EX-99.2 3 d911546dex992.htm EX-99.2 EX-99.2
1Q15 Earnings Conference Call
April 21, 2015
Refer to earnings release dated April 21, 2015 for further information.
Exhibit 99.2
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Cautionary statement
This
report
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 and adequate sources of funding and liquidity 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 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
from
Fifth
Third’s
investment
in,
relationship with, and nature of the operations of Vantiv, LLC; (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 and deliver products and
services 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.

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1Q15 in review
Balancing current earnings results with prudent decisions to increase long-term shareholder value
($ in millions)
1Q15
Seq.
YOY
Average Balances
Total loans & leases
1, 2
$90,508
($533)
$978
Core deposits
$98,194
$1,844
$6,682
Income Statement Data
Net interest income (taxable equivalent)
$852
(4%)
(5%)
Provision for loan and lease losses
69
(30%)
-
Noninterest income
660
1%
17%
Noninterest expense
923
1%
(3%)
Net income attributable to Bancorp
$382
(1%)
20%
Net income available to common
shareholders
$367
1%
15%
Financial Ratios
Earnings per share, diluted
0.44
2%
22%
Net interest margin
2.86%
(10bps)
(36bps)
Efficiency ratio
61.0%
140bps
(390bps)
Return on average assets
1.12%
(1bp)
12bps
Return on avg common equity
10.3%
30bps
130bps
Return on avg tangible common equity
12.3%
20bps
130bps
Tangible book value per share
$14.87
3%
11%
Note:
The
percentages
in
all
of
the
tables
in
this
presentation
are
calculated
on
actual
dollar
amounts
and
not
the
rounded
dollar
amounts.
1
Excludes loans held-for-sale
2
Includes impact of TDR loans moved to held-for-sale in 4Q14
3
Non-GAAP measure; see Reg. G reconciliation in appendix
Significant pre-tax items in 1Q15 results
(~$0.07 positive after-tax EPS impact):
—
$70MM positive valuation adjustment on
Vantiv warrant
—
$37MM gain on sale of TDRs
—
$17MM negative valuation adjustment on
Visa total return swap
1Q15 operating results solid despite continued
low interest rate environment; reflect typical 1Q
seasonality in fee income and benefits expense
Sequential comparisons reflect impact of TDR
transfer to held-for-sale in 4Q14
—
Reduced average loan balance by $694MM
—
4Q14 included $23MM of provision expense
related to the transfer
Credit quality continues to improve
—
NCO ratio 41bps of loans as of 1Q15
—
NPAs down $90MM compared with 4Q14;
NPA ratio 76bps
Strong capital ratios; tangible book value
per
share
3
up
11%
from
1Q14
3
2
3
3

4
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Balance sheet
Loan balances ($B)
•
Continuing to target prudent risk/reward
profile in lending
•
Average commercial loans up 1%
sequentially and up 3% year-over-year
–
Year-over-year growth primarily
driven by C&I and commercial
construction, partially offset by lower
commercial mortgage
–
End of period commercial line
utilization 32%; flat sequentially
•
Average consumer loans declined 2%
sequentially and 1% year-over-year;
includes impact of mortgage loans
transferred to held for sale at the end of
4Q14
•
Average transaction deposits up $1.8B
sequentially with increases in interest
checking, money market and demand
deposit balances
–
Consumer average transaction
deposits up 2% sequentially and up
6% year-over-year
–
Commercial average transaction
deposits up 1% sequentially and up
8% year-over-year
•
Core deposit to loan ratio of 108%
Average core deposit balances ($B)
Average securities and short-term
investments ($B)
•
Average securities up $2.7B from 1Q14
reflecting purchase of securities
•
Securities portfolio / total assets of 19.2%
in 1Q15, up from 16.4% a year ago
•
Average other short-term investments
increased $3.4B year-over-year reflecting
higher cash balances at the Federal
Reserve
Note: Numbers may not sum due to rounding.

5
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Net interest income
NII and NIM (FTE)
•
Net interest income down
$36MM from 4Q14
–
Decrease driven by the impact of changes to deposit advance product ($21MM) and negative impact from
lower day count ($13MM); decrease in deposit costs and increased
investment securities balances offset
negative effect of loan repricing
•
NIM decreased 10 bps
primarily sequentially reflecting changes to deposit advance product (7bps)
•
Year-over-year NII decreased $46MM and NIM decreased 36 bps
–
NII decrease driven by changes to deposit advance product and loan repricing
–
NIM decrease primarily driven by the impact of loan repricing
Yield Analysis
1Q14
4Q14
1Q15
Seq.
(bps)
YoY
(bps)
Commercial and industrial loans
3.35%
3.21%
3.16%
(5)
(19)
Commercial mortgage loans
3.43%
3.28%
3.27%
(1)
(16)
Commercial construction loans
3.48%
3.30%
3.23%
(7)
(25)
Commercial leases
3.09%
2.96%
2.90%
(6)
(19)
Residential mortgage loans
3.94%
3.80%
3.83%
3
(11)
Home equity
3.74%
3.68%
3.66%
(2)
(8)
Automobile loans
2.86%
2.73%
2.68%
(5)
(18)
Credit card
9.90%
10.08%
10.22%
14
32
Other consumer loans and leases
39.93%
31.97%
10.79%
(2,118)
(2,914)
Total loans and leases
3.72%
3.58%
3.46%
(12)
(26)
Taxable securities
3.33%
3.28%
3.30%
2
(3)
Tax exempt securities
5.51%
4.42%
5.24%
82
(27)
Other short-term investments
0.26%
0.26%
0.25%
(1)
(1)
Total interest-earning assets
3.58%
3.38%
3.28%
(10)
(30)
Total interest-bearing liabilities
0.51%
0.61%
0.60%
(1)
9
Net interest spread
3.07%
2.77%
2.68%
(9)
(39)

6
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•
4Q14 include $23MM of payments received from Vantiv
pursuant to TRA
1Q15
($ in millions)
Service charges on deposits
$135
(5%)
2%
Corporate banking revenue
92
(23%)
(11%)
Mortgage banking net revenue
86
40%
(21%)
Investment advisory revenue
108
7%
6%
Card and processing revenue
71
(6%)
5%
Other noninterest income¹
164
9%
NM
Securities gains, net
4
16%
(34%)
Total noninterest income
$660
1%
17%
Noninterest income
1
Net credit-related costs recognized in other noninterest income were $1MM in1Q15. This compares with $1MM  net credit-related costs in 4Q14, immaterial costs in 3Q14, $4MM  in 2Q14
and $10MM in 1Q14.
Compared with 4Q14
•
Record investment advisory revenue reflected seasonally
strong tax-related private client services and higher
securities and brokerage fees
•
Corporate banking revenue included a $21 million decline in
syndication fees due to decreased market activity and
strong 4Q14 results
•
Mortgage banking revenue results reflected higher gain on
sale margins, slightly higher originations and higher MSR
valuation adjustment
Compared with 1Q14
•
Decrease in mortgage banking revenue reflected  increased
servicing asset amortization and lower MSR valuation
adjustments in 1Q15
•
Corporate banking revenue results driven by decline in
syndication fees, institutional sales revenue, and lease
remarketing fees, offset by increased foreign exchange fees
1Q14
2Q14
3Q14
4Q14
1Q15
Reported noninterest income
$564
$736
$520
$653
$660
Gain on sale of Vantiv shares
-
(125)
-
-
-
Vantiv warrant valuation
36
(63)
53
(56)
(70)
Other Vantiv-related items
-
12
-
-
-
Valuation of Visa total return swap
(1)
16
3
19
17
Gain on sale of  TDRs
-
-
-
-
(37)
Land valuation adjustments
-
17
-
-
-
Securities (gains) / losses
(7)
(8)
(3)
(4)
(4)
Adjusted noninterest income
$592
$585
$573
$612
$566
Components of noninterest income
5 quarter trend ($MM)
Adjustments to remove (benefit) / detriment
Seq.
YOY

7
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Noninterest expense
1
Net
credit-related
costs
recognized
in
other
noninterest
expense
were
$14MM
in
1Q15.
This
compares
with
net
credit-related
costs
of
$33MM
in
4Q14,
$13MM
in
3Q14,
$6MM
in
2Q14
and
$9MM in 1Q14.
•
Expenses were up 1% sequentially, driven by a
seasonal increase in FICA and unemployment tax
expense recorded in employee benefits, partially
offset by lower credit-related costs¹
•
Excluding litigation reserve charges, year-over-year
expenses increased 2%, driven by higher incentive-
based compensation expense and increased credit-
related costs¹
1Q15
Seq.
YOY
($ in millions)
Salaries, wages and incentives
$369
1%
3%
Employee benefits
99
26%
(3%)
Net occupancy expense
79
2%
(1%)
Technology and communications
55
2%
3%
Equipment expense
31
1%
3%
Card and processing expense
36
(2%)
14%
Other noninterest expense¹
254
(7%)
(13%)
Total noninterest expense
$923
1%
(3%)
1Q14
2Q14
3Q14
4Q14
1Q15
Reported noninterest expense
$950
$954
$888
$918
$923
Litigation reserve charges
(51)
(61)
(4)
3
(2)
Severance expense
(4)
(1)
(2)
(6)
(1)
Adjusted noninterest expense
$895
$892
$882
$915
$920
5 quarter trend ($MM)
Components of noninterest expense
Adjustments to remove benefit / (detriment)

8
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Credit quality overview
Net charge-offs ($MM)
HFI Nonperforming assets ($MM)
NPAs down 7% sequentially and 27% from 1Q14;
lowest level since 2007
Reserve Coverage
Accruing 90+ Days Past Due ($MM)
Includes 1Q15 provision expense of $69MM,
reserve coverage levels remain solid
90 + delinquencies declined 17% from 1Q14
Net charge-offs down 52% sequentially and 46% year-over-year;
4Q14 included $87MM related to TDR transfer to held-for-sale

9
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Strong capital position
1
Non-GAAP measure; See Reg. G reconciliation in appendix.
2
Represents
Basel
III
common
equity
tier
1
ratio
under
the
final
capital
rule,
subject
to
phase-in
periods.
Fifth
Third
will
make
a
one-time
permanent
election
to
not
include
AOCI
in
common
equity
tier 1 capital in the March 31, 2015 regulatory filings.
Tier
1
Common
Ratio
1
(Basel I)
Avg.
Diluted
Shares
Outstanding
(MM)
and
Tangible
Book
Value
per
share
•
Received non-objection from Federal Reserve on
2015 CCAR plan
•
2015 CCAR plan included:
—
the potential repurchase of common shares in
an amount up to $765MM
—
a potential increase in the quarterly common
stock dividend to $0.14 in 2016
•
Announced $180MM of share repurchases in 1Q15
under 2014 CCAR plan; expected to be completed on
or before 4/23/15
EOP share impact
(MM)
Average share impact
(MM)
4Q14
1Q15
4Q14
1Q15
2Q15
$225MM ASR
1.9
-
4.0
0.3
-
$180MM ASR
8.3
0.8
6.3
2.7
0.1
$180MM ASR
-
8.5
-
6.0
2.6
10.2
9.3
10.5
9.0
2.7
Capital Actions
Impact of Share Repurchases
Common Equity
Tier
1
Ratio
2
(Basel III)
1

10
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Appendix

11
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Pre-tax
pre-provision
earnings
1
PPNR trend
1
Non-GAAP measure; see Reg. G reconciliation in appendix.
2
Prior quarters include similar adjustments.
3
There
are
limitations
on
the
usefulness
of
credit-adjusted
PPNR,
including
the
significant
degree
to
which
changes
in
credit
and
fair
value
are
integral,
recurring
components
of
the
Bancorp’s 
core
operations
as
a
financial
institution.
This
measure
has
been
included
herein
to
facilitate
a
greater
understanding
of
the
Bancorp’s
financial
condition.
Note:
1Q15
included
$3MM
in
mortgage
repurchase
provision.
4Q14
included
an
immaterial
amount
while
3Q14,
2Q14,
and
1Q14
included
the
impact
of
$3MM,
$1MM,
and
$3MM,
respectively
in
mortgage
repurchase
provision.
These
impacts
are
reflected
in
“Credit-related
items”
and
“Adjusted
Efficiency
Ratio”
listed
above.
PPNR decreased 6% sequentially, reflecting
impact of $91MM in net benefit in 1Q15 and
$38MM in 4Q14 from significant items. Excluding
those items, adjusted PPNR decreased 15%
sequentially, reflecting lower NII in 1Q15 and a
benefit of $23MM from Vantiv TRA payment in
4Q14
PPNR reconciliation
Efficiency ratio
($ in millions)
1Q14
2Q14
3Q14
4Q14
1Q15
Income before income taxes (U.S. GAAP) (a)
$438
$606
$464
$519
$515
Add: Provision expense (U.S. GAAP) (b)
69
76
71
99
69
PPNR (a) + (b)
$507
$682
$535
$618
$584
Adjustments to remove (benefit) / detriment ² :
In noninterest income:
Gain from sales of Vantiv shares
-
(125)
-
-
-
Vantiv warrant valuation
36
(63)
53
(56)
(70)
Reduction in equity method income from interest in Vantiv
-
12
-
-
-
Land valuation adjusments
-
17
-
-
-
Gain from sales of troubled debt restructurings
-
-
-
-
(37)
Valuation of 2009 Visa total return swap
(1)
16
3
19
17
Securities (gains) / losses
(7)
(8)
(3)
(4)
(4)
In noninterest expense:
Severance expense
4
1
2
6
1
Litigation reserve charges
51
61
4
(3)
2
Adjusted PPNR
$590
$593
$594
$580
$493
Credit-related items:
In noninterest income
10
4
(0)
1
1
In noninterest expense
9
6
13
33
14
Credit-adjusted PPNR
3
$609
$603
$607
$614
$508

12
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Mortgage banking results
•
$1.8B in originations; 40% purchase volume
–
Discontinued broker channel originations in 1Q14
•
1Q15 mortgage drivers:
–
Origination fees and gain on sale revenue up $8MM
–
Gain on sale margin up 48 bps sequentially driven by increased refinance activity given the
low level of interest rates during the quarter
–
Retaining conforming ARMs and shorter-term fixed-rate production on balance sheet
–
MSR valuation adjustments of positive $17MM; servicing rights amortization of $34MM
–
$59MM in gross servicing fees
Mortgage
originations
($B)
and
gain
on
sale
margin
1
Mortgage Banking Net Revenue ($MM)
Note: Numbers may not sum due to rounding.
1
Gain on sale margin represents gains on all loans originated for sale.
$86
$61
$109
$78
1
$61

13
Available and contingent borrowing capacity
(1Q15):
–
FHLB ~$14.2B available, ~$16.0B total
–
Federal Reserve ~$26.6B
Holding Company cash at 3/31/15: $2.5B
Cash currently sufficient to satisfy all fixed
obligations in a stressed environment for
more than 18 months (debt maturities,
common and preferred dividends, interest and
other expenses) without accessing capital
markets, relying on future dividends from
subsidiaries, or any other discretionary
actions
Holding company unsecured debt maturities ($MM)
Bank
unsecured
debt
maturities
($MM
–
excl.
Brokered
CDs)
Heavily core funded
Strong liquidity profile
S-T
wholesale
3%
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Interest rate risk management
Well-positioned for rising rates
•
NII benefits from asset re-pricings in a rising rate environment
–
64% of total loans are floating rate (81% of commercial and 39% of consumer)
–
Investment portfolio duration of approximately 4.3 years
–
Short-term wholesale funding represents only about 1.5% of total funding
–
Approximately $12B in non-core funding re-prices beyond one year
•
Interest rate sensitivities are based on conservative deposit assumptions
–
70%
beta
on
all
interest-bearing
deposit
and
sweep
balances
(~50%
betas
experienced
in
2004
–
2006
Fed
tightening
cycle)
–
No modeled re-pricing lag
–
Modeled non-interest bearing commercial DDA runoff of approximately $2.5B (about 10%) for each 100 bps increase in
rates
–
DDA runoff rolls into an interest bearing product with a 100% beta
Change in Interest Rates
+200
bps Shock
Change in Interest Rates
+100
bps Shock
+200
bps Ramp
1.54%
6.80%
(4.00%)
+25 bps Shock
+100
bps Ramp
0.83%
4.26%
-
-25 bps Shock
Betas 25% Higher
Betas 25% Lower
Change in Interest Rates
12
Months
13 to 24
Months
12
Months
Change in Interest Rates
12
Months
13 to 24
Months
12
Months
13 to 24
Months
+200
bps Ramp
1.26%
6.23%
1.82%
+200
bps Ramp
(1.54%)
0.47%
4.62%
13.12%
+100
bps Ramp
0.69%
3.98%
0.97%
+100
bps Ramp
(0.67%)
1.29%
2.32%
7.24%
4.55%
0.11%
$1B Balance Increase
13 to 24
Months
7.36%
ESTIMATED NII SENSITIVITY with DEMAND DEPOSIT BALANCE CHANGES
Percent Change in NII (FTE)
$1B Balance Decline
ESTIMATED NII SENSITIVITY PROFILE
ESTIMATED EVE SENSITIVITY PROFILE
Percent Change in NII (FTE)
12
Months
13 to 24
Months
12
Months
Percent Change in
NII (FTE)
ESTIMATED NII SENSITIVITY with DEPOSIT BETA CHANGES
ALCO Policy Limit
13 to 24
Months
(6.00%)
-
ALCO Policy Limit
(12.00%)
Change in EVE
(3.85%)
(1.33%)
(0.20%)
Note: In ramp scenarios, rate changes occur evenly over the first four quarters. Estimated results as of 1Q15, actual results may vary from these simulated results due to 
differences between forecasted and actual balance sheet composition, timing, magnitude, and frequency of interest rate changes, as well as changes in market conditions and
management strategies. Repricing percentage or “beta” is the estimated change in yield over 12 months as a result of a shock or ramp 100 bps parallel shift in the yield curve.

15
©
Fifth
Third
Bank
|
All
Rights
Reserved
NPL rollforward
NPL HFI Rollforward
Commercial
1Q14
2Q14
3Q14
4Q14
1Q15
458
           
464
           
396
           
385
           
367
           
Transfers to nonperforming
164
           
141
           
116
           
99
             
80
             
Transfers to performing
(3)
              
(67)
            
-
            
(1)
              
(1)
              
Transfers from held for sale
-
            
-
            
-
            
-
            
-
            
Transfers to held for sale
-
            
(1)
              
(3)
              
-
            
-
            
Loans sold from portfolio
(2)
              
(24)
            
(12)
            
(5)
              
(5)
              
Loan paydowns/payoffs
(43)
            
(54)
            
(39)
            
(45)
            
(62)
            
Transfers to other real estate owned
(7)
              
(18)
            
(9)
              
(7)
              
(9)
              
Charge-offs
(105)
         
(46)
            
(66)
            
(62)
            
(45)
            
Draws/other extensions of credit
2
               
1
               
2
               
3
               
-
            
464
           
396
           
385
           
367
           
325
           
Consumer
1Q14
2Q14
3Q14
4Q14
1Q15
293
           
269
           
244
           
235
           
212
           
Transfers to nonperforming
93
             
85
             
90
             
86
             
54
             
Transfers to performing
(50)
            
(44)
            
(40)
            
(33)
            
(23)
            
Transfers from held for sale
-
            
-
            
-
            
-
            
5
               
Transfers to held for sale
-
            
-
            
-
            
(24)
            
-
            
Loans sold from portfolio
-
            
-
            
-
            
-
            
-
            
Loan paydowns/payoffs
(29)
            
(11)
            
(5)
              
(5)
              
(8)
              
Transfers to OREO/other repossessed property
(24)
            
(24)
            
(21)
            
(20)
            
(17)
            
Charge-offs
(15)
            
(30)
            
(33)
            
(27)
            
(22)
            
Draws/other extensions of credit
1
               
(1)
              
-
            
-
            
-
            
269
           
244
           
235
           
212
           
201
           
Total NPL
733
           
640
           
620
           
579
           
526
           
Total new nonaccrual loans - HFI
257
           
226
206
185
134
           
Beginning NPL amount
Ending Commercial NPL
Beginning NPL amount
Ending Consumer NPL

16
©
Fifth
Third
Bank
|
All
Rights
Reserved
Commercial & industrial
Loans by geography
Credit trends
Loans by industry
Comments
•
Commercial & industrial loans represented 46% of total loans
and 42% of net charge-offs
•
C&I loans were up 3% sequentially and up 4% since 1Q14
* Excludes loans held-for-sale.
($ in millions)
1Q14
2Q14
3Q14
4Q14
1Q15
EOP Balance*
$40,591
$41,299
$41,072
$40,765
$42,052
Avg Loans*
$40,377
$41,374
$41,477
$41,277
$41,426
90+ days delinquent
$1
-
-
-
$2
as % of loans
NM
NM
NM
NM
NM
NPAs*
$304
$265
$278
$246
$216
as % of loans
0.75%
0.64%
0.68%
0.60%
0.58%
Net charge-offs
$97
$31
$50
$44
$38
as % of loans
0.97%
0.30%
0.48%
0.43%
0.38%
C&I

17
©
Fifth
Third
Bank
|
All
Rights
Reserved
Commercial real estate
Loans by geography
Credit trends
Loans by industry
Comments
•
Commercial mortgage loans represented 8% of total loans
—
Non-owner occupied 1Q15 NCO ratio of (0.2%)
—
Loans from FL/MI represented 34% of portfolio loans
and $1MM of portfolio losses in 1Q15
•
Commercial construction loans represented 2% of total loans
—
Portfolio focused on large professional developers
—
Top 3 categories:  Apartments, office and REIT
* Excludes loans held-for-sale.
($ in millions)
1Q14
2Q14
3Q14
4Q14
1Q15
EOP Balance*
$7,958
$7,805
$7,564
$7,399
$7,209
Avg Loans*
$7,981
$7,885
$7,633
$7,480
$7,241
NPAs*
$240
$212
$186
$195
$186
as % of loans
2.98%
2.69%
2.43%
2.62%
2.56%
Net charge-offs
$3
$9
$5
$10
$1
as % of loans
0.16%
0.44%
0.24%
0.53%
0.05%
Commercial mortgage
($ in millions)
1Q14
2Q14
3Q14
4Q14
1Q15
EOP Balance*
$1,218
$1,424
$1,702
$2,069
$2,302
Avg Loans*
$1,116
$1,362
$1,563
$1,909
$2,197
NPAs*
$46
$31
$19
$16
$16
as % of loans
3.68%
2.17%
1.09%
0.75%
0.67%
Net charge-offs
$5
$8
-
-
-
as % of loans
1.66%
2.26%
(0.11%)
(0.01%)
(0.06%)
Commercial construction

18
©
Fifth
Third
Bank
|
All
Rights
Reserved
Residential
mortgage
1
st
liens:
100%;
weighted
average
LTV:
72.9%
Weighted average origination FICO: 756
Origination FICO distribution:  <660 5%; 660-689 5%; 690-719 9%;
720-749 14%; 750+ 61%; Other^ 6%
(note: loans <660 includes CRA loans and FHA/VA loans)
Origination LTV distribution: <=70 39%; 70.1-80 35%; 80.1-90 7%;
90.1-95 5%; >95 14%
Vintage distribution: 2015: 5%, 2014: 18%, 2013: 20%; 2012 19%;
2011 12%; 2010 6%; 2009 4%; 2008 3%; 2007 3%; 2006 2%; 2005
4%; 2004 and prior 4%
14%
originated
through
3
rd
party;
performance
similar
to
direct
Loans by geography
Credit trends
Portfolio details
Comments
^ Includes acquired loans where FICO at origination is not available
* Excludes loans held-for-sale
•
Residential
mortgage
loans
represented
14%
of
total
loans
and
7%
of
net
charge-offs
•
Net charge-offs decreased by $1MM sequentially excluding
$87MM in 4Q14 related to the transfer of TDRs to held-for-sale
—
MI, IL, and IN account for 34%, 18%, and 14% of
residential mortgage net charge-offs, respectively
($ in millions)
1Q14
2Q14
3Q14
4Q14
1Q15
EOP Balance*
$12,626
$12,652
$12,941
$12,389
$12,569
Avg Loans*
$12,659
$12,611
$12,785
$13,046
$12,433
90+ days delinquent
$56
$60
$57
$56
$48
as % of loans
0.44%
0.47%
0.44%
0.44%
0.38%
NPAs*
$201
$172
$164
$126
$113
as % of loans
1.59%
1.36%
1.27%
1.01%
0.91%
Net charge-offs
$15
$8
$9
$94
$6
as % of loans
0.49%
0.24%
0.28%
2.87%
0.19%
Residential mortgage

19
©
Fifth
Third
Bank
|
All
Rights
Reserved
Home equity loans represented 10% of total loans and 15% of net
charge-offs
Approximately 12% of portfolio in broker product generated 20% total
loss
38%
of
Fifth
Third
2
nd
liens
are
behind
Fifth
Third
1
st
liens
2005/2006 vintages represent approximately 23% of portfolio; account
for 37% of losses
Home equity
1
st
liens:
35%;
2
nd
liens:
65%
Weighted average origination FICO: 753
Origination FICO distribution^: <660 3%; 660-689 7%; 690-719 12%;
720-749 16%; 750+ 54%; Other 8%
Average CLTV: 72%; Origination CLTV distribution: <=70 41%; 70.1-
80 24%; 80.1-90 18%; 90.1-95 6%; >95 11%
Vintage distribution: 2015: 1%; 2014: 8%, 2013: 6%; 2012 4%; 2011
3%; 2010 2%; 2009 3%; 2008 9%; 2007 9%; 2006 12%; 2005 11%; 2004
and prior 32%
% through broker channels: 12% WA FICO: 734 brokered, 756 direct;
WA CLTV: 88% brokered; 70% direct
Portfolio details
Comments
Brokered loans by geography
Direct loans by geography
Credit trends
Note: Brokered and direct home equity net charge-off ratios are calculated based on end of period loan balances
^ Includes acquired loans where FICO at origination is not available
* Excludes loans held-for-sale
($ in millions)
1Q14
2Q14
3Q14
4Q14
1Q15
EOP Balance*
$7,970
$7,925
$7,893
$7,824
$7,686
90+ days delinquent
-
-
-
-
-
as % of loans
NM
NM
NM
NM
NM
Net charge-offs
$11
$11
$10
$8
$11
as % of loans
0.55%
0.58%
0.51%
0.42%
0.59%
Home equity - direct
($ in millions)
1Q14
2Q14
3Q14
4Q14
1Q15
EOP Balance*
$1,155
$1,131
$1,094
$1,062
$1,028
90+ days delinquent
-
-
-
-
-
as % of loans
NM
NM
NM
NM
NM
Net charge-offs
$5
$7
$4
$3
$3
as % of loans
1.85%
2.35%
1.42%
1.05%
1.11%
Home equity - brokered

20
©
Fifth
Third
Bank
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All
Rights
Reserved
Regulation G Non-GAAP reconciliation
Fifth Third Bancorp and Subsidiaries
Regulation G Non-GAAP Reconcilation
$ and shares in millions
(unaudited)
March
December
September
June
March
2015
2014
2014
2014
2014
Income before income taxes (U.S. GAAP)
515
519
464
606
438
Add:
Provision expense (U.S. GAAP)
69
99
71
76
69
Pre-provision net revenue
584
618
535
682
507
Net income available to common shareholders (U.S. GAAP)
367
362
328
416
309
Add:
Intangible amortization, net of tax
-
1
1
1
1
Tangible net income available to common shareholders
367
363
329
417
310
Tangible net income available to common shareholders (annualized) (a)
1,488
1,440
1,305
1,673
1,257
Average Bancorp shareholders' equity (U.S. GAAP)
15,820
15,644
15,486
15,157
14,862
Less:
Average preferred stock
(1,331)
(1,331)
(1,331)
(1,119)
(1,034)
Average goodwill
(2,416)
(2,416)
(2,416)
(2,416)
(2,416)
Average intangible assets and other servicing rights
(15)
(17)
(16)
(17)
(19)
Average tangible common equity (b)
12,058
11,880
11,723
11,605
11,393
Total Bancorp shareholders' equity (U.S. GAAP)
15,885
15,626
15,404
15,469
14,826
Less: 
Preferred stock
(1,331)
(1,331)
(1,331)
(1,331)
(1,034)
Goodwill
(2,416)
(2,416)
(2,416)
(2,416)
(2,416)
Intangible assets and other servicing rights
(15)
(16)
(16)
(17)
(18)
Tangible common equity, including unrealized gains / losses (c)
12,123
11,863
11,641
11,705
11,358
Less: Accumulated other comprehensive income
(588)
(429)
(301)
(382)
(196)
Tangible common equity, excluding unrealized gains / losses (d)
11,535
11,434
11,340
11,323
11,162
Total assets (U.S. GAAP)
140,499
138,706
134,188
132,562
129,654
Less: 
Goodwill
(2,416)
(2,416)
(2,416)
(2,416)
(2,416)
Intangible assets and other servicing rights
(15)
(16)
(16)
(17)
(18)
Tangible assets, including unrealized gains / losses (e)
138,068
136,274
131,756
130,129
127,220
Less: Accumulated other comprehensive income / loss, before tax
(905)
(660)
(463)
(588)
(302)
Tangible assets, excluding unrealized gains / losses (f)
137,163
135,614
131,293
129,541
126,918
Common shares outstanding (g)
815
824
834
844
848
Ratios:
Return on average tangible common equity (a) / (b)
12.3%
12.1%
11.1%
14.4%
11.0%
Tangible common equity (excluding unrealized gains/losses) (d) /
(f)
8.41%
8.43%
8.64%
8.74%
8.79%
Tangible common equity (including unrealized gains/losses) (c) /
(e)
8.78%
8.71%
8.84%
9.00%
8.93%
Tangible book value per share (c) / (g)
$14.87
$14.40
$13.95
$13.86
$13.40
For the Three Months Ended

21
©
Fifth
Third
Bank
|
All
Rights
Reserved
Regulation G Non-GAAP reconciliation
Fifth Third Bancorp and Subsidiaries
Regulation G Non-GAAP Reconcilation
$ and shares in millions
(unaudited)
March
December
September
June
March
2015
2014
2014
2014
2014
Total Bancorp shareholders' equity (U.S. GAAP)
N/A
15,626
15,404
15,469
14,826
Goodwill and certain other intangibles
N/A
(2,476)
(2,484)
(2,484)
(2,490)
Unrealized gains
N/A
(429)
(301)
(382)
(196)
Qualifying trust preferred securities
N/A
60
60
60
60
Other
N/A
(17)
(18)
(19)
(18)
Tier I capital
N/A
12,764
12,661
12,644
12,182
Less:
Preferred stock
N/A
(1,331)
(1,331)
(1,331)
(1,034)
Qualifying trust preferred securities
N/A
(60)
(60)
(60)
(60)
Qualifying noncontrolling interest in consolidated subsidiaries
N/A
(1)
(1)
(1)
(1)
Tier I common equity (a)
N/A
11,372
11,269
11,252
11,087
Risk-weighted assets, determined in accordance with
Basel III
prescribed regulatory requirements (b)
120,248
117,878
116,917
117,117
116,622
Ratio:
Tier I common equity (a) / (b)
N/A
9.65%
9.64%
9.61%
9.51%
Basel III -
Estimated Tier 1 common equity ratio
March
December
September
June
March
2015
(3)
2014
2014
2014
2014
Tier 1 common equity (Basel I)
N/A
11,372
11,269
11,252
11,087
Add:
Adjustment related to capital components
N/A
84
99
96
99
Estimated Tier 1 common equity under final Basel III rules without AOCI (opt out)(1)
N/A
11,456
11,368
11,348
11,186
Estimated risk-weighted assets under final Basel III rules (2)
N/A
122,018
122,219
122,465
122,659
Estimated
Tier
1
common
equity
ratio
under
final
Basel
III
rules
(opt
out)
(1)
/
(2)
N/A
9.39%
9.38%
9.27%
9.12%
(1)
(2)
(3)
The Bancop became subject to the Basel III Final Rule, on January 1, 2015. This codified in the federal banking regulations the risk-based capital ratios the Bancorp is now subject to, as such these ratios are no longer considered Non-
GAAP measures.
Fifth Third will make a one-time permanent election to not include AOCI in common equity tier I capital in the March 31, 2015 FFIEC 031 and Y-9C filings.
Key differences under Basel III in the calculation of risk-weighted assets compared to Basel I include: (1) Risk weighting for commitments under 1 year; (2) Higher risk weighting for exposures to securitizations, past due loans, foreign banks
and certain commercial real estate; (3) Higher risk weighting for mortgage servicing rights and deferred tax assets that are under certain thresholds as a percent of Tier 1 capital; and (4) Derivatives are differentiated between exchange
clearing and over-the-counter and the 50% risk-weight cap is removed.
For the Three Months Ended
Basel I