10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2016

Commission File Number 001-33653

(Exact name of Registrant as specified in its charter)

Ohio	31-0854434
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

Fifth Third Center

Cincinnati, Ohio 45263

(Address of principal executive offices)

Registrant’s telephone number, including area code: (800) 972-3030

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  x	Accelerated filer	¨
Non-accelerated filer    ¨   (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ¨    No  x

There were 767,717,824 shares of the Registrant’s common stock, without par value, outstanding as of April 30, 2016.

FINANCIAL CONTENTS

Part I. Financial Information
Glossary of Abbreviations and Acronyms	2
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 2)
Selected Financial Data	3
Overview	4
Non-GAAP Financial Measures	8
Recent Accounting Standards	10
Critical Accounting Policies	10
Statements of Income Analysis	11
Balance Sheet Analysis	17
Business Segment Review	22
Risk Management—Overview	28
Credit Risk Management	29
Market Risk Management	42
Liquidity Risk Management	46
Operational Risk Management	47
Compliance Risk Management	48
Capital Management	48
Off-Balance Sheet Arrangements	51
Quantitative and Qualitative Disclosures about Market Risk (Item 3)	52
Controls and Procedures (Item 4)	52
Condensed Consolidated Financial Statements and Notes (Item 1)
Balance Sheets (unaudited)	53
Statements of Income (unaudited)	54
Statements of Comprehensive Income (unaudited)	55
Statements of Changes in Equity (unaudited)	56
Statements of Cash Flows (unaudited)	57
Notes to Condensed Consolidated Financial Statements (unaudited)	58
Part II. Other Information
Legal Proceedings (Item 1)	108
Risk Factors (Item 1A)	108
Unregistered Sales of Equity Securities and Use of Proceeds (Item 2)	108
Exhibits (Item 6)	108
Signatures	109
Certifications

FORWARD-LOOKING STATEMENTS

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 or real estate market conditions, either nationally or in the states in which Fifth Third, one or more acquired entities and/or the combined company do business, weaken or 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 (22) difficulties in separating the operations of any branches or other assets divested; (23) inability to achieve expected benefits from branch consolidations and planned sales within desired timeframes, if at all; (24) ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; and (25) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity.

1

Glossary of Abbreviations and Acronyms

Fifth Third Bancorp provides the following list of abbreviations and acronyms as a tool for the reader that are used in Management’s Discussion and Analysis of Financial Condition and Results of Operations, the Condensed Consolidated Financial Statements and the Notes to Condensed Consolidated Financial Statements.

  ALCO: Asset Liability Management Committee ALLL: Allowance for Loan and Lease Losses AOCI: Accumulated Other Comprehensive Income ARM: Adjustable Rate Mortgage ASF: Available Stable Funding ASU: Accounting Standards Update ATM: Automated Teller Machine BCBS: Basel Committee on Banking Supervision BHC: Bank Holding Company BOLI: Bank Owned Life Insurance BPO: Broker Price Opinion bps: Basis Points CCAR: Comprehensive Capital Analysis and Review CDC: Fifth Third Community Development Corporation CET1: Common Equity Tier 1 CFE: Collateralized Financing Entity C&I: Commercial and Industrial DCF: Discounted Cash Flow DFA: Dodd-Frank Wall Street Reform & Consumer Protection Act DIF: Deposit Insurance Fund DTCC: Depository Trust & Clearing Corporation ERISA: Employee Retirement Income Security Act ERM: Enterprise Risk Management ERMC: Enterprise Risk Management Committee EVE: Economic Value of Equity FASB: Financial Accounting Standards Board FDIC: Federal Deposit Insurance Corporation FFIEC: Federal Financial Institutions Examination Council FHA: Federal Housing Administration FHLB: Federal Home Loan Bank FHLMC: Federal Home Loan Mortgage Corporation FICO: Fair Isaac Corporation (credit rating) FNMA: Federal National Mortgage Association FRB: Federal Reserve Bank FTE: Fully Taxable Equivalent FTP: Funds Transfer Pricing FTS: Fifth Third Securities GDP: Gross Domestic Product GNMA: Government National Mortgage Association GSE: United States Government Sponsored Enterprise   HAMP: Home Affordable Modification Program HARP: Home Affordable Refinance Program HFS: Held for Sale HQLA: High Quality Liquid Assets IPO: Initial Public Offering IRC: Internal Revenue Code IRLC: Interest Rate Lock Commitment ISDA: International Swaps and Derivatives Association, Inc. LCR: Liquidity Coverage Ratio LIBOR: London Interbank Offered Rate LLC: Limited Liability Company LTV: Loan-to-Value MD&A: Management’s Discussion and Analysis of Financial Condition and Results of Operations MSA: Metro Statistical Area MSR: Mortgage Servicing Right N/A: Not Applicable NII: Net Interest Income NM: Not Meaningful NSFR: Net Stable Funding Ratio OAS: Option-Adjusted Spread OCI: Other Comprehensive Income (Loss) OREO: Other Real Estate Owned OTTI: Other-Than-Temporary Impairment PCA: Prompt Corrective Action PMI: Private Mortgage Insurance RSF: Required Stable Funding SARs: Stock Appreciation Rights SBA: Small Business Administration SEC: United States Securities and Exchange Commission TBA: To Be Announced TDR: Troubled Debt Restructuring TILA: Truth in Lending Act TruPS: Trust Preferred Securities U.S.: United States of America U.S. GAAP: United States Generally Accepted Accounting Principles VA: United States Department of Veteran Affairs VIE: Variable Interest Entity VRDN: Variable Rate Demand Note

2

Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 2)

The following is Management’s Discussion and Analysis of Financial Condition and Results of Operations of certain significant factors that have affected Fifth Third Bancorp’s (the “Bancorp” or “Fifth Third”) financial condition and results of operations during the periods included in the Condensed Consolidated Financial Statements, which are a part of this filing. Reference to the Bancorp incorporates the parent holding company and all consolidated subsidiaries.

TABLE 1: Selected Financial Data

		For the three months ended                       March 31,		%
($ in millions, except for per share data)		2016	2015	Change
Income Statement Data
Net interest income(a)	$	909	852		7
Noninterest income		637	630		1
Total revenue(a)		1,546	1,482		4
Provision for loan and lease losses		119	69		72
Noninterest expense		986	923		7
Net income attributable to Bancorp		327	361		(9)
Net income available to common shareholders		312	346		(10)
Common Share Data
Earnings per share - basic	$	0.40	0.42		(5)
Earnings per share - diluted		0.40	0.42		(5)
Cash dividends declared per common share		0.13	0.13		-
Book value per share		19.46	17.83		9
Market value per share		16.69	18.85		(11)
Financial Ratios
Return on average assets		0.93  %	1.06		(12)
Return on average common equity		8.3	9.7		(14)
Return on average tangible common equity(b)		9.9	11.6		(15)
Dividend payout ratio		32.5	31.0		5
Average total Bancorp shareholders’ equity as a percent of average assets		11.57	11.50		1
Tangible common equity as a percent of tangible assets(b)(h)		8.55	8.40		2
Net interest margin(a)		2.91	2.86		2
Efficiency(a)		63.8	62.3		2
Credit Quality
Net losses charged-off	$	96	91		5
Net losses charged-off as a percent of average portfolio loans and leases		0.42  %	0.41		2
ALLL as a percent of portfolio loans and leases		1.38	1.42		(3)
Allowance for credit losses as a percent of portfolio loans and leases(c)		1.54	1.57		(2)
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO		0.88	0.76		16
Average Balances
Loans and leases, including held for sale	$	94,078	91,659		3
Total securities and other short-term investments		31,573	29,038		9
Total assets		141,582	137,617		3
Transaction deposits(d)		94,680	94,172		1
Core deposits(e)		98,715	98,194		1
Wholesale funding(f)		21,936	18,871		16
Bancorp shareholders’ equity		16,376	15,820		4
Regulatory Capital Ratios		Basel III Transitional(g)
CET1 capital		9.81  %	9.52(i)		3
Tier I risk-based capital		10.91	10.62(i)		3
Total risk-based capital		14.66	14.01(i)		5
Tier I leverage		9.57	9.59(i)		-
		Basel III Fully Phased-In
CET1 capital(b)(g)		9.72	9.41(i)		3

(a) Amounts presented on an FTE basis. The FTE adjustment for the three months ended March 31, 2016 and 2015 was $6 and $5, respectively.

(b) These are non-GAAP measures. For further information, refer to the Non-GAAP Financial Measures section of MD&A.

(c) The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.

(d) Includes demand deposits, interest checking deposits, savings deposits, money market deposits and foreign office deposits.

(e) Includes transaction deposits and other time deposits.

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

(g) Under the U.S. banking agencies’ Basel III Final Rule, assets and credit equivalent amounts of off-balance sheet exposures are calculated according to the standardized approach for risk-weighted assets. The resulting values are added together in the Bancorp’s total risk-weighted assets.

(h) Excludes unrealized gains and losses.

(i) Ratios not restated for the adoption of the amended guidance of ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” Refer to Note 3 of the Notes to Condensed Consolidated Financial Statements for further information.

3

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

OVERVIEW

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. At March 31, 2016, the Bancorp had $142.4 billion in assets and operated 1,241 full-service banking centers, including 95 Bank Mart® locations, open seven days a week, inside select grocery stores, and 2,556 ATMs in eleven states throughout the Midwestern and Southeastern regions of the U.S. The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Investment Advisors. The Bancorp also has an approximate 18% interest in Vantiv Holding, LLC. The carrying value of the Bancorp’s investment in Vantiv Holding, LLC was $374 million at March 31, 2016.

This overview of MD&A highlights selected information in the financial results of the Bancorp and may not contain all of the information that is important to you. For a more complete understanding of trends, events, commitments, uncertainties, liquidity, capital resources and critical accounting policies and estimates, you should carefully read this entire document as well as the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015. Each of these items could have an impact on the Bancorp’s financial condition, results of operations and cash flows. In addition, refer to the Glossary of Abbreviations and Acronyms in this report for a list of terms included as a tool for the reader of this quarterly report on Form 10-Q. The abbreviations and acronyms identified therein are used throughout this MD&A, as well as the Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements.

Net interest income, net interest margin and the efficiency ratio are presented in MD&A on an FTE basis. The FTE basis adjusts for the tax-favored status of income from certain loans and securities held by the Bancorp that are not taxable for federal income tax purposes. The Bancorp believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison between taxable and non-taxable amounts.

The Bancorp’s revenues are dependent on both net interest income and noninterest income. For the three months ended March 31, 2016, net interest income on an FTE basis and noninterest income provided 59% and 41% of total revenue, respectively. The Bancorp derives the majority of its revenues within the U.S. from customers domiciled in the U.S. Revenue from foreign countries and external customers domiciled in foreign countries was immaterial to the Condensed Consolidated Financial Statements for the three months ended March 31, 2016. Changes in interest rates, credit quality, economic trends and the capital markets are primary factors that drive the performance of the Bancorp. As discussed later in the Risk Management section of MD&A, risk identification, measurement, monitoring, control and reporting are important to the management of risk and to the financial performance and capital strength of the Bancorp.

Net interest income is the difference between interest income earned on assets such as loans, leases and securities, and interest expense incurred on liabilities such as deposits, other short-term borrowings and long-term debt. Net interest income is affected by the general level of interest rates, the relative level of short-term and long-term interest rates, changes in interest rates and changes in the amount and composition of interest-earning assets and interest-bearing liabilities. Generally, the rates of interest the Bancorp earns on its assets and pays on its liabilities are established for a period of time. The change in market interest rates over time exposes the Bancorp to interest rate risk through potential adverse changes to net interest income and financial position. The Bancorp manages this risk by continually analyzing and adjusting the composition of its assets and liabilities based on their payment streams and interest rates, the timing of their maturities and their sensitivity to changes in market interest rates. Additionally, in the ordinary course of business, the Bancorp enters into certain derivative transactions as part of its overall strategy to manage its interest rate and prepayment risks. The Bancorp is also exposed to the risk of loss on its loan and lease portfolio, as a result of changing expected cash flows caused by borrower credit events, such as, loan defaults and inadequate collateral due to a weakened economy within the Bancorp’s footprint.

Noninterest income is derived from service charges on deposits, investment advisory revenue, corporate banking revenue, card and processing revenue, mortgage banking net revenue, securities gains, net and other noninterest income. Noninterest expense includes personnel costs, net occupancy expense, technology and communication costs, card and processing expense, equipment expense and other noninterest expense.

Branch Consolidation and Sales Plan

The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine that it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. On June 16, 2015, the Bancorp’s Board of Directors authorized management to pursue a plan to further develop its distribution strategy, including a plan to consolidate and/or sell certain operating branch locations and certain parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion (the “Branch Consolidation and Sales Plan”). The Bancorp expects to receive approximately $60 million in annual savings from operating expenses upon completion of the Branch Consolidation and Sales Plan. For more information on the Branch Consolidation and Sales Plan, refer to Note 7 of the Notes to Condensed Consolidated Financial Statements.

On September 3, 2015, the Bancorp announced the decision to enter into an agreement to sell branch banking locations, retail accounts, certain private banking deposits and related loan relationships in the Pittsburgh MSA to First National Bank of Pennsylvania. On September 30, 2015, the Bancorp announced the decision to enter into an agreement to sell its retail operations, including retail accounts, certain private banking deposits and related loan relationships in the St. Louis MSA to Great Southern Bank. Both transactions are part of the Branch Consolidation and Sales Plan.

On January 29, 2016, the Bancorp closed the previously announced sale in the St. Louis MSA to Great Southern Bank. The sale included loans, premises and equipment and deposits with aggregate carrying amounts of $158 million, $18 million and $228 million, respectively.

4

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The Bancorp recorded a gain on the sale of $8 million which was recorded in other noninterest income in the Condensed Consolidated Statements of Income.

Pursuant to the Branch Consolidation and Sales Plan, the Bancorp intended to consolidate and/or sell 60 operating branch locations and to sell an additional 23 parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion as of March 31, 2016.

The sale of the Pittsburgh MSA retail operations to First National Bank of Pennsylvania closed on April 22, 2016. For further information on this transaction, refer to Note 22 of the Notes to Condensed Consolidated Financial Statements.

Accelerated Share Repurchase Transactions

During the three months ended March 31, 2016, the Bancorp entered into or settled accelerated share repurchase transactions. As part of these transactions, the Bancorp entered into forward contracts in which the final number of shares delivered at settlement was based generally on a discount to the average daily volume weighted-average price of the Bancorp’s common stock during the term of the repurchase agreements. For more information on the accelerated share repurchase program, refer to Note 14 of the Notes to Condensed Consolidated Financial Statements. For a summary of the Bancorp’s accelerated share repurchase transactions that were entered into or settled during the three months ended March 31, 2016, refer to Table 2.

TABLE 2: Summary of Accelerated Share Repurchase Transactions

Repurchase Date	Amount ($ in millions)		Shares Repurchased on Repurchase Date		Shares Received from Forward Contract Settlement		Total Shares Repurchased		Settlement Date
December 14, 2015	$	215		9,248,482		1,782,477		11,030,959		January 14, 2016
March 4, 2016		240		12,623,762		1,868,379		14,492,141		April 11, 2016

Senior and Subordinated Notes Offerings

On March 15, 2016, the Bank issued and sold $1.5 billion in aggregate principal amount of unsecured bank notes. The bank notes consisted of $750 million of 2.30% senior fixed-rate notes, with a maturity of three years, due on March 15, 2019; and $750 million of 3.85% subordinated fixed-rate notes, with a maturity of ten years, due on March 15, 2026. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date.

Legislative and Regulatory Developments

During the first quarter of 2016, the FDIC issued a final rule implementing a 4.5 bps surcharge on the quarterly FDIC insurance assessments of insured depository institutions with total consolidated assets of $10 billion or more. The surcharge will take effect at the same time the FDIC is required to lower the regular FDIC insurance assessments by approximately 2 bps under a rule adopted by the FDIC in 2011 which is triggered by the DIF reserve ratio reaching 1.15% of insured deposits. The surcharge will take effect on July 1, 2016 if the DIF reserve ratio reaches 1.15% before July 1, 2016; otherwise it will begin the first day of the calendar quarter after the reserve ratio reaches 1.15%. Surcharges will continue through the quarter that the reserve ratio first reaches or exceeds 1.35% of insured deposits, but not later than December 31, 2018. If the reserve ratio does not reach 1.35% by December 31, 2018, the FDIC will impose a shortfall assessment on March 31, 2019, on insured depository institutions with total consolidated assets of $10 billion or more. The FDIC has announced they expect that surcharges will commence in the second half of 2016 and that they should be sufficient to raise the DIF reserve ratio to 1.35% in approximately eight quarters. Fifth Third estimates the announced changes to the FDIC assessments will result in a net increase in its FDIC insurance expense of approximately $24 million on an annual basis.

The FRB launched the 2016 stress testing program and CCAR on January 28, 2016, with submissions of stress test results and capital plans to the FRB due on April 5, 2016, which the Bancorp submitted as required. The FRB expects to release summary results of the 2016 stress testing program and CCAR by June 30, 2016. The results will include supervisory projections of capital ratios, losses and revenue under the supervisory adverse and supervisory severely adverse scenarios. The FRB will also issue an objection or non-objection to each participating institution’s capital plan submitted under CCAR. The FRB’s summary results will also include an overview of methodologies used for supervisory tests. Additionally, as a CCAR institution, the Bancorp will be required to disclose the results of its company-run stress test as required by the DFA, within 15 days of the date the FRB discloses the results of its DFA supervisory tests.

Fifth Third offers qualified deposit customers a deposit advance product if they choose to avail themselves of this product to meet short-term, small-dollar financial needs. Fifth Third’s deposit advance product is designed to fully comply with the applicable federal and state laws and use of this product is subject to strict eligibility requirements and advance restriction guidelines to limit dependency on this product as a borrowing source. The Bancorp’s deposit advance balances are included in other consumer loans and leases in the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A and in Table 6 in the Statements of Income Analysis section of MD&A. On January 17, 2014, given developments in industry practice, Fifth Third announced that it would no longer enroll new customers in its deposit advance product and expected to phase out the service to existing customers by the end of 2014. To avoid a disruption to its existing customers during the extension period while the banking industry awaits further regulatory guidance on the deposit advance product, on November 3, 2014, Fifth Third announced changes to its current deposit advance product for existing customers beginning January 1, 2015, including a lower transaction fee, an extended repayment period and a reduced maximum advance period. The Bancorp is continuing to offer the service to existing deposit advance customers until further regulatory guidance is finalized.

On December 10, 2013, the U.S. banking agencies finalized section 619 of the DFA, known as the Volcker Rule, which became effective April 1, 2014. Though the Final Rule was effective April 1, 2014, the FRB granted the industry an extension of time until July 21, 2015 to conform certain of its activities related to proprietary trading to comply with the Volcker Rule.

5

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

In addition, the FRB has granted the industry an extension of time until July 21, 2016, and announced its intention to grant a one year extension of the conformance period until July 21, 2017, to conform certain ownership interests in, sponsorship activities of and relationships with private equity or hedge funds as well as holding certain collateralized loan obligations that were in place as of December 31, 2013. It is possible that additional conformance period extensions could be granted either to the entire industry, or, upon request, to requesting banking organizations on a case-by-case basis. The Final Rule prohibits banks and BHCs from engaging in short-term proprietary trading of certain securities, derivatives, commodity futures and options on these instruments for their own account. The Volcker Rule also restricts banks and their affiliated entities from owning, sponsoring or having certain relationships with private equity and hedge funds, as well as holding certain collateralized loan obligations that are deemed to contain ownership interests. Exemptions are provided for certain activities such as underwriting, market making, hedging, trading in certain government obligations and organizing and offering a hedge fund or private equity fund. Fifth Third does not sponsor any private equity or hedge funds that, under the Final Rule, it is prohibited from sponsoring. At March 31, 2016, the Bancorp did not hold collateralized loan obligations. At March 31, 2016, the Bancorp had approximately $183 million in interests and approximately $34 million in binding commitments to invest in private equity funds that are affected by the Volcker Rule. It is expected that over time the Bancorp may need to dispose of these investments, however no formal plan to sell has been approved as of March 31, 2016. As a result of the announced conformance period extension, the Bancorp believes it is likely that these investments will be reduced over time in the ordinary course of events before compliance is required.

On October 10, 2014, the U.S. Banking Agencies published final rules implementing a quantitative liquidity requirement consistent with the LCR standard established by the BCBS for large internationally active banking organizations, generally those with $250 billion or more in total consolidated assets or $10 billion or more in on-balance sheet foreign exposure. In addition, a modified LCR requirement was implemented for BHCs with $50 billion or more in total consolidated assets but that are not internationally active, such as Fifth Third. The Modified LCR became effective January 1, 2016 and requires BHCs to calculate its LCR on a monthly basis. Refer to the Liquidity Risk Management subsection of the Risk Management section of MD&A for further discussion on these ratios.

Earnings Summary

The Bancorp’s net income available to common shareholders for the first quarter of 2016 was $312 million, or $0.40 per diluted share, which was net of $15 million in preferred stock dividends. The Bancorp’s net income available to common shareholders for the first quarter of 2015 was $346 million, or $0.42 per diluted share, which was net of $15 million in preferred stock dividends. Pre-provision net revenue was $554 million for both the three months ended March 31, 2016 and 2015. Pre-provision net revenue is a non-GAAP measure. For further information, refer to the Non-GAAP Financial Measures section in MD&A.

Net interest income on an FTE basis was $909 million and $852 million for the three months ended March 31, 2016 and 2015, respectively. Net interest income was positively impacted by increases in average taxable securities and average loans and leases of $6.5 billion and $2.4 billion, respectively. Net interest margin on an FTE basis was 2.91% and 2.86% for the three months ended March 31, 2016 and 2015, respectively.

Noninterest income increased $7 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to an increase in corporate banking revenue partially offset by a decrease in other noninterest income. Corporate banking revenue increased $39 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily driven by the impact of a $30 million impairment charge related to operating lease equipment that was recognized in the first quarter of 2015 as well as an increase in syndication fees partially offset by decreases in foreign exchange fees and letter of credit fees. Other noninterest income decreased $27 million in the first quarter of 2016 compared to the first quarter of 2015. The decrease included a positive valuation adjustment on the stock warrant associated with Vantiv Holding, LLC of $47 million for the three months ended March 31, 2016 compared to a positive valuation adjustment of $70 million for the three months ended March 31, 2015. Additionally, gain on loan sales decreased $42 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to a $37 million gain on the sale of residential mortgage loans classified as TDRs during the three months ended March 31, 2015. The Bancorp recognized a $1 million positive valuation adjustment related to the Visa total return swap for the three months ended March 31, 2016 compared to a negative valuation adjustment of $17 million for the three months ended March 31, 2015. The three months ended March 31, 2016 also included the impact of a $8 million gain on the sale of certain branches in the St. Louis MSA as part of the previously announced Branch Consolidation and Sales Plan.

Noninterest expense increased $63 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to increases in personnel costs and other noninterest expense. Personnel costs increased $35 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily driven by a $14 million increase in retirement costs related to the voluntary early retirement program as well as increases in base and variable compensation. Other noninterest expense increased $31 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to increases in FDIC insurance and other taxes, the provision for the reserve for unfunded commitments and losses and adjustments partially offset by a decrease in donations expense.

For more information on net interest income, noninterest income and noninterest expense, refer to the Statements of Income Analysis section of MD&A.

6

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Credit Summary

The provision for loan and lease losses was $119 million and $69 million for the three months ended March 31, 2016 and 2015, respectively. Net losses charged-off as a percent of average portfolio loans and leases were 0.42% during the first quarter of 2016 compared to 0.41% during the first quarter of 2015. At March 31, 2016, nonperforming portfolio assets as a percent of portfolio loans and leases and OREO increased to 0.88% compared to 0.70% at December 31, 2015. For further discussion on credit quality, refer to the Credit Risk Management subsection of the Risk Management section of MD&A.

Capital Summary

The Bancorp’s capital ratios exceed the “well-capitalized” guidelines as defined by the PCA requirements of the U.S. banking agencies. As of March 31, 2016, as calculated under the Basel III transition provisions, the CET1 capital ratio was 9.81%, the Tier I risk-based capital ratio was 10.91%, the Total risk-based capital ratio was 14.66% and the Tier I leverage ratio was 9.57%.

7

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

NON-GAAP FINANCIAL MEASURES

The following are non-GAAP measures which are important to the reader of the Condensed Consolidated Financial Statements but should be supplemental to primary U.S. GAAP measures.

Pre-provision net revenue is net interest income plus noninterest income minus noninterest expense. The Bancorp believes this measure is important because it provides a ready view of the Bancorp’s pre-tax earnings before the impact of provision expense.

The following table reconciles the non-GAAP financial measure of pre-provision net revenue to U.S. GAAP for the three months ended:

TABLE 3: Non-GAAP Financial Measures - Pre-Provision Net Revenue

($ in millions)	March 31, 2016		March 31,     2015
Net interest income (U.S. GAAP)	$	903		847
Add: Noninterest income		637		630
Less: Noninterest expense		986		923
Pre-provision net revenue	$	554		554

The Bancorp believes return on average tangible common equity is an important measure for comparative purposes with other financial institutions, but is not defined under U.S. GAAP, and therefore is considered a non-GAAP financial measure.

The following table reconciles the non-GAAP financial measure of return on average tangible common equity to U.S. GAAP for the three months ended:

TABLE 4: Non-GAAP Financial Measures - Return on Average Tangible Common Equity

($ in millions)	March 31, 2016			March 31,        2015
Net income available to common shareholders (U.S. GAAP)	$	312			346
Add: Intangible amortization, net of tax		-			-
Tangible net income available to common shareholders	$	312			346
Tangible net income available to common shareholders (annualized) (1)		1,255			1,403
Average Bancorp’s shareholders’ equity (U.S. GAAP)	$	16,376			15,820
Less: Average preferred stock		(1,331	)		(1,331)
Average goodwill		(2,416	)		(2,416)
Average intangible assets and other servicing rights		(12	)		(15)
Average tangible common equity (2)	$	12,617			12,058
Return on average tangible common equity (1) / (2)		9.9	%		11.6

The Bancorp considers various measures when evaluating capital utilization and adequacy, including the tangible equity ratio and tangible common equity ratio, in addition to capital ratios defined by the U.S. banking agencies. These calculations are intended to complement the capital ratios defined by the U.S. banking agencies for both absolute and comparative purposes. Because U.S. GAAP does not include capital ratio measures, the Bancorp believes there are no comparable U.S. GAAP financial measures to these ratios. These ratios are not formally defined by U.S. GAAP or codified in the federal banking regulations and, therefore, are considered to be non-GAAP financial measures. Additionally, the Bancorp became subject to the Basel III Final Rule on January 1, 2015 which defined various regulatory capital ratios including the CET1 ratio. The CET1 capital ratio has transition provisions that will be phased out over time. The Bancorp is presenting the CET1 capital ratio on a fully phased-in basis for comparative purposes with other organizations. The Bancorp considers the fully phased-in CET1 ratio a non-GAAP measure since it is not the CET1 ratio in effect for the periods presented. Since analysts and the U.S. banking agencies may assess the Bancorp’s capital adequacy using these ratios, the Bancorp believes they are useful to provide investors the ability to assess its capital adequacy on the same basis. The Bancorp encourages readers to consider its Condensed Consolidated Financial Statements in their entirety and not to rely on any single financial measure.

8

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The following table reconciles non-GAAP capital ratios to U.S. GAAP:

TABLE 5: Non-GAAP Financial Measures - Capital Ratios

As of ($ in millions)	March 31, 2016			December 31, 2015
Total Bancorp shareholders’ equity (U.S. GAAP)	$	16,323			15,839
Less:  Preferred stock		(1,331	)		(1,331)
Goodwill		(2,416	)		(2,416)
Intangible assets and other servicing rights		(12	)		(13)
Tangible common equity, including unrealized gains / losses		12,564			12,079
Less:  AOCI		(684	)		(197)
Tangible common equity, excluding unrealized gains / losses (1)		11,880			11,882
Add:  Preferred stock		1,331			1,331
Tangible equity (2)	$	13,211			13,213
Total assets (U.S. GAAP)	$	142,430			141,048
Less:  Goodwill		(2,416	)		(2,416)
Intangible assets and other servicing rights		(12	)		(13)
AOCI, before tax		(1,052	)		(303)
Tangible assets, excluding unrealized gains / losses (3)	$	138,950			138,316
Ratios:
Tangible equity as a percentage of tangible assets (2) / (3)(d)		9.51	%		9.55
Tangible common equity as a percentage of tangible assets (1) / (3)(d)		8.55			8.59
Basel III Final Rule - Transition to fully phased-in
CET1 capital (transitional)	$	11,914			11,917
Less: Adjustments to CET1 capital from transitional to fully phased-in(a)		(5	)		(8)
CET1 capital (fully phased-in) (4)		11,909			11,909
Risk-weighted assets (transitional)(b)		121,432			121,290	(e)
Add: Adjustments to risk-weighted assets from transitional to fully phased-in(c)		1,027			1,178
Risk-weighted assets (fully phased-in) (5)	$	122,459			122,468	(e)
CET1 capital ratio under Basel III Final Rule (fully phased-in) (4) / (5)		9.72	%		9.72	(e)

(a) Primarily relates to disallowed intangible assets (other than goodwill and MSRs, net of associated deferred tax liabilities).

(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, along with the measure for market risk, resulting in the Bancorp’s total risk-weighted assets.

(c) Primarily relates to higher risk weighting for MSRs.

(d) Excludes unrealized gains and losses.

(e) Balances not restated for the adoption of the amended guidance of ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” Refer to Note 3 of the Notes to Condensed Consolidated Financial Statements for further information.

9

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

RECENT ACCOUNTING STANDARDS

Note 3 of the Notes to Condensed Consolidated Financial Statements provides a discussion of the significant new accounting standards applicable to the Bancorp and the expected impact of significant accounting standards issued, but not yet required to be adopted.

CRITICAL ACCOUNTING POLICIES

The Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP. Certain accounting policies require management to exercise judgment in determining methodologies, economic assumptions and estimates that may materially affect the Bancorp’s financial position, results of operations and cash flows. The Bancorp’s critical accounting policies include the accounting for the ALLL, reserve for unfunded commitments, income taxes, valuation of servicing rights, fair value measurements, goodwill and legal contingencies. These accounting policies are discussed in detail in the Critical Accounting Policies section of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015. No material changes were made to the valuation techniques or models during the three months ended March 31, 2016.

10

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

STATEMENTS OF INCOME ANALYSIS

Net Interest Income

Net interest income is the interest earned on loans and leases (including yield-related fees), securities and other short-term investments less the interest paid for core deposits (includes transaction deposits and other time deposits) and wholesale funding (includes certificates $100,000 and over, federal funds purchased, other short-term borrowings and long-term debt). The net interest margin is calculated by dividing net interest income by average interest-earning assets. Net interest rate spread is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities. Net interest margin is typically greater than net interest rate spread due to the interest income earned on those assets that are funded by noninterest-bearing liabilities, or free funding, such as demand deposits or shareholders’ equity.

Table 6 presents the components of net interest income, net interest margin and net interest rate spread for the three months ended March 31, 2016 and 2015, as well as the relative impact of changes in the balance sheet and changes in interest rates on net interest income. Nonaccrual loans and leases and loans held for sale have been included in the average loan and lease balances. Average outstanding securities balances are based on amortized cost with any unrealized gains or losses on available-for-sale securities included in other assets.

Net interest income on an FTE basis was $909 million and $852 million for the first quarters of 2016 and 2015, respectively. Net interest income was positively impacted by increases in average taxable securities and average loans and leases of $6.5 billion and $2.4 billion, respectively, as well as the decision of the Federal Open Market Committee in December 2015 to raise the target range of the federal funds rate 25 bps. The net interest rate spread increased to 2.70% in the first quarter of 2016 from 2.68% in the same period in 2015 due to a 6 bps increase in yields on average interest-earnings assets partially offset by a 4 bps increase in the rates paid on average interest-bearing liabilities for the three months ended March 31, 2016 compared to the three months ended March 31, 2015.

Net interest margin on an FTE basis was 2.91% for the three months ended March 31, 2016 compared to 2.86% for the three months ended March 31, 2015. The increase from March 31, 2015 was driven primarily by the previously mentioned increase in the net interest rate spread coupled with increases in average free funding balances partially offset by a $5.0 billion increase in average interest-earning assets. The increase in average free funding balances was driven by increases in average demand deposits and average shareholders’ equity of $1.4 billion and $548 million, respectively, for the three months ended March 31, 2016 compared to the three months ended March 31, 2015.

Interest income on an FTE basis from loans and leases increased $27 million compared to the first quarter of 2015 primarily due to an increase of $2.4 billion in average loans and leases driven primarily by increases in average commercial and industrial loans, average commercial construction loans and average residential mortgage loans. Yields on average loans and leases were flat for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 as the decrease in yields on average consumer loans and leases, primarily due to decreases in yields on average residential mortgage loans and average other consumer loans and leases, was offset by an increase in yields on average commercial loans and leases, driven primarily by an increase in yields on average commercial and industrial loans. For more information on the Bancorp’s loan and lease portfolio, refer to the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A. Interest income from investment securities and other short-term investments increased $42 million compared to the three months ended March 31, 2015 primarily as a result of the aforementioned increase in average taxable securities.

Interest expense on core deposits decreased $2 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to a decline in the cost of average interest-bearing core deposits to 25 bps for the three months ended March 31, 2016 from 26 bps for the three months ended March 31, 2015. The decrease was primarily due to a decrease in the cost of average money market deposits partially offset by an increase in the cost of average interest checking deposits. Refer to the Deposits subsection of the Balance Sheet Analysis section of MD&A for additional information on the Bancorp’s deposits.

Interest expense on average wholesale funding increased $14 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to increases of 28 bps and 19 bps in the rates paid on average other short-term borrowings and average long-term debt, respectively, coupled with an increase in average long-term debt of $535 million. Refer to the Borrowings subsection of the Balance Sheet Analysis section of MD&A for additional information on the Bancorp’s borrowings. During the three months ended March 31, 2016 and 2015, respectively, average wholesale funding represented 26% and 23% of average interest-bearing liabilities. For more information on the Bancorp’s interest rate risk management, including estimated earnings sensitivity to changes in market interest rates, see the Market Risk Management subsection of the Risk Management section of MD&A.

11

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

TABLE 6: Condensed Average Balance Sheets and Analysis of Net Interest Income on an FTE Basis

For the three months ended	March 31, 2016								March 31, 2015								Attribution of Change in Net Interest Income(a)
($ in millions)	Average Balance			Revenue/ Cost		Average Yield/ Rate			Average Balance			Revenue/ Cost		Average Yield/ Rate			Volume		Yield/Rate		Total
Assets
Interest-earning assets:
Loans and leases:(b)
Commercial and industrial loans	$	43,127			347		3.23	%	$	41,462			323		3.16	%	$	16		8		24
Commercial mortgage loans		6,908			55		3.27			7,248			58		3.27			(3)		-		(3	)
Commercial construction loans		3,297			28		3.38			2,198			18		3.23			9		1		10
Commercial leases		3,875			27		2.77			3,716			27		2.90			1		(1)		-
Total commercial loans and leases		57,207			457		3.22			54,624			426		3.16			23		8		31
Residential mortgage loans		14,405			130		3.63			13,515			128		3.83			9		(7)		2
Home equity		8,241			78		3.80			8,802			80		3.66			(5)		3		(2	)
Automobile loans		11,285			75		2.65			11,933			79		2.68			(3)		(1)		(4	)
Credit card		2,277			60		10.64			2,321			59		10.22			(1)		2		1
Other consumer loans and leases		663			10		6.27			464			11		10.79			4		(5)		(1	)
Total consumer loans and leases		36,871			353		3.85			37,035			357		3.91			4		(8)		(4	)
Total loans and leases	$	94,078			810		3.46	%	$	91,659			783		3.46	%	$	27		-		27
Securities:
Taxable		29,619			231		3.14			23,102			187		3.30			53		(9)		44
Exempt from income taxes(b)		78			1		4.32			59			1		5.24			-		-		-
Other short-term investments		1,876			2		0.42			5,877			4		0.25			(4)		2		(2	)
Total interest-earning assets	$	125,651			1,044		3.34	%	$	120,697			975		3.28	%	$	76		(7)		69
Cash and due from banks		2,335								2,830
Other assets		14,869								15,412
Allowance for loan and lease losses		(1,273	)							(1,322	)
Total assets	$	141,582							$	137,617
Liabilities and Equity
Interest-bearing liabilities:
Interest checking deposits	$	25,740			15		0.23	%	$	26,885			13		0.20	%	$	-		2		2
Savings deposits		14,601			2		0.04			15,174			3		0.07			-		(1)		(1	)
Money market deposits		18,655			11		0.25			17,492			14		0.32			1		(4)		(3	)
Foreign office deposits		483			-		0.15			861			-		0.20			-		-		-
Other time deposits		4,035			12		1.22			4,022			12		1.17			(1)		1		-
Total interest-bearing core deposits		63,514			40		0.25			64,434			42		0.26			-		(2)		(2	)
Certificates $100,000 and over		2,815			9		1.28			2,683			8		1.16			-		1		1
Federal funds purchased		608			1		0.36			172			-		0.09			1		-		1
Other short-term borrowings		3,564			3		0.39			1,602			-		0.11			1		2		3
Long-term debt		14,949			82		2.22			14,414			73		2.03			2		7		9
Total interest-bearing liabilities	$	85,450			135		0.64	%	$	83,305			123		0.60	%	$	4		8		12
Demand deposits		35,201								33,760
Other liabilities		4,524								4,693
Total liabilities	$	125,175							$	121,758
Total equity	$	16,407							$	15,859
Total liabilities and equity	$	141,582							$	137,617
Net interest income (FTE)				$	909							$	852				$	72		(15)		57
Net interest margin (FTE)							2.91	%							2.86	%
Net interest rate spread (FTE)							2.70								2.68
Interest-bearing liabilities to interest-earning assets							68.01								69.02

(a) Changes in interest not solely due to volume or yield/rate are allocated in proportion to the absolute dollar amount of change in volume and yield/rate.

(b) The FTE adjustments included in the above table were $6 and $5 for the three months ended March 31, 2016 and 2015, respectively.

Provision for Loan and Lease Losses

The Bancorp provides as an expense an amount for probable loan and lease losses within the loan and lease portfolio that is based on factors previously discussed in the Critical Accounting Policies section of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015. The provision is recorded to bring the ALLL to a level deemed appropriate by the Bancorp to cover losses inherent in the portfolio. Actual credit losses on loans and leases are charged against the ALLL. The amount of loans and leases actually removed from the Condensed Consolidated Balance Sheets are referred to as charge-offs. Net charge-offs include current period charge-offs less recoveries on previously charged-off loans and leases.

The provision for loan and lease losses was $119 million and $69 million for the three months ended March 31, 2016 and 2015, respectively. The increase in provision expense for the three months ended March 31, 2016 compared to the same period in the prior year was primarily due to prolonged softness in commodity prices, slow global economic growth and appreciation in the US dollar. The ALLL increased $23 million from December 31, 2015 to $1.3 billion at March 31, 2016. At March 31, 2016, the ALLL as a percent of portfolio loans and leases increased to 1.38%, compared to 1.37% at December 31, 2015.

12

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Refer to the Credit Risk Management subsection of the Risk Management section of MD&A as well as Note 6 of the Notes to Condensed Consolidated Financial Statements for more detailed information on the provision for loan and lease losses, including an analysis of loan portfolio composition, nonperforming assets, net charge-offs, and other factors considered by the Bancorp in assessing the credit quality of the loan and lease portfolio and the ALLL.

Noninterest Income

Noninterest income increased $7 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015.

The components of noninterest income are as follows:

TABLE 7: Components of Noninterest Income

		For the three months ended March 31,
($ in millions)		2016		2015		% Change
Service charges on deposits	$		137		135		1
Investment advisory revenue			102		108		(6)
Corporate banking revenue			102		63		62
Card and processing revenue			79		71		11
Mortgage banking net revenue			78		86		(9)
Other noninterest income			136		163		(17)
Securities gains, net			3		4		(25)
Total noninterest income	$		637		630		1

Service charges on deposits

Service charges on deposits increased $2 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to a $3 million increase in commercial deposit fees driven by new customer acquisition. This increase was partially offset by a $1 million decrease in consumer deposit fees primarily driven by a decrease in consumer checking fees.

Investment advisory revenue

Investment advisory revenue decreased $6 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to a $4 million decrease in transactional securities and brokerage fees driven by lower sales and trading volume and a $2 million decrease in private client service fees due to a decrease in personal asset management fees. The Bancorp had approximately $303 billion and $308 billion in total assets under care as of March 31, 2016 and 2015, respectively, and managed $26 billion and $27 billion in assets, respectively, for individuals, corporations and not-for-profit organizations as of March 31, 2016 and 2015.

Corporate banking revenue

Corporate banking revenue increased $39 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015. The increase from the prior year was primarily the result of increases in lease remarketing fees and syndication fees partially offset by decreases in foreign exchange fees and letter of credit fees. The increase in lease remarketing fees included the impact of a $30 million impairment charge related to operating lease equipment that was recognized during the first quarter of 2015. Syndication fees increased $8 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 as a result of increased activity in the market.

Card and processing revenue

Card and processing revenue increased $8 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily driven by an increase in the number of actively used cards and an increase in customer spend volume.

Mortgage banking net revenue

Mortgage banking net revenue decreased $8 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015.

The components of mortgage banking net revenue are as follows:

TABLE 8: Components of Mortgage Banking Net Revenue

		For the three months ended     March 31,
($ in millions)		2016			2015
Origination fees and gains on loan sales	$		42			44
Net mortgage servicing revenue:
Gross mortgage servicing fees			52			59
MSR amortization			(27	)		(34)
Net valuation adjustments on MSRs and free-standing derivatives entered into to economically hedge MSRs			11			17
Net mortgage servicing revenue			36			42
Mortgage banking net revenue	$		78			86

Origination fees and gains on loan sales decreased $2 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to a $44 million or 2% decrease in residential mortgage loan originations.

13

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Net mortgage servicing revenue is comprised of gross servicing fees and related MSR amortization as well as valuation adjustments on MSRs and mark-to-market adjustments on both settled and outstanding free-standing derivative financial instruments used to economically hedge the MSR portfolio. Net mortgage servicing revenue decreased $6 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to decreases in gross mortgage servicing fees and net valuation adjustments of $7 million and $6 million, respectively, partially offset by a decrease in servicing rights amortization of $7 million.

The following table presents the components of net valuation adjustments on the MSR portfolio and the impact of the non-qualifying hedging strategy:

TABLE 9: Components of Net Valuation Adjustments on MSRs

		For the three months ended       March 31,
($ in millions)		2016			2015
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio	$		96			65
Provision for MSR impairment			(85	)		(48)
Net valuation adjustments on MSR and free-standing derivatives entered into to economically hedge MSRs	$		11			17

Mortgage rates decreased during both the three months ended March 31, 2016 and 2015 which caused modeled prepayment speeds to increase which led to temporary impairment on servicing rights during both the three months ended March 31, 2016 and 2015.

Servicing rights are deemed impaired when a borrower’s loan rate is distinctly higher than prevailing rates. Impairment on servicing rights is reversed when the prevailing rates return to a level commensurate with the borrower’s loan rate. Further detail on the valuation of MSRs can be found in Note 10 of the Notes to Condensed Consolidated Financial Statements. The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the valuation on the MSR portfolio. Refer to Note 11 of the Notes to Condensed Consolidated Financial Statements for more information on the free-standing derivatives used to economically hedge the MSR portfolio.

The Bancorp’s total residential mortgage loans serviced as of March 31, 2016 and 2015 were $72.3 billion and $77.4 billion, respectively, with $57.8 billion and $64.2 billion, respectively, of residential mortgage loans serviced for others.

Other noninterest income

The following table presents the components of other noninterest income:

TABLE 10: Components of Other Noninterest Income

		For the three months ended     March 31,
($ in millions)		2016			2015
Valuation adjustments on the warrant associated with Vantiv Holding, LLC	$		47			70
Operating lease income			24			22
BOLI income			13			12
Equity method income from interest in Vantiv Holding, LLC			13			9
Cardholder fees			11			11
Gain on sale of branches			8			-
Consumer loan and lease fees			5			6
Banking center income			5			5
Private equity investment income			4			4
Insurance income			3			4
Net gains (losses) on disposition and impairment of bank premises and equipment			1			(3)
Gain (loss) on swap associated with the sale of Visa, Inc. class B shares			1			(17)
(Loss) gain on loan sales			(2	)		40
Other, net			3			-
Total other noninterest income	$		136			163

Other noninterest income decreased $27 million in the first quarter of 2016 compared to the first quarter of 2015. The decrease included a positive valuation adjustment on the stock warrant associated with Vantiv Holding, LLC of $47 million for the three months ended March 31, 2016 compared to a positive valuation adjustment of $70 million for the three months ended March 31, 2015. The fair value of the stock warrant is calculated using the Black-Scholes option-pricing model, which utilizes several key inputs (Vantiv, Inc. stock price, strike price of the warrant and several unobservable inputs). The positive valuation adjustments for the three months ended March 31, 2016 and 2015 were primarily due to increases of 14% and 11%, respectively, in Vantiv, Inc.’s share price from December 31, 2015 to March 31, 2016 and from December 31, 2014 to March 31, 2015. The decrease in the positive valuation adjustment in the first quarter of 2016 compared to the prior year period included the impact of the sale and exercise of a portion of the warrant during the fourth quarter of 2015. Additionally, gain on loan sales decreased $42 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to a $37 million gain on the sale of residential mortgage loans classified as TDRs during the three months ended March 31, 2015.

14

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The Bancorp recognized a $1 million positive valuation adjustment related to the Visa total return swap for the three months ended March 31, 2016 compared to a negative valuation adjustment of $17 million for the three months ended March 31, 2015. For additional information on the valuation of the warrant associated with the sale of Vantiv Holding, LLC and the valuation of the swap associated with the sale of Visa, Inc. Class B shares, refer to Note 20 of the Notes to Condensed Consolidated Financial Statements. The three months ended March 31, 2016 also included the impact of a $8 million gain on the sale of its retail operations, including retail accounts, certain private banking deposits and related loan relationships in the St. Louis MSA to Great Southern Bank as part of the previously announced Branch Consolidation and Sales Plan. Equity method earnings from the Bancorp’s interest in Vantiv Holding, LLC increased $4 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to an increase in net income of Vantiv Holding, LLC. This increase was partially offset by a reduction in the Bancorp’s interest in Vantiv Holding, LLC from 23% in the first quarter of 2015 to 18% in the first quarter of 2016.

Noninterest Expense

Noninterest expense increased $63 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to increases in personnel costs (salaries, wages and incentives plus employee benefits) and other noninterest expense.

The major components of noninterest expense are as follows:

TABLE 11: Components of Noninterest Expense

		For the three months ended   March 31,
($ in millions)		2016			2015		% Change
Salaries, wages and incentives	$		403			369		9
Employee benefits			100			99		1
Net occupancy expense			77			79		(3)
Technology and communications			56			55		2
Card and processing expense			35			36		(3)
Equipment expense			30			31		(3)
Other noninterest expense			285			254		12
Total noninterest expense	$		986			923		7
Efficiency ratio on an FTE basis			63.8	%		62.3

Personnel costs increased $35 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily driven by a $14 million increase in retirement costs related to the voluntary early retirement program as well as increases in base and variable compensation. Full-time equivalent employees totaled 18,200 at March 31, 2016 compared to 18,471 at March 31, 2015.

The following table presents the components of other noninterest expense:

TABLE 12: Components of Other Noninterest Expense

		For the three months ended  March 31,
($ in millions)		2016		2015
Impairment on affordable housing investments	$		42		37
FDIC insurance and other taxes			34		16
Marketing			26		27
Loan and lease			23		27
Losses and adjustments			23		14
Operating lease			20		18
Professional service fees			15		12
Travel			12		13
Data processing			12		11
Postal and courier			11		12
Recruitment and education			9		7
Provision for (benefit from) the reserve for unfunded commitments			6		(5)
Insurance			4		5
Supplies			4		4
Donations			3		8
Other, net			41		48
Total other noninterest expense	$		285		254

Other noninterest expense increased $31 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to increases in FDIC insurance and other taxes, the provision for the reserve for unfunded commitments and losses and adjustments partially offset by a decrease in donations expense.

FDIC insurance and other taxes increased $18 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to a settlement of a tax liability related to prior years during the first quarter of 2015 and an increase in the FDIC insurance assessment rate due to changes in the Bancorp’s asset mix as well as an increase in the assessment base. The provision for the reserve for unfunded commitments increased $11 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to an increase in estimated loss rates related to unfunded commitments. Losses and adjustments increased $9 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to the impact of legal settlements in the first quarter of 2015. Donations expense decreased $5 million for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 primarily due to a $4 million contribution to the Fifth Third Foundation in the first quarter of 2015.

15

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The Bancorp continues to focus on efficiency initiatives as part of its core emphasis on operating leverage and expense control. The efficiency ratio (noninterest expense divided by the sum of net interest income (FTE) and noninterest income) was 63.8% for the three months ended March 31, 2016 compared to 62.3% for the three months ended March 31, 2015.

Applicable Income Taxes

The following table presents the Bancorp’s income before income taxes, applicable income tax expense and effective tax rate:

TABLE 13: Applicable Income Taxes

		For the three months ended   March 31,
($ in millions)		2016			2015
Income before income taxes	$		435			485
Applicable income tax expense			108			124
Effective tax rate			25.0	%		25.6

Applicable income tax expense for all periods includes the benefit from tax-exempt income, tax-advantaged investments, and tax credits, partially offset by the effect of certain nondeductible expenses. The tax credits are associated with the Low-Income Housing Tax Credit program established under Section 42 of the IRC, the New Markets Tax Credit program established under Section 45D of the IRC, the Rehabilitation Investment Tax Credit program established under Section 47 of the IRC, and the Qualified Zone Academy Bond program established under Section 1397E of the IRC.

As required under U.S. GAAP, the Bancorp established a deferred tax asset for stock-based awards granted to its employees and directors. When the actual tax deduction for these stock-based awards is less than the expense previously recognized for financial reporting or when the awards expire unexercised and where the Bancorp has not accumulated an excess tax benefit for previously exercised or released stock-based awards, the Bancorp is required to recognize a non-cash charge to income tax expense upon the write-off of the deferred tax asset previously established for these stock-based awards. As the Bancorp had an accumulated excess tax benefit at March 31, 2016 and March 31, 2015, the Bancorp was not required to recognize a non-cash charge to income tax expense related to stock-based awards for the three months ended March 31, 2016 and 2015.

Based on the Bancorp’s stock price at March 31, 2016 and the amount of the Bancorp’s accumulated excess tax benefit through the quarter ended March 31, 2016, the Bancorp believes it is likely that it will exhaust its accumulated excess tax benefit in the second quarter of 2016 and will therefore be required to recognize a non-cash charge to income tax expense of approximately $4 million over the next 12 months, primarily in the second quarter of 2016. However, the Bancorp cannot predict its stock price or whether its employees will exercise other stock-based awards with lower exercise prices in the future. Therefore, it is possible the Bancorp may be required to recognize a non-cash charge to income tax expense in the future.

16

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

BALANCE SHEET ANALYSIS

Loans and Leases

The Bancorp classifies its commercial loans and leases based upon primary purpose and consumer loans and leases based upon product or collateral. Table 14 summarizes end of period loans and leases, including loans held for sale and Table 15 summarizes average total loans and leases, including loans held for sale.

TABLE 14: Components of Loans and Leases (including held for sale)

		March 31, 2016				December 31, 2015
As of ($ in millions)		Carrying Value		% of Total		Carrying Value		% of Total
Commercial loans and leases:
Commercial and industrial loans	$		43,441		46	$	42,151		46
Commercial mortgage loans			6,874		7		6,991		7
Commercial construction loans			3,428		4		3,214		3
Commercial leases			3,956		4		3,854		4
Total commercial loans and leases			57,699		61		56,210		60
Consumer loans and leases:
Residential mortgage loans			14,563		15		14,424		15
Home equity			8,131		9		8,336		9
Automobile loans			11,129		12		11,497		12
Credit card			2,235		2		2,360		3
Other consumer loans and leases			651		1		658		1
Total consumer loans and leases			36,709		39		37,275		40
Total loans and leases	$		94,408		100	$	93,485		100
Total portfolio loans and leases (excluding loans held for sale)	$		93,605			$	92,582

Loans and leases, including loans held for sale, increased $923 million, or 1%, from December 31, 2015. The increase from December 31, 2015 was the result of a $1.5 billion, or 3%, increase in commercial loans and leases, partially offset by a $566 million, or 2%, decrease in consumer loans and leases.

Commercial loans and leases increased from December 31, 2015 primarily due to increases in commercial and industrial loans and commercial construction loans partially offset by a decrease in commercial mortgage loans. Commercial and industrial loans increased $1.3 billion, or 3%, from December 31, 2015 primarily as a result of increases in new loan origination activity and line utilization. Commercial construction loans increased $214 million, or 7%, from December 31, 2015 primarily as a result of an increase in new loan origination activity resulting from an increase in demand and targeted marketing efforts. Commercial mortgage loans decreased $117 million, or 2%, from December 31, 2015 primarily due to a decline in new loan origination activity driven by increased competition and an increase in paydowns.

Consumer loans and leases decreased from December 31, 2015 primarily due to decreases in automobile loans, home equity and credit card, partially offset by an increase in residential mortgage loans. Automobile loans decreased $368 million, or 3%, from December 31, 2015 and home equity decreased $205 million, or 2%, from December 31, 2015 as payoffs exceeded new loan production. Credit card decreased $125 million, or 5%, from December 31, 2015 primarily due to seasonal trends from the paydown of year-end balances which were higher due to holiday spending. Residential mortgage loans increased $139 million, or 1%, from December 31, 2015 primarily due to the continued retention of certain conforming ARMs and certain other fixed-rate loans originated during the three months ended March 31, 2016.

TABLE 15: Components of Average Loans and Leases (including held for sale)

		March 31, 2016				March 31, 2015
For the three months ended ($ in millions)		Carrying Value		% of Total		Carrying Value		% of Total
Commercial loans and leases:
Commercial and industrial loans	$		43,127		46	$	41,462		45
Commercial mortgage loans			6,908		7		7,248		8
Commercial construction loans			3,297		4		2,198		3
Commercial leases			3,875		4		3,716		4
Total commercial loans and leases			57,207		61		54,624		60
Consumer loans and leases:
Residential mortgage loans			14,405		15		13,515		15
Home equity			8,241		9		8,802		10
Automobile loans			11,285		12		11,933		13
Credit card			2,277		2		2,321		2
Other consumer loans and leases			663		1		464		-
Total consumer loans and leases			36,871		39		37,035		40
Total average loans and leases	$		94,078		100	$	91,659		100
Total average portfolio loans and leases (excluding loans held for sale)	$		93,275			$	90,508

Average loans and leases, including loans held for sale, increased $2.4 billion, or 3%, from March 31, 2015. The increase from March 31, 2015 was the result of a $2.6 billion, or 5%, increase in average commercial loans, partially offset by a $164 million decrease in average consumer loans and leases.

17

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Average commercial loans and leases increased from March 31, 2015 primarily due to increases in average commercial and industrial loans and average commercial construction loans partially offset by a decrease in average commercial mortgage loans. Average commercial and industrial loans increased $1.7 billion, or 4%, from March 31, 2015 primarily as a result of increases in new loan origination activity and line utilization. Average commercial construction loans increased $1.1 billion, or 50%, from March 31, 2015 primarily as a result of an increase in new loan origination activity resulting from an increase in demand and targeted marketing efforts. Average commercial mortgage loans decreased $340 million, or 5%, from March 31, 2015 primarily due to a decline in new loan origination activity driven by increased competition and an increase in paydowns.

Average consumer loans and leases decreased from March 31, 2015 primarily due to decreases in average automobile and average home equity, partially offset by increases in average residential mortgage loans and average other consumer loans and leases. Average automobile loans decreased $648 million, or 5%, from March 31, 2015 and average home equity decreased $561 million, or 6%, from March 31, 2015 as payoffs exceeded new loan production. Average residential mortgage loans increased $890 million, or 7%, from March 31, 2015 primarily driven by the continued retention of certain conforming ARMs and certain other fixed-rate loans. Average other consumer loans and leases increased $199 million, or 43%, from March 31, 2015 primarily as a result of an increase in new loan origination activity.

Investment Securities

The Bancorp uses investment securities as a means of managing interest rate risk, providing liquidity support and providing collateral for pledging purposes. Total investment securities were $30.4 billion and $29.5 billion at March 31, 2016 and December 31, 2015, respectively. The taxable investment securities portfolio had an effective duration of 4.8 years at March 31, 2016 compared to 5.1 years at December 31, 2015.

Securities are classified as trading when bought and held principally for the purpose of selling them in the near term. Securities are classified as available-for-sale when, in management’s judgment, they may be sold in response to, or in anticipation of, changes in market conditions. Securities that management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost.

At March 31, 2016, the Bancorp’s investment portfolio consisted primarily of AAA-rated available-for-sale securities. Securities classified as below investment grade were immaterial as of March 31, 2016 and December 31, 2015. The Bancorp’s management has evaluated the securities in an unrealized loss position in the available-for-sale and held-to-maturity portfolios for OTTI. The Bancorp recognized $2 million and $1 million of OTTI on its available-for sale and other debt securities, included in securities gains, net, in the Condensed Consolidated Statements of Income during the three months ended March 31, 2016 and 2015, respectively. The Bancorp recognized $1 million of OTTI on its available-for-sale equity securities, included in securities gains, net, in the Condensed Consolidated Statements of Income during the three months ended March 31, 2016. The Bancorp did not recognize OTTI on its held-to-maturity debt securities during the three months ended March 31, 2016. The Bancorp did not recognize OTTI on any of its available-for-sale equity securities or its held-to-maturity debt securities during the three months ended March 31, 2015.

TABLE 16: Components of Investment Securities

As of ($ in millions)	March 31,           2016		December 31,       2015
Available-for-sale and other securities: (amortized cost basis)
U.S. Treasury and federal agencies securities	$	1,131		1,155
Obligations of states and political subdivisions securities		50		50
Mortgage-backed securities:
Agency residential mortgage-backed securities(a)		14,586		14,811
Agency commercial mortgage-backed securities		7,837		7,795
Non-agency commercial mortgage-backed securities		3,005		2,801
Asset-backed securities and other debt securities		1,526		1,363
Equity securities(b)		703		703
Total available-for-sale and other securities	$	28,838		28,678
Held-to-maturity securities: (amortized cost basis)
Obligations of states and political subdivisions securities	$	62		68
Asset-backed securities and other debt securities		2		2
Total held-to-maturity securities	$	64		70
Trading securities: (fair value)
U.S. Treasury and federal agencies securities	$	18		19
Obligations of states and political subdivisions securities		54		9
Mortgage-backed securities:
Agency residential mortgage-backed securities		5		6
Agency commercial mortgage-backed securities		1		-
Asset-backed securities and other debt securities		23		19
Equity securities		304		333
Total trading securities	$	405		386

(a) Includes interest-only mortgage-backed securities of $41 and $50 as of March 31, 2016 and December 31, 2015, respectively, recorded at fair value with fair value changes recorded in securities gains, net in the Condensed Consolidated Statements of Income.

(b) Equity securities consist of FHLB, FRB and DTCC restricted stock holdings that are carried at par, FHLMC and FNMA preferred stock holdings and certain mutual fund holdings and equity security holdings.

18

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

On an amortized cost basis, available-for-sale and other securities increased $160 million, or 1%, from December 31, 2015 primarily due to increases in non-agency commercial mortgage-backed securities and asset-backed securities and other debt securities, partially offset by a decrease in agency residential mortgage-backed securities.

On an amortized cost basis, available-for-sale and other securities were 23% of total interest-earning assets at both March 31, 2016 and December 31, 2015. The estimated weighted-average life of the debt securities in the available-for-sale and other portfolio was 6.0 years at March 31, 2016 compared to 6.4 years at December 31, 2015. In addition, at March 31, 2016, the available-for-sale and other securities portfolio had a weighted-average yield of 3.21%, compared to 3.19% at December 31, 2015.

Information presented in Table 17 is on a weighted-average life basis, anticipating future prepayments. Yield information is presented on an FTE basis and is computed using amortized cost balances. Maturity and yield calculations for the total available-for-sale and other portfolio exclude equity securities that have no stated yield or maturity. Total net unrealized gains on the available-for-sale and other securities portfolio were $1.1 billion at March 31, 2016 compared to $366 million at December 31, 2015. The increase from December 31, 2015 was primarily due to a decrease in interest rates during the three months ended March 31, 2016. The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. The fair value of investment securities generally increases when interest rates decrease or when credit spreads contract.

TABLE 17: Characteristics of Available-for-Sale and Other Securities

As of March 31, 2016 ($ in millions)	Amortized Cost		Fair Value		Weighted-Average Life (in years)		Weighted-Average     Yield
U.S. Treasury and federal agencies securities:
Average life of 1 year or less	$	572		582		0.5		3.82 %
Average life 1 – 5 years		559		579		1.7		3.73
Total	$	1,131		1,161		1.1		3.77 %
Obligations of states and political subdivisions securities:(a)
Average life of 1 year or less		15		14		0.5		0.01
Average life 1 – 5 years		1		1		1.9		5.80
Average life 5 – 10 years		34		37		7.0		3.93
Total	$	50		52		5.1		2.80 %
Agency residential mortgage-backed securities:
Average life of 1 year or less		151		163		0.9		4.11
Average life 1 – 5 years		6,561		6,792		3.6		3.39
Average life 5 – 10 years		7,312		7,577		6.0		3.18
Average life greater than 10 years		562		597		12.2		3.48
Total	$	14,586		15,129		5.1		3.30 %
Agency commercial mortgage-backed securities:
Average life 1 – 5 years		1,128		1,183		4.2		3.12
Average life 5 – 10 years		6,512		6,815		8.1		3.00
Average life greater than 10 years		197		207		12.2		3.20
Total	$	7,837		8,205		7.7		3.02 %
Non-agency commercial mortgage-backed securities:
Average life of 1 year or less		86		87		0.3		4.14
Average life 1 – 5 years		501		517		3.2		3.32
Average life 5 – 10 years		2,418		2,516		8.1		3.27
Total	$	3,005		3,120		7.0		3.30 %
Asset-backed securities and other debt securities:
Average life of 1 year or less		40		41		0.9		3.67
Average life 1 – 5 years		657		660		2.9		3.03
Average life 5 – 10 years		341		330		8.0		2.73
Average life greater than 10 years		488		489		13.8		2.19
Total	$	1,526		1,520		7.5		2.71 %
Equity securities		703		704
Total available-for-sale and other securities	$	28,838		29,891		6.0		3.21 %

(a) Taxable-equivalent yield adjustments included in the above table are 0.00%, 0.24%, 2.14% and 1.49% for securities with an average life of 1 year or less, 1-5 years, 5-10 years and in total, respectively.

19

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Deposits

The Bancorp’s deposit balances represent an important source of funding and revenue growth opportunity. The Bancorp continues to focus on core deposit growth in its retail and commercial franchises by improving customer satisfaction, building full relationships and offering competitive rates. Core deposits represented 70% and 71% of the Bancorp’s asset funding base at March 31, 2016 and December 31, 2015, respectively.

TABLE 18: Components of Deposits

		March 31, 2016				December 31, 2015
As of ($ in millions)		Balance		% of Total		Balance		% of Total
Demand	$		35,858		35	$	36,267		35
Interest checking			25,182		25		26,768		26
Savings			14,738		14		14,601		14
Money market			19,377		19		18,494		18
Foreign office			441		-		464		-
Transaction deposits			95,596		93		96,594		93
Other time			4,049		4		4,019		4
Core deposits			99,645		97		100,613		97
Certificates $100,000 and over(a)			2,830		3		2,592		3
Total deposits	$		102,475		100	$	103,205		100

(a) Includes $1,381 and $1,449 of certificates $250,000 and over at March 31, 2016 and December 31, 2015, respectively.

Core deposits decreased $968 million, or 1%, from December 31, 2015 driven primarily by a decrease of $998 million, or 1%, in transaction deposits. Transaction deposits decreased from December 31, 2015 primarily due to decreases in interest checking deposits and demand deposits, partially offset by increases in money market deposits and savings deposits. Interest checking deposits decreased $1.6 billion, or 6%, from December 31, 2015 driven primarily by lower balances per account for commercial customers. Demand deposits decreased $409 million, or 1%, from December 31, 2015 primarily due to uninvested trust funds held in demand deposit accounts at December 31, 2015 that were invested into non-deposit products during the first quarter of 2016. Money market deposits increased $883 million, or 5%, from December 31, 2015 driven primarily by a promotional product offering during the first quarter of 2016 and higher balances for existing customers. Savings deposits increased $137 million, or 1%, from December 31, 2015. The Bancorp uses certificates $100,000 and over as a method to fund earning assets. Certificates $100,000 and over increased $238 million, or 9%, from December 31, 2015 primarily due to the issuance of institutional certificates of deposit during the three months ended March 31, 2016.

The following table presents average deposits for the three months ended:

TABLE 19: Components of Average Deposits

		March 31, 2016				March 31, 2015
($ in millions)		Balance		% of Total		Balance		% of Total
Demand	$		35,201		35	$	33,760		33
Interest checking			25,740		26		26,885		27
Savings			14,601		14		15,174		15
Money market			18,655		18		17,492		17
Foreign office			483		-		861		1
Transaction deposits			94,680		93		94,172		93
Other time			4,035		4		4,022		4
Core deposits			98,715		97		98,194		97
Certificates $100,000 and over(a)			2,815		3		2,683		3
Total average deposits	$		101,530		100	$	100,877		100

(a) Includes $1,395 and $1,501 of average certificates $250,000 and over for the three months ended March 31, 2016 and 2015, respectively.

On an average basis, core deposits increased $521 million, or 1%, from March 31, 2015 primarily due to an increase of $508 million, or 1%, in average transaction deposits. The increase in average transaction deposits was driven by increases in average demand deposits and average money market deposits, partially offset by decreases in average interest checking deposits, average savings deposits and average foreign office deposits. Average demand deposits increased $1.4 billion, or 4%, from March 31, 2015 primarily due to increases in average commercial and consumer account balances. Average money market deposits increased $1.2 billion, or 7%, primarily due to higher customer balances per commercial customer account and the acquisition of new commercial customers. The remaining increase was driven by a promotional product offering which drove balance migration from savings deposits which decreased $573 million, or 4%, compared to March 31, 2015. Average interest checking deposits decreased $1.1 billion, or 4%, from March 31, 2015 primarily due to a decrease in average commercial customer balances per account. Average foreign office deposits decreased $378 million, or 44%, from March 31, 2015 primarily due to lower average balances per account. Average certificates $100,000 and over increased $132 million, or 5%, from March 31, 2015 primarily due to the previously mentioned issuance of institutional certificates of deposit during the three months ended March 31, 2016.

20

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Contractual maturities

The contractual maturities of certificates $100,000 and over as of March 31, 2016 are summarized in the following table:

TABLE 20: Contractual Maturities of Certificates $100,000 and over

($ in millions)
Next 3 months	$	311
3-6 months		508
6-12 months		243
After 12 months		1,768
Total certificates $100,000 and over	$	2,830

The contractual maturities of other time deposits and certificates $100,000 and over as of March 31, 2016 are summarized in the following table:

TABLE 21: Contractual Maturities of Other Time Deposits and Certificates $100,000 and over

($ in millions)
Next 12 months	$	2,531
13-24 months		1,783
25-36 months		487
37-48 months		1,371
49-60 months		684
After 60 months		23
Total other time deposits and certificates $100,000 and over	$	6,879

Borrowings

Total borrowings increased $1.5 billion, or 9%, from December 31, 2015. Table 22 summarizes the end of period components of total borrowings. As of March 31, 2016, total borrowings as a percent of interest-bearing liabilities were 22% compared to 21% at December 31, 2015.

TABLE 22: Components of Borrowings

As of ($ in millions)	March 31, 2016		December 31, 2015
Federal funds purchased	$	134		151
Other short-term borrowings		3,523		1,507
Long-term debt		15,305		15,810
Total borrowings	$	18,962		17,468

Other short-term borrowings increased $2.0 billion from December 31, 2015 primarily driven by an increase of $2.0 billion in FHLB short-term borrowings. The level of other short-term borrowings can fluctuate significantly from period to period depending on funding needs and which sources are used to satisfy those needs. For further information on the components of other short-term borrowings, refer to Note 12 of the Notes to Condensed Consolidated Financial Statements. Long-term debt decreased $505 million, or 3%, from December 31, 2015 primarily driven by the maturity of $1.7 billion of unsecured senior bank notes and $385 million of pay-downs on long-term debt associated with automobile loan securitizations, partially offset by issuances in the first quarter of 2016 of $750 million of unsecured senior fixed-rate bank notes and $750 million of unsecured subordinated fixed-rate bank notes. For additional information regarding automobile securitizations and long-term debt, refer to Note 9 and Note 13, respectively, of the Notes to Condensed Consolidated Financial Statements.

The following table presents average borrowings for the three months ended:

TABLE 23: Components of Average Borrowings

($ in millions)	March 31, 2016		March 31, 2015
Federal funds purchased	$	608		172
Other short-term borrowings		3,564		1,602
Long-term debt		14,949		14,414
Total average borrowings	$	19,121		16,188

Total average borrowings increased $2.9 billion, or 18%, compared to March 31, 2015, primarily due to a $2.0 billion increase in average other short-term borrowings and a $535 million increase in average long-term debt due to the aforementioned activities, coupled with a $436 million increase in average federal funds purchased. The level of average federal funds purchased can fluctuate significantly from period to period depending on funding needs and which sources are used to satisfy those needs. Information on the average rates paid on borrowings is discussed in the Net Interest Income subsection of the Statements of Income Analysis section of MD&A. In addition, refer to the Liquidity Risk Management subsection of the Risk Management section of MD&A for a discussion on the role of borrowings in the Bancorp’s liquidity management.

21

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

BUSINESS SEGMENT REVIEW

The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Investment Advisors. Additional information on each business segment is included in Note 21 of the Notes to Condensed Consolidated Financial Statements. Results of the Bancorp’s business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp’s business segments are not necessarily comparable with similar information for other financial institutions. The Bancorp refines its methodologies from time to time as management’s accounting practices or businesses change.

The Bancorp manages interest rate risk centrally at the corporate level and employs an FTP methodology at the business segment level. This methodology insulates the business segments from interest rate volatility, enabling them to focus on serving customers through loan and deposit products. The FTP system assigns charge rates and credit rates to classes of assets and liabilities, respectively, based on expected duration and the U.S. swap curve. Matching duration allocates interest income and interest expense to each business segment so its resulting net interest income is insulated from interest rate risk. In a rising rate environment, the Bancorp benefits from the widening spread between deposit costs and wholesale funding costs. However, the Bancorp’s FTP system credits this benefit to deposit-providing businesses, such as Branch Banking and Investment Advisors, on a duration-adjusted basis. The net impact of the FTP methodology is captured in General Corporate and Other.

The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of the estimated durations for the indeterminate-lived deposits. The credit rate provided for demand deposit accounts is reviewed annually based upon the account type, its estimated duration and the corresponding federal funds, U.S. swap curve or swap rate. The credit rates for several deposit products were reset January 1, 2016 to reflect the current market rates and updated market assumptions. These rates were generally higher than those in place during 2015, thus net interest income for deposit-providing businesses was positively impacted during 2016. FTP charge rates on assets were affected by the prevailing level of interest rates and by the duration and repricing characteristics of the portfolio. As overall market rates increased, the FTP charge increased for asset-generating businesses, thus negatively affecting net interest income during 2016.

During the first quarter of 2016, the Bancorp refined its methodology for allocating provision expense to the business segments to include charges or benefits associated with changes in criticized commercial loan levels in addition to actual net charge-offs experienced by the loans and leases owned by each business segment. The results of operations and financial position for the three months ended March 31, 2015 were adjusted to reflect this change. Provision expense attributable to loan and lease growth and changes in ALLL factors are captured in General Corporate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Additionally, the business segments form synergies by taking advantage of cross-sell opportunities and when funding operations by accessing the capital markets as a collective unit.

The results of operations and financial position for the three months ended March 31, 2015 were adjusted to reflect changes in internal expense allocation methodologies.

The following table summarizes net income (loss) by business segment:

TABLE 24: Net Income (Loss) by Business Segment

		For the three months ended   March 31,
($ in millions)		2016	2015
Income Statement Data
Commercial Banking	$	211	163
Branch Banking		110	72
Consumer Lending		8	47
Investment Advisors		23	13
General Corporate and Other		(25)	66
Net income		327	361
Less: Net income attributable to noncontrolling interests		-	-
Net income attributable to Bancorp		327	361
Dividends on preferred stock		15	15
Net income available to common shareholders	$	312	346

22

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Commercial Banking

Commercial Banking offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. In addition to the traditional lending and depository offerings, Commercial Banking products and services include global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance.

The following table contains selected financial data for the Commercial Banking segment:

TABLE 25: Commercial Banking

		For the three months ended   March 31,
($ in millions)		2016	2015
Income Statement Data
Net interest income (FTE)(a)	$	457	397
Provision for loan and lease losses		65	42
Noninterest income:
Corporate banking revenue		102	62
Service charges on deposits		73	70
Other noninterest income		48	42
Noninterest expense:
Personnel costs		80	80
Other noninterest expense		283	268
Income before income taxes		252	181
Applicable income tax expense(a)(b)		41	18
Net income	$	211	163
Average Balance Sheet Data
Commercial loans and leases, including held for sale	$	54,071	51,481
Demand deposits		20,414	19,959
Interest checking deposits		8,975	9,245
Savings and money market deposits		6,733	6,053
Other time deposits and certificates $100,000 and over		1,126	1,337
Foreign office deposits		482	852

(a) Includes FTE adjustments of $6 and $5 for the three months ended March 31, 2016 and 2015, respectively.

(b) Applicable income tax expense for all periods includes the tax benefit from tax-exempt income and business tax credits, partially offset by the effect of certain nondeductible expenses. Refer to the Applicable Income Taxes section of MD&A for additional information.

Net income was $211 million for the three months ended March 31, 2016 compared to net income of $163 million for the three months ended March 31, 2015. The increase in net income was driven by increases in net interest income and noninterest income partially offset by increases in the provision for loan and leases losses and noninterest expense.

Net interest income on an FTE basis increased $60 million for the three months ended March 31, 2016 compared to the same period in the prior year. The increase was driven primarily by an increase in average commercial loan and lease balances as well as an increase in their yields of 8 bps. The increase in net interest income was also due to an increase in FTP credit rates on core deposits. These increases for the three months ended March 31, 2016 compared to the same period in the prior year were partially offset by an increase in FTP charge rates on loans and leases.

Provision for loan and lease losses increased $23 million for the three months ended March 31, 2016 compared to the same period in the prior year due to an increase in charge-offs of commercial and industrial loans, primarily in the energy portfolio and related to oil field services loans and an increase in criticized commercial loans. Net charge-offs as a percent of average portfolio loans and leases increased to 37 bps for the three months ended March 31, 2016 compared to 26 bps for the same period in the prior year.

Noninterest income increased $49 million for the three months ended March 31, 2016 compared to the same period in the prior year as a result of increases in corporate banking revenue, other noninterest income and service charges on deposits. Corporate banking revenue increased $40 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily driven by a $30 million impairment charge related to operating lease equipment that was recognized during the first quarter of 2015. The increase was also driven by increases in syndication fees as a result of increased activity in the market, partially offset by decreases in foreign exchange fees and letter of credit fees compared to the same period in the prior year. Other noninterest income increased $6 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to increases in card and processing revenue and operating lease income. Service charges on deposits increased $3 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to the acquisition of new customers.

Noninterest expense increased $15 million for the three months ended March 31, 2016 compared to the same period in the prior year driven by an increase in other noninterest expense. The increase in other noninterest expense was primarily driven by increases in corporate overhead allocations and impairment on affordable housing investments, partially offset by a decrease in expenses related to OREO.

23

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Average commercial loans increased $2.6 billion for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to increases in average commercial and industrial loans and average commercial construction loans partially offset by a decrease in average commercial mortgage loans. Average commercial and industrial loans increased $1.7 billion for the three months ended March 31, 2016 compared to the same period in the prior year primarily as a result of an increase in new loan origination activity and line utilization. Average commercial construction loans increased $1.1 billion for the three months ended March 31, 2016 compared to the same period in the prior year primarily as a result of an increase in new loan origination activity resulting from an increase in demand and targeted marketing efforts. Average commercial mortgage loans decreased $314 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to a decline in new loan origination activity driven by increased competition and an increase in paydowns.

Average core deposits increased $489 million for the three months ended March 31, 2016 compared to the same period in the prior year. The increase was primarily driven by increases in average savings and money market deposits and average demand deposits which increased $680 million and $455 million, respectively, for the three months ended March 31, 2016 compared to the same period in the prior year. These increases were partially offset by decreases in average foreign deposits and average interest checking deposits of $370 million and $270 million, respectively, for the three months ended March 31, 2016 compared to the same period in the prior year.

Branch Banking

Branch Banking provides a full range of deposit and loan products to individuals and small businesses through 1,241 full-service banking centers. Branch Banking offers depository and loan products, such as checking and savings accounts, home equity loans and lines of credit, credit cards and loans for automobiles and other personal financing needs, as well as products designed to meet the specific needs of small businesses, including cash management services.

The following table contains selected financial data for the Branch Banking segment:

TABLE 26: Branch Banking

		For the three months ended  March 31,
($ in millions)		2016		2015
Income Statement Data
Net interest income	$		426		377
Provision for loan and lease losses			34		42
Noninterest income:
Service charges on deposits			64		65
Card and processing revenue			61		55
Investment advisory revenue			35		39
Other noninterest income			29		17
Noninterest expense:
Personnel costs			132		135
Net occupancy and equipment expense			59		61
Card and processing expense			34		34
Other noninterest expense			186		170
Income before income taxes			170		111
Applicable income tax expense			60		39
Net income	$		110		72
Average Balance Sheet Data
Consumer loans, including held for sale	$		13,903		14,657
Commercial loans, including held for sale			1,946		1,990
Demand deposits			13,131		12,185
Interest checking deposits			9,430		9,112
Savings and money market deposits			25,326		25,530
Other time deposits and certificates $100,000 and over			5,210		5,054

Net income was $110 million for the three months ended March 31, 2016 compared to net income of $72 million for the three months ended March 31, 2015. The increase was driven by increases in net interest income and noninterest income as well as a decrease in the provision for loan and lease losses partially offset by an increase in noninterest expense.

Net interest income increased $49 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to an increase in FTP credit rates on core deposits and a decrease in interest expense on core deposits driven by a decrease in the rates paid. These benefits were partially offset by a decrease in interest income on residential mortgage loans and home equity loans driven by a decline in average balances and a decrease in interest income on other consumer loans driven by a decline in yields. Additionally, net interest income was impacted by an increase in FTP charge rates on loans and leases.

Provision for loan and lease losses decreased $8 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to improved credit trends. Net charge-offs as a percent of average portfolio loans and leases decreased to 89 bps for the three months ended March 31, 2016 compared to 103 bps for the same period in the prior year.

Noninterest income increased $13 million for the three months ended March 31, 2016 compared to the same period in the prior year. The increase was primarily driven by increases in other noninterest income and card and processing revenue partially offset by a decrease in investment advisory revenue.

24

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Other noninterest income increased $12 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily driven by a gain of $8 million on the sale of certain St. Louis branches as part of the previously announced Branch Consolidation and Sales Plan and an increase in gains on the disposition of other fixed assets. Card and processing revenue increased $6 million for the three months ended March 31, 2016 compared to the same period in the prior year as a result of an increase in the number of actively used cards and an increase in customer spend volume. Investment advisory revenue decreased $4 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to a decrease in transactional securities and brokerage fees driven by lower sales and trading volume.

Noninterest expense increased $11 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily driven by an increase in other noninterest expense partially offset by decreases in personnel costs and net occupancy and equipment expense. Other noninterest expense increased $16 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily driven by an increase in corporate overhead allocations. Personnel costs decreased $3 million for the three months ended March 31, 2016 compared to the same period in the prior year driven by a decrease in base compensation. Net occupancy and equipment expense decreased $2 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to a decrease in rent expense driven by a reduction in the number of full-service banking centers and ATM locations.

Average consumer loans decreased $754 million for the three months ended March 31, 2016 compared to the same period in the prior year. The decrease was primarily driven by decreases in average home equity loans and average residential mortgage loans of $461 million and $247 million, respectively, for the three months ended March 31, 2016 compared to the same period in the prior year as payoffs exceeded new loan production. Average commercial loans decreased $44 million for the three months ended March 31, 2016 compared to the same period in the prior year. The decrease was primarily driven by decreases in average commercial mortgage loans and average commercial and industrial loans of $28 million and $12 million, respectively, for the three months ended March 31, 2016 compared to the same period in the prior year as payoffs exceeded new loan production.

Average core deposits increased $1.1 billion for the three months ended March 31, 2016 compared to the same period in the prior year primarily driven by growth in average demand deposits and average interest checking deposits of $946 million and $318 million, respectively, due to an increase in average balances per customer account.

Consumer Lending

Consumer Lending includes the Bancorp’s residential mortgage, home equity, automobile and other indirect lending activities. Lending activities include the origination, retention and servicing of residential mortgage and home equity loans or lines of credit, sales and securitizations of those loans, pools of loans or lines of credit and all associated hedging activities. Indirect lending activities include extending loans to consumers through correspondent lenders and automobile dealers.

The following table contains selected financial data for the Consumer Lending segment:

TABLE 27: Consumer Lending

		For the three months ended March 31,
($ in millions)		2016		2015
Income Statement Data
Net interest income	$		60		63
Provision for loan and lease losses			12		14
Noninterest income:
Mortgage banking net revenue			77		85
Other noninterest income			6		44
Noninterest expense:
Personnel costs			48		45
Other noninterest expense			70		60
Income before income taxes			13		73
Applicable income tax expense			5		26
Net income	$		8		47
Average Balance Sheet Data
Residential mortgage loans, including held for sale	$		9,836		9,032
Home equity			384		452
Automobile loans			10,772		11,422
Other consumer loans, including held for sale			-		24

Net income was $8 million for the three months ended March 31, 2016 compared to net income of $47 million for the three months ended March 31, 2015. The decrease was driven by decreases in noninterest income and net interest income as well as an increase in noninterest expense partially offset by a decrease in the provision for loan and lease losses.

Net interest income decreased $3 million for the three months ended March 31, 2016 compared to the same period in the prior year. The decrease was primarily driven by a decrease in average automobile loan balances and a decrease in the yields on average residential mortgage loans partially offset by an increase in average residential mortgage loan balances.

25

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Provision for loan and lease losses decreased $2 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to improved delinquency metrics on residential mortgage loans. Net charge-offs as a percent of average portfolio loans and leases decreased to 23 bps for the three months ended March 31, 2016 compared to 29 bps for the same period in the prior year.

Noninterest income decreased $46 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to decreases in other noninterest income and mortgage banking net revenue. Other noninterest income decreased $38 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to a $37 million gain on the sale of held for sale residential mortgage loans classified as TDRs in the first quarter of 2015. Mortgage banking net revenue decreased $8 million for the three months ended March 31, 2016 compared to the same period in the prior year. The decrease was due to a $2 million decrease in mortgage origination fees and gains on loan sales and a $6 million decrease in net mortgage servicing revenue. Refer to the Noninterest Income section of MD&A for additional information on the fluctuations in mortgage banking net revenue.

Noninterest expense increased $13 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily driven by an increase in other noninterest expense. Other noninterest expense increased $10 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to the impact of legal settlements in the first quarter of 2015 and an increase in corporate overhead allocations.

Average consumer loans and leases increased $62 million for the three months ended March 31, 2016 compared to the same period in the prior year. Average residential mortgage loans increased $804 million compared to the same period in the prior year primarily driven by the continued retention of certain conforming ARMs and certain other fixed-rate loans. Average automobile loans decreased $650 million for the three months ended March 31, 2016 compared to the same period in the prior year as payoffs exceeded new loan production.

Investment Advisors

Investment Advisors provides a full range of investment alternatives for individuals, companies and not-for-profit organizations. Investment Advisors is made up of four main businesses: FTS, an indirect wholly-owned subsidiary of the Bancorp; ClearArc Capital, Inc., an indirect wholly-owned subsidiary of the Bancorp; Fifth Third Private Bank; and Fifth Third Institutional Services. FTS offers full-service retail brokerage services to individual clients and broker dealer services to the institutional marketplace. ClearArc Capital, Inc. provides asset management services. Fifth Third Private Bank offers holistic strategies to affluent clients in wealth planning, investing, insurance and wealth protection. Fifth Third Institutional Services provides advisory services for institutional clients including states and municipalities.

The following table contains selected financial data for the Investment Advisors segment:

TABLE 28: Investment Advisors

			For the three months ended
			March 31,
($ in millions)			2016		2015
Income Statement Data
Net interest income		$		43		29
Provision for loan and lease losses				-		1
Noninterest income:
Investment advisory revenue				99		105
Other noninterest income				1		2
Noninterest expense:
Personnel costs				45		44
Other noninterest expense				62		71
Income before income taxes				36		20
Applicable income tax expense				13		7
Net income	$			23		13
Average Balance Sheet Data
Loans and leases, including held for sale	$			3,067		2,500
Core deposits				8,864		9,791

Net income was $23 million for the three months ended March 31, 2016 compared to net income of $13 million for the same period in the prior year. The increase in net income was primarily due to an increase in net interest income and a decrease in noninterest expense partially offset by a decrease in noninterest income.

Net interest income increased $14 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to an increase in FTP credit rates on core deposits and an increase in interest income on loans and leases driven by an increase in average balances. The increase in net interest income was partially offset by an increase in FTP charges due to an increase in average loan balances and an increase in FTP charge rates on loans and leases.

Noninterest income decreased $7 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to a $6 million decrease in investment advisory revenue driven by a $4 million decrease in transactional securities and brokerage fees driven by lower sales and trading volume and a $2 million decrease in private client service fees due to a decrease in personal asset management fees.

26

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Noninterest expense decreased $8 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to a decrease in other noninterest expense driven by decreases in both corporate overhead allocations and operational losses.

Average loans and leases increased $567 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to increases in average residential mortgage loans and average other consumer loans driven by an increase in new loan origination activity. Average core deposits decreased $927 million for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to a decrease in average interest checking balances partially offset by increases in average savings and money market deposits and average demand deposits.

General Corporate and Other

General Corporate and Other includes the unallocated portion of the investment securities portfolio, securities gains and losses, certain non-core deposit funding, unassigned equity, unallocated provision expense or a benefit from the reduction of the ALLL, the payment of preferred stock dividends and certain support activities and other items not attributed to the business segments.

Net interest income decreased $63 million for the three months ended March 31, 2016 compared to the same period in the prior year. The decrease was primarily driven by an increase in FTP credits on deposits allocated to business segments driven by increases in average deposits and an increase in interest expense on long-term debt. The decrease in net interest income was partially offset by an increase in interest income on taxable securities and an increase in the benefit related to the FTP charges on loans and leases. Results for the three months ended March 31, 2016 were impacted by $8 million of unallocated provision expense compared to a benefit of $30 million for the three months ended March 31, 2015.

Noninterest income decreased $7 million for the three months ended March 31, 2016 compared to the same period in the prior year. The decrease in noninterest income included the impact of the positive valuation adjustment on the stock warrant associated with Vantiv Holding, LLC of $47 million for the three months ended March 31, 2016 compared to the positive valuation adjustment of $70 million for the three months ended March 31, 2015. The decrease was partially offset by a $4 million increase in equity method earnings from the Bancorp’s interest in Vantiv Holding, LLC. Additionally, noninterest income included a $1 million positive valuation adjustment related to the Visa total return swap for the three months ended March 31, 2016 compared to a negative valuation adjustment of $17 million for the three months ended March 31, 2015.

Noninterest expense for the three months ended March 31, 2016 was an expense of $20 million compared to a benefit of $7 million for the three months ended March 31, 2015. The increase was primarily due to an increase in personnel costs, an increase in the provision for the reserve for unfunded commitments and an increase in FDIC insurance and other taxes. The increase was partially offset by an increase in corporate overhead allocations from General Corporate and Other to the other business segments.

27

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

RISK MANAGEMENT – OVERVIEW

Managing risk is an essential component of successfully operating a financial services company. The Bancorp’s risk management approach includes processes for identifying, assessing, managing, monitoring and reporting risks. The ERM division, led by the Bancorp’s Chief Risk Officer, ensures the consistency and adequacy of the Bancorp’s risk management approach within the structure of the Bancorp’s operating model. Management within the lines of business and support functions assess and manage risks associated with their activities and determine if actions need to be taken to strengthen risk management or reduce risk given their risk profile. They are responsible for considering risk when making business decisions and for integrating risk management into business processes. In addition, the Internal Audit division provides an independent assessment of the Bancorp’s internal control structure and related systems and processes.

The assumption of risk requires robust and active risk management practices that comprise an integrated and comprehensive set of activities, measures and strategies that apply to the entire organization. The Bancorp has established a Risk Appetite Framework, approved by the Board, that provides the foundations of corporate risk capacity, risk appetite and risk tolerances. The Bancorp’s risk capacity is represented by its available financial resources. Risk capacity sets an absolute limit on risk-assumption in the Bancorp’s annual and strategic plans. The Bancorp understands that not all financial resources may persist as viable loss buffers over time. Further, consideration must be given to regulatory capital buffers required per Capital Policy Targets that would reduce risk capacity. Those factors take the form of capacity adjustments to arrive at an Operating Risk Capacity which represents the operating risk level the Bancorp can assume while maintaining its solvency standard. The Bancorp’s policy currently discounts its Operating Risk Capacity by a minimum of 5% to provide a buffer; as a result, the Bancorp’s risk appetite is limited by policy to, at most, 95% of its Operating Risk Capacity.

Economic capital is the amount of unencumbered financial resources required to support the Bancorp’s risks. The Bancorp measures economic capital under the assumption that it expects to maintain debt ratings at strong investment grade levels over time. The Bancorp’s capital policies require that the Operating Risk Capacity less the aforementioned buffer exceed the calculated economic capital required in its business.

Risk appetite is the aggregate amount of risk the Bancorp is willing to accept in pursuit of its strategic and financial objectives. By establishing boundaries around risk taking and business decisions, and by incorporating the needs and goals of its shareholders, regulators, rating agencies and customers, the Bancorp’s risk appetite is aligned with its priorities and goals. Risk tolerance is the maximum amount of risk applicable to each of the eight specific risk categories included in its Enterprise Risk Management Framework. This is expressed primarily in qualitative terms; however certain risk types also have quantitative metrics that are used to measure the Bancorp’s level of risk against its risk tolerances. The Bancorp’s risk appetite and risk tolerances are supported by risk targets and risk limits. Those limits are used to monitor the amount of risk assumed at a granular level. On a quarterly basis, the Risk and Compliance Committee of the Board reviews current assessments of each of the eight risk types relative to the established tolerance. Information supporting these assessments, including policy limits and key risk indicators, is also reported to the Risk and Compliance Committee of the Board. Any results outside of tolerance require the development of an action plan that describes actions to be taken to return the measure to within the tolerance.

The risks faced by the Bancorp include, but are not limited to, credit, market, liquidity, operational, regulatory compliance, legal, reputational and strategic. Each of these risks is managed through the Bancorp’s risk program which includes the following key functions:

• ERM is responsible for developing and overseeing the implementation of risk programs and reporting that facilitate a broad integrated view of risk. The department also leads the continual fostering of a strong risk management culture and the framework, policies and committees that support effective risk governance, including the oversight of Sarbanes-Oxley compliance;

• Credit Risk Management is responsible for overseeing the safety and soundness of the commercial and consumer loan portfolio within an independent portfolio management framework that supports the Bancorp’s loan growth strategies and underwriting practices, ensuring portfolio optimization and appropriate risk controls. Credit Risk Management is also responsible for the economic capital program and quantitative analytics to support the commercial portfolio and risk rating models, ALLL methodology and analytics needed to assess credit risk and develop mitigation strategies related to that risk. The department also provides oversight, reporting and monitoring of commercial and consumer underwriting and credit administration processes;

• Operational Risk Management works with lines of business and regional management to maintain processes to monitor and manage all aspects of operational risk, including vendors and information security to ensure consistency in application of operational risk programs;

• Bank Protection oversees and manages fraud prevention and detection and provides investigative and recovery services for the Bancorp;

• Capital Markets Risk Management is responsible for instituting, monitoring, and reporting appropriate trading limits within the Capital Markets groups and monitoring liquidity, interest rate risk and risk tolerances resulting from management of Fifth Third’s overall balance sheet;

• Regulatory Compliance Risk Management provides independent oversight to ensure than an enterprise-wide framework, including processes and procedures, are in place to comply with applicable laws, regulations, rules and other regulatory requirements; internal policies and procedures; and principles of integrity and fair dealing applicable to the Bancorp’s activities and functions. The Bancorp focuses on managing regulatory compliance risk in accordance with the Bancorp’s integrated risk management framework, which ensures consistent processes for indentifying, assessing, managing, monitoring and reporting risks; and

• The ERM division creates and maintains other functions, committees or processes as are necessary to effectively oversee risk management throughout the Bancorp.

Risk management oversight and governance is provided by the Risk and Compliance Committee of the Board of Directors and through multiple management committees whose membership includes a broad cross-section of line-of-business, regional market and support representatives. The Risk and Compliance Committee of the Board of Directors consists of five outside directors and has the responsibility for the oversight of risk management for the Bancorp, as well as for the Bancorp’s overall aggregate risk profile. The Risk and Compliance Committee of the Board of Directors has approved the formation of key management governance committees that are responsible for evaluating risks and controls.

28

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The primary committee responsible for the oversight of risk management is the ERMC. Committees accountable to the ERMC, which support the core risk programs, are the Corporate Credit Committee, the Operational Risk Committee, the Management Compliance Committee, the Asset/Liability Committee and the Enterprise Marketing Committee. Other committees accountable to the ERMC oversee the ALLL, capital, model risk and regulatory change management functions. There is also a risk assessment process applicable to every line of business to ensure an appropriate standard readiness assessment is performed before launching a new or changing product or initiative. Significant risk policies approved by the management governance committees are also reviewed and approved by the Risk and Compliance Committee of the Board of Directors.

Credit Risk Review is an independent function responsible for evaluating the sufficiency of underwriting, documentation and approval processes for consumer and commercial credits, the accuracy of risk grades assigned to commercial credit exposure, nonaccrual status, specific reserves and monitoring for charge-offs. Credit Risk Review reports directly to the Risk and Compliance Committee of the Board of Directors and administratively to the Chief Auditor.

CREDIT RISK MANAGEMENT

The objective of the Bancorp’s credit risk management strategy is to quantify and manage credit risk on an aggregate portfolio basis, as well as to limit the risk of loss resulting from the failure of a borrower or counterparty to honor its financial or contractual obligations to the Bancorp. The Bancorp’s credit risk management strategy is based on three core principles: conservatism, diversification and monitoring. The Bancorp believes that effective credit risk management begins with conservative lending practices. These practices include conservative exposure and counterparty limits and conservative underwriting, documentation and collection standards. The Bancorp’s credit risk management strategy also emphasizes diversification on a geographic, industry and customer level as well as ongoing portfolio monitoring and timely management reviews of large credit exposures and credits experiencing deterioration of credit quality. Credit officers with the authority to extend credit are delegated specific authority amounts, the utilization of which is closely monitored. Underwriting activities are centrally managed, and ERM manages the policy and the authority delegation process directly. The Credit Risk Review function provides independent and objective assessments of the quality of underwriting and documentation, the accuracy of risk grades and the charge-off, nonaccrual and reserve analysis process. The Bancorp’s credit review process and overall assessment of the adequacy of the allowance for credit losses is based on quarterly assessments of the probable estimated losses inherent in the loan and lease portfolio. The Bancorp uses these assessments to promptly identify potential problem loans or leases within the portfolio, maintain an adequate reserve and take any necessary charge-offs. The Bancorp defines potential problem loans and leases as those rated substandard that do not meet the definition of a nonaccrual loan or a restructured loan. Refer to Note 6 of the Notes to Condensed Consolidated Financial Statements for further information on the Bancorp’s credit grade categories, which are derived from standard regulatory rating definitions.

The following tables provide a summary of potential problem portfolio loans and leases:

TABLE 29: Potential Problem Portfolio Loans and Leases
As of March 31, 2016 ($ in millions)		Carrying   Value		Unpaid   Principal   Balance		Exposure
Commercial and industrial loans	$		1,455		1,457		2,067
Commercial mortgage loans			166		166		168
Commercial construction loans			1		1		1
Commercial leases			29		29		30
Total potential problem portfolio loans and leases	$		1,651		1,653		2,266
TABLE 30: Potential Problem Portfolio Loans and Leases
As of December 31, 2015 ($ in millions)		Carrying   Value		Unpaid   Principal   Balance		Exposure
Commercial and industrial loans	$		1,383		1,384		1,922
Commercial mortgage loans			170		171		172
Commercial construction loans			6		6		7
Commercial leases			36		36		39
Total potential problem portfolio loans and leases	$		1,595		1,597		2,140

In addition to the individual review of larger commercial loans that exhibit probable or observed credit weaknesses, the commercial credit review process includes the use of two risk grading systems. The risk grading system currently utilized for reserve analysis purposes encompasses ten categories. The Bancorp also maintains a dual risk rating system for credit approval and pricing, portfolio monitoring and capital allocation that includes a “through-the-cycle” rating philosophy for assessing a borrower’s creditworthiness. The dual risk rating system includes thirteen probabilities of default grade categories and an additional six grade categories for estimating losses given an event of default. The probability of default and loss given default evaluations are not separated in the ten-category risk rating system. The Bancorp has completed significant validation and testing of the dual risk rating system as a commercial credit risk management tool. The Bancorp is assessing the necessary modifications to the dual risk rating system outputs to develop a U.S. GAAP compliant ALLL model and will make a decision on the use of modified dual risk ratings for purposes of determining the Bancorp’s ALLL once the FASB has issued a final standard regarding proposed methodology changes to the determination of credit impairment as outlined in the FASB’s Proposed ASU–Financial Instruments–Credit Losses (Subtopic 825-15) issued on December 20, 2012. Scoring systems, various analytical tools and portfolio performance monitoring are used to assess the credit risk in the Bancorp’s homogenous consumer and small business loan portfolios.

29

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Economic Overview

Economic growth continues to improve, and GDP is expected to maintain its modest expansionary pattern. The U.S. job market and wages are slowly but steadily improving. Consumer spending has been moderate and there are indications that manufacturing is stabilizing. Inflation continues to run below the FRB’s stated objective, but has increased over the past several months. Energy prices and the dollar have stabilized and are moving in a pattern that may continue the improvement in inflation and manufacturing. Housing prices have largely stabilized and are increasing in many markets. However, overall current economic and competitive conditions are causing weaker than desired qualified loan growth that combined with a weakness in global economic conditions and a relatively low interest rate environment, may directly or indirectly impact the Bancorp’s growth and profitability. The FRB noted asymmetric risks to the downside in their latest assessment of the risks to their economic outlook.

Commercial Portfolio

The Bancorp’s credit risk management strategy includes minimizing concentrations of risk through diversification. The Bancorp has commercial loan concentration limits based on industry, lines of business within the commercial segment, geography and credit product type. The risk within the commercial loan and lease portfolio is managed and monitored through an underwriting process utilizing detailed origination policies, continuous loan level reviews, monitoring of industry concentration and product type limits and continuous portfolio risk management reporting.

The origination policies for commercial real estate outline the risks and underwriting requirements for owner and nonowner-occupied and construction lending. Included in the policies are maturity and amortization terms, maximum LTVs, minimum debt service coverage ratios, construction loan monitoring procedures, appraisal requirements, pre-leasing requirements (as applicable), sensitivity and pro-forma analysis requirements and interest rate sensitivity. The Bancorp requires a valuation of real estate collateral, which may include third-party appraisals, be performed at the time of origination and renewal in accordance with regulatory requirements and on an as needed basis when market conditions justify. Although the Bancorp does not back test these collateral value assumptions, the Bancorp maintains an appraisal review department to order and review third-party appraisals in accordance with regulatory requirements. Collateral values on criticized assets with relationships exceeding $1 million are reviewed quarterly to assess the appropriateness of the value ascribed in the assessment of charge-offs and specific reserves. In addition, the Bancorp applies incremental valuation adjustments to older appraisals that relate to collateral dependent loans, which can currently be up to 20-30% of the appraised value based on the type of collateral. These incremental valuation adjustments generally reflect the age of the most recent appraisal as well as collateral type. Trends in collateral values, such as home price indices and recent asset dispositions, are monitored in order to determine whether changes to the appraisal adjustments are warranted. Other factors such as local market conditions or location may also be considered as necessary.

The Bancorp assesses all real estate and non-real estate collateral securing a loan and considers all cross-collateralized loans in the calculation of the LTV ratio. The following tables provide detail on the most recent LTV ratios for commercial mortgage loans greater than $1 million, excluding impaired commercial mortgage loans individually evaluated. The Bancorp does not typically aggregate the LTV ratios for commercial mortgage loans less than $1 million.

TABLE 31: Commercial Mortgage Loans Outstanding by LTV, Loans Greater Than $1 Million
As of March 31, 2016 ($ in millions)	LTV > 100%		LTV 80-100%		LTV < 80%
Commercial mortgage owner-occupied loans	$	116		256		1,989
Commercial mortgage nonowner-occupied loans		118		188		2,136
Total	$	234		444		4,125
TABLE 32: Commercial Mortgage Loans Outstanding by LTV, Loans Greater Than $1 Million
As of December 31, 2015 ($ in millions)	LTV > 100%		LTV 80-100%		LTV < 80%
Commercial mortgage owner-occupied loans	$	119		216		2,063
Commercial mortgage nonowner-occupied loans		120		194		2,032
Total	$	239		410		4,095

30

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The following table provides detail on commercial loans and leases by industry classification (as defined by the North American Industry Classification System), by loan size and by state, illustrating the diversity and granularity of the Bancorp’s commercial loans and leases as of:

TABLE 33: Commercial Loan and Lease Portfolio (excluding loans held for sale)
	March 31, 2016						December 31, 2015
($ in millions)	Outstanding		Exposure		Nonaccrual		Outstanding		Exposure		Nonaccrual
By Industry:
Manufacturing	$	11,192		20,904		92		10,572		20,422		70
Real estate		6,728		10,638		45		6,494		10,293		40
Financial services and insurance		5,782		12,499		3		5,896		13,021		3
Healthcare		4,710		6,808		32		4,676		6,879		22
Business services		4,584		7,002		74		4,471		6,765		96
Wholesale trade		4,091		7,321		17		4,082		7,254		23
Retail trade		3,874		7,414		6		3,764		7,391		8
Transportation and warehousing		3,230		4,661		1		3,111		4,619		1
Communication and information		3,110		5,350		1		2,913		5,052		2
Accommodation and food		2,632		4,205		5		2,507		4,104		6
Construction		1,858		3,403		6		1,871		3,403		8
Mining		1,481		2,496		239		1,499		2,695		36
Entertainment and recreation		1,395		2,311		4		1,210		2,066		4
Utilities		1,246		2,786		-		1,217		2,854		-
Other services		825		1,074		7		864		1,188		10
Public administration		474		517		-		495		562		-
Agribusiness		355		502		4		368		527		4
Individuals		111		155		2		139		187		2
Other		3		7		5		7		6		6
Total	$	57,681		100,053		543		56,156		99,288		341
By Loan Size:
Less than $200,000		1 %		1		4		1		1		7
$200,000 - $1 million		3		3		6		4		3		10
$1 million - $5 million		10		8		17		10		8		25
$5 million - $10 million		7		6		19		8		7		25
$10 million - $25 million		23		21		30		24		21		15
Greater than $25 million		56		61		24		53		60		18
Total		100 %		100		100		100		100		100
By State:
Ohio		15 %		17		5		16		17		8
Michigan		8		7		7		8		7		9
Florida		8		7		5		8		7		12
Illinois		8		7		10		7		8		20
Indiana		5		5		4		5		5		4
North Carolina		4		4		1		4		4		1
Tennessee		3		3		-		3		3		-
Kentucky		3		3		-		3		3		1
Pennsylvania		3		3		5		3		3		2
All other states		43		44		63		43		43		43
Total		100 %		100		100		100		100		100

The Bancorp’s non-power producing energy and nonowner-occupied commercial real estate portfolios have been identified by the Bancorp as loans which it believes represent a higher level of risk compared to the rest of the Bancorp’s commercial loan portfolio, due to economic or market conditions within the Bancorp’s key lending areas.

Due to the sensitivity of the non-power producing energy portfolio to downward movements in oil prices, the Bancorp has seen migration in the portfolio into criticized classifications during 2015 and the three months ended March 31, 2016. The reserve-based energy loans that the Bancorp holds are senior secured loans with a borrowing base that is re-determined on a semi-annual basis.

31

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The following tables provide an analysis of the non-power producing energy loan portfolio:

TABLE 34: Non-Power Producing Energy Portfolio
													For the three months ended March 31, 2016
As of March 31, 2016 ($ in millions)	Pass		Criticized		Outstanding		Exposure		90 Days Past Due		Nonaccrual		Net Charge-Offs
Reserve-based lending	$	197		542		739		1,183		-		144		-
Midstream		327		-		327		1,050		-		-		-
Oil field services		164		104		268		437		-		24		9
Oil and gas		76		52		128		512		-		22		-
Refining		102		1		103		655		-		-		-
Total	$	866		699		1,565		3,837		-		190		9
TABLE 35: Non-Power Producing Energy Portfolio
													For the three months ended March 31, 2015
As of March 31, 2015 ($ in millions)	Pass		Criticized		Outstanding		Exposure		90 Days Past Due		Nonaccrual		Net Charge-Offs
Reserve-based lending	$	774		119		893		1,586		-		-		-
Midstream		267		12		279		1,028		-		-		-
Oil field services		354		28		382		578		-		-		-
Oil and gas		101		6		107		489		-		-		-
Refining		47		-		47		406		-		-		-
Total	$	1,543		165		1,708		4,087		-		-		-

The following tables provide an analysis of nonowner-occupied commercial real estate loans (excluding loans held for sale):

TABLE 36: Nonowner-Occupied Commercial Real Estate(a)
									For the three months ended March 31, 2016
As of March 31, 2016 ($ in millions)	Outstanding		Exposure		90 Days     Past Due		Nonaccrual		Net Charge-Offs
By State:
Ohio	$	1,252		1,618		-		5		-
Florida		759		1,060		-		7		-
Illinois		674		1,108		-		1		-
Michigan		612		720		-		18		-
North Carolina		408		689		-		3		-
Indiana		241		446		-		-		-
All other states		2,560		4,441		-		3		-
Total	$	6,506		10,082		-		37		-
(a)    Included in commercial mortgage loans and commercial construction loans in the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A.
TABLE 37: Nonowner-Occupied Commercial Real Estate(a)
									For the three months ended March 31, 2015
As of March 31, 2015 ($ in millions)	Outstanding		Exposure		90 Days     Past Due		Nonaccrual		Net Recoveries
By State:
Ohio	$	1,321		1,668		-		6		(1)
Florida		567		896		-		15		-
Illinois		522		976		-		6		-
Michigan		690		745		-		7		-
North Carolina		374		533		-		-		-
Indiana		277		377		-		-		-
All other states		1,834		3,429		-		19		(1)
Total	$	5,585		8,624		-		53		(2)

(a) Included in commercial mortgage loans and commercial construction loans in the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A.

32

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Consumer Portfolio

Consumer credit risk management utilizes a framework that encompasses consistent processes for identifying, assessing, managing, monitoring, and reporting credit risk. These processes are supported by a credit risk governance structure that includes Board oversight, policies, risk limits, and risk committees.

The Bancorp’s consumer portfolio is materially comprised of three categories of loans: residential mortgage loans, home equity and automobile loans. The Bancorp has identified certain categories within these three categories of loans which it believes represent a higher level of risk compared to the rest of the consumer loan portfolio due to high loan amount to collateral value. The Bancorp does not update LTV ratios for the consumer portfolio subsequent to origination except as part of the charge-off process for real estate secured loans. Among consumer portfolios, legacy underwritten residential mortgage and brokered home equity portfolios have exhibited the most stress. As of March 31, 2016, consumer real estate loans originated from 2005 through 2008 represent approximately 20% of the consumer real estate portfolio. These loans account for 57% of total consumer real estate secured losses for the first quarter of 2016. Loss rates continue to improve as newer vintages are performing within expectations.

Residential Mortgage Portfolio

The Bancorp manages credit risk in the residential mortgage portfolio through conservative underwriting and documentation standards and geographic and product diversification. The Bancorp may also package and sell loans in the portfolio.

The Bancorp does not originate mortgage loans that permit customers to defer principal payments or make payments that are less than the accruing interest. The Bancorp originates both fixed-rate and ARM loans. Resets of rates on ARMs are not expected to have a material impact on credit costs in the current interest rate environment, as approximately $837 million of ARM loans will have rate resets during the next twelve months. Of these resets, 89% are expected to experience an increase in rate, with an average increase of approximately one third of a percent.

Certain residential mortgage products have contractual features that may increase credit exposure to the Bancorp in the event of a decline in housing values. These types of mortgage products offered by the Bancorp include loans with high LTV ratios, multiple loans on the same collateral that when combined result in a LTV greater than 80% and interest-only loans. The Bancorp has deemed residential mortgage loans with greater than 80% LTV ratios and no mortgage insurance as loans that represent a higher level of risk.

The following table provides an analysis of the residential mortgage portfolio loans outstanding by LTV at origination as of:

TABLE 38: Residential Mortgage Portfolio Loans by LTV at Origination
		March 31, 2016					December 31, 2015
($ in millions)		Outstanding		Weighted- Average LTV			Outstanding		Weighted- Average LTV
LTV £ 80%	$		10,384		65.7 %	$		10,198		65.6 %
LTV > 80%, with mortgage insurance			1,327		93.4			1,300		93.3
LTV > 80%, no mortgage insurance			2,184		95.9			2,218		96.0
Total	$		13,895		73.3 %	$		13,716		73.4 %

The following tables provide an analysis of the residential mortgage portfolio loans outstanding with a greater than 80% LTV ratio and no mortgage insurance:

TABLE 39: Residential Mortgage Portfolio Loans, LTV Greater than 80%, No Mortgage Insurance
							For the three months ended March 31, 2016
As of March 31, 2016 ($ in millions)	Outstanding		90 Days   Past Due		Nonaccrual		Net Charge-offs
By State:
Ohio	$	532		1		4		1
Illinois		380		1		1		-
Florida		291		-		4		-
Michigan		282		1		1		-
Indiana		145		1		1		-
North Carolina		107		-		1		-
Kentucky		85		1		-		-
All other states		362		-		1		-
Total	$	2,184		5		13		1

33

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

TABLE 40: Residential Mortgage Portfolio Loans, LTV Greater than 80%, No Mortgage Insurance
							For the three months ended     March 31, 2015
As of March 31, 2015 ($ in millions)	Outstanding		90 Days     Past Due		Nonaccrual		Net Charge-offs
By State:
Ohio	$	503		2		15		2
Illinois		299		-		1		-
Florida		250		-		4		-
Michigan		269		1		2		-
Indiana		127		1		2		-
North Carolina		101		1		1		-
Kentucky		76		-		1		-
All other states		353		1		2		-
Total	$	1,978		6		28		2

Home Equity Portfolio

The Bancorp’s home equity portfolio is primarily comprised of home equity lines of credit. Beginning in the first quarter of 2013, the Bancorp’s newly originated home equity lines of credit have a 10-year interest-only draw period followed by a 20-year amortization period. The home equity line of credit previously offered by the Bancorp was a revolving facility with a 20-year term, minimum payments of interest-only and a balloon payment of principal at maturity.

The ALLL provides coverage for probable and estimable losses in the home equity portfolio. The allowance attributable to the portion of the home equity portfolio that has not been restructured in a TDR is calculated on a pooled basis with senior lien and junior lien categories segmented in the determination of the probable credit losses in the home equity portfolio. The modeled loss factor for the home equity portfolio is based on the trailing twelve month historical loss rate for each category, as adjusted for certain prescriptive loss rate factors and certain qualitative adjustment factors to reflect risks associated with current conditions and trends. The prescriptive loss rate factors include adjustments for delinquency trends, LTV trends and refreshed FICO score trends. The qualitative factors include adjustments for credit administration and portfolio management, credit policy and underwriting and the national and local economy. The Bancorp considers home price index trends when determining the national and local economy qualitative factor.

The home equity portfolio is managed in two primary groups: loans outstanding with a combined LTV greater than 80% and those loans with a LTV 80% or less based upon appraisals at origination. The carrying value of the greater than 80% LTV home equity loans and 80% or less LTV home equity loans were $2.6 billion and $5.5 billion, respectively, as of March 31, 2016. Of the total $8.1 billion of outstanding home equity loans:

● 85% reside within the Bancorp’s Midwest footprint of Ohio, Michigan, Kentucky, Indiana and Illinois as of March 31, 2016;

● 36% are in senior lien positions and 64% are in junior lien positions at March 31, 2016;

● Over 81% of non-delinquent borrowers made at least one payment greater than the minimum payment during the three months ended March 31, 2016; and

● The portfolio had an average refreshed FICO score of 742 at both March 31, 2016 and December 31, 2015.

The Bancorp actively manages lines of credit and makes reductions in lending limits when it believes it is necessary based on FICO score deterioration and property devaluation. The Bancorp does not routinely obtain appraisals on performing loans to update LTV ratios after origination. However, the Bancorp monitors the local housing markets by reviewing various home price indices and incorporates the impact of the changing market conditions in its ongoing credit monitoring processes. For junior lien home equity loans which become 60 days or more past due, the Bancorp tracks the performance of the senior lien loans in which the Bancorp is the servicer and utilizes consumer credit bureau attributes to monitor the status of the senior lien loans that the Bancorp does not service. If the senior lien loan is found to be 120 days or more past due, the junior lien home equity loan is placed on nonaccrual status unless both loans are well-secured and in the process of collection. Additionally, if the junior lien home equity loan becomes 120 days or more past due and the senior lien loan is also 120 days or more past due, the junior lien home equity loan is assessed for charge-off. Refer to the Analysis of Nonperforming Assets subsection of the Risk Management section of MD&A for more information.

34

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The following table provides an analysis of home equity portfolio loans outstanding disaggregated based upon refreshed FICO score as of:

TABLE 41: Home Equity Portfolio Loans Outstanding by Refreshed FICO Score
			March 31, 2016					December 31, 2015
($ in millions)		Outstanding		% of Total			Outstanding		% of Total
Senior Liens:
FICO £ 620	$		156		2 %	$		159		2 %
FICO 621-719			559		7			563		7
FICO ³ 720			2,171		27			2,210		26
Total senior liens			2,886		36			2,932		35
Junior Liens:
FICO £ 620			386		5			389		5
FICO 621-719			1,363		17			1,399		17
FICO ³ 720			3,477		42			3,581		43
Total junior liens			5,226		64			5,369		65
Total	$		8,112		100 %	$		8,301		100 %

The Bancorp believes that home equity loans with a greater than 80% combined LTV ratio present a higher level of risk. The following table provides an analysis of the home equity loans outstanding in a senior and junior lien position by LTV at origination:

TABLE 42: Home Equity Portfolio Loans Outstanding by LTV at Origination
		March 31, 2016					December 31, 2015
($ in millions)		Outstanding		Weighted-     Average LTV			Outstanding		Weighted-     Average LTV
Senior Liens:
LTV £ 80%	$		2,518		55.2 %	$		2,557		55.1 %
LTV > 80%			368		89.1			375		89.1
Total senior liens			2,886		59.7			2,932		59.7
Junior Liens:
LTV £ 80%			3,017		67.6			3,088		67.6
LTV > 80%			2,209		90.9			2,281		90.9
Total junior liens			5,226		79.1			5,369		79.2
Total	$		8,112		71.7 %	$		8,301		71.8 %

The following tables provide an analysis of home equity portfolio loans by state with combined LTV greater than 80%:

TABLE 43: Home Equity Portfolio Loans Outstanding with a LTV Greater than 80%
									For the three months ended March 31, 2016
As of March 31, 2016 ($ in millions)	Outstanding		Exposure		90 Days     Past Due		Nonaccrual		Net Charge-offs
By State:
Ohio	$	1,065		1,827		-		10		2
Michigan		498		750		-		5		-
Illinois		295		445		-		4		1
Indiana		211		340		-		3		-
Kentucky		200		334		-		2		-
Florida		91		126		-		2		-
All other states		217		303		-		4		1
Total	$	2,577		4,125		-		30		4

35

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

TABLE 44: Home Equity Portfolio Loans Outstanding with a LTV Greater than 80%
									For the three months ended     March 31, 2015
As of March 31, 2015 ($ in millions)	Outstanding		Exposure		90 Days       Past Due		Nonaccrual		Net Charge-offs
By State:
Ohio	$	1,104		1,829		-		9		2
Michigan		590		859		-		7		1
Illinois		335		497		-		5		2
Indiana		248		392		-		4		1
Kentucky		235		379		-		2		1
Florida		104		140		-		3		-
All other states		263		364		-		5		1
Total	$	2,879		4,460		-		35		8

Automobile Portfolio

The automobile portfolio is characterized by direct and indirect lending products to consumers. As of March 31, 2016, 49% of the automobile loan portfolio is comprised of loans collateralized by new automobiles. It is a common industry practice to advance on automobile loans an amount in excess of the automobile value due to the inclusion of taxes, title and other fees paid at closing. The Bancorp monitors its exposure to these higher risk loans.

The following table provides an analysis of automobile portfolio loans outstanding by LTV at origination as of:

TABLE 45: Automobile Portfolio Loans Outstanding by LTV at Origination
	March 31, 2016		December 31, 2015
($ in millions)	Outstanding	Weighted-         Average LTV	Outstanding	Weighted-                 Average  LTV
LTV £ 100%	$            7,501	81.8 %	$           7,740	81.7 %
LTV > 100%	3,627	111.3	3,753	111.3
Total	$          11,128	91.8 %	$         11,493	91.7 %

The following table provides an analysis of the Bancorp’s automobile portfolio loans with a LTV at origination greater than 100%:

TABLE 46: Automobile Portfolio Loans Outstanding with a LTV Greater than 100%
As of ($ in millions)	Outstanding		90 Days Past Due and Accruing		Nonaccrual		Net Charge-offs for the Three Months Ended
March 31, 2016	$	3,627		4		2		6
March 31, 2015		3,788		4		1		5

European Exposure

The Bancorp has no direct sovereign exposure to any European nation as of March 31, 2016. In providing services to our customers, the Bancorp routinely enters into financial transactions with foreign domiciled and U.S. subsidiaries of foreign businesses as well as foreign financial institutions. These financial transactions are in the form of loans, loan commitments, letters of credit, derivatives, guarantees, bankers acceptances and securities. The Bancorp’s risk appetite for foreign country exposure is managed by having established country exposure limits. The Bancorp’s total exposure to European domiciled or owned businesses and European financial institutions was $3.6 billion and funded exposure was $1.9 billion as of March 31, 2016. Additionally, the Bancorp was within its established country exposure limits for all European countries.

The following table provides detail about the Bancorp’s exposure to all European domiciled and owned businesses and European financial institutions as of March 31, 2016:

TABLE 47: European Exposure
		Sovereigns				Financial Institutions				Non-Financial Institutions				Total
($ in millions)		Total Exposure(a)		Funded Exposure		Total Exposure(a)		Funded   Exposure		Total Exposure(a)		Funded Exposure		Total     Exposure(a)		Funded     Exposure
Peripheral Europe(b)	$		-		-		182		179		128		73		310		252
Other Eurozone(c)			-		-		374		157		1,795		951		2,169		1,108
Total Eurozone	$		-		-		556		336		1,923		1,024		2,479		1,360
Other Europe(d)			-		-		135		84		973		483		1,108		567
Total Europe	$		-		-		691		420		2,896		1,507		3,587		1,927

(a) Total exposure includes funded exposure and unfunded commitments.

(b) Peripheral Europe includes Greece, Ireland, Italy, Portugal and Spain.

(c) Eurozone includes countries participating in the European common currency (Euro).

(d) Other Europe includes European countries not part of the Eurozone (primarily the United Kingdom and Switzerland).

36

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

HAMP and HARP Programs

For residential mortgage loans serviced for FHLMC and FNMA, the Bancorp participates in the HAMP and HARP 2.0 programs. For loans refinanced under the HARP 2.0 program, the Bancorp strictly adheres to the underwriting requirements of the program. Loan restructuring under the HAMP program is performed on behalf of FHLMC or FNMA and the Bancorp does not take possession of these loans during the modification process. Therefore, participation in these programs does not significantly impact the Bancorp’s credit quality statistics. The Bancorp participates in trial modifications in conjunction with the HAMP program for loans it services for FHLMC and FNMA. As these trial modifications relate to loans serviced for others, they are not included in the Bancorp’s TDRs as they are not assets of the Bancorp. In the event there is a representation and warranty violation on loans sold through the programs, the Bancorp may be required to repurchase the sold loans. As of March 31, 2016, repurchased loans restructured or refinanced under these programs were immaterial to the Bancorp’s Condensed Consolidated Financial Statements. Additionally, as of March 31, 2016 and December 31, 2015, $15 million and $14 million, respectively, of loans refinanced under HARP 2.0 were included in loans held for sale in the Condensed Consolidated Balance Sheets. For the three months ended March 31, 2016 and 2015, the Bancorp recognized $1 million and $2 million, respectively, of noninterest income in mortgage banking net revenue in the Condensed Consolidated Statements of Income related to the sale of loans restructured or refinanced under the HAMP and HARP 2.0 programs.

Analysis of Nonperforming Assets

Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. A summary of nonperforming assets is included in Table 48. Refer to the nonaccrual loan and lease section of Note 1 in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015 for further information on the Bancorp’s policies related to accounting for delinquent and nonperforming loans and leases.

Nonperforming assets were $830 million at March 31, 2016 compared to $659 million at December 31, 2015. At March 31, 2016, $5 million of nonaccrual loans were held for sale, compared to $12 million at December 31, 2015.

Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO were 0.88% as of March 31, 2016 compared to 0.70% as of December 31, 2015. Nonaccrual loans and leases secured by real estate were 30% of nonaccrual loans and leases as of March 31, 2016 compared to 43% as of December 31, 2015.

Commercial portfolio nonaccrual loans and leases were $543 million at March 31, 2016, an increase of $202 million from December 31, 2015 primarily due to a $168 million increase associated with the reserve-based lending energy portfolio and the impact of low oil prices.

Consumer portfolio nonaccrual loans and leases were $158 million at March 31, 2016, a decrease of $7 million from December 31, 2015. Geographical market conditions continue to be a large driver of nonaccrual activity as Florida properties represent approximately 11% of residential mortgage loans, but represent 28% of nonaccrual loans at March 31, 2016. Refer to Table 49 for a rollforward of the nonaccrual loans and leases.

OREO and other repossessed property was $124 million at March 31, 2016 and $141 million at December 31, 2015. The Bancorp recognized $3 million and $8 million in losses on the sale or write-down of OREO properties for the three months ended March 31, 2016 and 2015, respectively. The decrease from the first quarter of 2015 was primarily due to a modest improvement in general economic conditions.

For the three months ended March 31, 2016 and 2015, approximately $11 million and $8 million, respectively, of interest income would have been recognized if the nonaccrual and renegotiated loans and leases on nonaccrual status had been current in accordance with their original terms. Although these values help demonstrate the costs of carrying nonaccrual credits, the Bancorp does not expect to recover the full amount of interest as nonaccrual loans and leases are generally carried below their principal balance.

37

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

TABLE 48: Summary of Nonperforming Assets and Delinquent Loans
As of ($ in millions)		March 31, 2016	December 31, 2015
Nonaccrual portfolio loans and leases:
Commercial and industrial loans	$	278	82
Commercial mortgage loans		51	56
Commercial leases		4	-
Residential mortgage loans		25	28
Home equity		61	62
Nonaccrual portfolio restructured loans and leases:
Commercial and industrial loans		182	177
Commercial mortgage loans(c)		27	25
Commercial leases		1	1
Residential mortgage loans		19	23
Home equity		19	17
Automobile loans		2	2
Credit card		32	33
Total nonaccrual portfolio loans and leases(b)		701	506
OREO and other repossessed property		124	141
Total nonperforming portfolio assets		825	647
Nonaccrual loans held for sale		3	1
Nonaccrual restructured loans held for sale		2	11
Total nonperforming assets	$	830	659
Loans and leases 90 days past due and accruing
Commercial and industrial loans	$	3	7
Residential mortgage loans(a)		44	40
Automobile loans		8	10
Credit card		18	18
Total loans and leases 90 days past due and accruing	$	73	75
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO		0.88    %	0.70
ALLL as a percent of nonperforming portfolio assets		157	197

(a) Information for all periods presented excludes loans whose repayments are insured by the FHA or guaranteed by the VA. These loans were $315 as of March 31, 2016 and $335 as of December 31, 2015. The Bancorp recognized $2 on these insured or guaranteed loans for both the three months ended March 31, 2016 and March 31, 2015.

(b) Includes $5 and $6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2016 and December 31, 2015, respectively, and $1 and $2 of restructured nonaccrual government insured commercial loans at March 31, 2016 and December 31, 2015, respectively.

(c) Excludes $20 of restructured nonaccrual loans at both March 31, 2016 and December 31, 2015, associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party.

The following table provides a rollforward of portfolio nonperforming loans and leases, by portfolio segment:

TABLE 49: Rollforward of Portfolio Nonaccrual Loans and Leases
For the three months ended March 31, 2016 ($ in millions)		Commercial	Residential   Mortgage		Consumer		Total
Balance, beginning of period	$	341		51		114		506
Transfers to nonaccrual status		306		13		42		361
Transfers to accrual status		(3)		(15)		(18)		(36)
Transfers to held for sale		(3)		-		-		(3)
Loans sold from portfolio		(6)		-		-		(6)
Loan paydowns/payoffs		(39)		(1)		(8)		(48)
Transfers to OREO		(1)		(3)		(3)		(7)
Charge-offs		(60)		(1)		(13)		(74)
Draws/other extensions of credit		8		-		-		8
Balance, end of period	$	543		44		114		701
For the three months ended March 31, 2015 ($ in millions)
Balance, beginning of period	$	367		77		135		579
Transfers to nonaccrual status		80		19		35		134
Transfers to accrual status		(1)		(8)		(15)		(24)
Transfers from held for sale		-		5		-		5
Loans sold from portfolio		(5)		-		-		(5)
Loan paydowns/payoffs		(62)		(3)		(5)		(70)
Transfers to OREO		(9)		(12)		(5)		(26)
Charge-offs		(45)		(7)		(15)		(67)
Balance, end of period	$	325		71		130		526

38

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Troubled Debt Restructurings

If a borrower is experiencing financial difficulty, the Bancorp may consider, in certain circumstances, modifying the terms of their loan to maximize collection of amounts due. Typically, these modifications reduce the loan interest rate, extend the loan term, reduce the accrued interest or in limited circumstances, reduce the principal balance of the loan. These modifications are classified as TDRs.

At the time of modification, the Bancorp maintains certain consumer loan TDRs (including residential mortgage loans, home equity loans, and other consumer loans) on accrual status, provided there is reasonable assurance of repayment and performance according to the modified terms based upon a current, well-documented credit evaluation. Commercial loans modified as part of a TDR are maintained on accrual status provided there is a sustained payment history of six months or greater prior to the modification in accordance with the modified terms and all remaining contractual payments under the modified terms are reasonably assured of collection. TDRs of commercial loans and credit card loans that do not have a sustained payment history of six months or greater in accordance with the modified terms remain on nonaccrual status until a six-month payment history is sustained.

Consumer restructured loans on accrual status totaled $998 million and $979 million at March 31, 2016 and December 31, 2015, respectively. As of March 31, 2016, the percent of restructured residential mortgage loans, home equity loans and credit card loans that are past due 30 days or more from their modified terms were 27%, 10% and 28%, respectively.

The following tables summarize TDRs by loan type and delinquency status:

TABLE 50: Accruing and Nonaccruing Portfolio TDRs
		Accruing
As of March 31, 2016 ($ in millions)		Current		30-89 Days   Past Due		90 Days or   More Past Due		Nonaccruing		Total
Commercial loans(b)(c)	$		458		3		-		210		671
Residential mortgage loans(a)			475		53		108		19		655
Home equity			302		16		-		19		337
Automobile loans			18		-		-		2		20
Credit card			23		3		-		32		58
Total	$		1,276		75		108		282		1,741

(a) Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of March 31, 2016, these advances represented $238 of current loans, $40 of 30-89 days past due loans and $94 of 90 days or more past due loans.

(b) As of March 31, 2016, excludes $7 of restructured accruing loans and $20 of restructured nonaccrual loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party.

(c) Excludes restructured nonaccrual loans held for sale.

TABLE 51: Accruing and Nonaccruing Portfolio TDRs
		Accruing
As of December 31, 2015 ($ in millions)		Current		30-89 Days   Past Due		90 Days or   More Past Due		Nonaccruing		Total
Commercial loans(b)(c)	$		487		4		-		203		694
Residential mortgage loans(a)			443		54		110		23		630
Home equity			307		20		-		17		344
Automobile loans			17		-		-		2		19
Credit card			24		4		-		33		61
Total	$		1,278		82		110		278		1,748

(a) Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2015, these advances represented $202 of current loans, $42 of 30-89 days past due loans and $99 of 90 days or more past due loans.

(b) As of December 31, 2015, excludes $7 of restructured accruing loans and $20 of restructured nonaccrual loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party.

(c) Excludes restructured nonaccrual loans held for sale.

Analysis of Net Loan Charge-offs

Net charge-offs were 42 bps and 41 bps of average portfolio loans and leases for the three months ended March 31, 2016 and 2015, respectively. Table 52 provides a summary of credit loss experience and net charge-offs as a percent of average portfolio loans and leases outstanding by loan category.

The ratio of commercial loan and lease net charge-offs to average portfolio commercial loans and leases increased to 38 bps during the three months ended March 31, 2016 compared to 29 bps during the three months ended March 31, 2015 primarily as a result of a $9 million charge-off in the energy portfolio related to oil field services loans, included in net charge-offs on commercial and industrial loans, and a $5 million increase in net charge-offs on commercial mortgage loans.

The ratio of consumer loan and lease net charge-offs to average portfolio consumer loans and leases decreased to 48 bps during the three months ended March 31, 2016 compared to 59 bps during the three months ended March 31, 2015. Residential mortgage loan net charge-offs, which typically involve partial charge-offs based upon appraised values of underlying collateral, decreased $4 million for the three months ended March 31, 2016 compared to the same period from the prior year as a result of improvements in delinquencies and loss severities. The Bancorp expects the residential mortgage portfolio to be stable as it continues to retain high quality residential mortgage loans.

39

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Home equity net charge-offs decreased $6 million compared to the three months ended March 31, 2015, primarily due to improvements in loss severities. Management actively manages lines of credit and makes reductions in lending limits when it believes it is necessary based on FICO score deterioration or property devaluation.

Automobile loans, credit card and other consumer loan net charge-offs remained relatively flat compared to the same period in the prior year. The Bancorp utilizes a risk-adjusted pricing methodology to ensure adequate compensation is received for those products that have higher credit costs.

TABLE 52: Summary of Credit Loss Experience
		For the three months ended March 31,
($ in millions)		2016			2015
Losses charged-off:
Commercial and industrial loans	$		(50	)		(43)
Commercial mortgage loans			(8	)		(5)
Commercial leases			(2	)		-
Residential mortgage loans			(4	)		(9)
Home equity			(11	)		(17)
Automobile loans			(14	)		(13)
Credit card			(23	)		(24)
Other consumer loans and leases			(4	)		(4)
Total losses charged-off	$		(116	)		(115)
Recoveries of losses previously charged-off:
Commercial and industrial loans			4			5
Commercial mortgage loans			2			4
Residential mortgage loans			2			3
Home equity			3			3
Automobile loans			5			5
Credit card			3			3
Other consumer loans and leases			1			1
Total recoveries of losses previously charged-off	$		20			24
Net losses charged-off:
Commercial and industrial loans			(46	)		(38)
Commercial mortgage loans			(6	)		(1)
Commercial leases			(2	)		-
Residential mortgage loans			(2	)		(6)
Home equity			(8	)		(14)
Automobile loans			(9	)		(8)
Credit card			(20	)		(21)
Other consumer loans and leases			(3	)		(3)
Total net losses charged-off	$		(96	)		(91)
Net losses charged-off as a percent of average portfolio loans and leases:
Commercial and industrial loans			0.43	%		0.38
Commercial mortgage loans			0.35			0.05
Commercial leases			0.20			-
Total commercial loans and leases			0.38	%		0.29
Residential mortgage loans			0.07			0.19
Home equity			0.36			0.61
Automobile loans			0.32			0.28
Credit card			3.73			3.60
Other consumer loans and leases			2.28			4.02
Total consumer loans and leases			0.48	%		0.59
Total net losses charged-off as a percent of average portfolio loans and leases			0.42	%		0.41

Allowance for Credit Losses

The allowance for credit losses is comprised of the ALLL and the reserve for unfunded commitments. The ALLL provides coverage for probable and estimable losses in the loan and lease portfolio. The Bancorp evaluates the ALLL each quarter to determine its adequacy to cover inherent losses. Several factors are taken into consideration in the determination of the overall ALLL, including an unallocated component. These factors include, but are not limited to, the overall risk profile of the loan and lease portfolios, net charge-off experience, the extent of impaired loans and leases, the level of nonaccrual loans and leases, the level of 90 days past due loans and leases and the overall level of the ALLL as a percent of portfolio loans and leases. The Bancorp also considers overall asset quality trends, credit administration and portfolio management practices, risk identification practices, credit policy and underwriting practices, overall portfolio growth, portfolio concentrations and current national and local economic conditions that might impact the portfolio. More information on the ALLL can be found in the Critical Accounting Policies section of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015.

40

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

During the three months ended March 31, 2016, the Bancorp did not substantively change any material aspect of its overall approach in the determination of the ALLL and there have been no material changes in assumptions or estimation techniques as compared to prior periods that impacted the determination of the current period allowance. In addition to the ALLL, the Bancorp maintains a reserve for unfunded commitments recorded in other liabilities in the Condensed Consolidated Balance Sheets. The methodology used to determine the adequacy of this reserve is similar to the Bancorp’s methodology for determining the ALLL. The provision for unfunded commitments is included in other noninterest expense in the Condensed Consolidated Statements of Income.

The ALLL attributable to the portion of the residential mortgage and consumer loan and lease portfolio that has not been restructured is determined on a pooled basis with the segmentation based on the similarity of credit risk characteristics. Loss factors for real estate backed consumer loans are developed for each pool based on the trailing twelve month historical loss rate, as adjusted for certain prescriptive loss rate factors and certain qualitative adjustment factors. The prescriptive loss rate factors and qualitative adjustments are designed to reflect risks associated with current conditions and trends which are not believed to be fully reflected in the trailing twelve month historical loss rate. For real estate backed consumer loans, the prescriptive loss rate factors include adjustments for delinquency trends, LTV trends, refreshed FICO score trends and product mix, and the qualitative factors include adjustments for credit administration and portfolio management practices, credit policy and underwriting practices and the national and local economy. The Bancorp considers home price index trends in its footprint when determining the national and local economy qualitative factor. The Bancorp also considers the volatility of collateral valuation trends when determining the unallocated component of the ALLL.

The Bancorp’s determination of the ALLL for commercial loans is sensitive to the risk grades it assigns to these loans. In the event that 10% of commercial loans in each risk category would experience a downgrade of one risk category, the allowance for commercial loans would increase by approximately $161 million at March 31, 2016. In addition, the Bancorp’s determination of the ALLL for residential mortgage and consumer loans is sensitive to changes in estimated loss rates. In the event that estimated loss rates would increase by 10%, the ALLL for residential mortgage and consumer loans would increase by approximately $31 million at March 31, 2016. As several qualitative and quantitative factors are considered in determining the ALLL, these sensitivity analyses do not necessarily reflect the nature and extent of future changes in the ALLL. They are intended to provide insights into the impact of adverse changes to risk grades and estimated loss rates and do not imply any expectation of future deterioration in the risk ratings or loss rates. Given current processes employed by the Bancorp, management believes the risk grades and estimated loss rates currently assigned are appropriate.

TABLE 53: Changes in Allowance for Credit Losses

		For the three months ended March 31,
($ in millions)		2016		2015
ALLL:
Balance, beginning of period	$		1,272		1,322
Losses charged-off			(116)		(115)
Recoveries of losses previously charged-off			20		24
Provision for loan and lease losses			119		69
Balance, end of period	$		1,295		1,300
Reserve for unfunded commitments:
Balance, beginning of period	$		138		135
Provision for (benefit from) unfunded commitments			6		(4)
Charge-offs			-		(1)
Balance, end of period	$		144		130

Certain inherent but unconfirmed losses are probable within the loan and lease portfolio. The Bancorp’s current methodology for determining the level of losses is based on historical loss rates, current credit grades, specific allocation on impaired commercial credits above specified thresholds and restructured loans and other qualitative adjustments. Due to the heavy reliance on realized historical losses and the credit grade rating process, the model-derived estimate of ALLL tends to slightly lag behind the deterioration in the portfolio in a stable or deteriorating credit environment, and tends not to be as responsive when improved conditions have presented themselves. Given these model limitations, the qualitative adjustment factors may be incremental or decremental to the quantitative model results.

An unallocated component of the ALLL is maintained to recognize the imprecision in estimating and measuring loss. The unallocated allowance as a percent of total portfolio loans and leases was 0.12% at both March 31, 2016 and December 31, 2015. The unallocated allowance was 9% of the total allowance at both March 31, 2016 and December 31, 2015.

As shown in Table 54, the ALLL as a percent of portfolio loans and leases was 1.38% at March 31, 2016 compared to 1.37% at December 31, 2015. The ALLL was $1.3 billion at both March 31, 2016 and December 31, 2015.

41

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

TABLE 54: Attribution of Allowance for Loan and Lease Losses to Portfolio Loans and Leases

As of ($ in millions)	March 31, 2016		December 31, 2015
Attributed ALLL:
Commercial and industrial loans	$	697		652
Commercial mortgage loans		106		117
Commercial construction loans		24		24
Commercial leases		40		47
Residential mortgage loans		98		100
Home equity		62		67
Automobile loans		41		40
Credit card		99		99
Other consumer loans and leases		12		11
Unallocated		116		115
Total ALLL	$	1,295		1,272
Portfolio loans and leases:
Commercial and industrial loans	$	43,433		42,131
Commercial mortgage loans		6,864		6,957
Commercial construction loans		3,428		3,214
Commercial leases		3,956		3,854
Residential mortgage loans		13,895		13,716
Home equity		8,112		8,301
Automobile loans		11,128		11,493
Credit card		2,138		2,259
Other consumer loans and leases		651		657
Total portfolio loans and leases	$	93,605		92,582
Attributed ALLL as a percent of respective portfolio loans and leases:
Commercial and industrial loans		1.60 %		1.55
Commercial mortgage loans		1.54		1.68
Commercial construction loans		0.70		0.75
Commercial leases		1.01		1.22
Residential mortgage loans		0.71		0.73
Home equity		0.76		0.81
Automobile loans		0.37		0.35
Credit card		4.63		4.38
Other consumer loans and leases		1.84		1.67
Unallocated (as a percent of total portfolio loans and leases)		0.12		0.12
Attributed ALLL as a percent of total portfolio loans and leases		1.38 %		1.37

MARKET RISK MANAGEMENT

Market risk arises from the potential for market fluctuations in interest rates, foreign exchange rates and equity prices that may result in potential reductions in net income. Interest rate risk, a component of market risk, is the exposure to adverse changes in net interest income or financial position due to changes in interest rates. Management considers interest rate risk a prominent market risk in terms of its potential impact on earnings. Interest rate risk can occur for any one or more of the following reasons:

        ●  Assets and liabilities may mature or reprice at different times;

        ●  Short-term and long-term market interest rates may change by different amounts; or

        ●  The expected maturity of various assets or liabilities may shorten or lengthen as interest rates change.

In addition to the direct impact of interest rate changes on net interest income, interest rates can indirectly impact earnings through their effect on loan demand, credit losses, mortgage originations, the value of servicing rights and other sources of the Bancorp’s earnings. Stability of the Bancorp’s net income is largely dependent upon the effective management of interest rate risk. Management continually reviews the Bancorp’s balance sheet composition and earnings flows and models the interest rate risk, and possible actions to reduce this risk, given numerous possible future interest rate scenarios.

Interest Rate Risk Management Oversight

The Bancorp ALCO, which includes senior management representatives and is accountable to the ERMC, monitors and manages interest rate risk within Board approved policy limits. In addition to the risk management activities of ALCO, the Bancorp has a Market Risk Management function as part of ERM that provides independent oversight of market risk activities.

Net Interest Income Sensitivity

The Bancorp employs a variety of measurement techniques to identify and manage its interest rate risk, including the use of an NII simulation model to analyze the sensitivity of net interest income to changes in interest rates. The model is based on contractual and assumed cash flows and repricing characteristics for all of the Bancorp’s assets, liabilities and off-balance sheet exposures and incorporates market-based assumptions regarding the effect of changing interest rates on the prepayment rates of certain assets and attrition rates of certain liabilities. The model also includes senior management’s projections of the future volume and pricing of each of the product lines offered by the Bancorp as well as other pertinent assumptions. Actual results may differ from simulated results due to timing, magnitude and frequency of interest rate changes as well as changes in market conditions and management strategies.

42

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The Bancorp’s interest rate risk exposure is evaluated by measuring the anticipated change in net interest income over 12-month and 24-month horizons assuming 100 bps and 200 bps parallel ramped increases and a 50 bps parallel rate decrease in interest rates. In accordance with policy, the 100 bps and 200 bps parallel ramped increase rate movements are assumed to occur over one year and are sustained thereafter. The 50 bps parallel rate decrease is an immediate change. The analysis would typically include 100 bps and 200 bps parallel ramped decreases in interest rates; however, this analysis is currently omitted due to the current low levels of certain interest rates. Applying the ramps would result in certain interest rates becoming negative in the parallel ramped decrease scenarios.

In this economic cycle, banks have experienced significant growth in deposit balances, particularly in noninterest-bearing demand deposits. The Bancorp, like other banks, is exposed to deposit balance run-off in a rising interest rate environment. In consideration of this risk, the Bancorp’s NII sensitivity modeling assumes that approximately $2.5 billion of noninterest-bearing demand deposit balances run-off for each 100 bps increase in short-term market interest rates. These lost noninterest-bearing demand deposit balances are modeled to flow into funding products that reprice in conjunction with market rate increases.

Another important deposit modeling assumption is the amount by which interest-bearing deposit rates will increase when market rates increase. This deposit repricing sensitivity is known as the beta, and it represents the expected amount by which the Bancorp deposit rates will increase for a given increase in short-term market rates. The Bancorp’s NII sensitivity modeling assumes a weighted-average interest-bearing deposit beta of approximately 69%, which is approximately 20 percentage points higher than the 50% beta that the Bancorp experienced in the last FRB tightening cycle from June 2004 to June 2006.

The Bancorp continually evaluates the sensitivity of its interest rate risk measures to these important deposit modeling assumptions. The Bancorp also evaluates the sensitivity of other important modeling assumptions, such as loan and security prepayments and early withdrawals on fixed-rate customer liabilities.

The following table shows the Bancorp’s estimated net interest income sensitivity profile and ALCO policy limits as of:

TABLE 55: Estimated NII Sensitivity Profile

	March 31, 2016												March 31, 2015
	% Change in NII (FTE)						ALCO Policy Limits						% Change in NII (FTE)				ALCO Policy Limits
Change in Interest Rates (bps)	12 Months			13-24 Months			12 Months			13-24 Months			12 Months		13-24 Months		12 Months			13-24     Months
+200		2.12	%		6.98			(4.00	)		(6.00	)		1.54		6.80		(4.00	)		(6.00)
+100		1.20			4.27			-			-			0.83		4.26		-			-
-50		(2.00	)		(2.67	)		-			-			NM		NM		-			-

At March 31, 2016, the Bancorp’s net interest income would benefit in both year one and year two under the parallel rate ramp increases. The Bancorp’s net interest income would decline in both year one and year two under the parallel 50 bps rate decrease. The net interest income sensitivity profile is attributable to the combination of floating-rate assets, including the predominantly floating-rate commercial loan portfolio, and certain intermediate-term fixed-rate liabilities. The changes in the sensitivity profile compared to March 31, 2015 are primarily attributable to runoff in the indirect auto loan portfolio, the impact of higher benchmark interest rates on commercial loans with floors, core deposit balance growth and fixed-rate debt issuances. These items were partially offset by investment portfolio growth and portfolio composition changes that reduced the amount of investable cash flow at higher rates.

Tables 56 and 57 provide information on the Bancorp’s estimated net interest income sensitivity profile given changes to balances or certain key assumptions.

43

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The following table shows the Bancorp’s estimated net interest income sensitivity profile with a $1 billion decrease and a $1 billion increase in demand deposit balances as of March 31, 2016:

TABLE 56: Estimated NII Sensitivity Assuming a $1 Billion Change in Demand Deposit Balances

	% Change in NII (FTE)
	$1 Billion Balance Decrease					$1 Billion Balance Increase
Change in Interest Rates (bps)	12  Months			13-24  Months		12  Months		13-24   Months
+200		1.84	%		6.43		2.40		7.54
+100		1.06			3.99		1.34		4.54

The following table shows the Bancorp’s estimated net interest income sensitivity profile with a 25% increase and a 25% decrease to the deposit beta assumption as of March 31, 2016. The resulting weighted-average interest-bearing deposit beta included in this analysis is approximately 86% and 52%, respectively, as of March 31, 2016:

TABLE 57: Estimated NII Sensitivity with Deposit Beta Assumption Changes

	% Change in NII (FTE)
	Betas  25% Higher					Betas  25% Lower
Change in Interest Rates (bps)	12 Months			13-24    Months		12   Months		13-24   Months
+200		(1.11	)%		0.52		5.35		13.44
+100		(0.41	)		1.04		2.82		7.50

Economic Value of Equity Sensitivity

The Bancorp also uses EVE as a measurement tool in managing interest rate risk. Whereas the net interest income sensitivity analysis highlights the impact on forecasted NII on an FTE basis over one and two year time horizons, the EVE analysis is a point in time analysis of the current positions that incorporates all cash flows over their estimated remaining lives. The EVE of the balance sheet is defined as the discounted present value of all asset and net derivative cash flows less the discounted value of all liability cash flows. Due to this longer horizon, the sensitivity of EVE to changes in the level of interest rates is a measure of longer-term interest rate risk. EVE values only the current balance sheet and does not incorporate the growth assumptions used in the NII sensitivity analysis. As with the NII simulation model, assumptions about the timing and variability of existing balance sheet cash flows are critical in the EVE analysis. Particularly important are assumptions driving loan and security prepayments and the expected balance attrition and pricing of transaction deposits.

The following table shows the Bancorp’s estimated EVE sensitivity profile as of:

TABLE 58: Estimated EVE Sensitivity Profile

	March 31, 2016						March  31, 2015
Change in Interest Rates (bps)	% Change in EVE			ALCO Policy Limit			% Change in EVE		ALCO Policy Limit
+200		(2.85)	%		(12.00	)		(3.85)		(12.00	)
+100		(0.90)			-			(1.33)		-
+25		(0.10)			-			(0.20)		-
-50		(0.32)			-			NM		-

The EVE sensitivity to rising rates is modestly negative at March 31, 2016, and is slightly negative to a decline in market rates. The rising rate sensitivity is down from the EVE sensitivity at March 31, 2015. The slight decrease in risk in the +200 bps scenario is related to long-term debt issuance and recalibration of indeterminate deposit cash flow models, which increased deposit durations. These items were partially offset by growth in investment portfolio balances.

While an instantaneous shift in interest rates is used in this analysis to provide an estimate of exposure, the Bancorp believes that a gradual shift in interest rates would have a much more modest impact. Since EVE measures the discounted present value of cash flows over the estimated lives of instruments, the change in EVE does not directly correlate to the degree that earnings would be impacted over a shorter time horizon (e.g., the current fiscal year). Further, EVE does not take into account factors such as future balance sheet growth, changes in product mix, changes in yield curve relationships and changing product spreads that could mitigate or exacerbate the impact of changes in interest rates. The NII simulations and EVE analyses do not necessarily include certain actions that management may undertake to manage risk in response to anticipated changes in interest rates.

The Bancorp regularly evaluates its exposures to a static balance sheet forecast, LIBOR, Prime Rate and other basis risks, yield curve twist risks and embedded options risks. In addition, the impact on NII on an FTE basis and EVE of extreme changes in interest rates is modeled, wherein the Bancorp employs the use of yield curve shocks and environment-specific scenarios.

Use of Derivatives to Manage Interest Rate Risk

An integral component of the Bancorp’s interest rate risk management strategy is its use of derivative instruments to minimize significant fluctuations in earnings caused by changes in market interest rates. Examples of derivative instruments that the Bancorp may use as part of its interest rate risk management strategy include interest rate swaps, interest rate floors, interest rate caps, forward contracts, forward starting interest rate swaps, options, swaptions and TBA securities.

44

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

As part of its overall risk management strategy relative to its mortgage banking activities, the Bancorp enters into forward contracts accounted for as free-standing derivatives to economically hedge IRLCs that are also considered free-standing derivatives. Additionally, the Bancorp economically hedges its exposure to mortgage loans held for sale through the use of forward contracts and mortgage options.

The Bancorp also establishes derivatives contracts with major financial institutions to economically hedge significant exposures assumed in commercial customer accommodation derivative contracts. Generally, these contracts have similar terms in order to protect the Bancorp from market volatility. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts, which the Bancorp minimizes through collateral arrangements, approvals, limits and monitoring procedures. For further information including the notional amount and fair values of these derivatives, refer to Note 11 of the Notes to Condensed Consolidated Financial Statements.

Portfolio Loans and Leases and Interest Rate Risk

Although the Bancorp’s portfolio loans and leases contain both fixed and floating/adjustable-rate products, the rates of interest earned by the Bancorp on the outstanding balances are generally established for a period of time. The interest rate sensitivity of loans and leases is directly related to the length of time the rate earned is established.

The following table summarizes the carrying value of the Bancorp’s portfolio loans and leases expected cash flows as of March 31, 2016:

TABLE 59: Portfolio Loans and Leases Expected Cash Flows

($ in millions)	Less than 1 year		1-5 years		Over 5 years		Total
Commercial and industrial loans	$	22,182		19,615		1,636		43,433
Commercial mortgage loans		2,649		3,751		464		6,864
Commercial construction loans		1,358		2,037		33		3,428
Commercial leases		775		1,828		1,353		3,956
Total commercial loans and leases		26,964		27,231		3,486		57,681
Residential mortgage loans		2,793		6,550		4,552		13,895
Home equity		1,081		1,626		5,405		8,112
Automobile loans		5,030		5,983		115		11,128
Credit card		427		1,711		-		2,138
Other consumer loans and leases		479		133		39		651
Total consumer loans and leases		9,810		16,003		10,111		35,924
Total portfolio loans and leases	$	36,774		43,234		13,597		93,605

Additionally, the following table displays a summary of expected cash flows, excluding interest receivable, occurring after one year for both fixed and floating/adjustable-rate loans and leases as of March 31, 2016:

TABLE 60: Portfolio Loans and Leases Expected Cash Flows Occurring After 1 Year

		Interest Rate
($ in millions)		Fixed		Floating or Adjustable
Commercial and industrial loans	$		3,093		18,158
Commercial mortgage loans			933		3,282
Commercial construction loans			3		2,067
Commercial leases			3,181		-
Total commercial loans and leases			7,210		23,507
Residential mortgage loans			8,138		2,964
Home equity			538		6,493
Automobile loans			6,043		55
Credit card			500		1,211
Other consumer loans and leases			22		150
Total consumer loans and leases			15,241		10,873
Total portfolio loans and leases	$		22,451		34,380

Residential Mortgage Servicing Rights and Interest Rate Risk

The net carrying amount of the residential MSR portfolio was $685 million and $784 million as of March 31, 2016 and December 31, 2015, respectively. The value of servicing rights can fluctuate sharply depending on changes in interest rates and other factors. Generally, as interest rates decline and loans are prepaid to take advantage of refinancing, the total value of existing servicing rights declines because no further servicing fees are collected on repaid loans. The Bancorp maintains a non-qualifying hedging strategy relative to its mortgage banking activity in order to manage a portion of the risk associated with changes in the value of its MSR portfolio as a result of changing interest rates.

Mortgage rates decreased during both the three months ended March 31, 2016 and 2015 which caused actual prepayments on the servicing portfolio to increase. The increase in actual prepayments on the servicing portfolio caused modeled prepayment speeds to increase which led to a temporary impairment of $85 million and $48 million, respectively, on servicing rights during the three months ended March 31, 2016 and 2015. Servicing rights are deemed temporarily impaired when a borrower’s loan rate is distinctly higher than prevailing rates.

45

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Temporary impairment on servicing rights is reversed when the prevailing rates return to a level commensurate with the borrower’s loan rate. In addition to the MSR valuation, the Bancorp recognized net gains of $96 million and $65 million on derivatives associated with its non-qualifying hedging strategy for the three months ended March 31, 2016 and 2015, respectively. The Bancorp may adjust its hedging strategy to reflect its assessment of the composition of its MSR portfolio, the cost of hedging and the anticipated effectiveness of the hedges given the economic environment. Refer to Note 10 of the Notes to Condensed Consolidated Financial Statements for further discussion on servicing rights and the instruments used to hedge interest rate risk on MSRs.

Foreign Currency Risk

The Bancorp may enter into foreign exchange derivative contracts to economically hedge certain foreign denominated loans. The derivatives are classified as free-standing instruments with the revaluation gain or loss being recorded in other noninterest income in the Condensed Consolidated Statements of Income. The balance of the Bancorp’s foreign denominated loans at March 31, 2016 and December 31, 2015 was $867 million and $812 million, respectively. The Bancorp also enters into foreign exchange contracts for the benefit of commercial customers involved in international trade to hedge their exposure to foreign currency fluctuations. The Bancorp has internal controls in place to help ensure excessive risk is not being taken in providing this service to customers. These controls include an independent determination of currency volatility and credit equivalent exposure on these contracts, counterparty credit approvals and country limits.

LIQUIDITY RISK MANAGEMENT

The goal of liquidity management is to provide adequate funds to meet changes in loan and lease demand, unexpected levels of deposit withdrawals and other contractual obligations. Mitigating liquidity risk is accomplished by maintaining liquid assets in the form of cash, investment securities, maintaining sufficient unused borrowing capacity in the debt markets and delivering consistent growth in core deposits. A summary of certain obligations and commitments to make future payments under contracts is included in Note 15 of the Notes to Condensed Consolidated Financial Statements.

The Bancorp maintains a contingency funding plan that assesses the liquidity needs under various scenarios of market conditions, asset growth and credit rating downgrades. The plan includes liquidity stress testing which measures various sources and uses of funds under the different scenarios. The contingency plan provides for ongoing monitoring of unused borrowing capacity and available sources of contingent liquidity to prepare for unexpected liquidity needs and to cover unanticipated events that could affect liquidity.

Sources of Funds

The Bancorp’s primary sources of funds relate to cash flows from loan and lease repayments, payments from securities related to sales and maturities, the sale or securitization of loans and leases and funds generated by core deposits, in addition to the use of public and private debt offerings.

Table 59 of the Market Risk Management subsection of the Risk Management section of MD&A illustrates the expected maturities from loan and lease repayments. Of the $29.9 billion of securities in the Bancorp’s available-for-sale and other portfolio at March 31, 2016, $4.4 billion in principal and interest is expected to be received in the next 12 months and an additional $4.0 billion is expected to be received in the next 13 to 24 months. For further information on the Bancorp’s securities portfolio, refer to the Investment Securities subsection of the Balance Sheet Analysis section of MD&A.

Asset-driven liquidity is provided by the Bancorp’s ability to sell or securitize loans and leases. In order to reduce the exposure to interest rate fluctuations and to manage liquidity, the Bancorp has developed securitization and sale procedures for several types of interest-sensitive assets. A majority of the long-term, fixed-rate single-family residential mortgage loans underwritten according to FHLMC or FNMA guidelines are sold for cash upon origination. Additional assets such as certain other residential mortgage loans, certain commercial loans, home equity loans, automobile loans and other consumer loans are also capable of being securitized or sold. For the three months ended March 31, 2016 and 2015, the Bancorp sold or securitized loans totaling $1.3 billion and $1.6 billion, respectively. For further information on the transfer of financial assets, refer to Note 10 of the Notes to Condensed Consolidated Financial Statements.

Core deposits have historically provided the Bancorp with a sizeable source of relatively stable and low cost funds. The Bancorp’s average core deposits and average shareholders’ equity funded 81% and 83%, respectively, of its average total assets for the three months ended March 31, 2016 and 2015. In addition to core deposit funding, the Bancorp also accesses a variety of other short-term and long-term funding sources, which include the use of the FHLB system. Certificates $100,000 and over and deposits in the Bancorp’s foreign branch located in the Cayman Islands are wholesale funding tools utilized to fund asset growth. Management does not rely on any one source of liquidity and manages availability in response to changing balance sheet needs.

As of March 31, 2016, $8.9 billion of debt or other securities were available for issuance under the current Bancorp’s Board of Directors’ authorizations and the Bancorp is authorized to file any necessary registration statements with the SEC to permit ready access to the public securities markets; however, access to these markets may depend on market conditions. At March 31, 2016, the Bancorp has approximately $34.1 billion of borrowing capacity available through secured borrowing sources including the FHLB and FRB.

The Bancorp’s banking subsidiary’s global bank note program has a borrowing capacity of $25 billion, of which $17.6 billion is available for issuance as of March 31, 2016. On March 15, 2016, the Bank issued and sold $1.5 billion in aggregate principal amounts of unsecured bank notes.

Liquidity Coverage Ratio and Net Stable Funding Ratio

A key reform within the Basel III framework to strengthen international liquidity standards was the BCBS’ introduction of the LCR and NSFR. On January 7, 2013, the BCBS issued a final standard for the LCR applicable to large internationally active banking organizations.

46

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The BCBS issued a final NSFR standard in the fourth quarter of 2014 and disclosure requirements in the second quarter of 2015 which are applicable to internationally active banks. The NSFR will become a minimum standard by January 1, 2018.

Section 165 of the DFA requires the FRB to establish enhanced liquidity standards in the U.S. for BHCs with total assets of $50 billion or greater. On October 10, 2014, the U.S. banking agencies published final rules implementing a quantitative liquidity requirement consistent with the LCR standard established by the BCBS for large internationally active banking organizations, generally those with $250 billion or more in total consolidated assets or $10 billion or more in on-balance sheet foreign exposure. In addition, a Modified LCR requirement was finalized for BHCs with $50 billion or more in total consolidated assets that are not internationally active, such as the Bancorp. The Modified LCR requires BHCs to maintain HQLA equal to its calculated net cash outflows over a 30 calendar-day stress period multiplied by a factor of 0.7. The Modified LCR became effective January 1, 2016 and requires BHCs to calculate its LCR on a monthly basis. The final rule includes a transition period for the Modified LCR in which BHCs must maintain HQLA of 90% of its calculated net cash outflows for 2016 and then 100% beginning in 2017. The Bancorp’s Modified LCR was 118% at March 31, 2016 calculated under the Modified LCR final rule.

The U.S. banking agencies have issued a notice of proposed rulemaking to implement a modified NSFR for certain bank holding companies with at least $50 billion but less than $250 billion in total consolidated assets and with less than $10 billion in on-balance sheet foreign exposures, including the Bancorp. The NSFR is one of the two Basel III-based liquidity measures, along with the LCR, and is designed to promote medium- and long-term stable funding of the assets and off-balance-sheet activities of banks and bank holding companies over a one-year time horizon. Generally consistent with the BCBS’ framework, under the proposed rule banking organizations would be required to hold an amount of ASF over a one-year time horizon that equals or exceeds the institution’s amount of RSF, with the ASF representing the numerator and the RSF representing the denominator of the NSFR. Banking organizations subject to the modified NSFR would multiply the RSF amount by 70%, such that the RSF amount required for these institutions would be equivalent to 70% of the RSF amount that would be required pursuant to the full NSFR generally applicable to institutions with at least $250 billion in total consolidated assets or $10 billion or more in on-balance sheet foreign exposures under the proposed rule. The proposed rule includes detailed descriptions of the items that would comprise ASF and RSF and standardized factors that would apply to ASF and RSF items, and would require any institution whose applicable modified NSFR falls under 100% to notify the appropriate federal regulator and develop a remediation plan.

The Bancorp is currently evaluating the impact of the U.S. banking agencies’ NSFR framework. If ultimately adopted as currently proposed, the implementation of the NSFR could impact the Bancorp’s liquidity and funding requirements and practices in the future, including by incentivizing increased use of long-term debt as a funding source. Under the proposal, the NSFR becomes effective January 1, 2018 with public disclosure requirements beginning for the calendar quarter that ends on March 31, 2018. The comment period for this proposal ends on August 5, 2016.

Credit Ratings

The cost and availability of financing to the Bancorp are impacted by its credit ratings. A downgrade to the Bancorp’s credit ratings could affect its ability to access the credit markets and increase its borrowing costs, thereby adversely impacting the Bancorp’s financial condition and liquidity. Key factors in maintaining high credit ratings include a stable and diverse earnings stream, strong credit quality, strong capital ratios and diverse funding sources, in addition to disciplined liquidity monitoring procedures.

The Bancorp’s credit ratings are summarized in Table 61. The ratings reflect the ratings agency’s view on the Bancorp’s capacity to meet financial commitments. *

* As an investor, you should be aware that a security rating is not a recommendation to buy, sell or hold securities, that it may be subject to revision or withdrawal at any time by the assigning rating organization and that each rating should be evaluated independently of any other rating. Additional information on the credit rating ranking within the overall classification system is located on the website of each credit rating agency.

TABLE 61: Agency Ratings
As of May 6, 2016	Moody’s	Standard and Poor’s	Fitch	DBRS
Fifth Third Bancorp:
Short-term	No rating	A-2	F1	R-1L
Senior debt	Baa1	BBB+	A	AL
Subordinated debt	Baa1	BBB	A-	BBBH
Fifth Third Bank:
Short-term	P-1	A-2	F1	R-1L
Long-term deposit	Aa3	No rating	A+	A
Senior debt	A3	A-	A	A
Subordinated debt	Baa1	BBB+	A-	AL

OPERATIONAL RISK MANAGEMENT

Operational risk is the risk of loss resulting from inadequate or failed processes or systems or due to external events that are neither market nor credit-related. Operational risk is inherent in the Bancorp’s activities and can manifest itself in various ways including fraudulent acts, business interruptions, inappropriate behavior of employees, unintentional failure to comply with applicable laws and regulations, cyber-security incidents and privacy breaches, or failure of vendors to perform in accordance with their arrangements. These events could result in financial losses, litigation and regulatory fines, as well as other damage to the Bancorp. The Bancorp’s risk management goal is to keep operational risk at appropriate levels consistent with the Bancorp’s risk appetite, financial strength, the characteristics of its businesses, the markets in which it operates, and the competitive and regulatory environment to which it is subject.

47

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

To control, monitor, and govern operational risk, the Bancorp maintains an overall Risk Management Framework which comprises governance oversight, risk assessment, capital measurement, monitoring, and reporting as well as a formal three lines of defense approach. ERM is responsible for prescribing the framework to the lines of business and corporate functions, and to provide independent oversight of its implementation (second line of defense). In 2015, Business Controls Directors were appointed in each of the lines of business to ensure consistent implementation and execution of managing day to day operational risk (first line of defense).

The Bancorp’s risk management framework consists of five integrated components, including identifying, assessing, managing, monitoring and independent governance reporting of risk. The corporate Operational Risk Management function within Enterprise Risk is responsible for developing and overseeing the implementation of the Bancorp’s approach to managing operational risk. This includes providing governance, awareness and training, tools, guidance and oversight to support implementation of key risk programs and systems as they relate to operational risk management, such as risk and control self-assessments, new product/initiative risk reviews, key risk indicators, Vendor Risk Management, and operational losses. The function is also responsible for developing reports that support the proactive management of operational risk across the enterprise. The lines of business and corporate functions are responsible for managing the operational risks associated with their areas in accordance with the risk management framework. The framework is intended to enable the Bancorp to function with a sound and well-controlled operational environment. These processes support the Bancorp’s goals to minimize future operational losses and strengthen the Bancorp’s performance by maintaining sufficient capital to absorb operational losses that are incurred.

COMPLIANCE RISK MANAGEMENT

Regulatory Compliance Risk is defined as the risk of legal or regulatory sanctions, financial loss, or damage to reputation as a result of noncompliance with (i) applicable laws, regulations, rules and other regulatory requirements (including but not limited to the risk of consumers experiencing economic loss or other legal harm as a result of noncompliance with consumer protection laws, regulations and requirements); (ii) internal policies and procedures, standards of best practice or codes of conduct; and (iii) principles of integrity and fair dealing applicable to Fifth Third’s activities and functions. Fifth Third focuses on managing regulatory compliance risk in accordance with the Bancorp’s integrated risk management framework, which ensures consistent processes for identifying, assessing, managing, monitoring, and reporting risks. The Bancorp’s risk management goal is to keep compliance risk at appropriate levels consistent with the Bancorp’s risk appetite.

The current regulatory environment, including heightened regulatory expectations and material changes in laws and regulations, increases compliance risk. To mitigate compliance risk, Compliance Risk Management provides independent oversight to ensure consistency and sufficiency, and ensures that lines of business, regions and support functions are adequately identifying, assessing and monitoring compliance risks and adopting proper mitigation strategies. The lines of business and enterprise functions are responsible for managing the compliance risks associated with their areas. Additionally, Compliance Risk Management implements key compliance programs and processes including but not limited to, risk assessments, key risk indicators program, issues tracking, regulatory compliance testing and monitoring, anti-money laundering, privacy, and oversees the Bancorp’s compliance with the Community Reinvestment Act.

Fifth Third also focuses on reporting and escalation of compliance issues to senior management and the Board. The Management Compliance Committee is the key committee that oversees and supports Fifth Third in the management of compliance risk across the enterprise. The Management Compliance Committee addresses Fifth Third-wide compliance issues, industry best practices, legislative developments, regulatory concerns, and other leading indicators of compliance risk. The Management Compliance Committee reports to the Enterprise Risk Management Committee, which reports to Risk and Compliance Committee of the Board of Directors.

CAPITAL MANAGEMENT

Management regularly reviews the Bancorp’s capital levels to help ensure it is appropriately positioned under various operating environments. The Bancorp has established a Capital Committee which is responsible for making capital plan recommendations to management. These recommendations are reviewed by the ERMC and the annual capital plan is approved by the Board of Directors. The Capital Committee is responsible for execution oversight of the capital actions of the capital plan.

Regulatory Capital Ratios

The Basel III Final Rule was effective for the Bancorp on January 1, 2015, subject to phase-in periods for certain of its components and other provisions. It established quantitative measures that assign risk weightings to assets and off-balance sheet items and also defined and set minimum regulatory capital requirements. The minimum capital ratios established under the Basel III Final Rule are 4.5% for the CET1 capital ratio, 6% for the Tier I risk-based capital ratio, 8% for the Total risk-based capital ratio and 4% for the Tier I Leverage ratio (Tier I capital to average consolidated assets). The PCA provisions adopted by the U.S. banking agencies define “well-capitalized” ratios for CET1 capital, Tier I risk-based capital, Total risk-based capital and Tier I leverage greater than or equal to 6.5%, 8%, 10% and 5%, respectively.

On January 1, 2016, the Bancorp became subject to a capital conservation buffer which will be phased in over a three-year period ending January 1, 2019. Once fully phased-in, the capital conservation buffer will be 2.5% in addition to the minimum capital requirements, in order to avoid limitations on certain capital distributions and discretionary bonus payments to executive officers. The capital conservation buffer is 0.625% in 2016. The Bancorp exceeded these “well-capitalized” and “capital conservation buffer” ratios for all periods presented.

The Bancorp made a one-time permanent election to not include AOCI in regulatory capital in the March 31, 2015 FFIEC 031 and FR Y-9C filings. The Basel III Final Rule phases out the inclusion of certain TruPS as a component of Tier I capital. Under these provisions, these TruPS would qualify as a component of Tier II capital. At March 31, 2016, the Bancorp’s Tier I capital did not include any TruPS, compared to $13 million, or 1 bp of risk-weighted assets, at December 31, 2015.

48

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The following table summarizes the Bancorp’s capital ratios as of:

TABLE 62: Capital Ratios

($ in millions)		March 31, 2016			December 31, 2015
Average total Bancorp shareholders’ equity as a percent of average assets			11.57	%		11.26
Tangible equity as a percent of tangible assets(a)(c)			9.51			9.55
Tangible common equity as a percent of tangible assets(a)(c)			8.55			8.59
		Basel III Transitional(b)
CET1 capital	$		11,914			11,917
Tier I capital			13,244			13,260
Total regulatory capital			17,797			17,134
Risk-weighted assets			121,432			121,290	(d)
Regulatory capital ratios:
CET1 capital			9.81	%		9.82	(d)
Tier I risk-based capital			10.91			10.93	(d)
Total risk-based capital			14.66			14.13	(d)
Tier I leverage			9.57			9.54	(d)
		Basel III Fully Phased-In
CET1 capital(a)			9.72	%		9.72	(d)

(a) These are non-GAAP measures. For further information, refer to the Non-GAAP Financial Measures section of MD&A.

(b) Under the U.S. banking agencies’ Basel III Final Rule, assets and credit equivalent amounts of off-balance sheet exposures are calculated according to the standardized approach for risk-weighted assets. The resulting weighted values are added together resulting in the total risk-weighted assets.

(c) Excludes unrealized gains and losses.

(d) Balances and ratios not restated for the adoption of the amended guidance of ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” Refer to Note 3 of the Notes to Condensed Consolidated Financial Statements for further information.

Stress Tests and CCAR

In 2011 the FRB adopted the capital plan rule, which requires BHCs with consolidated assets of $50 billion or more to submit annual capital plans to the FRB for review. Under the rule, these capital plans must include detailed descriptions of the following: the BHC’s internal processes for assessing capital adequacy; the policies governing capital actions such as common stock issuances, dividends and share repurchases; and all planned capital actions over a nine-quarter planning horizon. Further, each BHC must also report to the FRB the results of stress tests conducted by the BHC under a number of scenarios that assess the sources and uses of capital under baseline and stressed economic scenarios. The FRB launched the 2016 stress testing program and CCAR on January 28, 2016, with submissions of stress test results and capital plans to the FRB due on April 5, 2016, which the Bancorp submitted as required.

The FRB’s review of the capital plan will assess the comprehensiveness of the capital plan, the reasonableness of the assumptions and the analysis underlying the capital plan. Additionally, the FRB will review the robustness of the capital adequacy process, the capital policy and the Bancorp’s ability to maintain capital above each minimum regulatory capital ratio on a pro forma basis under expected and stressful conditions throughout the planning horizon.

The FRB expects to release summary results of the 2016 stress testing program and CCAR by June 30, 2016. The results will include supervisory projections of capital ratios, losses and revenue under the supervisory adverse and supervisory severely adverse scenarios. The FRB will also issue an objection or non-objection to each participating institution’s capital plan submitted under CCAR. The FRB’s summary results will also include an overview of methodologies used for supervisory tests. Additionally, as a CCAR institution, the Bancorp will be required to disclose the results of its company-run stress test as required by the DFA, within 15 days of the date the FRB discloses the results of its DFA supervisory tests.

As contemplated by the 2015 CCAR, during the first quarter of 2016, the Bancorp entered into a $240 million accelerated share repurchase transaction. For further information, refer to Note 14 of the Notes to Condensed Consolidated Financial Statements.

Dividend Policy and Stock Repurchase Program

The Bancorp’s common stock dividend policy and stock repurchase program reflect its earnings outlook, desired payout ratios, the need to maintain adequate capital levels, the ability of its subsidiaries to pay dividends, the need to comply with safe and sound banking practices as well as meet regulatory requirements and expectations. The Bancorp declared dividends per common share of $0.13 for both the three months ended March 31, 2016 and 2015. The Bancorp entered into or settled accelerated share repurchase transactions during the three months ended March 31, 2016. Refer to Note 14 of the Notes to Condensed Consolidated Financial Statements for additional information on the accelerated share repurchases.

49

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The following table summarizes the monthly share repurchase activity for the three months ended March 31, 2016:

TABLE 63: Share Repurchases

Period	Total Number  of Shares  Purchased(a)		Average Price       Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of   Shares that May Yet be   Purchased Under the Plans   or Programs(b)
January 1, 2016 - January 31, 2016		1,923,766	$	19.43		1,782,477	28,790,036
February 1, 2016 - February 29, 2016		96,815		15.43		-	28,790,036
March 1, 2016 - March 31, 2016		12,721,622		16.18		12,623,762	100,000,000
Total		14,742,203	$	16.60		14,406,239	100,000,000

(a) Includes 335,964 shares repurchased during the first quarter of 2016 in connection with various employee compensation plans. These purchases do not count against the maximum number of shares that may yet be purchased under the Board of Directors’ authorization.

(b) In March of 2016, the Bancorp announced that its Board of Directors had authorized management to purchase 100 million shares of the Bancorp’s common stock through the open market or in any private party transactions. The authorization does not include specific price targets or an expiration date. All shares settled during the first quarter of 2016 were included under the previous 100 million share repurchase program.

50

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

OFF-BALANCE SHEET ARRANGEMENTS

In the ordinary course of business, the Bancorp enters into financial transactions that are considered off-balance sheet arrangements as they involve varying elements of market, credit and liquidity risk in excess of the amounts recognized in the Bancorp’s Condensed Consolidated Balance Sheets. The Bancorp’s off-balance sheet arrangements include commitments, contingent liabilities, guarantees, and transactions with non-consolidated VIEs. A brief discussion of these transactions is as follows:

Commitments

The Bancorp has certain commitments to make future payments under contracts, including commitments to extend credit, letters of credit, forward contracts related to held for sale mortgage loans, noncancelable operating lease obligations, capital commitments for private equity investments and purchase obligations. Refer to Note 15 of the Notes to Condensed Consolidated Financial Statements for additional information on commitments.

Guarantees and Contingent Liabilities

The Bancorp has performance obligations upon the occurrence of certain events provided in certain contractual arrangements, including residential mortgage loans sold with representation and warranty provisions or credit recourse. Refer to Note 15 of the Notes to Condensed Consolidated Financial Statements for additional information on guarantees and contingent liabilities.

Transactions with Non-consolidated VIEs

The Bancorp engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equity to finance their activities, or the equity investors of the entities as a group lack any of the characteristics of a controlling interest. The investments in those entities in which the Bancorp was determined not to be the primary beneficiary but holds a variable interest in the entity are accounted for under the equity method of accounting or other accounting standards as appropriate and not consolidated. Refer to Note 9 of the Notes to Condensed Consolidated Financial Statements for additional information on non-consolidated VIEs.

51

Quantitative and Qualitative Disclosure about Market Risk (Item 3)

Information presented in the Market Risk Management section of Management’s Discussion and Analysis of Financial Condition and Results of Operations is incorporated herein by reference.

Controls and Procedures (Item 4)

The Bancorp conducted an evaluation, under the supervision and with the participation of the Bancorp’s management, including the Bancorp’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Bancorp’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act). Based on the foregoing, as of the end of the period covered by this report, the Bancorp’s Chief Executive Officer and Chief Financial Officer concluded that the Bancorp’s disclosure controls and procedures were effective, in all material respects, to ensure that information required to be disclosed in the reports the Bancorp files and submits under the Exchange Act is recorded, processed, summarized and reported as and when required and information is accumulated and communicated to the Bancorp’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. The Bancorp’s management also conducted an evaluation of internal control over financial reporting to determine whether any changes occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Bancorp’s internal control over financial reporting. Based on this evaluation, there has been no such change during the period covered by this report.

52

Fifth Third Bancorp and Subsidiaries

Condensed Consolidated Financial Statements and Notes (Item 1)

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

		As of
($ in millions, except share data)		March 31, 2016			December 31,     2015
Assets
Cash and due from banks(a)	$		2,298		2,540
Available-for-sale and other securities(b)			29,891		29,044
Held-to-maturity securities(c)			64		70
Trading securities			405		386
Other short-term investments			1,778		2,671
Loans held for sale(d)			803		903
Portfolio loans and leases(a)(e)			93,605		92,582
Allowance for loan and lease losses(a)			(1,295	)	(1,272)
Portfolio loans and leases, net			92,310		91,310
Bank premises and equipment(f)			2,185		2,239
Operating lease equipment			738		707
Goodwill			2,416		2,416
Intangible assets			11		12
Servicing rights			685		785
Other assets(a)(j)			8,846		7,965
Total Assets(j)	$		142,430		141,048
Liabilities
Deposits:
Noninterest-bearing deposits	$		35,858		36,267
Interest-bearing deposits			66,617		66,938
Total deposits(g)			102,475		103,205
Federal funds purchased			134		151
Other short-term borrowings			3,523		1,507
Accrued taxes, interest and expenses			2,011		2,164
Other liabilities(a)			2,627		2,341
Long-term debt(a)(j)			15,305		15,810
Total Liabilities(j)	$		126,075		125,178
Equity
Common stock(h)	$		2,051		2,051
Preferred stock(i)			1,331		1,331
Capital surplus			2,686		2,666
Retained earnings			12,570		12,358
Accumulated other comprehensive income			684		197
Treasury stock(h)			(2,999	)	(2,764)
Total Bancorp shareholders’ equity	$		16,323		15,839
Noncontrolling interests			32		31
Total Equity			16,355		15,870
Total Liabilities and Equity(j)	$		142,430		141,048

(a) Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

(b) Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively.

(c) Fair value of $64 and $70 at March 31, 2016 and December 31, 2015, respectively.

(d) Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively.

(e) Includes $160 and $167 of residential mortgage loans measured at fair value at March 31, 2016 and December 31, 2015, respectively.

(f) Includes $68 and $81 of bank premises and equipment held for sale at March 31, 2016 and December 31, 2015, respectively. Refer to Note 7.

(g) Includes $331 and $628 of deposits held for sale at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 7.

(h) Common shares: Stated value $2.22 per share; authorized 2,000,000,000; outstanding at March 31, 2016 – 770,470,768 (excludes 153,421,813 treasury shares), December 31, 2015 – 785,080,314 (excludes 138,812,267 treasury shares).

(i) 446,000 shares of undesignated no par value preferred stock are authorized and unissued at March 31, 2016 and December 31, 2015; fixed-to-floating rate non-cumulative Series H perpetual preferred stock with a $25,000 liquidation preference: 24,000 authorized shares, issued and outstanding at March 31, 2016 and December 31, 2015; fixed-to-floating rate non-cumulative Series I perpetual preferred stock with a $25,000 liquidation preference; 18,000 authorized shares, issued and outstanding at March 31, 2016 and December 31, 2015; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $25,000 liquidation preference: 12,000 authorized shares, issued and outstanding at March 31, 2016 and December 31, 2015.

(j) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3.

Refer to the Notes to Condensed Consolidated Financial Statements.

53

Fifth Third Bancorp and Subsidiaries

Condensed Consolidated Financial Statements and Notes (continued)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)

		For the three months ended         March 31,
($ in millions, except share data)		2016		2015
Interest Income
Interest and fees on loans and leases	$		804	778
Interest on securities			232	188
Interest on other short-term investments			2	4
Total interest income			1,038	970
Interest Expense
Interest on deposits			49	50
Interest on federal funds purchased			1	-
Interest on other short-term borrowings			3	-
Interest on long-term debt			82	73
Total interest expense			135	123
Net Interest Income			903	847
Provision for loan and lease losses			119	69
Net Interest Income After Provision for Loan and Lease Losses			784	778
Noninterest Income
Service charges on deposits			137	135
Investment advisory revenue			102	108
Corporate banking revenue			102	63
Card and processing revenue			79	71
Mortgage banking net revenue			78	86
Other noninterest income			136	163
Securities gains, net			3	4
Total noninterest income			637	630
Noninterest Expense
Salaries, wages and incentives			403	369
Employee benefits			100	99
Net occupancy expense			77	79
Technology and communications			56	55
Card and processing expense			35	36
Equipment expense			30	31
Other noninterest expense			285	254
Total noninterest expense			986	923
Income Before Income Taxes			435	485
Applicable income tax expense			108	124
Net Income			327	361
Less: Net income attributable to noncontrolling interests			-	-
Net Income Attributable to Bancorp			327	361
Dividends on preferred stock			15	15
Net Income Available to Common Shareholders	$		312	346
Earnings per share - basic	$		0.40	0.42
Earnings per share - diluted	$		0.40	0.42
Average common shares outstanding - basic			773,564,178	810,209,585
Average common shares outstanding - diluted			778,392,453	818,672,259
Cash dividends declared per common share	$		0.13	0.13

Refer to the Notes to Condensed Consolidated Financial Statements.

54

Fifth Third Bancorp and Subsidiaries

Condensed Consolidated Financial Statements and Notes (continued)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

		For the three months ended           March 31,
($ in millions)		2016	2015
Net Income	$	327	361
Other Comprehensive Income, Net of Tax:
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during period		452	141
Reclassification adjustment for net gains included in net income		(5)	(8)
Unrealized gains on cash flow hedge derivatives:
Unrealized holding gains arising during period		48	34
Reclassification adjustment for net gains included in net income		(9)	(10)
Defined benefit pension plans, net:
Reclassification of amounts to net periodic benefit costs		1	2
Other comprehensive income, net of tax		487	159
Comprehensive Income		814	520
Less: Comprehensive income attributable to noncontrolling interests		-	-
Comprehensive Income Attributable to Bancorp	$	814	520

Refer to the Notes to Condensed Consolidated Financial Statements.

55

Fifth Third Bancorp and Subsidiaries

Condensed Consolidated Financial Statements and Notes (continued)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited)

		Bancorp Shareholders’ Equity
($ in millions, except per share data)		Common Stock	Preferred Stock		Capital Surplus			Retained Earnings			Accumulated Other Comprehensive Income		Treasury Stock			Total Bancorp Shareholders’ Equity			Non- Controlling Interests		Total   Equity
Balance at December 31, 2014	$	2,051		1,331		2,646			11,141			429		(1,972	)		15,626			39	15,665
Net income									361								361				361
Other comprehensive income, net of tax												159					159				159
Cash dividends declared:
Common stock at $0.13 per share									(106	)							(106	)			(106)
Preferred stock(a)									(15	)							(15	)			(15)
Shares acquired for treasury														(180	)		(180	)			(180)
Impact of stock transactions under stock compensation plans, net						14								7			21				21
Other						(1	)		(1	)							(2	)		1	(1)
Balance at March 31, 2015	$	2,051		1,331		2,659			11,380			588		(2,145	)		15,864			40	15,904
Balance at December 31, 2015	$	2,051		1,331		2,666			12,358			197		(2,764	)		15,839			31	15,870
Net income									327								327				327
Other comprehensive income, net of tax												487					487				487
Cash dividends declared:
Common stock at $0.13 per share									(100	)							(100	)			(100)
Preferred stock(a)									(15	)							(15	)			(15)
Shares acquired for treasury						(8	)							(232	)		(240	)			(240)
Impact of stock transactions under stock compensation plans, net						27								(3	)		24				24
Other						1											1			1	2
Balance at March 31, 2016	$	2,051		1,331		2,686			12,570			684		(2,999	)		16,323			32	16,355

(a) For both the three months ended March 31, 2016 and 2015, dividends were $414.06 per preferred share for Perpetual Preferred Stock, Series I and $612.50 per preferred share for Perpetual Preferred Stock, Series J.

Refer to the Notes to Condensed Consolidated Financial Statements.

56

Fifth Third Bancorp and Subsidiaries

Condensed Consolidated Financial Statements and Notes (continued)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

		For the three months ended March 31,
($ in millions)		2016	2015
Operating Activities
Net income	$	327	361
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses		119	69
Depreciation, amortization and accretion		110	107
Stock-based compensation expense		26	21
Provision for (benefit from) deferred income taxes		9	(3)
Securities gains, net		(1)	(4)
Provision for MSR impairment		85	48
Net gains on sales of loans and fair value adjustments on loans held for sale		(15)	(51)
Net (gains) losses on disposition and impairment of bank premises and equipment		(1)	3
Gain on sale of certain retail branch operations		(8)	-
Net losses on disposition and impairment of operating lease equipment		-	30
Proceeds from sales of loans held for sale		1,133	999
Loans originated for sale, net of repayments		(1,180)	(1,179)
Dividends representing return on equity method investments		2	2
Net change in:
Trading securities		(20)	(32)
Other assets		345	413
Accrued taxes, interest and expenses		(422)	(126)
Other liabilities		(114)	(155)
Net Cash Provided by Operating Activities		395	503
Investing Activities
Proceeds from sales:
Available-for-sale securities		2,677	730
Loans		7	661
Bank premises and equipment		15	11
Proceeds from repayments / maturities:
Available-for-sale securities		531	694
Held-to-maturity securities		6	10
Purchases:
Available-for-sale securities		(4,069)	(4,873)
Bank premises and equipment		(41)	(45)
Proceeds from sales and dividends representing return of equity method investments		9	13
Net cash paid on sale of certain retail branch operations		(43)	-
Net change in:
Other short-term investments		893	2,995
Loans and leases		(1,119)	(1,212)
Operating lease equipment		(50)	(15)
Net Cash Used in Investing Activities		(1,184)	(1,031)
Financing Activities
Net change in:
Deposits		(502)	1,703
Federal funds purchased		(17)	56
Other short-term borrowings		2,016	(143)
Dividends paid on common stock		(102)	(107)
Dividends paid on preferred stock		(15)	(15)
Proceeds from issuance of long-term debt		1,494	-
Repayment of long-term debt		(2,088)	(956)
Repurchase of treasury stock and related forward contract		(240)	(180)
Other		1	(1)
Net Cash Provided by Financing Activities		547	357
Decrease in Cash and Due from Banks		(242)	(171)
Cash and Due from Banks at Beginning of Period		2,540	3,091
Cash and Due from Banks at End of Period	$	2,298	2,920

Refer to the Notes to Condensed Consolidated Financial Statements. Note 2 contains cash payments related to interest and income taxes in addition to non-cash investing and financing activities.

57

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

1. Basis of Presentation

The Condensed Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the equity method and not consolidated. Those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at the lower of cost or fair value. Intercompany transactions and balances have been eliminated.

In the opinion of management, the unaudited Condensed Consolidated Financial Statements include all adjustments, which consist of normal recurring accruals, necessary to present fairly the results for the periods presented. In accordance with U.S. GAAP and the rules and regulations of the SEC for interim financial information, these statements do not include certain information and footnote disclosures required for complete annual financial statements and it is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Bancorp’s Annual Report on Form 10-K. The results of operations and comprehensive income for the three months ended March 31, 2016 and 2015 and the cash flows and changes in equity for the three months ended March 31, 2016 and 2015 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2015 has been derived from the Bancorp’s Annual Report on Form 10-K.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

2. Supplemental Cash Flow Information

Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the three months ended March 31:

($ in millions)	2016		2015
Cash Payments:
Interest	$	191		166
Income taxes		334		13
Transfers:
Portfolio loans to loans held for sale		3		9
Loans held for sale to portfolio loans		12		78
Portfolio loans to OREO		12		33

3. Accounting and Reporting Developments

Revenue from Contracts with Customers

In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within the reporting period, and should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016 and interim reporting periods within those fiscal years. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Subsequently, the FASB has issued additional guidance to clarify certain implementation issues. Specifically, the FASB issued Principal versus Agent Considerations and Identifying Performance Obligations and Licensing in March and April 2016, respectively. These amendments do not change the core principle in Revenue from Contracts with Customers (Topic 606) and the effective date and transition requirements for the amendments are consistent with those in Topic 606.

Accounting for Share-Based Payments When the Terms of the Award Provide That a Performance Target Could be Achieved after the Requisite Service Period

In June 2014, the FASB issued amended guidance which clarifies that a performance target that affects vesting and can be achieved after the requisite service period be treated as a performance condition. The amended guidance provides that an entity should apply existing guidance as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved.

58

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The amended guidance was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The amended guidance may be adopted either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying the amended guidance as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. The Bancorp adopted the amended guidance prospectively on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements.

Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity

In August 2014, the FASB issued amended guidance that provides an alternative to ASC Topic 820: Fair Value Measurement for measuring the financial assets and financial liabilities of a CFE, such as a collateralized debt obligation or a collateralized loan obligation entity consolidated as a VIE when a) all of the financial assets and the financial liabilities of that CFE are measured at fair value in the Condensed Consolidated financial statements and b) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. If elected, the measurement alternative would allow the Bancorp to measure both the financial assets and the financial liabilities of the CFE by using the more observable of the fair value of the financial assets or the fair value of the financial liabilities and to eliminate any measurement difference. When the measurement alternative is not elected for a consolidated CFE within the scope of this amended guidance, the amendments clarify that 1) the fair value of the financial assets and the fair value of the financial liabilities of the Condensed Consolidated CFE should be measured using the requirements of Topic 820 and 2) any difference in the fair value of the financial assets and the fair value of the financial liabilities of that consolidated CFE should be reflected in earnings and attributed to the Bancorp in the Condensed Consolidated Statements of Income. The amended guidance may be applied retrospectively or through a modified retrospective approach and was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements.

Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or Equity

In November 2014, the FASB issued amended guidance that clarifies how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative features being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The effects of initially adopting the amended guidance should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendments are effective and shall be reported as a cumulative-effect adjustment directly to retained earnings as of the beginning of the year of adoption. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements.

Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items

In January 2015, the FASB issued amended guidance that eliminates the concept of extraordinary items from U.S. GAAP. Presently, an event or transaction is presumed to be an ordinary and usual activity of a reporting entity unless evidence clearly supports its classification as an extraordinary item, which must be both unusual in nature and infrequent in occurrence. An entity was required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. An entity was also required to disclose applicable income taxes and either present or disclose earnings per share data applicable to the extraordinary item. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The amended guidance may be applied prospectively or retrospectively to all periods presented in the financial statements. The Bancorp adopted the amended guidance prospectively on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements.

Amendments to the Consolidation Analysis

In February 2015, the FASB issued amended guidance that changes the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amended guidance 1) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; 2) eliminates the presumption that a general partner should consolidate a limited partnership; 3) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and 4) provides a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amended guidance was effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. The amended guidance may be applied using either a retrospective approach or a modified retrospective approach with a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements.

59

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Simplifying the Presentation of Debt Issuance Costs

In April 2015, the FASB issued amended guidance to address the different balance sheet presentation requirements for debt issuance costs and debt discounts and premiums. The amended guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amended guidance. The amended guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted for financial statements that have not been previously issued. The amended guidance should be applied retrospectively, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the amended guidance. Upon adoption on January 1, 2016, the Bancorp reclassified approximately $34 million of debt issuance costs from other assets to a direct deduction from long-term debt in the Condensed Consolidated Balance Sheets.

Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets

In April 2015, the FASB issued amended guidance intended to simplify an entity’s measurement of the fair value of plan assets of a defined benefit pension or other postretirement benefit plan when the fiscal year-end does not coincide with a month end. For an entity with a fiscal year-end that does not coincide with a month-end, the amended guidance provides a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The amended guidance should be applied prospectively. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption of the amended guidance did not have an impact on the Condensed Consolidated Financial Statements as the Bancorp’s fiscal year-end coincides with a month-end.

Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement

In April 2015, the FASB issued amended guidance on a customer’s accounting for fees paid in a cloud computing arrangement. Under the amended guidance, if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amended guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The amended guidance may be applied either prospectively to all arrangements entered into or materially modified after the effective date, or retrospectively. The Bancorp adopted the amended guidance prospectively on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements.

Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share

In May 2015, the FASB issued amended guidance to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amended guidance also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amended guidance should be applied retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented in an entity’s financial statements. Earlier application is permitted. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements.

Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-Of-Credit Agreements

In August 2015, the FASB issued amended guidance about the presentation and subsequent measurement of debt issuance costs associated with line of credit arrangements. Given the absence of authoritative guidance for debt issuance costs related to line of credit arrangements within ASU 2015-03, the amended guidance provides that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there were any outstanding borrowings on the line of credit arrangement. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amended guidance should be applied retrospectively, where in the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the amendments. Early adoption is permitted for financial statements that have not been previously issued. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements.

Simplifying the Accounting for Measurement-Period Adjustments

In September 2015, the FASB issued amended guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. The amended guidance eliminates the requirement to retrospectively account for those adjustments and requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer shall record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amended guidance requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with earlier application permitted for financial statements that have not been issued. The amended guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date of the amended guidance. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have an impact on the Condensed Consolidated Financial Statements.

60

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued amended guidance to improve certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Specifically, the amendments significantly revise an entity’s accounting related to 1) the classification and measurement of investments in equity securities, 2) the presentation of certain fair value changes for financial liabilities measured at fair value, and 3) certain disclosure requirements associated with the fair value of financial instruments. The amendments require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes as a result of an observable price change. The amendments also simplify the impairment assessment of equity investments for which fair value is not readily determinable by requiring an entity to perform a qualitative assessment to identify impairment. If qualitative indicators are identified, the entity will be required to measure the investment at fair value. For financial liabilities that an entity has elected to measure at fair value, the amendments require an entity to present separately in other comprehensive income the portion of the change in fair value that results from a change in instrument-specific credit risk. For public business entities, the amendments 1) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate fair value for financial instruments measured at amortized cost and 2) require, for disclosure purposes, the use of an exit price notion in the determination of the fair value of financial instruments. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Upon adoption, the Bancorp will be required to make a cumulative-effect adjustment to the Condensed Consolidated Balance Sheets as of the beginning of the fiscal year of adoption. The guidance on equity securities without readily determinable fair value will be applied prospectively to all equity investments that exist as of the date of adoption of the standard. Early adoption of the amendments is not permitted with the exception of the presentation of certain fair value changes for financial liabilities measured at fair value for which early application is permitted. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Accounting for Leases

In February 2016, the FASB issued amended guidance that establishes a new accounting model for leases. The amended guidance requires lessees to record lease liabilities on the lessees balance sheets along with corresponding right-of-use assets for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the lessee’s statements of income. From a lessor perspective, the accounting model is largely unchanged, except that the amended guidance includes certain targeted improvements to align, where necessary, lessor accounting with the lessee accounting model and the revenue recognition guidance in ASC Topic 606. The amendments also modify disclosure requirements for an entity’s lease arrangements. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The amendments should be applied to each prior reporting period presented using a modified retrospective approach, although the amended guidance contains certain transition relief provisions that, among other things, permit an entity to elect not to reassess the classification of leases which existed or expired as of the date the amendments are effective. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Recognition of Breakage on Certain Prepaid Stored-Value Products

In March 2016, the FASB issued amended guidance to permit proportional derecognition of the liability for unused funds on certain prepaid stored-value products (known as breakage) to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. The amendments do not apply to any prepaid stored-value products that are attached to a segregated customer deposit account, or products for which unused funds are subject to unclaimed property remittance laws. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted, and should be applied retrospectively to all comparable periods presented in the year of adoption. Entities may also elect a modified retrospective application by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is effective. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships

In March 2016, the FASB issued amended guidance to clarify that a change in counterparty in a derivative contract does not, in and of itself, represent a change in critical terms that would require discontinuation of hedge accounting provided that other hedge accounting criteria continue to be met. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted, and should be applied prospectively. However, entities may elect to apply a modified retrospective approach to redesignate hedges that were derecognized in a prior period presented in the financial statements because of a novation. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Contingent Put and Call Options in Debt Instruments

In March 2016, the FASB issued amended guidance to clarify the requirements for determining when contingent put and call options embedded in debt instruments should be bifurcated from the debt instrument and accounted for separately as derivatives. A four-step decision sequence should be followed in determining whether such options are clearly and closely related to the economic characteristics and risks of the debt instrument, which determines whether bifurcation is necessary. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted, and should be applied on a modified retrospective basis for debt instruments existing as of the beginning of the fiscal year for which the amendments are effective. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

61

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Simplifying Transition to the Equity Method of Accounting

In March 2016, the FASB issued amended guidance to eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting, eliminating the requirement to retrospectively apply the equity method of accounting back to the date of the initial investment. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted, and should be applied prospectively to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Accounting for Share-Based Payments to Employees

In March 2016, the FASB issued amended guidance simplifying the accounting for share-based compensation paid to employees. The amended guidance 1) requires excess tax benefits and tax deficiencies on share-based payments to employees to be recognized directly to income tax expense or benefit in the Condensed Consolidated Income Statements; 2) requires excess tax benefits to be included as operating activities on the Condensed Consolidated Statements of Cash Flows; 3) provides entities with the option of making an accounting policy election to account for forfeitures of share-based payments as they occur instead of estimating the awards expected to be forfeited; and 4) changes the threshold to qualify for equity classification to permit withholdings up to the maximum statutory tax rate in the applicable jurisdiction. In addition, excess tax benefits and tax deficiencies are considered discrete items in the reporting period they occur and are not included in the estimate of an entity’s annual effective tax rate. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. The majority of the amendments should be applied using a modified retrospective approach with a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The amendments related to the presentation of excess tax benefits on the Condensed Consolidated Statements of Cash Flows may be applied prospectively or retrospectively. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

62

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

4. Investment Securities

The following tables provide the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and other and held-to-maturity investment securities portfolios as of:

March 31, 2016 ($ in millions)	Amortized    Cost		Unrealized Gains		Unrealized Losses			Fair       Value
Available-for-sale and other securities:
U.S. Treasury and federal agencies securities	$	1,131		30		-			1,161
Obligations of states and political subdivisions securities		50		2		-			52
Mortgage-backed securities:
Agency residential mortgage-backed securities(a)		14,586		545		(2	)		15,129
Agency commercial mortgage-backed securities		7,837		368		-			8,205
Non-agency commercial mortgage-backed securities		3,005		115		-			3,120
Asset-backed securities and other debt securities		1,526		13		(19	)		1,520
Equity securities(b)		703		2		(1	)		704
Total available-for-sale and other securities	$	28,838		1,075		(22	)		29,891
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	62		-		-			62
Asset-backed securities and other debt securities		2		-		-			2
Total held-to-maturity securities	$	64		-		-			64

(a) Includes interest-only mortgage-backed securities of $41 as of March 31, 2016 recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income.

(b) Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355 and $1, respectively, at March 31, 2016, that are carried at cost, and certain mutual fund and equity security holdings.

December 31, 2015 ($ in millions)	Amortized    Cost		Unrealized Gains		Unrealized Losses			Fair       Value
Available-for-sale and other securities:
U.S. Treasury and federal agencies securities	$	1,155		32		-			1,187
Obligations of states and political subdivisions securities		50		2		-			52
Mortgage-backed securities:
Agency residential mortgage-backed securities(a)		14,811		283		(13	)		15,081
Agency commercial mortgage-backed securities		7,795		100		(33	)		7,862
Non-agency commercial mortgage-backed securities		2,801		35		(32	)		2,804
Asset-backed securities and other debt securities		1,363		13		(21	)		1,355
Equity securities(b)		703		2		(2	)		703
Total available-for-sale and other securities	$	28,678		467		(101	)		29,044
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	68		-		-			68
Asset-backed securities and other debt securities		2		-		-			2
Total held-to-maturity securities	$	70		-		-			70

(a) Includes interest-only mortgage-backed securities of $50 as of December 31, 2015, recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income.

(b) Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355, and $1, respectively, at December 31, 2015, that are carried at cost, and certain mutual fund and equity security holdings.

The following table presents realized gains and losses that were recognized in income from available-for-sale securities:

		For the three months ended March 31,
($ in millions)		2016			2015
Realized gains	$		15			15
Realized losses			(4	)		(2)
OTTI			(3	)		(1)
Net realized gains(a)	$		8			12

(a) Excludes net losses on interest-only mortgage-backed securities of $6 and $9 for the three months ended March 31, 2016 and March 31, 2015, respectively.

63

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Trading securities were $405 million as of March 31, 2016, compared to $386 million at December 31, 2015. The following table presents total gains and losses that were recognized in income from trading securities:

		For the three months ended March 31,
($ in millions)		2016			2015
Realized gains(a)	$		2			1
Realized losses(b)			(4	)		(3)
Net unrealized gains(c)			1			1
Total trading securities losses	$		(1	)		(1)

(a) Includes realized gains of $2 and $1 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

(b) Includes realized losses of $4 and $3 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

(c) Includes an immaterial amount of net unrealized gains and losses during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

At March 31, 2016 and December 31, 2015, securities with a fair value of $10.4 billion and $11.0 billion, respectively, were pledged to secure borrowings, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law.

The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity investment securities as of March 31, 2016 are shown in the following table:

		Available-for-Sale and Other				Held-to-Maturity
($ in millions)		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Debt securities:(a)
Less than 1 year	$		835		857		37		37
1-5 years			9,003		9,329		12		12
5-10 years			16,480		17,146		13		13
Over 10 years			1,817		1,855		2		2
Equity securities			703		704		-		-
Total	$		28,838		29,891		64		64

(a) Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties.

The following table provides the fair value and gross unrealized losses on available-for-sale and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of:

		Less than 12 months					12 months or more					Total
($ in millions)		Fair Value		Unrealized     Losses			Fair Value		Unrealized     Losses			Fair Value		Unrealized     Losses
March 31, 2016
Agency residential mortgage-backed securities	$		268		(2	)		-		-			268		(2)
Asset-backed securities and other debt securities			499		(8	)		266		(11	)		765		(19)
Equity securities			-		-			31		(1	)		31		(1)
Total	$		767		(10	)		297		(12	)		1,064		(22)
December 31, 2015
Agency residential mortgage-backed securities	$		2,903		(13	)		-		-			2,903		(13)
Agency commercial mortgage-backed securities			3,111		(33	)		-		-			3,111		(33)
Non-agency commercial mortgage-backed securities			1,610		(32	)		-		-			1,610		(32)
Asset-backed securities and other debt securities			623		(11	)		226		(10	)		849		(21)
Equity securities			1		(1	)		37		(1	)		38		(2)
Total	$		8,248		(90	)		263		(11	)		8,511		(101)

Other-Than-Temporary Impairments

The Bancorp recognized $2 million and $1 million of OTTI on its available-for sale and other debt securities, included in securities gains, net, in the Condensed Consolidated Statements of Income during the three months ended March 31, 2016 and 2015, respectively. The Bancorp recognized $1 million of OTTI on its available-for-sale equity securities, included in securities gains, net, in the Condensed Consolidated Statements of Income during the three months ended March 31, 2016. The Bancorp did not recognize OTTI on its held-to-maturity debt securities during the three months ended March 31, 2016. The Bancorp did not recognize OTTI on any of its available-for-sale equity securities or its held-to-maturity debt securities during the three months ended March 31, 2015. At March 31, 2016, 2% of unrealized losses in the available-for-sale and other securities portfolio were represented by non-rated securities, compared to 1% at December 31, 2015.

64

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

5. Loans and Leases

The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. Lending activities are generally concentrated within those states in which the Bancorp has banking centers and are primarily located in the Midwestern and Southeastern regions of the United States. The Bancorp’s commercial loan portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses inherent in the portfolio. For further information on credit quality and the ALLL, refer to Note 6.

The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans and leases classified based upon product or collateral as of:

($ in millions)	March 31,         2016		December 31,     2015
Loans held for sale:
Commercial and industrial loans	$	8		20
Commercial mortgage loans		10		34
Residential mortgage loans		668		708
Home equity		19		35
Automobile loans		1		4
Credit card		97		101
Other consumer loans and leases		-		1
Total loans held for sale	$	803		903
Portfolio loans and leases:
Commercial and industrial loans	$	43,433		42,131
Commercial mortgage loans		6,864		6,957
Commercial construction loans		3,428		3,214
Commercial leases		3,956		3,854
Total commercial loans and leases	$	57,681		56,156
Residential mortgage loans		13,895		13,716
Home equity		8,112		8,301
Automobile loans		11,128		11,493
Credit card		2,138		2,259
Other consumer loans and leases		651		657
Total consumer loans and leases	$	35,924		36,426
Total portfolio loans and leases	$	93,605		92,582

Total portfolio loans and leases are recorded net of unearned income, which totaled $601 million as of March 31, 2016 and $624 million as of December 31, 2015. Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts, deferred loan fees and costs and fair value adjustments (associated with acquired loans or loans designated at fair value upon origination) which totaled a net premium of $223 million and $220 million as of March 31, 2016 and December 31, 2015, respectively.

The Bancorp’s FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $12.1 billion and $11.9 billion at March 31, 2016 and December 31, 2015, respectively, pledged at the FHLB, and loans of $33.5 billion and $33.7 billion at March 31, 2016 and December 31, 2015, respectively, pledged at the FRB.

65

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents a summary of the total loans and leases owned by the Bancorp as of:

		March 31,          2016		December 31,     2015		March 31,     2016		December 31,       2015
($ in millions)		Carrying Value				90 Days Past Due       and Still Accruing
Commercial and industrial loans	$		43,441		42,151		3		7
Commercial mortgage loans			6,874		6,991		-		-
Commercial construction loans			3,428		3,214		-		-
Commercial leases			3,956		3,854		-		-
Residential mortgage loans			14,563		14,424		44		40
Home equity			8,131		8,336		-		-
Automobile loans			11,129		11,497		8		10
Credit card			2,235		2,360		18		18
Other consumer loans and leases			651		658		-		-
Total loans and leases	$		94,408		93,485		73		75
Less: Loans held for sale			803		903
Total portfolio loans and leases	$		93,605		92,582

The following table presents a summary of net charge-offs for the three months ended March 31:

($ in millions)	2016		2015
Commercial and industrial loans	$	46		38
Commercial mortgage loans		6		1
Commercial leases		2		-
Residential mortgage loans		2		6
Home equity		8		14
Automobile loans		9		8
Credit card		20		21
Other consumer loans and leases		3		3
Total net charge-offs	$	96		91

66

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

6. Credit Quality and the Allowance for Loan and Lease Losses

The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class.

Allowance for Loan and Lease Losses

The following tables summarize transactions in the ALLL by portfolio segment:

For the three months ended March 31, 2016 ($ in millions)	Commercial			Residential   Mortgage			Consumer			Unallocated			Total
Balance, beginning of period	$	840			100			217			115			1,272
Losses charged-off		(60	)		(4	)		(52	)		-			(116	)
Recoveries of losses previously charged-off		6			2			12			-			20
Provision for loan and lease losses		81			-			37			1			119
Balance, end of period	$	867			98			214			116			1,295
For the three months ended March 31, 2015 ($ in millions)	Commercial			Residential   Mortgage			Consumer			Unallocated			Total
Balance, beginning of period	$	875			104			237			106			1,322
Losses charged-off		(48	)		(9	)		(58	)		-			(115	)
Recoveries of losses previously charged-off		9			3			12			-			24
Provision for loan and lease losses		16			5			50			(2	)		69
Balance, end of period	$	852			103			241			104			1,300
The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment:
As of March 31, 2016 ($ in millions)	Commercial			Residential   Mortgage			Consumer			Unallocated			Total
ALLL:(a)
Individually evaluated for impairment	$	102	(c)		66			48			-			216
Collectively evaluated for impairment		765			32			166			-			963
Unallocated		-			-			-			116			116
Total ALLL	$	867			98			214			116			1,295
Portfolio loans and leases:(b)
Individually evaluated for impairment	$	1,022	(c)		655			415			-			2,092
Collectively evaluated for impairment		56,659			13,078			21,614			-			91,351
Loans acquired with deteriorated credit quality		-			2			-			-			2
Total portfolio loans and leases	$	57,681			13,735			22,029			-			93,445

(a) Includes $5 related to leveraged leases at March 31, 2016.

(b) Excludes $160 of residential mortgage loans measured at fair value, and includes $812 of leveraged leases, net of unearned income at March 31, 2016.

(c) Includes five restructured loans at March 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $27 and an ALLL of $15.

As of December 31, 2015 ($ in millions)	Commercial			Residential   Mortgage		Consumer		Unallocated		Total
ALLL:(a)
Individually evaluated for impairment	$	119	(c)		67		49		-		235
Collectively evaluated for impairment		721			33		168		-		922
Unallocated		-			-		-		115		115
Total ALLL	$	840			100		217		115		1,272
Portfolio loans and leases:(b)
Individually evaluated for impairment	$	815	(c)		630		424		-		1,869
Collectively evaluated for impairment		55,341			12,917		22,286		-		90,544
Loans acquired with deteriorated credit quality		-			2		-		-		2
Total portfolio loans and leases	$	56,156			13,549		22,710		-		92,415

(a) Includes $5 related to leveraged leases at December 31, 2015.

(b) Excludes $167 of residential mortgage loans measured at fair value, and includes $801 of leveraged leases, net of unearned income at December 31, 2015.

(c) Includes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $27 and an ALLL of $15.

67

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

CREDIT RISK PROFILE

Commercial Portfolio Segment

For purposes of monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leases.

To facilitate the monitoring of credit quality within the commercial portfolio segment, and for purposes of analyzing historical loss rates used in the determination of the ALLL for the commercial portfolio segment, the Bancorp utilizes the following categories of credit grades: pass, special mention, substandard, doubtful and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter.

Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated at least annually based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter.

The Bancorp assigns a special mention rating to loans and leases that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or lease or the Bancorp’s credit position.

The Bancorp assigns a substandard rating to loans and leases that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans and leases have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Bancorp will sustain some loss if the deficiencies noted are not addressed and corrected.

The Bancorp assigns a doubtful rating to loans and leases that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans.

Loans and leases classified as loss are considered uncollectible and are charged-off in the period in which they are determined to be uncollectible. Because loans and leases in this category are fully charged-off, they are not included in the following tables.

The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class:

As of March 31, 2016 ($ in millions)	Pass		Special     Mention		Substandard		Doubtful		Total
Commercial and industrial loans	$	39,909		1,513		1,987		24		43,433
Commercial mortgage owner-occupied loans		3,305		128		177		3		3,613
Commercial mortgage nonowner-occupied loans		3,063		65		123		-		3,251
Commercial construction loans		3,423		1		4		-		3,428
Commercial leases		3,848		74		34		-		3,956
Total commercial loans and leases	$	53,548		1,781		2,325		27		57,681
As of December 31, 2015 ($ in millions)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and industrial loans	$	38,756		1,633		1,742		-		42,131
Commercial mortgage owner-occupied loans		3,344		124		191		-		3,659
Commercial mortgage nonowner-occupied loans		3,105		63		130		-		3,298
Commercial construction loans		3,201		4		9		-		3,214
Commercial leases		3,724		93		37		-		3,854
Total commercial loans and leases	$	52,130		1,917		2,109		-		56,156

Residential Mortgage and Consumer Portfolio Segments

For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, automobile loans, credit card and other consumer loans and leases. The Bancorp’s residential mortgage portfolio segment is also a separate class.

The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans, which includes both the delinquency status and performing versus nonperforming status of the loans. The delinquency status of all residential mortgage and consumer loans is presented by class in the age analysis section while the performing versus nonperforming status is presented in the following table. Refer to the nonaccrual loans and leases section of Note 1 in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015 for additional delinquency and nonperforming information.

68

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of:

		March 31, 2016				December 31, 2015
($ in millions)		Performing		Nonperforming		Performing		Nonperforming
Residential mortgage loans(a)	$		13,691		44		13,498		51
Home equity			8,032		80		8,222		79
Automobile loans			11,126		2		11,491		2
Credit card			2,106		32		2,226		33
Other consumer loans and leases			651		-		657		-
Total residential mortgage and consumer loans and leases(a)	$		35,606		158		36,094		165

(a) Excludes $160 and $167 of loans measured at fair value at March 31, 2016 and December 31, 2015, respectively.

Age Analysis of Past Due Loans and Leases

The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class:

	Current		Past Due								90 Days Past
As of March 31, 2016 ($ in millions)	Loans and Leases(c)		30-89 Days(c)		90 Days or More(c)		Total     Past Due		Total Loans and Leases		Due and Still Accruing
Commercial loans and leases:
Commercial and industrial loans	$	43,255		31		147		178		43,433		3
Commercial mortgage owner-occupied loans		3,580		6		27		33		3,613		-
Commercial mortgage nonowner-occupied loans		3,210		17		24		41		3,251		-
Commercial construction loans		3,428		-		-		-		3,428		-
Commercial leases		3,952		-		4		4		3,956		-
Residential mortgage loans(a)(b)		13,613		32		90		122		13,735		44
Consumer loans and leases:
Home equity		7,980		72		60		132		8,112		-
Automobile loans		11,060		58		10		68		11,128		8
Credit card		2,089		25		24		49		2,138		18
Other consumer loans and leases		650		1		-		1		651		-
Total portfolio loans and leases(a)	$	92,817		242		386		628		93,445		73

(a) Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.

(b) Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of March 31, 2016, $95 of these loans were 30-89 days past due and $315 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2016 due to claim denials and curtailments associated with these insured or guaranteed loans.

(c) Includes accrual and nonaccrual loans and leases.

	Current		Past Due								90 Days Past
As of December 31, 2015 ($ in millions)	Loans and Leases(c)		30-89 Days(c)		90 Days Greater(c)		Total     Past Due		Total Loans and Leases		Due and Still Accruing
Commercial loans and leases:
Commercial and industrial loans	$	41,996		55		80		135		42,131		7
Commercial mortgage owner-occupied loans		3,610		15		34		49		3,659		-
Commercial mortgage nonowner-occupied loans		3,262		9		27		36		3,298		-
Commercial construction loans		3,214		-		-		-		3,214		-
Commercial leases		3,850		3		1		4		3,854		-
Residential mortgage loans(a)(b)		13,420		37		92		129		13,549		40
Consumer loans and leases:
Home equity		8,158		82		61		143		8,301		-
Automobile loans		11,407		75		11		86		11,493		10
Credit card		2,207		29		23		52		2,259		18
Other consumer loans and leases		656		1		-		1		657		-
Total portfolio loans and leases(a)	$	91,780		306		329		635		92,415		75

(a) Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.

(b) Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2015, $102 of these loans were 30-89 days past due and $335 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans.

(c) Includes accrual and nonaccrual loans and leases.

69

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Impaired Portfolio Loans and Leases

Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans and leases that are restructured in a TDR. The Bancorp considers the current value of collateral, credit quality of any guarantees, the loan structure and other factors when evaluating whether an individual loan or lease is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower, and the Bancorp’s evaluation of the borrower’s management. Smaller-balance homogenous loans or leases that are collectively evaluated for impairment are not included in the following tables.

The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR:

As of March 31, 2016 ($ in millions)	Unpaid         Principal          Balance		Recorded    Investment			ALLL
With a related ALLL:
Commercial loans and leases:
Commercial and industrial loans	$	516		441			81
Commercial mortgage owner-occupied loans(b)		26		16			3
Commercial mortgage nonowner-occupied loans		57		53			2
Commercial leases		4		2			1
Restructured residential mortgage loans		453		440			66
Restructured consumer loans and leases:
Home equity		220		220			32
Automobile loans		16		17			2
Credit card		58		58			14
Total impaired portfolio loans and leases with a related ALLL	$	1,350		1,247			201
With no related ALLL:
Commercial loans and leases:
Commercial and industrial loans	$	372		320			-
Commercial mortgage owner-occupied loans		58		55			-
Commercial mortgage nonowner-occupied loans		115		101			-
Commercial construction loans		4		4			-
Commercial leases		3		3			-
Restructured residential mortgage loans		230		215			-
Restructured consumer loans and leases:
Home equity		120		117			-
Automobile loans		3		3			-
Total impaired portfolio loans and leases with no related ALLL	$	905		818			-
Total impaired portfolio loans and leases	$	2,255		2,065	(a)		201

(a) Includes $461, $636 and $362, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $210, $19 and $53, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2016.

(b) Excludes five restructured loans at March 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

70

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

As of December 31, 2015 ($ in millions)	Unpaid         Principal          Balance		Recorded   Investment			ALLL
With a related ALLL:
Commercial loans and leases:
Commercial and industrial loans	$	412		346			84
Commercial mortgage owner-occupied loans(b)		28		21			5
Commercial mortgage nonowner-occupied loans		75		64			12
Commercial construction loans		4		4			2
Commercial leases		3		3			1
Restructured residential mortgage loans		450		444			67
Restructured consumer loans and leases:
Home equity		226		225			32
Automobile loans		17		16			2
Credit card		61		61			15
Total impaired portfolio loans and leases with a related ALLL	$	1,276		1,184			220
With no related ALLL:
Commercial loans and leases:
Commercial and industrial loans	$	228		182			-
Commercial mortgage owner-occupied loans		54		51			-
Commercial mortgage nonowner-occupied loans		126		111			-
Commercial construction loans		9		5			-
Commercial leases		1		1			-
Restructured residential mortgage loans		210		186			-
Restructured consumer loans and leases:
Home equity		122		119			-
Automobile loans		3		3			-
Total impaired portfolio loans and leases with no related ALLL	$	753		658			-
Total impaired portfolio loans and leases	$	2,029		1,842	(a)		220

(a) Includes $491, $607 and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015.

(b) Excludes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the three months ended:

		March 31, 2016				March 31, 2015
($ in millions)		Average Recorded Investment		Interest Income         Recognized		Average Recorded     Investment		Interest Income Recognized
Commercial loans and leases:
Commercial and industrial loans	$		645		2		742		5
Commercial mortgage owner-occupied loans(a)			71		-		112		1
Commercial mortgage nonowner-occupied loans			165		1		262		2
Commercial construction loans			7		-		62		-
Commercial leases			5		-		5		-
Restructured residential mortgage loans			642		6		552		6
Restructured consumer loans and leases:
Home equity			340		3		375		3
Automobile loans			19		-		23		-
Credit card			60		1		75		2
Total average impaired portfolio loans and leases	$		1,954		13		2,208		19

(a) Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $27 and $28 at March 31, 2016 and March 31, 2015, respectively, and an immaterial amount of interest income recognized for both the three months ended March 31, 2016 and March 31, 2015.

71

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Nonperforming Assets

Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property.

The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of:

($ in millions)	March 31,     2016		December 31,   2015
Commercial loans and leases:
Commercial and industrial loans	$	460		259
Commercial mortgage owner-occupied loans(a)		41		46
Commercial mortgage nonowner-occupied loans		37		35
Commercial leases		5		1
Total nonaccrual portfolio commercial loans and leases		543		341
Residential mortgage loans		44		51
Consumer loans and leases:
Home equity		80		79
Automobile loans		2		2
Credit card		32		33
Total nonaccrual portfolio consumer loans and leases		114		114
Total nonaccrual portfolio loans and leases(b)(c)	$	701		506
OREO and other repossessed property		124		141
Total nonperforming portfolio assets(b)(c)	$	825		647

(a) Excludes $20 of restructured nonaccrual loans at both March 31, 2016 and December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party.

(b) Excludes $5 and $12 of nonaccrual loans held for sale at March 31, 2016 and December 31, 2015, respectively.

(c) Includes $5 and $6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2016 and December 31, 2015, respectively, and $1 and $2 of restructured nonaccrual government insured commercial loans at March 31, 2016 and December 31, 2015, respectively.

The Bancorp’s recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $290 million and $303 million as of March 31, 2016 and December 31, 2015, respectively.

Troubled Debt Restructurings

If a borrower is experiencing financial difficulty, the Bancorp may consider, in certain circumstances, modifying the terms of their loan to maximize collection of amounts due. Within each of the Bancorp’s loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension of the loan’s maturity date with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan’s accrued interest. Modifying the terms of a loan may result in an increase or decrease to the ALLL depending upon the terms modified, the method used to measure the ALLL for a loan prior to modification, and whether any charge-offs were recorded on the loan before or at the time of modification. Refer to the ALLL section of Note 1 in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015 for information on the Bancorp’s ALLL methodology. Upon modification of a loan, the Bancorp measures the related impairment as the difference between the estimated future cash flows expected to be collected on the modified loan, discounted at the original effective yield of the loan, and the carrying value of the loan. The resulting measurement may result in the need for minimal or no allowance because it is probable that all cash flows will be collected under the modified terms of the loan. In addition, if the stated interest rate was increased in a TDR, the cash flows on the modified loan, using the pre-modification interest rate as the discount rate, often exceed the recorded investment of the loan. Conversely, upon a modification that reduces the stated interest rate on a loan, the Bancorp recognizes an impairment loss as an increase to the ALLL. If a TDR involves a reduction of the principal balance of the loan or the loan’s accrued interest, that amount is charged off to the ALLL.

As of March 31, 2016, the Bancorp had $46 million and $22 million in line of credit and letter of credit commitments, respectively, compared to $39 million and $23 million in line of credit and letter of credit commitments as of December 31, 2015, respectively, to lend additional funds to borrowers whose terms have been modified in a TDR.

72

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The following tables provide a summary of loans, by class, modified in a TDR by the Bancorp during the three months ended:

March 31, 2016 ($ in millions)(a)	Number of loans modified in a  TDR during the period(b)		Recorded investment in loans modified in a TDR during the period		Increase (Decrease) to ALLL upon modification		Charge-offs recognized upon modification
Commercial loans:
Commercial and industrial loans		24		$            56		(2)		-
Commercial mortgage owner-occupied loans		7		6		(2)		-
Commercial mortgage nonowner-occupied loans		2		-		-		-
Residential mortgage loans		243		36		2		-
Consumer loans:
Home equity		64		5		-		-
Automobile loans		78		1		-		-
Credit card		2,592		12		2		1
Total portfolio loans		3,010		$          116		-		1
(a)    Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b)    Represents number of loans post-modification and excludes loans previously modified in a TDR.
March 31, 2015 ($ in millions)(a)	Number of loans modified in a TDR during the period(b)		Recorded investment in loans modified in a TDR during the period		Increase (Decrease) to ALLL upon modification		Charge-offs recognized upon modification
Commercial loans:
Commercial and industrial loans		21		$            18		(7)		3
Commercial mortgage owner-occupied loans		7		8		(1)		-
Commercial mortgage nonowner-occupied loans		6		3		-		-
Residential mortgage loans		300		42		1		-
Consumer loans:
Home equity		76		4		-		-
Automobile loans		131		2		-		-
Credit card		3,667		19		4		-
Total portfolio loans		4,208		$            96		(3)		3
(a)    Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b)    Represents number of loans post-modification and excludes loans previously modified in a TDR.

The Bancorp considers TDRs that become 90 days or more past due under the modified terms as subsequently defaulted. For commercial loans not subject to individual review for impairment, loss rates that are applied for purposes of determining the ALLL include historical losses associated with subsequent defaults on loans previously modified in a TDR. For consumer loans, the Bancorp performs a qualitative assessment of the adequacy of the consumer ALLL by comparing the consumer ALLL to forecasted consumer losses over the projected loss emergence period (the forecasted losses include the impact of subsequent defaults of consumer TDRs). When a residential mortgage, home equity, automobile or other consumer loan that has been modified in a TDR subsequently defaults, the present value of expected cash flows used in the measurement of the potential impairment loss is generally limited to the expected net proceeds from the sale of the loan’s underlying collateral and any resulting impairment loss is reflected as a charge-off or an increase in ALLL. The Bancorp recognizes ALLL for the entire balance of the credit card loans modified in a TDR that subsequently default.

The following tables provide a summary of TDRs that subsequently defaulted during the three months ended March 31, 2016 and 2015 that was within twelve months of the restructuring date:

March 31, 2016 ($ in millions)(a)	Number of Contracts		Recorded   Investment
Commercial loans and leases:
Commercial and industrial loans		1	$	-
Commercial mortgage nonowner-occupied loans		1		-
Residential mortgage loans		53		7
Consumer loans and leases:
Home equity		6		1
Credit card		423		2
Total portfolio loans and leases		484	$	10

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.

73

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

March 31, 2015 ($ in millions)(a)	Number of Contracts			Recorded     Investment
Residential mortgage loans		40	$		5
Consumer loans and leases:
Home equity		5			-
Automobile loans		4			-
Credit card		588			3
Total portfolio loans and leases		637	$		8

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.

7. Bank Premises and Equipment

The following table provides a summary of bank premises and equipment as of:

($ in millions)		March 31, 2016		December 31, 2015
Land and improvements(a)	$		682		685
Buildings			1,695		1,755
Equipment			1,715		1,696
Leasehold improvements			403		403
Construction in progress			86		85
Bank premises and equipment held for sale:
Land and improvements			41		55
Buildings			23		20
Equipment			2		3
Leasehold improvements			2		3
Accumulated depreciation and amortization			(2,464)		(2,466)
Total bank premises and equipment	$		2,185		2,239

(a) At March 31, 2016 and December 31, 2015, land and improvements included $101 and $102, respectively, associated with parcels of undeveloped land intended for future branch expansion.

The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine that it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. On June 16, 2015, the Bancorp’s Board of Directors authorized management to pursue a plan to further develop its distribution strategy, including a plan to consolidate and/or sell certain operating branch locations and certain parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion (the “Branch Consolidation and Sales Plan”).

On September 3, 2015, the Bancorp announced the decision to enter into an agreement to sell branch banking locations, retail accounts, certain private banking deposits and related loan relationships in the Pittsburgh MSA to First National Bank of Pennsylvania. On September 30, 2015, the Bancorp announced the decision to enter into an agreement to sell its retail operations, including retail accounts, certain private banking deposits and related loan relationships in the St. Louis MSA to Great Southern Bank. Both transactions are part of the Branch Consolidation and Sales Plan.

On January 29, 2016, the Bancorp closed the previously announced sale in the St. Louis MSA to Great Southern Bank. The sale included loans, premises and equipment and deposits with aggregate carrying amounts of $158 million, $18 million and $228 million, respectively. The Bancorp recorded a gain on the sale of $8 million which was recorded in other noninterest income in the Condensed Consolidated Statements of Income.

Pursuant to the Branch Consolidation and Sales Plan, the Bancorp intended to consolidate and/or sell 60 operating branch locations and to sell an additional 23 parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion as of March 31, 2016.

The sale of the Pittsburgh MSA retail operations to First National Bank of Pennsylvania closed on April 22, 2016. For further information on this transaction, refer to Note 22.

The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. Impairment losses associated with such assessments and lower of cost or market adjustments were $2 million and $4 million for the three months ended March 31, 2016 and 2015, respectively. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income.

74

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table summarizes the assets and liabilities classified as held for sale as a result of the Branch Consolidation and Sales Plan as of:

($ in millions)	March 31, 2016(d)
Assets:
Loans held for sale:
Commercial and industrial loans	$	8
Commercial mortgage loans		5
Residential mortgage loans		68
Home equity		19
Automobile loans		1
Total loans held for sale(a)	$	101
Bank premises and equipment held for sale (included in the preceding table):
Land and improvements(b)		28
Buildings(b)		10
Equipment(b)		2
Leasehold improvements(b)		2
Total bank premises and equipment held for sale (included in the preceding table)	$	42
Total assets held for sale	$	143
Liabilities:
Deposits held for sale:
Noninterest-bearing deposits	$	51
Interest-bearing deposits		280
Total deposits held for sale(c)	$	331
Total liabilities held for sale	$	331

(a) Included in loans held for sale in the Condensed Consolidated Balance Sheets.

(b) Included in bank premises and equipment in the Condensed Consolidated Balance Sheets.

(c) Included in noninterest-bearing deposits and interest-bearing deposits in the Condensed Consolidated Balance Sheets.

(d) Included in the Branch Banking, Consumer Lending and Investment Advisors business segments.

8. Intangible Assets

Intangible assets consist of core deposit intangibles, customer lists, non-compete agreements and cardholder relationships. Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives. Intangible assets have an estimated remaining weighted-average life at March 31, 2016 of 4.2 years.

The details of the Bancorp’s intangible assets are shown in the following table:

($ in millions)	Gross Carrying Amount		Accumulated             Amortization		Net Carrying         Amount
As of March 31, 2016
Core deposit intangibles	$	34		(26)		8
Other		32		(29)		3
Total intangible assets	$	66		(55)		11
As of December 31, 2015
Core deposit intangibles	$	34		(26)		8
Other		33		(29)		4
Total intangible assets	$	67		(55)		12

As of March 31, 2016, all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was immaterial for the three months ended March 31, 2016 and $1 million for the three months ended March 31, 2015.

The Bancorp’s projections of amortization expense shown below are based on existing asset balances as of March 31, 2016. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2016 through 2020 is as follows:

($ in millions)		Total
Remainder of 2016	$		1
2017			2
2018			2
2019			1
2020			1

75

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

9. Variable Interest Entities

The Bancorp, in the normal course of business, engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equity to finance their activities without additional subordinated financial support or the equity investors of the entities as a group lack any of the characteristics of a controlling interest. The Bancorp evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Bancorp is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that requires a reconsideration. If the Bancorp is determined to be the primary beneficiary of a VIE, it must account for the VIE as a consolidated subsidiary. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accounting or other accounting standards as appropriate.

Consolidated VIEs

The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Condensed Consolidated Balance Sheets as of:

March 31, 2016 ($ in millions)		Automobile Loan Securitizations		CDC Investments		Total
Assets:
Cash and due from banks	$		146		1		147
Commercial mortgage loans			-		47		47
Automobile loans			2,131		-		2,131
ALLL			(10)		(17)		(27	)
Other assets			10		1		11
Total assets	$		2,277		32		2,309
Liabilities:
Other liabilities	$		4		-		4
Long-term debt			2,102		-		2,102
Total liabilities	$		2,106		-		2,106
Noncontrolling interests	$		-		32		32
December 31, 2015 ($ in millions)		Automobile Loan Securitizations		CDC Investments		Total
Assets:
Cash and due from banks	$		151		1		152
Commercial mortgage loans			-		47		47
Automobile loans			2,490		-		2,490
ALLL			(11)		(17)		(28	)
Other assets			14		-		14
Total assets	$		2,644		31		2,675
Liabilities
Other liabilities	$		3		-		3
Long-term debt			2,487		-		2,487
Total liabilities	$		2,490		-		2,490
Noncontrolling interests	$		-		31		31

Automobile Loan Securitizations

In securitization transactions that occurred during the years ended December 31, 2015 and 2014, the Bancorp transferred an aggregate amount of $750 million and $3.8 billion, respectively, in consumer automobile loans to bankruptcy remote trusts which were deemed to be VIEs. The primary purposes of the VIEs were to issue asset-backed securities with varying levels of credit subordination and payment priority, as well as residual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIEs and, therefore, has an obligation to absorb losses and a right to receive benefits from the VIEs that could potentially be significant to the VIEs. In addition, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIEs that most significantly impact the economic performance of the VIEs. As a result, the Bancorp concluded that it is the primary beneficiary of the VIEs and, therefore, has consolidated these VIEs. The assets of the VIEs are restricted to the settlement of the asset-backed securities and other obligations of the VIEs. Third-party holders of the notes do not have recourse to the general assets of the Bancorp.

The economic performance of the VIEs is most significantly impacted by the performance of the underlying loans. The principal risks to which the VIEs are exposed include credit risk and prepayment risk. The credit and prepayment risks are managed through credit enhancements in the form of reserve accounts, overcollateralization, excess interest on the loans and the subordination of certain classes of asset-backed securities to other classes.

CDC Investments

CDC, a wholly-owned indirect subsidiary of the Bancorp, was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks. CDC generally co-invests with other unrelated companies and/or individuals and typically makes investments in a separate legal entity that owns the property under development.

76

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The entities are usually formed as limited partnerships and LLCs and CDC typically invests as a limited partner/investor member in the form of equity contributions. The economic performance of the VIEs is driven by the performance of their underlying investment projects as well as the VIEs’ ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. The Bancorp’s subsidiaries serve as the managing member of certain LLCs invested in business revitalization projects and have the right to make decisions that most significantly impact the economic performance of the LLCs. Additionally, the investor members do not own substantive kick-out rights or substantive participating rights over the managing member. The Bancorp has provided an indemnification guarantee to the investor member of these LLCs related to the qualification of tax credits generated by the investor members’ investment. Accordingly, the Bancorp concluded that it is the primary beneficiary and, therefore, has consolidated these VIEs. As a result, the investor members’ interests in these VIEs are presented as noncontrolling interests in the Condensed Consolidated Financial Statements. This presentation includes reporting separately the equity attributable to the noncontrolling interests in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Changes in Equity and reporting separately the comprehensive income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Comprehensive Income and the net income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Income. The Bancorp’s maximum exposure related to these indemnifications at March 31, 2016 and December 31, 2015 was $28 million and $27 million, respectively, which is based on an amount required to meet the investor member’s defined target rate of return.

Non-consolidated VIEs

The following tables provide a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of:

March 31, 2016 ($ in millions)	Total Assets	Total         Liabilities	Maximum             Exposure
CDC investments	$              1,410	329	1,410
Private equity investments	212	-	270
Loans provided to VIEs	1,842	-	2,858
December 31, 2015 ($ in millions)	Total Assets	Total         Liabilities	Maximum             Exposure
CDC investments	$              1,455	367	1,455
Private equity investments	211	-	271
Loans provided to VIEs	1,630	-	2,599

CDC Investments

As noted previously, CDC typically invests in VIEs as a limited partner or investor member in the form of equity contributions and has no substantive kick-out or substantive participating rights over the managing member. The Bancorp has determined that it is not the primary beneficiary of these VIEs because it lacks the power to direct the activities that most significantly impact the economic performance of the underlying project or the VIEs’ ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the managing members who exercise full and exclusive control of the operations of the VIEs. Accordingly, the Bancorp accounts for these investments under the equity method of accounting.

The Bancorp’s funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions. The Bancorp’s maximum exposure to loss as a result of its involvement with the VIEs is limited to the carrying amounts of the investments, including the unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Condensed Consolidated Balance Sheets, and the liabilities related to the unfunded commitments, which are included in other liabilities in the Condensed Consolidated Balance Sheets, are included in the previous tables for all periods presented. The Bancorp has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose the Bancorp to a loss. In certain arrangements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, thereby minimizing a portion of the Bancorp’s risk.

At both March 31, 2016 and December 31, 2015, the Bancorp’s CDC investments included $1.3 billion of investments in affordable housing tax credits recognized in other assets in the Condensed Consolidated Balance Sheets. The unfunded commitments related to these investments were $319 million and $356 million at March 31, 2016 and December 31, 2015, respectively. The unfunded commitments as of March 31, 2016 are expected to be funded from 2016 to 2033.

77

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The Bancorp has accounted for all of its investments in qualified affordable housing tax credits using the equity method of accounting. The following table summarizes the impact to the Condensed Consolidated Statements of Income relating to investments in qualified affordable housing investments:

	Condensed Consolidated		For the three months     ended March 31,
($ in millions)	Statements of Income Caption		2016			2015
Pre-tax investment and impairment losses(a)	Other noninterest expense	$		36			34
Tax credits and other benefits	Applicable income tax expense			(55	)		(52)

(a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during three months ended March 31, 2016 and 2015.

Private Equity Investments

The Bancorp, through Fifth Third Capital Holdings, a wholly-owned indirect subsidiary of the Bancorp, invests as a limited partner in private equity funds which provide the Bancorp an opportunity to obtain higher rates of return on invested capital, while also creating cross-selling opportunities for the Bancorp’s commercial products. Each of the limited partnerships has an unrelated third-party general partner responsible for appointing the fund manager. The Bancorp has not been appointed fund manager for any of these private equity funds. The funds finance primarily all of their activities from the partners’ capital contributions and investment returns. The Bancorp has determined that it is not the primary beneficiary of the funds because it does not have the obligation to absorb the funds’ expected losses or the right to receive the funds’ expected residual returns that could potentially be significant to the funds’ and lacks the power to direct the activities that most significantly impact the economic performance of the funds. The Bancorp, as a limited partner, does not have substantive participating or substantive kick-out rights over the general partner. Therefore, the Bancorp accounts for its investments in these limited partnerships under the equity method of accounting.

The Bancorp is exposed to losses arising from the negative performance of the underlying investments in the private equity funds. As a limited partner, the Bancorp’s maximum exposure to loss is limited to the carrying amounts of the investments plus unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Condensed Consolidated Balance Sheets, are included in the previous tables. Also, at March 31, 2016 and December 31, 2015, the unfunded commitment amounts to the funds were $58 million and $60 million, respectively. The Bancorp made capital contributions of $2 million and $10 million, respectively, to private equity funds during the three months ended March 31, 2016 and 2015. The Bancorp recognized no OTTI on its investments in private equity funds during the three months ended March 31, 2016 and 2015.

Loans Provided to VIEs

The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are generally established to finance certain consumer and small business loans originated by third parties. The entities are primarily funded through the issuance of a loan from the Bancorp or a syndication through which the Bancorp is involved. The sponsor/administrator of the entities is responsible for servicing the underlying assets in the VIEs. Because the sponsor/administrator, not the Bancorp, holds the servicing responsibilities, which include the establishment and employment of default mitigation policies and procedures, the Bancorp does not hold the power to direct the activities that most significantly impact the economic performance of the entity and, therefore, is not the primary beneficiary.

The principal risk to which these entities are exposed is credit risk related to the underlying assets. The Bancorp’s maximum exposure to loss is equal to the carrying amounts of the loans and unfunded commitments to the VIEs. The Bancorp’s outstanding loans to these VIEs are included in commercial loans in Note 5. As of March 31, 2016 and December 31, 2015, the Bancorp’s unfunded commitments to these entities were $1.0 billion and $969 million, respectively. The loans and unfunded commitments to these VIEs are included in the Bancorp’s overall analysis of the ALLL and reserve for unfunded commitments, respectively. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs.

78

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

10. Sales of Receivables and Servicing Rights

Residential Mortgage TDR Loan Sale

In March of 2015, the Bancorp recognized a $37 million gain, included in other noninterest income in the Condensed Consolidated Statements of Income, on the sale of certain HFS residential mortgage loans with a carrying value of $568 million that were previously modified in a TDR. As part of this sale, the Bancorp provided certain standard representations and warranties. Additionally, the Bancorp did not obtain servicing responsibilities on the sales of these loans and the investors have no credit recourse to the Bancorp’s other assets for failure of debtors to pay when due.

Residential Mortgage Loan Sales

The Bancorp sold fixed and adjustable-rate residential mortgage loans during the three months ended March 31, 2016 and 2015. In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties, however the investors have no recourse to the Bancorp’s other assets for failure of debtors to pay when due. The Bancorp receives annual servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates.

Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows:

		For the three months ended March 31,
($ in millions)		2016		2015
Residential mortgage loan sales(a)	$		1,114		1,001 (b)
Origination fees and gains on loan sales			42		44
Gross mortgage servicing fees			52		59

(a) Represents the unpaid principal balance at the time of the sale.

(b) Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015.

Servicing Rights

The following table presents changes in the servicing rights related to residential mortgage and automobile loans for the three months ended March 31:

($ in millions)	2016			2015
Carrying amount before valuation allowance:
Balance, beginning of period	$	1,204			1,392
Servicing rights that result from the transfer of residential mortgage loans		12			13
Amortization		(27	)		(34)
Balance, end of period	$	1,189			1,371
Valuation allowance for servicing rights:
Balance, beginning of period	$	(419	)		(534)
Provision for MSR impairment		(85	)		(48)
Balance, end of period		(504	)		(582)
Carrying amount after valuation allowance	$	685			789

The Bancorp’s projections of amortization expense shown below are based on existing asset balances and static key economic assumptions as of March 31, 2016. Future amortization expense may vary from these projections.

Estimated amortization expense for the remainder of 2016 through 2020 is as follows:

($ in millions)	Total
Remainder of 2016	$	90
2017		109
2018		98
2019		89
2020		80

Temporary impairment or impairment recovery, affected through a change in the MSR valuation allowance, is captured as a component of mortgage banking net revenue in the Condensed Consolidated Statements of Income. The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of the MSR portfolio. This strategy may include the purchase of free-standing derivatives and various available-for-sale securities. The interest income, mark-to-market adjustments and gain or loss from sale activities associated with these portfolios are expected to economically hedge a portion of the change in value of the MSR portfolio caused by fluctuating OAS spreads, earnings rates and prepayment speeds. The fair value of the servicing asset is based on the present value of expected future cash flows.

79

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table displays the beginning and ending fair value of the servicing rights for the three months ended March 31:

($ in millions)	2016		2015
Fixed-rate residential mortgage loans:
Balance, beginning of period	$	757		823
Balance, end of period		660		759
Adjustable-rate residential mortgage loans:
Balance, beginning of period		27		33
Balance, end of period		25		29
Fixed-rate automobile loans:
Balance, beginning of period		1		2
Balance, end of period		-		1

The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income:

		For the three months ended March 31,
($ in millions)		2016			2015
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio	$		96			65
Provision for MSR impairment			(85	)		(48)

As of March 31, 2016 and 2015, the key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale or securitization resulting from transactions completed during the three months ended were as follows:

		March 31, 2016				March 31, 2015
	Rate	Weighted- Average Life (in years)	Prepayment Speed (annual)	OAS     Spread     (bps)	Weighted- Average Default Rate	Weighted- Average Life (in years)	Prepayment Speed (annual)	OAS     Spread     (bps)	Weighted-  Average  Default Rate
Residential mortgage loans:
Servicing rights	Fixed	6.3	12.6 %	539	N/A	6.2	12.6 %	900	N/A
Servicing rights	Adjustable	3.0	27.5	681	N/A	3.6	23.4	1,180	N/A

Based on historical credit experience, expected credit losses for residential mortgage loan servicing rights have been deemed immaterial, as the Bancorp sold the majority of the underlying loans without recourse. At March 31, 2016 and December 31, 2015, the Bancorp serviced $57.8 billion and $59.0 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets.

At March 31, 2016, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in other assumptions are as follows:

						Prepayment Speed Assumption									Residual Servicing Cash Flows
		Fair		Weighted- Average Life					Impact of Adverse Change on Fair Value						OAS     Spread			Impact of Adverse Change on Fair Value
($ in millions)(a)	Rate	Value		(in years)		Rate			10%		20%		50%		(bps)			10%		20%
Residential mortgage loans:
Servicing rights	Fixed	$	660		5.2		14.1 %	$		(33)		(63)		(138)		603	$		(15)		(29)
Servicing rights	Adjustable		25		2.9		27.8			(2)		(3)		(7)		713			-		(1)

(a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial.

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on these variations in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. The Bancorp believes variations of these levels are reasonably possible; however, there is the potential that adverse changes in key assumptions could be even greater. Also, in the previous table, the effect of a variation in a particular assumption on the fair value of the interests that continue to be held by the Bancorp is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract these sensitivities.

80

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

11. Derivative Financial Instruments

The Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce certain risks related to interest rate, prepayment and foreign currency volatility. Additionally, the Bancorp holds derivative instruments for the benefit of its commercial customers and for other business purposes. The Bancorp does not enter into unhedged speculative derivative positions.

The Bancorp’s interest rate risk management strategy involves modifying the repricing characteristics of certain financial instruments so that changes in interest rates do not adversely affect the Bancorp’s net interest margin and cash flows. Derivative instruments that the Bancorp may use as part of its interest rate risk management strategy include interest rate swaps, interest rate floors, interest rate caps, forward contracts, forward starting interest rate swaps, options and swaptions. Interest rate swap contracts are exchanges of interest payments, such as fixed-rate payments for floating-rate payments, based on a stated notional amount and maturity date. Interest rate floors protect against declining rates, while interest rate caps protect against rising interest rates. Forward contracts are contracts in which the buyer agrees to purchase, and the seller agrees to make delivery of, a specific financial instrument at a predetermined price or yield. Options provide the purchaser with the right, but not the obligation, to purchase or sell a contracted item during a specified period at an agreed upon price. Swaptions are financial instruments granting the owner the right, but not the obligation, to enter into or cancel a swap.

Prepayment volatility arises mostly from changes in fair value of the largely fixed-rate MSR portfolio, mortgage loans and mortgage-backed securities. The Bancorp may enter into various free-standing derivatives (principal-only swaps, interest rate swaptions, interest rate floors, mortgage options, TBAs and interest rate swaps) to economically hedge prepayment volatility. Principal-only swaps are total return swaps based on changes in the value of the underlying mortgage principal-only trust. TBAs are a forward purchase agreement for a mortgage-backed securities trade whereby the terms of the security are undefined at the time the trade is made.

Foreign currency volatility occurs as the Bancorp enters into certain loans denominated in foreign currencies. Derivative instruments that the Bancorp may use to economically hedge these foreign denominated loans include foreign exchange swaps and forward contracts.

The Bancorp also enters into derivative contracts (including foreign exchange contracts, commodity contracts and interest rate contracts) for the benefit of commercial customers and other business purposes. The Bancorp economically hedges significant exposures related to these free-standing derivatives by entering into offsetting third-party contracts with approved, reputable and independent counterparties with substantially matching terms and currencies. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Bancorp’s exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. Credit risk is minimized through credit approvals, limits, counterparty collateral and monitoring procedures.

The Bancorp’s derivative assets include certain contractual features in which the Bancorp requires the counterparties to provide collateral in the form of cash and securities to offset changes in the fair value of the derivatives, including changes in the fair value due to credit risk of the counterparty. As of March 31, 2016 and December 31, 2015, the balance of collateral held by the Bancorp for derivative assets was $858 million and $821 million, respectively. The credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts as of March 31, 2016 and December 31, 2015 was $13 million and $9 million, respectively.

In measuring the fair value of derivative liabilities, the Bancorp considers its own credit risk, taking into consideration collateral maintenance requirements of certain derivative counterparties and the duration of instruments with counterparties that do not require collateral maintenance. When necessary, the Bancorp posts collateral primarily in the form of cash and securities to offset changes in fair value of the derivatives, including changes in fair value due to the Bancorp’s credit risk. As of March 31, 2016 and December 31, 2015, the balance of collateral posted by the Bancorp for derivative liabilities was $544 million and $504 million, respectively. Certain of the Bancorp’s derivative liabilities contain credit-risk related contingent features that could result in the requirement to post additional collateral upon the occurrence of specified events. As of March 31, 2016, the fair value of the additional collateral that could be required to be posted as a result of the credit-risk related contingent features being triggered was immaterial to the Condensed Consolidated Financial Statements. The posting of collateral has been determined to remove the need for further consideration of credit risk. As a result, the Bancorp determined that the impact of the Bancorp’s credit risk to the valuation of its derivative liabilities was immaterial to the Condensed Consolidated Financial Statements.

The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodation derivatives are held as free-standing derivatives.

The fair value of derivative instruments is presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Derivative instruments with a positive fair value are reported in other assets in the Condensed Consolidated Balance Sheets while derivative instruments with a negative fair value are reported in other liabilities in the Condensed Consolidated Balance Sheets. Cash collateral payables and receivables associated with the derivative instruments are not added to or netted against the fair value amounts.

81

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of:

			Fair Value
March 31, 2016 ($ in millions)	Notional     Amount		Derivative Assets		Derivative  Liabilities
Qualifying Hedging Instruments
Fair value hedges:
Interest rate swaps related to long-term debt	$	2,705		453		-
Total fair value hedges				453		-
Cash flow hedges:
Interest rate swaps related to C&I loans		4,475		98		-
Total cash flow hedges				98		-
Total derivatives designated as qualifying hedging instruments				551		-
Derivatives Not Designated as Qualifying Hedging Instruments
Free-standing derivatives - risk management and other business purposes:
Interest rate contracts related to MSRs		9,407		363		55
Forward contracts related to held for sale residential mortgage loans		1,423		-		8
Stock warrant associated with Vantiv Holding, LLC		420		308		-
Swap associated with the sale of Visa, Inc. Class B shares		1,274		-		55
Foreign exchange contracts		129		-		3
Total free-standing derivatives - risk management and other business purposes				671		121
Free-standing derivatives - customer accommodation:
Interest rate contracts for customers		30,604		357		366
Interest rate lock commitments		1,121		29		-
Commodity contracts		2,248		233		211
Foreign exchange contracts		15,039		285		269
Total free-standing derivatives - customer accommodation				904		846
Total derivatives not designated as qualifying hedging instruments				1,575		967
Total			$	2,126		967

			Fair Value
December 31, 2015 ($ in millions)	Notional     Amount		Derivative Assets		Derivative  Liabilities
Qualifying Hedging Instruments
Fair value hedges:
Interest rate swaps related to long-term debt	$	2,705		372		2
Total fair value hedges				372		2
Cash flow hedges:
Interest rate swaps related to C&I loans		5,475		39		-
Total cash flow hedges				39		-
Total derivatives designated as qualifying hedging instruments				411		2
Derivatives Not Designated as Qualifying Hedging Instruments
Free-standing derivatives - risk management and other business purposes:
Interest rate contracts related to MSRs		11,657		239		9
Forward contracts related to held for sale residential mortgage loans		1,330		3		1
Stock warrant associated with Vantiv Holding, LLC		369		262		-
Swap associated with the sale of Visa, Inc. Class B shares		1,292		-		61
Total free-standing derivatives - risk management and other business purposes				504		71
Free-standing derivatives - customer accommodation:
Interest rate contracts for customers		29,889		242		249
Interest rate lock commitments		721		15		-
Commodity contracts		2,464		294		276
Foreign exchange contracts		16,243		386		340
Total free-standing derivatives - customer accommodation				937		865
Total derivatives not designated as qualifying hedging instruments				1,441		936
Total			$	1,852		938

82

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Fair Value Hedges

The Bancorp may enter into interest rate swaps to convert its fixed-rate funding to floating-rate. Decisions to convert fixed-rate funding to floating are made primarily through consideration of the asset/liability mix of the Bancorp, the desired asset/liability sensitivity and interest rate levels. For all interest rate swaps as of March 31, 2016, an assessment of hedge effectiveness was performed using regression analysis and such swaps were accounted for using the “long-haul” method. The long-haul method requires a quarterly assessment of hedge effectiveness and measurement of ineffectiveness. For interest rate swaps accounted for as a fair value hedge using the long-haul method, ineffectiveness is the difference between the changes in the fair value of the interest rate swap and changes in fair value of the related hedged item attributable to the risk being hedged. The ineffectiveness on interest rate swaps hedging fixed-rate funding is reported within interest expense in the Condensed Consolidated Statements of Income.

The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income:

	Condensed Consolidated Statements of Income Caption		For the three months  ended March 31,
($ in millions)			2016		2015
Change in fair value of interest rate swaps hedging long-term debt	Interest on long-term debt	$		83		41
Change in fair value of hedged long-term debt attributable to the risk being hedged	Interest on long-term debt			(85)		(43)

Cash Flow Hedges

The Bancorp may enter into interest rate swaps to convert floating-rate assets and liabilities to fixed rates or to hedge certain forecasted transactions. The assets or liabilities may be grouped in circumstances where they share the same risk exposure that the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit cash flow variability of floating-rate assets and liabilities. As of March 31, 2016, all hedges designated as cash flow hedges were assessed for effectiveness using regression analysis. Ineffectiveness is generally measured as the amount by which the cumulative change in the fair value of the hedging instrument exceeds the present value of the cumulative change in the hedged item’s expected cash flows attributable to the risk being hedged. Ineffectiveness is reported within other noninterest income in the Condensed Consolidated Statements of Income. The effective portion of the cumulative gains or losses on cash flow hedges are reported within AOCI and are reclassified from AOCI to current period earnings when the forecasted transaction affects earnings. As of March 31, 2016, the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 45 months.

Reclassified gains and losses on interest rate contracts related to commercial and industrial loans are recorded within interest income in the Condensed Consolidated Statements of Income. As of March 31, 2016 and December 31, 2015, $61 million and $22 million, respectively, of net deferred gains, net of tax, on cash flow hedges were recorded in AOCI in the Condensed Consolidated Balance Sheets. As of March 31, 2016, approximately $14 million in net deferred gains, net of tax, recorded in AOCI are expected to be reclassified into earnings during the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to March 31, 2016.

During the three months ended March 31, 2016 and 2015, there were no gains or losses reclassified from AOCI into earnings associated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would no longer occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP.

The following table presents the pretax net gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges:

		For the three months ended     March 31,
($ in millions)		2016		2015
Amount of pretax net gains recognized in OCI	$		74		52
Amount of pretax net gains reclassified from OCI into net income			14		16

Free-Standing Derivative Instruments – Risk Management and Other Business Purposes

As part of its overall risk management strategy relative to its mortgage banking activity, the Bancorp may enter into various free-standing derivatives (principal-only swaps, interest rate swaptions, interest rate floors, mortgage options, TBAs and interest rate swaps) to economically hedge changes in fair value of its largely fixed-rate MSR portfolio. Principal-only swaps hedge the mortgage-LIBOR spread because these swaps appreciate in value as a result of tightening spreads. Principal-only swaps also provide prepayment protection by increasing in value when prepayment speeds increase, as opposed to MSRs that lose value in a faster prepayment environment. Receive fixed/pay floating interest rate swaps and swaptions increase in value when interest rates do not increase as quickly as expected.

The Bancorp enters into forward contracts and mortgage options to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. IRLCs issued on residential mortgage loan commitments that will be held for sale are also considered free-standing derivative instruments and the interest rate exposure on these commitments is economically hedged primarily with forward contracts. Revaluation gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking net revenue in the Condensed Consolidated Statements of Income.

83

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

In conjunction with the initial sale of the Bancorp’s 51% interest in Vantiv Holding, LLC, the Bancorp received a warrant which is accounted for as a free-standing derivative. Refer to Note 20 for further discussion of significant inputs and assumptions used in the valuation of the warrant.

In conjunction with the initial sale of Visa, Inc. Class B shares in 2009, the Bancorp entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B shares into Class A shares. This total return swap is accounted for as a free-standing derivative. Refer to Note 20 for further discussion of significant inputs and assumptions used in the valuation of this instrument.

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table:

($ in millions)	Condensed Consolidated Statements of Income Caption		For the three months
			ended March 31,
			2016			2015
Interest rate contracts:
Forward contracts related to residential mortgage loans held for sale	Mortgage banking net revenue	$		(11	)		-
Interest rate contracts related to MSR portfolio	Mortgage banking net revenue			96			65
Foreign exchange contracts:
Foreign exchange contracts for risk management purposes	Other noninterest income			(4	)		15
Equity contracts:
Stock warrant associated with Vantiv Holding, LLC	Other noninterest income			47			70
Swap associated with sale of Visa, Inc. Class B shares	Other noninterest income			1			(17)

Free-Standing Derivative Instruments – Customer Accommodation

The majority of the free-standing derivative instruments the Bancorp enters into are for the benefit of its commercial customers. These derivative contracts are not designated against specific assets or liabilities on the Condensed Consolidated Balance Sheets or to forecasted transactions; and therefore, do not qualify for hedge accounting. These instruments include foreign exchange derivative contracts entered into for the benefit of commercial customers involved in international trade to hedge their exposure to foreign currency fluctuations and commodity contracts to hedge such items as natural gas and various other derivative contracts. The Bancorp may economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable and independent counterparties with substantially matching terms. The Bancorp hedges its interest rate exposure on commercial customer transactions by executing offsetting swap agreements with primary dealers. Revaluation gains and losses on interest rate, foreign exchange, commodity and other commercial customer derivative contracts are recorded as a component of corporate banking revenue in the Condensed Consolidated Statements of Income.

The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp only enters into these risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. As of March 31, 2016 and December 31, 2015, the total notional amount of the risk participation agreements was $2.3 billion and $1.7 billion, respectively, and the fair value was a liability of $4 million and $3 million at March 31, 2016 and December 31, 2015, respectively, which is included in interest rate contracts for customers. As of March 31, 2016, the risk participation agreements had a weighted-average remaining life of 3.4 years.

The Bancorp’s maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves in its loan and lease portfolio.

Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of:

($ in millions)	March 31,       2016		December 31, 2015
Pass	$	2,324		1,650
Special mention		17		7
Substandard		3		7
Total	$	2,344		1,664

84

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table:

			For the three months
	Condensed Consolidated		ended March 31,
($ in millions)	Statements of Income Caption		2016			2015
Interest rate contracts:
Interest rate contracts for customers (contract revenue)	Corporate banking revenue	$		7			6
Interest rate contracts for customers (credit portion of fair value adjustment)	Other noninterest expense			(1	)		(1)
Interest rate lock commitments	Mortgage banking net revenue			42			35
Commodity contracts:
Commodity contracts for customers (contract revenue)	Corporate banking revenue			1			1
Commodity contracts for customers (credit losses)	Other noninterest expense			-			(2)
Commodity contracts for customers (credit portion of fair value adjustment)	Other noninterest expense			(1	)		5
Foreign exchange contracts:
Foreign exchange contracts for customers (contract revenue)	Corporate banking revenue			16			21
Foreign exchange contracts for customers (credit portion of fair value adjustment)	Other noninterest expense			(2	)		(1)

Offsetting Derivative Financial Instruments

The Bancorp’s derivative transactions are generally governed by ISDA Master Agreements and similar arrangements, which include provisions governing the setoff of assets and liabilities between the parties. When the Bancorp has more than one outstanding derivative transaction with a single counterparty, the setoff provisions contained within these agreements generally allow the non-defaulting party the right to reduce its liability to the defaulting party by amounts eligible for setoff, including the collateral received as well as eligible offsetting transactions with that counterparty, irrespective of the currency, place of payment, or booking office. The Bancorp’s policy is to present its derivative assets and derivative liabilities in the Condensed Consolidated Balance Sheets on a gross basis, even when provisions allowing for setoff are in place.

Collateral amounts included in the tables below consist primarily of cash and highly-rated government-backed securities.

The following tables provide a summary of offsetting derivative financial instruments:

	Gross Amount		Gross Amounts Not Offset in the
	Recognized in the		Condensed Consolidated Balance Sheets
As of March 31, 2016 ($ in millions)	Condensed Consolidated Balance Sheets(a)		Derivatives			Collateral(b)			Net Amount
Assets
Derivatives	$	1,789		(656	)		(578	)		555
Total assets		1,789		(656	)		(578	)		555
Liabilities
Derivatives		967		(656	)		(110	)		201
Total liabilities	$	967		(656	)		(110	)		201

(a) Amount does not include the stock warrant associated with Vantiv Holding, LLC and IRLCs because these instruments are not subject to master netting or similar arrangements.

(b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.

	Gross Amount		Gross Amounts Not Offset in the
	Recognized in the		Condensed Consolidated Balance Sheets
As of December 31, 2015 ($ in millions)	Condensed Consolidated Balance Sheets(a)		Derivatives			Collateral(b)			Net Amount
Assets
Derivatives	$	1,575		(512	)		(627	)		436
Total assets		1,575		(512	)		(627	)		436
Liabilities
Derivatives		938		(512	)		(173	)		253
Total liabilities	$	938		(512	)		(173	)		253

(a) Amount does not include the stock warrant associated with Vantiv Holding, LLC and IRLCs because these instruments are not subject to master netting or similar arrangements.

(b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.

85

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

12. Other Short-Term Borrowings

Borrowings with original maturities of one year or less are classified as short-term. The following table presents a summary of the Bancorp’s other short-term borrowings as of:

($ in millions)		March 31,       2016		December 31,         2015
FHLB advances	$		2,000		-
Securities sold under repurchase agreements			785		925
Derivative collateral			738		582
Total other short-term borrowings	$		3,523		1,507

The Bancorp’s securities sold under repurchase agreements are accounted for as secured borrowings and are collateralized by securities included in available-for-sale and other securities in the Condensed Consolidated Balance Sheets. These securities are subject to changes in market value and, therefore, the Bancorp may increase or decrease the level of securities pledged as collateral based upon these movements in market value.

The following table summarizes the Bancorp’s securities sold under repurchase agreements by the type of collateral securing the borrowing and remaining contractual maturity as of:

($ in millions)		March 31, 2016			December 31, 2015
		Amount		Remaining Contractual Maturity	Amount		Remaining Contractual     Maturity
Collateral type:
Agency residential mortgage-backed securities	$		602	Overnight		646	Overnight
U.S. Treasury and federal agencies securities			183	Overnight		279	Overnight
Total securities sold under repurchase agreements	$		785			925

13. Long-Term Debt

On March 15, 2016, the Bank issued and sold $1.5 billion in aggregate principal amount of unsecured bank notes. The bank notes consisted of $750 million of 2.30% senior fixed-rate notes, with a maturity of three years, due on March 15, 2019; and $750 million of 3.85% subordinated fixed-rate notes, with a maturity of ten years, due on March 15, 2026. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date.

14. Capital Actions

Accelerated Share Repurchase Transactions

During the three months ended March 31, 2016, the Bancorp entered into or settled accelerated share repurchase transactions. As part of these transactions, the Bancorp entered into forward contracts in which the final number of shares delivered at settlement was based generally on a discount to the average daily volume weighted-average price of the Bancorp’s common stock during the term of these repurchase agreements. The accelerated share repurchases were treated as two separate transactions, (i) the acquisition of treasury shares on the acquisition date and (ii) a forward contract indexed to the Bancorp’s common stock.

The following table presents a summary of the Bancorp’s accelerated share repurchase transactions that were entered into or settled during the three months ended March 31, 2016:

Repurchase Date		Amount     ($ in millions)		Shares Repurchased on   Repurchase Date		Shares Received     from Forward     Contract Settlement		Total Shares     Repurchased		Settlement Date
December 14, 2015	$		215		9,248,482		1,782,477		11,030,959		January 14, 2016
March 4, 2016			240		12,623,762		1,868,379		14,492,141		April 11, 2016

86

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

15. Commitments, Contingent Liabilities and Guarantees

The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers. The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepayment risks, provide funding, equipment and locations for its operations and invest in its communities. These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts recognized in the Condensed Consolidated Balance Sheets. The creditworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancorp’s credit policies. The Bancorp’s significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Condensed Consolidated Balance Sheets are discussed in further detail below:

Commitments

The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of:

		March 31,		December 31,
($ in millions)		2016		2015
Commitments to extend credit	$		66,908		66,884
Letters of credit			2,945		3,055
Forward contracts related to held for sale residential mortgage loans			1,423		1,330
Noncancelable operating lease obligations			618		635
Purchase obligations			70		60
Capital commitments for private equity investments			62		60
Capital expenditures			30		30
Capital lease obligations			24		27

Commitments to extend credit

Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. The Bancorp is exposed to credit risk in the event of nonperformance by the counterparty for the amount of the contract. Fixed-rate commitments are also subject to market risk resulting from fluctuations in interest rates and the Bancorp’s exposure is limited to the replacement value of those commitments. As of March 31, 2016 and December 31, 2015, the Bancorp had a reserve for unfunded commitments, including letters of credit, totaling $144 million and $138 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same risk rating system utilized within its loan and lease portfolio.

Risk ratings under this risk rating system are summarized in the following table as of:

		March 31,		December 31,
($ in millions)		2016		2015
Pass	$		65,672		65,645
Special mention			585		647
Substandard			648		592
Doubtful			3		-
Total commitments to extend credit	$		66,908		66,884

Letters of credit

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of March 31, 2016:

($ in millions)
Less than 1 year(a)	$	1,673
1 - 5 years(a)		1,244
Over 5 years		28
Total letters of credit	$	2,945

(a) Includes $25 and $15 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively.

Standby letters of credit accounted for 99% of total letters of credit at both March 31, 2016 and December 31, 2015, and are considered guarantees in accordance with U.S. GAAP. Approximately 64% and 65% of the total standby letters of credit were collateralized as of March 31, 2016 and December 31, 2015, respectively. In the event of nonperformance by the customers, the Bancorp has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The reserve related to these standby letters of credit, which was included in the total reserve for unfunded commitments, was $3 million and immaterial, respectively, at March 31, 2016 and December 31, 2015. The Bancorp monitors the credit risk associated with letters of credit using the same risk rating system utilized within its loan and lease portfolio.

87

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Risk ratings under this risk rating system are summarized in the following table as of:

($ in millions)		March 31,     2016		December 31,  2015
Pass	$		2,477		2,606
Special mention			138		130
Substandard			250		258
Doubtful			80		61
Total letters of credit	$		2,945		3,055

At March 31, 2016 and December 31, 2015, the Bancorp had outstanding letters of credit that were supporting certain securities issued as VRDNs. The Bancorp facilitates financing for its commercial customers, which consist of companies and municipalities, by marketing the VRDNs to investors. The VRDNs pay interest to holders at a rate of interest that fluctuates based upon market demand. The VRDNs generally have long-term maturity dates, but can be tendered by the holder for purchase at par value upon proper advance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As of March 31, 2016 and December 31, 2015, total VRDNs in which the Bancorp was the remarketing agent or were supported by a Bancorp letter of credit were $1.2 billion and $1.3 billion, respectively, of which FTS acted as the remarketing agent to issuers on $1.0 billion and $1.1 billion, respectively. As remarketing agent, FTS is responsible for finding purchasers for VRDNs that are put by investors. The Bancorp issued letters of credit, as a credit enhancement, to $841 million and $921 million of the VRDNs remarketed by FTS, in addition to $185 million and $187 million in VRDNs remarketed by third parties at March 31, 2016 and December 31, 2015, respectively. These letters of credit are included in the total letters of credit balance provided in the previous table. The Bancorp held $5 million and an immaterial amount of these VRDNs in its portfolio and classified them as trading securities at March 31, 2016 and December 31, 2015, respectively.

Forward contracts related to held for sale residential mortgage loans

The Bancorp enters into forward contracts to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. The outstanding notional amounts of these forward contracts are included in the summary of significant commitments table for all periods presented.

Noncancelable operating lease obligations and other commitments

The Bancorp’s subsidiaries have entered into a number of noncancelable lease agreements. The minimum rental commitments under noncancelable lease agreements are shown in the summary of significant commitments table. The Bancorp has also entered into a limited number of agreements for work related to banking center construction and to purchase goods or services.

Contingent Liabilities

Private mortgage reinsurance

For certain mortgage loans originated by the Bancorp, borrowers may be required to obtain PMI provided by third-party insurers. In some instances, these insurers cede a portion of the PMI premiums to the Bancorp, and the Bancorp provides reinsurance coverage within a specified range of the total PMI coverage. The Bancorp’s reinsurance coverage typically ranges from 5% to 10% of the total PMI coverage. The Bancorp’s maximum exposure in the event of nonperformance by the underlying borrowers is equivalent to the Bancorp’s total outstanding reinsurance coverage, which was $27 million at both March 31, 2016 and December 31, 2015. At both March 31, 2016 and December 31, 2015, the Bancorp maintained a reserve of $2 million related to exposures within the reinsurance portfolio which was included in other liabilities in the Condensed Consolidated Balance Sheets. During 2009, the Bancorp suspended the practice of providing reinsurance of PMI for newly originated mortgage loans.

Legal claims

There are legal claims pending against the Bancorp and its subsidiaries that have arisen in the normal course of business. Refer to Note 16 for additional information regarding these proceedings.

Guarantees

The Bancorp has performance obligations upon the occurrence of certain events under financial guarantees provided in certain contractual arrangements as discussed in the following sections.

Residential mortgage loans sold with representation and warranty provisions

Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty provisions. A contractual liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. For more information on how the Bancorp establishes the residential mortgage repurchase reserve, refer to Note 1 in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015.

During the fourth quarter of 2013, the Bancorp settled certain repurchase claims related to residential mortgage loans originated and sold to FHLMC prior to January 1, 2009 for $25 million, after paid claim credits and other adjustments. The settlement removes the Bancorp’s responsibility to repurchase or indemnify FHLMC for representation and warranty violations on any loan sold prior to January 1, 2009 except in limited circumstances.

88

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

As of March 31, 2016 and December 31, 2015, the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $23 million and $25 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets.

The Bancorp uses the best information available when estimating its mortgage representation and warranty reserve; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of March 31, 2016, are reasonably possible. The Bancorp currently estimates that it is reasonably possible that it could incur losses related to mortgage representation and warranty provisions in an amount up to approximately $34 million in excess of amounts reserved. This estimate was derived by modifying the key assumptions previously discussed to reflect management’s judgment regarding reasonably possible adverse changes to those assumptions. The actual repurchase losses could vary significantly from the recorded mortgage representation and warranty reserve or this estimate of reasonably possible losses, depending on the outcome of various factors, including those previously discussed.

The Bancorp paid an immaterial amount in the form of make whole payments for the three months ended March 31, 2016 and paid $1 million in the form of make whole payments for the three months ended March 31, 2015. For the three months ended March 31, 2016 and 2015, the Bancorp repurchased $4 million and $9 million, respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the three months ended March 31, 2016 and 2015 were $6 million and $9 million, respectively. Total outstanding repurchase demand inventory was $2 million at March 31, 2016 compared to $4 million at December 31, 2015.

The following table summarizes activity in the reserve for representation and warranty provisions:

	For the three months ended     March 31,
($ in millions)	2016		2015
Balance, beginning of period	$	25		35
Net (reductions) additions to the reserve		(2)		2
Losses charged against the reserve		-		(1)
Balance, end of period	$	23		36

The following tables provide a rollforward of unresolved claims by claimant type for the three months ended March 31:

	GSE					Private Label
2016 ($ in millions)	Units			Dollars		Units			Dollars
Balance, beginning of period		16		$	4		2		$	-
New demands		71			6		2			-
Loan paydowns/payoffs		(4	)		(1)		-			-
Resolved demands		(68	)		(7)		(3	)		-
Balance, end of period		15		$	2		1		$	-
	GSE					Private Label
2015 ($ in millions)	Units			Dollars		Units			Dollars
Balance, beginning of period		37		$	6		1		$	1
New demands		118			9		6			-
Loan paydowns/payoffs		(4	)		-		-			-
Resolved demands		(119	)		(11)		(5	)		(1)
Balance, end of period		32		$	4		2		$	-

Residential mortgage loans sold with credit recourse

The Bancorp sold certain residential mortgage loans in the secondary market with credit recourse. In the event of any customer default, pursuant to the credit recourse provided, the Bancorp is required to reimburse the third party. The maximum amount of credit risk in the event of nonperformance by the underlying borrowers is equivalent to the total outstanding balance. In the event of nonperformance, the Bancorp has rights to the underlying collateral value securing the loan. The outstanding balances on these loans sold with credit recourse were $451 million and $465 million at March 31, 2016 and December 31, 2015, respectively, and the delinquency rates were 2.6% at March 31, 2016 and 3.0% at December 31, 2015. The Bancorp maintained an estimated credit loss reserve on these loans sold with credit recourse of $9 million at both March 31, 2016 and December 31, 2015, recorded in other liabilities in the Condensed Consolidated Balance Sheets. To determine the credit loss reserve, the Bancorp used an approach that is consistent with its overall approach in estimating credit losses for various categories of residential mortgage loans held in its loan portfolio.

Margin accounts

FTS, an indirect wholly-owned subsidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing agent for any loss, liability, damage, cost or expense incurred as a result of customers failing to comply with margin or margin maintenance calls on all margin accounts. The margin account balance held by the brokerage clearing agent was $11 million and $10 million at March 31, 2016 and December 31, 2015, respectively. In the event of any customer default, FTS has rights to the underlying collateral provided. Given the existence of the underlying collateral provided and negligible historical credit losses, the Bancorp does not maintain a loss reserve related to the margin accounts.

89

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Long-term borrowing obligations

The Bancorp had certain fully and unconditionally guaranteed long-term borrowing obligations issued by wholly-owned issuing trust entities of $62 million at both March 31, 2016 and December 31, 2015.

Visa litigation

The Bancorp, as a member bank of Visa prior to Visa’s reorganization and IPO (the “IPO”) of its Class A common shares (the “Class A Shares”) in 2008, had certain indemnification obligations pursuant to Visa’s certificate of incorporation and by-laws and in accordance with their membership agreements. In accordance with Visa’s by-laws prior to the IPO, the Bancorp could have been required to indemnify Visa for the Bancorp’s proportional share of losses based on the pre-IPO membership interests. As part of its reorganization and IPO, the Bancorp’s indemnification obligation was modified to include only certain known or anticipated litigation (the “Covered Litigation”) as of the date of the restructuring. This modification triggered a requirement for the Bancorp to recognize a liability equal to the fair value of the indemnification liability.

In conjunction with the IPO, the Bancorp received 10.1 million of Visa’s Class B common shares (the “Class B Shares”) based on the Bancorp’s membership percentage in Visa prior to the IPO. The Class B Shares are not transferable (other than to another member bank) until the later of the third anniversary of the IPO closing or the date which the Covered Litigation has been resolved; therefore, the Bancorp’s Class B Shares were classified in other assets and accounted for at their carryover basis of $0. Visa initially deposited $3 billion of the proceeds from the IPO into a litigation escrow account, established for the purpose of funding judgments in, or settlements of, the Covered Litigation. Since then, when Visa’s litigation committee determined that the escrow account was insufficient, Visa issued additional Class A Shares and deposited the proceeds from the sale of the Class A Shares into the litigation escrow account. When Visa funded the litigation escrow account, the Class B Shares were subjected to dilution through an adjustment in the conversion rate of Class B Shares into Class A Shares.

In 2009, the Bancorp completed the sale of Visa, Inc. Class B Shares and entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A Shares. The swap terminates on the later of the third anniversary of Visa’s IPO or the date on which the Covered Litigation is settled. Refer to Note 20 for additional information on the valuation of the swap. The counterparty to the swap as a result of its ownership of the Class B Shares will be impacted by dilutive adjustments to the conversion rate of the Class B Shares into Class A Shares caused by any Covered Litigation losses in excess of the litigation escrow account. If actual judgments in, or settlements of, the Covered Litigation significantly exceed current expectations, then additional funding by Visa of the litigation escrow account and the resulting dilution of the Class B Shares could result in a scenario where the Bancorp’s ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exceeds the value of the Class B Shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve liability and a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap.

As of the date of the Bancorp’s sale of Visa Class B Shares and through March 31, 2016, the Bancorp has concluded that it is not probable that the Visa Litigation Exposure will exceed the Class B value. Based on this determination, upon the sale of Class B Shares, the Bancorp reversed its net Visa litigation reserve liability and recognized a free-standing derivative liability associated with the total return swap. The fair value of the swap liability was $55 million at March 31, 2016 and $61 million at December 31, 2015. Refer to Note 11 and Note 16 for further information.

After the Bancorp’s sale of Visa Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows:

Period ($ in millions)	Visa     Funding Amount		Bancorp Cash         Payment Amount
Q2 2010	$	500		20
Q4 2010		800		35
Q2 2011		400		19
Q1 2012		1,565		75
Q3 2012		150		6
Q3 2014		450		18

90

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

16. Legal and Regulatory Proceedings

Litigation

In April 2006, the Bancorp was added as a defendant in a consolidated antitrust class action lawsuit originally filed against Visa®, MasterCard® and several other major financial institutions in the United States District Court for the Eastern District of New York. The plaintiffs, merchants operating commercial businesses throughout the U.S. and trade associations, claimed that the interchange fees charged by card-issuing banks were unreasonable and sought injunctive relief and unspecified damages. In addition to being a named defendant, the Bancorp is also subject to a possible indemnification obligation of Visa as discussed in Note 15 and has also entered into judgment and loss sharing agreements with Visa, MasterCard and certain other named defendants. In October 2012, the parties to the litigation entered into a settlement agreement. On January 14, 2014, the court entered a final order approving the class settlement. A number of merchants filed appeals from that approval. The appellate court held a hearing on those appeals on September 28, 2015, and the matter is under consideration. In addition, on July 28, 2015, merchants opposing the class settlement filed a motion in the District Court to set aside the order approving the settlement because of alleged misconduct in another case by certain counsel to the merchant class and a former attorney for MasterCard. Pursuant to the terms of the settlement agreement, the Bancorp paid $46 million into a class settlement escrow account. Approximately 8,000 merchants have requested exclusion from the class settlement, and therefore, pursuant to the terms of the settlement agreement, 25% of the funds paid into the class settlement escrow account have been returned to the control of the defendants. More than 460 of the merchants who requested exclusion from the class have filed separate federal lawsuits against Visa, MasterCard and certain other defendants alleging similar antitrust violations. These “opt-out” federal lawsuits have been transferred to the United States District Court for the Eastern District of New York. The Bancorp was not named as a defendant in any of the opt-out federal lawsuits, but may have obligations pursuant to indemnification arrangements and/or the judgment or loss sharing agreements noted above. On July 18, 2015, the court in which all the remaining opt-out federal lawsuits have been consolidated denied defendants’ motion to dismiss the complaints. Refer to Note 15 for further information.

On March 29, 2016, the court in two class action lawsuits consolidated as Dudenhoeffer v Fifth Third Bancorp et al. filed in 2008 in the United States District Court for the Southern District of Ohio preliminarily approved a settlement in which the Bancorp agreed to pay $6 million and make certain changes to the Bancorp’s profit sharing plan. The complaints alleged that the Bancorp and certain officers violated ERISA by continuing to offer Fifth Third stock in the Bancorp’s profit sharing plan when it was no longer a prudent investment. The settlement is subject to final court approval.

On August 3, 2012, William Klopfenstein and Adam McKinney filed a lawsuit against Fifth Third Bank in the United States District Court for the Northern District of Ohio (Klopfenstein et al. v. Fifth Third Bank), alleging that the 120% APR that Fifth Third disclosed on its Early Access program was misleading. Early Access is a deposit-advance program offered to eligible customers with checking accounts. The plaintiffs sought to represent a nationwide class of customers who used the Early Access program and repaid their cash advances within 30 days. On October 31, 2012, the case was transferred to the United States District Court for the Southern District of Ohio. In 2013, four similar putative class actions were filed against Fifth Third Bank in federal courts throughout the country (Lori and Danielle Laskaris v. Fifth Third Bank, Janet Fyock v. Fifth Third Bank, Jesse McQuillen v. Fifth Third Bank, and Brian Harrison v. Fifth Third Bank). Those four lawsuits were transferred to the Southern District of Ohio and consolidated with the original lawsuit as In re: Fifth Third Early Access Cash Advance Litigation. On behalf of a putative class, the plaintiffs seek unspecified monetary and statutory damages, injunctive relief, punitive damages, attorney’s fees, and pre- and post-judgment interest. On March 30, 2015, the court dismissed all claims alleged in the consolidated lawsuit except a claim under the TILA. The parties are currently engaged in discovery. No trial date has been scheduled.

On July 5, 2012, Nina Investments, LLC filed a lawsuit against Fifth Third Bank in the Circuit Court of Cook County, Illinois, (Nina Investments, LLC. v. Fifth Third Bank, et al.) alleging fraud and conspiracy to commit fraud related to a credit facility established by Fifth Third Bank in 2007 to finance life insurance premiums. Nina invested funds in an entity related to the borrower under the credit facility and is claiming over $70 million in damages based on its alleged loss of these funds. Nina alleges that it would have made different investment decisions if Fifth Third had disclosed fraud committed by the borrower with the alleged knowledge of Fifth Third employees. Nina filed this lawsuit in response to a lawsuit filed by Fifth Third Bank in the same court on June 11, 2010 against Nina and other defendants (Fifth Third Bank v. Concord Capital Management, LLC, et al.) alleging fraud and breach of contract. The court recently dismissed Fifth Third’s claims against certain defendants but Fifth Third’s claims against Nina and other defendants remain pending. Accordingly, the parties have been conducting discovery in the coordinated actions. Discovery is presently scheduled to close on May 16, 2016, and trial has been scheduled for October 31, 2016.

The Bancorp and its subsidiaries are not parties to any other material litigation. However, there are other litigation matters that arise in the normal course of business. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, management believes that the resulting liability, if any, from these other actions would not have a material effect upon the Bancorp’s consolidated financial position, results of operations or cash flows.

Governmental Investigations and Proceedings

The Bancorp and/or its affiliates are involved in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies and law enforcement authorities, as well as self-regulatory bodies regarding their respective businesses. Additional matters will likely arise from time to time. Any of these matters may result in material adverse consequences to the Bancorp, its affiliates and/or their respective directors, officers and other personnel, including adverse judgments, findings, settlements, fines, penalties, orders, injunctions or other actions, amendments and/or restatements of the Bancorp’s SEC filings and/or financial statements, as applicable, and/or determinations of material weaknesses in our disclosure controls and procedures. Investigations by regulatory authorities may from time to time result in civil or criminal referrals to law enforcement.

91

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Reasonably Possible Losses in Excess of Accruals

The Bancorp and its subsidiaries are parties to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolution are inherently difficult to predict. The following factors, among others, contribute to this lack of predictability: claims often include significant legal uncertainties, damages alleged by plaintiffs are often unspecified or overstated, discovery may not have started or may not be complete and material facts may be disputed or unsubstantiated. As a result of these factors, the Bancorp is not always able to provide an estimate of the range of reasonably possible outcomes for each claim. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accrual is adjusted from time to time thereafter as appropriate to reflect changes in circumstances. The Bancorp also determines, when possible (due to the uncertainties described above), estimates of reasonably possible losses or ranges of reasonably possible losses, in excess of amounts accrued. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” Thus, references to the upper end of the range of reasonably possible loss for cases in which the Bancorp is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for cases for which the Bancorp believes the risk of loss is more than slight. For matters where the Bancorp is able to estimate such possible losses or ranges of possible losses, the Bancorp currently estimates that it is reasonably possible that it could incur losses related to legal and regulatory proceedings in an aggregate amount up to approximately $38 million in excess of amounts accrued, with it also being reasonably possible that no losses will be incurred in these matters. The estimates included in this amount are based on the Bancorp’s analysis of currently available information, and as new information is obtained the Bancorp may change its estimates.

For these matters and others where an unfavorable outcome is reasonably possible but not probable, there may be a range of possible losses in excess of the established accrual that cannot be estimated. Based on information currently available, advice of counsel, available insurance coverage and established accruals, the Bancorp believes that the eventual outcome of the actions against the Bancorp and/or its subsidiaries, including the matters described above, will not, individually or in the aggregate, have a material adverse effect on the Bancorp’s consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Bancorp’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period.

17. Income Taxes

The applicable income tax expense was $108 million and $124 million for the three months ended March 31, 2016 and 2015, respectively. The effective tax rates for the three months ended March 31, 2016 and 2015 were 25.0% and 25.6%, respectively.

While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncertain tax positions could increase or decrease during the next 12 months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next 12 months.

92

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

18. Accumulated Other Comprehensive Income

The tables below present the activity of the components of OCI and AOCI for the three months ended March 31, 2016 and 2015:

		Total Other Comprehensive Income							Total Accumulated Other Comprehensive Income
March 31, 2016 ($ in millions)		Pretax Activity		Tax Effect			Net  Activity		Beginning Balance		Net Activity		Ending    Balance
Unrealized holding gains on available-for-sale securities arising during period	$		695		(243	)		452
Reclassification adjustment for net gains on available-for-sale securities included in net income			(8)		3			(5)
Net unrealized gains on available-for-sale securities			687		(240	)		447		238		447		685
Unrealized holding gains on cash flow hedge derivatives arising during period			74		(26	)		48
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income			(14)		5			(9)
Net unrealized gains on cash flow hedge derivatives			60		(21	)		39		22		39		61
Reclassification of amounts to net periodic benefit costs			2		(1	)		1
Defined benefit pension plans, net			2		(1	)		1		(63)		1		(62)
Total	$		749		(262	)		487		197		487		684
		Total Other Comprehensive Income							Total Accumulated Other Comprehensive Income
March 31, 2015 ($ in millions)		Pretax Activity		Tax Effect			Net Activity		Beginning Balance		Net Activity		Ending Balance
Unrealized holding gains on available-for-sale securities arising during period	$		215		(74	)		141
Reclassification adjustment for net gains on available-for-sale securities included in net income			(12)		4			(8)
Net unrealized gains on available-for-sale securities			203		(70	)		133		475		133		608
Unrealized holding gains on cash flow hedge derivatives arising during period			52		(18	)		34
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income			(16)		6			(10)
Net unrealized gains on cash flow hedge derivatives			36		(12	)		24		23		24		47
Reclassification of amounts to net periodic benefit costs			3		(1	)		2
Defined benefit pension plans, net			3		(1	)		2		(69)		2		(67)
Total	$		242		(83	)		159		429		159		588

93

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The table below presents reclassifications out of AOCI:

	Condensed Consolidated Statements of Income		For the three months ended     March 31,
Components of AOCI: ($ in millions)	Caption		2016	2015
Net unrealized gains on available-for-sale securities:(b)
Net gains included in net income	Securities gains, net	$	8	12
	Income before income taxes		8	12
	Applicable income tax expense		(3)	(4)
	Net income		5	8
Net unrealized gains on cash flow hedge derivatives:(b)
Interest rate contracts related to C&I loans	Interest and fees on loans and leases		14	16
	Income before income taxes		14	16
	Applicable income tax expense		(5)	(6)
	Net income		9	10
Net periodic benefit costs:(b)
Amortization of net actuarial loss	Employee benefits expense(a)		(2)	(3)
	Income before income taxes		(2)	(3)
	Applicable income tax expense		1	1
	Net income		(1)	(2)
Total reclassifications for the period	Net income	$	13	16

(a) This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015 for information on the computation of net periodic benefit cost.

(b) Amounts in parentheses indicate reductions to net income.

94

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

19. Earnings Per Share

The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the three months ended March 31:

		2016						2015
(in millions, except per share data)		Income		Average Shares		Per Share Amount		Income		Average Shares		Per Share  Amount
Earnings Per Share:
Net income attributable to Bancorp	$		327						361
Dividends on preferred stock			15						15
Net income available to common shareholders			312						346
Less: Income allocated to participating securities			3						3
Net income allocated to common shareholders	$		309		774		0.40		343		810		0.42
Earnings Per Diluted Share:
Net income available to common shareholders	$		312						346
Effect of dilutive securities:
Stock-based awards			-		4				-		9
Net income available to common shareholders plus assumed conversions			312						346
Less: Income allocated to participating securities			3						3
Net income allocated to common shareholders plus assumed conversions	$		309		778		0.40		343		819		0.42

Shares are excluded from the computation of net income per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted earnings per share computation for the three months ended March 31, 2016 and 2015 excludes 20 million and 18 million, respectively, of SARs and an immaterial amount of stock options because their inclusion would have been anti-dilutive.

The diluted earnings per share computation for the three months ended March 31, 2016 excludes the impact of the forward contract related to the March 4, 2016 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp’s common stock during the first quarter of 2016, the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of March 31, 2016, and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share.

The diluted earnings per share computation for the three months ended March 31, 2015 excludes the impact of the forward contract related to the January 27, 2015 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp’s common stock during the first quarter of 2015, the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of March 31, 2015, and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share.

95

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

20. Fair Value Measurements

The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. For more information regarding the fair value hierarchy, refer to Note 1 in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of:

	Fair Value Measurements Using
March 31, 2016 ($ in millions)	Level 1(c)		Level 2(c)		Level 3		Total Fair Value
Assets:
Available-for-sale and other securities:
U.S. Treasury and federal agencies securities	$	77		1,084		-		1,161
Obligations of states and political subdivisions securities		-		52		-		52
Mortgage-backed securities:
Agency residential mortgage-backed securities		-		15,129		-		15,129
Agency commercial mortgage-backed securities		-		8,205		-		8,205
Non-agency commercial mortgage-backed securities		-		3,120		-		3,120
Asset-backed securities and other debt securities		-		1,520		-		1,520
Equity securities(a)		99		1		-		100
Available-for-sale and other securities(a)		176		29,111		-		29,287
Trading securities:
U.S. Treasury and federal agencies securities		1		17		-		18
Obligations of states and political subdivisions securities		-		54		-		54
Mortgage-backed securities:
Agency residential mortgage-backed securities		-		5		-		5
Agency commercial mortgage-backed securities		-		1		-		1
Asset-backed securities and other debt securities		-		23		-		23
Equity securities		304		-		-		304
Trading securities		305		100		-		405
Residential mortgage loans held for sale		-		600		-		600
Residential mortgage loans(b)		-		-		160		160
Derivative assets:
Interest rate contracts		1		1,270		29		1,300
Foreign exchange contracts		-		285		-		285
Equity contracts		-		-		308		308
Commodity contracts		37		196		-		233
Derivative assets(d)		38		1,751		337		2,126
Total assets	$	519		31,562		497		32,578
Liabilities:
Derivative liabilities:
Interest rate contracts	$	9		416		4		429
Foreign exchange contracts		-		272		-		272
Equity contracts		-		-		55		55
Commodity contracts		21		190		-		211
Derivative liabilities(e)		30		878		59		967
Short positions(e)		15		9		-		24
Total liabilities	$	45		887		59		991

(a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $248, $355 and $1 respectively, at March 31, 2016.

(b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.

(c) During the three months ended March 31, 2016, no assets or liabilities were transferred between Level 1 and Level 2.

(d) Included in other assets in the Condensed Consolidated Balance Sheets.

(e) Included in other liabilities in the Condensed Consolidated Balance Sheets.

96

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

	Fair Value Measurements Using
December 31, 2015 ($ in millions)	Level 1(c)		Level 2(c)		Level 3		Total Fair Value
Assets:
Available-for-sale and other securities:
U.S. Treasury and federal agencies securities	$	100		1,087		-		1,187
Obligations of states and political subdivisions securities		-		52		-		52
Mortgage-backed securities:
Agency residential mortgage-backed securities		-		15,081		-		15,081
Agency commercial mortgage-backed securities		-		7,862		-		7,862
Non-agency commercial mortgage-backed securities		-		2,804		-		2,804
Asset-backed securities and other debt securities		-		1,355		-		1,355
Equity securities(a)		98		1		-		99
Available-for-sale and other securities(a)		198		28,242		-		28,440
Trading securities:
U.S. Treasury and federal agencies securities		-		19		-		19
Obligations of states and political subdivisions securities		-		9		-		9
Mortgage-backed securities:
Agency residential mortgage-backed securities		-		6		-		6
Asset-backed securities and other debt securities		-		19		-		19
Equity securities		333		-		-		333
Trading securities		333		53		-		386
Residential mortgage loans held for sale		-		519		-		519
Residential mortgage loans(b)		-		-		167		167
Derivative assets:
Interest rate contracts		3		892		15		910
Foreign exchange contracts		-		386		-		386
Equity contracts		-		-		262		262
Commodity contracts		54		240		-		294
Derivative assets(d)		57		1,518		277		1,852
Total assets	$	588		30,332		444		31,364
Liabilities:
Derivative liabilities:
Interest rate contracts	$	1		257		3		261
Foreign exchange contracts		-		340		-		340
Equity contracts		-		-		61		61
Commodity contracts		37		239		-		276
Derivative liabilities(e)		38		836		64		938
Short positions(e)		22		7		-		29
Total liabilities	$	60		843		64		967

(a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $248, $355 and $1, respectively, at December 31, 2015.

(b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.

(c) During the year ended December 31, 2015, no assets or liabilities were transferred between Level 1 and Level 2.

(d) Included in other assets in the Condensed Consolidated Balance Sheets.

(e) Included in other liabilities in the Condensed Consolidated Balance Sheets.

The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Available-for-sale and other securities and trading securities

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities and exchange-traded equities. If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics or DCFs. Examples of such instruments, which are classified within Level 2 of the valuation hierarchy, include federal agencies securities, obligations of states and political subdivisions securities, agency residential mortgage-backed securities, agency and non-agency commercial mortgage-backed securities and asset-backed securities and other debt securities. These securities are generally valued using a market approach based on observable prices of securities with similar characteristics.

Residential mortgage loans held for sale

For residential mortgage loans held for sale for which the fair value election has been made, fair value is estimated based upon mortgage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipated portfolio composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loans held for sale that are valued based on mortgage-backed securities prices are classified within Level 2 of the valuation hierarchy as the valuation is based on external pricing for similar instruments. ARM loans classified as held for sale are also classified within Level 2 of the valuation hierarchy due to the use of observable inputs in the DCF model. These observable inputs include interest rate spreads from agency mortgage-backed securities market rates and observable discount rates.

97

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Residential mortgage loans

Residential mortgage loans held for sale that are reclassified to held for investment are transferred from Level 2 to Level 3 of the fair value hierarchy. It is the Bancorp’s policy to value any transfers between levels of the fair value hierarchy based on end of period fair values.

For residential mortgage loans for which the fair value election has been made, and that are reclassified from held for sale to held for investment, the fair value estimation is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Therefore, these loans are classified within Level 3 of the valuation hierarchy. An adverse change in the loss rate or severity assumption would result in a decrease in fair value of the related loan. The Secondary Marketing department, which reports to the Bancorp’s Head of the Consumer Bank, in conjunction with the Consumer Credit Risk department, which reports to the Bancorp’s Chief Risk Officer, are responsible for determining the valuation methodology for residential mortgage loans held for investment. The Secondary Marketing department reviews loss severity assumptions quarterly to determine if adjustments are necessary based on decreases in observable housing market data. This group also reviews trades in comparable benchmark securities and adjusts the values of loans as necessary. Consumer Credit Risk is responsible for the credit component of the fair value which is based on internally developed loss rate models that take into account historical loss rates and loss severities based on underlying collateral values.

Derivatives

Exchange-traded derivatives valued using quoted prices and certain over-the-counter derivatives valued using active bids are classified within Level 1 of the valuation hierarchy. Most of the Bancorp’s derivative contracts are valued using DCF or other models that incorporate current market interest rates, credit spreads assigned to the derivative counterparties and other market parameters and, therefore, are classified within Level 2 of the valuation hierarchy. Such derivatives include basic and structured interest rate, foreign exchange and commodity swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy. At March 31, 2016 and December 31, 2015, derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a warrant associated with the initial sale of the Bancorp’s 51% interest in Vantiv Holding, LLC to Advent International and a total return swap associated with the Bancorp’s sale of Visa, Inc. Class B shares. Level 3 derivatives also include IRLCs, which utilize internally generated loan closing rate assumptions as a significant unobservable input in the valuation process.

As of March 31, 2016, the warrant allows the Bancorp to purchase approximately 7.8 million incremental nonvoting units in Vantiv Holding, LLC at an exercise price of $15.98 per unit and requires settlement under certain defined conditions involving change of control. The fair value of the warrant is calculated in conjunction with a third party valuation provider by applying Black-Scholes option-pricing models using probability weighted scenarios which contain the following inputs: Vantiv, Inc. stock price, strike price per the Warrant Agreement and unobservable inputs, such as expected term and expected volatility.

For the warrant, an increase in the expected term (years) and the expected volatility assumptions would result in an increase in the fair value; conversely, a decrease in these assumptions would result in a decrease in the fair value. The Accounting and Treasury departments, both of which report to the Bancorp’s Chief Financial Officer, determined the valuation methodology for the warrant. Accounting and Treasury review changes in fair value on a quarterly basis for reasonableness based on changes in historical and implied volatilities, expected terms, probability weightings of the related scenarios, and other assumptions.

Under the terms of the total return swap, the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Visa, Inc. Class B shares into Class A shares. Additionally, the Bancorp will make a quarterly payment based on Visa’s stock price and the conversion rate of the Visa, Inc. Class B shares into Class A shares until the date on which the Covered Litigation is settled. The fair value of the total return swap was calculated using a DCF model based on unobservable inputs consisting of management’s estimate of the probability of certain litigation scenarios, the timing of the resolution of the Covered Litigation and Visa litigation loss estimates in excess, or shortfall, of the Bancorp’s proportional share of escrow funds.

An increase in the loss estimate or a delay in the resolution of the Covered Litigation would result in an increase in fair value; conversely, a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in fair value. The Accounting and Treasury departments determined the valuation methodology for the total return swap. Accounting and Treasury review the changes in fair value on a quarterly basis for reasonableness based on Visa stock price changes, litigation contingencies, and escrow funding.

The net fair value asset of the IRLCs at March 31, 2016 was $29 million. Immediate decreases in current interest rates of 25 bps and 50 bps would result in increases in the fair value of the IRLCs of approximately $8 million and $15 million, respectively. Immediate increases of current interest rates of 25 bps and 50 bps would result in decreases in the fair value of the IRLCs of approximately $10 million and $21 million, respectively. The decrease in fair value of IRLCs due to immediate 10% and 20% adverse changes in the assumed loan closing rates would be approximately $3 million and $6 million, respectively, and the increase in fair value due to immediate 10% and 20% favorable changes in the assumed loan closing rates would be approximately $3 million and $6 million, respectively. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear.

The Consumer Line of Business Finance department, which reports to the Bancorp’s Chief Financial Officer, and the aforementioned Secondary Marketing department are responsible for determining the valuation methodology for IRLCs. Secondary Marketing, in conjunction with a third party valuation provider, periodically review loan closing rate assumptions and recent loan sales to determine if adjustments are needed for current market conditions not reflected in historical data.

98

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
For the three months ended March 31, 2016 ($ in millions)	Residential Mortgage Loans		Interest Rate Derivatives, Net(a)		Equity Derivatives, Net(a)		Total   Fair Value
Balance, beginning of period	$	167		12		201		380
Total gains (realized/unrealized):
Included in earnings		1		42		48		91
Purchases		-		(1)		-		(1)
Settlements		(11)		(28)		4		(35)
Transfers into Level 3(b)		3		-		-		3
Balance, end of period	$	160		25		253		438
The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2016(c)	$	1		29		48		78

(a) Net interest rate derivatives include derivative assets and liabilities of $29 and $4, respectively, as of March 31, 2016. Net equity derivatives include derivative assets and liabilities of $308 and $55, respectively, as of March 31, 2016.

(b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

(c) Includes interest income and expense.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
For the three months ended March 31, 2015 ($ in millions)	Residential Mortgage Loans		Interest Rate Derivatives, Net(a)		Equity Derivatives, Net(a)		Total   Fair Value
Balance, beginning of period	$	108		10		366		484
Total gains or losses (realized/unrealized):
Included in earnings		2		35		53		90
Settlements		(7)		(28)		6		(29)
Transfers into Level 3(b)		23		-		-		23
Balance, end of period	$	126		17		425		568
The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2015(c)	$	2		19		53		74

(a) Net interest rate derivatives include derivative assets and liabilities of $19 and $2, respectively, as of March 31, 2015. Net equity derivatives include derivative assets and liabilities of $485 and $60, respectively, as of March 31, 2015.

(b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

(c) Includes interest income and expense.

99

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows:

		For the three months ended March 31,
($ in millions)		2016		2015
Mortgage banking net revenue	$		43		36
Corporate banking revenue			-		1
Other noninterest income			48		53
Total gains	$		91		90

The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at March 31, 2016 and 2015 were recorded in the Condensed Consolidated Statements of Income as follows:

		For the three months ended March 31,
($ in millions)		2016		2015
Mortgage banking net revenue	$		30		20
Corporate banking revenue			-		1
Other noninterest income			48		53
Total gains	$		78		74

The following tables present information as of March 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis:

As of March 31, 2016 ($ in millions)
				Significant Unobservable	Ranges of		Weighted-
Financial Instrument	Fair Value		Valuation Technique	Inputs	Inputs		Average
Residential mortgage loans	$	160	Loss rate model	Interest rate risk factor Credit risk factor		(6.0) - 16.5% 0 - 80.5%	4.4% 1.4%
IRLCs, net		29	Discounted cash flow	Loan closing rates		5.6 - 94.0%	75.0%
Stock warrant associated with Vantiv Holding, LLC		308	Black-Scholes option- pricing model	Expected term (years) Expected volatility(a)		2.0 - 13.3 23.0 - 30.4%	5.8 25.9%
Swap associated with the sale of Visa, Inc. Class B shares		(55)	Discounted cash flow	Timing of the resolution of the Covered Litigation		12/31/2016 - 3/31/2021	NM
(a)    Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms.
As of March 31, 2015 ($ in millions)
Financial Instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs		Weighted-     Average
Residential mortgage loans	$	126	Loss rate model	Interest rate risk factor Credit risk factor		(5.7) - 18.3% 0 - 47.9%	5.3% 1.2%
IRLCs, net		19	Discounted cash flow	Loan closing rates		2.3 - 87.6%	67.0%
Stock warrant associated with Vantiv Holding, LLC		485	Black-Scholes option- pricing model	Expected term (years) Expected volatility(a)		2.0 - 14.3 22.9 - 32.2%	5.9 26.5%
Swap associated with the sale of Visa, Inc. Class B shares		(60)	Discounted cash flow	Timing of the resolution of the Covered Litigation		9/30/2016 - 3/31/2021	NM

(a) Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

100

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of March 31, 2016 and 2015, and for which a nonrecurring fair value adjustment was recorded during the three months ended March 31, 2016 and 2015, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period.

		Fair Value Measurements Using								Total (Losses) Gains
As of March 31, 2016 ($ in millions)		Level 1		Level 2		Level 3		Total		For the three months ended March 31, 2016
Commercial loans held for sale	$		-		-		5		5		(2)
Commercial and industrial loans			-		-		347		347		(47)
Commercial mortgage loans			-		-		85		85		6
Commercial construction loans			-		-		-		-		2
MSRs			-		-		685		685		(85)
OREO			-		-		27		27		(3)
Bank premises and equipment			-		-		12		12		1
Total	$		-		-		1,161		1,161		(128)
		Fair Value Measurements Using								Total (Losses) Gains
As of March 31, 2015 ($ in millions)		Level 1		Level 2		Level 3		Total		For the three months ended March 31, 2015
Commercial loans held for sale	$		-		-		1		1		4
Commercial and industrial loans			-		-		366		366		(43)
Commercial mortgage loans			-		-		52		52		(13)
Residential mortgage loans			-		-		55		55		(1)
MSRs			-		-		788		788		(48)
OREO			-		-		36		36		(8)
Bank premises and equipment			-		-		5		5		(3)
Operating lease equipment			-		-		39		39		(30)
Total	$		-		-		1,342		1,342		(142)

The following tables present information as of March 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis:

As of March 31, 2016 ($ in millions)

Financial Instrument	Fair Value		Valuation Technique	Significant Unobservable     Inputs	Ranges of  Inputs	Weighted-Average
Commercial loans held for sale	$	5	Appraised value	Appraised value Cost to sell	NM NM	NM 10.0%
Commercial and industrial loans		347	Appraised value	Collateral value	NM	NM
Commercial mortgage loans		85	Appraised value	Collateral value	NM	NM
Commercial construction loans		-	Appraised value	Collateral value	NM	NM
MSRs		685	Discounted cash flow	Prepayment speed	0 - 100%	(Fixed) 14.1% (Adjustable) 27.8%
				OAS spread (bps)	364-1,515	(Fixed) 603 (Adjustable) 713
OREO		27	Appraised value	Appraised value	NM	NM
Bank premises and equipment		12	Appraised value	Appraised value	NM	NM
As of March 31, 2015 ($ in millions)
Financial Instrument	Fair Value		Valuation Technique	Significant Unobservable     Inputs	Ranges of  Inputs	Weighted-Average
Commercial loans held for sale	$	1	Appraised value	Appraised value	NM	NM
				Cost to sell	NM	10.0%
Commercial and industrial loans		366	Appraised value	Collateral value	NM	NM
Commercial mortgage loans		52	Appraised value	Collateral value	NM	NM
Residential mortgage loans		55	Appraised value	Appraised value	NM	NM
MSRs		788	Discounted cash flow	Prepayment speed	0.6 - 100%	(Fixed) 10.0% (Adjustable) 32.2%
				OAS spread (bps)	430-1,700	(Fixed) 920 (Adjustable) 640
OREO		36	Appraised value	Appraised value	NM	NM
Bank premises and equipment		5	Appraised value	Appraised value	NM	NM
Operating lease equipment		39	Appraised value	Appraised value	NM	NM

101

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Commercial loans held for sale

During the three months ended March 31, 2016 and 2015, respectively, the Bancorp transferred $5 million and an immaterial amount of commercial loans from the portfolio to loans held for sale that upon transfer were measured at lower of cost or fair value. There were immaterial amounts of fair value adjustments for both the three months ended March 31, 2016 and 2015 that were generally based on appraisals of the underlying collateral or were estimated by discounting future cash flows using the current market rates of loans to borrowers with similar credit characteristics, similar remaining maturities, prepayment speeds and loss severities and were, therefore, classified within Level 3 of the valuation hierarchy. Additionally, there was an immaterial amount and $1 million of fair value adjustments on existing commercial loans held for sale for the three months ended March 31, 2016 and 2015, respectively. The fair value adjustments were also based on appraisals of the underlying collateral. During the three months ended March 31, 2016 the Bancorp recognized a $2 million loss on the sale of commercial loans held for sale. During the three months ended March 31, 2015 the Bancorp recognized a $5 million gain on the sale of commercial loans held for sale.

The Accounting department determines the procedures for the valuation of commercial loans held for sale using appraised value which may include a comparison to recently executed transactions of similar type loans. A monthly review of the portfolio is performed for reasonableness. Quarterly, appraisals approaching one year old are updated and the Real Estate Valuation group, which reports to the Bancorp’s Chief Risk Officer, in conjunction with the Commercial Line of Business review the third-party appraisals for reasonableness. Additionally, the Commercial Line of Business Finance department, which reports to the Bancorp’s Chief Financial Officer, in conjunction with the Accounting department reviews all loan appraisal values, carry values and vintages. The Treasury department, which reports to the Bancorp’s Chief Financial Officer, is responsible for the estimate of fair value adjustments when a discounted future cash flow valuation technique is employed.

Commercial loans held for investment

During the three months ended March 31, 2016 and 2015, the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial loans, commercial mortgage loans and commercial construction loans held for investment. Larger commercial loans included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when evaluating whether an individual loan is impaired. When the loan is collateral dependent, the fair value of the loan is generally based on the fair value of the underlying collateral supporting the loan and therefore these loans were classified within Level 3 of the valuation hierarchy. In cases where the carrying value exceeds the fair value, an impairment loss is recognized. The fair values and recognized impairment losses are reflected in the previous tables. Commercial Credit Risk, which reports to the Bancorp’s Chief Risk Officer, is responsible for preparing and reviewing the fair value estimates for commercial loans held for investment.

Residential mortgage loans

During the three months ended March 31, 2015, the Bancorp transferred approximately $55 million of restructured residential mortgage loans from held for sale to portfolio as the Bancorp no longer had the intent to sell the loans. Upon transfer, the Bancorp recognized a nonrecurring fair value adjustment of $1 million on these loans, which had previously been transferred to held for sale in the fourth quarter of 2014.

MSRs

Mortgage interest rates decreased during both the three months ended March 31, 2016 and 2015 and the Bancorp recognized temporary impairment in certain classes of the MSR portfolio and the carrying value was adjusted to the fair value. MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available. Accordingly, the Bancorp estimates the fair value of MSRs using internal OAS models with certain unobservable inputs, primarily prepayment speed assumptions, OAS and weighted-average lives, resulting in a classification within Level 3 of the valuation hierarchy. Refer to Note 10 for further information on the assumptions used in the valuation of the Bancorp’s MSRs. The Secondary Marketing department and Treasury department are responsible for determining the valuation methodology for MSRs. Representatives from Secondary Marketing, Treasury, Accounting and Risk Management are responsible for reviewing key assumptions used in the internal OAS model. Two external valuations of the MSR portfolio are obtained from third parties that use valuation models in order to assess the reasonableness of the internal OAS model. Additionally, the Bancorp participates in peer surveys that provide additional confirmation of the reasonableness of key assumptions utilized in the MSR valuation process and the resulting MSR prices.

OREO

During the three months ended March 31, 2016 and 2015, the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO and measured at the lower of carrying amount or fair value. These nonrecurring losses were primarily due to declines in real estate values of the properties recorded in OREO. For the three months ended March 31, 2016 and 2015, these losses include $2 million and $5 million, respectively, recorded as charge-offs, on new OREO properties transferred from loans during the respective periods and $1 million and $3 million, respectively, recorded as negative fair value adjustments on OREO in other noninterest expense in the Bancorp’s Condensed Consolidated Statements of Income subsequent to their transfer from loans. As discussed in the following paragraphs, the fair value amounts are generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. The previous tables reflect the fair value measurements of the properties before deducting the estimated costs to sell.

The Real Estate Valuation department, which reports to the Bancorp’s Chief Risk Officer, is solely responsible for managing the appraisal process and evaluating the appraisal for all commercial properties transferred to OREO. All appraisals on commercial OREO properties are updated on at least an annual basis.

102

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The Real Estate Valuation department reviews the BPO data and internal market information to determine the initial charge-off on residential real estate loans transferred to OREO. Once the foreclosure process is completed, the Bancorp performs an interior inspection to update the initial fair value of the property. These properties are reviewed at least every 30 days after the initial interior inspections are completed. The Asset Manager receives a monthly status report for each property, which includes the number of showings, recently sold properties, current comparable listings and overall market conditions.

Bank premises and equipment

The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. These properties were written down to their lower of cost or market values. At least annually thereafter, the Bancorp will review these properties for market fluctuations. The fair value amounts were generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. Corporate Facilities, which reports to the Bancorp’s Chief Administrative Officer, in conjunction with Accounting, is responsible for preparing and reviewing the fair value estimates for bank premises and equipment. For further information on bank premises and equipment and discussion on changes to the branch network, refer to Note 7.

Operating lease equipment

During the three months ended March 31, 2015, the Bancorp recorded nonrecurring impairment adjustments to certain operating lease equipment. When evaluating whether an individual asset is impaired, the Bancorp considers the current fair value of the asset, the changes in overall market demand for the asset and the rate of change in advancements associated with technological improvements that impact the demand for the specific asset under review. As part of this ongoing assessment, the Bancorp determined that the carrying values of certain operating lease equipment were not recoverable and as a result, the Bancorp recorded an impairment loss equal to the amount by which the carrying value of the assets exceeded the fair value. The fair value amounts were generally based on appraised values of the assets, resulting in a classification within Level 3 of the valuation hierarchy. The Commercial Leasing department, which reports to the Bancorp’s Chief Operating Officer, is responsible for preparing and reviewing the fair value estimates for operating lease equipment.

Fair Value Option

The Bancorp elected to measure certain residential mortgage loans held for sale under the fair value option as allowed under U.S. GAAP. Electing to measure residential mortgage loans held for sale at fair value reduces certain timing differences and better matches changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets. Management’s intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and maintained in the Bancorp’s loan portfolio. In such cases, the loans will continue to be measured at fair value.

Fair value changes recognized in earnings for instruments held at March 31, 2016 and 2015 for which the fair value option was elected, as well as the changes in fair value of the underlying IRLCs, included gains of $30 million for both periods. These gains are reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income.

Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by $2 million at both March 31, 2016 and December 31, 2015. Interest on residential mortgage loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income.

103

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table summarizes the difference between the fair value and the principal balance for residential mortgage loans measured at fair value as of:

($ in millions)	Aggregate Fair Value		Aggregate Unpaid Principal Balance		Difference
March 31, 2016
Residential mortgage loans measured at fair value	$	760		730		30
Past due loans of 90 days or more		1		1		-
Nonaccrual loans		1		1		-
December 31, 2015
Residential mortgage loans measured at fair value	$	686		669		17
Past due loans of 90 days or more		2		2		-
Nonaccrual loans		2		2		-

Fair Value of Certain Financial Instruments

The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis:

	Net Carrying			Fair Value Measurements Using						Total
As of March 31, 2016 ($ in millions)	Amount			Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and due from banks	$	2,298			2,298		-		-		2,298
Other securities		604			-		604		-		604
Held-to-maturity securities		64			-		-		64		64
Other short-term investments		1,778			1,778		-		-		1,778
Loans held for sale		203			-		-		203		203
Portfolio loans and leases:
Commercial and industrial loans		42,736			-		-		43,168		43,168
Commercial mortgage loans		6,758			-		-		6,624		6,624
Commercial construction loans		3,404			-		-		3,169		3,169
Commercial leases		3,916			-		-		3,675		3,675
Residential mortgage loans		13,637			-		-		14,588		14,588
Home equity		8,050			-		-		8,855		8,855
Automobile loans		11,087			-		-		10,834		10,834
Credit card		2,039			-		-		2,432		2,432
Other consumer loans and leases		639			-		-		616		616
Unallocated ALLL		(116	)		-		-		-		-
Total portfolio loans and leases, net	$	92,150			-		-		93,961		93,961
Financial liabilities:
Deposits	$	102,475			-		102,544		-		102,544
Federal funds purchased		134			134		-		-		134
Other short-term borrowings		3,523			-		3,523		-		3,523
Long-term debt		15,305			15,202		702		-		15,904

104

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

	Net Carrying			Fair Value Measurements Using						Total
As of December 31, 2015 ($ in millions)	Amount			Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and due from banks	$	2,540			2,540		-		-		2,540
Other securities		604			-		604		-		604
Held-to-maturity securities		70			-		-		70		70
Other short-term investments		2,671			2,671		-		-		2,671
Loans held for sale		384			-		-		384		384
Portfolio loans and leases:
Commercial and industrial loans		41,479			-		-		41,802		41,802
Commercial mortgage loans		6,840			-		-		6,656		6,656
Commercial construction loans		3,190			-		-		2,918		2,918
Commercial leases		3,807			-		-		3,533		3,533
Residential mortgage loans		13,449			-		-		14,061		14,061
Home equity		8,234			-		-		8,948		8,948
Automobile loans		11,453			-		-		11,170		11,170
Credit card		2,160			-		-		2,551		2,551
Other consumer loans and leases		646			-		-		643		643
Unallocated ALLL		(115	)		-		-		-		-
Total portfolio loans and leases, net	$	91,143			-		-		92,282		92,282
Financial liabilities:
Deposits	$	103,205			-		103,219		-		103,219
Federal funds purchased		151			151		-		-		151
Other short-term borrowings		1,507			-		1,507		-		1,507
Long-term debt		15,810			15,603		625		-		16,228

Cash and due from banks, other securities, other short-term investments, deposits, federal funds purchased and other short-term borrowings

For financial instruments with a short-term or no stated maturity, prevailing market rates and limited credit risk, carrying amounts approximate fair value. Those financial instruments include cash and due from banks, FHLB and FRB restricted stock, other short-term investments, certain deposits (demand, interest checking, savings, money market and foreign office deposits), federal funds purchased, and other short-term borrowings excluding FHLB borrowings. Fair values for other time deposits, certificates of deposit $100,000 and over and FHLB borrowings were estimated using a DCF calculation that applies prevailing LIBOR/swap interest rates and a spread for new issuances with similar terms.

Held-to-maturity securities

The Bancorp’s held-to-maturity securities are primarily composed of instruments that provide income tax credits as the economic return on the investment. The fair value of these instruments is estimated based on current U.S. Treasury tax credit rates.

Loans held for sale

Fair values for commercial loans held for sale were valued based on executable bids when available, or on DCF models incorporating appraisals of the underlying collateral, as well as assumptions about investor return requirements and amounts and timing of expected cash flows. Fair values for residential mortgage loans held for sale were valued based on estimated third-party valuations utilizing recent sales data from similar transactions. Broker opinion statements were also obtained as additional evidence to support the third-party valuations. Fair values for other consumer loans held for sale were based on contractual values upon which the loans may be sold to a third party, and approximate their carrying value.

Portfolio loans and leases, net

Fair values were estimated based on either appraisals of the underlying collateral or by discounting future cash flows using the current market rates of loans to borrowers with similar credit characteristics, similar remaining maturities, prepayment speeds and loss severities. The Bancorp estimates fair values at the transaction level whenever possible. For certain products with a large number of homogenous transactions, the Bancorp employs a pool approach. This approach involves stratifying and sorting the entire population of transactions into a smaller number of pools with like characteristics. Characteristics may include maturity date, coupon, origination date and principal amortization method.

Long-term debt

Fair value of long-term debt was based on quoted market prices, when available, or a DCF calculation using LIBOR/swap interest rates and, in some cases, Fifth Third credit and/or debt instrument spreads for new issuances with similar terms.

105

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

21. Business Segments

The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Investment Advisors. Results of the Bancorp’s business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp’s business segments are not necessarily comparable with similar information for other financial institutions. The Bancorp refines its methodologies from time to time as management’s accounting practices and businesses change.

The Bancorp manages interest rate risk centrally at the corporate level by employing an FTP methodology. This methodology insulates the business segments from interest rate volatility, enabling them to focus on serving customers through loan originations and deposit taking. The FTP system assigns charge rates and credit rates to classes of assets and liabilities, respectively, based on expected duration and the U.S. swap curve. Matching duration allocates interest income and interest expense to each business segment so its resulting net interest income is insulated from interest rate risk. In a rising rate environment, the Bancorp benefits from the widening spread between deposit costs and wholesale funding costs. However, the Bancorp’s FTP system credits this benefit to deposit-providing businesses, such as Branch Banking and Investment Advisors, on a duration-adjusted basis. The net impact of the FTP methodology is captured in General Corporate and Other.

The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of the estimated durations for the indeterminate-lived deposits. The credit rate provided for demand deposit accounts is reviewed annually based upon the account type, its estimated duration and the corresponding fed funds, U.S. swap curve or swap rate. The credit rates for several deposit products were reset January 1, 2016 to reflect the current market rates and updated market assumptions. These rates were generally higher than those in place during 2015, thus net interest income for deposit-providing businesses was positively impacted during 2016. FTP charge rates on assets were affected by the prevailing level of interest rates and by the duration and repricing characteristics of the portfolio. As overall market rates increased, the FTP charge increased for asset-generating businesses, thus negatively affecting net interest income during 2016.

During the first quarter of 2016, the Bancorp refined its methodology for allocating provision expense to the business segments to include charges or benefits associated with changes in criticized commercial loan levels in addition to actual net charge-offs experienced by the loans and leases owned by each business segment. The results of operations and financial position for the three months ended March 31, 2015 were adjusted to reflect this change. Provision expense attributable to loan and lease growth and changes in ALLL factors are captured in General Corporate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Additionally, the business segments form synergies by taking advantage of cross-sell opportunities and when funding operations by accessing the capital markets as a collective unit.

The results of operations and financial position for the three months ended March 31, 2015 were adjusted to reflect changes in internal expense allocation methodologies.

The following is a description of each of the Bancorp’s business segments and the products and services they provide to their respective client bases.

Commercial Banking offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. In addition to the traditional lending and depository offerings, Commercial Banking products and services include global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance.

Branch Banking provides a full range of deposit and loan and lease products to individuals and small businesses through 1,241 full-service banking centers. Branch Banking offers depository and loan products, such as checking and savings accounts, home equity loans and lines of credit, credit cards and loans for automobiles and other personal financing needs, as well as products designed to meet the specific needs of small businesses, including cash management services.

Consumer Lending includes the Bancorp’s residential mortgage, home equity, automobile and other indirect lending activities. Direct lending activities include the origination, retention and servicing of residential mortgage and home equity loans or lines of credit, sales and securitizations of those loans, pools of loans or lines of credit and all associated hedging activities. Indirect lending activities include extending loans to consumers through correspondent lenders and automobile dealers.

Investment Advisors provides a full range of investment alternatives for individuals, companies and not-for-profit organizations. Investment Advisors is made up of four main businesses: FTS, an indirect wholly-owned subsidiary of the Bancorp; ClearArc Capital, Inc., an indirect wholly-owned subsidiary of the Bancorp; Fifth Third Private Bank; and Fifth Third Institutional Services. FTS offers full service retail brokerage services to individual clients and broker dealer services to the institutional marketplace. ClearArc Capital, Inc. provides asset management services. Fifth Third Private Bank offers holistic strategies to affluent clients in wealth planning, investing, insurance and wealth protection. Fifth Third Institutional Services provides advisory services for institutional clients including states and municipalities.

106

Fifth Third Bancorp and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

The following tables present the results of operations and assets by business segment for the three months ended:

March 31, 2016 ($ in millions)	Commercial     Banking		Branch Banking		Consumer Lending		Investment  Advisors		General Corporate and Other			Eliminations	Total
Net interest income	$	451		426		60		43		(77	)	-	903
Provision for loan and lease losses		65		34		12		-		8		-	119
Net interest income after provision for loan and lease losses		386		392		48		43		(85	)	-	784
Total noninterest income		223		189(b)		83		100		75		(33)(a)	637
Total noninterest expense		363		411		118		107		20		(33)	986
Income (loss) before income taxes		246		170		13		36		(30	)	-	435
Applicable income tax expense		35		60		5		13		(5	)	-	108
Net income (loss)		211		110		8		23		(25	)	-	327
Less: Net income attributable to noncontrolling interests		-		-		-		-		-		-	-
Net income (loss) attributable to Bancorp		211		110		8		23		(25	)	-	327
Dividends on preferred stock		-		-		-		-		15		-	15
Net income (loss) available to common shareholders	$	211		110		8		23		(40	)	-	312
Total goodwill	$	613		1,655		-		148		-		-	2,416
Total assets	$	59,652		54,528		22,475		8,900		(3,125	)	-	142,430
(a)    Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. (b)    Includes an impairment charge of $2 for branches and land. For more information refer to Note 7 and Note 20.
March 31, 2015 ($ in millions)	Commercial     Banking		Branch Banking		Consumer Lending		Investment  Advisors		General Corporate and Other			Eliminations	Total
Net interest income	$	392		377		63		29		(14	)	-	847
Provision for loan and lease losses		42		42		14		1		(30	)	-	69
Net interest income after provision for loan and lease losses		350		335		49		28		16		-	778
Total noninterest income		174(c)		176(b)		129		107		82		(38)(a)	630
Total noninterest expense		348		400		105		115		(7	)	(38)	923
Income before income taxes		176		111		73		20		105		-	485
Applicable income tax expense		13		39		26		7		39		-	124
Net income		163		72		47		13		66		-	361
Less: Net income attributable to noncontrolling interests		-		-		-		-		-		-	-
Net income attributable to Bancorp		163		72		47		13		66		-	361
Dividends on preferred stock		-		-		-		-		15		-	15
Net income available to common shareholders	$	163		72		47		13		51		-	346
Total goodwill	$	613		1,655		-		148		-		-	2,416
Total assets	$	57,855		53,295		22,057		10,042		(2,812	)	-	140,437

(a) Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income.

(b) Includes an impairment charge of $4 for branches and land. For more information, refer to Note 7 and Note 20.

(c) Includes an impairment charge of $30 for operating lease equipment. For more information, refer to Note 20.

22. Subsequent Event

On April 22, 2016, the Bancorp closed the previously announced sale of its retail operations, including retail accounts, certain private banking deposits and related loan relationships in Pittsburgh to First National Bank of Pennsylvania. The sale included loans, premises and equipment and deposits with aggregate carrying amounts of approximately $99 million, $16 million and $302 million, respectively. The Bancorp recorded a gain on the sale of approximately $11 million that will be recognized in the Bancorp’s second quarter 2016 Quarterly Report on Form 10-Q.

107

PART II. OTHER INFORMATION

Legal Proceedings (Item 1)

Refer to Note 16 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 for information regarding legal proceedings.

Risk Factors (Item 1A)

There have been no material changes made during the first quarter of 2016 to any of the risk factors as previously disclosed in the Registrant’s periodic securities filings.

Unregistered Sales of Equity Securities and Use of Proceeds (Item 2)

Refer to the “Capital Management” section within Management’s Discussion and Analysis in Part I, Item 2 for information regarding purchases and sales of equity securities by the Bancorp during the first quarter of 2016.

Defaults Upon Senior Securities (Item 3)

None.

Mine Safety Disclosures (Item 4)

Not applicable.

Other Information (Item 5)

None.

Exhibits (Item 6)

3.1	Amended Articles of Incorporation of Fifth Third Bancorp, as amended. Incorporated by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2014.
3.2	Code of Regulations of Fifth Third Bancorp as Amended as of September 15, 2014. Incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K filed with the Commission on February 25, 2016.
10.1	Supplemental Confirmation to Master Confirmation for accelerated share repurchase transaction dated March 1, 2016 between Fifth Third Bancorp and Morgan Stanley & Co. LLC.* Master Confirmation is incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed with the Commission on November 5, 2015.
12.1	Computations of Consolidated Ratios of Earnings to Fixed Charges.
12.2	Computations of Consolidated Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements.
31(i)	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Chief Executive Officer.
31(ii)	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Chief Financial Officer.
32(i)	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Chief Executive Officer.
32(ii)	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Chief Financial Officer.
101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Changes in Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) the Notes to Condensed Consolidated Financial Statements tagged as blocks of text and in detail.

* An application for confidential treatment for selected portions of this exhibit has been filed with the Securities and Exchange Commission.

108

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Fifth Third Bancorp
	Registrant
Date: May 6, 2016
	/s/ Tayfun Tuzun
	Tayfun Tuzun
	Executive Vice President and
	Chief Financial Officer

109

EX-10.1

Exhibit 10.1

A MARK OF [**] IN THE TEXT OF THIS EXHIBIT INDICATES THAT CONFIDENTIAL MATERIAL HAS BEEN OMITTED. THIS EXHIBIT. INCLUDING THE OMITTED PORTIONS, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

Opening Transaction

SUPPLEMENTAL CONFIRMATION

To:	Fifth Third Bancorp Fifth Third Center Cincinnati, Ohio 45263
From:	Morgan Stanley & Co. LLC
Subject:	Accelerated Stock Buyback
Date:	March 1, 2016

The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the Transaction entered into between Morgan Stanley & Co. LLC (“MSCO”) and Fifth Third Bancorp (“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below. This Supplemental Confirmation is a binding contract between MSCO and Counterparty as of the relevant Trade Date for the Transaction referenced below.

1. This Supplemental Confirmation supplements, forms part of, and is subject to the Master Confirmation dated as of July 29, 2015 (the “Master Confirmation”) between the Contracting Parties, as amended and supplemented from time to time. All provisions contained in the Master Confirmation govern this Supplemental Confirmation except as expressly modified below.

2. The terms of the Transaction to which this Supplemental Confirmation relates are as follows:

Trade Date:	March 1, 2016
Forward Price Adjustment Amount:	[**]*
Calculation Period Start Date:	March 2, 2016
Scheduled Termination Date:	June 2, 2016
First Acceleration Date:	[**]*
Prepayment Amount:	USD 240,000,000
Prepayment Date:	March 4, 2016
Initial Shares:	12,623,762 Shares; provided that if, in connection with the Transaction, MSCO is unable to borrow or otherwise acquire a number of Shares equal to the Initial Shares for delivery to Counterparty on the Initial Share Delivery Date, the Initial Shares delivered on the Initial Share Delivery Date shall be reduced to such number of Shares that MSCO is able to so borrow or otherwise acquire, and MSCO shall use reasonable good faith efforts to borrow or otherwise acquire a number of Shares equal to the shortfall in the Initial Share Delivery and to deliver such additional Shares as soon as reasonably practicable. The aggregate of all Shares delivered to Counterparty in respect of the Transaction pursuant to this paragraph shall be the “Initial Shares” for purposes of “Number of Shares to be Delivered” in the Master Confirmation.
Initial Share Delivery Date:	March 4, 2016
Ordinary Dividend Amount:	[**]*
Scheduled Ex-Dividend Dates:	March 29, 2016
Termination Price:	[**]*
Additional Relevant Days:	The 5th Exchange Business Days immediately following the Calculation Period.

*              CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

3. Counterparty represents and warrants to MSCO that neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs.

4. This Supplemental Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Supplemental Confirmation by signing and delivering one or more counterparts.

[Remainder of Page Intentionally Blank]

Counterparty hereby agrees (a) to check this Supplemental Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by MSCO) correctly sets forth the terms of the agreement between MSCO and Counterparty with respect to any particular Transaction to which this Master Confirmation relates, by manually signing this Master Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to MSCO Bank Securities Inc., Facsimile No (212) 507-4338

Yours faithfully,
MORGAN STANLEY & CO. LLC
By:	/s/ Scott McDavid
Title:	Managing Director

Agreed and Accepted By:
FIFTH THIRD BANCORP
By:	/s/ James C. Leonard
Title:	Treasurer

[Signature Page to Supplemental Confirmation]

EX-12.1

Exhibit 12.1

Fifth Third Bancorp

Computations of Consolidated Ratios of Earnings to Fixed Charges

($ in millions)

	Three Months Ended March 31, 2016
Excluding Interest on Deposits:
Fixed Charges:
Interest Expense (excluding interest on deposits)	$	86
One-Third of Rents, Net of Income from Subleases		7
Total Fixed Charges	$	93
Earnings:
Income Before Income Taxes	$	435
Fixed Charges		93
Total Earnings	$	528
Ratio of Earnings to Fixed Charges, Excluding Interest on Deposits		5.68x
Including Interest on Deposits:
Fixed Charges:
Interest Expense	$	135
One-Third of Rents, Net of Income from Subleases		7
Total Fixed Charges	$	142
Earnings:
Income Before Income Taxes	$	435
Fixed Charges		142
Total Earnings	$	577
Ratio of Earnings to Fixed Charges, Including Interest on Deposits		4.06x

EX-12.2

Exhibit 12.2

Fifth Third Bancorp

Computations of Consolidated Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements

($ in millions)

	Three Months Ended March 31, 2016
Excluding Interest on Deposits:
Fixed Charges:
Interest Expense (excluding interest on deposits)	$	86
One-Third of Rents, Net of Income from Subleases		7
Preferred Stock Dividends		15
Total Fixed Charges	$	108
Earnings:
Income Before Income Taxes	$	435
Fixed Charges, Excluding Preferred Stock Dividends		93
Total Earnings	$	528
Ratio of Earnings to Fixed Charges, Excluding Interest on Deposits		4.89x
Including Interest on Deposits:
Fixed Charges:
Interest Expense	$	135
One-Third of Rents, Net of Income from Subleases		7
Preferred Stock Dividends		15
Total Fixed Charges	$	157
Earnings:
Income Before Income Taxes	$	435
Fixed Charges, Excluding Preferred Stock Dividends		142
Total Earnings	$	577
Ratio of Earnings to Fixed Charges, Including Interest on Deposits		3.68x

EX-31.(I)

Exhibit 31(i)

CERTIFICATION PURSUANT

TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Greg D. Carmichael, certify that:

1. I have reviewed this report on Form 10-Q of Fifth Third Bancorp (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

/s/ Greg D. Carmichael

Greg D. Carmichael

President and Chief Executive Officer

May 6, 2016

EX-31.(II)

Exhibit 31(ii)

CERTIFICATION PURSUANT

TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Tayfun Tuzun, certify that:

1. I have reviewed this report on Form 10-Q of Fifth Third Bancorp (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

/s/ Tayfun Tuzun

Tayfun Tuzun

Executive Vice President and

Chief Financial Officer

May 6, 2016

EX-32.(I)

Exhibit 32(i)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Fifth Third Bancorp (the “Registrant”) on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Greg D. Carmichael, President and Chief Executive Officer of the Registrant, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Greg D. Carmichael

Greg D. Carmichael

President and Chief Executive Officer

May 6, 2016

EX-32.(II)

Exhibit 32(ii)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Fifth Third Bancorp (the “Registrant”) on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Tayfun Tuzun, Executive Vice President and Chief Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Tayfun Tuzun

Tayfun Tuzun

Executive Vice President and

Chief Financial Officer

May 6, 2016

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	FITB
Entity Registrant Name	FIFTH THIRD BANCORP
Entity Central Index Key	0000035527
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		767,717,824
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks	[1]	$ 2,298	$ 2,540
Available-for-sale and other securities	[2]	29,891	29,044
Held-to-matury securities	[3]	64	70
Trading securities		405	386
Other short-term investments		1,778	2,671
Loans held for sale	[4]	803	903
Portfolio loans and leases	[1],[5]	93,605	92,582
ALLL	[1]	(1,295)	(1,272)
Portfolio loans and leases, net		92,310	91,310
Bank premises and equipment	[6]	2,185	2,239
Operating lease equipment		738	707
Goodwill		2,416	2,416
Intangible assets		11	12
Servicing rights		685	785
Other assets	[1],[7]	8,846	7,965
Total Assets	[7]	142,430	141,048
Deposits
Noninterest-bearing deposits		35,858	36,267
Interest-bearing deposits		66,617	66,938
Total deposits	[8]	102,475	103,205
Federal funds purchased		134	151
Other short-term borrowings		3,523	1,507
Accrued taxes, interest and expenses		2,011	2,164
Other liabilities	[1]	2,627	2,341
Long-term debt	[1],[7]	15,305	15,810
Total liabilities	[7]	126,075	125,178
Equity
Common stock	[9]	2,051	2,051
Preferred stock	[10]	1,331	1,331
Capital surplus		2,686	2,666
Retained earnings		12,570	12,358
Accumulated other comprehensive income		684	197
Treasury stock	[9]	(2,999)	(2,764)
Total Bancorp Shareholders' Equity		16,323	15,839
Noncontrolling interests		32	31
Total Equity		16,355	15,870
Total Liabilities and Equity	[7]	$ 142,430	$ 141,048

[1] Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

[2] Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively.

[3] Fair value of $64 and $70 at March 31, 2016 and December 31, 2015, respectively.

[4] Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively.

[5] Includes $160 and $167 of residential mortgage loans measured at fair value at March 31, 2016 and December 31, 2015, respectively.

[6] Includes $68 and $81 of bank premises and equipment held for sale at March 31, 2016 and December 31, 2015, respectively. Refer to Note 7.

[7] Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3.

[8] Includes $331 and $628 of deposits held for sale at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 7.

[9] Common shares: Stated value $2.22 per share; authorized 2,000,000,000; outstanding at March 31, 2016 – 770,470,768 (excludes 153,421,813 treasury shares), December 31, 2015 – 785,080,314 (excludes 138,812,267 treasury shares).

[10] 446,000 shares of undesignated no par value preferred stock are authorized and unissued at March 31, 2016 and December 31, 2015; fixed-to-floating rate non-cumulative Series H perpetual preferred stock with a $25,000 liquidation preference: 24,000 authorized shares, issued and outstanding at March 31, 2016 and December 31, 2015; fixed-to-floating rate non-cumulative Series I perpetual preferred stock with a $25,000 liquidation preference; 18,000 authorized shares, issued and outstanding at March 31, 2016 and December 31, 2015; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $25,000 liquidation preference: 12,000 authorized shares, issued and outstanding at March 31, 2016 and December 31, 2015.

XML

CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Cash and due from banks	[1]	$ 2,298	$ 2,540
Portfolio loans and leases	[1],[2]	93,605	92,582
ALLL	[1]	(1,295)	(1,272)
Other assets	[1],[3]	8,846	7,965
Other liabilities	[1]	2,627	2,341
Long-term debt	[1],[3]	15,305	15,810
Available-for-sale and other securities, amortized cost		28,838	28,678
Held-to-maturity securities, fair value		64	70
Residential mortgage loans held for sale measured at FV		600	519
Bank premises and equipment held for sale		68	81
Deposits Held for Sale		$ 331	$ 628
Common stock, stated value		$ 2.22	$ 2.22
Common stock, authorized		2,000,000,000	2,000,000,000
Common stock, outstanding		770,470,768	785,080,314
Common stock, treasury shares		153,421,813	138,812,267
Residential Mortgage
Residential mortgage loans measured at FV		$ 160	$ 167
Variable Interest Entities
Cash and due from banks		147	152
Portfolio loans and leases		2,178	2,537
ALLL		(27)	(28)
Other assets		11	14
Other liabilities		4	3
Long-term debt		$ 2,102	$ 2,487
Preferred Stock
Preferred stock, authorized		446,000	446,000
Preferred stock Series H
Preferred stock, authorized		24,000	24,000
Preferred stock, liquidation preference		$ 25,000	$ 25,000
Preferred stock, issued		24,000	24,000
Preferred stock, outstanding		24,000	24,000
Preferred stock Series I
Preferred stock, authorized		18,000	18,000
Preferred stock, liquidation preference		$ 25,000	$ 25,000
Preferred stock, issued		18,000	18,000
Preferred stock, outstanding		18,000	18,000
Preferred stock Series J
Preferred stock, authorized		12,000	12,000
Preferred stock, liquidation preference		$ 25,000	$ 25,000
Preferred stock, issued		12,000	12,000
Preferred stock, outstanding		12,000	12,000

[1] Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

[2] Includes $160 and $167 of residential mortgage loans measured at fair value at March 31, 2016 and December 31, 2015, respectively.

[3] Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3.

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest Income
Interest and fees on loans and leases	$ 804	$ 778
Interest on securities	232	188
Interest on other short-term investments	2	4
Total interest income	1,038	970
Interest Expense
Interest on deposits	49	50
Interest on federal funds purchased	1
Interest on other short-term borrowings	3
Interest on long-term debt	82	73
Total interest expense	135	123
Net Interest Income	903	847
Provision for loan and lease losses	119	69
Net Interest Income After Provision for Loan and Lease Losses	784	778
Noninterest Income
Service charges on deposits	137	135
Investment advisory revenue	102	108
Corporate banking revenue	102	63
Card and processing revenue	79	71
Mortgage banking net revenue	78	86
Other noninterest income	136	163
Securities gains, net	3	4
Total noninterest income	637	630
Noninterest Expense
Salaries, wages and incentives	403	369
Employee benefits	100	99
Net occupancy expense	77	79
Technology and communications	56	55
Card and processing expense	35	36
Equipment expense	30	31
Other noninterest expense	285	254
Total noninterest expense	986	923
Income (Loss) Before Income Taxes	435	485
Applicable income tax expense	108	124
Net Income (loss)	327	361
Net income attributable to Bancorp	327	361
Dividends on preferred stock	15	15
Net income (loss) available to common shareholders	$ 312	$ 346
Earnings per share - basic	$ 0.40	$ 0.42
Earnings per share - diluted	$ 0.40	$ 0.42
Average common shares outstanding- basic	773,564,178	810,209,585
Average common shares oustanding - diluted	778,392,453	818,672,259
Common stock dividends declared per share	$ 0.13	$ 0.13

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income
Net income (loss)	$ 327	$ 361
Other Comprehensive Income (Loss), Net of Tax
Unrealized holding gains (losses) on available-for-sale securities arising during period	452	141
Reclassification adjustment for net (gains) losses included in net income	(5)	(8)
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period	48	34
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(9)	(10)
Reclassification of amounts to net periodic benefit costs	1	2
Other comprehensive income (loss), Net of Tax	487	159
Comprehensive income	814	520
Comprehensive income attributable to Bancorp	$ 814	$ 520

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited - USD ($) $ in Millions		Total	Common Stock	Preferred Stock	Capital Surplus	Retained Earnings	Accumulated Other Comprehensive Income(Loss)	Treasury Stock	Total Bancorp Shareholders' Equity	Non- Controlling Interest
Beginning Balance at Dec. 31, 2014		$ 15,665	$ 2,051	$ 1,331	$ 2,646	$ 11,141	$ 429	$ (1,972)	$ 15,626	$ 39
Net income (loss)		361				361			361
Other comprehensive income (loss), Net of Tax		159					159		159
Cash dividends declared:
Common stock at $0.13 in 2016 and $0.13 in 2015 per share		(106)				(106)			(106)
Preferred stock	[1]	(15)				(15)			(15)
Shares acquired for treasury		(180)						(180)	(180)
Impact of stock transactions under stock compensation plans, net		21			14			7	21
Other		(1)			(1)	(1)			(2)	1
Ending Balance at Mar. 31, 2015		15,904	2,051	1,331	2,659	11,380	588	(2,145)	15,864	40
Beginning Balance at Dec. 31, 2015		15,870	2,051	1,331	2,666	12,358	197	(2,764)	15,839	31
Net income (loss)		327				327			327
Other comprehensive income (loss), Net of Tax		487					487		487
Cash dividends declared:
Common stock at $0.13 in 2016 and $0.13 in 2015 per share		(100)				(100)			(100)
Preferred stock	[1]	(15)				(15)			(15)
Shares acquired for treasury		(240)			(8)			(232)	(240)
Impact of stock transactions under stock compensation plans, net		24			27			(3)	24
Other		2			1				1	1
Ending Balance at Mar. 31, 2016		$ 16,355	$ 2,051	$ 1,331	$ 2,686	$ 12,570	$ 684	$ (2,999)	$ 16,323	$ 32

[1] For both the three months ended March 31, 2016 and 2015, dividends were $414.06 per preferred share for Perpetual Preferred Stock, Series I and $612.50 per preferred share for Perpetual Preferred Stock, Series J.

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Common stock, per share	$ 0.13	$ 0.13
Preferred stock Series I
Preferred stock, per share	414.06	414.06
Preferred stock Series J
Preferred stock, per share	$ 612.50	$ 612.50

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016		Mar. 31, 2015
Operating Activities
Net income	$ 327		$ 361
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	119		69
Depreciation, amortization and accretion	110		107
Stock-based compensation expense	26		21
Provision for (benefit from) deferred income taxes	9		(3)
Securities gains, net	(1)		(4)
Provision for MSR impairment	85		48
Net gains on sales of loans and fair value adjustments on loans held for sale	(15)		(51)
Net losses on disposition and impairment of bank premises and equipment	1		(3)
Gain on sale of certain retail branch operations	(8)
Net losses on disposition and impairment of operating lease equipment			(30)
Proceeds from sales of loans held for sale	1,133		999
Loans originated for sale, net of repayments	(1,180)		(1,179)
Dividends representing return on equity method investments	2		2
Net change in:
Trading securities	(20)		(32)
Other assets	345		413
Accrued taxes, interest and expenses	(422)		(126)
Other liabilities	(114)		(155)
Net Cash Provided by (Used in) Operating Activities	395		503
Proceeds from sales:
Available-for-sale securities	2,677		730
Loans	7		661
Bank premises and equipment	15		11
Proceeds from repayments / maturities:
Available-for-sale securities	531		694
Held-to-maturity securities	6		10
Purchases:
Available-for-sale securities	(4,069)		(4,873)
Bank premises and equipment	(41)		(45)
Proceeds from sale and dividends representing return of equity method investments	9		13
Net cash paid on sale of certain retail branch operations	(43)
Net change in:
Other short-term investments	893		2,995
Loans and leases	(1,119)		(1,212)
Operating lease equipment	(50)		(15)
Net Cash (Used in) Provided by Investing Activities	(1,184)		(1,031)
Net change in:
Deposits	(502)		1,703
Federal funds purchased	(17)		56
Other short-term borrowings	2,016		(143)
Dividends paid on common stock	(102)		(107)
Dividends paid on preferred stock	(15)		(15)
Proceeds from issuance of long-term debt	1,494		0
Repayment of long-term debt	(2,088)		(956)
Repurchase of treasury stock and related forward contract	240		180
Other	1		(1)
Net Cash Provided by (Used in) Financing Activities	547		357
Increase (Decrease) in Cash and Due from Banks	(242)		(171)
Cash and Due from Banks at Beginning of Period	2,540	[1]	3,091
Cash and Due from Banks at End of Period	$ 2,298	[1]	$ 2,920

[1] Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2016

Basis of Presentation

Basis of Presentation

1. Basis of Presentation

The Condensed Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the equity method and not consolidated. Those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at the lower of cost or fair value. Intercompany transactions and balances have been eliminated.

In the opinion of management, the unaudited Condensed Consolidated Financial Statements include all adjustments, which consist of normal recurring accruals, necessary to present fairly the results for the periods presented. In accordance with U.S. GAAP and the rules and regulations of the SEC for interim financial information, these statements do not include certain information and footnote disclosures required for complete annual financial statements and it is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Bancorp's Annual Report on Form 10-K. The results of operations and comprehensive income for the threemonths ended March 31, 2016 and 2015 and the cash flows and changes in equity for the threemonths ended March 31, 2016 and 2015 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2015 has been derived from the Bancorp's Annual Report on Form 10-K.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

XML

Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2016

Supplemental Cash Flow

Supplemental Cash Flow Information

2. Supplemental Cash Flow Information

Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the three months ended March 31:
($ in millions)		2016	2015
Cash Payments:
Interest	$	191	166
Income taxes		334	13
Transfers:
Portfolio loans to loans held for sale		3	9
Loans held for sale to portfolio loans		12	78
Portfolio loans to OREO		12	33

XML

Accounting and Reporting Developments

3 Months Ended

Mar. 31, 2016

Accounting and Reporting Developments

Accounting and Reporting Developments

3. Accounting and Reporting Developments

Revenue from Contracts with Customers

In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within the reporting period, and should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016 and interim reporting periods within those fiscal years. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Subsequently, the FASB has issued additional guidance to clarify certain implementation issues. Specifically, the FASB issued Principal versus Agent Considerations and Identifying Performance Obligations and Licensing in March and April 2016, respectively. These amendments do not change the core principle in Revenue from Contracts with Customers (Topic 606) and the effective date and transition requirements for the amendments are consistent with those in Topic 606.

Accounting for Share-Based Payments When the Terms of the Award Provide That a Performance Target Could be Achieved after the Requisite Service Period

In June 2014, the FASB issued amended guidance which clarifies that a performance target that affects vesting and can be achieved after the requisite service period be treated as a performance condition. The amended guidance provides that an entity should apply existing guidance as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amended guidance was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The amended guidance may be adopted either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying the amended guidance as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. The Bancorp adopted the amended guidance prospectively on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements.

Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity

In August 2014, the FASB issued amended guidance that provides an alternative to ASC Topic 820: Fair Value Measurement for measuring the financial assets and financial liabilities of a CFE, such as a collateralized debt obligation or a collateralized loan obligation entity consolidated as a VIE when a) all of the financial assets and the financial liabilities of that CFE are measured at fair value in the Condensed Consolidated financial statements and b) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. If elected, the measurement alternative would allow the Bancorp to measure both the financial assets and the financial liabilities of the CFE by using the more observable of the fair value of the financial assets or the fair value of the financial liabilities and to eliminate any measurement difference. When the measurement alternative is not elected for a consolidated CFE within the scope of this amended guidance, the amendments clarify that 1) the fair value of the financial assets and the fair value of the financial liabilities of the Condensed Consolidated CFE should be measured using the requirements of Topic 820 and 2) any difference in the fair value of the financial assets and the fair value of the financial liabilities of that consolidated CFE should be reflected in earnings and attributed to the Bancorp in the Condensed Consolidated Statements of Income. The amended guidance may be applied retrospectively or through a modified retrospective approach and was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements.

Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or Equity

In November 2014, the FASB issued amended guidance that clarifies how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative features being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The effects of initially adopting the amended guidance should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendments are effective and shall be reported as a cumulative-effect adjustment directly to retained earnings as of the beginning of the year of adoption. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements.

Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items

In January 2015, the FASB issued amended guidance that eliminates the concept of extraordinary items from U.S. GAAP. Presently, an event or transaction is presumed to be an ordinary and usual activity of a reporting entity unless evidence clearly supports its classification as an extraordinary item, which must be both unusual in nature and infrequent in occurrence. An entity was required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. An entity was also required to disclose applicable income taxes and either present or disclose earnings per share data applicable to the extraordinary item. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The amended guidance may be applied prospectively or retrospectively to all periods presented in the financial statements. The Bancorp adopted the amended guidance prospectively on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements.

Amendments to the Consolidation Analysis

In February 2015, the FASB issued amended guidance that changes the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amended guidance 1) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; 2) eliminates the presumption that a general partner should consolidate a limited partnership; 3) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and 4) provides a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amended guidance was effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. The amended guidance may be applied using either a retrospective approach or a modified retrospective approach with a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption of the amended guidance did not have a material impact on the Condensed Consolidated Financial Statements.

Simplifying the Presentation of Debt Issuance Costs

In April 2015, the FASB issued amended guidance to address the different balance sheet presentation requirements for debt issuance costs and debt discounts and premiums. The amended guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amended guidance. The amended guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted for financial statements that have not been previously issued. The amended guidance should be applied retrospectively, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the amended guidance. Upon adoption on January 1, 2016, the Bancorp reclassified approximately $34million of debt issuance costs from other assets to a direct deduction from long-term debt in the Condensed Consolidated Balance Sheets.

Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets

In April 2015, the FASB issued amended guidance intended to simplify an entity's measurement of the fair value of plan assets of a defined benefit pension or other postretirement benefit plan when the fiscal year-end does not coincide with a month end. For an entity with a fiscal year-end that does not coincide with a month-end, the amended guidance provides a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The amended guidance should be applied prospectively. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption of the amended guidance did not have an impact on the Condensed Consolidated Financial Statements as the Bancorp's fiscal year-end coincides with a month-end.

Customer's Accounting for Fees Paid in a Cloud Computing Arrangement

In April 2015, the FASB issued amended guidance on a customer's accounting for fees paid in a cloud computing arrangement. Under the amended guidance, if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amended guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The amended guidance may be applied either prospectively to all arrangements entered into or materially modified after the effective date, or retrospectively. The Bancorp adopted the amended guidance prospectively on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements.

Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share

In May 2015, the FASB issued amended guidance to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amended guidance also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, thosedisclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amended guidance should be applied retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented in an entity's financial statements. Earlier application is permitted. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements.

Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-Of-Credit Agreements

In August 2015, the FASB issued amended guidance about the presentation and subsequent measurement of debt issuance costs associated with line of credit arrangements. Given the absence of authoritative guidance for debt issuance costs related to line of credit arrangements within ASU 2015-03, the amended guidance provides that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there were any outstanding borrowings on the line of credit arrangement. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amended guidance should be applied retrospectively, where in the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the amendments. Early adoption is permitted for financial statements that have not been previously issued. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have a material impact on the Condensed Consolidated Financial Statements.

Simplifying the Accounting for Measurement-Period Adjustments

In September 2015, the FASB issued amended guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. The amended guidance eliminates the requirement to retrospectively account for those adjustments and requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer shall record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amended guidance requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with earlier application permitted for financial statements that have not been issued. The amended guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date of the amended guidance. The Bancorp adopted the amended guidance on January 1, 2016 and the adoption did not have an impact on the Condensed Consolidated Financial Statements.

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued amended guidance to improve certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Specifically, the amendments significantly revise an entity's accounting related to 1) the classification and measurement of investments in equity securities, 2) the presentation of certain fair value changes for financial liabilities measured at fair value, and 3) certain disclosure requirements associated with the fair value of financial instruments. The amendments require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes as a result of an observable price change. The amendments also simplify the impairment assessment of equity investments for which fair value is not readily determinable by requiring an entity to perform a qualitative assessment to identify impairment. If qualitative indicators are identified, the entity will be required to measure the investment at fair value. For financial liabilities that an entity has elected to measure at fair value, the amendments require an entity to present separately in other comprehensive income the portion of the change in fair value that results from a change in instrument-specific credit risk. For public business entities, the amendments 1) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate fair value for financial instruments measured at amortized cost and 2) require, for disclosure purposes, the use of an exit price notion in the determination of the fair value of financial instruments. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Upon adoption, the Bancorp will be required to make a cumulative-effect adjustment to the Condensed Consolidated Balance Sheets as of the beginning of the fiscal year of adoption. The guidance on equity securities without readily determinable fair value will be applied prospectively to all equity investments that exist as of the date of adoption of the standard. Early adoption of the amendments is not permitted with the exception of the presentation of certain fair value changes for financial liabilities measured at fair value for which early application is permitted. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Accounting for Leases

In February 2016, the FASB issued amended guidance that establishes a new accounting model for leases. The amended guidance requires lessees to record lease liabilities on the lessees balance sheets along with corresponding right-of-use assets for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the lessee's statements of income. From a lessor perspective, the accounting model is largely unchanged, except that the amended guidance includes certain targeted improvements to align, where necessary, lessor accounting with the lessee accounting model and the revenue recognition guidance in ASC Topic 606. The amendments also modify disclosure requirements for an entity's lease arrangements. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The amendments should be applied to each prior reporting period presented using a modified retrospective approach, although the amended guidance contains certain transition relief provisions that, among other things, permit an entity to elect not to reassess the classification of leases which existed or expired as of the date the amendments are effective. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Recognition of Breakage on Certain Prepaid Stored-Value Products

In March 2016, the FASB issued amended guidance to permit proportional derecognition of the liability for unused funds on certain prepaid stored-value products (known as breakage) to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. The amendments do not apply to any prepaid stored-value products that are attached to a segregated customer deposit account, or products for which unused funds are subject to unclaimed property remittance laws. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted, and should be applied retrospectively to all comparable periods presented in the year of adoption. Entities may also elect a modified retrospective application by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is effective. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships

In March 2016, the FASB issued amended guidance to clarify that a change in counterparty in a derivative contract does not, in and of itself, represent a change in critical terms that would require discontinuation of hedge accounting provided that other hedge accounting criteria continue to be met. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted, and should be applied prospectively. However, entities may elect to apply a modified retrospective approach to redesignate hedges that were derecognized in a prior period presented in the financial statements because of a novation. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Contingent Put and Call Options in Debt Instruments

In March 2016, the FASB issued amended guidance to clarify the requirements for determining when contingent put and call options embedded in debt instruments should be bifurcated from the debt instrument and accounted for separately as derivatives. A four-step decision sequence should be followed in determining whether such options are clearly and closely related to the economic characteristics and risks of the debt instrument, which determines whether bifurcation is necessary. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted, and should be applied on a modified retrospective basis for debt instruments existing as of the beginning of the fiscal year for which the amendments are effective. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Simplifying Transition to the Equity Method of Accounting

In March 2016, the FASB issued amended guidance to eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting, eliminating the requirement to retrospectively apply the equity method of accounting back to the date of the initial investment. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted, and should be applied prospectively to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

Accounting for Share-Based Payments to Employees

In March 2016, the FASB issued amended guidance simplifying the accounting for share-based compensation paid to employees. The amended guidance 1) requires excess tax benefits and tax deficiencies on share-based payments to employees to be recognized directly to income tax expense or benefit in the Condensed Consolidated Income Statements; 2) requires excess tax benefits to be included as operating activities on the Condensed Consolidated Statements of Cash Flows; 3) provides entities with the option of making an accounting policy election to account for forfeitures of share-based payments as they occur instead of estimating the awards expected to be forfeited; and 4) changes the threshold to qualify for equity classification to permit withholdings up to the maximum statutory tax rate in the applicable jurisdiction. In addition, excess tax benefits and tax deficiencies are considered discrete items in the reporting period they occur and are not included in the estimate of an entity's annual effective tax rate. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. The majority of the amendments should be applied using a modified retrospective approach with a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The amendments related to the presentation of excess tax benefits on the Condensed Consolidated Statements of Cash Flows may be applied prospectively or retrospectively. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements.

XML

Investment Securities

3 Months Ended

Mar. 31, 2016

Securities

Securities

4. Investment Securities

The following tables provide the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and other and held-to-maturity investment securities portfolios as of:
				Amortized	Unrealized	Unrealized	Fair
March 31, 2016 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale and other securities:
	U.S. Treasury and federal agencies securities		$	1,131	30	-	1,161
	Obligations of states and political subdivisions securities			50	2	-	52
	Mortgage-backed securities:
		Agency residential mortgage-backed securities(a)		14,586	545	(2)	15,129
		Agency commercial mortgage-backed securities		7,837	368	-	8,205
		Non-agency commercial mortgage-backed securities		3,005	115	-	3,120
	Asset-backed securities and other debt securities			1,526	13	(19)	1,520
	Equity securities(b)			703	2	(1)	704
Total available-for-sale and other securities			$	28,838	1,075	(22)	29,891
Held-to-maturity securities:
	Obligations of states and political subdivisions securities		$	62	-	-	62
	Asset-backed securities and other debt securities			2	-	-	2
Total held-to-maturity securities			$	64	-	-	64

• Includes interest-only mortgage-backed securities of $41as of March 31, 2016 recorded at fair value with fair value changes recorded in securities gains, net,in the Condensed Consolidated Statements of Income.
• Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355 and $1, respectively,at March 31, 2016,that are carried at cost, and certain mutual fund and equity security holdings.

				Amortized	Unrealized	Unrealized	Fair
December 31, 2015 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale and other securities:
	U.S. Treasury and federal agencies securities		$	1,155	32	-	1,187
	Obligations of states and political subdivisions securities			50	2	-	52
	Mortgage-backed securities:
		Agency residential mortgage-backed securities(a)		14,811	283	(13)	15,081
		Agency commercial mortgage-backed securities		7,795	100	(33)	7,862
		Non-agency commercial mortgage-backed securities		2,801	35	(32)	2,804
	Asset-backed securities and other debt securities			1,363	13	(21)	1,355
	Equity securities(b)			703	2	(2)	703
Total available-for-sale and other securities			$	28,678	467	(101)	29,044
Held-to-maturity securities:
	Obligations of states and political subdivisions securities		$	68	-	-	68
	Asset-backed securities and other debt securities			2	-	-	2
Total held-to-maturity securities			$	70	-	-	70

• Includes interest-only mortgage-backed securities of $50as of December 31, 2015, recorded at fair value with fair value changes recorded in securities gains, net,in the Condensed Consolidated Statements of Income.
• Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of$248, $355, and $1, respectively, at December 31, 2015, that are carried at cost, and certain mutual fund and equity security holdings.

The following table presents realized gains and losses that were recognized in income from available-for-sale securities:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Realized gains	$	15	15
Realized losses		(4)	(2)
OTTI		(3)	(1)
Net realized gains(a)	$	8	12

• Excludes net losses on interest-only mortgage-backed securities of $6 and $9for the three months ended March 31, 2016 and March 31, 2015, respectively.

Trading securities were $405 million as of March 31, 2016, compared to $386 million at December 31, 2015. The following table presents total gains and losses that were recognized in income from trading securities:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Realized gains(a)	$	2	1
Realized losses(b)		(4)	(3)
Net unrealized gains(c)		1	1
Total trading securities losses	$	(1)	(1)

• Includes realized gains of $2and $1duringthe three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.
• Includes realized losses of $4and $3during the three months ended March 31, 2016 and 2015, respectively,recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.
• Includes an immaterial amount of net unrealized gains and losses during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

At March 31, 2016 and December 31, 2015, securities with a fair value of $10.4billion and $11.0billion, respectively, were pledged to secure borrowings, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law.

The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity investment securities as of March 31, 2016 are shown in the following table:
			Available-for-Sale and Other		Held-to-Maturity
($ in millions)			Amortized Cost	Fair Value	Amortized Cost	Fair Value
Debt securities:(a)
	Less than 1 year	$	835	857	37	37
	1-5 years		9,003	9,329	12	12
	5-10 years		16,480	17,146	13	13
	Over 10 years		1,817	1,855	2	2
Equity securities			703	704	-	-
Total		$	28,838	29,891	64	64

• Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties.

The following table provides the fair value and gross unrealized losses on available-for-sale and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of:
		Less than 12 months		12 months or more		Total
			Unrealized		Unrealized		Unrealized
($ in millions)		Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
March 31, 2016
Agency residential mortgage-backed securities	$	268	(2)	-	-	268	(2)
Asset-backed securities and other debt securities		499	(8)	266	(11)	765	(19)
Equity securities		-	-	31	(1)	31	(1)
Total	$	767	(10)	297	(12)	1,064	(22)
December 31, 2015
Agency residential mortgage-backed securities	$	2,903	(13)	-	-	2,903	(13)
Agency commercial mortgage-backed securities		3,111	(33)	-	-	3,111	(33)
Non-agency commercial mortgage-backed securities		1,610	(32)	-	-	1,610	(32)
Asset-backed securities and other debt securities		623	(11)	226	(10)	849	(21)
Equity securities		1	(1)	37	(1)	38	(2)
Total	$	8,248	(90)	263	(11)	8,511	(101)

Other-Than-Temporary Impairments

The Bancorp recognized $2million and $1million of OTTIon its available-for sale and other debt securities, included in securities gains, net, in the Condensed Consolidated Statements of Income during the three months ended March 31, 2016 and 2015, respectively. The Bancorp recognized $1 million of OTTI on its available-for-sale equity securities, included in securities gains, net, in the Condensed Consolidated Statements of Income during the three months ended March 31, 2016. The Bancorp did not recognize OTTI onits held-to-maturity debt securities during the three months ended March 31, 2016. The Bancorp did not recognize OTTI on any of its available-for-sale equity securities or its held-to-maturity debt securities during the three months ended March 31, 2015.At March 31, 2016, 2% of unrealized losses in the available-for-sale and other securities portfolio were represented by non-rated securities, compared to 1% at December 31, 2015.

XML

Loans and Leases

3 Months Ended

Mar. 31, 2016

Loans and Leases Receivable

Loans and Leases

5. Loans and Leases

The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. Lending activities are generally concentrated within those states in which the Bancorp has banking centers and are primarily located in the Midwestern and Southeastern regions of the United States. The Bancorp's commercial loan portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses inherent in the portfolio. For further information on credit quality and the ALLL, refer to Note 6.

The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans and leases classified based upon product or collateral as of:
			March 31,	December 31,
($ in millions)			2016	2015
Loans held for sale:
	Commercial and industrial loans	$	8	20
	Commercial mortgage loans		10	34
	Residential mortgage loans		668	708
	Home equity		19	35
	Automobile loans		1	4
	Credit card		97	101
	Other consumer loans and leases		-	1
Total loans held for sale		$	803	903
Portfolio loans and leases:
	Commercial and industrial loans	$	43,433	42,131
	Commercial mortgage loans		6,864	6,957
	Commercial construction loans		3,428	3,214
	Commercial leases		3,956	3,854
Total commercial loans and leases		$	57,681	56,156
	Residential mortgage loans		13,895	13,716
	Home equity		8,112	8,301
	Automobile loans		11,128	11,493
	Credit card		2,138	2,259
	Other consumer loans and leases		651	657
Total consumer loans and leases		$	35,924	36,426
Total portfolio loans and leases		$	93,605	92,582

Total portfolio loans and leases are recorded net of unearned income, which totaled $601million as of March 31, 2016 and$624million as of December 31, 2015.Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts, deferred loan fees and costs and fair value adjustments (associated with acquired loans or loans designated at fair value upon origination) which totaled a net premium of $223 million and$220 million as of March 31, 2016and December 31, 2015,respectively.

The Bancorp's FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $12.1 billion and $11.9 billion at March 31, 2016 and December 31, 2015, respectively, pledged at the FHLB, and loans of $33.5billion and $33.7 billion at March 31, 2016 and December 31, 2015, respectively, pledged at the FRB.

The following table presents a summary of the total loans and leases owned by the Bancorp as of:
		March 31,	December 31,		March 31,	December 31,
		2016	2015		2016	2015
					90 Days Past Due
($ in millions)		Carrying Value			and Still Accruing
Commercial and industrial loans	$	43,441	42,151		3	7
Commercial mortgage loans		6,874	6,991		-	-
Commercial construction loans		3,428	3,214		-	-
Commercial leases		3,956	3,854		-	-
Residential mortgage loans		14,563	14,424		44	40
Home equity		8,131	8,336		-	-
Automobile loans		11,129	11,497		8	10
Credit card		2,235	2,360		18	18
Other consumer loans and leases		651	658		-	-
Total loans and leases	$	94,408	93,485		73	75
Less: Loans held for sale		803	903
Total portfolio loans and leases	$	93,605	92,582
The following table presents a summary of net charge-offs for the three months ended March 31:
($ in millions)					2016	2015
Commercial and industrial loans				$	46	38
Commercial mortgage loans					6	1
Commercial leases					2	-
Residential mortgage loans					2	6
Home equity					8	14
Automobile loans					9	8
Credit card					20	21
Other consumer loans and leases					3	3
Total net charge-offs				$	96	91

XML

Credit Quality and the Allowance for Loan and Lease Losses

3 Months Ended

Mar. 31, 2016

Credit Quality and the Allowance for Loan and Leases Losses

Credit Quality and the Allowance for Loan and Lease Losses

6. Credit Quality and the Allowance for Loan and Lease Losses

The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class.

Allowance for Loan and Lease Losses
The following tables summarize transactions in the ALLL by portfolio segment:
				Residential
For the three months ended March 31, 2016 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	840	100	217	115	1,272
	Losses charged-off		(60)	(4)	(52)	-	(116)
	Recoveries of losses previously charged-off		6	2	12	-	20
	Provision for loan and lease losses		81	-	37	1	119
Balance, end of period		$	867	98	214	116	1,295
				Residential
For the three months ended March 31, 2015 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	875	104	237	106	1,322
	Losses charged-off		(48)	(9)	(58)	-	(115)
	Recoveries of losses previously charged-off		9	3	12	-	24
	Provision for loan and lease losses		16	5	50	(2)	69
Balance, end of period		$	852	103	241	104	1,300

The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment:
					Residential
As of March 31, 2016 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:(a)
	Individually evaluated for impairment	$	102	(c)	66	48	-	216
	Collectively evaluated for impairment		765		32	166	-	963
	Unallocated		-		-	-	116	116
Total ALLL		$	867		98	214	116	1,295
Portfolio loans and leases:(b)
	Individually evaluated for impairment	$	1,022	(c)	655	415	-	2,092
	Collectively evaluated for impairment		56,659		13,078	21,614	-	91,351
	Loans acquired with deteriorated credit quality		-		2	-	-	2
Total portfolio loans and leases		$	57,681		13,735	22,029	-	93,445

• Includes $5 related to leveraged leases at March 31, 2016.
• Excludes $160of residential mortgage loans measured at fair value, and includes $812of leveraged leases, net of unearned income atMarch 31, 2016.
• Includes five restructured loans at March 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $27 and an ALLL of $15.

					Residential
As of December 31, 2015 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:(a)
	Individually evaluated for impairment	$	119	(c)	67	49	-	235
	Collectively evaluated for impairment		721		33	168	-	922
	Unallocated		-		-	-	115	115
Total ALLL		$	840		100	217	115	1,272
Portfolio loans and leases:(b)
	Individually evaluated for impairment	$	815	(c)	630	424	-	1,869
	Collectively evaluated for impairment		55,341		12,917	22,286	-	90,544
	Loans acquired with deteriorated credit quality		-		2	-	-	2
Total portfolio loans and leases		$	56,156		13,549	22,710	-	92,415

• Includes $5 related to leveraged leases at December 31, 2015.
• Excludes $167 of residential mortgage loans measured at fair value, and includes $801 of leveraged leases, net of unearned income at December 31, 2015.
• Includes five restructured loans at December 31, 2015associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $27 and an ALLL of $15.

CREDIT RISK PROFILE

Commercial Portfolio Segment

For purposes of monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leases.

To facilitate the monitoring of credit quality within the commercial portfolio segment, and for purposes of analyzing historical loss rates used in the determination of the ALLL for the commercial portfolio segment, the Bancorp utilizes the following categories of credit grades: pass, special mention, substandard, doubtful and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter.

Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated at least annually based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter.

The Bancorp assigns a special mention rating to loans and leases that have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or lease or the Bancorp's credit position. 

The Bancorp assigns a substandard rating to loans and leases that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans and leases have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Bancorp will sustain some loss if the deficiencies noted are not addressed and corrected.

The Bancorp assigns a doubtful rating to loans and leases that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans.

Loans and leases classified as loss are considered uncollectible and are charged-off in the period in which they are determined to be uncollectible. Because loans and leases in this category are fully charged-off, they are not included in the following tables.

The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class:
			Special
As of March 31, 2016 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	39,909	1,513	1,987	24	43,433
Commercial mortgage owner-occupied loans		3,305	128	177	3	3,613
Commercial mortgage nonowner-occupied loans		3,063	65	123	-	3,251
Commercial construction loans		3,423	1	4	-	3,428
Commercial leases		3,848	74	34	-	3,956
Total commercial loans and leases	$	53,548	1,781	2,325	27	57,681

			Special
As of December 31, 2015 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	38,756	1,633	1,742	-	42,131
Commercial mortgage owner-occupied loans		3,344	124	191	-	3,659
Commercial mortgage nonowner-occupied loans		3,105	63	130	-	3,298
Commercial construction loans		3,201	4	9	-	3,214
Commercial leases		3,724	93	37	-	3,854
Total commercial loans and leases	$	52,130	1,917	2,109	-	56,156

Residential Mortgage and Consumer Portfolio Segments

For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, automobile loans, credit card and other consumer loans and leases. The Bancorp's residential mortgage portfolio segment is also a separate class.

The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans, which includesboth the delinquency status and performing versus nonperforming status of the loans. The delinquency status of all residential mortgage and consumer loans is presented by class in the age analysis section while the performing versus nonperforming status is presented in the following table. Refer to the nonaccrual loans and leases section of Note 1 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015 for additional delinquency and nonperforming information.

The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of:
		March 31, 2016		December 31, 2015
($ in millions)		Performing	Nonperforming	Performing	Nonperforming
Residential mortgage loans(a)	$	13,691	44	13,498	51
Home equity		8,032	80	8,222	79
Automobile loans		11,126	2	11,491	2
Credit card		2,106	32	2,226	33
Other consumer loans and leases		651	-	657	-
Total residential mortgage and consumer loans and leases(a)	$	35,606	158	36,094	165

• Excludes$160and $167of loans measured at fair value at March 31, 2016and December 31,2015, respectively.

Age Analysis of Past Due Loans and Leases
The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class:
			Current	Past Due				90 Days Past
			Loans and	30-89	90 Days	Total	Total Loans	Due and Still
As of March 31, 2016 ($ in millions)			Leases(c)	Days(c)	or More(c)	Past Due	and Leases	Accruing
Commercial loans and leases:
	Commercial and industrial loans	$	43,255	31	147	178	43,433	3
	Commercial mortgage owner-occupied loans		3,580	6	27	33	3,613	-
	Commercial mortgage nonowner-occupied loans		3,210	17	24	41	3,251	-
	Commercial construction loans		3,428	-	-	-	3,428	-
	Commercial leases		3,952	-	4	4	3,956	-
Residential mortgage loans(a)(b)			13,613	32	90	122	13,735	44
Consumer loans and leases:
	Home equity		7,980	72	60	132	8,112	-
	Automobile loans		11,060	58	10	68	11,128	8
	Credit card		2,089	25	24	49	2,138	18
	Other consumer loans and leases		650	1	-	1	651	-
Total portfolio loans and leases(a)		$	92,817	242	386	628	93,445	73

• Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.
• Information includes advances made pursuant to servicing agreements for GNMA mortgage poolswhose repayments are insured by the FHA or guaranteed by the VA. As of March 31, 2016, $95of these loans were 30-89 days past due and $315 were 90days or more past due. The Bancorp recognized $2of lossesduring the three months ended March 31, 2016due to claim denials and curtailments associated with these insured or guaranteedloans.
• Includes accrual and nonaccrual loans and leases.

			Current	Past Due				90 Days Past
			Loans and	30-89	90 Days	Total	Total Loans	Due and Still
As of December 31, 2015 ($ in millions)			Leases(c)	Days(c)	Greater(c)	Past Due	and Leases	Accruing
Commercial loans and leases:
	Commercial and industrial loans	$	41,996	55	80	135	42,131	7
	Commercial mortgage owner-occupied loans		3,610	15	34	49	3,659	-
	Commercial mortgage nonowner-occupied loans		3,262	9	27	36	3,298	-
	Commercial construction loans		3,214	-	-	-	3,214	-
	Commercial leases		3,850	3	1	4	3,854	-
Residential mortgage loans(a)(b)			13,420	37	92	129	13,549	40
Consumer loans and leases:
	Home equity		8,158	82	61	143	8,301	-
	Automobile loans		11,407	75	11	86	11,493	10
	Credit card		2,207	29	23	52	2,259	18
	Other consumer loans and leases		656	1	-	1	657	-
Total portfolio loans and leases(a)		$	91,780	306	329	635	92,415	75

• Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.
• Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2015,$102of these loans were 30-89 days past due and $335 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2015due to claim denials and curtailments associated with these insured or guaranteed loans.
• Includes accrual and nonaccrual loans and leases.

Impaired Portfolio Loans and Leases

Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans and leases that are restructured in a TDR. The Bancorp considers the current value of collateral, credit quality of any guarantees, the loan structure and other factors when evaluating whether an individual loan or lease is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower, and the Bancorp's evaluation of the borrower's management. Smaller-balance homogenous loans or leases that are collectively evaluated for impairment are not included in the following tables.

The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR:
			Unpaid
			Principal	Recorded
As of March 31, 2016 ($ in millions)			Balance	Investment		ALLL
With a related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	516	441		81
	Commercial mortgage owner-occupied loans(b)		26	16		3
	Commercial mortgage nonowner-occupied loans		57	53		2
	Commercial leases		4	2		1
Restructured residential mortgage loans			453	440		66
Restructured consumer loans and leases:
	Home equity		220	220		32
	Automobile loans		16	17		2
	Credit card		58	58		14
Total impaired portfolio loans and leases with a related ALLL		$	1,350	1,247		201
With no related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	372	320		-
	Commercial mortgage owner-occupied loans		58	55		-
	Commercial mortgage nonowner-occupied loans		115	101		-
	Commercial construction loans		4	4		-
	Commercial leases		3	3		-
Restructured residential mortgage loans			230	215		-
Restructured consumer loans and leases:
	Home equity		120	117		-
	Automobile loans		3	3		-
Total impaired portfolio loans and leases with no related ALLL		$	905	818		-
Total impaired portfolio loans and leases		$	2,255	2,065	a(a)	201

• Includes $461,$636and $362, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $210, $19 and $53, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2016.
• Excludes five restructured loans at March 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

			Unpaid
			Principal	Recorded
As of December 31, 2015 ($ in millions)			Balance	Investment		ALLL
With a related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	412	346		84
	Commercial mortgage owner-occupied loans(b)		28	21		5
	Commercial mortgage nonowner-occupied loans		75	64		12
	Commercial construction loans		4	4		2
	Commercial leases		3	3		1
Restructured residential mortgage loans			450	444		67
Restructured consumer loans and leases:
	Home equity		226	225		32
	Automobile loans		17	16		2
	Credit card		61	61		15
Total impaired portfolio loans and leases with a related ALLL		$	1,276	1,184		220
With no related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	228	182		-
	Commercial mortgage owner-occupied loans		54	51		-
	Commercial mortgage nonowner-occupied loans		126	111		-
	Commercial construction loans		9	5		-
	Commercial leases		1	1		-
Restructured residential mortgage loans			210	186		-
Restructured consumer loans and leases:
	Home equity		122	119		-
	Automobile loans		3	3		-
Total impaired portfolio loans and leases with no related ALLL		$	753	658		-
Total impaired portfolio loans and leases		$	2,029	1,842	a(a)	220

• Includes $491, $607and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and$203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015.
• Excludes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the three months ended:
			March 31, 2016		March 31, 2015
			Average	Interest	Average	Interest
			Recorded	Income	Recorded	Income
($ in millions)			Investment	Recognized	Investment	Recognized
Commercial loans and leases:
	Commercial and industrial loans	$	645	2	742	5
	Commercial mortgage owner-occupied loans(a)		71	-	112	1
	Commercial mortgage nonowner-occupied loans		165	1	262	2
	Commercial construction loans		7	-	62	-
	Commercial leases		5	-	5	-
Restructured residential mortgage loans			642	6	552	6
Restructured consumer loans and leases:
	Home equity		340	3	375	3
	Automobile loans		19	-	23	-
	Credit card		60	1	75	2
Total average impaired portfolio loans and leases		$	1,954	13	2,208	19

• Excludes five restructuredloansassociated with a consolidated VIEin which the Bancorp has no continuing credit risk due to the risk being assumed by a third party,with an average recorded investment of$27and$28 at March 31, 2016 and March 31, 2015, respectively, and an immaterial amount of interest income recognized for both the three months endedMarch 31, 2016 and March 31, 2015.

Nonperforming Assets
Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of:
			March 31,	December 31,
($ in millions)			2016	2015
Commercial loans and leases:
	Commercial and industrial loans	$	460	259
	Commercial mortgage owner-occupied loans(a)		41	46
	Commercial mortgage nonowner-occupied loans		37	35
	Commercial leases		5	1
Total nonaccrual portfolio commercial loans and leases			543	341
Residential mortgage loans			44	51
Consumer loans and leases:
	Home equity		80	79
	Automobile loans		2	2
	Credit card		32	33
Total nonaccrual portfolio consumer loans and leases			114	114
Total nonaccrual portfolio loans and leases(b)(c)		$	701	506
OREO and other repossessed property			124	141	a
Total nonperforming portfolio assets(b)(c)		$	825	647

• Excludes $20of restructured nonaccrual loans atboth March 31, 2016and December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party.
• Excludes$5and $12of nonaccrual loans held for sale at March 31, 2016 andDecember 31, 2015, respectively.
• Includes $5and $6of nonaccrual government insured commercial loans whose repayments are insured by the SBA atMarch 31, 2016 and December 31, 2015, respectively,and $1and $2of restructured nonaccrual government insured commercial loans atMarch 31, 2016and December 31, 2015, respectively.

The Bancorp's recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $290 million and $303 million as of March 31, 2016 and December 31, 2015, respectively.

Troubled Debt Restructurings

If a borrower is experiencing financial difficulty, the Bancorp may consider, in certain circumstances, modifying the terms of their loan to maximize collection of amounts due. Within each of the Bancorp's loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension of the loan's maturity date with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan's accrued interest. Modifying the terms of a loan may result in an increase or decrease to the ALLL depending upon the terms modified, the method used to measure the ALLL for a loan prior to modification, and whether any charge-offs were recorded on the loan before or at the time of modification. Refer to the ALLL section of Note 1 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015for information on the Bancorp's ALLL methodology. Upon modification of a loan, theBancorp measures the relatedimpairment as the difference between the estimated future cash flowsexpected to becollected on the modified loan,discounted at the original effective yield of the loan, and the carrying value of the loan.The resulting measurement may result in the need for minimal or no allowance because it is probable that all cash flows will be collected under the modified terms of the loan. In addition, if the stated interest rate was increased in a TDR, the cash flows on the modified loan, using the pre-modification interest rate as the discount rate, often exceed the recorded investment of the loan. Conversely, upon a modification that reduces the stated interest rate on a loan,the Bancorp recognizes an impairment loss as an increase to the ALLL. If a TDR involves a reduction of the principal balance of the loan or the loan's accrued interest, that amount is charged off to the ALLL.

As of March 31, 2016, the Bancorp had $46million and $22 million in line of credit and letter of credit commitments, respectively, compared to $39 million and $23 million in line of credit and letter of credit commitments as of December 31, 2015, respectively, to lend additional funds to borrowers whose terms have been modified in a TDR.

The following tables provide a summary of loans, by class, modified in a TDR by the Bancorp during the three months ended:
			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
March 31, 2016 ($ in millions)(a)		during the period(b)	during the period		modification	modification
Commercial loans:
	Commercial and industrial loans	24	$	56	(2)	-
	Commercial mortgage owner-occupied loans	7		6	(2)	-
	Commercial mortgage nonowner-occupied loans	2		-	-	-
Residential mortgage loans		243		36	2	-
Consumer loans:
	Home equity	64		5	-	-
	Automobile loans	78		1	-	-
	Credit card	2,592		12	2	1
Total portfolio loans		3,010	$	116	-	1

• Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
• Represents number of loans post-modification and excludes loans previously modified in a TDR.

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
March 31, 2015 ($ in millions)(a)		during the period(b)	during the period		modification	modification
Commercial loans:
	Commercial and industrial loans	21	$	18	(7)	3
	Commercial mortgage owner-occupied loans	7		8	(1)	-
	Commercial mortgage nonowner-occupied loans	6		3	-	-
Residential mortgage loans		300		42	1	-
Consumer loans:
	Home equity	76		4	-	-
	Automobile loans	131		2	-	-
	Credit card	3,667		19	4	-
Total portfolio loans		4,208	$	96	(3)	3

• Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
• Represents number of loans post-modification and excludes loans previously modified in a TDR.

The Bancorp considers TDRs that become 90 days or more past due under the modified terms as subsequently defaulted. For commercial loans not subject to individual review for impairment, loss rates that are applied for purposes of determining the ALLL include historical losses associated with subsequent defaults on loans previously modified in a TDR. For consumer loans, the Bancorp performs a qualitative assessment of the adequacy of the consumer ALLL by comparing the consumer ALLL to forecasted consumer losses over the projected loss emergence period (the forecasted losses include the impact of subsequent defaults of consumer TDRs). When a residential mortgage, home equity, automobile or other consumer loan that has been modified in a TDR subsequently defaults, the present value of expected cash flows used in the measurement of the potential impairment loss is generally limited to the expected net proceeds from the sale of the loan's underlying collateral and any resulting impairment loss is reflected as a charge-off or an increase in ALLL. The Bancorp recognizes ALLL for the entire balance of the credit card loans modified in a TDR that subsequently default.

The following tables provide a summary of TDRs that subsequently defaulted during the three months ended March 31, 2016 and 2015 that was within twelve months of the restructuring date:
		Number of		Recorded
March 31, 2016 ($ in millions)(a)		Contracts		Investment
Commercial loans and leases:
	Commercial and industrial loans	1	$	-
	Commercial mortgage nonowner-occupied loans	1		-
Residential mortgage loans		53		7
Consumer loans and leases:
	Home equity	6		1
	Credit card	423		2
Total portfolio loans and leases		484	$	10

• Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.

		Number of		Recorded
March 31, 2015 ($ in millions)(a)		Contracts		Investment
Residential mortgage loans		40	$	5
Consumer loans and leases:
	Home equity	5		-
	Automobile loans	4		-
	Credit card	588		3
Total portfolio loans and leases		637	$	8

• Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.

XML

Bank Premises and Equipment

3 Months Ended

Mar. 31, 2016

Bank Premises and Equipment

Bank Premises and Equipment

7. Bank Premises and Equipment

The following table provides a summary of bank premises and equipment as of:
($ in millions)		March 31, 2016	December 31, 2015
Land and improvements(a)	$	682	685
Buildings		1,695	1,755
Equipment		1,715	1,696
Leasehold improvements		403	403
Construction in progress		86	85
Bank premises and equipment held for sale:
Land and improvements		41	55
Buildings		23	20
Equipment		2	3
Leasehold improvements		2	3
Accumulated depreciation and amortization		(2,464)	(2,466)
Total bank premises and equipment	$	2,185	2,239

• AtMarch 31, 2016 and December 31, 2015, land and improvements included $101and $102,respectively, associated with parcels of undeveloped land intended for future branch expansion.

The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine that it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. On June 16, 2015, the Bancorp's Board of Directors authorized management to pursue a plan to further develop its distribution strategy, including a plan to consolidate and/or sell certainoperating branch locations and certain parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion (the “Branch Consolidation and Sales Plan”).

On September 3, 2015, the Bancorp announced the decision to enter into an agreement to sell branch banking locations, retail accounts, certain private banking deposits and related loan relationships in the Pittsburgh MSA to First National Bank of Pennsylvania. On September 30, 2015, the Bancorp announced the decision to enter into an agreement to sell its retail operations, including retail accounts, certain private banking deposits and related loan relationships in the St. Louis MSA to Great Southern Bank. Both transactions are part of the Branch Consolidation and Sales Plan.

On January 29, 2016, the Bancorp closed the previously announced sale in the St. Louis MSA to Great Southern Bank. The sale included loans, premises and equipment and deposits with aggregate carrying amounts of $158 million, $18 million and $228 million, respectively. The Bancorp recorded a gain on the sale of $8 million which was recorded in other noninterest income in the Condensed Consolidated Statements of Income.

Pursuant to the Branch Consolidation and Sales Plan, the Bancorp intended to consolidate and/or sell60operating branch locations and to sell an additional23parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion as of March 31, 2016.

The sale of the Pittsburgh MSA retail operations to First National Bank of Pennsylvania closed on April 22, 2016. For further information on this transaction, refer to Note 22.

The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. Impairment losses associated with such assessments andlower of cost or market adjustments were $2 million and $4 million for the three months ended March 31, 2016 and 2015, respectively. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income.

The following table summarizes the assets and liabilities classified as held for sale as a result of the Branch Consolidation and Sales Plan as of:
($ in millions)				March 31, 2016(d)
Assets:
	Loans held for sale:
		Commercial and industrial loans	$	8
		Commercial mortgage loans		5
		Residential mortgage loans		68
		Home equity		19
		Automobile loans		1
Total loans held for sale(a)			$	101
	Bank premises and equipment held for sale (included in the preceding table):
		Land and improvements(b)		28
		Buildings(b)		10
		Equipment(b)		2
		Leasehold improvements(b)		2
Total bank premises and equipment held for sale (included in the preceding table)			$	42
Total assets held for sale			$	143
Liabilities:
	Deposits held for sale:
		Noninterest-bearing deposits	$	51
		Interest-bearing deposits		280
Total deposits held for sale(c)			$	331
Total liabilities held for sale			$	331

• Included in loans held for sale in the Condensed Consolidated Balance Sheets.
• Included in bank premises and equipment in the Condensed Consolidated Balance Sheets.
• Included in noninterest-bearing deposits and interest-bearing deposits in the Condensed Consolidated Balance Sheets.
• Included in the Branch Banking, Consumer Lending and Investment Advisors business segments.

XML

Intangible Assets

3 Months Ended

Mar. 31, 2016

Intangible Assets

Intangible Assets

8. Intangible Assets

Intangible assets consist of core deposit intangibles, customer lists, non-compete agreements and cardholder relationships. Intangible assetsare amortized on either a straight-line or an accelerated basis over their estimated useful lives. Intangible assets have an estimated remaining weighted-average life at March 31, 2016of 4.2 years.

The details of the Bancorp’s intangible assets are shown in the following table:
			Gross Carrying	Accumulated	Net Carrying
($ in millions)			Amount	Amortization	Amount
As of March 31, 2016
	Core deposit intangibles	$	34	(26)	8
	Other		32	(29)	3
Total intangible assets		$	66	(55)	11
As of December 31, 2015
	Core deposit intangibles	$	34	(26)	8
	Other		33	(29)	4
Total intangible assets		$	67	(55)	12

As of March 31, 2016, all of the Bancorp's intangible assets were being amortized. Amortization expense recognized on intangible assets was immaterial for the three months ended March 31, 2016and$1millionfor the three months ended March 31, 2015.

The Bancorp's projections of amortization expense shown below are based on existing asset balances as of March 31, 2016. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2016 through 2020 is as follows:
($ in millions)		Total
Remainder of 2016	$	1
2017		2
2018		2
2019		1
2020		1

XML

VIE

3 Months Ended

Mar. 31, 2016

Variable Interest Entities

Variable Interest Entities

9. Variable Interest Entities

The Bancorp, in the normal course of business, engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equity to finance their activities without additional subordinated financial support or the equity investors of the entities as a group lack any of the characteristics of a controlling interest. The Bancorp evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Bancorp is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that requires a reconsideration. If the Bancorp is determined to be the primary beneficiary of a VIE, it must account for the VIE as a consolidated subsidiary. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accounting or other accounting standards as appropriate.

Consolidated VIEs

The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Condensed Consolidated Balance Sheets as of:
			Automobile Loan	CDC
March 31, 2016 ($ in millions)			Securitizations	Investments	Total
Assets:
	Cash and due from banks	$	146	1	147
	Commercial mortgage loans		-	47	47
	Automobile loans		2,131	-	2,131
	ALLL		(10)	(17)	(27)
	Other assets		10	1	11
Total assets		$	2,277	32	2,309
Liabilities:
	Other liabilities	$	4	-	4
	Long-term debt		2,102	-	2,102
Total liabilities		$	2,106	-	2,106
Noncontrolling interests		$	-	32	32

			Automobile Loan	CDC
December 31, 2015 ($ in millions)			Securitizations	Investments	Total
Assets:
	Cash and due from banks	$	151	1	152
	Commercial mortgage loans		-	47	47
	Automobile loans		2,490	-	2,490
	ALLL		(11)	(17)	(28)
	Other assets		14	-	14
Total assets		$	2,644	31	2,675
Liabilities
	Other liabilities	$	3	-	3
	Long-term debt		2,487	-	2,487
Total liabilities		$	2,490	-	2,490
Noncontrolling interests		$	-	31	31

Automobile Loan Securitizations

Insecuritization transactionsthat occurredduring the years ended December 31, 2015 and 2014, the Bancorp transferredan aggregate amount of $750million and $3.8 billion, respectively,in consumer automobile loans to bankruptcy remote trusts which were deemed to be VIEs. The primary purposes of the VIEswere to issue asset-backed securities with varying levels of credit subordination and payment priority, as well asresidual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIEs and, therefore, has an obligation to absorb losses and a right to receive benefits from the VIEs that could potentially be significant to the VIEs. In addition, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIEs that most significantly impact the economic performance of the VIEs. As a result, the Bancorp concluded that it is the primary beneficiary of the VIEs and, therefore, has consolidated these VIEs. The assets of the VIEs are restricted to the settlement of the asset-backed securities and other obligations of the VIEs. Third-party holders of the notes do not have recourse to the general assets of the Bancorp.

The economic performance of the VIEs is most significantly impacted by the performance of the underlying loans. The principal risks to which the VIEs are exposed include credit risk and prepayment risk. The credit and prepayment risks are managed through credit enhancements in the form of reserve accounts, overcollateralization, excess interest on the loans and the subordination of certain classes of asset-backed securities to other classes.

CDC Investments

CDC, a wholly-owned indirect subsidiary of the Bancorp, was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks. CDC generally co-invests with other unrelated companies and/or individuals and typically makes investments in a separate legal entity that owns the property under development. The entities are usually formed as limited partnerships and LLCs and CDC typically invests as a limited partner/investor member in the form of equity contributions. The economic performance of the VIEs is driven by the performance of their underlying investment projects as well as the VIEs' ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. The Bancorp's subsidiaries serve as the managing member of certain LLCs invested in business revitalization projects and have the right to make decisions that most significantly impact the economic performance of the LLCs. Additionally, the investor members do not own substantive kick-out rights or substantive participating rights over the managing member. The Bancorp has provided an indemnification guarantee to the investor member of these LLCs related to the qualification of tax credits generated by the investor members' investment. Accordingly, the Bancorp concluded that it is the primary beneficiary and, therefore, has consolidated these VIEs. As a result, the investor members' interests in these VIEs are presented as noncontrolling interests in the Condensed Consolidated Financial Statements. This presentation includes reporting separately the equity attributable to the noncontrolling interests in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Changes in Equity and reporting separately the comprehensive income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Comprehensive Income and the net income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Income. The Bancorp's maximum exposure related to these indemnificationsat March 31, 2016and December 31, 2015was $28million and $27million, respectively, which is based on an amount required to meet the investor member's defined target rate of return.

Non-consolidated VIEs
The following tables provide a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of:
		Total	Total	Maximum
March 31, 2016 ($ in millions)		Assets	Liabilities	Exposure
CDC investments	$	1,410	329	1,410
Private equity investments		212	-	270
Loans provided to VIEs		1,842	-	2,858

		Total	Total	Maximum
December 31, 2015 ($ in millions)		Assets	Liabilities	Exposure
CDC investments	$	1,455	367	1,455
Private equity investments		211	-	271
Loans provided to VIEs		1,630	-	2,599

CDC Investments

As noted previously, CDC typically invests in VIEs as a limited partner or investor member in the form of equity contributions and has no substantive kick-out or substantive participating rights over the managing member. The Bancorp has determined that it is not the primary beneficiary of these VIEs because it lacks the power to direct the activities that most significantly impact the economic performance of the underlying project or the VIEs' ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the managing members who exercise full and exclusive control of the operations of the VIEs. Accordingly, the Bancorp accounts for these investments under the equity method of accounting.

The Bancorp's funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions. The Bancorp's maximum exposure to loss as a result of its involvement with the VIEs is limited to the carrying amounts of the investments, including the unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Condensed Consolidated Balance Sheets, and the liabilities related to the unfunded commitments, which are included in other liabilities in the Condensed Consolidated Balance Sheets, are included in the previous tables for all periods presented. The Bancorp has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose the Bancorp to a loss. In certain arrangements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, thereby minimizing a portion of the Bancorp's risk.

Atboth March 31, 2016 and December 31, 2015, the Bancorp's CDC investments included $1.3billionofinvestments in affordable housing tax credits recognized in other assets inthe Condensed Consolidated Balance Sheets.The unfunded commitments related to these investments were $319 million and $356 million atMarch 31, 2016 and December 31, 2015, respectively. The unfunded commitments as of March 31, 2016 are expected to be funded from 2016 to 2033.

The Bancorp has accounted for all of its investments in qualified affordable housing tax credits using the equity method of accounting. The following table summarizes the impact to the Condensed Consolidated Statements of Income relating to investments in qualified affordable housing investments:
	Condensed Consolidated		For the three months ended March 31,
($ in millions)	Statements of Income Caption		2016	2015
Pre-tax investment and impairment losses(a)	Other noninterest expense	$	36	34
Tax credits and other benefits	Applicable income tax expense		(55)	(52)

• The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during threemonths ended March 31, 2016 and 2015.

Private Equity Investments

The Bancorp, through Fifth Third Capital Holdings, a wholly-owned indirect subsidiary of the Bancorp, invests as a limited partner in private equity funds which provide the Bancorp an opportunity to obtain higher rates of return on invested capital, while also creating cross-selling opportunities for the Bancorp's commercial products. Each of the limited partnerships has an unrelated third-party general partner responsible for appointing the fund manager. The Bancorp has not been appointed fund manager for any of these private equity funds. The funds finance primarily all of their activities from the partners' capital contributions and investment returns. The Bancorp has determined that it is not the primary beneficiary of the funds because it does not have the obligation to absorb the funds' expected losses or the right to receive the funds' expected residual returns that could potentially be significant to the funds' and lacks the power to direct the activities that most significantly impact the economic performance of the funds.The Bancorp, as a limited partner, does not have substantive participating or substantive kick-out rights over the general partner. Therefore, the Bancorp accounts for its investments in these limited partnerships under the equity method of accounting.

The Bancorp is exposed to losses arising from the negative performance of the underlying investments in the private equity funds. As a limited partner, the Bancorp's maximum exposure to loss is limited to the carrying amounts of the investments plus unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Condensed Consolidated Balance Sheets, are included in the previous tables.Also, atMarch 31, 2016 and December 31, 2015,the unfunded commitment amounts to the funds were $58 million and$60 million, respectively.The Bancorp made capital contributions of $2 million and $10 million, respectively, to private equity funds during the three months ended March 31, 2016 and 2015.The Bancorp recognized no OTTI on its investments in private equity funds during the three months ended March 31, 2016 and 2015.

Loans Provided to VIEs

The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are generally established to finance certain consumer and small business loans originated by third parties. The entities are primarily funded through the issuance of a loan from the Bancorp or a syndication through which the Bancorp is involved. The sponsor/administrator of the entities is responsible for servicing the underlying assets in the VIEs. Because the sponsor/administrator, not the Bancorp, holds the servicing responsibilities, which include the establishment and employment of default mitigation policies and procedures, the Bancorp does not hold the power to direct the activities that most significantly impact the economic performance of the entity and, therefore, is not the primary beneficiary.

The principal risk to which these entities are exposed is credit risk related to the underlying assets. The Bancorp's maximum exposure to loss is equal to the carrying amounts of the loans and unfunded commitments to the VIEs. The Bancorp's outstanding loans to these VIEs are included in commercial loans in Note 5. As ofMarch 31, 2016 and December 31, 2015, the Bancorp's unfunded commitments to these entities were $1.0billion and$969 million, respectively. The loans and unfunded commitments to these VIEs are included in the Bancorp's overall analysis of the ALLL and reserve for unfunded commitments, respectively. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs.

XML

Sales of Receivables and Servicing Rights

3 Months Ended

Mar. 31, 2016

Sales of Receivables and Servicing Rights

Sales of Receivables and Servicing Rights

10. Sales of Receivables and Servicing Rights

Residential Mortgage TDR Loan Sale

In March of 2015, the Bancorp recognized a $37 million gain, included in other noninterest income in the Condensed Consolidated Statements of Income, on the sale of certain HFS residential mortgage loans with a carrying value of $568 million that were previously modified in a TDR. As part of this sale, the Bancorp provided certain standard representations and warranties. Additionally, the Bancorp did not obtain servicing responsibilities on the sales of these loans and the investors have no credit recourse to the Bancorp's other assets for failure of debtors to pay when due.

Residential Mortgage Loan Sales

The Bancorp sold fixed and adjustable-rate residential mortgage loans during the threemonths ended March 31, 2016 and 2015. In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties, however the investors have no recourse to the Bancorp's other assets for failure of debtors to pay when due. The Bancorp receives annual servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates.

Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows:
		For the three months ended
		March 31,
($ in millions)		2016		2015
Residential mortgage loan sales(a)	$	1,114	a	1,001	(b)
Origination fees and gains on loan sales		42		44
Gross mortgage servicing fees		52		59

• Represents the unpaid principal balance at the time of the sale.
• Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were soldduring the first quarter of 2015.

Servicing Rights
The following table presents changes in the servicing rights related to residential mortgage and automobile loans for the three months ended March 31:
($ in millions)		2016	2015
Carrying amount before valuation allowance:
Balance, beginning of period	$	1,204	1,392
Servicing rights that result from the transfer of residential mortgage loans		12	13
Amortization		(27)	(34)
Balance, end of period	$	1,189	1,371
Valuation allowance for servicing rights:
Balance, beginning of period	$	(419)	(534)
Provision for MSR impairment		(85)	(48)
Balance, end of period		(504)	(582)
Carrying amount after valuation allowance	$	685	789

The Bancorp's projections of amortization expense shown below are based on existing asset balances and static key economic assumptions as of March 31, 2016. Future amortization expense may vary from these projections.

Estimated amortization expense for the remainder of 2016 through 2020 is as follows:
($ in millions)		Total
Remainder of 2016	$	90
2017		109
2018		98
2019		89
2020		80

Temporary impairment or impairment recovery, affected through a change in the MSR valuation allowance, is captured as a component of mortgage banking net revenue in the Condensed Consolidated Statements of Income. The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of the MSR portfolio. This strategymay include the purchase of free-standing derivatives and various available-for-sale securities. The interest income, mark-to-market adjustments and gain or loss from sale activities associated with these portfolios are expected to economically hedge a portion of the change in value of the MSR portfolio caused by fluctuating OAS spreads, earnings rates and prepayment speeds.The fair value of the servicing asset is based on the present value of expected future cash flows.

The following table displays the beginning and ending fair value of the servicing rights for the three months ended March 31:
($ in millions)		2016	2015
Fixed-rate residential mortgage loans:
Balance, beginning of period	$	757	823
Balance, end of period		660	759
Adjustable-rate residential mortgage loans:
Balance, beginning of period		27	33
Balance, end of period		25	29
Fixed-rate automobile loans:
Balance, beginning of period		1	2
Balance, end of period		-	1

The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Changes in fair value and settlement of free-standing derivatives purchased
to economically hedge the MSR portfolio	$	96	65
Provision for MSR impairment		(85)	(48)

As of March 31, 2016 and 2015, the key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale or securitization resulting from transactions completed during the three months ended were as follows:
		March 31, 2016					March 31, 2015
	Rate	Weighted-Average Life (in years)	Prepayment Speed (annual)		OAS Spread (bps)	Weighted-Average Default Rate	Weighted-Average Life (in years)	Prepayment Speed (annual)		OAS Spread (bps)	Weighted-Average Default Rate
Residential mortgage loans:
Servicing rights	Fixed	6.3	12.6	%	539	N/A	6.2	12.6	%	900	N/A
Servicing rights	Adjustable	3.0	27.5		681	N/A	3.6	23.4		1,180	N/A

Based on historical credit experience, expected credit losses for residential mortgage loan servicing rights have been deemed immaterial, as the Bancorp sold the majority of the underlying loans without recourse. At March 31, 2016 and December 31, 2015, the Bancorp serviced $57.8billion and$59.0billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets.

At March 31, 2016, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in other assumptions are as follows:
					Prepayment						Residual Servicing
					Speed Assumption						Cash Flows
			Fair	Weighted-Average Life				Impact of Adverse Change on Fair Value			OAS Spread		Impact of Adverse Change on Fair Value
($ in millions)(a)	Rate		Value	(in years)	Rate			10%	20%	50%	(bps)		10%	20%
Residential mortgage loans:
Servicing rights	Fixed	$	660	5.2	14.1	%	$	(33)	(63)	(138)	603	$	(15)	(29)
Servicing rights	Adjustable		25	2.9	27.8			(2)	(3)	(7)	713		-	(1)

• The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial.

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on thesevariations in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. The Bancorp believes variations of these levels are reasonably possible; however, there is the potential that adverse changes in key assumptions could be even greater. Also, in the previous table, the effect of a variation in a particular assumption on the fair value of the interests that continue to be held by the Bancorp is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract these sensitivities.

XML

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2016

Derivative Financial Instruments

Derivative Financial Instruments

11. Derivative Financial Instruments

The Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce certain risks related to interest rate, prepayment and foreign currency volatility. Additionally, the Bancorp holds derivative instruments for the benefit of its commercial customers and for other business purposes. The Bancorp does not enter into unhedged speculative derivative positions.

The Bancorp's interest rate risk management strategy involves modifying the repricing characteristics of certain financial instruments so that changes in interest rates do not adversely affect the Bancorp's net interest margin and cash flows. Derivative instruments that the Bancorp may use as part of its interest rate risk management strategy include interest rate swaps, interest rate floors, interest rate caps, forward contracts, forward starting interest rate swaps, options and swaptions. Interest rate swap contracts are exchanges of interest payments, such as fixed-rate payments for floating-rate payments, based on a stated notional amount and maturity date. Interest rate floors protect against declining rates, while interest rate caps protect against rising interest rates. Forward contracts are contracts in which the buyer agrees to purchase, and the seller agrees to make delivery of, a specific financial instrument at a predetermined price or yield. Options provide the purchaser with the right, but not the obligation, to purchase or sell a contracted item during a specified period at an agreed upon price. Swaptions are financial instruments granting the owner the right, but not the obligation, to enter into or cancel a swap.

Prepayment volatility arises mostly from changes in fair value of the largely fixed-rate MSR portfolio, mortgage loans and mortgage-backed securities. The Bancorp may enter into various free-standing derivatives (principal-only swaps, interest rate swaptions, interest rate floors, mortgage options, TBAs and interest rate swaps) to economically hedge prepayment volatility. Principal-only swaps are total return swaps based on changes in the value of the underlying mortgage principal-only trust. TBAs are a forwardpurchase agreement for a mortgage-backed securities trade whereby the terms of the security are undefined at the time the trade is made.

Foreign currency volatility occurs as the Bancorp enters into certain loans denominated in foreign currencies. Derivative instruments that the Bancorp may use to economically hedge these foreign denominated loans include foreign exchange swaps and forward contracts.

The Bancorp also enters into derivative contracts (including foreign exchange contracts, commodity contracts and interest rate contracts) for the benefit of commercial customers and other business purposes. The Bancorp economically hedges significant exposures related to these free-standing derivatives by entering into offsetting third-party contracts with approved, reputable and independent counterparties with substantially matching terms and currencies. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Bancorp's exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. Credit risk is minimized through credit approvals, limits, counterparty collateral and monitoring procedures.

The Bancorp's derivative assets include certain contractual features in which the Bancorp requires the counterparties to provide collateral in the form of cash and securities to offset changes in the fair value of the derivatives, including changes in the fair value due to credit risk of the counterparty. As of March 31, 2016 and December 31, 2015, the balance of collateral held by the Bancorp for derivative assets was $858 million and $821million, respectively. The credit component negatively impacting the fair value of derivative assetsassociated with customer accommodation contracts as ofMarch 31, 2016 andDecember 31, 2015 was$13 million and$9 million, respectively.

In measuring the fair value of derivative liabilities, the Bancorp considers its own credit risk, taking into consideration collateral maintenance requirements of certain derivative counterparties and the duration of instruments with counterparties that do not require collateral maintenance. When necessary, the Bancorp posts collateral primarily in the form of cash and securities to offset changes in fair value of the derivatives, including changes in fair value due to the Bancorp's credit risk. As of March 31, 2016 and December 31, 2015, the balance of collateral posted by the Bancorp for derivative liabilities was $544million and$504 million, respectively. Certain of the Bancorp's derivative liabilities contain credit-risk related contingent features that could result in the requirement to post additional collateral upon the occurrence of specified events. As of March 31, 2016, the fair value of the additional collateral that could be required to be posted as a result of the credit-risk related contingent features being triggered was immaterial to the Condensed Consolidated Financial Statements.The posting of collateral has been determined to remove the need for further consideration of credit risk. As a result, the Bancorp determined that the impact of the Bancorp's credit risk to the valuation of its derivative liabilities was immaterial to the Condensed Consolidated Financial Statements.

The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodation derivatives are held as free-standing derivatives.

The fair value of derivative instruments is presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Derivative instruments with a positive fair value are reported in other assets in the Condensed Consolidated Balance Sheets while derivative instruments with a negative fair value are reported in other liabilities in the Condensed Consolidated Balance Sheets. Cash collateral payables and receivables associated with the derivative instruments are not added to or netted against the fair value amounts.

The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of:
				Fair Value
		Notional		Derivative	Derivative
March 31, 2016 ($ in millions)		Amount		Assets	Liabilities
Qualifying Hedging Instruments
Fair value hedges:
Interest rate swaps related to long-term debt	$	2,705		453	-
Total fair value hedges				453	-
Cash flow hedges:
Interest rate swaps related to C&I loans		4,475		98	-
Total cash flow hedges				98	-
Total derivatives designated as qualifying hedging instruments				551	-
Derivatives Not Designated as Qualifying Hedging Instruments
Free-standing derivatives - risk management and other business purposes:
Interest rate contracts related to MSRs		9,407		363	55
Forward contracts related to held for sale residential mortgage loans		1,423		-	8
Stock warrant associated with Vantiv Holding, LLC		420		308	-
Swap associated with the sale of Visa, Inc. Class B shares		1,274		-	55
Foreign exchange contracts		129		-	3
Total free-standing derivatives - risk management and other business purposes				671	121
Free-standing derivatives - customer accommodation:
Interest rate contracts for customers		30,604		357	366
Interest rate lock commitments		1,121		29	-
Commodity contracts		2,248		233	211
Foreign exchange contracts		15,039		285	269
Total free-standing derivatives - customer accommodation				904	846
Total derivatives not designated as qualifying hedging instruments				1,575	967
Total			$	2,126	967

				Fair Value
		Notional		Derivative	Derivative
December 31, 2015 ($ in millions)		Amount		Assets	Liabilities
Qualifying Hedging Instruments
Fair value hedges:
Interest rate swaps related to long-term debt	$	2,705		372	2
Total fair value hedges				372	2
Cash flow hedges:
Interest rate swaps related to C&I loans		5,475		39	-
Total cash flow hedges				39	-
Total derivatives designated as qualifying hedging instruments				411	2
Derivatives Not Designated as Qualifying Hedging Instruments
Free-standing derivatives - risk management and other business purposes:
Interest rate contracts related to MSRs		11,657		239	9
Forward contracts related to held for sale residential mortgage loans		1,330		3	1
Stock warrant associated with Vantiv Holding, LLC		369		262	-
Swap associated with the sale of Visa, Inc. Class B shares		1,292		-	61
Total free-standing derivatives - risk management and other business purposes				504	71
Free-standing derivatives - customer accommodation:
Interest rate contracts for customers		29,889		242	249
Interest rate lock commitments		721		15	-
Commodity contracts		2,464		294	276
Foreign exchange contracts		16,243		386	340
Total free-standing derivatives - customer accommodation				937	865
Total derivatives not designated as qualifying hedging instruments				1,441	936
Total			$	1,852	938

Fair Value Hedges

The Bancorp may enter into interest rate swaps to convert its fixed-rate funding to floating-rate. Decisions to convert fixed-rate funding to floating are made primarily through consideration of the asset/liability mix of the Bancorp, the desired asset/liability sensitivity and interest rate levels. For all interest rate swaps as of March 31, 2016, an assessment of hedge effectivenesswas performed using regression analysis and such swaps were accounted for using the “long-haul” method. The long-haul method requires a quarterly assessment of hedge effectiveness and measurement of ineffectiveness. For interest rate swaps accounted for as a fair value hedge using the long-haul method, ineffectiveness is the difference between the changes in the fair value of the interest rate swap and changes in fair value of the relatedhedged item attributable to the risk being hedged. The ineffectiveness on interest rate swaps hedging fixed-rate funding is reported within interest expense in the Condensed Consolidated Statements of Income.

The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income:
	Condensed Consolidated		For the three months
	Statements of		ended March 31,
($ in millions)	Income Caption		2016	2015
Change in fair value of interest rate swaps hedging long-term debt	Interest on long-term debt	$	83	41
Change in fair value of hedged long-term debt attributable to the risk being hedged	Interest on long-term debt		(85)	(43)

Cash Flow Hedges

The Bancorp may enter into interest rate swaps to convert floating-rate assets and liabilities to fixed rates or to hedge certain forecasted transactions. The assets or liabilities may be grouped in circumstances where they share the same risk exposure that the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit cash flow variability of floating-rate assets and liabilities. As of March 31, 2016, all hedges designated as cash flow hedges were assessed for effectiveness using regression analysis. Ineffectiveness is generally measured as the amount by which the cumulative change in the fair value of the hedging instrument exceeds the present value of the cumulative change in the hedged item's expected cash flows attributable to the risk being hedged. Ineffectiveness is reported within other noninterest income in the Condensed Consolidated Statements of Income. The effective portion of the cumulative gains or losses on cash flow hedges are reported within AOCI and are reclassified from AOCI to current period earnings when the forecasted transaction affects earnings. As of March 31, 2016, the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 45 months.

Reclassified gains and losses on interest rate contracts related to commercial and industrial loans are recorded withininterest income in the Condensed Consolidated Statements of Income. As of March 31, 2016 andDecember 31, 2015, $61 million and $22 million, respectively, of net deferred gains, net of tax, on cash flow hedges were recorded in AOCI in the Condensed Consolidated Balance Sheets. As of March 31, 2016, approximately $14 million in net deferred gains, net of tax, recorded in AOCI are expected to be reclassified into earnings during the next twelve months.This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to March 31, 2016.

During the threemonths ended March 31, 2016 and 2015, there were no gains or losses reclassified from AOCI into earningsassociated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would no longer occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP.

The following table presents the pretax net gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Amount of pretax net gains recognized in OCI	$	74	52
Amount of pretax net gains reclassified from OCI into net income		14	16

Free-Standing Derivative Instruments – Risk Management and Other Business Purposes

As part of its overall risk management strategy relative to its mortgage banking activity, the Bancorp may enter into various free-standing derivatives (principal-only swaps, interest rate swaptions, interest rate floors, mortgage options, TBAs and interest rate swaps) to economically hedge changes in fair value of its largely fixed-rate MSR portfolio. Principal-only swaps hedge the mortgage-LIBOR spread because these swaps appreciate in value as a result of tightening spreads. Principal-only swaps also provide prepayment protection by increasing in value when prepayment speeds increase, as opposed to MSRs that lose value in a faster prepayment environment. Receive fixed/pay floating interest rate swaps and swaptions increase in value when interest rates do not increase as quickly as expected.

The Bancorp enters into forward contracts and mortgage options to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. IRLCs issued on residential mortgage loan commitments that will be held for sale are also considered free-standing derivative instruments and the interest rate exposure on these commitments is economically hedged primarily with forward contracts. Revaluation gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking net revenue in the Condensed Consolidated Statements of Income.

In conjunction with the initialsale of the Bancorp's 51% interest in Vantiv Holding, LLC, the Bancorp received a warrant which is accounted for as a free-standing derivative. Refer to Note 20 for further discussion of significant inputs and assumptions used in the valuation of the warrant.

In conjunction with the initial sale of Visa, Inc. Class B shares in 2009, the Bancorp entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B shares into Class A shares. This total return swap is accounted for as a free-standing derivative. Refer to Note 20 for further discussion of significant inputs and assumptions used in the valuation of this instrument.

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table:
	Condensed Consolidated		For the three months
	Statements of		ended March 31,
($ in millions)	Income Caption		2016	2015
Interest rate contracts:
Forward contracts related to residential mortgage loans held for sale	Mortgage banking net revenue	$	(11)	-
Interest rate contracts related to MSR portfolio	Mortgage banking net revenue		96	65
Foreign exchange contracts:
Foreign exchange contracts for risk management purposes	Other noninterest income		(4)	15
Equity contracts:
Stock warrant associated with Vantiv Holding, LLC	Other noninterest income		47	70
Swap associated with sale of Visa, Inc. Class B shares	Other noninterest income		1	(17)

Free-Standing Derivative Instruments – Customer Accommodation

The majority of the free-standing derivative instruments the Bancorp enters into are for the benefit of its commercial customers. These derivative contracts are not designated against specific assets or liabilities on the Condensed Consolidated Balance Sheets or to forecasted transactions; and therefore, do not qualify for hedge accounting. These instruments include foreign exchange derivative contracts entered into for the benefit of commercial customers involved in international trade to hedge their exposure to foreign currency fluctuations and commodity contracts to hedge such items as natural gas and various other derivative contracts. The Bancorp may economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable and independent counterparties with substantially matching terms. The Bancorp hedges its interest rate exposure on commercial customer transactions by executing offsetting swap agreements with primary dealers. Revaluation gains and losses on interest rate, foreign exchange, commodity and other commercial customer derivative contracts are recorded as a component of corporate banking revenue in the Condensed Consolidated Statements of Income.

The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp only enters into these risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. As of March 31, 2016 and December 31, 2015, the total notional amount of the risk participation agreements was $2.3 billion and $1.7 billion, respectively,and the fair value was a liability of $4 million and$3 million at March 31, 2016 and December 31, 2015, respectively,which is included in interest rate contracts for customers. As of March 31, 2016, the risk participation agreements had a weighted-average remaining life of 3.4 years.

The Bancorp's maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves in its loan and lease portfolio.

Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of:
		March 31,	December 31,
($ in millions)		2016	2015
Pass	$	2,324	1,650
Special mention		17	7
Substandard		3	7
Total	$	2,344	1,664

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table:
			For the three months
	Condensed Consolidated		ended March 31,
($ in millions)	Statements of Income Caption		2016	2015
Interest rate contracts:
Interest rate contracts for customers (contract revenue)	Corporate banking revenue	$	7	6
Interest rate contracts for customers (credit portion of fair value adjustment)	Other noninterest expense		(1)	(1)
Interest rate lock commitments	Mortgage banking net revenue		42	35
Commodity contracts:
Commodity contracts for customers (contract revenue)	Corporate banking revenue		1	1
Commodity contracts for customers (credit losses)	Other noninterest expense		-	(2)
Commodity contracts for customers (credit portion of fair value adjustment)	Other noninterest expense		(1)	5
Foreign exchange contracts:
Foreign exchange contracts for customers (contract revenue)	Corporate banking revenue		16	21
Foreign exchange contracts for customers (credit portion of fair value adjustment)	Other noninterest expense		(2)	(1)

Offsetting Derivative Financial Instruments

The Bancorp's derivative transactions are generally governed by ISDA Master Agreements and similar arrangements, which include provisions governing the setoff of assets and liabilities between the parties. When the Bancorp has more than one outstanding derivative transaction with a single counterparty, the setoff provisions contained within these agreements generally allow the non-defaulting party the right to reduce its liability to the defaulting party by amounts eligible for setoff, including the collateral received as well as eligible offsetting transactions with that counterparty, irrespective of the currency, place of payment, or booking office. The Bancorp's policy is to present its derivative assets and derivative liabilities in the Condensed Consolidated Balance Sheets on a gross basis, even when provisions allowing for setoff are in place.

Collateral amounts included in the tables below consist primarily of cash and highly-rated government-backed securities.

The following tables provide a summary of offsetting derivative financial instruments:
	Gross Amount		Gross Amounts Not Offset in the
	Recognized in the		Condensed Consolidated Balance Sheets
As of March 31, 2016 ($ in millions)	Condensed Consolidated Balance Sheets(a)		Derivatives	Collateral(b)	Net Amount
Assets
Derivatives	$	1,789	(656)	(578)		555
Total assets		1,789	(656)	(578)		555
Liabilities
Derivatives		967	(656)	(110)		201
Total liabilities	$	967	(656)	(110)		201

• Amount does not include the stock warrantassociated with Vantiv Holding, LLC andIRLCs because these instruments are not subject to master netting or similar arrangements.
• Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.

	Gross Amount		Gross Amounts Not Offset in the
	Recognized in the		Condensed Consolidated Balance Sheets
As of December 31, 2015 ($ in millions)	Condensed Consolidated Balance Sheets(a)		Derivatives	Collateral(b)	Net Amount
Assets
Derivatives	$	1,575	(512)	(627)		436
Total assets		1,575	(512)	(627)		436
Liabilities
Derivatives		938	(512)	(173)		253
Total liabilities	$	938	(512)	(173)		253

• Amount does not include the stock warrantassociated with Vantiv Holding, LLC andIRLCs because these instruments are not subject to master netting or similar arrangements.
• Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.

XML

Other Short Term Borrowings

3 Months Ended

Mar. 31, 2016

Other Short Term Borrowings

Other Short Term Borrowings

12. Other Short-Term Borrowings

Borrowings with original maturities of one year or less are classified as short-term. The following table presents a summary of the Bancorp's other short-term borrowings as of:
		March 31,	December 31,
($ in millions)		2016	2015
FHLB advances	$	2,000	-
Securities sold under repurchase agreements		785	925
Derivative collateral		738	582
Total other short-term borrowings	$	3,523	1,507

The Bancorp's securities sold under repurchase agreements are accounted for as secured borrowings and are collateralized by securities included in available-for-sale and other securities in the Condensed Consolidated Balance Sheets. These securities are subject to changes in market value and, therefore, the Bancorp may increase or decrease the level of securities pledged as collateral based upon these movements in market value.

The following table summarizes the Bancorp's securities sold under repurchase agreements by the type of collateral securing the borrowing and remaining contractual maturity as of:
($ in millions)			March 31, 2016		December 31, 2015
			Amount	Remaining Contractual Maturity	Amount	Remaining Contractual Maturity
Collateral type:
	Agency residential mortgage-backed securities	$	602	Overnight	646	Overnight
	U.S. Treasury and federal agencies securities		183	Overnight	279	Overnight
Total securities sold under repurchase agreements		$	785		925

XML

Capital Actions

3 Months Ended

Mar. 31, 2016

Capital Actions

Capital Actions

14. Capital Actions

Accelerated Share Repurchase Transactions

During the three months ended March 31, 2016, the Bancorp entered intoor settled accelerated share repurchase transactions. As part of these transactions, the Bancorp entered into forward contracts in which the final number of shares delivered at settlementwas based generally on a discount to the average daily volume weighted-average price of the Bancorp's common stock during the term of these repurchase agreements. The accelerated share repurchaseswere treated as two separate transactions, (i) the acquisition of treasury shares on the acquisition date and (ii) a forward contract indexed to the Bancorp's common stock.

The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the three months ended March 31, 2016:
Repurchase Date		Amount ($ in millions)	Shares Repurchased on Repurchase Date	Shares Received from Forward Contract Settlement	Total Shares Repurchased	Settlement Date
December 14, 2015	$	215	9,248,482	1,782,477	11,030,959	January 14, 2016
March 4, 2016		240	12,623,762	1,868,379	14,492,141	April 11, 2016

XML

Long Term Debt

3 Months Ended

Mar. 31, 2016

Long-Term Debt

Long-Term Debt

13.Long-Term Debt

On March 15, 2016, the Bank issued and sold $1.5billion in aggregate principal amount of unsecured bank notes. The bank notes consisted of $750 million of 2.30% senior fixed-rate notes, with a maturity of three years, due on March 15, 2019; and $750 million of 3.85% subordinated fixed-rate notes, with a maturity of ten years, due onMarch 15, 2026. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date.

XML

Commitments, Contingent Liabilities and Guarantees

3 Months Ended

Mar. 31, 2016

Commitments, Contingent Liabilities and Guarantees

Commitments, Contingent Liabilities and Guarantees

15. Commitments, Contingent Liabilities and Guarantees

The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers. The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepayment risks, provide funding, equipment and locations for its operations and invest in its communities. These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts recognized in the Condensed Consolidated Balance Sheets. The creditworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancorp's credit policies. The Bancorp's significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Condensed Consolidated Balance Sheets are discussed in further detail below:

Commitments
The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of:
		March 31,	December 31,
($ in millions)		2016	2015
Commitments to extend credit	$	66,908	66,884
Letters of credit		2,945	3,055
Forward contracts related to held for sale residential mortgage loans		1,423	1,330
Noncancelable operating lease obligations		618	635
Purchase obligations		70	60
Capital commitments for private equity investments		62	60
Capital expenditures		30	30
Capital lease obligations		24	27

Commitments to extend credit

Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. The Bancorp is exposed to credit risk in the event of nonperformance by the counterparty for the amount of the contract. Fixed-rate commitments are also subject to market risk resulting from fluctuations in interest rates and the Bancorp's exposure is limited to the replacement value of those commitments. As of March 31, 2016 and December 31, 2015, the Bancorp had a reserve for unfunded commitments, including letters of credit,totaling $144 million and $138million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same risk rating system utilized within its loan and lease portfolio.

Risk ratings under this risk rating system are summarized in the following table as of:
		March 31,	December 31,
($ in millions)		2016	2015
Pass	$	65,672	65,645
Special mention		585	647
Substandard		648	592
Doubtful		3	-
Total commitments to extend credit	$	66,908	66,884

Letters of credit

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of March 31, 2016:
($ in millions)
Less than 1 year(a)	$	1,673
1 - 5 years(a)		1,244
Over 5 years		28
Total letters of credit	$	2,945

• Includes $25and $15issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than1 year and between 1- 5 years, respectively.

Standby letters of credit accounted for99%of total letters of credit at bothMarch 31, 2016and December 31, 2015,and are considered guarantees in accordancewith U.S. GAAP. Approximately64%and65%of the total standby letters of credit were collateralized as of March 31, 2016 andDecember 31, 2015, respectively. In the event of nonperformance by the customers, the Bancorp has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The reserve related to these standby letters of credit,which was included in the total reserve for unfunded commitments, was$3 million and immaterial, respectively, atMarch 31, 2016 and December 31, 2015. The Bancorp monitors the credit risk associated with letters of credit using the same risk rating system utilized within its loan and lease portfolio.

Risk ratings under this risk rating system are summarized in the following table as of:
		March 31,	December 31,
($ in millions)		2016	2015
Pass	$	2,477	2,606
Special mention		138	130
Substandard		250	258
Doubtful		80	61
Total letters of credit	$	2,945	3,055

AtMarch 31, 2016 and December 31,2015, the Bancorp had outstanding letters of credit that were supporting certain securities issued as VRDNs. The Bancorp facilitates financing for its commercial customers, which consist of companies and municipalities, by marketing the VRDNs to investors. The VRDNs pay interest to holders at a rate of interest that fluctuates based upon market demand. The VRDNs generally have long-term maturity dates, but can be tendered by the holder for purchase at par value upon proper advance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As ofMarch 31, 2016 and December 31, 2015, total VRDNs in which the Bancorp was the remarketing agent or were supported by a Bancorp letter of credit were $1.2billion and $1.3billion, respectively, of which FTS acted as the remarketing agent to issuers on $1.0billion and$1.1 billion, respectively. As remarketing agent, FTS is responsible for finding purchasers for VRDNs that are put by investors. The Bancorp issued letters of credit, as a credit enhancement, to$841million and $921million of the VRDNs remarketed by FTS, in addition to $185 million and $187 millionin VRDNs remarketed by third parties atMarch 31, 2016 and December 31, 2015, respectively. These letters of credit are included in the total letters of credit balance provided in the previous table. The Bancorp held $5 million and an immaterial amount of these VRDNs in its portfolio and classified them as trading securities at March 31, 2016 and December 31, 2015, respectively.

Forward contracts related to held for sale residential mortgage loans

The Bancorp enters into forward contracts to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. The outstanding notional amounts of these forward contracts are included in the summary of significant commitments table for all periods presented.

Noncancelable operating lease obligations and other commitments

The Bancorp's subsidiaries have entered into a number of noncancelable lease agreements. The minimum rental commitments under noncancelable lease agreements are shown in the summary of significant commitments table. The Bancorp has also entered into a limited number of agreements for work related to banking center construction and to purchase goods or services.

Contingent Liabilities

Private mortgage reinsurance

For certain mortgage loans originated by the Bancorp, borrowers may be required to obtain PMI provided by third-party insurers. In some instances, these insurers cede a portion of the PMI premiums to the Bancorp, and the Bancorp provides reinsurance coverage within a specified range of the total PMI coverage. The Bancorp's reinsurance coverage typically ranges from 5% to 10% of the total PMI coverage. The Bancorp's maximum exposure in the event of nonperformance by the underlying borrowers is equivalent to the Bancorp's total outstanding reinsurance coverage, which was $27 million at bothMarch 31, 2016 andDecember 31, 2015. At bothMarch 31, 2016 and December 31, 2015, the Bancorp maintained a reserve of $2 millionrelated to exposures within the reinsurance portfolio which was included in other liabilities in the CondensedConsolidated Balance Sheets. During2009, the Bancorp suspended the practice of providing reinsurance of PMI for newly originated mortgage loans.

Legal claims

There are legal claims pending against the Bancorp and its subsidiaries that have arisen in the normal course of business. Refer to Note 16 for additional information regarding these proceedings.

Guarantees

The Bancorp has performance obligations upon the occurrence of certain events under financial guarantees provided in certain contractual arrangements as discussed in the following sections.

Residential mortgage loans sold with representation and warranty provisions

Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty provisions. A contractual liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading.For more information on how the Bancorp establishes the residential mortgage repurchase reserve, refer to Note 1 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015.

During the fourth quarter of 2013, the Bancorp settled certain repurchase claims related to residential mortgage loans originated and sold to FHLMC prior to January 1, 2009 for $25 million, after paid claim credits and other adjustments. The settlement removes the Bancorp's responsibility to repurchase or indemnify FHLMC for representation and warranty violations on any loan sold prior to January 1, 2009 except in limited circumstances.

As of March 31, 2016 and December 31, 2015, the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $23 million and $25 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets.

The Bancorp uses the best information available when estimating its mortgage representation and warranty reserve; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of March 31, 2016, are reasonably possible. The Bancorp currently estimates that it is reasonably possible that it could incur losses related to mortgage representation and warranty provisions in an amount up to approximately $34 million in excess of amounts reserved. This estimate was derived by modifying the key assumptions previously discussedto reflect management's judgment regarding reasonably possible adverse changes to those assumptions. The actual repurchase losses could vary significantly from the recorded mortgage representation and warranty reserve or this estimate of reasonably possible losses, depending on the outcome of various factors, including those previously discussed.

The Bancorp paid an immaterial amount in the form of make whole payments for the three months ended March 31, 2016and paid $1 million in the form of make whole payments for the three months ended March 31, 2015. For the three months ended March 31, 2016 and 2015, the Bancorprepurchased $4 million and $9 million, respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the three months ended March 31, 2016 and 2015 were $6 million and $9million, respectively. Total outstanding repurchase demand inventory was $2 million at March 31, 2016 compared to $4 million at December 31, 2015.

The following table summarizes activity in the reserve for representation and warranty provisions:
		For the three months ended March 31,
($ in millions)		2016	2015
Balance, beginning of period	$	25	35
Net (reductions) additions to the reserve		(2)	2
Losses charged against the reserve		-	(1)
Balance, end of period	$	23	36

The following tables provide a rollforward of unresolved claims by claimant type for the three months ended March 31:
	GSE			Private Label
2016 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	16	$	4	2	$	-
New demands	71		6	2		-
Loan paydowns/payoffs	(4)		(1)	-		-
Resolved demands	(68)		(7)	(3)		-
Balance, end of period	15	$	2	1	$	-

	GSE			Private Label
2015 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	37	$	6	1	$	1
New demands	118		9	6		-
Loan paydowns/payoffs	(4)		-	-		-
Resolved demands	(119)		(11)	(5)		(1)
Balance, end of period	32	$	4	2	$	-

Residential mortgage loans sold with credit recourse

The Bancorp sold certain residential mortgage loans in the secondary market with credit recourse. In the event of any customer default, pursuant to the credit recourse provided, the Bancorp is required to reimburse the third party. The maximum amount of credit risk in the event of nonperformance by the underlying borrowers is equivalent to the total outstanding balance. In the event of nonperformance, the Bancorp has rights to the underlying collateral value securing the loan. The outstanding balances on these loans sold with credit recourse were $451 million and $465million atMarch 31, 2016 and December 31, 2015, respectively, and the delinquency rates were2.6% at March 31, 2016and3.0% at December 31, 2015.The Bancorp maintained an estimated credit loss reserve on these loans sold with creditrecourse of $9 millionat bothMarch 31, 2016 and December 31, 2015, recorded in other liabilities in the Condensed Consolidated Balance Sheets. To determine the credit loss reserve, the Bancorp used an approach that is consistent with its overall approach in estimating credit losses for various categories of residential mortgage loans held in its loan portfolio.

Margin accounts

FTS, an indirect wholly-owned subsidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing agent for any loss, liability, damage, cost or expense incurred as a result of customers failing to comply with margin or margin maintenance calls on all margin accounts. The margin account balance held by the brokerage clearing agent was $11 million and $10 million at March 31, 2016 and December 31, 2015, respectively. In the event of any customer default, FTS has rights to the underlying collateral provided. Given the existence of the underlying collateral provided and negligible historical credit losses, the Bancorp does not maintain a loss reserve related to the margin accounts.

Long-term borrowing obligations

The Bancorp had certain fully and unconditionally guaranteed long-term borrowing obligations issued by wholly-owned issuing trust entities of$62million at both March 31, 2016 and December 31, 2015.

Visa litigation

The Bancorp, as a member bank of Visa prior to Visa's reorganization and IPO (the “IPO”) of its Class A common shares (the “Class A Shares”) in 2008, had certain indemnification obligations pursuant to Visa's certificate of incorporation and by-laws and in accordance with their membership agreements. In accordance with Visa's by-laws prior to the IPO, the Bancorp could have been required to indemnify Visa for the Bancorp's proportional share of losses based on the pre-IPO membership interests. As part of its reorganization and IPO, the Bancorp's indemnification obligation was modified to include only certain known or anticipated litigation (the “Covered Litigation”) as of the date of the restructuring. This modification triggered a requirement for the Bancorp to recognize a liability equal to the fair value of the indemnification liability.

In conjunction with the IPO, the Bancorp received 10.1 million of Visa's Class B common shares (the “Class B Shares”) based on the Bancorp's membership percentage in Visa prior to the IPO. The Class B Shares are not transferable (other than to another member bank) until the later of the third anniversary of the IPO closing or the date which the Covered Litigation has been resolved; therefore, the Bancorp's Class B Shares were classified in other assets and accounted for at their carryover basis of $0. Visa initially deposited $3 billion of the proceeds from the IPO into a litigation escrow account, established for the purpose of funding judgments in, or settlements of, the Covered Litigation. Since then, when Visa's litigation committee determined that the escrow account was insufficient, Visa issued additional Class A Shares and deposited the proceeds from the sale of the Class A Shares into the litigation escrow account. When Visa funded the litigation escrow account, the Class B Shares were subjected to dilution through an adjustment in the conversion rate of Class B Shares into Class A Shares.

In 2009, the Bancorp completed the sale of Visa, Inc. Class B Shares and entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A Shares. The swap terminates on the later of the third anniversary of Visa's IPO or the date on which the Covered Litigation is settled. Refer to Note 20 for additional information on the valuation of the swap. The counterparty to the swap as a result of its ownership of the Class B Shares will be impacted by dilutive adjustments to the conversion rate of the Class B Shares into Class A Shares caused by any Covered Litigation losses in excess of the litigation escrow account. If actual judgments in, or settlements of, the Covered Litigation significantly exceed current expectations, then additional funding by Visa of the litigation escrow account and the resulting dilution of the Class B Shares could result in a scenario where the Bancorp's ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exceeds the value of the Class B Shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve liability and a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap.

As of the date of the Bancorp's sale of Visa Class B Shares and through March 31, 2016, the Bancorp has concluded that it is not probable that the Visa Litigation Exposure will exceed the Class B value. Based on this determination, upon the sale of Class B Shares, the Bancorp reversed its net Visa litigation reserve liability and recognized a free-standing derivative liability associated with the total return swap. The fair value of the swap liability was $55 million atMarch 31, 2016 and$61 million at December 31, 2015. Refer to Note 11 and Note16 for further information.

After the Bancorp's sale of Visa Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows:

		Visa	Bancorp Cash
Period ($ in millions)		Funding Amount	Payment Amount
Q2 2010	$	500	20
Q4 2010		800	35
Q2 2011		400	19
Q1 2012		1,565	75
Q3 2012		150	6
Q3 2014		450	18	i

XML

Legal and Regulatory Proceedings

3 Months Ended

Mar. 31, 2016

Legal And Regulatory Proceedings

Legal and Regulatory Proceedings

16. Legal and Regulatory Proceedings

Litigation

In April 2006, the Bancorp was added as a defendant in a consolidated antitrust class action lawsuit originally filed against Visa®, MasterCard® and several other major financial institutions in the United States District Court for the Eastern District of New York. The plaintiffs, merchants operating commercial businesses throughout the U.S. and trade associations, claimed that the interchange fees charged by card-issuing banks were unreasonable and sought injunctive relief and unspecified damages. In addition to being a named defendant, the Bancorp is also subject to a possible indemnification obligation of Visa as discussed in Note 15and has also entered into judgment and loss sharing agreements with Visa, MasterCard and certain other named defendants. In October 2012, the parties to the litigation entered into a settlement agreement. On January 14, 2014, the court entered a final order approving the class settlement. A number of merchants filed appeals from that approval. The appellate court held a hearing on those appeals on September 28, 2015, and the matter is under consideration. In addition, on July 28, 2015, merchants opposing the class settlement filed a motion in the District Court to set aside the order approving the settlement because of alleged misconduct in another case by certain counsel to the merchant class and a former attorney for MasterCard. Pursuant to the terms of the settlement agreement, the Bancorp paid $46 million into a class settlement escrow account. Approximately 8,000 merchants have requested exclusion from the class settlement, and therefore, pursuant to the terms of the settlement agreement, 25% of the funds paid into the class settlement escrow account have been returned to the control of the defendants. More than 460 of the merchants who requested exclusion from the class have filed separate federal lawsuits against Visa, MasterCard and certain other defendants alleging similar antitrust violations. These “opt-out” federal lawsuits have been transferred to the United States District Court for the Eastern District of New York. The Bancorp was not named as a defendant in any of the opt-out federal lawsuits, but may have obligations pursuant to indemnification arrangements and/or the judgment or loss sharing agreements noted above. On July 18, 2015, the court in which all the remaining opt-out federal lawsuits have been consolidated denied defendants' motion to dismiss the complaints. Refer to Note 15 for further information.

On March 29, 2016, the court in two class action lawsuits consolidated as Dudenhoeffer v Fifth Third Bancorp et al. filed in 2008 in the United States District Court for the Southern District of Ohio preliminarily approved a settlement in which the Bancorp agreed to pay $6 million and make certain changes to the Bancorp's profit sharing plan. The complaints alleged that the Bancorp and certain officers violated ERISA by continuing to offer Fifth Third stock in the Bancorp's profit sharing plan when it was no longer a prudent investment. The settlement is subject to final court approval.

On August 3, 2012, William Klopfenstein and Adam McKinney filed a lawsuit against Fifth Third Bank in the United States District Court for the Northern District of Ohio (Klopfenstein et al. v. Fifth Third Bank), alleging that the 120% APR that Fifth Third disclosed on its Early Access program was misleading. Early Access is a deposit-advance program offered to eligible customers with checking accounts. The plaintiffs sought to represent a nationwide class of customers who used the Early Access program and repaid their cash advances within 30 days. On October 31, 2012, the case was transferred to the United States District Court for the Southern District of Ohio. In 2013, four similar putative class actions were filed against Fifth Third Bank in federal courts throughout the country (Lori and Danielle Laskaris v. Fifth Third Bank, Janet Fyock v. Fifth Third Bank, Jesse McQuillen v. Fifth Third Bank, and Brian Harrison v. Fifth Third Bank). Those four lawsuits were transferred to the Southern District of Ohio and consolidated with the original lawsuit as In re: Fifth Third Early Access Cash Advance Litigation. On behalf of a putative class, the plaintiffs seek unspecified monetary and statutory damages, injunctive relief, punitive damages, attorney's fees, and pre- and post-judgment interest. On March 30, 2015, the court dismissed all claims alleged in the consolidated lawsuit except a claim under the TILA. The parties are currently engaged in discovery. No trial date has been scheduled.

On July 5, 2012, Nina Investments, LLC filed a lawsuit against Fifth Third Bank in the Circuit Court of Cook County, Illinois, (Nina Investments, LLC. v. Fifth Third Bank, et al.) alleging fraud and conspiracy to commit fraud related to a credit facility established by Fifth Third Bank in 2007 to finance life insurance premiums. Nina invested funds in an entity related to the borrower under the credit facility and is claiming over $70 million in damages based on its alleged loss of these funds. Nina alleges that it would have made different investment decisions if Fifth Third had disclosed fraud committed by the borrower with the alleged knowledge of Fifth Third employees. Nina filed this lawsuit in response to a lawsuit filed by Fifth Third Bank in the same court on June 11, 2010 against Nina and other defendants (Fifth Third Bank v. Concord Capital Management, LLC, et al.) alleging fraud and breach of contract. The court recently dismissed Fifth Third's claims against certain defendants but Fifth Third's claims against Nina and other defendants remain pending. Accordingly, the parties have been conducting discovery in the coordinated actions. Discovery is presently scheduled to close on May 16, 2016, and trial has been scheduled for October 31, 2016.

The Bancorp and its subsidiaries are not parties to any other material litigation. However, there are other litigation matters that arise in the normal course of business. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, management believes that the resulting liability, if any, from these other actions would not have a material effect upon the Bancorp's consolidated financial position, results of operations or cash flows.

Governmental Investigations and Proceedings

The Bancorp and/or its affiliates are involved in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies and law enforcement authorities, as well as self-regulatory bodies regarding their respective businesses. Additional matters will likely arise from time to time. Any of these matters may result in material adverse consequences to the Bancorp, its affiliates and/or their respective directors, officers and other personnel, including adverse judgments, findings, settlements, fines, penalties, orders, injunctions or other actions, amendments and/or restatements of the Bancorp's SEC filings and/or financial statements, as applicable, and/or determinations of material weaknesses in our disclosure controls and procedures. Investigations by regulatory authorities may from time to time result in civil or criminal referrals to law enforcement.

Reasonably Possible Losses in Excess of Accruals

The Bancorp and its subsidiaries are parties to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolution are inherently difficult to predict. The following factors, among others, contribute to this lack of predictability: claims often include significant legal uncertainties, damages alleged by plaintiffs are often unspecified or overstated, discovery may not have started or may not be complete and material facts may be disputed or unsubstantiated. As a result of these factors, the Bancorp is not always able to provide an estimate of the range of reasonably possible outcomes for each claim. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accrual is adjusted from time to time thereafter as appropriate to reflect changes in circumstances. The Bancorp also determines, when possible (due to the uncertainties described above), estimates of reasonably possible losses or ranges of reasonably possible losses, in excess of amounts accrued. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” Thus, references to the upper end of the range of reasonably possible loss for cases in which the Bancorp is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for cases for which the Bancorp believes the risk of loss is more than slight. For matters where the Bancorp is able to estimate such possible losses or ranges of possible losses, the Bancorp currently estimates that it is reasonably possible that it could incur losses related to legal and regulatory proceedings in an aggregate amount up to approximately $38million in excess of amounts accrued, with it also being reasonably possible that no losses will be incurred in these matters. The estimates included in this amount are based on the Bancorp's analysis of currently available information, and as new information is obtained the Bancorp may change its estimates.

For these matters and others where an unfavorable outcome is reasonably possible but not probable, there may be a range of possible losses in excess of the established accrual that cannot be estimated. Based on information currently available, advice of counsel, available insurance coverage and established accruals, the Bancorp believes that the eventual outcome of the actions against the Bancorp and/or its subsidiaries, including the matters described above, will not, individually or in the aggregate, have a material adverse effect on the Bancorp's consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Bancorp's results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period.

XML

Income Taxes

3 Months Ended

Mar. 31, 2016

Income Taxes

Income Taxes

17. Income Taxes

The applicable income tax expense was $108 million and $124 million for the three months ended March 31, 2016 and 2015, respectively. The effective tax rates for the three months ended March 31, 2016 and 2015 were 25.0% and 25.6%, respectively.

While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp's uncertain tax positions could increase or decrease during the next 12 months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next 12 months.

XML

Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2016

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

18. Accumulated Other Comprehensive Income

The tables below present the activity of the components of OCI and AOCI for the three months ended March 31, 2016 and 2015:
			Total Other			Total Accumulated Other
			Comprehensive Income			Comprehensive Income
			Pretax	Tax	Net	Beginning	Net	Ending
March 31, 2016 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale securities arising
	during period	$	695	(243)	452
Reclassification adjustment for net gains on available-for-sale
	securities included in net income		(8)	3	(5)
Net unrealized gains on available-for-sale securities			687	(240)	447	238	447	685
Unrealized holding gains on cash flow hedge derivatives arising
	during period		74	(26)	48
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(14)	5	(9)
Net unrealized gains on cash flow hedge derivatives			60	(21)	39	22	39	61
Reclassification of amounts to net periodic benefit costs			2	(1)	1
Defined benefit pension plans, net			2	(1)	1	(63)	1	(62)
Total		$	749	(262)	487	197	487	684

			Total Other			Total Accumulated Other
			Comprehensive Income			Comprehensive Income
			Pretax	Tax	Net	Beginning	Net	Ending
March 31, 2015 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale securities arising
	during period	$	215	(74)	141
Reclassification adjustment for net gains on available-for-sale
	securities included in net income		(12)	4	(8)
Net unrealized gains on available-for-sale securities			203	(70)	133	475	133	608
Unrealized holding gains on cash flow hedge derivatives arising
	during period		52	(18)	34
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(16)	6	(10)
Net unrealized gains on cash flow hedge derivatives			36	(12)	24	23	24	47
Reclassification of amounts to net periodic benefit costs			3	(1)	2
Defined benefit pension plans, net			3	(1)	2	(69)	2	(67)
Total		$	242	(83)	159	429	159	588

The table below presents reclassifications out of AOCI:
		Condensed Consolidated Statements of Income Caption		For the three months ended March 31,
Components of AOCI: ($ in millions)				2016	2015
Net unrealized gains on available-for-sale securities:(b)
	Net gains included in net income	Securities gains, net	$	8	12
		Income before income taxes		8	12
		Applicable income tax expense		(3)	(4)
		Net income		5	8
Net unrealized gains on cash flow hedge derivatives:(b)
	Interest rate contracts related to C&I loans	Interest and fees on loans and leases		14	16
		Income before income taxes		14	16
		Applicable income tax expense		(5)	(6)
		Net income		9	10
Net periodic benefit costs:(b)
	Amortization of net actuarial loss	Employee benefits expense(a)		(2)	(3)
		Income before income taxes		(2)	(3)
		Applicable income tax expense		1	1
		Net income		(1)	(2)
Total reclassifications for the period		Net income	$	13	16

• This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015 for information on the computation of net periodic benefit cost.
• Amounts in parentheses indicate reductions to net income.

XML

Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share

Earnings Per Share

19. Earnings Per Share

The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the three months ended March 31:
		2016			2015
			Average	Per Share		Average	Per Share
(in millions, except per share data)		Income	Shares	Amount	Income	Shares	Amount
Earnings Per Share:
Net income attributable to Bancorp	$	327			361
Dividends on preferred stock		15			15
Net income available to common shareholders		312			346
Less: Income allocated to participating securities		3			3
Net income allocated to common shareholders	$	309	774	0.40	343	810	0.42
Earnings Per Diluted Share:
Net income available to common shareholders	$	312			346
Effect of dilutive securities:
Stock-based awards		-	4		-	9
Net income available to common shareholders		312			346
plus assumed conversions
Less: Income allocated to participating securities		3			3
Net income allocated to common shareholders
plus assumed conversions	$	309	778	0.40	343	819	0.42

Shares are excluded from the computation of net income per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted earnings per share computation for the threemonths ended March 31, 2016 and 2015excludes 20million and 18 million, respectively, of SARs andan immaterial amount ofstock optionsbecause their inclusion would have been anti-dilutive.

The diluted earnings per share computation for the three months ended March 31, 2016 excludes the impact of the forward contract related to the March 4, 2016 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp's common stock during the first quarter of 2016, the counterparty to the transactionwould have been required to deliver additional shares for the settlement of the forward contractas of March 31, 2016, and thus the impact of theforward contract related to the accelerated share repurchase transactionwould have been anti-dilutive to earnings per share.

The diluted earnings per share computation for the three months ended March 31, 2015 excludes the impact of the forward contract related to the January 27, 2015 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp's common stock during the first quarter of 2015, the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of March 31, 2015, and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share.

XML

Fair Value Measurements

3 Months Ended

Mar. 31, 2016

Fair Value Measurements

Fair Value Measurements

20. Fair Value Measurements

The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument's fair value measurement. For more information regarding the fair value hierarchy, refer to Note 1 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015.

Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables summarize assets and liabilities measured at fair value on a recurring basis, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of:
	Fair Value Measurements Using
March 31, 2016 ($ in millions)		Level 1(c)	Level 2(c)	Level 3	Total Fair Value
Assets:
Available-for-sale and other securities:
U.S. Treasury and federal agencies securities	$	77	1,084	-	1,161
Obligations of states and political subdivisions securities		-	52	-	52
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	15,129	-	15,129
Agency commercial mortgage-backed securities		-	8,205	-	8,205
Non-agency commercial mortgage-backed securities		-	3,120	-	3,120
Asset-backed securities and other debt securities		-	1,520	-	1,520
Equity securities(a)		99	1	-	100
Available-for-sale and other securities(a)		176	29,111	-	29,287
Trading securities:
U.S. Treasury and federal agencies securities		1	17	-	18
Obligations of states and political subdivisions securities		-	54	-	54
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	5	-	5
Agency commercial mortgage-backed securities		-	1	-	1
Asset-backed securities and other debt securities		-	23	-	23
Equity securities		304	-	-	304
Trading securities		305	100	-	405
Residential mortgage loans held for sale		-	600	-	600
Residential mortgage loans(b)		-	-	160	160
Derivative assets:
Interest rate contracts		1	1,270	29	1,300
Foreign exchange contracts		-	285	-	285
Equity contracts		-	-	308	308
Commodity contracts		37	196	-	233
Derivative assets(d)		38	1,751	337	2,126
Total assets	$	519	31,562	497	32,578
Liabilities:
Derivative liabilities:
Interest rate contracts	$	9	416	4	429
Foreign exchange contracts		-	272	-	272
Equity contracts		-	-	55	55
Commodity contracts		21	190	-	211
Derivative liabilities(e)		30	878	59	967
Short positions(e)		15	9	-	24
Total liabilities	$	45	887	59	991

• Excludes FHLB, FRB and DTCC restricted stock holdings totaling $248, $355 and $1 respectively, at March 31, 2016.
• Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
• During the three months ended March 31, 2016, no assets or liabilities were transferred between Level 1 and Level 2.
• Included in other assets in the Condensed Consolidated Balance Sheets.
• Included in other liabilities in the Condensed Consolidated Balance Sheets.

	Fair Value Measurements Using
December 31, 2015 ($ in millions)		Level 1(c)	Level 2(c)	Level 3	Total Fair Value
Assets:
Available-for-sale and other securities:
U.S. Treasury and federal agencies securities	$	100	1,087	-	1,187
Obligations of states and political subdivisions securities		-	52	-	52
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	15,081	-	15,081
Agency commercial mortgage-backed securities		-	7,862	-	7,862
Non-agency commercial mortgage-backed securities		-	2,804	-	2,804
Asset-backed securities and other debt securities		-	1,355	-	1,355
Equity securities(a)		98	1	-	99
Available-for-sale and other securities(a)		198	28,242	-	28,440
Trading securities:
U.S. Treasury and federal agencies securities		-	19	-	19
Obligations of states and political subdivisions securities		-	9	-	9
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	6	-	6
Asset-backed securities and other debt securities		-	19	-	19
Equity securities		333	-	-	333
Trading securities		333	53	-	386
Residential mortgage loans held for sale		-	519	-	519
Residential mortgage loans(b)		-	-	167	167
Derivative assets:
Interest rate contracts		3	892	15	910
Foreign exchange contracts		-	386	-	386
Equity contracts		-	-	262	262
Commodity contracts		54	240	-	294
Derivative assets(d)		57	1,518	277	1,852
Total assets	$	588	30,332	444	31,364
Liabilities:
Derivative liabilities:
Interest rate contracts	$	1	257	3	261
Foreign exchange contracts		-	340	-	340
Equity contracts		-	-	61	61
Commodity contracts		37	239	-	276
Derivative liabilities(e)		38	836	64	938
Short positions(e)		22	7	-	29
Total liabilities	$	60	843	64	967

• Excludes FHLB, FRB and DTCC restricted stock holdings totaling $248, $355 and $1, respectively, at December 31, 2015.
• Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
• During the year ended December 31, 2015, no assets or liabilities were transferred between Level 1 and Level 2.
• Included in other assets in the Condensed Consolidated Balance Sheets.
• Included in other liabilities in the Condensed Consolidated Balance Sheets.

The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Available-for-sale and other securitiesand trading securities

Where quoted prices are available in an active market, securities areclassified within Level 1 of the valuation hierarchy. Level 1 securitiesinclude U.S. Treasury securities and exchange-traded equities. Ifquoted market prices are not available, then fair values are estimatedusing pricing models, quoted prices of securities with similarcharacteristics or DCFs. Examples of such instruments, which areclassified within Level 2 of the valuation hierarchy, include federalagencies securities, obligations of states and political subdivisionssecurities, agency residential mortgage-backed securities, agency andnon-agency commercial mortgage-backed securities and asset-backedsecurities and other debt securities. These securities aregenerally valued using a market approach based on observableprices of securities with similar characteristics.

Residential mortgage loans held for sale

For residential mortgage loans held for sale for which the fair valueelection has been made, fair value is estimated based uponmortgage-backed securities prices and spreads to those prices or, forcertain ARM loans, DCF models that may incorporate theanticipated portfolio composition, credit spreads of asset-backedsecurities with similar collateral and market conditions. Theanticipated portfolio composition includes the effect of interest ratespreads and discount rates due to loan characteristics such as thestate in which the loan was originated, the loan amount and theARM margin. Residential mortgage loans held for sale that arevalued based on mortgage-backed securities prices are classified within Level 2 of the valuation hierarchy as the valuation is based onexternal pricing for similar instruments. ARM loans classified asheld for sale are also classified within Level 2 of the valuationhierarchy due to the use of observable inputs in the DCF model.These observable inputs include interest rate spreads from agencymortgage-backed securities market rates and observable discountrates.

Residential mortgage loans

Residential mortgage loans held for sale that are reclassified to held for investment are transferred from Level 2 to Level 3 of the fair value hierarchy. It is the Bancorp's policy to value any transfers between levels of the fair value hierarchy based on end of period fair values.

For residential mortgage loans for which the fair value electionhas been made, and that are reclassified from held for sale to heldfor investment, the fair value estimation is based on mortgage-backedsecurities prices, interest rate risk and an internallydeveloped credit component. Therefore, these loans are classifiedwithin Level 3 of the valuation hierarchy. An adverse change in theloss rate or severity assumption would result in a decrease in fairvalue of the related loan. The Secondary Marketing department,which reports to the Bancorp's Head of the Consumer Bank, inconjunction with the Consumer Credit Risk department, whichreports to the Bancorp's Chief Risk Officer, are responsible fordetermining the valuation methodology for residential mortgageloans held for investment. The Secondary Marketing departmentreviews loss severity assumptions quarterly to determine ifadjustments are necessary based on decreases in observable housingmarket data. This group also reviews trades in comparablebenchmark securities and adjusts the values of loans as necessary.Consumer Credit Risk is responsible for the credit component ofthe fair value which is based on internally developed loss ratemodels that take into account historical loss rates and loss severitiesbased on underlying collateral values.

Derivatives

Exchange-traded derivatives valued using quoted prices and certain over-the-counter derivatives valued using active bids are classified within Level 1 of the valuation hierarchy. Most of the Bancorp's derivative contracts are valued using DCF or other models that incorporate current market interest rates, credit spreads assigned to the derivative counterparties and other market parameters and, therefore, are classified within Level 2 of the valuation hierarchy. Such derivatives include basic and structured interest rate, foreign exchange and commodity swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy. At March 31, 2016 andDecember 31, 2015, derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a warrant associated with the initial sale of the Bancorp's 51% interest in Vantiv Holding, LLC to Advent International and a total return swap associated with the Bancorp's sale of Visa, Inc. Class B shares. Level 3 derivatives also include IRLCs, which utilize internally generated loan closing rate assumptions as a significant unobservable input in the valuation process.

As of March 31, 2016, the warrant allows the Bancorp to purchase approximately 7.8 million incremental nonvoting units in Vantiv Holding, LLC at an exercise price of $15.98 per unit and requires settlementunder certain defined conditions involving change of control. The fair value of the warrant is calculated in conjunction with a third party valuation provider by applying Black-Scholes option-pricing models using probability weighted scenarios which contain the following inputs: Vantiv, Inc. stock price, strike price per the Warrant Agreement and unobservable inputs, such as expected term and expected volatility.

For the warrant, an increase in the expected term (years) and the expected volatility assumptions would result in an increase in the fair value; conversely, a decrease in these assumptions would result in a decrease in the fair value. The Accounting and Treasury departments, both of which report to the Bancorp's Chief Financial Officer, determined the valuation methodology for the warrant. Accounting and Treasury review changes in fair value on a quarterly basis for reasonableness based on changes in historical and implied volatilities, expected terms, probability weightings of the related scenarios, and other assumptions.

Under the terms of the total return swap, the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Visa, Inc. Class B shares into Class A shares. Additionally, the Bancorp will make a quarterly payment based on Visa's stock price and the conversion rate of the Visa, Inc. Class B shares into Class A shares until the date on which the Covered Litigation is settled.The fair value of the total return swap was calculated using a DCF model based on unobservable inputs consisting of management's estimate of the probability of certain litigation scenarios, the timing of the resolution of the Covered Litigation and Visa litigation loss estimates in excess, or shortfall, of the Bancorp's proportional share of escrow funds.

An increase in the loss estimate or a delay in the resolution of the Covered Litigation would result in an increase in fair value; conversely, a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in fair value. The Accounting and Treasury departments determined the valuation methodology for the total return swap. Accounting and Treasury review the changes in fair value on a quarterly basis for reasonableness based on Visa stock price changes, litigation contingencies, and escrow funding.

The net fair value asset of the IRLCs at March 31, 2016 was $29million. Immediate decreases in current interest rates of 25 bps and 50 bps would result in increases in the fair value of the IRLCs of approximately $8 million and $15 million, respectively. Immediate increases of current interest rates of 25 bps and 50 bps would result in decreases in the fair value of the IRLCs of approximately $10 million and $21 million, respectively. The decrease in fair value of IRLCs due to immediate 10% and 20% adverse changes in the assumed loan closing rates would be approximately $3 million and $6 million, respectively, and the increase in fair value due to immediate10% and 20% favorable changes in the assumed loan closing rates would be approximately $3 million and $6 million, respectively.These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear.

The Consumer Line of Business Finance department, which reports to the Bancorp's Chief Financial Officer, and the aforementioned Secondary Marketing department are responsible for determining the valuation methodology for IRLCs. Secondary Marketing, in conjunction with a third party valuation provider, periodically reviewloan closing rate assumptions and recent loan sales to determine if adjustments are needed for current market conditions not reflected in historical data.

The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		Residential	Interest Rate	Equity
For the three months ended March 31, 2016		Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Loans	Net(a)	Net(a)	Fair Value
Balance, beginning of period	$	167	12	201		380
Total gains (realized/unrealized):
Included in earnings		1	42	48		91
Purchases		-	(1)	-		(1)
Settlements		(11)	(28)	4		(35)
Transfers into Level 3(b)		3	-	-		3
Balance, end of period	$	160	25	253		438
The amount of total gains for the period
included in earnings attributable to the change in unrealized
gains or losses relating to assets still held at March 31, 2016(c)	$	1	29	48		78

• Net interest rate derivatives include derivative assets and liabilities of$29and $4, respectively, as of March 31, 2016. Net equity derivatives include derivative assets and liabilities of $308 and $55, respectively, as of March 31, 2016.
• Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.
• Includes interest income and expense.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		Residential	Interest Rate	Equity
For the three months ended March 31, 2015		Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Loans	Net(a)	Net(a)	Fair Value
Balance, beginning of period	$	108	10	366		484
Total gains or losses (realized/unrealized):
Included in earnings		2	35	53		90
Settlements		(7)	(28)	6		(29)
Transfers into Level 3(b)		23	-	-		23
Balance, end of period	$	126	17	425		568
The amount of total gains for the period
included in earnings attributable to the change in unrealized
gains or losses relating to assets still held at March 31, 2015(c)	$	2	19	53		74

• Net interest rate derivatives include derivative assets and liabilities of$19and $2, respectively, as of March 31, 2015. Net equity derivatives include derivative assets and liabilities of $485and $60, respectively, as of March 31, 2015.
• Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.
• Includes interest income and expense.

The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Mortgage banking net revenue	$	43	36
Corporate banking revenue		-	1
Other noninterest income		48	53
Total gains	$	91	90

The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at March 31, 2016 and 2015 were recorded in the Condensed Consolidated Statements of Income as follows:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Mortgage banking net revenue	$	30	20
Corporate banking revenue		-	1
Other noninterest income		48	53
Total gains	$	78	74

The following tables present information as of March 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis:
As of March 31, 2016 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Residential mortgage loans	$	160	Loss rate model	Interest rate risk factor	(6.0) - 16.5%	4.4%
				Credit risk factor	0 - 80.5%	1.4%
IRLCs, net		29	Discounted cash flow	Loan closing rates	5.6 - 94.0%	75.0%
Stock warrant associated with Vantiv		308	Black-Scholes option-	Expected term (years)	2.0 - 13.3	5.8
Holding, LLC			pricing model	Expected volatility(a)	23.0 - 30.4%	25.9%
Swap associated with the sale of Visa, Inc.		(55)	Discounted cash flow	Timing of the resolution	12/31/2016 -	NM
Class B shares				of the Covered Litigation	3/31/2021

• Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms.

As of March 31, 2015 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Residential mortgage loans	$	126	Loss rate model	Interest rate risk factor	(5.7) - 18.3%	5.3%
				Credit risk factor	0 - 47.9%	1.2%
IRLCs, net		19	Discounted cash flow	Loan closing rates	2.3 - 87.6%	67.0%
Stock warrant associated with Vantiv		485	Black-Scholes option-	Expected term (years)	2.0 - 14.3	5.9
Holding, LLC			pricing model	Expected volatility(a)	22.9 - 32.2%	26.5%
Swap associated with the sale of Visa, Inc.		(60)	Discounted cash flow	Timing of the resolution	9/30/2016-	NM
Class B shares				of the Covered Litigation	3/31/2021

• Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of March 31, 2016 and 2015, and for which a nonrecurring fair value adjustment was recorded during the three months ended March 31, 2016 and 2015, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period.
		Fair Value Measurements Using				Total (Losses) Gains
						For the three months
As of March 31, 2016 ($ in millions)		Level 1	Level 2	Level 3	Total	ended March 31, 2016
Commercial loans held for sale	$	-	-	5	5	(2)
Commercial and industrial loans		-	-	347	347	(47)
Commercial mortgage loans		-	-	85	85	6
Commercial construction loans		-	-	-	-	2
MSRs		-	-	685	685	(85)
OREO		-	-	27	27	(3)
Bank premises and equipment		-	-	12	12	1
Total	$	-	-	1,161	1,161	(128)

		Fair Value Measurements Using				Total (Losses) Gains
						For the three months
As of March 31, 2015 ($ in millions)		Level 1	Level 2	Level 3	Total	ended March 31, 2015
Commercial loans held for sale	$	-	-	1	1	4
Commercial and industrial loans		-	-	366	366	(43)
Commercial mortgage loans		-	-	52	52	(13)
Residential mortgage loans		-	-	55	55	(1)
MSRs		-	-	788	788	(48)
OREO		-	-	36	36	(8)
Bank premises and equipment		-	-	5	5	(3)
Operating lease equipment		-	-	39	39	(30)
Total	$	-	-	1,342	1,342	(142)

The following tables present information as of March 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis:
As of March 31, 2016 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Commercial loans held for sale	$	5	Appraised value	Appraised value	NM	NM
				Cost to sell	NM	10.0%
Commercial and industrial loans		347	Appraised value	Collateral value	NM	NM
Commercial mortgage loans		85	Appraised value	Collateral value	NM	NM
Commercial construction loans		0	Appraised value	Collateral value	NM	NM
MSRs		685	Discounted cash flow	Prepayment speed	0 - 100%	(Fixed) 14.1% (Adjustable) 27.8%
				OAS spread (bps)	364-1,515	(Fixed) 603 (Adjustable) 713
OREO		27	Appraised value	Appraised value	NM	NM
Bank premises and equipment		12	Appraised value	Appraised value	NM	NM

As of March 31, 2015 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Commercial loans held for sale	$	1	Appraised value	Appraised value	NM	NM
				Cost to sell	NM	10.0%
Commercial and industrial loans		366	Appraised value	Collateral value	NM	NM
Commercial mortgage loans		52	Appraised value	Collateral value	NM	NM
Residential mortgage loans		55	Appraised value	Appraised value	NM	NM
MSRs		788	Discounted cash flow	Prepayment speed	0.6 - 100%	(Fixed) 10.0% (Adjustable) 32.2%
				OAS spread (bps)	430-1,700	(Fixed) 920 (Adjustable) 640
OREO		36	Appraised value	Appraised value	NM	NM
Bank premises and equipment		5	Appraised value	Appraised value	NM	NM
Operating lease equipment		39	Appraised value	Appraised value	NM	NM

Commercial loans held for sale

During thethree months ended March 31, 2016 and 2015, respectively, the Bancorp transferred$5 million and an immaterial amount of commercial loansfrom the portfolio to loans held for sale that upon transfer were measured at lower of cost or fair value. There wereimmaterial amounts of fair value adjustments for both the three months ended March 31, 2016and 2015that were generally based on appraisals of the underlying collateralor were estimated by discounting future cash flows using the current market rates of loans to borrowers with similar credit characteristics, similar remaining maturities, prepayment speeds and loss severities and were, therefore, classified within Level 3 of the valuation hierarchy. Additionally, there was an immaterial amount and $1 million offair value adjustments on existing commercial loans held for sale for the three months ended March 31, 2016 and 2015, respectively. The fair value adjustments were also based on appraisals of the underlying collateral.During the three months ended March 31, 2016 the Bancorp recognized a $2 million loss on the sale of commercial loans held for sale. During the three months ended March 31, 2015 the Bancorp recognized a $5 million gain on the sale of commercial loans held for sale.

The Accounting department determines the procedures for the valuation of commercial loans held for sale using appraised value which may include a comparison to recently executed transactions of similar type loans. A monthly review of the portfolio is performed for reasonableness. Quarterly, appraisals approaching one year old are updated and the Real Estate Valuation group, which reports to the Bancorp's Chief Risk Officer, in conjunction with the Commercial Line of Business review the third-party appraisals for reasonableness. Additionally, the Commercial Line of Business Finance department, which reports to the Bancorp's Chief Financial Officer, in conjunction with the Accounting department reviews all loan appraisal values, carry values and vintages. The Treasury department, which reports to the Bancorp's Chief Financial Officer, is responsible for the estimate of fair value adjustments when a discounted future cash flow valuation technique is employed.

Commercial loans held for investment

During the three months ended March 31, 2016 and 2015, the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial loans, commercial mortgageloans and commercial construction loans held for investment. Larger commercial loans included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp considers the current value of collateral, credit qualityof any guarantees, the guarantor's liquidity and willingness tocooperate, the loan structure and other factors when evaluatingwhether an individual loan is impaired. When the loan is collateraldependent, the fair value of the loan is generally based on the fairvalue of the underlying collateral supporting the loan and thereforethese loans were classified within Level 3 of the valuation hierarchy.In cases where the carrying value exceeds the fair value, animpairment loss is recognized. The fair values and recognizedimpairment losses are reflected in the previous tables. CommercialCredit Risk, which reports to the Bancorp's Chief Risk Officer, is responsible for preparing and reviewing the fair value estimates forcommercial loans held for investment.

Residential mortgage loans

During the three months ended March 31, 2015, the Bancorp transferred approximately $55 million of restructured residential mortgage loans from held for sale to portfolio as the Bancorp no longer had the intent to sell the loans. Upon transfer, the Bancorp recognized a nonrecurring fair value adjustment of $1 million on these loans, which had previously been transferred to held for sale in the fourth quarter of 2014.

MSRs

Mortgage interest rates decreased during both the three months ended March 31, 2016 and 2015 and the Bancorp recognized temporary impairment in certain classes of the MSR portfolio and the carrying value was adjusted to the fair value. MSRs do not trade in an active,open market with readily observable prices. While sales of MSRs dooccur, the precise terms and conditions typically are not readilyavailable. Accordingly, the Bancorp estimates the fair value of MSRsusing internal OAS models with certain unobservable inputs,primarily prepayment speed assumptions, OAS and weighted-averagelives, resulting in a classification within Level 3 of thevaluation hierarchy. Refer to Note 10 for further information on theassumptions used in the valuation of the Bancorp's MSRs. TheSecondary Marketing department and Treasury department areresponsible for determining the valuation methodology for MSRs.Representatives from Secondary Marketing, Treasury, Accountingand Risk Management are responsible for reviewing keyassumptions used in the internal OAS model. Two externalvaluations of the MSR portfolio are obtained from third parties thatuse valuation models in order to assess the reasonableness of theinternal OAS model. Additionally, the Bancorp participates in peersurveys that provide additional confirmation of the reasonablenessof key assumptions utilized in the MSR valuation process and theresulting MSR prices.

OREO

During the three months ended March 31, 2016 and 2015, the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO and measured at the lower of carrying amount or fair value. These nonrecurring losses were primarily due to declines in real estate values of the properties recorded in OREO. For the three months ended March 31, 2016 and 2015, these losses include $2 million and $5 million, respectively, recorded as charge-offs, on new OREO properties transferred from loans during the respective periods and $1 million and $3 million, respectively,recorded as negative fair value adjustments on OREO in other noninterest expensein the Bancorp's Condensed Consolidated Statements of Incomesubsequent to their transfer from loans. As discussed in the following paragraphs, the fair value amounts are generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. The previous tables reflect the fair value measurements of the properties before deducting the estimated costs to sell.

The Real Estate Valuation department, which reports to the Bancorp's Chief Risk Officer,is solely responsible for managing the appraisal process and evaluating the appraisal for all commercial properties transferred to OREO. All appraisals on commercial OREO properties are updated on at least an annual basis.

The Real Estate Valuation departmentreviews the BPO data and internal market information to determine the initial charge-off on residential real estate loans transferred to OREO. Once the foreclosure process is completed, the Bancorp performs an interior inspection to update the initial fair value of the property. These properties are reviewed at least every 30 days after the initial interior inspections are completed. The Asset Manager receives a monthly status report for each property, which includes the number of showings, recently sold properties, current comparable listings and overall market conditions.

Bank premises and equipment

The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. These properties were written down to their lower of cost or market values. At least annually thereafter, the Bancorp will review these properties for market fluctuations. The fair value amounts were generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. Corporate Facilities, which reports to the Bancorp's Chief Administrative Officer, in conjunction with Accounting, is responsible for preparing and reviewing the fair value estimates for bank premises and equipment. For further information on bank premises and equipment and discussion on changes to the branch network, refer to Note 7.

Operating lease equipment

During the three months ended March 31, 2015, the Bancorp recorded nonrecurring impairment adjustments to certain operating lease equipment. When evaluating whether an individual asset is impaired, the Bancorp considers the current fair value of the asset, the changes in overall market demand for the asset and the rate of change in advancements associated with technological improvements that impact the demand for the specific asset under review. As part of this ongoing assessment, the Bancorp determined that the carrying values of certain operating lease equipmentwere not recoverable and as a result, the Bancorp recorded an impairment loss equal to the amount by which the carrying value of the assets exceeded the fair value. The fair value amounts were generally based on appraised values of the assets, resulting in a classification within Level 3 of the valuation hierarchy. The Commercial Leasing department, which reports to the Bancorp's Chief Operating Officer, is responsible for preparing and reviewing the fair value estimates for operating lease equipment.

Fair Value Option

The Bancorp elected to measure certain residential mortgage loans held for sale under the fair value option as allowed under U.S. GAAP. Electing to measure residential mortgage loans held for sale at fair value reduces certain timing differences and better matches changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets. Management's intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and maintained in the Bancorp's loan portfolio. In such cases, the loans will continue to be measured at fair value.

Fair value changes recognized in earnings for instruments held at March 31, 2016 and2015for which the fair value option was elected,as well as the changes in fair value of the underlying IRLCs, included gains of $30 million for both periods. These gainsare reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income.

Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by $2 million at bothMarch 31, 2016 andDecember 31, 2015. Interest on residential mortgage loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income.

The following table summarizes the difference between the fair value and the principal balance for residential mortgage loans measured at fair value as of:
		Aggregate	Aggregate Unpaid
($ in millions)		Fair Value	Principal Balance	Difference
March 31, 2016
Residential mortgage loans measured at fair value	$	760	730	30
Past due loans of 90 days or more		1	1	-
Nonaccrual loans		1	1	-
December 31, 2015
Residential mortgage loans measured at fair value	$	686	669	17
Past due loans of 90 days or more		2	2	-
Nonaccrual loans		2	2	-

Fair Value of Certain Financial Instruments
The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis:
		Net Carrying	Fair Value Measurements Using			Total
As of March 31, 2016 ($ in millions)		Amount	Level 1	Level 2	Level 3	Fair Value
Financial assets:
Cash and due from banks	$	2,298	2,298	-	-	2,298
Other securities		604	-	604	-	604
Held-to-maturity securities		64	-	-	64	64
Other short-term investments		1,778	1,778	-	-	1,778
Loans held for sale		203	-	-	203	203
Portfolio loans and leases:
Commercial and industrial loans		42,736	-	-	43,168	43,168
Commercial mortgage loans		6,758	-	-	6,624	6,624
Commercial construction loans		3,404	-	-	3,169	3,169
Commercial leases		3,916	-	-	3,675	3,675
Residential mortgage loans		13,637	-	-	14,588	14,588
Home equity		8,050	-	-	8,855	8,855
Automobile loans		11,087	-	-	10,834	10,834
Credit card		2,039	-	-	2,432	2,432
Other consumer loans and leases		639	-	-	616	616
Unallocated ALLL		(116)	-	-	-	-
Total portfolio loans and leases, net	$	92,150	-	-	93,961	93,961
Financial liabilities:
Deposits	$	102,475	-	102,544	-	102,544
Federal funds purchased		134	134	-	-	134
Other short-term borrowings		3,523	-	3,523	-	3,523
Long-term debt		15,305	15,202	702	-	15,904

		Net Carrying	Fair Value Measurements Using			Total
As of December 31, 2015 ($ in millions)		Amount	Level 1	Level 2	Level 3	Fair Value
Financial assets:
Cash and due from banks	$	2,540	2,540	-	-	2,540
Other securities		604	-	604	-	604
Held-to-maturity securities		70	-	-	70	70
Other short-term investments		2,671	2,671	-	-	2,671
Loans held for sale		384	-	-	384	384
Portfolio loans and leases:
Commercial and industrial loans		41,479	-	-	41,802	41,802
Commercial mortgage loans		6,840	-	-	6,656	6,656
Commercial construction loans		3,190	-	-	2,918	2,918
Commercial leases		3,807	-	-	3,533	3,533
Residential mortgage loans		13,449	-	-	14,061	14,061
Home equity		8,234	-	-	8,948	8,948
Automobile loans		11,453	-	-	11,170	11,170
Credit card		2,160	-	-	2,551	2,551
Other consumer loans and leases		646	-	-	643	643
Unallocated ALLL		(115)	-	-	-	-
Total portfolio loans and leases, net	$	91,143	-	-	92,282	92,282
Financial liabilities:
Deposits	$	103,205	-	103,219	-	103,219
Federal funds purchased		151	151	-	-	151
Other short-term borrowings		1,507	-	1,507	-	1,507
Long-term debt		15,810	15,603	625	-	16,228

Cash and due from banks, other securities, other short-term investments, deposits, federal funds purchased and other short-term borrowings

For financial instruments with a short-term or no stated maturity, prevailing market rates and limited credit risk, carrying amounts approximate fair value. Those financial instruments include cash and due from banks, FHLB and FRB restricted stock, other short-term investments, certain deposits (demand, interest checking, savings, money market and foreign office deposits), federal funds purchased, and other short-term borrowings excluding FHLB borrowings. Fair values for other time deposits, certificatesof deposit $100,000 and over and FHLB borrowings were estimated using a DCF calculation that applies prevailing LIBOR/swap interest rates and a spread for new issuances with similar terms.

Held-to-maturity securities

The Bancorp's held-to-maturity securities are primarily composed of instruments that provide income tax credits as the economic return on the investment. The fair value of these instruments is estimated based on current U.S. Treasury tax credit rates.

Loans held for sale

Fair values for commercial loans held for sale were valued based on executable bids when available, or on DCF models incorporating appraisals of the underlying collateral, as well as assumptions about investor return requirements and amounts and timing of expected cash flows. Fair values for residential mortgage loans held for sale were valued based on estimated third-party valuations utilizing recent sales data from similar transactions. Broker opinion statements were also obtained as additional evidence to support the third-party valuations. Fair values for other consumer loans held for sale were based on contractual values upon which the loans may be sold to a third party, and approximate their carrying value.

Portfolio loans and leases, net

Fair values were estimated based on either appraisals of theunderlying collateral or by discounting future cash flows usingthecurrent market rates of loans to borrowers with similar creditcharacteristics, similar remaining maturities, prepaymentspeeds andloss severities.The Bancorp estimates fair values at the transaction level whenever possible. For certain products with a large number of homogenous transactions,the Bancorp employs a pool approach. This approach involves stratifying and sorting the entire population of transactions into a smaller number of pools with like characteristics. Characteristics may include maturity date, coupon, origination date and principal amortization method.

Long-term debt

Fair value of long-term debt was based on quoted market prices, when available, or a DCF calculation using LIBOR/swap interest rates and, in some cases, Fifth Third credit and/or debt instrument spreads for new issuances with similar terms.

XML

Business Segments

3 Months Ended

Mar. 31, 2016

Segment Reporting

Business Segments

21.Business Segments

The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Investment Advisors. Results of the Bancorp's business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp's business segments are not necessarily comparable with similar information for other financial institutions. The Bancorp refines its methodologies from time to time as management's accounting practices and businesses change.

The Bancorp manages interest rate risk centrally at the corporate level by employing an FTP methodology. This methodology insulates the business segments from interest rate volatility, enabling them to focus on serving customers through loan originations and deposit taking. The FTP system assigns charge rates and credit rates to classes of assets and liabilities, respectively, based on expected duration and the U.S. swap curve. Matching duration allocates interest income and interest expense to each business segment so its resulting net interest income is insulated from interest rate risk. In a rising rate environment, the Bancorp benefits from the widening spread between deposit costs and wholesale funding costs. However, the Bancorp's FTP system credits this benefit to deposit-providing businesses, such as Branch Banking and Investment Advisors, on a duration-adjusted basis. The net impact of the FTP methodology is captured in General Corporate and Other.

The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of the estimated durations for the indeterminate-lived deposits. The credit rate provided for demand deposit accounts is reviewed annually based upon the account type, its estimated duration and the corresponding fed funds, U.S. swap curve or swap rate. The credit rates for several deposit products were reset January 1, 2016 to reflect the current market rates and updated market assumptions. These rates were generally higher than those in place during 2015, thus net interest income for deposit-providing businesses waspositivelyimpacted during 2016. FTP charge rates on assets were affected by the prevailing level of interest rates and by the duration and repricing characteristics of the portfolio. As overall market rates increased, the FTP charge increased for asset-generating businesses, thus negatively affecting net interest income during 2016.

During the first quarter of 2016, the Bancorp refined its methodology for allocating provision expense to the business segments to include charges or benefits associated with changes in criticized commercial loan levels in addition to actual net charge-offs experienced by the loans and leases owned by each business segment. The results of operations and financial position for the three months ended March 31, 2015 wereadjusted to reflect this change.Provision expense attributable to loan and lease growth and changes in ALLL factors are captured in General Corporate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Additionally, the business segments form synergies by taking advantage of cross-sell opportunities and when funding operations by accessing the capital markets as a collective unit.

The results of operations and financial position for the threemonths ended March 31, 2015 were adjusted to reflect changes in internal expense allocation methodologies.

The following is a description of each of the Bancorp's business segments and the products and services they provide to their respective client bases.

Commercial Banking offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. In addition to the traditional lending and depository offerings, Commercial Banking products and services include global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance.

Branch Banking provides a full range of deposit and loan and lease products to individuals and small businesses through 1,241 full-service banking centers. Branch Banking offers depository and loan products, such as checking and savings accounts, home equity loans and lines of credit, credit cards and loans for automobiles and other personal financing needs, as well as products designed to meet the specific needs of small businesses, including cash management services.

Consumer Lending includes the Bancorp's residential mortgage, home equity, automobile and other indirect lending activities. Direct lending activities include the origination, retention and servicing of residential mortgage and home equity loans or lines of credit, sales and securitizations of those loans, pools of loans or lines of creditand all associated hedging activities. Indirect lending activities include extending loans to consumers through correspondent lenders and automobile dealers.

Investment Advisors provides a full range of investment alternatives for individuals, companies and not-for-profit organizations. Investment Advisors is made up of four main businesses: FTS, an indirect wholly-owned subsidiary of the Bancorp; ClearArc Capital, Inc., an indirect wholly-owned subsidiary of the Bancorp; Fifth Third Private Bank; and Fifth Third Institutional Services. FTS offers full service retail brokerage services to individual clients and broker dealer services to the institutional marketplace. ClearArc Capital, Inc. provides asset management services. Fifth Third Private Bank offers holistic strategies to affluent clients in wealth planning, investing, insurance and wealth protection. Fifth Third Institutional Services provides advisory services for institutional clients including states and municipalities.

The following tables present the results of operations and assets by business segment for the three months ended:
						General
		Commercial	Branch	Consumer	Investment	Corporate
March 31, 2016 ($ in millions)		Banking	Banking	Lending	Advisors	and Other	Eliminations	Total
Net interest income	$	451	426	60	43	(77)	-	903
Provision for loan and lease losses		65	34	12	-	8	-	119
Net interest income after provision for loan and lease losses		386	392	48	43	(85)	-	784
Total noninterest income		223	189(b)	83	100	75	(33)(a)	637
Total noninterest expense		363	411	118	107	20	(33)	986
Income (loss) before income taxes		246	170	13	36	(30)	-	435
Applicable income tax expense		35	60	5	13	(5)	-	108
Net income (loss)		211	110	8	23	(25)	-	327
Less: Net income attributable to noncontrolling interests		-	-	-	-	-	-	-
Net income (loss) attributable to Bancorp		211	110	8	23	(25)	-	327
Dividends on preferred stock		-	-	-	-	15	-	15
Net income (loss) available to common shareholders	$	211	110	8	23	(40)	-	312
Total goodwill	$	613	1,655	-	148	-	-	2,416
Total assets	$	59,652	54,528	22,475	8,900	(3,125)	-	142,430

• Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income.
• Includes an impairment chargeof $2for branches and land. For more information refer to Note7 andNote 20.

						General
		Commercial	Branch	Consumer	Investment	Corporate
March 31, 2015 ($ in millions)		Banking	Banking	Lending	Advisors	and Other	Eliminations	Total
Net interest income	$	392	377	63	29	(14)	-	847
Provision for loan and lease losses		42	42	14	1	(30)	-	69
Net interest income after provision for loan and lease losses		350	335	49	28	16	-	778
Total noninterest income		174(c)	176(b)	129	107	82	(38)(a)	630
Total noninterest expense		348	400	105	115	(7)	(38)	923
Income before income taxes		176	111	73	20	105	-	485
Applicable income tax expense		13	39	26	7	39	-	124
Net income		163	72	47	13	66	-	361
Less: Net income attributable to noncontrolling interests		-	-	-	-	-	-	-
Net income attributable to Bancorp		163	72	47	13	66	-	361
Dividends on preferred stock		-	-	-	-	15	-	15
Net income available to common shareholders	$	163	72	47	13	51	-	346
Total goodwill	$	613	1,655	-	148	-	-	2,416
Total assets	$	57,855	53,295	22,057	10,042	(2,812)	-	140,437

• Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income.
• Includes an impairment charge of $4 for branches and land. For more information, refer to Note 7 and Note 20.
• Includes an impairment charge of $30 for operating lease equipment. For more information, refer to Note 20.

XML

Subsequent Event

3 Months Ended

Mar. 31, 2016

Subsequent Events

Subsequent Event

22. Subsequent Event

On April 22, 2016, the Bancorp closed the previously announcedsale of its retail operations, including retail accounts,certain privatebanking deposits and related loan relationships in Pittsburgh to First National Bank of Pennsylvania. The saleincluded loans, premises and equipment and deposits with aggregate carrying amounts of approximately $99 million, $16 million and $302 million,respectively. The Bancorp recorded a gain on the sale ofapproximately $11 million that will berecognized in the Bancorp's second quarter 2016 Quarterly Report on Form 10-Q.

XML

Supplemental Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2016

Supplemental Cash Flow

Noncash Investing and Financing Activities

Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the three months ended March 31:
($ in millions)		2016	2015
Cash Payments:
Interest	$	191	166
Income taxes		334	13
Transfers:
Portfolio loans to loans held for sale		3	9
Loans held for sale to portfolio loans		12	78
Portfolio loans to OREO		12	33

XML

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2016

Securities

Available-for-Sale and Other and Held-to-Maturity Securities

The following tables provide the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and other and held-to-maturity investment securities portfolios as of:
				Amortized	Unrealized	Unrealized	Fair
March 31, 2016 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale and other securities:
	U.S. Treasury and federal agencies securities		$	1,131	30	-	1,161
	Obligations of states and political subdivisions securities			50	2	-	52
	Mortgage-backed securities:
		Agency residential mortgage-backed securities(a)		14,586	545	(2)	15,129
		Agency commercial mortgage-backed securities		7,837	368	-	8,205
		Non-agency commercial mortgage-backed securities		3,005	115	-	3,120
	Asset-backed securities and other debt securities			1,526	13	(19)	1,520
	Equity securities(b)			703	2	(1)	704
Total available-for-sale and other securities			$	28,838	1,075	(22)	29,891
Held-to-maturity securities:
	Obligations of states and political subdivisions securities		$	62	-	-	62
	Asset-backed securities and other debt securities			2	-	-	2
Total held-to-maturity securities			$	64	-	-	64

• Includes interest-only mortgage-backed securities of $41as of March 31, 2016 recorded at fair value with fair value changes recorded in securities gains, net,in the Condensed Consolidated Statements of Income.
• Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355 and $1, respectively,at March 31, 2016,that are carried at cost, and certain mutual fund and equity security holdings.

				Amortized	Unrealized	Unrealized	Fair
December 31, 2015 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale and other securities:
	U.S. Treasury and federal agencies securities		$	1,155	32	-	1,187
	Obligations of states and political subdivisions securities			50	2	-	52
	Mortgage-backed securities:
		Agency residential mortgage-backed securities(a)		14,811	283	(13)	15,081
		Agency commercial mortgage-backed securities		7,795	100	(33)	7,862
		Non-agency commercial mortgage-backed securities		2,801	35	(32)	2,804
	Asset-backed securities and other debt securities			1,363	13	(21)	1,355
	Equity securities(b)			703	2	(2)	703
Total available-for-sale and other securities			$	28,678	467	(101)	29,044
Held-to-maturity securities:
	Obligations of states and political subdivisions securities		$	68	-	-	68
	Asset-backed securities and other debt securities			2	-	-	2
Total held-to-maturity securities			$	70	-	-	70

• Includes interest-only mortgage-backed securities of $50as of December 31, 2015, recorded at fair value with fair value changes recorded in securities gains, net,in the Condensed Consolidated Statements of Income.
• Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of$248, $355, and $1, respectively, at December 31, 2015, that are carried at cost, and certain mutual fund and equity security holdings.

Realized Gains and Losses Recognized in Income from Securities

The following table presents realized gains and losses that were recognized in income from available-for-sale securities:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Realized gains	$	15	15
Realized losses		(4)	(2)
OTTI		(3)	(1)
Net realized gains(a)	$	8	12

• Excludes net losses on interest-only mortgage-backed securities of $6 and $9for the three months ended March 31, 2016 and March 31, 2015, respectively.

Trading securities were $405 million as of March 31, 2016, compared to $386 million at December 31, 2015. The following table presents total gains and losses that were recognized in income from trading securities:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Realized gains(a)	$	2	1
Realized losses(b)		(4)	(3)
Net unrealized gains(c)		1	1
Total trading securities losses	$	(1)	(1)

• Includes realized gains of $2and $1duringthe three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.
• Includes realized losses of $4and $3during the three months ended March 31, 2016 and 2015, respectively,recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.
• Includes an immaterial amount of net unrealized gains and losses during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

Amortized Cost and Fair Value of Available-for-Sale and Other and Held-to-Maturity Securities

The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity investment securities as of March 31, 2016 are shown in the following table:
			Available-for-Sale and Other		Held-to-Maturity
($ in millions)			Amortized Cost	Fair Value	Amortized Cost	Fair Value
Debt securities:(a)
	Less than 1 year	$	835	857	37	37
	1-5 years		9,003	9,329	12	12
	5-10 years		16,480	17,146	13	13
	Over 10 years		1,817	1,855	2	2
Equity securities			703	704	-	-
Total		$	28,838	29,891	64	64

• Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties.

Fair Value and Gross Unrealized Loss of Securities Available for Sale

The following table provides the fair value and gross unrealized losses on available-for-sale and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of:
		Less than 12 months		12 months or more		Total
			Unrealized		Unrealized		Unrealized
($ in millions)		Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
March 31, 2016
Agency residential mortgage-backed securities	$	268	(2)	-	-	268	(2)
Asset-backed securities and other debt securities		499	(8)	266	(11)	765	(19)
Equity securities		-	-	31	(1)	31	(1)
Total	$	767	(10)	297	(12)	1,064	(22)
December 31, 2015
Agency residential mortgage-backed securities	$	2,903	(13)	-	-	2,903	(13)
Agency commercial mortgage-backed securities		3,111	(33)	-	-	3,111	(33)
Non-agency commercial mortgage-backed securities		1,610	(32)	-	-	1,610	(32)
Asset-backed securities and other debt securities		623	(11)	226	(10)	849	(21)
Equity securities		1	(1)	37	(1)	38	(2)
Total	$	8,248	(90)	263	(11)	8,511	(101)

XML

Loans and Leases (Tables)

3 Months Ended

Mar. 31, 2016

Loans and Leases Receivable

Loans and Leases Classified by Primary Purpose

The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans and leases classified based upon product or collateral as of:
			March 31,	December 31,
($ in millions)			2016	2015
Loans held for sale:
	Commercial and industrial loans	$	8	20
	Commercial mortgage loans		10	34
	Residential mortgage loans		668	708
	Home equity		19	35
	Automobile loans		1	4
	Credit card		97	101
	Other consumer loans and leases		-	1
Total loans held for sale		$	803	903
Portfolio loans and leases:
	Commercial and industrial loans	$	43,433	42,131
	Commercial mortgage loans		6,864	6,957
	Commercial construction loans		3,428	3,214
	Commercial leases		3,956	3,854
Total commercial loans and leases		$	57,681	56,156
	Residential mortgage loans		13,895	13,716
	Home equity		8,112	8,301
	Automobile loans		11,128	11,493
	Credit card		2,138	2,259
	Other consumer loans and leases		651	657
Total consumer loans and leases		$	35,924	36,426
Total portfolio loans and leases		$	93,605	92,582

Total Loans And Leases Owned By The Bancorp

The following table presents a summary of the total loans and leases owned by the Bancorp as of:
		March 31,	December 31,		March 31,	December 31,
		2016	2015		2016	2015
					90 Days Past Due
($ in millions)		Carrying Value			and Still Accruing
Commercial and industrial loans	$	43,441	42,151		3	7
Commercial mortgage loans		6,874	6,991		-	-
Commercial construction loans		3,428	3,214		-	-
Commercial leases		3,956	3,854		-	-
Residential mortgage loans		14,563	14,424		44	40
Home equity		8,131	8,336		-	-
Automobile loans		11,129	11,497		8	10
Credit card		2,235	2,360		18	18
Other consumer loans and leases		651	658		-	-
Total loans and leases	$	94,408	93,485		73	75
Less: Loans held for sale		803	903
Total portfolio loans and leases	$	93,605	92,582
The following table presents a summary of net charge-offs for the three months ended March 31:
($ in millions)					2016	2015
Commercial and industrial loans				$	46	38
Commercial mortgage loans					6	1
Commercial leases					2	-
Residential mortgage loans					2	6
Home equity					8	14
Automobile loans					9	8
Credit card					20	21
Other consumer loans and leases					3	3
Total net charge-offs				$	96	91

XML

Credit Quality and the Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2016

Credit Quality and the Allowance for Loan and Leases Losses

Summary of Transactions in the ALLL

Allowance for Loan and Lease Losses
The following tables summarize transactions in the ALLL by portfolio segment:
				Residential
For the three months ended March 31, 2016 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	840	100	217	115	1,272
	Losses charged-off		(60)	(4)	(52)	-	(116)
	Recoveries of losses previously charged-off		6	2	12	-	20
	Provision for loan and lease losses		81	-	37	1	119
Balance, end of period		$	867	98	214	116	1,295
				Residential
For the three months ended March 31, 2015 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	875	104	237	106	1,322
	Losses charged-off		(48)	(9)	(58)	-	(115)
	Recoveries of losses previously charged-off		9	3	12	-	24
	Provision for loan and lease losses		16	5	50	(2)	69
Balance, end of period		$	852	103	241	104	1,300

Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment

The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment:
					Residential
As of March 31, 2016 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:(a)
	Individually evaluated for impairment	$	102	(c)	66	48	-	216
	Collectively evaluated for impairment		765		32	166	-	963
	Unallocated		-		-	-	116	116
Total ALLL		$	867		98	214	116	1,295
Portfolio loans and leases:(b)
	Individually evaluated for impairment	$	1,022	(c)	655	415	-	2,092
	Collectively evaluated for impairment		56,659		13,078	21,614	-	91,351
	Loans acquired with deteriorated credit quality		-		2	-	-	2
Total portfolio loans and leases		$	57,681		13,735	22,029	-	93,445

• Includes $5 related to leveraged leases at March 31, 2016.
• Excludes $160of residential mortgage loans measured at fair value, and includes $812of leveraged leases, net of unearned income atMarch 31, 2016.
• Includes five restructured loans at March 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $27 and an ALLL of $15.

					Residential
As of December 31, 2015 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:(a)
	Individually evaluated for impairment	$	119	(c)	67	49	-	235
	Collectively evaluated for impairment		721		33	168	-	922
	Unallocated		-		-	-	115	115
Total ALLL		$	840		100	217	115	1,272
Portfolio loans and leases:(b)
	Individually evaluated for impairment	$	815	(c)	630	424	-	1,869
	Collectively evaluated for impairment		55,341		12,917	22,286	-	90,544
	Loans acquired with deteriorated credit quality		-		2	-	-	2
Total portfolio loans and leases		$	56,156		13,549	22,710	-	92,415

• Includes $5 related to leveraged leases at December 31, 2015.
• Excludes $167 of residential mortgage loans measured at fair value, and includes $801 of leveraged leases, net of unearned income at December 31, 2015.
• Includes five restructured loans at December 31, 2015associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $27 and an ALLL of $15.

Loan and leases balances by credit quality indicator

The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class:
			Special
As of March 31, 2016 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	39,909	1,513	1,987	24	43,433
Commercial mortgage owner-occupied loans		3,305	128	177	3	3,613
Commercial mortgage nonowner-occupied loans		3,063	65	123	-	3,251
Commercial construction loans		3,423	1	4	-	3,428
Commercial leases		3,848	74	34	-	3,956
Total commercial loans and leases	$	53,548	1,781	2,325	27	57,681

			Special
As of December 31, 2015 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	38,756	1,633	1,742	-	42,131
Commercial mortgage owner-occupied loans		3,344	124	191	-	3,659
Commercial mortgage nonowner-occupied loans		3,105	63	130	-	3,298
Commercial construction loans		3,201	4	9	-	3,214
Commercial leases		3,724	93	37	-	3,854
Total commercial loans and leases	$	52,130	1,917	2,109	-	56,156

The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of:
		March 31, 2016		December 31, 2015
($ in millions)		Performing	Nonperforming	Performing	Nonperforming
Residential mortgage loans(a)	$	13,691	44	13,498	51
Home equity		8,032	80	8,222	79
Automobile loans		11,126	2	11,491	2
Credit card		2,106	32	2,226	33
Other consumer loans and leases		651	-	657	-
Total residential mortgage and consumer loans and leases(a)	$	35,606	158	36,094	165

• Excludes$160and $167of loans measured at fair value at March 31, 2016and December 31,2015, respectively.

Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases

Age Analysis of Past Due Loans and Leases
The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class:
			Current	Past Due				90 Days Past
			Loans and	30-89	90 Days	Total	Total Loans	Due and Still
As of March 31, 2016 ($ in millions)			Leases(c)	Days(c)	or More(c)	Past Due	and Leases	Accruing
Commercial loans and leases:
	Commercial and industrial loans	$	43,255	31	147	178	43,433	3
	Commercial mortgage owner-occupied loans		3,580	6	27	33	3,613	-
	Commercial mortgage nonowner-occupied loans		3,210	17	24	41	3,251	-
	Commercial construction loans		3,428	-	-	-	3,428	-
	Commercial leases		3,952	-	4	4	3,956	-
Residential mortgage loans(a)(b)			13,613	32	90	122	13,735	44
Consumer loans and leases:
	Home equity		7,980	72	60	132	8,112	-
	Automobile loans		11,060	58	10	68	11,128	8
	Credit card		2,089	25	24	49	2,138	18
	Other consumer loans and leases		650	1	-	1	651	-
Total portfolio loans and leases(a)		$	92,817	242	386	628	93,445	73

• Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.
• Information includes advances made pursuant to servicing agreements for GNMA mortgage poolswhose repayments are insured by the FHA or guaranteed by the VA. As of March 31, 2016, $95of these loans were 30-89 days past due and $315 were 90days or more past due. The Bancorp recognized $2of lossesduring the three months ended March 31, 2016due to claim denials and curtailments associated with these insured or guaranteedloans.
• Includes accrual and nonaccrual loans and leases.

			Current	Past Due				90 Days Past
			Loans and	30-89	90 Days	Total	Total Loans	Due and Still
As of December 31, 2015 ($ in millions)			Leases(c)	Days(c)	Greater(c)	Past Due	and Leases	Accruing
Commercial loans and leases:
	Commercial and industrial loans	$	41,996	55	80	135	42,131	7
	Commercial mortgage owner-occupied loans		3,610	15	34	49	3,659	-
	Commercial mortgage nonowner-occupied loans		3,262	9	27	36	3,298	-
	Commercial construction loans		3,214	-	-	-	3,214	-
	Commercial leases		3,850	3	1	4	3,854	-
Residential mortgage loans(a)(b)			13,420	37	92	129	13,549	40
Consumer loans and leases:
	Home equity		8,158	82	61	143	8,301	-
	Automobile loans		11,407	75	11	86	11,493	10
	Credit card		2,207	29	23	52	2,259	18
	Other consumer loans and leases		656	1	-	1	657	-
Total portfolio loans and leases(a)		$	91,780	306	329	635	92,415	75

• Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.
• Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2015,$102of these loans were 30-89 days past due and $335 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2015due to claim denials and curtailments associated with these insured or guaranteed loans.
• Includes accrual and nonaccrual loans and leases.

Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class

The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR:
			Unpaid
			Principal	Recorded
As of March 31, 2016 ($ in millions)			Balance	Investment		ALLL
With a related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	516	441		81
	Commercial mortgage owner-occupied loans(b)		26	16		3
	Commercial mortgage nonowner-occupied loans		57	53		2
	Commercial leases		4	2		1
Restructured residential mortgage loans			453	440		66
Restructured consumer loans and leases:
	Home equity		220	220		32
	Automobile loans		16	17		2
	Credit card		58	58		14
Total impaired portfolio loans and leases with a related ALLL		$	1,350	1,247		201
With no related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	372	320		-
	Commercial mortgage owner-occupied loans		58	55		-
	Commercial mortgage nonowner-occupied loans		115	101		-
	Commercial construction loans		4	4		-
	Commercial leases		3	3		-
Restructured residential mortgage loans			230	215		-
Restructured consumer loans and leases:
	Home equity		120	117		-
	Automobile loans		3	3		-
Total impaired portfolio loans and leases with no related ALLL		$	905	818		-
Total impaired portfolio loans and leases		$	2,255	2,065	a(a)	201

• Includes $461,$636and $362, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $210, $19 and $53, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2016.
• Excludes five restructured loans at March 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

			Unpaid
			Principal	Recorded
As of December 31, 2015 ($ in millions)			Balance	Investment		ALLL
With a related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	412	346		84
	Commercial mortgage owner-occupied loans(b)		28	21		5
	Commercial mortgage nonowner-occupied loans		75	64		12
	Commercial construction loans		4	4		2
	Commercial leases		3	3		1
Restructured residential mortgage loans			450	444		67
Restructured consumer loans and leases:
	Home equity		226	225		32
	Automobile loans		17	16		2
	Credit card		61	61		15
Total impaired portfolio loans and leases with a related ALLL		$	1,276	1,184		220
With no related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	228	182		-
	Commercial mortgage owner-occupied loans		54	51		-
	Commercial mortgage nonowner-occupied loans		126	111		-
	Commercial construction loans		9	5		-
	Commercial leases		1	1		-
Restructured residential mortgage loans			210	186		-
Restructured consumer loans and leases:
	Home equity		122	119		-
	Automobile loans		3	3		-
Total impaired portfolio loans and leases with no related ALLL		$	753	658		-
Total impaired portfolio loans and leases		$	2,029	1,842	a(a)	220

• Includes $491, $607and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and$203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015.
• Excludes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the three months ended:
			March 31, 2016		March 31, 2015
			Average	Interest	Average	Interest
			Recorded	Income	Recorded	Income
($ in millions)			Investment	Recognized	Investment	Recognized
Commercial loans and leases:
	Commercial and industrial loans	$	645	2	742	5
	Commercial mortgage owner-occupied loans(a)		71	-	112	1
	Commercial mortgage nonowner-occupied loans		165	1	262	2
	Commercial construction loans		7	-	62	-
	Commercial leases		5	-	5	-
Restructured residential mortgage loans			642	6	552	6
Restructured consumer loans and leases:
	Home equity		340	3	375	3
	Automobile loans		19	-	23	-
	Credit card		60	1	75	2
Total average impaired portfolio loans and leases		$	1,954	13	2,208	19

• Excludes five restructuredloansassociated with a consolidated VIEin which the Bancorp has no continuing credit risk due to the risk being assumed by a third party,with an average recorded investment of$27and$28 at March 31, 2016 and March 31, 2015, respectively, and an immaterial amount of interest income recognized for both the three months endedMarch 31, 2016 and March 31, 2015.

Summary of the Bancorp's Nonperforming Loans and Leases by Class

Nonperforming Assets
Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of:
			March 31,	December 31,
($ in millions)			2016	2015
Commercial loans and leases:
	Commercial and industrial loans	$	460	259
	Commercial mortgage owner-occupied loans(a)		41	46
	Commercial mortgage nonowner-occupied loans		37	35
	Commercial leases		5	1
Total nonaccrual portfolio commercial loans and leases			543	341
Residential mortgage loans			44	51
Consumer loans and leases:
	Home equity		80	79
	Automobile loans		2	2
	Credit card		32	33
Total nonaccrual portfolio consumer loans and leases			114	114
Total nonaccrual portfolio loans and leases(b)(c)		$	701	506
OREO and other repossessed property			124	141	a
Total nonperforming portfolio assets(b)(c)		$	825	647

• Excludes $20of restructured nonaccrual loans atboth March 31, 2016and December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party.
• Excludes$5and $12of nonaccrual loans held for sale at March 31, 2016 andDecember 31, 2015, respectively.
• Includes $5and $6of nonaccrual government insured commercial loans whose repayments are insured by the SBA atMarch 31, 2016 and December 31, 2015, respectively,and $1and $2of restructured nonaccrual government insured commercial loans atMarch 31, 2016and December 31, 2015, respectively.

Summary of Loans Modified in a TDR

The following tables provide a summary of loans, by class, modified in a TDR by the Bancorp during the three months ended:
			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
March 31, 2016 ($ in millions)(a)		during the period(b)	during the period		modification	modification
Commercial loans:
	Commercial and industrial loans	24	$	56	(2)	-
	Commercial mortgage owner-occupied loans	7		6	(2)	-
	Commercial mortgage nonowner-occupied loans	2		-	-	-
Residential mortgage loans		243		36	2	-
Consumer loans:
	Home equity	64		5	-	-
	Automobile loans	78		1	-	-
	Credit card	2,592		12	2	1
Total portfolio loans		3,010	$	116	-	1

• Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
• Represents number of loans post-modification and excludes loans previously modified in a TDR.

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
March 31, 2015 ($ in millions)(a)		during the period(b)	during the period		modification	modification
Commercial loans:
	Commercial and industrial loans	21	$	18	(7)	3
	Commercial mortgage owner-occupied loans	7		8	(1)	-
	Commercial mortgage nonowner-occupied loans	6		3	-	-
Residential mortgage loans		300		42	1	-
Consumer loans:
	Home equity	76		4	-	-
	Automobile loans	131		2	-	-
	Credit card	3,667		19	4	-
Total portfolio loans		4,208	$	96	(3)	3

• Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
• Represents number of loans post-modification and excludes loans previously modified in a TDR.

Summary of Subsequent Defaults

The following tables provide a summary of TDRs that subsequently defaulted during the three months ended March 31, 2016 and 2015 that was within twelve months of the restructuring date:
		Number of		Recorded
March 31, 2016 ($ in millions)(a)		Contracts		Investment
Commercial loans and leases:
	Commercial and industrial loans	1	$	-
	Commercial mortgage nonowner-occupied loans	1		-
Residential mortgage loans		53		7
Consumer loans and leases:
	Home equity	6		1
	Credit card	423		2
Total portfolio loans and leases		484	$	10

• Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.

		Number of		Recorded
March 31, 2015 ($ in millions)(a)		Contracts		Investment
Residential mortgage loans		40	$	5
Consumer loans and leases:
	Home equity	5		-
	Automobile loans	4		-
	Credit card	588		3
Total portfolio loans and leases		637	$	8

• Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.

XML

Bank Premises and Equipment (Tables)

3 Months Ended

Mar. 31, 2016

Bank Premises and Equipment

Bank Premises and Equipment

The following table provides a summary of bank premises and equipment as of:
($ in millions)		March 31, 2016	December 31, 2015
Land and improvements(a)	$	682	685
Buildings		1,695	1,755
Equipment		1,715	1,696
Leasehold improvements		403	403
Construction in progress		86	85
Bank premises and equipment held for sale:
Land and improvements		41	55
Buildings		23	20
Equipment		2	3
Leasehold improvements		2	3
Accumulated depreciation and amortization		(2,464)	(2,466)
Total bank premises and equipment	$	2,185	2,239

• AtMarch 31, 2016 and December 31, 2015, land and improvements included $101and $102,respectively, associated with parcels of undeveloped land intended for future branch expansion.

Assets And Liabilities Held For Sale

The following table summarizes the assets and liabilities classified as held for sale as a result of the Branch Consolidation and Sales Plan as of:
($ in millions)				March 31, 2016(d)
Assets:
	Loans held for sale:
		Commercial and industrial loans	$	8
		Commercial mortgage loans		5
		Residential mortgage loans		68
		Home equity		19
		Automobile loans		1
Total loans held for sale(a)			$	101
	Bank premises and equipment held for sale (included in the preceding table):
		Land and improvements(b)		28
		Buildings(b)		10
		Equipment(b)		2
		Leasehold improvements(b)		2
Total bank premises and equipment held for sale (included in the preceding table)			$	42
Total assets held for sale			$	143
Liabilities:
	Deposits held for sale:
		Noninterest-bearing deposits	$	51
		Interest-bearing deposits		280
Total deposits held for sale(c)			$	331
Total liabilities held for sale			$	331

• Included in loans held for sale in the Condensed Consolidated Balance Sheets.
• Included in bank premises and equipment in the Condensed Consolidated Balance Sheets.
• Included in noninterest-bearing deposits and interest-bearing deposits in the Condensed Consolidated Balance Sheets.
• Included in the Branch Banking, Consumer Lending and Investment Advisors business segments.

XML

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2016

Intangible Assets

Intangible Assets

The details of the Bancorp’s intangible assets are shown in the following table:
			Gross Carrying	Accumulated	Net Carrying
($ in millions)			Amount	Amortization	Amount
As of March 31, 2016
	Core deposit intangibles	$	34	(26)	8
	Other		32	(29)	3
Total intangible assets		$	66	(55)	11
As of December 31, 2015
	Core deposit intangibles	$	34	(26)	8
	Other		33	(29)	4
Total intangible assets		$	67	(55)	12

Estimated Amortization Expense

The Bancorp's projections of amortization expense shown below are based on existing asset balances as of March 31, 2016. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2016 through 2020 is as follows:
($ in millions)		Total
Remainder of 2016	$	1
2017		2
2018		2
2019		1
2020		1

Estimated amortization expense for the remainder of 2016 through 2020 is as follows:
($ in millions)		Total
Remainder of 2016	$	90
2017		109
2018		98
2019		89
2020		80

XML

Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2016

Variable Interest Entities

Consolidation of Variable Interest Entities Disclosure

The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Condensed Consolidated Balance Sheets as of:
			Automobile Loan	CDC
March 31, 2016 ($ in millions)			Securitizations	Investments	Total
Assets:
	Cash and due from banks	$	146	1	147
	Commercial mortgage loans		-	47	47
	Automobile loans		2,131	-	2,131
	ALLL		(10)	(17)	(27)
	Other assets		10	1	11
Total assets		$	2,277	32	2,309
Liabilities:
	Other liabilities	$	4	-	4
	Long-term debt		2,102	-	2,102
Total liabilities		$	2,106	-	2,106
Noncontrolling interests		$	-	32	32

			Automobile Loan	CDC
December 31, 2015 ($ in millions)			Securitizations	Investments	Total
Assets:
	Cash and due from banks	$	151	1	152
	Commercial mortgage loans		-	47	47
	Automobile loans		2,490	-	2,490
	ALLL		(11)	(17)	(28)
	Other assets		14	-	14
Total assets		$	2,644	31	2,675
Liabilities
	Other liabilities	$	3	-	3
	Long-term debt		2,487	-	2,487
Total liabilities		$	2,490	-	2,490
Noncontrolling interests		$	-	31	31

Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses

Non-consolidated VIEs
The following tables provide a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of:
		Total	Total	Maximum
March 31, 2016 ($ in millions)		Assets	Liabilities	Exposure
CDC investments	$	1,410	329	1,410
Private equity investments		212	-	270
Loans provided to VIEs		1,842	-	2,858

		Total	Total	Maximum
December 31, 2015 ($ in millions)		Assets	Liabilities	Exposure
CDC investments	$	1,455	367	1,455
Private equity investments		211	-	271
Loans provided to VIEs		1,630	-	2,599

Investments in Qualified Affordable Housing Tax Credits

The Bancorp has accounted for all of its investments in qualified affordable housing tax credits using the equity method of accounting. The following table summarizes the impact to the Condensed Consolidated Statements of Income relating to investments in qualified affordable housing investments:
	Condensed Consolidated		For the three months ended March 31,
($ in millions)	Statements of Income Caption		2016	2015
Pre-tax investment and impairment losses(a)	Other noninterest expense	$	36	34
Tax credits and other benefits	Applicable income tax expense		(55)	(52)

• The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during threemonths ended March 31, 2016 and 2015.

XML

Sales of Receivables and Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2016

Sales of Receivables and Servicing Rights

Activity Related to Mortgage Banking Net Revenue

Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows:
		For the three months ended
		March 31,
($ in millions)		2016		2015
Residential mortgage loan sales(a)	$	1,114	a	1,001	(b)
Origination fees and gains on loan sales		42		44
Gross mortgage servicing fees		52		59

• Represents the unpaid principal balance at the time of the sale.
• Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were soldduring the first quarter of 2015.

Changes in the Servicing Assets

Servicing Rights
The following table presents changes in the servicing rights related to residential mortgage and automobile loans for the three months ended March 31:
($ in millions)		2016	2015
Carrying amount before valuation allowance:
Balance, beginning of period	$	1,204	1,392
Servicing rights that result from the transfer of residential mortgage loans		12	13
Amortization		(27)	(34)
Balance, end of period	$	1,189	1,371
Valuation allowance for servicing rights:
Balance, beginning of period	$	(419)	(534)
Provision for MSR impairment		(85)	(48)
Balance, end of period		(504)	(582)
Carrying amount after valuation allowance	$	685	789

Estimated Amortization Expense on Servicing Rights

The Bancorp's projections of amortization expense shown below are based on existing asset balances as of March 31, 2016. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2016 through 2020 is as follows:
($ in millions)		Total
Remainder of 2016	$	1
2017		2
2018		2
2019		1
2020		1

Estimated amortization expense for the remainder of 2016 through 2020 is as follows:
($ in millions)		Total
Remainder of 2016	$	90
2017		109
2018		98
2019		89
2020		80

Fair Value of the Servicing Assets

The following table displays the beginning and ending fair value of the servicing rights for the three months ended March 31:
($ in millions)		2016	2015
Fixed-rate residential mortgage loans:
Balance, beginning of period	$	757	823
Balance, end of period		660	759
Adjustable-rate residential mortgage loans:
Balance, beginning of period		27	33
Balance, end of period		25	29
Fixed-rate automobile loans:
Balance, beginning of period		1	2
Balance, end of period		-	1

Activity Related to the MSR Portfolio

The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Changes in fair value and settlement of free-standing derivatives purchased
to economically hedge the MSR portfolio	$	96	65
Provision for MSR impairment		(85)	(48)

Servicing Assets and Residual Interests Economic Assumptions

As of March 31, 2016 and 2015, the key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale or securitization resulting from transactions completed during the three months ended were as follows:
		March 31, 2016					March 31, 2015
	Rate	Weighted-Average Life (in years)	Prepayment Speed (annual)		OAS Spread (bps)	Weighted-Average Default Rate	Weighted-Average Life (in years)	Prepayment Speed (annual)		OAS Spread (bps)	Weighted-Average Default Rate
Residential mortgage loans:
Servicing rights	Fixed	6.3	12.6	%	539	N/A	6.2	12.6	%	900	N/A
Servicing rights	Adjustable	3.0	27.5		681	N/A	3.6	23.4		1,180	N/A

Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions

At March 31, 2016, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in other assumptions are as follows:
					Prepayment						Residual Servicing
					Speed Assumption						Cash Flows
			Fair	Weighted-Average Life				Impact of Adverse Change on Fair Value			OAS Spread		Impact of Adverse Change on Fair Value
($ in millions)(a)	Rate		Value	(in years)	Rate			10%	20%	50%	(bps)		10%	20%
Residential mortgage loans:
Servicing rights	Fixed	$	660	5.2	14.1	%	$	(33)	(63)	(138)	603	$	(15)	(29)
Servicing rights	Adjustable		25	2.9	27.8			(2)	(3)	(7)	713		-	(1)

• The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial.

XML

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Financial Instruments

Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets

The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of:
				Fair Value
		Notional		Derivative	Derivative
March 31, 2016 ($ in millions)		Amount		Assets	Liabilities
Qualifying Hedging Instruments
Fair value hedges:
Interest rate swaps related to long-term debt	$	2,705		453	-
Total fair value hedges				453	-
Cash flow hedges:
Interest rate swaps related to C&I loans		4,475		98	-
Total cash flow hedges				98	-
Total derivatives designated as qualifying hedging instruments				551	-
Derivatives Not Designated as Qualifying Hedging Instruments
Free-standing derivatives - risk management and other business purposes:
Interest rate contracts related to MSRs		9,407		363	55
Forward contracts related to held for sale residential mortgage loans		1,423		-	8
Stock warrant associated with Vantiv Holding, LLC		420		308	-
Swap associated with the sale of Visa, Inc. Class B shares		1,274		-	55
Foreign exchange contracts		129		-	3
Total free-standing derivatives - risk management and other business purposes				671	121
Free-standing derivatives - customer accommodation:
Interest rate contracts for customers		30,604		357	366
Interest rate lock commitments		1,121		29	-
Commodity contracts		2,248		233	211
Foreign exchange contracts		15,039		285	269
Total free-standing derivatives - customer accommodation				904	846
Total derivatives not designated as qualifying hedging instruments				1,575	967
Total			$	2,126	967

				Fair Value
		Notional		Derivative	Derivative
December 31, 2015 ($ in millions)		Amount		Assets	Liabilities
Qualifying Hedging Instruments
Fair value hedges:
Interest rate swaps related to long-term debt	$	2,705		372	2
Total fair value hedges				372	2
Cash flow hedges:
Interest rate swaps related to C&I loans		5,475		39	-
Total cash flow hedges				39	-
Total derivatives designated as qualifying hedging instruments				411	2
Derivatives Not Designated as Qualifying Hedging Instruments
Free-standing derivatives - risk management and other business purposes:
Interest rate contracts related to MSRs		11,657		239	9
Forward contracts related to held for sale residential mortgage loans		1,330		3	1
Stock warrant associated with Vantiv Holding, LLC		369		262	-
Swap associated with the sale of Visa, Inc. Class B shares		1,292		-	61
Total free-standing derivatives - risk management and other business purposes				504	71
Free-standing derivatives - customer accommodation:
Interest rate contracts for customers		29,889		242	249
Interest rate lock commitments		721		15	-
Commodity contracts		2,464		294	276
Foreign exchange contracts		16,243		386	340
Total free-standing derivatives - customer accommodation				937	865
Total derivatives not designated as qualifying hedging instruments				1,441	936
Total			$	1,852	938

Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships

The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income:
	Condensed Consolidated		For the three months
	Statements of		ended March 31,
($ in millions)	Income Caption		2016	2015
Change in fair value of interest rate swaps hedging long-term debt	Interest on long-term debt	$	83	41
Change in fair value of hedged long-term debt attributable to the risk being hedged	Interest on long-term debt		(85)	(43)

Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges

The following table presents the pretax net gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Amount of pretax net gains recognized in OCI	$	74	52
Amount of pretax net gains reclassified from OCI into net income		14	16

Schedule of Price Risk Derivatives

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table:
	Condensed Consolidated		For the three months
	Statements of		ended March 31,
($ in millions)	Income Caption		2016	2015
Interest rate contracts:
Forward contracts related to residential mortgage loans held for sale	Mortgage banking net revenue	$	(11)	-
Interest rate contracts related to MSR portfolio	Mortgage banking net revenue		96	65
Foreign exchange contracts:
Foreign exchange contracts for risk management purposes	Other noninterest income		(4)	15
Equity contracts:
Stock warrant associated with Vantiv Holding, LLC	Other noninterest income		47	70
Swap associated with sale of Visa, Inc. Class B shares	Other noninterest income		1	(17)

Risk Ratings of the Notional Amount of Risk Participation Agreements

Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of:
		March 31,	December 31,
($ in millions)		2016	2015
Pass	$	2,324	1,650
Special mention		17	7
Substandard		3	7
Total	$	2,344	1,664

Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accomodation

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table:
			For the three months
	Condensed Consolidated		ended March 31,
($ in millions)	Statements of Income Caption		2016	2015
Interest rate contracts:
Interest rate contracts for customers (contract revenue)	Corporate banking revenue	$	7	6
Interest rate contracts for customers (credit portion of fair value adjustment)	Other noninterest expense		(1)	(1)
Interest rate lock commitments	Mortgage banking net revenue		42	35
Commodity contracts:
Commodity contracts for customers (contract revenue)	Corporate banking revenue		1	1
Commodity contracts for customers (credit losses)	Other noninterest expense		-	(2)
Commodity contracts for customers (credit portion of fair value adjustment)	Other noninterest expense		(1)	5
Foreign exchange contracts:
Foreign exchange contracts for customers (contract revenue)	Corporate banking revenue		16	21
Foreign exchange contracts for customers (credit portion of fair value adjustment)	Other noninterest expense		(2)	(1)

Offsetting Derivative Financial Instruments

The following tables provide a summary of offsetting derivative financial instruments:
	Gross Amount		Gross Amounts Not Offset in the
	Recognized in the		Condensed Consolidated Balance Sheets
As of March 31, 2016 ($ in millions)	Condensed Consolidated Balance Sheets(a)		Derivatives	Collateral(b)	Net Amount
Assets
Derivatives	$	1,789	(656)	(578)		555
Total assets		1,789	(656)	(578)		555
Liabilities
Derivatives		967	(656)	(110)		201
Total liabilities	$	967	(656)	(110)		201

• Amount does not include the stock warrantassociated with Vantiv Holding, LLC andIRLCs because these instruments are not subject to master netting or similar arrangements.
• Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.

	Gross Amount		Gross Amounts Not Offset in the
	Recognized in the		Condensed Consolidated Balance Sheets
As of December 31, 2015 ($ in millions)	Condensed Consolidated Balance Sheets(a)		Derivatives	Collateral(b)	Net Amount
Assets
Derivatives	$	1,575	(512)	(627)		436
Total assets		1,575	(512)	(627)		436
Liabilities
Derivatives		938	(512)	(173)		253
Total liabilities	$	938	(512)	(173)		253

• Amount does not include the stock warrantassociated with Vantiv Holding, LLC andIRLCs because these instruments are not subject to master netting or similar arrangements.
• Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.

XML

Other Short Term Borrowings (Tables)

3 Months Ended

Mar. 31, 2016

Short-term Debt

Schedule Of Short Term Debt

Borrowings with original maturities of one year or less are classified as short-term. The following table presents a summary of the Bancorp's other short-term borrowings as of:
		March 31,	December 31,
($ in millions)		2016	2015
FHLB advances	$	2,000	-
Securities sold under repurchase agreements		785	925
Derivative collateral		738	582
Total other short-term borrowings	$	3,523	1,507

Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets

The following table summarizes the Bancorp's securities sold under repurchase agreements by the type of collateral securing the borrowing and remaining contractual maturity as of:
($ in millions)			March 31, 2016		December 31, 2015
			Amount	Remaining Contractual Maturity	Amount	Remaining Contractual Maturity
Collateral type:
	Agency residential mortgage-backed securities	$	602	Overnight	646	Overnight
	U.S. Treasury and federal agencies securities		183	Overnight	279	Overnight
Total securities sold under repurchase agreements		$	785		925

XML

Capital Actions (Tables)

3 Months Ended

Mar. 31, 2016

Capital Actions

Summary of the Bancorp's Accelerated Share Repurchase Transactions

The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the three months ended March 31, 2016:
Repurchase Date		Amount ($ in millions)	Shares Repurchased on Repurchase Date	Shares Received from Forward Contract Settlement	Total Shares Repurchased	Settlement Date
December 14, 2015	$	215	9,248,482	1,782,477	11,030,959	January 14, 2016
March 4, 2016		240	12,623,762	1,868,379	14,492,141	April 11, 2016

XML

Commitments, Contingent Liabilities and Guarantees (Tables)

3 Months Ended

Mar. 31, 2016

Commitments, Contingent Liabilities and Guarantees

Summary of Significant Commitments

Commitments
The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of:
		March 31,	December 31,
($ in millions)		2016	2015
Commitments to extend credit	$	66,908	66,884
Letters of credit		2,945	3,055
Forward contracts related to held for sale residential mortgage loans		1,423	1,330
Noncancelable operating lease obligations		618	635
Purchase obligations		70	60
Capital commitments for private equity investments		62	60
Capital expenditures		30	30
Capital lease obligations		24	27

Credit Risk Associated With Commitments

Risk ratings under this risk rating system are summarized in the following table as of:
		March 31,	December 31,
($ in millions)		2016	2015
Pass	$	65,672	65,645
Special mention		585	647
Substandard		648	592
Doubtful		3	-
Total commitments to extend credit	$	66,908	66,884

Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of March 31, 2016:
($ in millions)
Less than 1 year(a)	$	1,673
1 - 5 years(a)		1,244
Over 5 years		28
Total letters of credit	$	2,945

• Includes $25and $15issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than1 year and between 1- 5 years, respectively.

Credit Risk associated with Letters of Credit

Risk ratings under this risk rating system are summarized in the following table as of:
		March 31,	December 31,
($ in millions)		2016	2015
Pass	$	2,477	2,606
Special mention		138	130
Substandard		250	258
Doubtful		80	61
Total letters of credit	$	2,945	3,055

Activity in Reserve for Representation and Warranty Provisions

The following table summarizes activity in the reserve for representation and warranty provisions:
		For the three months ended March 31,
($ in millions)		2016	2015
Balance, beginning of period	$	25	35
Net (reductions) additions to the reserve		(2)	2
Losses charged against the reserve		-	(1)
Balance, end of period	$	23	36

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following tables provide a rollforward of unresolved claims by claimant type for the three months ended March 31:
	GSE			Private Label
2016 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	16	$	4	2	$	-
New demands	71		6	2		-
Loan paydowns/payoffs	(4)		(1)	-		-
Resolved demands	(68)		(7)	(3)		-
Balance, end of period	15	$	2	1	$	-

	GSE			Private Label
2015 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	37	$	6	1	$	1
New demands	118		9	6		-
Loan paydowns/payoffs	(4)		-	-		-
Resolved demands	(119)		(11)	(5)		(1)
Balance, end of period	32	$	4	2	$	-

Visa Funding and Bancorp Cash Payments

After the Bancorp's sale of Visa Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows:

		Visa	Bancorp Cash
Period ($ in millions)		Funding Amount	Payment Amount
Q2 2010	$	500	20
Q4 2010		800	35
Q2 2011		400	19
Q1 2012		1,565	75
Q3 2012		150	6
Q3 2014		450	18	i

XML

Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2016

Accumulated Other Comprehensive Income

Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income

The tables below present the activity of the components of OCI and AOCI for the three months ended March 31, 2016 and 2015:
			Total Other			Total Accumulated Other
			Comprehensive Income			Comprehensive Income
			Pretax	Tax	Net	Beginning	Net	Ending
March 31, 2016 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale securities arising
	during period	$	695	(243)	452
Reclassification adjustment for net gains on available-for-sale
	securities included in net income		(8)	3	(5)
Net unrealized gains on available-for-sale securities			687	(240)	447	238	447	685
Unrealized holding gains on cash flow hedge derivatives arising
	during period		74	(26)	48
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(14)	5	(9)
Net unrealized gains on cash flow hedge derivatives			60	(21)	39	22	39	61
Reclassification of amounts to net periodic benefit costs			2	(1)	1
Defined benefit pension plans, net			2	(1)	1	(63)	1	(62)
Total		$	749	(262)	487	197	487	684

			Total Other			Total Accumulated Other
			Comprehensive Income			Comprehensive Income
			Pretax	Tax	Net	Beginning	Net	Ending
March 31, 2015 ($ in millions)			Activity	Effect	Activity	Balance	Activity	Balance
Unrealized holding gains on available-for-sale securities arising
	during period	$	215	(74)	141
Reclassification adjustment for net gains on available-for-sale
	securities included in net income		(12)	4	(8)
Net unrealized gains on available-for-sale securities			203	(70)	133	475	133	608
Unrealized holding gains on cash flow hedge derivatives arising
	during period		52	(18)	34
Reclassification adjustment for net gains on cash flow hedge
	derivatives included in net income		(16)	6	(10)
Net unrealized gains on cash flow hedge derivatives			36	(12)	24	23	24	47
Reclassification of amounts to net periodic benefit costs			3	(1)	2
Defined benefit pension plans, net			3	(1)	2	(69)	2	(67)
Total		$	242	(83)	159	429	159	588

Reclassification Out of Accumulated Other Comprehensive Income to Net Income

The table below presents reclassifications out of AOCI:
		Condensed Consolidated Statements of Income Caption		For the three months ended March 31,
Components of AOCI: ($ in millions)				2016	2015
Net unrealized gains on available-for-sale securities:(b)
	Net gains included in net income	Securities gains, net	$	8	12
		Income before income taxes		8	12
		Applicable income tax expense		(3)	(4)
		Net income		5	8
Net unrealized gains on cash flow hedge derivatives:(b)
	Interest rate contracts related to C&I loans	Interest and fees on loans and leases		14	16
		Income before income taxes		14	16
		Applicable income tax expense		(5)	(6)
		Net income		9	10
Net periodic benefit costs:(b)
	Amortization of net actuarial loss	Employee benefits expense(a)		(2)	(3)
		Income before income taxes		(2)	(3)
		Applicable income tax expense		1	1
		Net income		(1)	(2)
Total reclassifications for the period		Net income	$	13	16

• This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015 for information on the computation of net periodic benefit cost.
• Amounts in parentheses indicate reductions to net income.

XML

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share

Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share

The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the three months ended March 31:
		2016			2015
			Average	Per Share		Average	Per Share
(in millions, except per share data)		Income	Shares	Amount	Income	Shares	Amount
Earnings Per Share:
Net income attributable to Bancorp	$	327			361
Dividends on preferred stock		15			15
Net income available to common shareholders		312			346
Less: Income allocated to participating securities		3			3
Net income allocated to common shareholders	$	309	774	0.40	343	810	0.42
Earnings Per Diluted Share:
Net income available to common shareholders	$	312			346
Effect of dilutive securities:
Stock-based awards		-	4		-	9
Net income available to common shareholders		312			346
plus assumed conversions
Less: Income allocated to participating securities		3			3
Net income allocated to common shareholders
plus assumed conversions	$	309	778	0.40	343	819	0.42

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables summarize assets and liabilities measured at fair value on a recurring basis, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of:
	Fair Value Measurements Using
March 31, 2016 ($ in millions)		Level 1(c)	Level 2(c)	Level 3	Total Fair Value
Assets:
Available-for-sale and other securities:
U.S. Treasury and federal agencies securities	$	77	1,084	-	1,161
Obligations of states and political subdivisions securities		-	52	-	52
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	15,129	-	15,129
Agency commercial mortgage-backed securities		-	8,205	-	8,205
Non-agency commercial mortgage-backed securities		-	3,120	-	3,120
Asset-backed securities and other debt securities		-	1,520	-	1,520
Equity securities(a)		99	1	-	100
Available-for-sale and other securities(a)		176	29,111	-	29,287
Trading securities:
U.S. Treasury and federal agencies securities		1	17	-	18
Obligations of states and political subdivisions securities		-	54	-	54
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	5	-	5
Agency commercial mortgage-backed securities		-	1	-	1
Asset-backed securities and other debt securities		-	23	-	23
Equity securities		304	-	-	304
Trading securities		305	100	-	405
Residential mortgage loans held for sale		-	600	-	600
Residential mortgage loans(b)		-	-	160	160
Derivative assets:
Interest rate contracts		1	1,270	29	1,300
Foreign exchange contracts		-	285	-	285
Equity contracts		-	-	308	308
Commodity contracts		37	196	-	233
Derivative assets(d)		38	1,751	337	2,126
Total assets	$	519	31,562	497	32,578
Liabilities:
Derivative liabilities:
Interest rate contracts	$	9	416	4	429
Foreign exchange contracts		-	272	-	272
Equity contracts		-	-	55	55
Commodity contracts		21	190	-	211
Derivative liabilities(e)		30	878	59	967
Short positions(e)		15	9	-	24
Total liabilities	$	45	887	59	991

• Excludes FHLB, FRB and DTCC restricted stock holdings totaling $248, $355 and $1 respectively, at March 31, 2016.
• Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
• During the three months ended March 31, 2016, no assets or liabilities were transferred between Level 1 and Level 2.
• Included in other assets in the Condensed Consolidated Balance Sheets.
• Included in other liabilities in the Condensed Consolidated Balance Sheets.

	Fair Value Measurements Using
December 31, 2015 ($ in millions)		Level 1(c)	Level 2(c)	Level 3	Total Fair Value
Assets:
Available-for-sale and other securities:
U.S. Treasury and federal agencies securities	$	100	1,087	-	1,187
Obligations of states and political subdivisions securities		-	52	-	52
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	15,081	-	15,081
Agency commercial mortgage-backed securities		-	7,862	-	7,862
Non-agency commercial mortgage-backed securities		-	2,804	-	2,804
Asset-backed securities and other debt securities		-	1,355	-	1,355
Equity securities(a)		98	1	-	99
Available-for-sale and other securities(a)		198	28,242	-	28,440
Trading securities:
U.S. Treasury and federal agencies securities		-	19	-	19
Obligations of states and political subdivisions securities		-	9	-	9
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	6	-	6
Asset-backed securities and other debt securities		-	19	-	19
Equity securities		333	-	-	333
Trading securities		333	53	-	386
Residential mortgage loans held for sale		-	519	-	519
Residential mortgage loans(b)		-	-	167	167
Derivative assets:
Interest rate contracts		3	892	15	910
Foreign exchange contracts		-	386	-	386
Equity contracts		-	-	262	262
Commodity contracts		54	240	-	294
Derivative assets(d)		57	1,518	277	1,852
Total assets	$	588	30,332	444	31,364
Liabilities:
Derivative liabilities:
Interest rate contracts	$	1	257	3	261
Foreign exchange contracts		-	340	-	340
Equity contracts		-	-	61	61
Commodity contracts		37	239	-	276
Derivative liabilities(e)		38	836	64	938
Short positions(e)		22	7	-	29
Total liabilities	$	60	843	64	967

• Excludes FHLB, FRB and DTCC restricted stock holdings totaling $248, $355 and $1, respectively, at December 31, 2015.
• Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
• During the year ended December 31, 2015, no assets or liabilities were transferred between Level 1 and Level 2.
• Included in other assets in the Condensed Consolidated Balance Sheets.
• Included in other liabilities in the Condensed Consolidated Balance Sheets.

Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		Residential	Interest Rate	Equity
For the three months ended March 31, 2016		Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Loans	Net(a)	Net(a)	Fair Value
Balance, beginning of period	$	167	12	201		380
Total gains (realized/unrealized):
Included in earnings		1	42	48		91
Purchases		-	(1)	-		(1)
Settlements		(11)	(28)	4		(35)
Transfers into Level 3(b)		3	-	-		3
Balance, end of period	$	160	25	253		438
The amount of total gains for the period
included in earnings attributable to the change in unrealized
gains or losses relating to assets still held at March 31, 2016(c)	$	1	29	48		78

• Net interest rate derivatives include derivative assets and liabilities of$29and $4, respectively, as of March 31, 2016. Net equity derivatives include derivative assets and liabilities of $308 and $55, respectively, as of March 31, 2016.
• Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.
• Includes interest income and expense.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		Residential	Interest Rate	Equity
For the three months ended March 31, 2015		Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Loans	Net(a)	Net(a)	Fair Value
Balance, beginning of period	$	108	10	366		484
Total gains or losses (realized/unrealized):
Included in earnings		2	35	53		90
Settlements		(7)	(28)	6		(29)
Transfers into Level 3(b)		23	-	-		23
Balance, end of period	$	126	17	425		568
The amount of total gains for the period
included in earnings attributable to the change in unrealized
gains or losses relating to assets still held at March 31, 2015(c)	$	2	19	53		74

• Net interest rate derivatives include derivative assets and liabilities of$19and $2, respectively, as of March 31, 2015. Net equity derivatives include derivative assets and liabilities of $485and $60, respectively, as of March 31, 2015.
• Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.
• Includes interest income and expense.

Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Mortgage banking net revenue	$	43	36
Corporate banking revenue		-	1
Other noninterest income		48	53
Total gains	$	91	90

The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at March 31, 2016 and 2015 were recorded in the Condensed Consolidated Statements of Income as follows:
		For the three months ended
		March 31,
($ in millions)		2016	2015
Mortgage banking net revenue	$	30	20
Corporate banking revenue		-	1
Other noninterest income		48	53
Total gains	$	78	74

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of March 31, 2016 and 2015, and for which a nonrecurring fair value adjustment was recorded during the three months ended March 31, 2016 and 2015, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period.
		Fair Value Measurements Using				Total (Losses) Gains
						For the three months
As of March 31, 2016 ($ in millions)		Level 1	Level 2	Level 3	Total	ended March 31, 2016
Commercial loans held for sale	$	-	-	5	5	(2)
Commercial and industrial loans		-	-	347	347	(47)
Commercial mortgage loans		-	-	85	85	6
Commercial construction loans		-	-	-	-	2
MSRs		-	-	685	685	(85)
OREO		-	-	27	27	(3)
Bank premises and equipment		-	-	12	12	1
Total	$	-	-	1,161	1,161	(128)

		Fair Value Measurements Using				Total (Losses) Gains
						For the three months
As of March 31, 2015 ($ in millions)		Level 1	Level 2	Level 3	Total	ended March 31, 2015
Commercial loans held for sale	$	-	-	1	1	4
Commercial and industrial loans		-	-	366	366	(43)
Commercial mortgage loans		-	-	52	52	(13)
Residential mortgage loans		-	-	55	55	(1)
MSRs		-	-	788	788	(48)
OREO		-	-	36	36	(8)
Bank premises and equipment		-	-	5	5	(3)
Operating lease equipment		-	-	39	39	(30)
Total	$	-	-	1,342	1,342	(142)

Quantitative information about significant unobservable level 3 fair value measurement inputs

The following tables present information as of March 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis:
As of March 31, 2016 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Residential mortgage loans	$	160	Loss rate model	Interest rate risk factor	(6.0) - 16.5%	4.4%
				Credit risk factor	0 - 80.5%	1.4%
IRLCs, net		29	Discounted cash flow	Loan closing rates	5.6 - 94.0%	75.0%
Stock warrant associated with Vantiv		308	Black-Scholes option-	Expected term (years)	2.0 - 13.3	5.8
Holding, LLC			pricing model	Expected volatility(a)	23.0 - 30.4%	25.9%
Swap associated with the sale of Visa, Inc.		(55)	Discounted cash flow	Timing of the resolution	12/31/2016 -	NM
Class B shares				of the Covered Litigation	3/31/2021

• Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms.

As of March 31, 2015 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Residential mortgage loans	$	126	Loss rate model	Interest rate risk factor	(5.7) - 18.3%	5.3%
				Credit risk factor	0 - 47.9%	1.2%
IRLCs, net		19	Discounted cash flow	Loan closing rates	2.3 - 87.6%	67.0%
Stock warrant associated with Vantiv		485	Black-Scholes option-	Expected term (years)	2.0 - 14.3	5.9
Holding, LLC			pricing model	Expected volatility(a)	22.9 - 32.2%	26.5%
Swap associated with the sale of Visa, Inc.		(60)	Discounted cash flow	Timing of the resolution	9/30/2016-	NM
Class B shares				of the Covered Litigation	3/31/2021

• Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms.

The following tables present information as of March 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis:
As of March 31, 2016 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Commercial loans held for sale	$	5	Appraised value	Appraised value	NM	NM
				Cost to sell	NM	10.0%
Commercial and industrial loans		347	Appraised value	Collateral value	NM	NM
Commercial mortgage loans		85	Appraised value	Collateral value	NM	NM
Commercial construction loans		0	Appraised value	Collateral value	NM	NM
MSRs		685	Discounted cash flow	Prepayment speed	0 - 100%	(Fixed) 14.1% (Adjustable) 27.8%
				OAS spread (bps)	364-1,515	(Fixed) 603 (Adjustable) 713
OREO		27	Appraised value	Appraised value	NM	NM
Bank premises and equipment		12	Appraised value	Appraised value	NM	NM

As of March 31, 2015 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Commercial loans held for sale	$	1	Appraised value	Appraised value	NM	NM
				Cost to sell	NM	10.0%
Commercial and industrial loans		366	Appraised value	Collateral value	NM	NM
Commercial mortgage loans		52	Appraised value	Collateral value	NM	NM
Residential mortgage loans		55	Appraised value	Appraised value	NM	NM
MSRs		788	Discounted cash flow	Prepayment speed	0.6 - 100%	(Fixed) 10.0% (Adjustable) 32.2%
				OAS spread (bps)	430-1,700	(Fixed) 920 (Adjustable) 640
OREO		36	Appraised value	Appraised value	NM	NM
Bank premises and equipment		5	Appraised value	Appraised value	NM	NM
Operating lease equipment		39	Appraised value	Appraised value	NM	NM

Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value

The following table summarizes the difference between the fair value and the principal balance for residential mortgage loans measured at fair value as of:
		Aggregate	Aggregate Unpaid
($ in millions)		Fair Value	Principal Balance	Difference
March 31, 2016
Residential mortgage loans measured at fair value	$	760	730	30
Past due loans of 90 days or more		1	1	-
Nonaccrual loans		1	1	-
December 31, 2015
Residential mortgage loans measured at fair value	$	686	669	17
Past due loans of 90 days or more		2	2	-
Nonaccrual loans		2	2	-

Carrying Amounts and Estimated Fair Values for Certain Financial Instruments

Fair Value of Certain Financial Instruments
The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis:
		Net Carrying	Fair Value Measurements Using			Total
As of March 31, 2016 ($ in millions)		Amount	Level 1	Level 2	Level 3	Fair Value
Financial assets:
Cash and due from banks	$	2,298	2,298	-	-	2,298
Other securities		604	-	604	-	604
Held-to-maturity securities		64	-	-	64	64
Other short-term investments		1,778	1,778	-	-	1,778
Loans held for sale		203	-	-	203	203
Portfolio loans and leases:
Commercial and industrial loans		42,736	-	-	43,168	43,168
Commercial mortgage loans		6,758	-	-	6,624	6,624
Commercial construction loans		3,404	-	-	3,169	3,169
Commercial leases		3,916	-	-	3,675	3,675
Residential mortgage loans		13,637	-	-	14,588	14,588
Home equity		8,050	-	-	8,855	8,855
Automobile loans		11,087	-	-	10,834	10,834
Credit card		2,039	-	-	2,432	2,432
Other consumer loans and leases		639	-	-	616	616
Unallocated ALLL		(116)	-	-	-	-
Total portfolio loans and leases, net	$	92,150	-	-	93,961	93,961
Financial liabilities:
Deposits	$	102,475	-	102,544	-	102,544
Federal funds purchased		134	134	-	-	134
Other short-term borrowings		3,523	-	3,523	-	3,523
Long-term debt		15,305	15,202	702	-	15,904

		Net Carrying	Fair Value Measurements Using			Total
As of December 31, 2015 ($ in millions)		Amount	Level 1	Level 2	Level 3	Fair Value
Financial assets:
Cash and due from banks	$	2,540	2,540	-	-	2,540
Other securities		604	-	604	-	604
Held-to-maturity securities		70	-	-	70	70
Other short-term investments		2,671	2,671	-	-	2,671
Loans held for sale		384	-	-	384	384
Portfolio loans and leases:
Commercial and industrial loans		41,479	-	-	41,802	41,802
Commercial mortgage loans		6,840	-	-	6,656	6,656
Commercial construction loans		3,190	-	-	2,918	2,918
Commercial leases		3,807	-	-	3,533	3,533
Residential mortgage loans		13,449	-	-	14,061	14,061
Home equity		8,234	-	-	8,948	8,948
Automobile loans		11,453	-	-	11,170	11,170
Credit card		2,160	-	-	2,551	2,551
Other consumer loans and leases		646	-	-	643	643
Unallocated ALLL		(115)	-	-	-	-
Total portfolio loans and leases, net	$	91,143	-	-	92,282	92,282
Financial liabilities:
Deposits	$	103,205	-	103,219	-	103,219
Federal funds purchased		151	151	-	-	151
Other short-term borrowings		1,507	-	1,507	-	1,507
Long-term debt		15,810	15,603	625	-	16,228

XML

Business Segments (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting

Results of Operations and Average Assets by Segment

The following tables present the results of operations and assets by business segment for the three months ended:
						General
		Commercial	Branch	Consumer	Investment	Corporate
March 31, 2016 ($ in millions)		Banking	Banking	Lending	Advisors	and Other	Eliminations	Total
Net interest income	$	451	426	60	43	(77)	-	903
Provision for loan and lease losses		65	34	12	-	8	-	119
Net interest income after provision for loan and lease losses		386	392	48	43	(85)	-	784
Total noninterest income		223	189(b)	83	100	75	(33)(a)	637
Total noninterest expense		363	411	118	107	20	(33)	986
Income (loss) before income taxes		246	170	13	36	(30)	-	435
Applicable income tax expense		35	60	5	13	(5)	-	108
Net income (loss)		211	110	8	23	(25)	-	327
Less: Net income attributable to noncontrolling interests		-	-	-	-	-	-	-
Net income (loss) attributable to Bancorp		211	110	8	23	(25)	-	327
Dividends on preferred stock		-	-	-	-	15	-	15
Net income (loss) available to common shareholders	$	211	110	8	23	(40)	-	312
Total goodwill	$	613	1,655	-	148	-	-	2,416
Total assets	$	59,652	54,528	22,475	8,900	(3,125)	-	142,430

• Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income.
• Includes an impairment chargeof $2for branches and land. For more information refer to Note7 andNote 20.

						General
		Commercial	Branch	Consumer	Investment	Corporate
March 31, 2015 ($ in millions)		Banking	Banking	Lending	Advisors	and Other	Eliminations	Total
Net interest income	$	392	377	63	29	(14)	-	847
Provision for loan and lease losses		42	42	14	1	(30)	-	69
Net interest income after provision for loan and lease losses		350	335	49	28	16	-	778
Total noninterest income		174(c)	176(b)	129	107	82	(38)(a)	630
Total noninterest expense		348	400	105	115	(7)	(38)	923
Income before income taxes		176	111	73	20	105	-	485
Applicable income tax expense		13	39	26	7	39	-	124
Net income		163	72	47	13	66	-	361
Less: Net income attributable to noncontrolling interests		-	-	-	-	-	-	-
Net income attributable to Bancorp		163	72	47	13	66	-	361
Dividends on preferred stock		-	-	-	-	15	-	15
Net income available to common shareholders	$	163	72	47	13	51	-	346
Total goodwill	$	613	1,655	-	148	-	-	2,416
Total assets	$	57,855	53,295	22,057	10,042	(2,812)	-	140,437

• Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income.
• Includes an impairment charge of $4 for branches and land. For more information, refer to Note 7 and Note 20.
• Includes an impairment charge of $30 for operating lease equipment. For more information, refer to Note 20.

XML

Noncash Investing and Financing Activities (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest paid
Interest	$ 191	$ 166
Income taxes paid, net
Income taxes	334	13
Transfers:
Portfolio loans to loans held for sale	3	9
Loans held for sale to portfolio loans	12	78
Portfolio loans to OREO	$ 12	$ 33

XML

Summary of Significant Accounting and Reporting Developments - Additional Information (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Unamortized debt issuance costs	$ 34

XML

Available-for-Sale and Held-to-Maturity Securities (Detail) - USD ($) $ in Millions		Mar. 31, 2016		Dec. 31, 2015
Investment Holdings [Line Items]
Available-for-sale securities, fair value	[1]	$ 29,891		$ 29,044
Available-for-sale securities, unrealized losses		(22)		(101)
Available-for-sale securities, unrealized gains		1,075		467
Available-for-sale and other securities, Amortized Cost		28,838		28,678
Held-to-maturity securities, fair value		64		70
Held-to-maturity securities, amortized cost	[2]	64		70
U.S. Treasury and federal agencies
Investment Holdings [Line Items]
Available-for-sale securities, fair value		1,161		1,187
Available-for-sale securities, unrealized gains		30		32
Available-for-sale and other securities, Amortized Cost		1,131		1,155
Obligations of states and political subdivisions
Investment Holdings [Line Items]
Available-for-sale securities, fair value		52		52
Available-for-sale securities, unrealized gains		2		2
Available-for-sale and other securities, Amortized Cost		50		50
Held-to-maturity securities, fair value		62		68
Held-to-maturity securities, amortized cost		62		68
Agency mortgage-backed securities | Residential mortgage backed securities
Investment Holdings [Line Items]
Available-for-sale securities, fair value		15,129	[3]	15,081	[4]
Available-for-sale securities, unrealized losses		(2)	[3]	(13)	[4]
Available-for-sale securities, unrealized gains		545	[3]	283	[4]
Available-for-sale and other securities, Amortized Cost		14,586	[3]	14,811	[4]
Agency mortgage-backed securities | Commercial mortgage backed securities
Investment Holdings [Line Items]
Available-for-sale securities, fair value		8,205		7,862
Available-for-sale securities, unrealized losses				(33)
Available-for-sale securities, unrealized gains		368		100
Available-for-sale and other securities, Amortized Cost		7,837		7,795
Non-agency mortgage-backed securities | Commercial mortgage backed securities
Investment Holdings [Line Items]
Available-for-sale securities, fair value		3,120		2,804
Available-for-sale securities, unrealized losses				(32)
Available-for-sale securities, unrealized gains		115		35
Available-for-sale and other securities, Amortized Cost		3,005		2,801
Asset-backed securities and other debt securities
Investment Holdings [Line Items]
Available-for-sale securities, fair value		1,520		1,355
Available-for-sale securities, unrealized losses		(19)		(21)
Available-for-sale securities, unrealized gains		13		13
Available-for-sale and other securities, Amortized Cost		1,526		1,363
Held-to-maturity securities, fair value		2		2
Held-to-maturity securities, amortized cost		2		2
Equity securities
Investment Holdings [Line Items]
Available-for-sale securities, fair value		704	[5]	703	[6]
Available-for-sale securities, unrealized losses		(1)	[5]	(2)	[6]
Available-for-sale securities, unrealized gains		2	[5]	2	[6]
Available-for-sale and other securities, Amortized Cost		$ 703	[5]	$ 703	[6]

[1] Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively.

[2] Fair value of $64 and $70 at March 31, 2016 and December 31, 2015, respectively.

[3] Includes interest-only mortgage-backed securities of $41 as of March 31, 2016 recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income.

[4] Includes interest-only mortgage-backed securities of $50 as of December 31, 2015, recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income.

[5] Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355 and $1, respectively, at March 31, 2016, that are carried at cost, and certain mutual fund and equity security holdings.

[6] Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355, and $1, respectively, at December 31, 2015, that are carried at cost, and certain mutual fund and equity security holdings

XML

Available-for-Sale and Held-to-Maturity Securities (Parenthetical) (Detail) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Investment Holdings [Line Items]
FHLB, restricted stock holdings		$ 248	$ 248
Federal Reserve Bank, restricted stock holdings		355	355
Available-for-sale and other securities	[1]	29,891	29,044
DTCC, restricted stock holdings		1	1
Interest-Only Mortgage-Backed Securities
Investment Holdings [Line Items]
Available-for-sale and other securities		$ 41	$ 50

[1] Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively.

XML

Realized Gains and Losses Recognized in Income from Available-for-Sale Securities (Detail) - Available-for-sale Securities - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Investments, Unrealized Loss Position [Line Items]
Realized gains		$ 15	$ 15
Realized losses		(4)	(2)
OTTI		(3)	(1)
Net realized gains (losses)	[1]	$ 8	$ 12

[1] Excludes net losses on interest-only mortgage-backed securities of $6 and $9 for the three months ended March 31, 2016 and March 31, 2015, respectively.

XML

Realized Gains and Losses Recognized in Income from Available-for-Sale Securities (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest-Only Mortgage-Backed Securities
Investment Holdings [Line Items]
Net gains/losses on interest-only mortgage-backed securities	$ (6)	$ (9)

XML

Gains and Losses Recognized in Income from Trading Securities (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Investments Debt And Equity Securities [Table]
Realized gains	[1]	$ 2	$ 1
Gross realized losses on trading securities	[2]	(4)	(3)
Net unrealized gains (losses)	[3]	1	1
Total trading securities gains (losses)		$ (1)	$ (1)

[1] Includes realized gains of $2 and $1 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

[2] Includes realized losses of $4 and $3 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

[3] Includes an immaterial amount of net unrealized gains and losses during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

XML

Gains and Losses Recognized in Income from Trading Securities (Parenthetical) (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Schedule Of Trading Securities And Other Trading Assets [Line Items]
Realized gains	[1]	$ 2	$ 1
Realized losses	[2]	4	3
Net unrealized gains (losses)	[3]	1	1
Corporate Banking Revenue and Investment Advisory Revenue
Schedule Of Trading Securities And Other Trading Assets [Line Items]
Realized gains		2	1
Realized losses		$ (4)	$ (3)

[1] Includes realized gains of $2 and $1 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

[2] Includes realized losses of $4 and $3 during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

[3] Includes an immaterial amount of net unrealized gains and losses during the three months ended March 31, 2016 and 2015, respectively, recorded in corporate banking revenue and investment advisory revenue in the Condensed Consolidated Statements of Income.

XML

Securities - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Investment Holdings [Line Items]
Trading securities	$ 405		$ 386
Securities with a fair value, pledged as collateral	10,400		$ 11,000
Available-for-sale Securities
Investment Holdings [Line Items]
OTTI	$ 3	$ 1
Percent of unrealized losses represented by non-rated securities	2.00%		1.00%
Available-for-sale Securities | Equity Securities
Investment Holdings [Line Items]
OTTI	$ 1
Available-for-sale Securities | Debt Securities
Investment Holdings [Line Items]
OTTI	$ 2	$ 1

XML

Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities (Detail) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Debt securities:
Less than 1 year	[1]	$ 835
1-5 years	[1]	9,003
5-10 years	[1]	16,480
Over 10 years	[1]	1,817
Equity securities		703
Available-for-sale and other securities, Amortized Cost		28,838	$ 28,678
Debt securities:
Less than 1 year	[1]	857
1-5 years	[1]	9,329
5-10 years	[1]	17,146
Over 10 years	[1]	1,855
Equity securities		704
Available-for-sale and other securities, fair value	[2]	29,891	29,044
Debt securities:
Less than 1 year	[1]	37
1-5 years	[1]	12
5-10 years	[1]	13
Over 10 years	[1]	2
Held-to-maturity securities, amortized cost	[3]	64	70
Debt securities:
Under 1 year	[1]	37
1-5 years	[1]	12
5-10 years	[1]	13
Over 10 years	[1]	2
Held-to-maturity securities, fair value		$ 64	$ 70

[1] Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties.

[2] Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively.

[3] Fair value of $64 and $70 at March 31, 2016 and December 31, 2015, respectively.

XML

Fair Value and Gross Unrealized Losses on Available-for-Sale Securities (Detail) - USD ($) $ in Millions	Mar. 31, 2016		Dec. 31, 2015
Investments, Unrealized Loss Position [Line Items]
Less than 12 months Fair Value	$ 767		$ 8,248
Less than 12 months Unrealized Losses	(10)		(90)
12 months or more Fair Value	297		263
12 months or more Unrealized Losses	(12)		(11)
Total Fair Value	1,064		8,511
Total Unrealized Losses	(22)		(101)
Agency mortgage-backed securities | Residential mortgage backed securities
Investments, Unrealized Loss Position [Line Items]
Less than 12 months Fair Value	268		2,903
Less than 12 months Unrealized Losses	(2)		(13)
Total Fair Value	268		2,903
Total Unrealized Losses	(2)	[1]	(13)	[2]
Agency mortgage-backed securities | Commercial mortgage backed securities
Investments, Unrealized Loss Position [Line Items]
Less than 12 months Fair Value			3,111
Less than 12 months Unrealized Losses			(33)
Total Fair Value			3,111
Total Unrealized Losses			(33)
Non-agency mortgage-backed securities | Commercial mortgage backed securities
Investments, Unrealized Loss Position [Line Items]
Less than 12 months Fair Value			1,610
Less than 12 months Unrealized Losses			(32)
Total Fair Value			1,610
Total Unrealized Losses			(32)
Asset-backed securities and other debt securities
Investments, Unrealized Loss Position [Line Items]
Less than 12 months Fair Value	499		623
Less than 12 months Unrealized Losses	(8)		(11)
12 months or more Fair Value	266		226
12 months or more Unrealized Losses	(11)		(10)
Total Fair Value	765		849
Total Unrealized Losses	(19)		(21)
Equity securities
Investments, Unrealized Loss Position [Line Items]
Less than 12 months Fair Value			1
Less than 12 months Unrealized Losses			(1)
12 months or more Fair Value	31		37
12 months or more Unrealized Losses	(1)		(1)
Total Fair Value	31		38
Total Unrealized Losses	$ (1)	[3]	$ (2)	[4]

[1] Includes interest-only mortgage-backed securities of $41 as of March 31, 2016 recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income.

[2] Includes interest-only mortgage-backed securities of $50 as of December 31, 2015, recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income.

[3] Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355 and $1, respectively, at March 31, 2016, that are carried at cost, and certain mutual fund and equity security holdings.

[4] Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355, and $1, respectively, at December 31, 2015, that are carried at cost, and certain mutual fund and equity security holdings

XML

Loans and Leases Classified by Primary Purpose (Detail) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Loans held for sale:
Loans held for sale	[1]	$ 803	$ 903
Portfolio loans and leases:
Commercial and industrial loans		43,433	42,131
Commercial mortgage loans		6,864	6,957
Commercial construction loans		3,428	3,214
Commercial leases		3,956	3,854
Total commercial loans and leases		57,681	56,156
Residential mortgage loans		13,895	13,716
Home equity		8,112	8,301
Automobile loans		11,128	11,493
Credit card		2,138	2,259
Other consumer loans and leases		651	657
Total consumer loans and leases		35,924	36,426
Portfolio loans and leases	[2],[3]	93,605	92,582
Commercial Portfolio Segment | Commercial and industrial loans
Loans held for sale:
Loans held for sale		8	20
Commercial Portfolio Segment | Commercial mortgage loans
Loans held for sale:
Loans held for sale		10	34
Residential Mortgage Loans | Residential mortgage loans
Loans held for sale:
Loans held for sale		668	708
Consumer Portfolio Segment | Home equity
Loans held for sale:
Loans held for sale		19	35
Consumer Portfolio Segment | Automobile Loans
Loans held for sale:
Loans held for sale		1	4
Consumer Portfolio Segment | Credit Card
Loans held for sale:
Loans held for sale		$ 97	101
Consumer Portfolio Segment | Other consumer loans and leases
Loans held for sale:
Loans held for sale			$ 1

[1] Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively.

[2] Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

[3] Includes $160 and $167 of residential mortgage loans measured at fair value at March 31, 2016 and December 31, 2015, respectively.

XML

Loans and Leases - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable
Unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments	$ 223	$ 220
Unearned Income	601	624
Loans pledged at the FHLB	12,100	11,900
Loans pledged at the FRB	$ 33,500	$ 33,700

XML

Total Loans And Leases Managed By The Bancorp (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	$ 93,605		$ 92,582
Net Credit Losses	96	$ 91
Commercial and Industrial Loans
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	43,441		42,151
Balance of Loans 90 days or More Past Due	3		7
Net Credit Losses	46	38
Commercial Mortgage Loans
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	6,874		6,991
Net Credit Losses	6	1
Commercial Construction Loans
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	3,428		3,214
Commercial Leases
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	3,956		3,854
Net Credit Losses	2
Residential Mortgage
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	14,563		14,424
Balance of Loans 90 days or More Past Due	44		40
Net Credit Losses	2	6
Home Equity
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	8,131		8,336
Net Credit Losses	8	14
Automobile Loans
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	11,129		11,497
Balance of Loans 90 days or More Past Due	8		10
Net Credit Losses	9	8
Credit Card
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	2,235		2,360
Balance of Loans 90 days or More Past Due	18		18
Net Credit Losses	20	21
Other Consumer Loans and Leases
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	651		658
Net Credit Losses	3	$ 3
Loans Held For Sale
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	803		903
Loans and Leases Managed and Securitized
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Balance	94,408		93,485
Balance of Loans 90 days or More Past Due	$ 73		$ 75

XML

Summary of Transactions in the ALLL by Portfolio segment (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016		Mar. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	$ 1,272	[1]	$ 1,322
Losses charged-off	(116)		(115)
Recoveries of losses previously charged- off	20		24
Provision for loan and lease losses	119		69
Ending Balance	1,295	[1]	1,300
Commercial Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	840	[2]	875
Losses charged-off	(60)		(48)
Recoveries of losses previously charged- off	6		9
Provision for loan and lease losses	81		16
Ending Balance	867	[3]	852
Residential Mortgage Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	100	[2]	104
Losses charged-off	(4)		(9)
Recoveries of losses previously charged- off	2		3
Provision for loan and lease losses			5
Ending Balance	98	[3]	103
Consumer Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	217	[2]	237
Losses charged-off	(52)		(58)
Recoveries of losses previously charged- off	12		12
Provision for loan and lease losses	37		50
Ending Balance	214	[3]	241
Unallocated
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	115	[2]	106
Provision for loan and lease losses	1		(2)
Ending Balance	$ 116	[3]	$ 104

[1] Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

[2] Includes $5 related to leveraged leases at December 31, 2015.

[3] Includes $5 related to leveraged leases at March 31, 2016.

XML

Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Detail) - USD ($) $ in Millions	Mar. 31, 2016		Dec. 31, 2015		Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	$ 216	[1]	$ 235	[2]
Collectively evaluated for impairment	963	[1]	922	[2]
Unallocated	116	[1]	115	[2]
Total allowance for loan and lease losses	1,295	[3]	1,272	[3]	$ 1,300	$ 1,322
Individually evaluated for impairment	2,092	[4]	1,869	[5]
Collectively evaluated for impairment	91,351	[4]	90,544	[5]
Loans acquired with deteriorated credit quality	2	[4]	2	[5]
Total Loans and Leases	93,445	[6]	92,415	[7]
Commercial Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	102	[1],[8]	119	[2],[9]
Collectively evaluated for impairment	765	[1]	721	[2]
Total allowance for loan and lease losses	867	[1]	840	[2]	852	875
Individually evaluated for impairment	1,022	[4],[8]	815	[5],[9]
Collectively evaluated for impairment	56,659	[4]	55,341	[5]
Total Loans and Leases	57,681	[4]	56,156	[5]
Residential Mortgage Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	66	[1]	67	[2]
Collectively evaluated for impairment	32	[1]	33	[2]
Total allowance for loan and lease losses	98	[1]	100	[2]	103	104
Individually evaluated for impairment	655	[4]	630	[5]
Collectively evaluated for impairment	13,078	[4]	12,917	[5]
Loans acquired with deteriorated credit quality	2	[4]	2	[5]
Total Loans and Leases	13,735	[4]	13,549	[5]
Consumer Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	48	[1]	49	[2]
Collectively evaluated for impairment	166	[1]	168	[2]
Total allowance for loan and lease losses	214	[1]	217	[2]	241	237
Individually evaluated for impairment	415	[4]	424	[5]
Collectively evaluated for impairment	21,614	[4]	22,286	[5]
Total Loans and Leases	22,029	[4]	22,710	[5]
Unallocated
Financing Receivable, Allowance for Credit Losses [Line Items]
Unallocated	116	[1]	115	[2]
Total allowance for loan and lease losses	$ 116	[1]	$ 115	[2]	$ 104	$ 106

[1] Includes $5 related to leveraged leases at March 31, 2016.

[2] Includes $5 related to leveraged leases at December 31, 2015.

[3] Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

[4] Excludes $160 of residential mortgage loans measured at fair value, and includes $812 of leveraged leases, net of unearned income at March 31, 2016.

[5] Excludes $167 of residential mortgage loans measured at fair value, and includes $801 of leveraged leases, net of unearned income at December 31, 2015.

[6] Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.

[7] Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.

[8] Includes five restructured loans at March 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $27 and an ALLL of $15.

[9] Includes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $27 and an ALLL of $15.

XML

Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Parenthetical) (Detail) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016 USD ($) number		Dec. 31, 2015 USD ($) number		Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	$ 1,295	[1]	$ 1,272	[1]	$ 1,300	$ 1,322
Portfolio loans and leases	93,445	[2]	92,415	[3]
Recorded Investment	2,065	[4]	1,842	[5]
Variable Interest Entity, Primary Beneficiary
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	27		28
Commercial | Variable Interest Entity, Primary Beneficiary
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	$ 15		$ 15
Number of Contracts | number	5		5
Recorded Investment	$ 27		$ 27
Leveraged Leases
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan and lease losses	5		5
Portfolio loans and leases	812		801
Residential Mortgage Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Portfolio loans and leases at fair value	$ 160		$ 167

[1] Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

[2] Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.

[3] Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.

[4] Includes $461, $636 and $362, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $210, $19 and $53, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2016.

[5] Includes $491, $607 and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015.

XML

Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class (Detail) - USD ($) $ in Millions	Mar. 31, 2016		Dec. 31, 2015
Financing Receivable, Modifications [Line Items]
Total loans and leases	$ 93,445	[1]	$ 92,415	[2]
Commercial Portfolio Segment
Financing Receivable, Modifications [Line Items]
Total loans and leases	57,681		56,156
Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Modifications [Line Items]
Total loans and leases	43,433		42,131
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Modifications [Line Items]
Total loans and leases	3,613		3,659
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Financing Receivable, Modifications [Line Items]
Total loans and leases	3,251		3,298
Commercial Portfolio Segment | Commercial construction loans
Financing Receivable, Modifications [Line Items]
Total loans and leases	3,428		3,214
Commercial Portfolio Segment | Commercial Leases
Financing Receivable, Modifications [Line Items]
Total loans and leases	3,956		3,854
Pass | Commercial Portfolio Segment
Financing Receivable, Modifications [Line Items]
Total loans and leases	53,548		52,130
Pass | Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Modifications [Line Items]
Total loans and leases	39,909		38,756
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Modifications [Line Items]
Total loans and leases	3,305		3,344
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Financing Receivable, Modifications [Line Items]
Total loans and leases	3,063		3,105
Pass | Commercial Portfolio Segment | Commercial construction loans
Financing Receivable, Modifications [Line Items]
Total loans and leases	3,423		3,201
Pass | Commercial Portfolio Segment | Commercial Leases
Financing Receivable, Modifications [Line Items]
Total loans and leases	3,848		3,724
Special Mention | Commercial Portfolio Segment
Financing Receivable, Modifications [Line Items]
Total loans and leases	1,781		1,917
Special Mention | Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Modifications [Line Items]
Total loans and leases	1,513		1,633
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Modifications [Line Items]
Total loans and leases	128		124
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Financing Receivable, Modifications [Line Items]
Total loans and leases	65		63
Special Mention | Commercial Portfolio Segment | Commercial construction loans
Financing Receivable, Modifications [Line Items]
Total loans and leases	1		4
Special Mention | Commercial Portfolio Segment | Commercial Leases
Financing Receivable, Modifications [Line Items]
Total loans and leases	74		93
Risk Level, Substandard | Commercial Portfolio Segment
Financing Receivable, Modifications [Line Items]
Total loans and leases	2,325		2,109
Risk Level, Substandard | Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Modifications [Line Items]
Total loans and leases	1,987		1,742
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Modifications [Line Items]
Total loans and leases	177		191
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Financing Receivable, Modifications [Line Items]
Total loans and leases	123		130
Risk Level, Substandard | Commercial Portfolio Segment | Commercial construction loans
Financing Receivable, Modifications [Line Items]
Total loans and leases	4		9
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Leases
Financing Receivable, Modifications [Line Items]
Total loans and leases	34		$ 37
Risk Level, Doubtful | Commercial Portfolio Segment
Financing Receivable, Modifications [Line Items]
Total loans and leases	27
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Modifications [Line Items]
Total loans and leases	24
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Modifications [Line Items]
Total loans and leases	$ 3

[1] Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.

[2] Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.

XML

Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class (Detail) - USD ($) $ in Millions		Mar. 31, 2016		Dec. 31, 2015
Total loans and leases		$ 93,445	[1]	$ 92,415	[2]
Home Equity | Consumer Portfolio Segment
Total loans and leases		8,112		8,301
Automobile Loans | Consumer Portfolio Segment
Total loans and leases		11,128		11,493
Credit Card | Consumer Portfolio Segment
Total loans and leases		2,138		2,259
Other consumer loans and leases | Consumer Portfolio Segment
Total loans and leases		651		657
Performing Financing Receivable
Total loans and leases	[3]	35,606		36,094
Performing Financing Receivable | Residential Mortgage | Residential Mortgage Loans
Total loans and leases	[3]	13,691		13,498
Performing Financing Receivable | Home Equity | Consumer Portfolio Segment
Total loans and leases		8,032		8,222
Performing Financing Receivable | Automobile Loans | Consumer Portfolio Segment
Total loans and leases		11,126		11,491
Performing Financing Receivable | Credit Card | Consumer Portfolio Segment
Total loans and leases		2,106		2,226
Performing Financing Receivable | Other consumer loans and leases | Consumer Portfolio Segment
Total loans and leases		651		657
Nonperforming Financing Receivable
Total loans and leases	[3]	158		165
Nonperforming Financing Receivable | Residential Mortgage | Residential Mortgage Loans
Total loans and leases	[3]	44		51
Nonperforming Financing Receivable | Home Equity | Consumer Portfolio Segment
Total loans and leases		80		79
Nonperforming Financing Receivable | Automobile Loans | Consumer Portfolio Segment
Total loans and leases		2		2
Nonperforming Financing Receivable | Credit Card | Consumer Portfolio Segment
Total loans and leases		$ 32		$ 33

[1] Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.

[2] Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.

[3] Excludes $160 and $167 of loans measured at fair value at March 31, 2016 and December 31, 2015, respectively.

XML

Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Residential Mortgage Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Portfolio loans and leases at fair value	$ 160	$ 167

XML

Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class (Detail) - USD ($) $ in Millions		Mar. 31, 2016		Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		$ 92,817	[1],[2]	$ 91,780	[3],[4]
Total Past Due		628	[1]	635	[3]
Total Loans and Leases		93,445	[1]	92,415	[3]
90-Days past Due and Still Accruing		73	[1]	75	[3]
30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		242	[1],[2]	306	[3],[4]
90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		386	[1],[2]	329	[3],[4]
Commercial Portfolio Segment
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans and Leases		57,681		56,156
Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		43,255	[2]	41,996	[4]
Total Past Due		178		135
Total Loans and Leases		43,433		42,131
90-Days past Due and Still Accruing		3		7
Commercial Portfolio Segment | Commercial and Industrial Loans | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		31	[2]	55	[4]
Commercial Portfolio Segment | Commercial and Industrial Loans | 90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		147	[2]	80	[4]
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		3,580	[2]	3,610	[4]
Total Past Due		33		49
Total Loans and Leases		3,613		3,659
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		6	[2]	15	[4]
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | 90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		27	[2]	34	[4]
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		3,210	[2]	3,262	[4]
Total Past Due		41		36
Total Loans and Leases		3,251		3,298
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		17	[2]	9	[4]
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | 90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		24	[2]	27	[4]
Commercial Portfolio Segment | Commercial Construction Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		3,428	[2]	3,214	[4]
Total Loans and Leases		3,428		3,214
Commercial Portfolio Segment | Commercial Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		3,952	[2]	3,850	[4]
Total Past Due		4		4
Total Loans and Leases		3,956		3,854
Commercial Portfolio Segment | Commercial Leases | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	[4]			3
Commercial Portfolio Segment | Commercial Leases | 90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		4	[2]	1	[4]
Residential Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		13,613	[1],[2],[5]	13,420	[3],[4],[6]
Total Past Due		122	[1],[5]	129	[3],[6]
Total Loans and Leases		13,735	[1],[5]	13,549	[3],[6]
90-Days past Due and Still Accruing		44	[1],[5]	40	[3],[6]
Residential Mortgage | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		32	[1],[2],[5]	37	[3],[4],[6]
Residential Mortgage | 90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		90	[1],[2],[5]	92	[3],[4],[6]
Consumer Portfolio Segment | Home Equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		7,980	[2]	8,158	[4]
Total Past Due		132		143
Total Loans and Leases		8,112		8,301
Consumer Portfolio Segment | Home Equity | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		72	[2]	82	[4]
Consumer Portfolio Segment | Home Equity | 90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		60	[2]	61	[4]
Consumer Portfolio Segment | Automobile Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		11,060	[2]	11,407	[4]
Total Past Due		68		86
Total Loans and Leases		11,128		11,493
90-Days past Due and Still Accruing		8		10
Consumer Portfolio Segment | Automobile Loans | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		58	[2]	75	[4]
Consumer Portfolio Segment | Automobile Loans | 90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		10	[2]	11	[4]
Consumer Portfolio Segment | Credit Card
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		2,089	[2]	2,207	[4]
Total Past Due		49		52
Total Loans and Leases		2,138		2,259
90-Days past Due and Still Accruing		18		18
Consumer Portfolio Segment | Credit Card | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		25	[2]	29	[4]
Consumer Portfolio Segment | Credit Card | 90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		24	[2]	23	[4]
Consumer Portfolio Segment | Other Consumer Loans and Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans and Leases		650	[2]	656	[4]
Total Past Due		1		1
Total Loans and Leases		651		657
Consumer Portfolio Segment | Other Consumer Loans and Leases | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		$ 1	[2]	$ 1	[4]

[1] Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.

[2] Includes accrual and nonaccrual loans and leases.

[3] Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.

[4] Includes accrual and nonaccrual loans and leases.

[5] Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of March 31, 2016, $95 of these loans were 30-89 days past due and $315 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2016 due to claim denials and curtailments associated with these insured or guaranteed loans.

[6] Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2015, $102 of these loans were 30-89 days past due and $335 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans.

XML

Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016		Mar. 31, 2015	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 628	[1]		$ 635	[2]
30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	242	[1],[3]		306	[2],[4]
90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	386	[1],[3]		329	[2],[4]
Residential Mortgage Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Portfolio loans and leases at fair value	160			167
Residential Mortgage Loans | Federal Housing Administration Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Losses Due To Claim Denials And Curtailments	2		$ 2
Residential Mortgage Loans | Federal Housing Administration Loan | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	95			102
Residential Mortgage Loans | Federal Housing Administration Loan | 90 Days and Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 315			$ 335

[1] Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.

[2] Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.

[3] Includes accrual and nonaccrual loans and leases.

[4] Includes accrual and nonaccrual loans and leases.

XML

Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class (Detail) - USD ($) $ in Millions	Mar. 31, 2016		Dec. 31, 2015
Impaired Financing Receivable Unpaid Principal Balance
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance	$ 1,350		$ 1,276
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance	905		753
Unpaid Principal Balance	2,255		2,029
Impaired Financing Receivable Recorded Investment Abstract
Impaired Financing Receivable With Related Allowance Recorded Investment	1,247		1,184
Impaired Financing Receivable With No Related Allowance Recorded Investment	818		658
Recorded Investment	2,065	[1]	1,842	[2]
Allowance	201		220
Commercial Portfolio Segment | Commercial and Industrial Loans
Impaired Financing Receivable Unpaid Principal Balance
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance	516		412
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance	372		228
Impaired Financing Receivable Recorded Investment Abstract
Impaired Financing Receivable With Related Allowance Recorded Investment	441		346
Impaired Financing Receivable With No Related Allowance Recorded Investment	320		182
Allowance	81		84
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Impaired Financing Receivable Unpaid Principal Balance
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance	26	[3]	28	[4]
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance	58		54
Impaired Financing Receivable Recorded Investment Abstract
Impaired Financing Receivable With Related Allowance Recorded Investment	16	[3]	21	[4]
Impaired Financing Receivable With No Related Allowance Recorded Investment	55		51
Allowance	3	[3]	5	[4]
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Impaired Financing Receivable Unpaid Principal Balance
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance	57		75
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance	115		126
Impaired Financing Receivable Recorded Investment Abstract
Impaired Financing Receivable With Related Allowance Recorded Investment	53		64
Impaired Financing Receivable With No Related Allowance Recorded Investment	101		111
Allowance	2		12
Commercial Portfolio Segment | Commercial Construction Loans
Impaired Financing Receivable Unpaid Principal Balance
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance			4
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance	4		9
Impaired Financing Receivable Recorded Investment Abstract
Impaired Financing Receivable With Related Allowance Recorded Investment			4
Impaired Financing Receivable With No Related Allowance Recorded Investment	4		5
Allowance			2
Commercial Portfolio Segment | Commercial Leases
Impaired Financing Receivable Unpaid Principal Balance
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance	4		3
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance	3		1
Impaired Financing Receivable Recorded Investment Abstract
Impaired Financing Receivable With Related Allowance Recorded Investment	2		3
Impaired Financing Receivable With No Related Allowance Recorded Investment	3		1
Allowance	1		1
Residential Mortgage Loans
Impaired Financing Receivable Unpaid Principal Balance
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance	453		450
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance	230		210
Impaired Financing Receivable Recorded Investment Abstract
Impaired Financing Receivable With Related Allowance Recorded Investment	440		444
Impaired Financing Receivable With No Related Allowance Recorded Investment	215		186
Allowance	66		67
Consumer Portfolio Segment | Home Equity
Impaired Financing Receivable Unpaid Principal Balance
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance	220		226
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance	120		122
Impaired Financing Receivable Recorded Investment Abstract
Impaired Financing Receivable With Related Allowance Recorded Investment	220		225
Impaired Financing Receivable With No Related Allowance Recorded Investment	117		119
Allowance	32		32
Consumer Portfolio Segment | Automobile Loans
Impaired Financing Receivable Unpaid Principal Balance
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance	16		17
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance	3		3
Impaired Financing Receivable Recorded Investment Abstract
Impaired Financing Receivable With Related Allowance Recorded Investment	17		16
Impaired Financing Receivable With No Related Allowance Recorded Investment	3		3
Allowance	2		2
Consumer Portfolio Segment | Credit Card
Impaired Financing Receivable Unpaid Principal Balance
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance	58		61
Impaired Financing Receivable Recorded Investment Abstract
Impaired Financing Receivable With Related Allowance Recorded Investment	58		61
Allowance	$ 14		$ 15

[1] Includes $461, $636 and $362, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $210, $19 and $53, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2016.

[2] Includes $491, $607 and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015.

[3] Excludes five restructured loans at March 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

[4] Excludes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

XML

Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class (Parenthetical) (Detail) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016 USD ($) number		Dec. 31, 2015 USD ($) number
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 2,255		$ 2,029
Recorded Investment	2,065	[1]	1,842	[2]
Allowance	201		220
Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Impaired [Line Items]
Allowance	81		84
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Impaired [Line Items]
Allowance	3	[3]	5	[4]
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	27		27
Recorded Investment	27		27
Allowance	$ 15		$ 15
Number of Contracts | number	5		5
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Financing Receivable, Impaired [Line Items]
Allowance	$ 2		$ 12
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status
Financing Receivable, Impaired [Line Items]
Recorded Investment	461		491
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status
Financing Receivable, Impaired [Line Items]
Recorded Investment	210		203
Residential Mortgage Loans
Financing Receivable, Impaired [Line Items]
Allowance	66		67
Residential Mortgage Loans | Troubled Debt Restructuring On Accrual Status
Financing Receivable, Impaired [Line Items]
Recorded Investment	636		607
Residential Mortgage Loans | Troubled Debt Restructuring On Nonaccrual Status
Financing Receivable, Impaired [Line Items]
Recorded Investment	19		23
Consumer Portfolio Segment | Troubled Debt Restructuring On Accrual Status
Financing Receivable, Impaired [Line Items]
Recorded Investment	362		372
Consumer Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 53		$ 52

[1] Includes $461, $636 and $362, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $210, $19 and $53, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2016.

[2] Includes $491, $607 and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015.

[3] Excludes five restructured loans at March 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

[4] Excludes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

XML

Summary of Average Impaired Loans and Leases and Interest Income by Class (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		$ 1,954	$ 2,208
Interest Income Recognized		13	19
Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		645	742
Interest Income Recognized		2	5
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	[1]	71	112
Interest Income Recognized	[1]		1
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		165	262
Interest Income Recognized		1	2
Commercial Portfolio Segment | Commercial Construction Loans
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		7	62
Commercial Portfolio Segment | Commercial Leases
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		5	5
Residential Mortgage Loans
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		642	552
Interest Income Recognized		6	6
Consumer Portfolio Segment | Home Equity
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		340	375
Interest Income Recognized		3	3
Consumer Portfolio Segment | Automobile Loans
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		19	23
Consumer Portfolio Segment | Credit Card
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		60	75
Interest Income Recognized		$ 1	$ 2

[1] Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $27 and $28 at March 31, 2016 and March 31, 2015, respectively, and an immaterial amount of interest income recognized for both the three months ended March 31, 2016 and March 31, 2015.

XML

Summary of Average Impaired Loans and Leases and Interest Income by Class (Parenthetical) (Detail) $ in Millions		3 Months Ended		12 Months Ended
		Mar. 31, 2016 USD ($) number	Mar. 31, 2015 USD ($)	Dec. 31, 2015 number
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		$ 1,954	$ 2,208
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	[1]	71	112
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		$ 27	$ 28
Number of Contracts | number		5		5

[1] Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $27 and $28 at March 31, 2016 and March 31, 2015, respectively, and an immaterial amount of interest income recognized for both the three months ended March 31, 2016 and March 31, 2015.

XML

Summary of the Bancorp's Nonperforming Loans and Leases by Class (Detail) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases	[1],[2]	$ 701	$ 506
OREO and other repossessed property		124	141
Nonperforming Portfolio Assets	[1],[2]	825	647
Commercial Portfolio Segment
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases		543	341
Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases		460	259
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases	[3]	41	46
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases		37	35
Commercial Portfolio Segment | Commercial Leases
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases		5	1
Residential Mortgage Loans
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases		44	51
Consumer Portfolio Segment
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases		114	114
Consumer Portfolio Segment | Home Equity
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases		80	79
Consumer Portfolio Segment | Automobile Loans
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases		2	2
Consumer Portfolio Segment | Credit Card
Financing Receivable, Modifications [Line Items]
Nonaccrual portfolio loans and leases		$ 32	$ 33

[1] Excludes $5 and $12 of nonaccrual loans held for sale at March 31, 2016 and December 31, 2015, respectively.

[2] Includes $5 and $6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2016 and December 31, 2015, respectively, and $1 and $2 of restructured nonaccrual government insured commercial loans at March 31, 2016 and December 31, 2015, respectively.

[3] Excludes $20 of restructured nonaccrual loans at both March 31, 2016 and December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party.

XML

Summary of the Bancorp's Nonperforming Loans and Leases by Class (Parenthetical) (Detail) - USD ($) $ in Millions		Mar. 31, 2016		Dec. 31, 2015
Financing Receivable, Modifications [Line Items]
Loans held for sale	[1]	$ 803		$ 903
OREO and other repossessed property		124		141
Portfolio loans and leases		93,445	[2]	92,415	[3]
Commercial Portfolio Segment
Financing Receivable, Modifications [Line Items]
Portfolio loans and leases		57,681		56,156
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Modifications [Line Items]
Portfolio loans and leases		3,613		3,659
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary
Financing Receivable, Modifications [Line Items]
Restructured nonaccrual loans and leases		20		20
Nonperforming Financing Receivable
Financing Receivable, Modifications [Line Items]
Loans held for sale		5		12
Portfolio loans and leases	[4]	158		165
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment
Financing Receivable, Modifications [Line Items]
Restructured nonaccrual loans and leases		1		2
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | Small Business Administration
Financing Receivable, Modifications [Line Items]
Portfolio loans and leases		$ 5		$ 6

[1] Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively.

[2] Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.

[3] Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.

[4] Excludes $160 and $167 of loans measured at fair value at March 31, 2016 and December 31, 2015, respectively.

XML

Credit Quality Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Troubled Debt Restructuring
Line of credit commitments for modified troubled debt restructurings	$ 46	$ 39
Letter of credit commitments for modified troubled debt restructurings	22	23
Mortgage Loans In Process Of Foreclosure Amount	$ 290	$ 303

XML

Summary of Loans Modified in a TDR (Detail) - Quarterly $ in Millions		3 Months Ended
		Mar. 31, 2016 USD ($)		Mar. 31, 2015 USD ($)
Financing Receivable, Modifications [Line Items]
Number of Loans Modified in a TDR During the Period		3,010	[1],[2]	4,208	[3],[4]
Recorded Investment in Loans Modified in a TDR During the Period		$ 116	[1]	$ 96	[3]
Increase (Decrease) to ALLL Upon Modification	[3]			(3)
Charge-offs Recognized Upon Modification		$ 1	[1]	$ 3	[3]
Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Modifications [Line Items]
Number of Loans Modified in a TDR During the Period		24	[1],[2]	21	[3],[4]
Recorded Investment in Loans Modified in a TDR During the Period		$ 56	[1]	$ 18	[3]
Increase (Decrease) to ALLL Upon Modification		$ (2)	[1]	(7)	[3]
Charge-offs Recognized Upon Modification	[3]			$ 3
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied
Financing Receivable, Modifications [Line Items]
Number of Loans Modified in a TDR During the Period		7	[1],[2]	7	[3],[4]
Recorded Investment in Loans Modified in a TDR During the Period		$ 6	[1]	$ 8	[3]
Increase (Decrease) to ALLL Upon Modification		$ (2)	[1]	$ (1)	[3]
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Financing Receivable, Modifications [Line Items]
Number of Loans Modified in a TDR During the Period		2	[1],[2]	6	[3],[4]
Recorded Investment in Loans Modified in a TDR During the Period	[3]			$ 3
Residential Mortgage Loans
Financing Receivable, Modifications [Line Items]
Number of Loans Modified in a TDR During the Period		243	[1],[2]	300	[3],[4]
Recorded Investment in Loans Modified in a TDR During the Period		$ 36	[1]	$ 42	[3]
Increase (Decrease) to ALLL Upon Modification		$ 2	[1]	$ 1	[3]
Consumer Portfolio Segment | Home Equity
Financing Receivable, Modifications [Line Items]
Number of Loans Modified in a TDR During the Period		64	[1],[2]	76	[3],[4]
Recorded Investment in Loans Modified in a TDR During the Period		$ 5	[1]	$ 4	[3]
Consumer Portfolio Segment | Automobile Loans
Financing Receivable, Modifications [Line Items]
Number of Loans Modified in a TDR During the Period		78	[1],[2]	131	[3],[4]
Recorded Investment in Loans Modified in a TDR During the Period		$ 1	[1]	$ 2	[3]
Consumer Portfolio Segment | Credit Card
Financing Receivable, Modifications [Line Items]
Number of Loans Modified in a TDR During the Period		2,592	[1],[2]	3,667	[3],[4]
Recorded Investment in Loans Modified in a TDR During the Period		$ 12	[1]	$ 19	[3]
Increase (Decrease) to ALLL Upon Modification		2	[1]	$ 4	[3]
Charge-offs Recognized Upon Modification	[1]	$ 1

[1] Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.

[2] Represents number of loans post-modification and excludes loans previously modified in a TDR.

[3] Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.

[4] Represents number of loans post-modification and excludes loans previously modified in a TDR.

XML

Summary of Subsequent Defaults (Detail) - Quarter to date $ in Millions		3 Months Ended
		Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)
Financing Receivable, Modifications [Line Items]
Number of contracts	[1]	484	637
Recorded Investment in Loans Modified in a TDR During the Period	[1]	$ 10	$ 8
Commercial Portfolio Segment | Commercial and Industrial Loans
Financing Receivable, Modifications [Line Items]
Number of contracts	[1]	1
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied
Financing Receivable, Modifications [Line Items]
Number of contracts	[1]	1
Residential Mortgage Loans
Financing Receivable, Modifications [Line Items]
Number of contracts	[1]	53	40
Recorded Investment in Loans Modified in a TDR During the Period	[1]	$ 7	$ 5
Consumer Portfolio Segment | Home Equity
Financing Receivable, Modifications [Line Items]
Number of contracts	[1]	6	5
Recorded Investment in Loans Modified in a TDR During the Period	[1]	$ 1
Consumer Portfolio Segment | Automobile Loans
Financing Receivable, Modifications [Line Items]
Number of contracts	[1]		4
Consumer Portfolio Segment | Credit Card
Financing Receivable, Modifications [Line Items]
Number of contracts	[1]	423	588
Recorded Investment in Loans Modified in a TDR During the Period	[1]	$ 2	$ 3

[1] Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.

XML

Bank Premises and Equipment (Detail) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Bank Premises and Equipment
Land and improvements	[1]	$ 682	$ 685
Buildings		1,695	1,755
Equipment		1,715	1,696
Leasehold improvements		403	403
Construction in progress		86	85
Land and improvements held for sale		41	55
Buildings held for sale		23	20
Equipment held for sale		2	3
Leasehold improvements held for sale		2	3
Accumulated depreciation and amortization		(2,464)	(2,466)
Total bank premises and equipment	[2]	$ 2,185	$ 2,239

[1] At March 31, 2016 and December 31, 2015, land and improvements included $101 and $102, respectively, associated with parcels of undeveloped land intended for future branch expansion.

[2] Includes $68 and $81 of bank premises and equipment held for sale at March 31, 2016 and December 31, 2015, respectively. Refer to Note 7.

XML

Bank Premises and Equipment (Parenthetical) (Detail) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Bank Premises And Equipment [Line Items]
Land and improvements	[1]	$ 682	$ 685
Branches and undeveloped parcels of land
Bank Premises And Equipment [Line Items]
Land and improvements		$ 101	$ 102

[1] At March 31, 2016 and December 31, 2015, land and improvements included $101 and $102, respectively, associated with parcels of undeveloped land intended for future branch expansion.

XML

Bank Premises and Equipment - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)
Bank Premises And Equipment [Line Items]
Gain on Branch Consolidation and Sales Plan	$ 8
Branch Banking
Bank Premises And Equipment [Line Items]
Bank premises impairment	2	$ 4
St. Louis MSA to Great Southern Bank
Bank Premises And Equipment [Line Items]
Loans Sold	158
Deposits Sold	228
Premises And Equipment Sold	18
Gain on Branch Consolidation and Sales Plan	$ 8
Branch Consolidation and Sales Plan | Disposal group classified as held for sale
Bank Premises And Equipment [Line Items]
Operating Branch Locations	60
Parcels Of Undeveloped Land	23

XML

Assets and Liabilities Classified as HFS (Detail) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Loans held for sale:
Loans held for sale	[1]	$ 803	$ 903
Long Lived Assets Held For Sale
Land and improvements held for sale		41	55
Buildings held for sale		23	20
Equipment Held For Sale		2	3
Leasehold Improvements Held For Sale		2	3
Deposits Held For Sale
Deposits held for sale		331	628
Branch Consolidation and Sales Plan
Deposits Held For Sale
Total Liabilities Held For Sale	[2]	331
Commercial Portfolio Segment | Commercial mortgage loans
Loans held for sale:
Loans held for sale		10	34
Residential Mortgage Loans | Residential mortgage loans
Loans held for sale:
Loans held for sale		668	708
Consumer Portfolio Segment | Home Equity
Loans held for sale:
Loans held for sale		19	35
Consumer Portfolio Segment | Automobile Loans
Loans held for sale:
Loans held for sale		1	4
Consumer Portfolio Segment | Other consumer loans and leases
Loans held for sale:
Loans held for sale			$ 1
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Branch Consolidation and Sales Plan
Long Lived Assets Held For Sale
Total Assets Held For Sale	[2]	143
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Branch Consolidation and Sales Plan
Loans held for sale:
Loans held for sale	[2],[3]	101
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Commercial Portfolio Segment | Commercial and Industrial Loans | Branch Consolidation and Sales Plan
Loans held for sale:
Loans held for sale	[2]	8
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Commercial Portfolio Segment | Commercial mortgage loans | Branch Consolidation and Sales Plan
Loans held for sale:
Loans held for sale	[2]	5
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Residential Mortgage Loans | Residential mortgage loans | Branch Consolidation and Sales Plan
Loans held for sale:
Loans held for sale	[2]	68
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Consumer Portfolio Segment | Home Equity | Branch Consolidation and Sales Plan
Loans held for sale:
Loans held for sale	[2]	19
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Loans Held For Sale | Consumer Portfolio Segment | Automobile Loans | Branch Consolidation and Sales Plan
Loans held for sale:
Loans held for sale	[2]	1
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Bank Premises And Equipment | Branch Consolidation and Sales Plan
Long Lived Assets Held For Sale
Land and improvements held for sale	[2],[4]	28
Buildings held for sale	[2],[4]	10
Equipment Held For Sale	[2],[4]	2
Leasehold Improvements Held For Sale	[2],[4]	2
Total bank premises and equipment held for sale	[2],[4]	42
Disposal group classified as held for sale | Branch Banking, Consumer Lending and Investment Advisors | Interest Bearing and Noninterest Bearing Deposits | Branch Consolidation and Sales Plan
Deposits Held For Sale
Noninterest Bearing Deposits Held For Sale	[2],[5]	51
Interest Bearing Deposits Held For Sale	[2],[5]	280
Deposits held for sale	[2],[5]	$ 331

[1] Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively.

[2] Included in the Branch Banking, Consumer Lending and Investment Advisors business segments.

[3] Included in loans held for sale in the Condensed Consolidated Balance Sheets.

[4] Included in bank premises and equipment in the Condensed Consolidated Balance Sheets.

[5] Included in noninterest-bearing deposits and interest-bearing deposits in the Condensed Consolidated Balance Sheets.

XML

Operating Lease Equipment - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2015 USD ($)
Bank Premises And Equipment [Line Items]
Other Asset Impairment Charges	$ (30)
Operating lease equipment
Bank Premises And Equipment [Line Items]
Other Asset Impairment Charges	$ 30

XML

Changes in the Net Carrying Amount of Goodwill by Reporting Segment (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Goodwill Roll Forward
Net carrying value, beginning of period:	$ 2,416	$ 2,416
Net carrying value, end of period:	$ 2,416	$ 2,416

XML

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Intangible Assets by Major Class
Estimated weighted-average life (in years)	4 years 2 months 12 days
Amortization of Intangible Assets		$ 1

XML

Intangible Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 66	$ 67
Accumulated Amortization	(55)	(55)
Net Carrying Amount	11	12
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	34	34
Accumulated Amortization	(26)	(26)
Net Carrying Amount	8	8
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	32	33
Accumulated Amortization	(29)	(29)
Net Carrying Amount	$ 3	$ 4

XML

Estimated Amortization Expense Other Intangible Assets (Detail) - Other Intangible Assets $ in Millions	Mar. 31, 2016 USD ($)
Finite-Lived Intangible Assets
Remainder of 2016	$ 1
2017	2
2018	2
2019	1
2020	$ 1

XML

Classifications of Consolidated VIE Assets, Liabilities and Noncontrolling Interest Included in the Bancorp's Consolidated Balance Sheets (Detail) - USD ($) $ in Millions		Mar. 31, 2016		Dec. 31, 2015		Mar. 31, 2015	Dec. 31, 2014
Assets
Cash and due from banks		$ 2,298	[1]	$ 2,540	[1]	$ 2,920	$ 3,091
Commercial mortgage loans		6,864		6,957
Automobile loans		11,128		11,493
ALLL		(1,295)	[1]	(1,272)	[1]	$ (1,300)	$ (1,322)
Other assets	[1],[2]	8,846		7,965
Liabilities
Other liabilities	[1]	2,627		2,341
Long-term debt	[1],[2]	15,305		15,810
Noncontrolling interests		32		31
Variable Interest Entity, Primary Beneficiary
Assets
Cash and due from banks		147		152
Commercial mortgage loans		47		47
Automobile loans		2,131		2,490
ALLL		(27)		(28)
Other assets		11		14
Total Assets		2,309		2,675
Liabilities
Other liabilities		4		3
Long-term debt		2,102		2,487
Total liabilities		2,106		2,490
Noncontrolling interests		32		31
Variable Interest Entity, Primary Beneficiary | Automobile Loans
Assets
Cash and due from banks		146		151
Automobile loans		2,131		2,490
ALLL		(10)		(11)
Other assets		10		14
Total Assets		2,277		2,644
Liabilities
Other liabilities		4		3
Long-term debt		2,102		2,487
Total liabilities		2,106		2,490
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments
Assets
Cash and due from banks		1		1
Commercial mortgage loans		47		47
ALLL		(17)		(17)
Other assets		1
Total Assets		32		31
Liabilities
Noncontrolling interests		$ 32		$ 31

[1] Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

[2] Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3.

XML

Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Variable Interest Entity, Primary Beneficiary | Automobile Loans
Variable Interest Entity
Carry Value Of Loans Leases Or Lines Of Credit Securitized			$ 750	$ 3,800
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments
Variable Interest Entity
Maximum Exposure	$ 28		27
Variable Interest Entity, Not Primary Beneficiary | Loans Provided to VIEs
Variable Interest Entity
Unfunded commitment amounts	1,000		969
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments
Variable Interest Entity
Maximum Exposure	1,410		1,455
Bancorp's Investment in Affordable Housing Tax Credits	1,410		1,455
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | Qualified Affordable Housing Tax Credits
Variable Interest Entity
Bancorp's Investment in Affordable Housing Tax Credits	1,300		1,300
Unfunded commitments	$ 319		356
Unfunded commitments expected funding date	2033
Variable Interest Entity, Not Primary Beneficiary | Private Equity Investment Funds
Variable Interest Entity
Maximum Exposure	$ 270		271
Bancorp's Investment in Affordable Housing Tax Credits	212		211
Unfunded commitment amounts	58		$ 60
Capital Contribution To Private Equity Funds	$ 2	$ 10

XML

Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Fifth Third Community Development Corporation Investments
Variable Interest Entity
Total Assets	$ 1,410	$ 1,455
Total Liabilities	329	367
Maximum Exposure	1,410	1,455
Private Equity Investment Funds
Variable Interest Entity
Total Assets	212	211
Maximum Exposure	270	271
Loans Provided to VIEs
Variable Interest Entity
Total Assets	1,842	1,630
Maximum Exposure	$ 2,858	$ 2,599

XML

Investments in Qualified Affordable Housing Tax Credits (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Other noninterest expense
Schedule of Equity Method Investments
Pre-tax investment and impairment losses	[1]	$ 36	$ 34
Applicable income tax expense
Schedule of Equity Method Investments
Tax credits and other benefits		$ (55)	$ (52)

[1] The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during three months ended March 31, 2016 and 2015.

XML

Activity Related to Mortgage Banking Net Revenue (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale
Residential mortgage loan sales	[1]	$ 1,114	$ 1,001	[2]
Origination fees and gains on loan sales		42	44
Gross Mortgage Servicing Fees		$ 52	$ 59

[1] Represents the unpaid principal balance at the time of the sale.

[2] Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015.

XML

Activity Related to Mortgage Banking Net Revenue (Parenthetical) (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Mortgage Loans On Real Estate
Residential mortgage loan sales	[1]	$ 1,114	$ 1,001	[2]
Residential mortgage loans | Troubled Debt Restructuring
Mortgage Loans On Real Estate
Residential mortgage loan sales			$ 568

[1] Represents the unpaid principal balance at the time of the sale.

[2] Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015.

XML

Changes in the Servicing Assets (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Servicing Assets at Fair Value
Carrying amount before valuation allowance as of the beginning of the period	$ 1,204	$ 1,392
Servicing rights that result from the transfer of residential mortgage loans	12	13
Amortization	(27)	(34)
Carrying amount before valuation allowance	1,189	1,371
Valuation allowance for servicing rights:
Beginning balance	(419)	(534)
(Provision for) recovery of MSR impairment	(85)	(48)
Ending balance	(504)	(582)
Carrying amount as of the end of the period	$ 685	$ 789	$ 785

XML

Estimated Amortization Expense Mortgage Servicing Rights (Detail) - Mortgage Servicing Rights $ in Millions	Mar. 31, 2016 USD ($)
Finite-Lived Intangible Assets
Remainder of 2016	$ 90
2017	109
2018	98
2019	89
2020	$ 80

XML

Fair Value of the Servicing Rights (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Fixed Rate Residential Mortgage Loans
Servicing Assets at Fair Value
Fair value at beginning of period	$ 757	$ 759	$ 823
Fair value at end of period	660	757	759
Adjustable Rate Residential Mortgage Loans
Servicing Assets at Fair Value
Fair value at beginning of period	27	29	33
Fair value at end of period	25	27	29
Fixed Rate Automobile Loans
Servicing Assets at Fair Value
Fair value at beginning of period	$ 1	1	2
Fair value at end of period		$ 1	$ 1

XML

Activity Related to the MSR Portfolio (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Servicing Assets at Fair Value
Recovery of (provision for) MSR impairment (Mortgage banking net revenue)	$ (85)	$ (48)
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue
Servicing Assets at Fair Value
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue)	$ 96	$ 65

XML

Servicing Assets and Residual Interests Economic Assumptions (Detail)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fixed Rate Residential Mortgage Loans
Servicing Assets at Amortized Value
Weighted- Average Life (in years)	6 years 3 months 18 days	6 years 2 months 12 days
Prepayment Speed (annual)	12.60%	12.60%
OAS spread (bps)	539	900
Adjustable Rate Residential Mortgage Loans
Servicing Assets at Amortized Value
Weighted- Average Life (in years)	3 years	3 years 7 months 6 days
Prepayment Speed (annual)	27.50%	23.40%
OAS spread (bps)	681	1,180

XML

Sales of Receivables and Servicing Rights - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015		Dec. 31, 2015
Servicing Rights at Fair Value
Residential mortgage loan sales	[1]	$ 1,114	$ 1,001	[2]
Sevicing of residential mortgage loans for other investors		57,800			$ 59,000
Amortization		$ (27)	(34)
Residential Mortgage Loans | Troubled Debt Restructuring
Servicing Rights at Fair Value
Gain on sale of HFS loans			$ 37

[1] Represents the unpaid principal balance at the time of the sale.

[2] Excludes $568 of HFS residential mortgage loans previously modified in a TDR that were sold during the first quarter of 2015.

XML

Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)	[1]
Fixed Rate Residential Mortgage Loans
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair Value	$ 660
Weighted- Average Life (in years)	5 years 2 months 12 days
Prepayment Speed (annual)	14.10%
Impact of Adverse Change on Fair Value 10%	$ (33)
Impact of Adverse Change on Fair Value 20%	(63)
Impact of Adverse Change on Fair Value 50%	$ (138)
OAS spread (bps)	603
Impact of Adverse Change on Fair Value 10%	$ (15)
Impact of Adverse Change on Fair Value 20%	(29)
Adjustable Rate Residential Mortgage Loans
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair Value	$ 25
Weighted- Average Life (in years)	2 years 10 months 24 days
Prepayment Speed (annual)	27.80%
Impact of Adverse Change on Fair Value 10%	$ (2)
Impact of Adverse Change on Fair Value 20%	(3)
Impact of Adverse Change on Fair Value 50%	$ (7)
OAS spread (bps)	713
Impact of Adverse Change on Fair Value 20%	$ (1)

[1] The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial.

XML

Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2009
Derivative
Valuation adjustments related to the credit risk associated with counterparties of customer accomodation derivative contracts	$ 13	$ 9
Maximum length of time hedged in cash flow hedge	3 years 9 months
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants			51.00%
Credit Risk
Derivative
Credit Risk Derivatives Average Remaining Life	3 years 4 months 24 days
Interest Rate Contract
Derivative
Fair value of risk participation agreements	$ 4	3
Interest Rate Contract | Cash Flow Hedging
Derivative
Deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income	61	22
Net deferred gains, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next twelve months	14
Interest Rate Contract | Lender Concentration Risk
Derivative
Notional amount of the risk participation agreements	2,344	1,664
Total collateral
Derivative
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	858	821
Derivative Liability, Fair Value, Amount Offset Against Collateral	$ 544	$ 504

XML

Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Derivatives, Fair Value
Fair value - Derivative Assets	$ 2,126	$ 1,852
Fair value - Derivative Liabilities	967	938
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges
Derivatives, Fair Value
Fair value - Derivative Assets	551	411
Fair value - Derivative Liabilities		2
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging
Derivatives, Fair Value
Fair value - Derivative Assets	453	372
Fair value - Derivative Liabilities		2
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | Interest Rate Swap | Long-Term Debt
Derivatives, Fair Value
Notional amount	2,705	2,705
Fair value - Derivative Assets	453	372
Fair value - Derivative Liabilities		2
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging
Derivatives, Fair Value
Fair value - Derivative Assets	98	39
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Swap | Commercial and Industrial Loans
Derivatives, Fair Value
Notional amount	4,475	5,475
Fair value - Derivative Assets	98	39
Nondesignated
Derivatives, Fair Value
Fair value - Derivative Assets	1,575	1,441
Fair value - Derivative Liabilities	967	936
Nondesignated | Risk Management and Other Business Purposes
Derivatives, Fair Value
Fair value - Derivative Assets	671	504
Fair value - Derivative Liabilities	121	71
Nondesignated | Risk Management and Other Business Purposes | Interest Rate Contract | Servicing Rights
Derivatives, Fair Value
Notional amount	9,407	11,657
Fair value - Derivative Assets	363	239
Fair value - Derivative Liabilities	55	9
Nondesignated | Risk Management and Other Business Purposes | Forward Contracts | Assets Held For Sale
Derivatives, Fair Value
Notional amount	1,423	1,330
Fair value - Derivative Assets		3
Fair value - Derivative Liabilities	8	1
Nondesignated | Risk Management and Other Business Purposes | Warrant
Derivatives, Fair Value
Notional amount	420	369
Fair value - Derivative Assets	308	262
Nondesignated | Risk Management and Other Business Purposes | Swap
Derivatives, Fair Value
Notional amount	1,274	1,292
Fair value - Derivative Liabilities	55	61
Nondesignated | Risk Management and Other Business Purposes | Foreign Exchange Contract
Derivatives, Fair Value
Notional amount	129
Fair value - Derivative Liabilities	3
Nondesignated | Customer Accommodation
Derivatives, Fair Value
Fair value - Derivative Assets	904	937
Fair value - Derivative Liabilities	846	865
Nondesignated | Customer Accommodation | Interest Rate Contract
Derivatives, Fair Value
Notional amount	30,604	29,889
Fair value - Derivative Assets	357	242
Fair value - Derivative Liabilities	366	249
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments
Derivatives, Fair Value
Notional amount	1,121	721
Fair value - Derivative Assets	29	15
Nondesignated | Customer Accommodation | Commodity Contract
Derivatives, Fair Value
Notional amount	2,248	2,464
Fair value - Derivative Assets	233	294
Fair value - Derivative Liabilities	211	276
Nondesignated | Customer Accommodation | Foreign Exchange Contract
Derivatives, Fair Value
Notional amount	15,039	16,243
Fair value - Derivative Assets	285	386
Fair value - Derivative Liabilities	$ 269	$ 340

XML

Change in the Fair Value for Interest Rate Contracts and the Related Hedged Items (Detail) - Fair Value Hedging - Interest Rate Contract - Interest Expense, Long-Term Debt - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivatives, Fair Value
Change in fair value of interest rate swaps hedging long-term debt	$ 83	$ 41
Change in fair value of hedged long-term debt	$ (85)	$ (43)

XML

Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash Flow Hedging - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative Instruments, Gain (Loss)
Amount of pretax net (losses) gains recognized in OCI	$ 74	$ 52
Interest Income (Expense) Net
Derivative Instruments, Gain (Loss)
Amount of pretax net gains reclassified from OCI into net income	$ 14	$ 16

XML

Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Risk Management (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest Rate Contract | Forward Contracts | Loans Held For Sale | Mortgage Banking Revenue
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	$ (11)
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	96	$ 65
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	(4)	15
Equity Contract | Warrant | Other Noninterest Income
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	47	70
Equity Contract | Swap | Other Noninterest Income
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	$ 1	$ (17)

XML

Risk Ratings of the Notional Amount of Risk Participation Agreements (Detail) - Interest Rate Contract - Lender Concentration Risk - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Derivatives, Fair Value
Notional amount of the risk participation agreements	$ 2,344	$ 1,664
Pass
Derivatives, Fair Value
Notional amount of the risk participation agreements	2,324	1,650
Risk Level, Special Mention
Derivatives, Fair Value
Notional amount of the risk participation agreements	17	7
Risk Level, Substandard
Derivatives, Fair Value
Notional amount of the risk participation agreements	$ 3	$ 7

XML

Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Customer Accommodation (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	$ 7	$ 6
Interest Rate Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	(1)	(1)
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	42	35
Commodity Contract | Customer Contracts | Corporate Banking Revenue
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	1	1
Commodity Contract | Customer Contracts | Other noninterest expense
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings		(2)
Commodity Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	(1)	5
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	16	21
Foreign Exchange Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense
Derivative Instruments, Gain (Loss)
Net gains (losses) recorded in earnings	$ (2)	$ (1)

XML

Offsetting Derivative Financial Instruments (Detail) - USD ($) $ in Millions	Mar. 31, 2016		Dec. 31, 2015
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net
Gross amount recognized in the balance sheet	$ 2,126		$ 1,852
Derivative, Collateral, Obligation to Return Cash	(738)		(582)
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net
Gross amount recognized in the balance sheet	967		938
Assets
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net
Gross amount recognized in the balance sheet	1,789	[1]	1,575	[2]
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	(656)		(512)
Derivative, Collateral, Obligation to Return Cash	(578)	[3]	(627)	[4]
Derivative, Fair Value, Amount Offset Against Collateral, Net	555		436
Liability
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net
Gross amount recognized in the balance sheet	967	[1]	938	[2]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	(656)		(512)
Derivative, Collateral, Right to Reclaim Cash	(110)	[3]	(173)	[4]
Derivative Fair Value Amount Offset Against Collateral Net	201		253
Derivative | Assets
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net
Gross amount recognized in the balance sheet	1,789	[1]	1,575	[2]
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	(656)		(512)
Derivative, Collateral, Obligation to Return Cash	(578)	[3]	(627)	[4]
Derivative, Fair Value, Amount Offset Against Collateral, Net	555		436
Derivative | Liability
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net
Gross amount recognized in the balance sheet	967	[1]	938	[2]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	(656)		(512)
Derivative, Collateral, Right to Reclaim Cash	(110)	[3]	(173)	[4]
Derivative Fair Value Amount Offset Against Collateral Net	$ 201		$ 253

[1] Amount does not include the stock warrant associated with Vantiv Holding, LLC and IRLCs because these instruments are not subject to master netting or similar arrangements.

[2] Amount does not include the stock warrant associated with Vantiv Holding, LLC and IRLCs because these instruments are not subject to master netting or similar arrangements.

[3] Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.

[4] Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.

XML

Components of Other Short-Term Borrowings (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Short Term Debt
FHLB advances	$ 2,000
Securities sold under repurchase agreements	785	$ 925
Derivative collateral	738	582
Total other short-term borrowings	$ 3,523	$ 1,507

XML

Securities Sold Under Repurchase Agreements By Collateral Type (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Short Term Debt [Line Items]
Securities sold under repurchase agreements	$ 785	$ 925
Overnight maturity | U.S. Treasury and federal agencies
Short Term Debt [Line Items]
Securities sold under repurchase agreements	183	279
Overnight maturity | Agency mortgage-backed securities | Residential mortgage backed securities
Short Term Debt [Line Items]
Securities sold under repurchase agreements	$ 602	$ 646

XML

Capital Actions (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Capital Actions [Line Items]
Shares acquired for treasury	$ 240	$ 180
December 10, 2015 ASR | March 2014 Repurchase Program
Capital Actions [Line Items]
Repurchase date	Dec. 14, 2015
Shares acquired for treasury	$ 215
Shares repurchased on repurchase date	9,248,482
Shares received from forward contract settlement	1,782,477
Total shares repurchased	11,030,959
Settlement date	Jan. 14, 2016
March 2, 2016 ASR | March 2014 Repurchase Program
Capital Actions [Line Items]
Repurchase date	Mar. 04, 2016
Shares acquired for treasury	$ 240
Shares repurchased on repurchase date	12,623,762
Shares received from forward contract settlement	1,868,379
Total shares repurchased	14,492,141
Settlement date	Apr. 11, 2016

XML

Long Term Debt - Additional Information (Detail) - Subsidiaries $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
Debt Instrument
Issue of senior notes to third party investors	$ 1,500
Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019
Debt Instrument
Issue of senior notes to third party investors	$ 750
Maturity date(s) Start	Mar. 15, 2016
Maturity date(s) End	Mar. 15, 2019
Subordinated Debt | Fixed Rate 3.85 Percent Notes Due 2026
Debt Instrument
Issue of senior notes to third party investors	$ 750
Maturity date(s) Start	Mar. 15, 2016
Maturity date(s) End	Mar. 15, 2026

XML

Summary of Significant Commitments (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Commitments to extend credit
Long-term Purchase Commitment [Line Items]
Commitments	$ 66,908	$ 66,884
Letters of credit
Long-term Purchase Commitment [Line Items]
Commitments	2,945	3,055
Forward contracts related to held for sale residential mortgage loans
Long-term Purchase Commitment [Line Items]
Commitments	1,423	1,330
Noncancelable operating lease obligations
Long-term Purchase Commitment [Line Items]
Commitments	618	635
Purchase obligations
Long-term Purchase Commitment [Line Items]
Commitments	70	60
Capital commitments for private equity funds
Long-term Purchase Commitment [Line Items]
Commitments	62	60
Capital expenditures
Long-term Purchase Commitment [Line Items]
Commitments	30	30
Capital lease obligations
Long-term Purchase Commitment [Line Items]
Commitments	$ 24	$ 27

XML

Risk Rating Under the Risk Rating System (Detail) - Commitments to Extend Credit - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Commitments	$ 66,908	$ 66,884
Pass
Line of Credit Facility [Line Items]
Commitments	65,672	65,645
Risk Level, Special Mention
Line of Credit Facility [Line Items]
Commitments	585	647
Risk Level, Substandard
Line of Credit Facility [Line Items]
Commitments	648	$ 592
Risk Level, Doubtful
Line of Credit Facility [Line Items]
Commitments	$ 3

XML

Commitments, Contingent Liabilities and Guarantees - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended			12 Months Ended
	Mar. 31, 2016		Mar. 31, 2015	Dec. 31, 2015		Dec. 31, 2014	Sep. 30, 2014	Sep. 30, 2012	Mar. 31, 2012	Jun. 30, 2011	Dec. 31, 2010	Jun. 30, 2010	Dec. 31, 2009
Loss Contingencies [Line Items]
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs	$ 1,000			$ 1,100
Letters of credit	2,945			3,055
Total Variable Rate Demand Notes	1,200			1,300
Margin account balance held by the brokerage clearing agent	11			10
Amount in excess of amounts reserved	38
Credit loss reserve	1,295	[1]	$ 1,300	1,272	[1]	$ 1,322
Residential Mortgage
Loss Contingencies [Line Items]
Amount in excess of amounts reserved	34
Outstanding balances on residential mortgage loans sold with representation and warranty provisions	23		36	25		$ 35
Outstanding balances on residential mortgage loans sold with credit recourse	$ 451			$ 465
Delinquency Rates	2.60%			3.00%
Credit loss reserve	$ 9			$ 9
Make Whole Payments			1
Repurchased Outstanding Principal	4		9
Repurchase Demand Request	6		$ 9
Outstanding Repurchase Demand Inventory	2			4
Secured Debt
Loss Contingencies [Line Items]
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities	62			$ 62
Standby Letters of Credit
Loss Contingencies [Line Items]
Reserve for unfunded commitments	$ 3
Standby letters of credit as a percentage of total letters of credit	99.00%			99.00%
Standby Letters of Credit | Secured Debt
Loss Contingencies [Line Items]
Standby letters of credit as a percentage of total letters of credit	64.00%			65.00%
Variable Rate Demand Note
Loss Contingencies [Line Items]
Letters of credit	$ 185			$ 187
Letters of credit issued by the Bancorp related to variable rate demand notes	841			921
Variable Rate Demand Note | Trading Securities
Loss Contingencies [Line Items]
Total Variable Rate Demand Notes	5
Other Liabilities
Loss Contingencies [Line Items]
Reserve for unfunded commitments	144			138
Other Liabilities | Residential Mortgage
Loss Contingencies [Line Items]
Outstanding balances on residential mortgage loans sold with representation and warranty provisions	23			25
Private Mortgage Reinsurance
Loss Contingencies [Line Items]
Total outstanding reinsurance coverage	27			27
Approximate reserve related to exposures within the reinsurance portfolio	$ 2			2
Private Mortgage Reinsurance | Lower Limit
Loss Contingencies [Line Items]
Reinsurance coverage ranges of the total PMI coverage	5.00%
Private Mortgage Reinsurance | Upper Limit
Loss Contingencies [Line Items]
Reinsurance coverage ranges of the total PMI coverage	10.00%
Visa Litigation
Loss Contingencies [Line Items]
Recorded share of litigation formally settled by Visa and for probable future litigation settlements	$ 55			$ 61
Visa deposited into the litigation escrow account													$ 3
Visa
Loss Contingencies [Line Items]
Visa IPO, shares of Visa's Class B common stock received													10.1
Visa deposited into the litigation escrow account							$ 450	$ 150	$ 1,565	$ 400	$ 800	$ 500

[1] Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

XML

Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party (Detail) - Financial Standby Letter of Credit $ in Millions	Mar. 31, 2016 USD ($)
Line of Credit Facility [Line Items]
Commitments	$ 2,945
Less Than One Year From The Balance Sheet Date
Line of Credit Facility [Line Items]
Commitments	1,673	[1]
More than One and within Five Years from Balance Sheet Date
Line of Credit Facility [Line Items]
Commitments	1,244	[1]
More than five years from balance sheet date
Line of Credit Facility [Line Items]
Commitments	$ 28

[1] Includes $25 and $15 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively.

XML

Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party (Parenthetical) (Detail) - Financial Standby Letter of Credit $ in Millions	Mar. 31, 2016 USD ($)
Line of Credit Facility [Line Items]
Commitments	$ 2,945
Less Than One Year From The Balance Sheet Date
Line of Credit Facility [Line Items]
Commitments	1,673	[1]
Less Than One Year From The Balance Sheet Date | Commercial
Line of Credit Facility [Line Items]
Commitments	25
More than One and within Five Years from Balance Sheet Date
Line of Credit Facility [Line Items]
Commitments	1,244	[1]
More than One and within Five Years from Balance Sheet Date | Commercial
Line of Credit Facility [Line Items]
Commitments	15
More than five years from balance sheet date
Line of Credit Facility [Line Items]
Commitments	$ 28

[1] Includes $25 and $15 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively.

XML

Letters of Credit (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letters of credit	$ 2,945	$ 3,055
Pass
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letters of credit	2,477	2,606
Risk Level, Special Mention
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letters of credit	138	130
Risk Level, Substandard
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letters of credit	250	258
Risk Level, Doubtful
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letters of credit	$ 80	$ 61

XML

Activity in Reserve for Representation and Warranty Provisions (Detail) - Residential Mortgage - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	$ 25	$ 35
Net additions to the reserve	(2)	2
Losses charged against the reserve		(1)
Balance, end of period	$ 23	$ 36

XML

Unresolved Claims by Claimant (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)
GSE
Loss Contingencies Dollars
Balance, beginning of period	$ 4	$ 6
New demands	6	9
Loan paydowns/payoffs	(1)
Resolved claims	(7)	(11)
Balance, end of period	$ 2	$ 4
Loss Contingencies Units
Balance, beginning of period	16	37
New demands	71	118
Loan paydowns/payoffs	(4)	(4)
Resolved claims	(68)	(119)
Balance, end of period	15	32
Private Label
Loss Contingencies Dollars
Balance, beginning of period		$ 1
Resolved claims		$ (1)
Loss Contingencies Units
Balance, beginning of period	2	1
New demands	2	6
Resolved claims	(3)	(5)
Balance, end of period	1	2

XML

Visa Funding and Bancorp Cash Payments (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2012	Mar. 31, 2012	Jun. 30, 2011	Dec. 31, 2010	Jun. 30, 2010
Visa Funding
Loss Contingencies [Line Items]
Visa deposited into the litigation escrow account	$ 450	$ 150	$ 1,565	$ 400	$ 800	$ 500
Bancorp Cash Payment
Loss Contingencies [Line Items]
Reduction of liability in cash to the swap counterparty	$ 18	$ 6	$ 75	$ 19	$ 35	$ 20

XML

Legal and Regulatory Proceedings - Additional Information (Detail) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016 USD ($)	Dec. 31, 2013	Mar. 31, 2013 USD ($)	Sep. 30, 2012 USD ($)
Loss Contingencies [Line Items]
Percentage of funds returned to defendants	25.00%
Class Settlement Escrow			$ 46
Amount in excess of amounts reserved	$ 38
Litigation Settlement Amount	$ 6
APR Percentage Allegedly Misleading				120.00%
Number Of Putative Class Actions Filed		4
Damages Claimed By Plaintiff				$ 70
Federal Lawsuits
Loss Contingencies [Line Items]
Number of merchants	460
Merchants requesting exclusion from class settlement
Loss Contingencies [Line Items]
Number of merchants	8,000

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Taxes
Applicable income tax expense	$ 108	$ 124
Effective tax rate	25.00%	25.60%

XML

Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities
Unrealized holding gains (losses) on available-for-sale securities arising during period	$ 452	$ 141
Reclassification adjustment for net (gains) losses included in net income	(5)	(8)
Net activity for net unrealized gain (loss) on cash flow hedge derivatives
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period	48	34
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(9)	(10)
Net activity for defined benefit plans, net
Reclassification of amounts to net periodic benefit costs	(1)	(2)
Total Other Comprehensive Activity
Pre-tax activity total	749	242
Total, Tax	(262)	(83)
Other comprehensive income (loss)	487	159
Total Accumulated Other Comprehensive Income
Total Accumulated Other Comprehensive Income - Beginning Balance	197	429
Other comprehensive income (loss), Net of Tax	487	159
Total Accumulated Other Comprehensive Income - Ending Balance	684	588
Accumulated Net Unrealized Investment Gain (Loss)
Pre-tax activity for accumulated net unrealized gain (loss) on available-for-sale securities
Unrealized holding gains (losses) on available-for-sale securities arising during period	695	215
Reclassification adjustment for net losses (gains) included in net income	(8)	(12)
Net unrealized gains on available-for-sale securities	687	203
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities
Unrealized holding gains (losses) on available-for-sale securities arising during period	(243)	(74)
Reclassification adjustment for net losses (gains) included in net income	3	4
Net unrealized gains on available-for-sale securities	(240)	(70)
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities
Unrealized holding gains (losses) on available-for-sale securities arising during period	452	141
Reclassification adjustment for net (gains) losses included in net income	(5)	(8)
Net unrealized gains on available-for-sale securities	447	133
Total Other Comprehensive Activity
Other comprehensive income (loss)	447	133
Total Accumulated Other Comprehensive Income
Total Accumulated Other Comprehensive Income - Beginning Balance	238	475
Other comprehensive income (loss), Net of Tax	447	133
Total Accumulated Other Comprehensive Income - Ending Balance	685	608
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Pre-tax activity for net unrealized gain (loss) on cash flow hedge derivatives
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period	74	52
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(14)	(16)
Net unrealized gains on cash flow hedge derivatives	60	36
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period	(26)	(18)
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	5	6
Net unrealized gains on cash flow hedge derivatives	(21)	(12)
Net activity for net unrealized gain (loss) on cash flow hedge derivatives
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period	48	34
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(9)	(10)
Net unrealized gains on cash flow hedge derivatives	39	24
Total Other Comprehensive Activity
Other comprehensive income (loss)	39	24
Total Accumulated Other Comprehensive Income
Total Accumulated Other Comprehensive Income - Beginning Balance	22	23
Other comprehensive income (loss), Net of Tax	39	24
Total Accumulated Other Comprehensive Income - Ending Balance	61	47
Accumulated Defined Benefit Plans Adjustment
Pre-tax activity for defined benefit plans, net
Reclassification of amounts to net periodic benefit costs	2	3
Defined benefit plans, net	2	3
Tax effect for defined benefit plans, net
Reclassification of amounts to net periodic benefit costs	(1)	(1)
Defined benefit plans, net	(1)	(1)
Net activity for defined benefit plans, net
Reclassification of amounts to net periodic benefit costs	1	2
Defined benefit plans, net	1	2
Total Other Comprehensive Activity
Other comprehensive income (loss)	(1)	(2)
Total Accumulated Other Comprehensive Income
Total Accumulated Other Comprehensive Income - Beginning Balance	(63)	(69)
Other comprehensive income (loss), Net of Tax	(1)	(2)
Total Accumulated Other Comprehensive Income - Ending Balance	$ (62)	$ (67)

XML

Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Income Before Income Taxes		$ 435	$ 485
Applicable income tax expense		108	124
Net income		327	361
Total Reclassifications For The Period
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		13	16
Net Unrealized Gains On Available For Sale Securities
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification adjustment for net losses (gains) included in net income		8	12
Net Unrealized Gains On Available For Sale Securities | Net Losses Included In Net Income
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification adjustment for net losses (gains) included in net income	[1]	8	12
Income Before Income Taxes	[1]	8	12
Applicable income tax expense	[1]	(3)	(4)
Net income	[1]	5	8
Net Unrealized Gains On Cash Flow Hedge Activities
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income		14	16
Income Before Income Taxes	[1]	14	16
Applicable income tax expense	[1]	(5)	(6)
Net income	[1]	9	10
Net Unrealized Gains On Cash Flow Hedge Activities | Interest Rate Contracts Related To C&I Loans
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	[1]	14	16
Amortization Of Defined Benefit Pension Items | Net Actuarial Loss
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Net periodic pension cost	[1],[2]	(2)	(3)
Income Before Income Taxes	[1]	(2)	(3)
Applicable income tax expense	[1]	1	1
Net income	[1]	$ (1)	$ (2)

[1] Amounts in parentheses indicate reductions to net income

[2] This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015 for information on the computation of net periodic benefit cost.

XML

Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings per share:
Net income attributable to Bancorp	$ 327	$ 361
Dividends on preferred stock	15	15
Net income (loss) available to common shareholders	312	346
Less: Income allocated to participating securities	3	3
Earnings per share - basic	309	343
Earnings per diluted share:
Net income available to common shareholders	312	346
Net income available to common shareholders plus assumed conversions	312	346
Less: Income allocated to participating securities	3	3
Net income allocated to common shareholders	$ 309	$ 343
Earnings per share:
Net income allocated to common shareholders	773,564,178	810,209,585
Effect of dilutive securities:
Stock-based awards	4,000,000	9,000,000
Net income allocated to common shareholders	778,392,453	818,672,259
Earnings per share:
Earnings per share - basic	$ 0.40	$ 0.42
Earnings per diluted share:
Earnings per share - diluted	$ 0.40	$ 0.42

XML

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock Appreciation Rights
Earnings Per Share Disclosure [Line Items]
Anti-dilutive securities	20	18

XML

Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions		Mar. 31, 2016		Dec. 31, 2015
Assets:
Available-for-sale securities, fair value	[1]	$ 29,891		$ 29,044
Trading securities		405		386
Fair value, recurring
Assets:
Available-for-sale securities, fair value		29,287	[2]	28,440	[3]
Trading securities		405		386
Residential mortgage loans held for sale		600		519
Residential mortgage loans measured at FV		160	[4]	167	[5]
Derivative assets	[6]	2,126		1,852
Total assets		32,578		31,364
Liabilities:
Derivative liabilities	[7]	967		938
Short positions	[7]	24		29
Total liabilities		991		967
Interest Rate Contract | Fair value, recurring
Assets:
Derivative assets		1,300		910
Liabilities:
Derivative liabilities		429		261
Foreign Exchange Contract | Fair value, recurring
Assets:
Derivative assets		285		386
Liabilities:
Derivative liabilities		272		340
Equity Contract | Fair value, recurring
Assets:
Derivative assets		308		262
Liabilities:
Derivative liabilities		55		61
Commodity Contract | Fair value, recurring
Assets:
Derivative assets		233		294
Liabilities:
Derivative liabilities		211		276
U.S. Treasury and federal agencies
Assets:
Available-for-sale securities, fair value		1,161		1,187
U.S. Treasury and federal agencies | Fair value, recurring
Assets:
Available-for-sale securities, fair value		1,161		1,187
Trading securities		18		19
Obligations of states and political subdivisions
Assets:
Available-for-sale securities, fair value		52		52
Obligations of states and political subdivisions | Fair value, recurring
Assets:
Available-for-sale securities, fair value		52		52
Trading securities		54		9
Agency mortgage-backed securities | Residential mortgage backed securities
Assets:
Available-for-sale securities, fair value		15,129	[8]	15,081	[9]
Agency mortgage-backed securities | Residential mortgage backed securities | Fair value, recurring
Assets:
Available-for-sale securities, fair value		15,129		15,081
Trading securities		5		6
Agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member]
Assets:
Available-for-sale securities, fair value		8,205		7,862
Agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring
Assets:
Available-for-sale securities, fair value		8,205		7,862
Trading securities		1
Non-agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member]
Assets:
Available-for-sale securities, fair value		3,120		2,804
Non-agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring
Assets:
Available-for-sale securities, fair value		3,120		2,804
Asset-backed securities and other debt securities
Assets:
Available-for-sale securities, fair value		1,520		1,355
Asset-backed securities and other debt securities | Fair value, recurring
Assets:
Available-for-sale securities, fair value		1,520		1,355
Trading securities		23		19
Equity securities
Assets:
Available-for-sale securities, fair value		704	[10]	703	[11]
Equity securities | Fair value, recurring
Assets:
Available-for-sale securities, fair value		100	[2]	99	[3]
Trading securities		304		333
Fair Value, Inputs, Level 1 | Fair value, recurring
Assets:
Available-for-sale securities, fair value		176	[2],[12]	198	[3],[13]
Trading securities		305	[12]	333	[13]
Derivative assets	[6]	38	[12]	57	[13]
Total assets		519	[12]	588	[13]
Liabilities:
Derivative liabilities	[7]	30	[12]	38	[13]
Short positions	[7]	15	[12]	22	[13]
Total liabilities		45	[12]	60	[13]
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring
Assets:
Derivative assets		1	[12]	3	[13]
Liabilities:
Derivative liabilities		9	[12]	1	[13]
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring
Assets:
Derivative assets		37	[12]	54	[13]
Liabilities:
Derivative liabilities		21	[12]	37	[13]
Fair Value, Inputs, Level 1 | U.S. Treasury and federal agencies | Fair value, recurring
Assets:
Available-for-sale securities, fair value		77	[12]	100	[13]
Trading securities	[12]	1
Fair Value, Inputs, Level 1 | Equity securities | Fair value, recurring
Assets:
Available-for-sale securities, fair value		99	[2],[12]	98	[3],[13]
Trading securities		304	[12]	333	[13]
Fair Value, Inputs, Level 2 | Fair value, recurring
Assets:
Available-for-sale securities, fair value		29,111	[2],[12]	28,242	[3],[13]
Trading securities		100	[12]	53	[13]
Residential mortgage loans held for sale		600	[12]	519	[13]
Derivative assets	[6]	1,751	[12]	1,518	[13]
Total assets		31,562	[12]	30,332	[13]
Liabilities:
Derivative liabilities	[7]	878	[12]	836	[13]
Short positions	[7]	9	[12]	7	[13]
Total liabilities		887	[12]	843	[13]
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring
Assets:
Derivative assets		1,270	[12]	892	[13]
Liabilities:
Derivative liabilities		416	[12]	257	[13]
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring
Assets:
Derivative assets		285	[12]	386	[13]
Liabilities:
Derivative liabilities		272	[12]	340	[13]
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring
Assets:
Derivative assets		196	[12]	240	[13]
Liabilities:
Derivative liabilities		190	[12]	239	[13]
Fair Value, Inputs, Level 2 | U.S. Treasury and federal agencies | Fair value, recurring
Assets:
Available-for-sale securities, fair value		1,084	[12]	1,087	[13]
Trading securities		17	[12]	19	[13]
Fair Value, Inputs, Level 2 | Obligations of states and political subdivisions | Fair value, recurring
Assets:
Available-for-sale securities, fair value		52	[12]	52	[13]
Trading securities		54	[12]	9	[13]
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Residential mortgage backed securities | Fair value, recurring
Assets:
Available-for-sale securities, fair value		15,129	[12]	15,081	[13]
Trading securities		5	[12]	6	[13]
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring
Assets:
Available-for-sale securities, fair value		8,205	[12]	7,862	[13]
Trading securities	[12]	1
Fair Value, Inputs, Level 2 | Non-agency mortgage-backed securities | Commercial Mortgage Backed Securities [Member] | Fair value, recurring
Assets:
Available-for-sale securities, fair value		3,120	[12]	2,804	[13]
Fair Value, Inputs, Level 2 | Asset-backed securities and other debt securities | Fair value, recurring
Assets:
Available-for-sale securities, fair value		1,520	[12]	1,355	[13]
Trading securities		23	[12]	19	[13]
Fair Value, Inputs, Level 2 | Equity securities | Fair value, recurring
Assets:
Available-for-sale securities, fair value		1	[2],[12]	1	[3],[13]
Fair Value, Inputs, Level 3 | Fair value, recurring
Assets:
Residential mortgage loans measured at FV		160	[4]	167	[5]
Derivative assets	[6]	337		277
Total assets		497		444
Liabilities:
Derivative liabilities	[7]	59		64
Total liabilities		59		64
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring
Assets:
Derivative assets		29		15
Liabilities:
Derivative liabilities		4		3
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring
Assets:
Derivative assets		308		262
Liabilities:
Derivative liabilities		$ 55		$ 61

[1] Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively.

[2] Excludes FHLB, FRB and DTCC restricted stock holdings totaling $248, $355 and $1 respectively, at March 31, 2016.

[3] Excludes FHLB, FRB and DTCC restricted stock holdings totaling $248, $355 and $1, respectively, at December 31, 2015.

[4] Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.

[5] Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.

[6] Included in other assets in the Condensed Consolidated Balance Sheets.

[7] Included in other liabilities in the Condensed Consolidated Balance Sheets.

[8] Includes interest-only mortgage-backed securities of $41 as of March 31, 2016 recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income.

[9] Includes interest-only mortgage-backed securities of $50 as of December 31, 2015, recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income.

[10] Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355 and $1, respectively, at March 31, 2016, that are carried at cost, and certain mutual fund and equity security holdings.

[11] Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $355, and $1, respectively, at December 31, 2015, that are carried at cost, and certain mutual fund and equity security holdings

[12] During the three months ended March 31, 2016, no assets or liabilities were transferred between Level 1 and Level 2.

[13] During the year ended December 31, 2015, no assets or liabilities were transferred between Level 1 and Level 2.

XML

Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Federal Home Loan Bank Stock	$ 248	$ 248
Federal Reserve Bank Stock	355	355
DTCC Stock	$ 1	$ 1

XML

Fair Value Measurements - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Jun. 30, 2009
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Portfolio loans to loans held for sale	$ 3	$ 9
Existing loans held for sale, further adjusted	600		$ 519
Residential loans transferred to the Bancorp's portfolio	12	78
Fair value changes included in earnings for instruments for which the fair value option was elected	$ 30	30
Incremental Unit Purchase Option	7.8
Vantiv Holding, LLC Warrant Exercise Price	$ 15.98
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants				51.00%
Commercial Loans Held For Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Existing loans held for sale, further adjusted		1
Gain Loss On Sales Of Loans Net		5
Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net impact related to fair value adjustments	$ 1	3
Nonrecurring Losses Included As Charge-Offs	2	5
Residential Mortgage Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential loans transferred to the Bancorp's portfolio		55
Fair value adjustment		$ 1
The fair value of loans	2		$ 2
Interest Rate Lock Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net fair value of the interest rate lock commitments	29
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp	8
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp	15
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp	10
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp	21
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates	3
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates	6
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates	3
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates	6
Fair value measurements nonrecurring | Commercial Loans Held For Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Portfolio loans to loans held for sale	$ 5

XML

Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - Quarter to date - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016		Mar. 31, 2015
FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationCalculationRollforward
Beginning Balance		$ 380		$ 484
Included in earnings		91		90
Purchases		(1)
Settlements		(35)		(29)
Transfers Into Level 3	[1]	3		23
Ending Balance		438		568
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held	[2]	78		74
Residential Mortgage
FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationCalculationRollforward
Beginning Balance		167		108
Included in earnings		1		2
Settlements		(11)		(7)
Transfers Into Level 3	[1]	3		23
Ending Balance		160		126
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held	[2]	1		2
Interest Rate Contract
FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationCalculationRollforward
Beginning Balance		12	[3]	10	[4]
Included in earnings		42	[3]	35	[4]
Purchases	[3]	(1)
Settlements		(28)	[3]	(28)	[4]
Ending Balance		25	[3]	17	[4]
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held	[2]	29	[3]	19	[4]
Equity Contract
FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationCalculationRollforward
Beginning Balance		201	[3]	366	[4]
Included in earnings		48	[3]	53	[4]
Settlements		4	[3]	6	[4]
Ending Balance		253	[3]	425	[4]
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held	[2]	$ 48	[3]	$ 53	[4]

[1] Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

[2] Includes interest income and expense.

[3] Net interest rate derivatives include derivative assets and liabilities of $29 and $4, respectively, as of March 31, 2016. Net equity derivatives include derivative assets and liabilities of $308 and $55, respectively, as of March 31, 2016.

[4] Net interest rate derivatives include derivative assets and liabilities of $10 and $3, respectively, as of ##D. Net equity derivatives include derivative assets and liabilities of $358 and $53, respectively, as of ##D.

XML

Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015
Interest Rates
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Derivative assets	$ 29	$ 19
Derivative liabilities	4	2
Equity Contract
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Derivative assets	308	485
Derivative liabilities	$ 55	$ 60

XML

Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains and losses included in earnings	$ 91	$ 90
Mortgage Banking Revenue
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains and losses included in earnings	43	36
Corporate Banking Revenue
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains and losses included in earnings		1
Other Noninterest Income
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains and losses included in earnings	$ 48	$ 53

XML

Total Gains and Losses Included in Earning Attributable to Changes in Unrealized Gains and Losses Related to Level 3 Assets and Liabilites Still Held at Year End (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings	$ 78	$ 74
Mortgage Banking Revenue
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings	30	20
Corporate Banking Revenue
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings		1
Other Noninterest Income
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings	$ 48	$ 53

XML

Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis) (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Fair Value Inputs [Line Items]
Derivative instruments		$ 2,126		$ 1,852
Residential mortgage loans
Fair Value Inputs [Line Items]
Residential mortgage loans measured at FV		160	$ 126
IRLCs, net
Fair Value Inputs [Line Items]
Derivative instruments		29	19
Stock warrants associated with Vantiv Holding, LLC
Fair Value Inputs [Line Items]
Derivative instruments		308	485
Swap associated with the sale of Visa, Inc. Class B shares
Fair Value Inputs [Line Items]
Derivative instruments		$ (55)	$ (60)
Minimum | Residential mortgage loans
Fair Value Inputs [Line Items]
Interest rate risk factor		(6.00%)	(5.70%)
Minimum | IRLCs, net
Fair Value Inputs [Line Items]
Loan closing rates		5.60%	2.30%
Minimum | Stock warrants associated with Vantiv Holding, LLC
Fair Value Inputs [Line Items]
Expected term (years)		2 years	2 years
Expected volatility	[1]	23.00%	22.90%
Minimum | Swap associated with the sale of Visa, Inc. Class B shares
Fair Value Inputs [Line Items]
Timing of the resolution of the covered litigation		Dec. 31, 2016	Sep. 30, 2016
Maximum | Residential mortgage loans
Fair Value Inputs [Line Items]
Interest rate risk factor		16.50%	18.30%
Credit risk factor		80.50%	47.90%
Maximum | IRLCs, net
Fair Value Inputs [Line Items]
Loan closing rates		94.00%	87.60%
Maximum | Stock warrants associated with Vantiv Holding, LLC
Fair Value Inputs [Line Items]
Expected term (years)		13 years 3 months 18 days	14 years 3 months 18 days
Expected volatility	[1]	30.40%	32.20%
Maximum | Swap associated with the sale of Visa, Inc. Class B shares
Fair Value Inputs [Line Items]
Timing of the resolution of the covered litigation		Mar. 31, 2021	Mar. 31, 2021
Weighted average | Residential mortgage loans
Fair Value Inputs [Line Items]
Interest rate risk factor		4.40%	5.30%
Credit risk factor		1.40%	1.20%
Weighted average | IRLCs, net
Fair Value Inputs [Line Items]
Loan closing rates		75.00%	67.00%
Weighted average | Stock warrants associated with Vantiv Holding, LLC
Fair Value Inputs [Line Items]
Expected term (years)		5 years 10 months 24 days	5 years 10 months 24 days
Expected volatility	[1]	25.90%	26.50%

[1] Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms.

XML

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	$ 1,161	$ 1,342
Fair Value Measured On Nonrecurring Basis Gains Losses	(128)	(142)
Commercial Loans Held-for-Sale | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	5	1
Fair Value Measured On Nonrecurring Basis Gains Losses	(2)	4
Commercial and Industrial Loans | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	347	366
Fair Value Measured On Nonrecurring Basis Gains Losses	(47)	(43)
Commercial Mortgage Loans | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	85	52
Fair Value Measured On Nonrecurring Basis Gains Losses	6	(13)
Commercial Construction Loans | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measured On Nonrecurring Basis Gains Losses	2
Residential mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements		55
Fair Value Measured On Nonrecurring Basis Gains Losses		(1)
Servicing Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	685	788
Fair Value Measured On Nonrecurring Basis Gains Losses	(85)	(48)
Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	27	36
Fair Value Measured On Nonrecurring Basis Gains Losses	(3)	(8)
Bank premises and equipment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	12	5
Fair Value Measured On Nonrecurring Basis Gains Losses	1	(3)
Operating lease equipment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements		39
Fair Value Measured On Nonrecurring Basis Gains Losses		(30)
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	1,161	1,342
Fair Value, Inputs, Level 3 | Commercial Loans Held-for-Sale | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	5	1
Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	347	366
Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	85	52
Fair Value, Inputs, Level 3 | Residential mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements		55
Fair Value, Inputs, Level 3 | Servicing Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	685	788
Fair Value, Inputs, Level 3 | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	27	36
Fair Value, Inputs, Level 3 | Bank premises and equipment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	$ 12	5
Fair Value, Inputs, Level 3 | Operating lease equipment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements		$ 39

XML

Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Nonrecurring Basis) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Commercial Loans Held For Sale | Commercial
Fair Value Inputs [Line Items]
Fair value measurements nonrecurring assets	$ 5	$ 1
Commercial and Industrial Loans | Commercial
Fair Value Inputs [Line Items]
Fair value measurements nonrecurring assets	347	366
Commercial Mortgage Loans | Commercial
Fair Value Inputs [Line Items]
Fair value measurements nonrecurring assets	85	52
Commercial construction loans | Commercial
Fair Value Inputs [Line Items]
Fair value measurements nonrecurring assets		55
Servicing Rights
Fair Value Inputs [Line Items]
Fair value measurements nonrecurring assets	685	788
OREO Property
Fair Value Inputs [Line Items]
Fair value measurements nonrecurring assets	27	36
Bank premises and equipment
Fair Value Inputs [Line Items]
Fair value measurements nonrecurring assets	$ 12	5
Operating lease equipment
Fair Value Inputs [Line Items]
Fair value measurements nonrecurring assets		$ 39
Minimum | Servicing Rights
Fair Value Inputs [Line Items]
Prepayment speed		0.60%
OAS spread (bps)	364	430
Maximum | Servicing Rights
Fair Value Inputs [Line Items]
Prepayment speed	100.00%	100.00%
OAS spread (bps)	1515	1700
Weighted average | Commercial Loans Held For Sale | Commercial
Fair Value Inputs [Line Items]
Cost to sell	10.00%	10.00%
Weighted average | Fixed | Servicing Rights
Fair Value Inputs [Line Items]
Prepayment speed	14.10%	10.00%
OAS spread (bps)	603	920
Weighted average | Adjustable | Servicing Rights
Fair Value Inputs [Line Items]
Prepayment speed	27.80%	32.20%
OAS spread (bps)	713	640

XML

Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value (Detail) - Residential mortgage loans - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Aggregate fair value
Residential mortgage loans measured at fair value	$ 760	$ 686
Past due loans of 90 days or more	1	2
Nonaccrual loans	1	2
Aggregate unpaid principal balance
Residential mortgage loans measured at fair value	730	669
Past due loans of 90 days or more	1	2
Nonaccrual loans	1	2
Difference
Residential mortgage loans measured at fair value	$ 30	$ 17

XML

Carrying Amounts and Estimated Fair Values for Certain Financial Instruments (Detail) - USD ($) $ in Millions		Mar. 31, 2016		Dec. 31, 2015		Mar. 31, 2015	Dec. 31, 2014
Financial assets:
Cash and due from banks		$ 2,298	[1]	$ 2,540	[1]	$ 2,920	$ 3,091
Held-to-maturity securities, amortized cost	[2]	64		70
Other short-term investments		1,778		2,671
Loans held for sale	[3]	803		903
Portfolio loans and leases, net		92,310		91,310
Other securities, fair value	[4]	29,891		29,044
Held-to-maturity securities, fair value		64		70
Loans held for sale		600		519
Financial liabilities:
Deposits	[5]	102,475		103,205
Federal funds purchased		134		151
Other short-term borrowings		3,523		1,507
Long-term debt	[1],[6]	15,305		15,810
Residential Mortgage
Financial assets:
Portfolio loans and leases at fair value		160				$ 126
Carrying (Reported) Amount, Fair Value Disclosure
Financial assets:
Cash and due from banks		2,298		2,540
Held-to-maturity securities, amortized cost		64		70
Other short-term investments		1,778		2,671
Loans held for sale		203		384
Unallocated Allowance For Loan And Lease Losses		(116)		(115)
Portfolio loans and leases at fair value		92,150		91,143
Financial liabilities:
Deposits		102,475		103,205
Federal funds purchased		134		151
Other short-term borrowings		3,523		1,507
Long-term debt		15,305		15,810
Carrying (Reported) Amount, Fair Value Disclosure | FHLB and FRB restricted stock holdings
Financial assets:
Other securities		604		604
Carrying (Reported) Amount, Fair Value Disclosure | Commercial and Industrial Loans | Commercial
Financial assets:
Portfolio loans and leases, net		42,736		41,479
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Mortgage Loans | Commercial
Financial assets:
Portfolio loans and leases, net		6,758		6,840
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Construction Loans | Commercial
Financial assets:
Portfolio loans and leases, net		3,404		3,190
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Leases | Commercial
Financial assets:
Portfolio loans and leases, net		3,916		3,807
Carrying (Reported) Amount, Fair Value Disclosure | Residential Mortgage
Financial assets:
Portfolio loans and leases, net		13,637		13,449
Carrying (Reported) Amount, Fair Value Disclosure | Home Equity
Financial assets:
Portfolio loans and leases, net		8,050		8,234
Carrying (Reported) Amount, Fair Value Disclosure | Automobile Loan [Member]
Financial assets:
Portfolio loans and leases, net		11,087		11,453
Carrying (Reported) Amount, Fair Value Disclosure | Credit Card Receivables [Member]
Financial assets:
Portfolio loans and leases, net		2,039		2,160
Carrying (Reported) Amount, Fair Value Disclosure | Other Consumer Loans and Leases
Financial assets:
Portfolio loans and leases, net		639		646
Total Fair Value
Financial assets:
Cash and due from banks, fair value		2,298		2,540
Held-to-maturity securities, fair value		64		70
Other short term investments, fair value		1,778		2,671
Portfolio loans and leases at fair value		93,961		92,282
Financial liabilities:
Deposits, fair value		102,544		103,219
Federal funds purchased, fair value		134		151
Other short-term borrowings, fair value		3,523		1,507
Long term debt, fair value		15,904		16,228
Total Fair Value | Non Fair Value Option Held For Sale Loans [Member]
Financial assets:
Loans held for sale		203		384
Total Fair Value | FHLB and FRB restricted stock holdings
Financial assets:
Other securities, fair value		604		604
Total Fair Value | Commercial and Industrial Loans | Commercial
Financial assets:
Portfolio loans and leases, net				41,802
Portfolio loans and leases at fair value		43,168
Total Fair Value | Commercial Mortgage Loans | Commercial
Financial assets:
Portfolio loans and leases, net		6,624		6,656
Total Fair Value | Commercial Construction Loans | Commercial
Financial assets:
Portfolio loans and leases, net		3,169		2,918
Total Fair Value | Commercial Leases | Commercial
Financial assets:
Portfolio loans and leases, net		3,675		3,533
Total Fair Value | Residential Mortgage
Financial assets:
Portfolio loans and leases at fair value		14,588		14,061
Total Fair Value | Home Equity
Financial assets:
Portfolio loans and leases at fair value		8,855		8,948
Total Fair Value | Automobile Loan [Member]
Financial assets:
Portfolio loans and leases at fair value		10,834		11,170
Total Fair Value | Credit Card Receivables [Member]
Financial assets:
Portfolio loans and leases at fair value		2,432		2,551
Total Fair Value | Other Consumer Loans and Leases
Financial assets:
Portfolio loans and leases, net		616		643
Total Fair Value | Fair Value, Inputs, Level 1
Financial assets:
Cash and due from banks, fair value		2,298		2,540
Other short term investments, fair value		1,778		2,671
Financial liabilities:
Federal funds purchased, fair value		134		151
Long term debt, fair value		15,202		15,603
Total Fair Value | Fair Value, Inputs, Level 2
Financial liabilities:
Deposits, fair value		102,544		103,219
Other short-term borrowings, fair value		3,523		1,507
Long term debt, fair value		702		625
Total Fair Value | Fair Value, Inputs, Level 2 | FHLB and FRB restricted stock holdings
Financial assets:
Other securities, fair value		604		604
Total Fair Value | Fair Value, Inputs, Level 3
Financial assets:
Held-to-maturity securities, fair value		64		70
Portfolio loans and leases at fair value		93,961		92,282
Total Fair Value | Fair Value, Inputs, Level 3 | Non Fair Value Option Held For Sale Loans [Member]
Financial assets:
Loans held for sale		203		384
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial
Financial assets:
Portfolio loans and leases, net				41,802
Portfolio loans and leases at fair value		43,168
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial
Financial assets:
Portfolio loans and leases, net		6,624		6,656
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial
Financial assets:
Portfolio loans and leases, net		3,169		2,918
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Leases | Commercial
Financial assets:
Portfolio loans and leases, net		3,675		3,533
Total Fair Value | Fair Value, Inputs, Level 3 | Residential Mortgage
Financial assets:
Portfolio loans and leases at fair value		14,588		14,061
Total Fair Value | Fair Value, Inputs, Level 3 | Home Equity
Financial assets:
Portfolio loans and leases at fair value		8,855		8,948
Total Fair Value | Fair Value, Inputs, Level 3 | Automobile Loan [Member]
Financial assets:
Portfolio loans and leases at fair value		10,834		11,170
Total Fair Value | Fair Value, Inputs, Level 3 | Credit Card Receivables [Member]
Financial assets:
Portfolio loans and leases at fair value		2,432		2,551
Total Fair Value | Fair Value, Inputs, Level 3 | Other Consumer Loans and Leases
Financial assets:
Portfolio loans and leases, net		$ 616		$ 643

[1] Includes $147 and $152 of cash and due from banks, $2,178 and $2,537 of portfolio loans and leases, $(27) and $(28) of ALLL, $11 and $14 of other assets, $4 and $3 of other liabilities, and $2,102 and $2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 9.

[2] Fair value of $64 and $70 at March 31, 2016 and December 31, 2015, respectively.

[3] Includes $600 and $519 of residential mortgage loans held for sale measured at fair value at March 31, 2016 and December 31, 2015, respectively.

[4] Amortized cost of $28,838 and $28,678 at March 31, 2016 and December 31, 2015, respectively.

[5] Includes $331 and $628 of deposits held for sale at March 31, 2016 and December 31, 2015, respectively. For further information refer to Note 7.

[6] Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3.

XML

Results of Operations and Average Assets by Segment - Additional Information (Detail)	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Full-service Banking Centers	1,241

XML

Results of Operations and Average Assets by Segment (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016		Mar. 31, 2015		Dec. 31, 2015
Segment Reporting Information
Net interest income	$ 903		$ 847
Provision for loan and lease losses	119		69
Net interest income (loss) after provision for loan and lease losses	784		778
Total noninterest income	637		630
Total noninterest expense	986		923
Income (Loss) Before Income Taxes	435		485
Applicable income tax benefit	108		124
Net income (loss)	327		361
Net income attributable to Bancorp	327		361
Dividends on preferred stock	15		15
Net income available to common shareholders	312		346
Total goodwill	2,416		2,416		$ 2,416
Total Assets	142,430	[1]	140,437		$ 141,048	[1]
Commercial Banking
Segment Reporting Information
Net interest income	451		392
Provision for loan and lease losses	65		42
Net interest income (loss) after provision for loan and lease losses	386		350
Total noninterest income	223		174	[2]
Total noninterest expense	363		348
Income (Loss) Before Income Taxes	246		176
Applicable income tax benefit	35		13
Net income (loss)	211		163
Net income attributable to Bancorp	211		163
Net income available to common shareholders	211		163
Total goodwill	613		613
Total Assets	59,652		57,855
Branch Banking
Segment Reporting Information
Net interest income	426		377
Provision for loan and lease losses	34		42
Net interest income (loss) after provision for loan and lease losses	392		335
Total noninterest income	189	[3]	176	[4]
Total noninterest expense	411		400
Income (Loss) Before Income Taxes	170		111
Applicable income tax benefit	60		39
Net income (loss)	110		72
Net income attributable to Bancorp	110		72
Net income available to common shareholders	110		72
Total goodwill	1,655		1,655
Total Assets	54,528		53,295
Consumer Lending
Segment Reporting Information
Net interest income	60		63
Provision for loan and lease losses	12		14
Net interest income (loss) after provision for loan and lease losses	48		49
Total noninterest income	83		129
Total noninterest expense	118		105
Income (Loss) Before Income Taxes	13		73
Applicable income tax benefit	5		26
Net income (loss)	8		47
Net income attributable to Bancorp	8		47
Net income available to common shareholders	8		47
Total Assets	22,475		22,057
Investment Advisors
Segment Reporting Information
Net interest income	43		29
Provision for loan and lease losses			1
Net interest income (loss) after provision for loan and lease losses	43		28
Total noninterest income	100		107
Total noninterest expense	107		115
Income (Loss) Before Income Taxes	36		20
Applicable income tax benefit	13		7
Net income (loss)	23		13
Net income attributable to Bancorp	23		13
Net income available to common shareholders	23		13
Total goodwill	148		148
Total Assets	8,900		10,042
General Corporate and Other
Segment Reporting Information
Net interest income	(77)		(14)
Provision for loan and lease losses	8		(30)
Net interest income (loss) after provision for loan and lease losses	(85)		16
Total noninterest income	75		82
Total noninterest expense	20		(7)
Income (Loss) Before Income Taxes	(30)		105
Applicable income tax benefit	(5)		39
Net income (loss)	(25)		66
Net income attributable to Bancorp	(25)		66
Dividends on preferred stock	15		15
Net income available to common shareholders	(40)		51
Total Assets	(3,125)		(2,812)
Intersegment Elimination
Segment Reporting Information
Total noninterest income	(33)	[5]	(38)	[6]
Total noninterest expense	$ (33)		$ (38)

[1] Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Consolidated Balance Sheets were adjusted to reflect the reclassification of $34 million of debt issuance costs from other assets to long-term debt. For further information refer to Note 3.

[2] Includes an impairment charge of $30 for operating lease equipment. For more information, refer to Note 20.

[3] Includes an impairment charge of $2 for branches and land. For more information refer to Note 7 and Note 20.

[4] Includes an impairment charge of $4 for branches and land. For more information, refer to Note 7 and Note 20.

[5] Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income.

[6] Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income.

XML

Results of Operations and Average Assets by Segment (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information
Other Asset Impairment Charges		$ (30)
Operating lease equipment
Segment Reporting Information
Other Asset Impairment Charges		30
Branch Banking
Segment Reporting Information
Impairment of Branches and Land	$ 2	$ 4

XML

Subsequent Event - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
Subsequent Event
Gain On Branch Consolidation And Sales Plan	$ 8
Subsequent events | Pittsburgh Sale to First National Bank of Pennsylvania
Subsequent Event
Gain On Branch Consolidation And Sales Plan	$ 11
Subsequent Events Date	Apr. 22, 2016
Loans Sold	$ 99
Deposits Sold	302
Premises And Equipment Sold	$ 16