,854		$	112,613


Yield Analysis
Interest-earning assets:
Commercial and industrial loans		4.35	%		4.45	%		4.64	%		4.81	%		4.75	%
Commercial mortgage loans		4.00	%		4.11	%		4.17	%		3.97	%		4.10	%
Commercial construction loans		3.01	%		3.15	%		2.90	%		3.06	%		3.15	%
Commercial leases		4.06	%		4.17	%		4.21	%		4.34	%		4.51	%
Residential mortgage loans		4.54	%		4.67	%		4.64	%		4.81	%		4.77	%
Home equity		3.91	%		3.96	%		3.98	%		3.99	%		4.01	%
Automobile loans		4.81	%		5.10	%		5.41	%		5.71	%		6.01	%
Credit card		9.91	%		10.43	%		10.55	%		10.70	%		10.91	%
Other consumer loans and leases		22.02	%		18.54	%		18.68	%		18.59	%		13.65	%

Total loans and leases		4.54	%		4.67	%		4.78	%		4.85	%		4.86	%
Taxable securities		3.97	%		3.96	%		3.88	%		4.06	%		3.93	%
Tax exempt securities		6.41	%		4.77	%		4.27	%		4.05	%		6.98	%
Other short-term investments		0.25	%		0.25	%		0.25	%		0.36	%		0.20	%

Total interest-earning assets		4.37	%		4.47	%		4.52	%		4.57	%		4.51	%

Interest-bearing liabilities:
Interest checking		0.26	%		0.28	%		0.28	%		0.29	%		0.30	%
Savings		0.33	%		0.43	%		0.45	%		0.48	%		0.60	%
Money market		0.29	%		0.32	%		0.34	%		0.39	%		0.42	%
Foreign office		0.29	%		0.31	%		0.34	%		0.38	%		0.36	%
Other time		2.40	%		2.36	%		2.39	%		2.57	%		2.70	%
Certificates - $100,000 and over		2.05	%		1.99	%		1.94	%		1.95	%		2.13	%
Other		0.02	%		0.05	%		0.26	%		0.09	%		0.10	%
Federal funds purchased		0.11	%		0.14	%		0.19	%		0.17	%		0.17	%
Other short-term borrowings		0.16	%		0.19	%		0.19	%		0.21	%		0.21	%
Long-term debt		3.16	%		2.95	%		2.72	%		2.61	%		2.64	%

Total interest-bearing liabilities		1.00	%		1.02	%		1.04	%		1.13	%		1.23	%

Ratios:
Net interest margin (taxable equivalent)		3.62	%		3.71	%		3.75	%		3.70	%		3.57	%
Net interest rate spread (taxable equivalent)		3.37	%		3.45	%		3.48	%		3.44	%		3.28	%
Interest-bearing liabilities to interest-earning assets		75.25	%		74.87	%		74.74	%		76.48	%		76.65	%

Fifth Third Bancorp and Subsidiaries

Summary of Loans and Leases

$ in millions

(unaudited)


	For the Three Months Ended
	June 2011		March 2011		December 2010		September 2010		June 2010
Average Loans and Leases
Commercial:
Commercial and industrial loans	$	27,909	$	27,331	$	26,338	$	26,344	$	26,176
Commercial mortgage loans		10,394		10,685		10,985		11,375		11,659
Commercial construction loans		1,918		2,030		2,171		2,885		3,160
Commercial leases		3,349		3,364		3,314		3,257		3,336

Subtotal - commercial		43,570		43,410		42,808		43,861		44,331
Consumer:
Residential mortgage loans		9,654		9,282		8,382		7,837		7,805
Home equity		11,144		11,376		11,655		11,897		12,102
Automobile loans		11,188		11,070		10,825		10,517		10,170
Credit card		1,834		1,852		1,844		1,838		1,859
Other consumer loans and leases		547		646		722		667		706

Subtotal - consumer		34,367		34,226		33,428		32,756		32,642

Total average loans and leases (excluding held for sale)	$	77,937	$	77,636	$	76,236	$	76,617	$	76,973


Average loans held for sale		1,216		1,743		2,912		2,237		1,834

End of Period Loans and Leases
Commercial:
Commercial and industrial loans	$	28,099	$	27,344	$	27,191	$	26,302	$	26,008
Commercial mortgage loans		10,233		10,510		10,845		10,985		11,481
Commercial construction loans		1,778		1,980		2,048		2,349		2,965
Commercial leases		3,326		3,367		3,378		3,304		3,271

Subtotal - commercial		43,436		43,201		43,462		42,940		43,725
Consumer:
Residential mortgage loans		9,849		9,530		8,956		7,975		7,707
Home equity		11,048		11,222		11,513		11,774		11,987
Automobile loans		11,315		11,129		10,983		10,738		10,285
Credit card		1,856		1,821		1,896		1,832		1,841
Other consumer loans and leases		463		562		681		750		687

Subtotal - consumer		34,531		34,264		34,029		33,069		32,507

Total portfolio loans and leases	$	77,967	$	77,465	$	77,491	$	76,009	$	76,232


Core business activity		1,009		1,076		1,922		2,034		1,983
Portfolio management activity		176		216		294		699		167

Total loans held for sale		1,185		1,291		2,216		2,733		2,150

Operating lease equipment		492		513		479		470		489

Loans and Leases Serviced for Others (a):
Commercial and industrial loans		602		547		490		452		492
Commercial mortgage loans		304		328		337		335		315
Commercial construction loans		67		56		55		55		43
Commercial leases		104		118		125		133		143
Residential mortgage loans		56,026		55,447		54,234		52,433		51,325
Home equity		—		—		—		—		—
Automobile loans		—		—		—		—		—
Credit card		—		—		—		—		—
Other consumer loans and leases		—		—		—		—		—

Total loans and leases serviced for others		57,103		56,496		55,241		53,408		52,318

Total loans and leases serviced	$	136,747	$	135,765	$	135,427	$	132,620	$	131,189

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

Fifth Third Bancorp and Subsidiaries

Regulatory Capital (a)

$ in millions

(unaudited)


	As of
	June 2011			March 2011			December 2010			September 2010			June 2010
Tier I capital:
Bancorp shareholders’ equity	$	12,572		$	12,163		$	14,051		$	13,884		$	13,701
Goodwill and certain other intangibles		(2,536	)		(2,546	)		(2,546	)		(2,525	)		(2,537	)
Unrealized (gains) losses		(396	)		(263	)		(314	)		(432	)		(440	)
Qualifying trust preferred securities		2,312			2,763			2,763			2,763			2,763
Other		20			12			11			8			(25	)

Total tier I capital	$	11,972		$	12,129		$	13,965		$	13,698		$	13,462

Total risk-based capital:
Tier I capital	$	11,972		$	12,129		$	13,965		$	13,698		$	13,462
Qualifying allowance for credit losses		1,275			1,266			1,283			1,265			1,267
Qualifying subordinated notes		2,837			2,780			2,930			3,114			3,012

Total risk-based capital	$	16,084		$	16,175		$	18,178		$	18,077		$	17,741

Risk-weighted assets (b)	$	100,319		$	99,392		$	100,561		$	98,904		$	98,604

Ratios:
Average shareholders’ equity to average assets		11.12	%		11.77	%		12.52	%		12.38	%		12.04	%

Regulatory capital:

Fifth Third Bancorp
Tier I capital		11.93	%		12.20	%		13.89	%		13.85	%		13.65	%
Total risk-based capital		16.03	%		16.27	%		18.08	%		18.28	%		17.99	%
Tier I leverage		11.03	%		11.21	%		12.79	%		12.54	%		12.24	%
Tier I common equity		9.20	%		8.99	%		7.48	%		7.34	%		7.17	%

Fifth Third Bank
Tier I capital		13.26	%		13.61	%		13.13	%		14.48	%		14.23	%
Total risk-based capital		15.13	%		15.49	%		15.12	%		16.49	%		16.24	%
Tier I leverage		12.25	%		12.49	%		12.08	%		13.10	%		12.75	%
Tier I common equity		13.26	%		13.61	%		13.13	%		14.48	%		14.23	%

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

(b)

Under the banking agencies’ risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together resulting in the Bancorp’s total risk weighted assets.

Fifth Third Bancorp and Subsidiaries

Summary of Credit Loss Experience

$ in millions

(unaudited)


	For the Three Months Ended
	June 2011			March 2011			December 2010			September 2010			June 2010
Average loans and leases (excluding held for sale):
Commercial and industrial loans	$	27,909		$	27,331		$	26,338		$	26,344		$	26,176
Commercial mortgage loans		10,394			10,685			10,985			11,375			11,659
Commercial construction loans		1,918			2,030			2,171			2,885			3,160
Commercial leases		3,349			3,364			3,314			3,257			3,336
Residential mortgage loans		9,654			9,282			8,382			7,837			7,805
Home equity		11,144			11,376			11,655			11,897			12,102
Automobile loans		11,188			11,070			10,825			10,517			10,170
Credit card		1,834			1,852			1,844			1,838			1,859
Other consumer loans and leases		547			646			722			667			706

Total average loans and leases (excluding held for sale)	$	77,937		$	77,636		$	76,236		$	76,617		$	76,973


Losses charged off:
Commercial and industrial loans	($	86	)	($	90	)	($	98	)	($	247	)	($	111	)
Commercial mortgage loans		(51	)		(58	)		(83	)		(271	)		(85	)
Commercial construction loans		(21	)		(27	)		(15	)		(126	)		(45	)
Commercial leases		—			(1	)		(1	)		(1	)		(1	)
Residential mortgage loans		(37	)		(67	)		(63	)		(205	)		(85	)
Home equity		(58	)		(66	)		(68	)		(69	)		(64	)
Automobile loans		(18	)		(28	)		(28	)		(27	)		(32	)
Credit card		(31	)		(33	)		(35	)		(38	)		(44	)
Other consumer loans and leases		(41	)		(27	)		(8	)		(8	)		(5	)

Total losses		(343	)		(397	)		(399	)		(992	)		(472	)

Recoveries of losses previously charged off:
Commercial and industrial loans		10			7			13			10			7
Commercial mortgage loans		4			4			3			3			7
Commercial construction loans		1			1			4			5			2
Commercial leases		2			—			4			—			1
Residential mortgage loans		1			2			1			1			—
Home equity		4			3			3			3			3
Automobile loans		10			8			9			10			12
Credit card		3			2			2			2			2
Other consumer loans and leases		4			3			4			2			4

Total recoveries		39			30			43			36			38

Net losses charged off:
Commercial and industrial loans		(76	)		(83	)		(85	)		(237	)		(104	)
Commercial mortgage loans		(47	)		(54	)		(80	)		(268	)		(78	)
Commercial construction loans		(20	)		(26	)		(11	)		(121	)		(43	)
Commercial leases		2			(1	)		3			(1	)		—
Residential mortgage loans		(36	)		(65	)		(62	)		(204	)		(85	)
Home equity		(54	)		(63	)		(65	)		(66	)		(61	)
Automobile loans		(8	)		(20	)		(19	)		(17	)		(20	)
Credit card		(28	)		(31	)		(33	)		(36	)		(42	)
Other consumer loans and leases		(37	)		(24	)		(4	)		(6	)		(1	)

Total net losses charged off	($	304	)	($	367	)	($	356	)	($	956	)	($	434	)


Net charge-off Ratios:
Commercial and industrial loans		1.10	%		1.22	%		1.27	%		3.57	%		1.58	%
Commercial mortgage loans		1.83	%		2.04	%		2.86	%		9.34	%		2.68	%
Commercial construction loans		4.09	%		5.24	%		1.88	%		16.58	%		5.46	%
Commercial leases		(0.25	%)		0.04	%		(0.34	%)		0.10	%		(0.01	%)
Residential mortgage loans		1.50	%		2.82	%		2.93	%		10.37	%		4.35	%
Home equity		1.94	%		2.23	%		2.20	%		2.19	%		2.03	%
Automobile loans		0.29	%		0.73	%		0.68	%		0.65	%		0.80	%
Credit card		6.08	%		6.60	%		7.12	%		7.68	%		9.05	%
Other consumer loans and leases		26.47	%		17.16	%		4.09	%		3.88	%		0.31	%

Total net charge-off ratio		1.56	%		1.92	%		1.86	%		4.95	%		2.26	%

Fifth Third Bancorp and Subsidiaries

Asset Quality

$ in millions

(unaudited)


	For the Three Months Ended
	June 2011			March 2011			December 2010			September 2010			June 2010
Allowance for Credit Losses
Allowance for loan and lease losses, beginning	$	2,805		$	3,004		$	3,194		$	3,693		$	3,802
Total net losses charged off		(304	)		(367	)		(356	)		(956	)		(434	)
Provision for loan and lease losses		113			168			166			457			325

Allowance for loan and lease losses, ending	$	2,614		$	2,805		$	3,004		$	3,194		$	3,693

Reserve for unfunded commitments, beginning	$	211		$	227		$	231		$	254		$	260
Provision for unfunded commitments		(14	)		(16	)		(4	)		(23	)		(6	)

Reserve for unfunded commitments, ending	$	197		$	211		$	227		$	231		$	254


Components of allowance for credit losses:
Allowance for loan and lease losses	$	2,614		$	2,805		$	3,004		$	3,194		$	3,693
Reserve for unfunded commitments		197			211			227			231			254

Total allowance for credit losses	$	2,811		$	3,016		$	3,231		$	3,425		$	3,947


Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
Commercial and industrial loans	$	485		$	477		$	473		$	525		$	731
Commercial mortgage loans		417			415			407			464			773
Commercial construction loans		147			159			182			211			383
Commercial leases		16			11			11			30			45
Residential mortgage loans		145			140			152			124			282
Home equity		26			24			23			23			21
Automobile loans		1			1			1			1			1
Other consumer loans and leases		3			60			84			—			—

Total nonaccrual portfolio loans and leases		1,240			1,287			1,333			1,378			2,236
Restructured loans and leases - commercial (non accrual)		188			149			141			31			48
Restructured loans and leases - consumer (non accrual)		211			209			206			175			246

Total nonperforming portfolio loans and leases		1,639			1,645			1,680			1,584			2,530
Repossessed property		15			20			27			29			16
Other real estate owned		434			461			467			469			423

Total nonperforming assets (a)		2,088			2,126			2,174			2,082			2,969
Nonaccrual loans held for sale		147			184			247			680			163
Restructured loans - commercial (non accrual) held for sale		29			32			47			19			4

Total nonperforming assets including loans held for sale	$	2,264		$	2,342		$	2,468		$	2,781		$	3,136


Restructured portfolio consumer loans and leases (accrual)	$	1,593		$	1,573		$	1,560		$	1,588		$	1,602
Restructured portfolio commercial loans and leases (accrual)	$	266		$	243		$	228		$	146		$	113

Ninety days past due loans and leases:
Commercial and industrial loans	$	7		$	8		$	16		$	29		$	48
Commercial mortgage loans		12			8			11			29			53
Commercial construction loans		48			23			3			5			37
Commercial leases		1			—			—			1			4

Total commercial loans and leases		68			39			30			64			142

Residential mortgage loans		87			98			100			111			107
Home equity		84			84			89			87			90
Automobile loans		10			9			13			13			12
Credit card		30			36			42			42			46
Other consumer loans and leases		—			—			—			—			—

Total consumer loans and leases		211			227			244			253			255

Total ninety days past due loans and leases	$	279		$	266		$	274		$	317		$	397


Ratios
Net losses charged off as a percent of average loans and leases		1.56	%		1.92	%		1.86	%		4.95	%		2.26	%
Allowance for loan and lease losses:
As a percent of loans and leases		3.35	%		3.62	%		3.88	%		4.20	%		4.85	%
As a percent of nonperforming loans and leases (a)		160	%		170	%		179	%		202	%		146	%
As a percent of nonperforming assets (a)		125	%		132	%		138	%		153	%		124	%
Nonperforming loans and leases as a percent of portfolio loans, leases and other assets, including other real estate owned (a)		2.09	%		2.11	%		2.15	%		2.07	%		3.30	%
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned (a)		2.66	%		2.73	%		2.79	%		2.72	%		3.87	%
Nonperforming assets as a percent of total loans, leases and other assets, including other real estate owned		2.84	%		2.96	%		3.08	%		3.51	%		3.98	%

(a)	Does not include nonaccrual loans held for sale

Fifth Third Bancorp and Subsidiaries

Regulation G Non-GAAP Reconcilation

$ and shares in millions

(unaudited)


	For the Three Months Ended
	June 2011			March 2011			December 2010			September 2010			June 2010
Net income available to common shareholders (U.S. GAAP)		328			88			270			175			130
Add: Intangible amortization, net of tax		4			5			7			7			7

Tangible net income available to common shareholders		332			93			277			182			137
Tangible net income available to common shareholders (annualized) (a)		1,332			377			1,099			722			550

Average Bancorp shareholders’ equity (U.S. GAAP)		12,365			13,052			14,007			13,852			13,563
Less: Average preferred stock		398			1,557			3,648			3,637			3,626
Average goodwill		2,417			2,417			2,417			2,417			2,417
Average intangible assets		52			59			67			78			88

Average tangible common equity (b)		9,498			9,019			7,875			7,720			7,432

Total Bancorp shareholders’ equity (U.S. GAAP)		12,572			12,163			14,051			13,884			13,701
Less: Preferred stock		(398	)		(398	)		(3,654	)		(3,642	)		(3,631	)
Goodwill		(2,417	)		(2,417	)		(2,417	)		(2,417	)		(2,417	)
Intangible assets		(49	)		(55	)		(62	)		(72	)		(83	)

Tangible common equity, including unrealized gains / losses (c)		9,708			9,293			7,918			7,753			7,570
Less: Accumulated other comprehensive income / loss		(396	)		(263	)		(314	)		(432	)		(440	)

Tangible common equity, excluding unrealized gains / losses (d)		9,312			9,030			7,604			7,321			7,130
Add back: Preferred stock		398			398			3,654			3,642			3,631

Tangible equity (e)		9,710			9,428			11,258			10,963			10,761

Total assets (U.S. GAAP)		110,805			110,485			111,007			112,322			112,025
Less: Goodwill		(2,417	)		(2,417	)		(2,417	)		(2,417	)		(2,417	)
Intangible assets		(49	)		(55	)		(62	)		(72	)		(83	)

Tangible assets, including unrealized gains / losses (f)		108,339			108,013			108,528			109,833			109,525
Less: Accumulated other comprehensive income / loss, before tax		(609	)		(405	)		(483	)		(665	)		(677	)

Tangible assets, excluding unrealized gains / losses (g)		107,730			107,608			108,045			109,168			108,848

Total Bancorp shareholders’ equity (U.S. GAAP)		12,572			12,163			14,051			13,884			13,701
Goodwill and certain other intangibles		(2,536	)		(2,546	)		(2,546	)		(2,525	)		(2,537	)
Unrealized gains		(396	)		(263	)		(314	)		(432	)		(440	)
Qualifying trust preferred securities		2,312			2,763			2,763			2,763			2,763
Other		20			12			11			8			(25	)

Tier I capital		11,972			12,129			13,965			13,698			13,462
Less: Preferred stock		(398	)		(398	)		(3,654	)		(3,642	)		(3,631	)
Qualifying trust preferred securities		(2,312	)		(2,763	)		(2,763	)		(2,763	)		(2,763	)
Qualifying noncontrolling interest in consolidated subsidiaries		(30	)		(30	)		(30	)		(30	)		—

Tier I common equity (h)		9,232			8,938			7,518			7,263			7,068

Common shares outstanding (i)		920			919			796			796			796

Risk-weighted assets, determined in accordance with prescribed regulatory requirements (j)		100,319			99,392			100,561			98,904			98,604

Ratios:
Return on average tangible common equity (a) / (b)		14.02	%		4.18	%		13.95	%		9.35	%		7.40	%
Tangible equity (e) / (g)		9.01	%		8.76	%		10.42	%		10.04	%		9.89	%
Tangible common equity (excluding unrealized gains/losses) (d) / (g)		8.64	%		8.39	%		7.04	%		6.70	%		6.55	%
Tangible common equity (including unrealized gains/losses) (c) / (f)		8.96	%		8.60	%		7.30	%		7.06	%		6.91	%
Tangible common equity as a percent of risk-weighted assets (excluding unrealized gains/losses) (d) / (j)		9.28	%		9.09	%		7.56	%		7.40	%		7.23	%
Tangible book value per share (c) / (i)		10.55			10.11			9.94			9.74			9.51
Tier I common equity (h) / (j)		9.20	%		8.99	%		7.48	%		7.34	%		7.17	%

Fifth Third Bancorp and Subsidiaries

Segment Presentation

$ in millions

(unaudited)


For the three months ended June 30, 2011	Commercial Banking			Branch Banking			Consumer Lending			Investment Advisors			Other/ Eliminations			Total
Net interest income (a)		339			359			81			28			62			869
Provision for loan and lease losses		(147	)		(98	)		(55	)		(4	)		191			(113	)

Net interest income after provision for loan and lease losses		192			261			26			24			253			756
Total noninterest income		163			213			167			95			18			656
Total noninterest expense		(280	)		(393	)		(147	)		(104	)		23			(901	)

Net income before taxes		75			81			46			15			294			511
Applicable income taxes (a)		11			(29	)		(16	)		(5	)		(135	)		(174	)

Net income		86			52			30			10			159			337
Net income (loss) attributable to noncontrolling interest		—			—			—			—			—			—

Net income attributable to Bancorp		86			52			30			10			159			337
Dividends on preferred stock		—			—			—			—			9			9

Net income available to common shareholders		86			52			30			10			150			328

For the three months ended March 31, 2011	Commercial Banking			Branch Banking			Consumer Lending			Investment Advisors			Other/ Eliminations			Total
Net interest income (a)		333			336			93			28			94			884
Provision for loan and lease losses		(152	)		(113	)		(97	)		(5	)		199			(168	)

Net interest income after provision for loan and lease losses		181			223			(4	)		23			293			716
Total noninterest income		175			201			116			98			(6	)		584
Total noninterest expense		(274	)		(392	)		(157	)		(107	)		12			(918	)

Net income before taxes		82			32			(45	)		14			299			382
Applicable income taxes (a)		7			(11	)		16			(5	)		(124	)		(117	)

Net income		89			21			(29	)		9			175			265
Net income (loss) attributable to noncontrolling interest		—			—			—			—			—			—

Net income attributable to Bancorp		89			21			(29	)		9			175			265
Dividends on preferred stock		—			—			—			—			177			177

Net income available to common shareholders		89			21			(29	)		9			(2	)		88

For the three months ended December 31, 2010	Commercial Banking			Branch Banking			Consumer Lending			Investment Advisors			Other/ Eliminations			Total
Net interest income (a)		390			357			108			29			35			919
Provision for loan and lease losses		(135	)		(117	)		(93	)		(11	)		190			(166	)

Net interest income after provision for loan and lease losses		255			240			15			18			225			753
Total noninterest income		170			225			159			90			12			656
Total noninterest expense		(266	)		(390	)		(157	)		(108	)		(66	)		(987	)

Net income before taxes		159			75			17			—			171			422
Applicable income taxes (a)		(17	)		(26	)		(6	)		—			(39	)		(88	)

Net income		142			49			11			—			132			334
Net income (loss) attributable to noncontrolling interest		—			—			—			—			1			1

Net income attributable to Bancorp		142			49			11			—			131			333
Dividends on preferred stock		—			—			—			—			63			63

Net income available to common shareholders		142			49			11			—			68			270

For the three months ended September 30, 2010	Commercial Banking			Branch Banking			Consumer Lending			Investment Advisors			Other/ Eliminations			Total
Net interest income (a)		389			381			105			35			6			916
Provision for loan and lease losses		(559	)		(150	)		(235	)		(12	)		499			(457	)

Net interest income after provision for loan and lease losses		(170	)		231			(130	)		23			505			459
Total noninterest income		139			227			225			88			148			827
Total noninterest expense		(246	)		(387	)		(146	)		(101	)		(99	)		(979	)

Net income (loss) before taxes		(277	)		71			(51	)		10			554			307
Applicable income taxes (a)		132			(25	)		18			(4	)		(190	)		(69	)

Net income (loss)		(145	)		46			(33	)		6			364			238
Net income (loss) attributable to noncontrolling interest		—			—			—			—			—			—

Net income (loss) attributable to Bancorp		(145	)		46			(33	)		6			364			238
Dividends on preferred stock		—			—			—			—			63			63

Net income (loss) available to common shareholders		(145	)		46			(33	)		6			301			175

For the three months ended June 30, 2010	Commercial Banking			Branch Banking			Consumer Lending			Investment Advisors			Other/ Eliminations			Total
Net interest income (a)		390			385			93			36			(17	)		887
Provision for loan and lease losses		(188	)		(125	)		(114	)		(8	)		110			(325	)

Net interest income after provision for loan and lease losses		202			260			(21	)		28			93			562
Total noninterest income		164			229			122			87			18			620
Total noninterest expense		(241	)		(397	)		(132	)		(100	)		(65	)		(935	)

Net income (loss) before taxes		125			92			(31	)		15			46			247
Applicable income taxes (a)		(9	)		(33	)		13			(5	)		(21	)		(55	)

Net income (loss)		116			59			(18	)		10			25			192
Net income (loss) attributable to noncontrolling interest		—			—			—			—			—			—

Net income (loss) attributable to Bancorp		116			59			(18	)		10			25			192
Dividends on preferred stock		—			—			—			—			62			62

Net income (loss) available to common shareholders		116			59			(18	)		10			(37	)		130

(a)	Includes taxable equivalent adjustments of $5 million for the three months ended June 30, 2011, March 31, 2011 and December 31, 2010, $4 million for the three months ended September 30, 2010 and $5 million for the three months ended June 30, 2010.