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Published: 2020-10-22 06:30:54 ET
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EX-99.1 2 q32020earningsrelease.htm EX-99.1 Document

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Fifth Third Announces Third Quarter 2020 Results
Reported diluted earnings per share of $0.78
Reported results included a negative $0.07 impact from certain items on page 2
Key Financial DataKey Highlights
$ millions for all balance sheet and income statement items
3Q20
2Q20
3Q19
–Very strong reported and adjusted return metrics, reflecting strong operating results
–Credit losses well below previous expectations with a NCO ratio of 0.35%, the lowest level since 2Q19
–PPNR(a) exceeded previous guidance, led by strong fees and better-than-expected NII performance (interest-bearing core deposit costs down 14 bps, more than previous guidance)
–3Q20 NIM was negatively impacted ~48 bps due to excess liquidity and Paycheck Protection Program (PPP) loans
–Strong balance sheet; CET1 ratio of 10.14% well above target range, with record balance sheet liquidity
–Grew tangible book value per share for six consecutive quarters
Income Statement Data
Net income available to common shareholders$562$163$530
Net interest income (U.S. GAAP)1,1701,2001,242
Net interest income (FTE)(a)
1,1731,2031,246
Noninterest income722650740
Noninterest expense1,1611,1211,159
Per Share Data
Earnings per share, basic$0.78$0.23$0.72
Earnings per share, diluted0.780.230.71
Book value per share29.2528.8827.32
Tangible book value per share(a)
23.0622.6621.06
Balance Sheet & Credit Quality
Average portfolio loans and leases$113,362$118,506$109,541
Average deposits155,911150,598125,206
Net charge-off ratio(b)
0.35%0.44%0.36%
Nonperforming asset ratio(c)
0.840.650.47
Financial Ratios
Return on average assets1.14%0.40%1.28%
Return on average common equity10.73.210.7
Return on average tangible common equity(a)
13.84.314.2
CET1 capital(d)(e)
10.149.729.56
Net interest margin(a)
2.582.753.32
Efficiency(a)
61.360.558.4
Other than the Quarterly Financial Review tables beginning on page 13, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.

CEO Commentary

"Our third quarter results were very strong despite the challenging operating dynamics. We remain intently focused on taking appropriate actions for our customers, our employees, and our communities during these uncertain times. I am very proud of the way our employees have responded to support our customers and each other.

Our financial performance once again highlighted the strength of our franchise and our ability to navigate the current environment. Our already strong capital and liquidity levels further improved this quarter, and our credit performance was better than previous expectations, indicative of our balance sheet strength which will serve us well throughout this challenging environment.

We have consistently communicated our through-the-cycle principles of disciplined client selection, conservative underwriting, and an overall balance sheet management approach focused on long-term performance. We have also executed numerous strategic actions over the last several years in anticipation of an eventual downturn in the economy.

Given the anticipated revenue headwinds, we are very focused on optimizing our expense base to maintain healthy levels of returns. To that end, we took proactive measures during the quarter to ensure Fifth Third continues to generate sustainable, long-term value for shareholders. We continue to believe we are well-positioned to emerge from the pandemic as a top performing regional bank."


-Greg D. Carmichael, Chairman, President and CEO
Investor contact: Chris Doll (513) 534-2345 | Media contact: Ed Loyd (513) 534-6397 October 22, 2020

Income Statement Highlights
($ in millions, except per share data)For the Three Months Ended% Change
SeptemberJuneSeptember
202020202019SeqYr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,173$1,203$1,246(2)%(6)%
(Benefit from) provision for credit losses(15)485134NMNM
Noninterest income72265074011%(2)%
Noninterest expense1,1611,1211,1594%—
Income before income taxes(a)
$749$247$693203%8%
Taxable equivalent adjustment$3$3$4—(25)%
Applicable income tax expense16549140237%18%
Net income$581$195$549198%6%
Dividends on preferred stock193219(41)%—
Net income available to common shareholders$562$163$530245%6%
Earnings per share, diluted$0.78$0.23$0.71239%10%
Fifth Third Bancorp (NASDAQ®: FITB) today reported third quarter 2020 net income of $581 million compared to net income of $195 million in the prior quarter and $549 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $562 million, or $0.78 per diluted share, compared to $163 million, or $0.23 per diluted share, in the prior quarter and $530 million, or $0.71 per diluted share, in the year-ago quarter.

Diluted earnings per share impact of certain items - 3Q20
(after-tax impacts(f); $ in millions, except per share data)
Valuation of Visa total return swap within other noninterest income$(17)
Restructuring charges:
    Severance expense within compensation and benefits expense(15)
    Branch and non-branch real estate charges within other noninterest income(8)
    Rent impairment charges within net occupancy expense(7)
COVID-19-related expenses(g)
(4)
After-tax impact(f) of certain items
$(51)
Diluted earnings per share impact of certain items$(0.07)
Diluted earnings per share impact reflect 718.894 million average diluted shares outstanding

2

Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended% Change
SeptemberJuneSeptember
202020202019SeqYr/Yr
Interest Income
Interest income$1,332 $1,406 $1,629 (5)%(18)%
Interest expense159203383(22)%(58)%
Net interest income (NII)$1,173 $1,203 $1,246 (2)%(6)%
Adjusted NII(a)
$1,160$1,188$1,218(2)%(5)%
Average Yield/Rate Analysisbps Change
Yield on interest-earning assets2.93 %3.21 %4.34 %(28)(141)
Rate paid on interest-bearing liabilities0.51 %0.66 %1.41 %(15)(90)
Ratios
Net interest rate spread2.42 %2.55 %2.93 %(13)(51)
Net interest margin (NIM)2.58 %2.75 %3.32 %(17)(74)
Adjusted NIM(a)
2.55 %2.71 %3.25 %(16)(70)
Compared to the prior quarter, reported NII decreased $30 million, or 2%. Excluding purchase accounting accretion of $13 million in the current quarter and $15 million in the prior quarter, adjusted NII decreased $28 million, or 2%. The decrease was primarily attributable to a decline in commercial and industrial (C&I) loans and the impact of lower market rates. These impacts were partially offset by the actions taken to reduce deposit costs, the full-quarter impact of PPP loans, the favorable impact of previously executed cash flow hedges, and day count. Compared to the prior quarter, reported and adjusted NIM decreased 17 bps and 16 bps, respectively, driven by the unfavorable impacts from elevated cash balances (approximately 15 bps drag on NIM compared to the prior quarter), lower market rates, and lower C&I loan balances, partially offset by benefits from lower deposit costs and previously executed cash flow hedges. NIM was negatively impacted approximately 48 bps due to PPP loans and excess liquidity compared to historical balances.
Compared to the year-ago quarter, reported NII decreased $73 million, or 6%. Excluding purchase accounting accretion, adjusted NII decreased $58 million, or 5%, primarily reflecting lower market rates and lower commercial loan balances, partially offset by reduced deposit costs and the favorable impact of previously executed cash flow hedges, as well as growth in both the indirect secured consumer (predominantly indirect automobile) and lower-yielding PPP portfolios. Compared to the year-ago quarter, reported NIM decreased 74 bps. Adjusted NIM, which excludes purchase accounting accretion, decreased 70 bps, primarily reflecting the impact of elevated cash balances and lower market rates, partially offset by benefits from lower deposit costs and previously executed cash flow hedges.
3

Noninterest Income
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202020202019SeqYr/Yr
Noninterest Income
Service charges on deposits$144$122$14318%1%
Commercial banking revenue125137123(9)%2%
Mortgage banking net revenue769995(23)%(20)%
Wealth and asset management revenue13212012410%6%
Card and processing revenue92829412%(2)%
Leasing business revenue77579235%(16)%
Other noninterest income261264117%(59)%
Securities gains, net51215143%920%
Securities losses, net - non-qualifying hedges
   on mortgage servicing rights(1)——NMNM
Total noninterest income$722$650$74011%(2)%
Reported noninterest income increased $72 million, or 11%, from the prior quarter, and decreased $18 million, or 2%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below. Reported results in the current quarter include securities gains, including approximately $5 million attributable to mark-to-market impacts related to non-qualified deferred compensation assets, which were offset in noninterest expense, resulting in an immaterial impact to pre-tax income.

Noninterest Income excluding certain items
($ in millions)For the Three Months Ended
SeptemberJuneSeptember
202020202019
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)$722 $650 $740 
Valuation of Visa total return swap222911
Branch and non-branch real estate charges1012—
Securities gains, net (51)(21)(5)
Noninterest income excluding certain items(a)
$703 $670 $746 
Compared to the prior quarter, noninterest income excluding certain items increased $33 million, or 5%. Compared to the year-ago quarter, noninterest income excluding certain items decreased $43 million, or 6%.
Compared to the prior quarter, service charges on deposits increased $22 million, or 18%, with improving commercial deposit fees reflecting a partial normalization of treasury management service volumes and lower earnings credits, as well as elevated consumer deposit fees compared to the prior quarter which included hardship-related fee waivers. Commercial banking revenue decreased $12 million, or 9%, primarily reflecting a decrease from the record high capital markets revenue in the prior quarter. Mortgage banking net revenue decreased $23 million, or 23%, primarily driven by an unfavorable MSR net valuation adjustment and an increase in MSR decay resulting from higher prepayment speeds. Current quarter mortgage originations of $4.5 billion increased 32% compared to the prior quarter. Wealth and asset management revenue increased $12 million, or 10%, primarily driven by higher personal asset management revenue and brokerage fees. Card and processing revenue increased $10 million, or 12%, reflecting increases in credit and debit transaction volumes. Leasing business revenue increased $20 million, or 35%, primarily driven by an increase in business solutions revenue.
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Compared to the year-ago quarter, service charges on deposits increased $1 million, or 1%, as increased commercial deposit fees were partially offset by a decline in consumer deposit fees. Commercial banking revenue increased $2 million, or 2%, reflecting increases in both debt and equity capital markets revenue, partially offset by lower M&A advisory fees and financial risk management revenue. Mortgage banking net revenue decreased $19 million, or 20%, primarily driven by an unfavorable MSR net valuation adjustment and an increase in MSR decay resulting from higher prepayment speeds, partially offset by improved gain on sale margin and higher mortgage originations. Wealth and asset management revenue increased $8 million, or 6%, primarily driven by higher personal asset management revenue and brokerage fees. Card and processing revenue decreased by $2 million, or 2%, primarily reflecting lower commercial card transaction volumes, partially offset by elevated debit transaction volumes and lower rewards. Leasing business revenue decreased $15 million, or 16% primarily reflecting lower lease remarketing revenue.
Noninterest Expense
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202020202019SeqYr/Yr
Noninterest Expense
Compensation and benefits$637 $627 $584 2%9%
Net occupancy expense90828410%7%
Technology and communications8990100(1)%(11)%
Equipment expense3332333%—
Card and processing expense292933—(12)%
Leasing business expense3533406%(13)%
Marketing expense23204015%(43)%
Intangible amortization expense121214—(14)%
Other noninterest expense2131962319%(8)%
Total noninterest expense$1,161 $1,121 $1,159 4%—
Reported noninterest expense increased $40 million, or 4%, from the prior quarter, and increased $2 million from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
Noninterest Expense excluding certain items
($ in millions)For the Three Months Ended
SeptemberJuneSeptember
202020202019
Noninterest Expense excluding certain items
Noninterest expense (U.S. GAAP)$1,161 $1,121 $1,159 
Restructuring severance expense(19)——
Intangible amortization expense(12)(12)(14)
Rent impairment charges(9)——
COVID-19 related expenses(g)
(5)(12)—
Merger-related expenses—(9)(28)
FHLB debt extinguishment charge—(6)—
Noninterest expense excluding certain items(a)
$1,116 $1,082 $1,117 
Compared to the prior quarter, noninterest expense excluding certain items increased $34 million, or 3%, primarily reflecting an increase in other noninterest expense and marketing expense, partially offset by lower compensation and benefits expense (which included approximately $7 million in non-qualified deferred compensation expense in the current quarter compared to a $22 million expense in the prior quarter). Compared to the year-ago quarter, noninterest expense excluding certain items decreased $1 million, primarily reflecting lower marketing expense and other noninterest expense, partially offset by an increase in compensation and benefits expense.
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Average Interest-Earning Assets
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202020202019SeqYr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans$54,004 $59,040 $51,241 (9)%5%
Commercial mortgage loans11,06911,22210,692(1)%4%
Commercial construction loans5,5345,5485,267—5%
Commercial leases2,9663,0563,562(3)%(17)%
Total commercial loans and leases$73,573$78,866$70,762(7)%4%
Consumer loans:
Residential mortgage loans$16,618$16,561$16,736—(1)%
Home equity5,5815,8206,267(4)%(11)%
Indirect secured consumer loans12,59912,12410,7074%18%
Credit card2,1342,2482,448(5)%(13)%
Other consumer loans2,8572,8872,621(1)%9%
Total consumer loans$39,789$39,640$38,779—3%
Total average portfolio loans and leases$113,362 $118,506 $109,541 (4)%3%
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$55$68$127(19)%(57)%
Consumer loans held for sale1,19684499842%20%
Total average loans and leases held for sale$1,251$912$1,12537%11%
Securities and other short-term investments$66,091$56,806$38,18816%73%
Total average interest-earning assets$180,704$176,224$148,8543%21%
Compared to the prior quarter, total average portfolio loans and leases decreased 4%, primarily driven by a decline in C&I loans, partially offset by an increase in indirect secured consumer loans (predominantly indirect automobile). Average commercial portfolio loans and leases decreased 7%, reflecting lower C&I revolving line of credit utilization and a decline in commercial mortgage loans, partially offset by the full-quarter impact of PPP loans. Average consumer portfolio loans were flat, as higher indirect secured consumer loans were offset by lower home equity and credit card balances.
Compared to the year-ago quarter, total average portfolio loans and leases increased 3%, reflecting growth in C&I loans as well as continued growth in indirect secured consumer loans. Average commercial portfolio loans and leases increased 4%, reflecting elevated C&I balances predominantly from PPP loans and growth in commercial mortgage loans, partially offset by the expected decline in commercial leases. Average consumer portfolio loans increased 3%, as higher indirect secured consumer loans were partially offset by lower home equity and credit card balances.

Total period-end commercial portfolio loans and leases of $71 billion (including $5.2 billion in PPP loan balances) decreased $4 billion, or 6%, from the prior quarter, and increased $1 billion, or 1%, from the year-ago quarter. The sequential decline reflected lower revolving line utilization throughout the current quarter. Period-end commercial revolving line utilization was 33%, compared to 38% in the prior quarter and 36% in the year-ago quarter.
Average available-for-sale debt and other securities of $35.4 billion (amortized cost) decreased 2% compared to the prior quarter and increased 2% compared to the year-ago quarter. Average other short-term investments (which includes interest-bearing cash) of $29.8 billion increased $10 billion compared to the prior quarter and increased $27.3 billion compared to the year-ago quarter.
6

Average Deposits
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202020202019SeqYr/Yr
Average Deposits
Demand$50,414 $45,761 $35,223 10%43%
Interest checking49,80049,76037,729—32%
Savings17,01316,35414,4054%18%
Money market31,15130,02226,9624%16%
Foreign office(h)
1891822224%(15)%
Total transaction deposits$148,567$142,079$114,5415%30%
Other time3,7114,4215,823(16)%(36)%
Total core deposits$152,278$146,500$120,3644%27%
Certificates - $100,000 and over3,6334,0674,795(11)%(24)%
Other deposits—3147(100)%(100)%
Total average deposits$155,911 $150,598 $125,206 4%25%
Compared to the prior quarter, average core deposits increased 4%, with growth in all deposit captions except other time deposits. Average demand deposits represented 33% of total core deposits in the current quarter compared to 31% in the prior quarter. Average commercial transaction deposits increased 6% and average consumer transaction deposits increased 3%.
Compared to the year-ago quarter, average core deposits increased 27%, reflecting double-digit growth in all deposit captions except other time and foreign office deposits. Average commercial transaction deposits increased 47% and average consumer transaction deposits increased 14%.
The period end loan-to-core deposit ratio was 72% in the current quarter, compared to 75% in the prior quarter and 91% in the year-ago quarter. Excluding PPP loans, the period end loan-to-core deposit ratio was 69% in the current quarter, compared to 72% in the prior quarter.

Average Wholesale Funding
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202020202019SeqYr/Yr
Average Wholesale Funding
Certificates - $100,000 and over$3,633 $4,067 $4,795 (11)%(24)%
Other deposits—3147(100)%(100)%
Federal funds purchased273309739(12)%(63)%
Other short-term borrowings1,6262,3771,278(32)%27%
Long-term debt16,23016,95515,633(4)%4%
Total average wholesale funding$21,762$23,739$22,492(8)%(3)%
Compared to the prior quarter, average wholesale funding decreased 8%, driven by a reduction in other short-term borrowings reflecting lower FHLB advances, lower jumbo CD balances, as well as the full-quarter impact of a debt redemption that occurred at the end of the second quarter. Compared to the year-ago quarter, average wholesale funding decreased 3%, reflecting decreases in jumbo CD balances, federal funds borrowings and other deposits, partially offset by increases in long-term debt and other short-term borrowings.
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Credit Quality Summary
($ in millions)As of and For the Three Months Ended
SeptemberJuneMarchDecemberSeptember
20202020202020192019
Total nonaccrual portfolio loans and leases (NPLs)$891$700$647$618$482
Repossessed property7410109
OREO3343525228
Total nonperforming portfolio loans and leases and OREO (NPAs)$931$747$709$680$519
NPL ratio(i)
0.80 %0.61 %0.55 %0.56 %0.44 %
NPA ratio(c)
0.84 %0.65 %0.60 %0.62 %0.47 %
Total loans and leases 30-89 days past due (accrual)$323$381$409$364$402
Total loans and leases 90 days past due (accrual)139136151130132
Allowance for loan and lease losses (ALLL), beginning$2,696 $2,348 $1,202 $1,143 $1,115 
Impact of CECL adoption——643——
Total net losses charged-off(101)(130)(122)(113)(99)
(Benefit from) provision for loan and lease losses(21)478625172127
ALLL, ending$2,574$2,696$2,348$1,202$1,143
Reserve for unfunded commitments, beginning$176$169$144$154$147
Impact of CECL adoption——10——
Provision for (benefit from) the reserve for unfunded commitments6715(10)7
Reserve for unfunded commitments, ending$182$176$169$144$154
Total allowance for credit losses (ACL)$2,756 $2,872 $2,517 $1,346 $1,297 
ACL ratios:
As a % of portfolio loans and leases2.49 % 2.50 % 2.13 % 1.23 % 1.19 % 
As a % of nonperforming portfolio loans and leases309 % 410 % 389 % 218 % 269 % 
As a % of nonperforming portfolio assets296 % 385 % 355 % 198 % 250 % 
ALLL as a % of portfolio loans and leases2.32 %2.34 %1.99 %1.10 %1.04 %
Total losses charged-off$(135)$(163)$(159)$(152)$(130)
Total recoveries of losses previously charged-off3433373931
Total net losses charged-off$(101)$(130)$(122)$(113)$(99)
Net charge-off ratio (NCO ratio)(b)
0.35 %0.44 %0.44 %0.41 %0.36 %
Commercial NCO ratio0.33 %0.40 %0.32 %0.20 %0.18 %
Consumer NCO ratio0.40 %0.52 %0.66 %0.78 %0.68 %
Nonperforming portfolio loans and leases were $891 million in the current quarter, with the resulting NPL ratio of 0.80%. Compared to the prior quarter, NPLs increased $191 million with the NPL ratio increasing 19 bps. Compared to the year-ago quarter, NPLs increased $409 million with the NPL ratio increasing 36 bps.
Nonperforming portfolio assets were $931 million in the current quarter, with the resulting NPA ratio of 0.84%. Compared to the prior quarter, NPAs increased $184 million with the NPA ratio increasing 19 bps. Compared to the year-ago quarter, NPAs increased $412 million with the NPA ratio increasing 37 bps.

8

The benefit from credit losses totaled $15 million in the current quarter. The allowance for credit loss ratio represented 2.49% of total portfolio loans and leases in the current quarter, compared with 2.50% in the prior quarter and 1.19% in the year-ago quarter (under the incurred loss methodology). In the current quarter, the allowance for credit losses represented 309% of nonperforming portfolio loans and leases and 296% of nonperforming portfolio assets. The allowance for loan and lease losses ratio represented 2.32% of total portfolio loans and leases in the current quarter.
Net charge-offs were $101 million in the current quarter, with the resulting NCO ratio of 0.35%. Compared to the prior quarter, net charge-offs decreased $29 million and the NCO ratio decreased 9 bps. Compared to the year-ago quarter, net charge-offs increased $2 million and the NCO ratio decreased 1 bp.

Capital Position
As of and For the Three Months Ended
SeptemberJuneMarchDecemberSeptember
20202020202020192019
Capital Position
Average total Bancorp shareholders' equity as a % of average assets11.33 %11.30 %12.63%12.58%12.43 %
Tangible equity(a)
8.09 %7.68 %8.41%9.52%9.29 %
Tangible common equity (excluding AOCI)(a)
6.99 %6.77 %7.41%8.44%8.21 %
Tangible common equity (including AOCI)(a)
8.31 %8.13 %8.65%9.08%9.09 %
Regulatory Capital Ratios(e)
CET1 capital(d)
10.14 %9.72 %9.37%9.75%9.56 %
Tier I risk-based capital(d)
11.64 %10.96 %10.56%10.99%10.81 %
Total risk-based capital(d)
14.93 %14.24 %13.59%13.84%13.68 %
Tier I leverage8.37 %8.16 %9.37%9.54%9.36 %
Capital ratios remained strong and grew during the quarter. The CET1 capital ratio was 10.14%, the tangible common equity to tangible assets ratio was 6.99% excluding AOCI, and 8.31% including AOCI. The Tier I risk-based capital ratio was 11.64%, the Total risk-based capital ratio was 14.93%, and the Tier I leverage ratio was 8.37%. Certain capital ratios, including the Tier I leverage ratio, continued to be impacted by the increase in assets since the onset of the pandemic, predominantly from growth in 0% risk-weighted assets resulting from an increase in interest-bearing cash as well as PPP loans.
On September 17, 2020, the Federal Reserve released its hypothetical scenarios for its second round of stress tests under the Comprehensive Capital Analysis and Review (CCAR) process due to continued uncertainty from COVID-19. Fifth Third will be resubmitting its own base and stress scenario projections to the Federal Reserve by November 2, 2020. Additionally, on September 30, 2020, the Federal Reserve announced it has extended for an additional quarter several measures to ensure that large banks such as Fifth Third maintain a high level of capital resilience, including prohibiting share repurchases through at least the fourth quarter of 2020, as well as capping dividend payments tied to a formula based on recent income.
9

Tax Rate
The effective tax rate was 22.1% compared with 19.9% in the prior quarter and 20.2% in the year-ago quarter.
Conference Call
Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Us” then “Investor Relations”).
Those unable to listen to the live webcast may access a webcast replay through the Fifth Third Investor Relations website at the same web address.
Corporate Profile
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of September 30, 2020, the Company had $202 billion in assets and operates 1,122 full-service Banking Centers, and 2,414 Fifth Third branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 52,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of September 30, 2020, had $422 billion in assets under care, of which it managed $53 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.”
Earnings Release End Notes
(a)Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 26.
(b)Net losses charged-off as a percent of average portfolio loans and leases.
(c)Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.
(d)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 resulting in the Bancorp’s total risk-weighted assets.
(e)Current period regulatory capital ratios are estimated.
(f)Assumes a 23% tax rate.
(g)COVID-19 related expenses include incremental costs incurred for enhanced cleaning measures, personal protective equipment, one-time employee bonuses (entirely in 2Q20), and other supplies in response to the COVID-19 pandemic
(h)Includes commercial customer Eurodollar sweep balances for which the Bank pays rates comparable to other commercial deposit accounts.
(i)Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO.

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FORWARD-LOOKING STATEMENTS

This release contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “potential,” “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 as updated by our filings with the U.S. Securities and Exchange Commission (“SEC”). 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. We undertake no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this document.

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) effects of the global COVID-19 pandemic; (2) deteriorating credit quality; (3) loan concentration by location or industry of borrowers or collateral; (4) problems encountered by other financial institutions; (5) inadequate sources of funding or liquidity; (6) unfavorable actions of rating agencies; (7) inability to maintain or grow deposits; (8) limitations on the ability to receive dividends from subsidiaries; (9) cyber-security risks; (10) Fifth Third’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (11) failures by third-party service providers; (12) inability to manage strategic initiatives and/or organizational changes; (13) inability to implement technology system enhancements; (14) failure of internal controls and other risk management systems; (15) losses related to fraud, theft or violence; (16) inability to attract and retain skilled personnel; (17) adverse impacts of government regulation; (18) governmental or regulatory changes or other actions; (19) failures to meet applicable capital requirements; (20) regulatory objections to Fifth Third’s capital plan; (21) regulation of Fifth Third’s derivatives activities; (22) deposit insurance premiums; (23) assessments for the orderly liquidation fund; (24) replacement of LIBOR; (25) weakness in the national or local economies; (26) global political and economic uncertainty or negative actions; (27) changes in interest rates; (28) changes and trends in capital markets; (29) fluctuation of Fifth Third’s stock price; (30) volatility in mortgage banking revenue; (31) litigation, investigations, and enforcement proceedings by governmental authorities; (32) breaches of contractual covenants, representations and warranties; (33) competition and changes in the financial services industry; (34) changing retail distribution strategies, customer preferences and behavior; (35) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (36) potential dilution from future acquisitions; (37) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (38) results of investments or acquired entities; (39) changes in accounting standards or interpretation or declines in the value of Fifth Third’s goodwill or other intangible assets; (40) inaccuracies or other failures from the use of models; (41) effects of critical accounting policies and judgments or the use of inaccurate estimates; (42) weather-related events, other natural disasters, or health emergencies; and (43) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity.

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


11

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Quarterly Financial Review for September 30, 2020

Table of Contents


Financial Highlights13-14
Consolidated Statements of Income15-16
Consolidated Balance Sheets17-18
Consolidated Statements of Changes in Equity19
Average Balance Sheet and Yield Analysis20-21
Summary of Loans and Leases22
Regulatory Capital23
Summary of Credit Loss Experience24
Asset Quality25
Regulation G Non-GAAP Reconciliation26-28
Segment Presentation29


12

Fifth Third Bancorp and Subsidiaries
Financial Highlights% / bps% / bps
$ in millions, except per share dataFor the Three Months EndedChangeYear to DateChange
(unaudited)SeptemberJuneSeptemberSeptemberSeptember
202020202019SeqYr/Yr20202019Yr/Yr
Income Statement Data
Net interest income$1,170$1,200$1,242(3%)(6%)$3,600$3,5691%
Net interest income (FTE)(a)
1,1731,2031,246(2%)(6%)3,6103,5821%
Noninterest income72265074011%(2%)2,0432,501(18%)
Total revenue (FTE)(a)
1,8951,8531,9862%(5%)5,6536,083(7%)
Provision for (benefit from) credit losses(15)485134NMNM1,110310258%
Noninterest expense1,1611,1211,1594%—3,4823,499—
Net income581195549198%6%8231,778(54%)
Net income available to common shareholders562163530245%6%7541,718(56%)
Earnings Per Share Data
Net income allocated to common shareholders$560$162$526246%6%$751$1,702(56%)
Average common shares outstanding (in thousands):
Basic715,102714,767726,716—(2%)714,477708,8491%
Diluted718,894717,572736,086—(2%)718,943718,413—
Earnings per share, basic$0.78$0.23$0.72239%8%$1.05$2.40(56%)
Earnings per share, diluted0.780.230.71239%10%1.042.37(56%)
Common Share Data
Cash dividends per common share$0.27$0.27$0.24—13%$0.81$0.7016%
Book value per share29.2528.8827.321%7%29.2527.327%
Market price per share21.3219.2827.3811%(22%)21.3227.38(22%)
Common shares outstanding (in thousands)712,328712,202718,583—(1%)712,328718,583(1%)
Market capitalization$15,187$13,731$19,67511%(23%)$15,187$19,675(23%)
Financial Ratios
Return on average assets1.14 %0.40 %1.28 %74(14)0.58 %1.47 %(89)
Return on average common equity10.7 %3.2 %10.7 %750—4.9 %12.7 %(780)
Return on average tangible common equity(a)
13.8 %4.3 %14.2 %950(40)6.5 %16.5 %(1,000)
Noninterest income as a percent of total revenue(a)
38 %35 %37 %30010036 %41 %(500)
Dividend payout34.6%117.4%33.3%(8,280)13077.1%29.2%4,790
Average total Bancorp shareholders' equity as a percent of average assets11.33 %11.30 %12.43 %3(110)11.71 %11.99 %(28)
Tangible common equity(a)
6.99 %6.77 %8.21 %22(122)6.99 %8.21 %(122)
Net interest margin (FTE)(a)
2.58 %2.75 %3.32 %(17)(74)2.85 %3.32 %(47)
Efficiency (FTE)(a)
61.3 %60.5 %58.4 %8029061.6 %57.5 %410
Effective tax rate22.1 %19.9 %20.2 %22019021.6 %21.4 %20
Credit Quality
Net losses charged-off$101$130$99(22 %)2 %$353$25638 %
Net losses charged-off as a percent of average portfolio loans and leases0.35 %0.44 %0.36 %(9)(1)0.41 %0.32 %9
ALLL as a percent of portfolio loans and leases2.32 %2.34 %1.04 %(2)1282.32 %1.04 %128
ACL as a percent of portfolio loans and leases(g)
2.49 %2.50 %1.19 %(1)1302.49 %1.19 %130
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.84 %0.65 %0.47 %19370.84 %0.47 %37
Average Balances
Loans and leases, including held for sale$114,613$119,418$110,666(4%)4%$115,401$106,7198%
Securities and other short-term investments66,09156,80638,18816%73%54,02137,36945%
Assets202,533198,387169,5852%19%190,973162,11918%
Transaction deposits(b)
148,567142,079114,5415%30%136,293109,39625%
Core deposits(c)
152,278146,500120,3644%27%140,695114,85323%
Wholesale funding(d)
21,76223,73922,492(8%)(3%)22,44122,772(1%)
Bancorp shareholders' equity22,95222,42021,0872%9%22,36419,43015%
Regulatory Capital Ratios(e)
CET1 capital(f)
10.14 %9.72 %9.56 %425810.14 %9.56 %58
Tier I risk-based capital(f)
11.64 %10.96 %10.81 %688311.64 %10.81 %83
Total risk-based capital(f)
14.93 %14.24 %13.68 %6912514.93 %13.68 %125
Tier I leverage8.37 %8.16 %9.36 %21(99)8.37 %9.36 %(99)
Operations
Banking centers1,1221,1221,143—(2%)1,1221,143(2%)
ATMs2,4142,4562,487(2%)(3%)2,4142,487(3%)
Full-time equivalent employees20,28320,34019,478—4%20,28319,4784%
(a)Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 26.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus other time deposits.
(d)Includes certificates $100,000 and over, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)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 resulting in the Bancorp’s total risk-weighted assets.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.

13

Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share dataFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20202020202020192019
Income Statement Data
Net interest income$1,170$1,200$1,229$1,228$1,242
Net interest income (FTE)(a)
1,1731,2031,2331,2321,246
Noninterest income7226506711,035740
Total revenue (FTE)(a)
1,8951,8531,9042,2671,986
(Benefit from) provision for credit losses(15)485640162134
Noninterest expense1,1611,1211,2001,1601,159
Net income58119546734549
Net income available to common shareholders56216329701530
Earnings Per Share Data
Net income allocated to common shareholders$560$162$28$696$526
Average common shares outstanding (in thousands):
Basic715,102714,767713,556715,137726,716
Diluted718,894717,572720,363724,968736,086
Earnings per share, basic$0.78$0.23$0.04$0.97$0.72
Earnings per share, diluted0.780.230.040.960.71
Common Share Data
Cash dividends per common share$0.27$0.27$0.27$0.24$0.24
Book value per share29.2528.8828.2627.4127.32
Market value per share21.3219.2814.8530.7427.38
Common shares outstanding (in thousands)712,328712,202711,306708,916718,583
Market capitalization$15,187$13,731$10,563$21,792$19,675
Financial Ratios
Return on average assets1.14 %0.40 %0.11 %1.72 %1.28 %
Return on average common equity10.7 %3.2 %0.6 %14.2 %10.7 %
Return on average tangible common equity(a)
13.8 %4.3 %1.0 %18.7 %14.2 %
Noninterest income as a percent of total revenue(a)
38 %35 %35 %46 %37 %
Dividend payout34.6%117.4%675.0%24.7%33.3%
Average total Bancorp shareholders' equity as a percent of average assets11.33 %11.30 %12.63 %12.58 %12.43 %
Tangible common equity(a)
6.99 %6.77 %7.41 %8.44 %8.21 %
Net interest margin (FTE)(a)
2.58 %2.75 %3.28 %3.27 %3.32 %
Efficiency (FTE)(a)
61.3 %60.5 %63.0 %51.2 %58.4 %
Effective tax rate22.1 %19.9 %22.6 %22.0 %20.2 %
Credit Quality
Net losses charged-off$101$130$122$113$99
Net losses charged-off as a percent of average portfolio loans and leases0.35 %0.44 %0.44 %0.41 %0.36 %
ALLL as a percent of portfolio loans and leases2.32 %2.34 %1.99 %1.10 %1.04 %
ACL as a percent of portfolio loans and leases(g)
2.49 %2.50 %2.13 %1.23 %1.19 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.84 %0.65 %0.60 %0.62 %0.47 %
Average Balances
Loans and leases, including held for sale$114,613$119,418$112,180$110,986$110,666
Securities and other short-term investments66,09156,80639,03338,32638,188
Assets202,533198,387171,871169,327169,585
Transaction deposits(b)
148,567142,079118,096116,285114,541
Core deposits(c)
152,278146,500123,177121,792120,364
Wholesale funding(d)
21,76223,73921,83221,49122,492
Bancorp shareholders' equity22,95222,42021,71321,30421,087
Regulatory Capital Ratios(e)
CET1 capital(f)
10.14 %9.72 %9.37 %9.75 %9.56 %
Tier I risk-based capital(f)
11.64 %10.96 %10.56 %10.99 %10.81 %
Total risk-based capital(f)
14.93 %14.24 %13.59 %13.84 %13.68 %
Tier I leverage8.37 %8.16 %9.37 %9.54 %9.36 %
Operations
Banking centers1,1221,1221,1231,1491,143
ATMs2,4142,4562,4642,4812,487
Full-time equivalent employees20,28320,34020,18219,86919,478
(a)Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 26.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus other time deposits.
(d)Includes certificates $100,000 and over, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)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 resulting in the Bancorp’s total risk-weighted assets.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
14

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended% ChangeYear to Date% Change
(unaudited)SeptemberJuneSeptemberSeptemberSeptember
202020202019SeqYr/Yr20202019Yr/Yr
Interest Income
Interest and fees on loans and leases$1,047$1,115$1,320(6%)(21%)$3,397$3,799(11%)
Interest on securities274283291(3%)(6%)840862(3%)
Interest on other short-term investments851460%(43%)2033(39%)
Total interest income1,3291,4031,625(5%)(18%)4,2574,694(9%)
Interest Expense
Interest on deposits4683243(45%)(81%)295692(57%)
Interest on federal funds purchased——4NM(100%)223(91%)
Interest on other short-term borrowings528150%(38%)1323(43%)
Interest on long-term debt108118128(8%)(16%)347387(10%)
Total interest expense159203383(22%)(58%)6571,125(42%)
Net Interest Income1,1701,2001,242(3%)(6%)3,6003,5691%
Provision for (benefit from) credit losses(15)485134NMNM1,110310258%
Net Interest Income After Provision for Credit Losses1,1857151,10866%7%2,4903,259(24%)
Noninterest Income
Service charges on deposits14412214318%1%414417(1%)
Commercial banking revenue125137123(9%)2%38733316%
Mortgage banking net revenue769995(23%)(20%)29521438%
Wealth and asset management revenue13212012410%6%3873588%
Card and processing revenue92829412%(2%)260266(2%)
Leasing business revenue77579235%(16%)2071994%
Other noninterest income261264117%(59%)42679(94%)
Securities gains, net51215143%920%483060%
Securities gains (losses), net - non-qualifying hedges on mortgage servicing rights(1)——NMNM35(40%)
Total noninterest income72265074011%(2%)2,0432,501(18%)
Noninterest Expense
Compensation and benefits6376275842%9%1,9111,8434%
Net occupancy expense90828410%7%2542482%
Technology and communications8990100(1%)(11%)272319(15%)
Equipment expense3332333%—97961%
Card and processing expense292933—(12%)8998(9%)
Leasing business expense3533406%(13%)103976%
Marketing expense23204015%(43%)74117(37%)
Other noninterest expense2252082458%(8%)682681—
Total noninterest expense1,1611,1211,1594%—3,4823,499—
Income Before Income Taxes746244689206%8%1,0512,261(54%)
Applicable income tax expense16549140237%18%228483(53%)
Net Income581195549198%6%8231,778(54%)
Dividends on preferred stock193219(41%)—696015%
Net Income Available to Common Shareholders$562$163$530245%6%$754$1,718(56%)
15

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20202020202020192019
Interest Income
Interest and fees on loans and leases$1,047$1,115$1,235$1,252$1,320
Interest on securities274283283299291
Interest on other short-term investments857814
Total interest income1,3291,4031,5251,5591,625
Interest Expense
Interest on deposits4683166201243
Interest on federal funds purchased——254
Interest on other short-term borrowings52658
Interest on long-term debt108118122120128
Total interest expense159203296331383
Net Interest Income1,1701,2001,2291,2281,242
(Benefit from) provision for credit losses(15)485640162134
Net Interest Income After Provision for Credit Losses1,1857155891,0661,108
Noninterest Income
Service charges on deposits144122148149143
Commercial banking revenue125137124127123
Mortgage banking net revenue76991207395
Wealth and asset management revenue132120134129124
Card and processing revenue9282869594
Leasing business revenue7757737192
Other noninterest income2612738264
Securities gains (losses), net5121(24)105
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights(1)—3(1)—
Total noninterest income7226506711,035740
Noninterest Expense
Compensation and benefits637627647576584
Net occupancy expense9082828484
Technology and communications899093103100
Equipment expense3332323333
Card and processing expense2929313333
Leasing business expense3533353640
Marketing expense2320314440
Other noninterest expense225208249251245
Total noninterest expense1,1611,1211,2001,1601,159
Income Before Income Taxes74624460941689
Applicable income tax expense1654914207140
Net Income58119546734549
Dividends on preferred stock1932173319
Net Income Available to Common Shareholders$562$163$29$701$530
16

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of% Change
(unaudited)SeptemberJuneSeptember
202020202019SeqYr/Yr
Assets
Cash and due from banks$2,996$3,221$3,261(7%)(8%)
Other short-term investments31,28528,2433,23511%867%
Available-for-sale debt and other securities(a)
37,42538,59937,178(3%)1%
Held-to-maturity securities(b)
151618(6%)(17%)
Trading debt securities70452629734%137%
Equity securities2772734591%(40%)
Loans and leases held for sale2,3239121,223155%90%
Portfolio loans and leases:
  Commercial and industrial loans51,69555,66150,768(7%)2%
  Commercial mortgage loans10,87811,23310,822(3%)1%
  Commercial construction loans5,6565,4795,2813%7%
  Commercial leases3,0213,0613,495(1%)(14%)
Total commercial loans and leases71,25075,43470,366(6%)1%
  Residential mortgage loans16,15816,45716,675(2%)(3%)
  Home equity5,4555,6816,218(4%)(12%)
  Indirect secured consumer loans12,92512,39511,0264%17%
  Credit card2,0872,2112,467(6%)(15%)
  Other consumer loans2,8562,8752,657(1%)7%
Total consumer loans39,48139,61939,043—1%
Portfolio loans and leases110,731115,053109,409(4%)1%
Allowance for loan and lease losses(2,574)(2,696)(1,143)(5%)125%
Portfolio loans and leases, net108,157112,357108,266(4%)—
Bank premises and equipment2,0902,0532,0532%2%
Operating lease equipment8188098691%(6%)
Goodwill4,2614,2614,290—(1%)
Intangible assets157171201(8%)(22%)
Servicing rights660676910(2%)(27%)
Other assets10,82810,7898,819—23%
Total Assets$201,996$202,906$171,079—18%
Liabilities
Deposits:
  Demand$51,896$49,359$35,8935%45%
  Interest checking49,56651,58636,965(4%)34%
  Savings17,22116,89614,3542%20%
  Money market31,19230,88127,3701%14%
  Foreign office160191226(16%)(29%)
  Other time3,3373,9135,662(15%)(41%)
  Certificates $100,000 and over3,3114,1204,377(20%)(24%)
  Other deposits——500NM(100%)
Total deposits156,683156,946125,347—25%
Federal funds purchased251262876(4%)(71%)
Other short-term borrowings1,1961,2854,046(7%)(70%)
Accrued taxes, interest and expenses2,5002,5822,507(3%)—
Other liabilities3,2923,1692,4254%36%
Long-term debt15,12316,32714,474(7%)4%
Total Liabilities179,045180,571149,675(1%)20%
Equity
Common stock(c)
2,0512,0512,051——
Preferred stock2,1161,7701,77020%20%
Capital surplus3,6243,6033,5891%1%
Retained earnings18,01017,64317,7862%1%
Accumulated other comprehensive income2,8312,9511,635(4%)73%
Treasury stock(5,681)(5,683)(5,427)—5%
Total Equity22,95122,33521,4043%7%
Total Liabilities and Equity201,996202,906171,079—18%
(a) Amortized cost34,69335,78035,662(3%)(3%)
(b) Market values15 16 18 (6%)(17%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,000— — 
Outstanding, excluding treasury712,328712,202718,583— (1 %)
Treasury211,565211,690205,309— 3 %


17

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of
(unaudited)SeptemberJuneMarchDecemberSeptember
20202020202020192019
Assets
Cash and due from banks$2,996$3,221$3,282$3,278$3,261
Other short-term investments31,28528,2436,3191,9503,235
Available-for-sale debt and other securities(a)
37,42538,59938,64536,02837,178
Held-to-maturity securities(b)
1516171718
Trading debt securities704526433297297
Equity securities277273459564459
Loans and leases held for sale2,3239121,6301,4001,223
Portfolio loans and leases:
  Commercial and industrial loans51,69555,66158,25050,54250,768
  Commercial mortgage loans10,87811,23311,16010,96310,822
  Commercial construction loans5,6565,4795,4625,0905,281
  Commercial leases3,0213,0613,1233,3633,495
Total commercial loans and leases71,25075,43477,99569,95870,366
  Residential mortgage loans16,15816,45716,70116,72416,675
  Home equity5,4555,6815,9636,0836,218
  Indirect secured consumer loans12,92512,39512,05011,53811,026
  Credit card2,0872,2112,4172,5322,467
  Other consumer loans2,8562,8752,9112,7232,657
Total consumer loans39,48139,61940,04239,60039,043
Portfolio loans and leases110,731115,053118,037109,558109,409
Allowance for loan and lease losses(2,574)(2,696)(2,348)(1,202)(1,143)
Portfolio loans and leases, net108,157112,357115,689108,356108,266
Bank premises and equipment2,0902,0532,0091,9952,053
Operating lease equipment818809819848869
Goodwill4,2614,2614,2614,2524,290
Intangible assets157171184201201
Servicing rights660676685993910
Other assets10,82810,78910,9599,1908,819
Total Assets$201,996$202,906$185,391$169,369$171,079
Liabilities
Deposits:
  Demand$51,896$49,359$39,533$35,968$35,893
  Interest checking49,56651,58644,52040,40936,965
  Savings17,22116,89615,55714,24814,354
  Money market31,19230,88127,77527,27727,370
  Foreign office160191177221226
  Other time3,3373,9134,6835,2375,662
  Certificates $100,000 and over3,3114,1202,8163,7024,377
  Other deposits————500
Total deposits156,683156,946135,061127,062125,347
Federal funds purchased2512621,625260876
Other short-term borrowings1,1961,2854,5421,0114,046
Accrued taxes, interest and expenses2,5002,5822,4322,4412,507
Other liabilities3,2923,1693,5762,4222,425
Long-term debt15,12316,32716,28214,97014,474
Total Liabilities179,045180,571163,518148,166149,675
Equity
Common stock(c)
2,0512,0512,0512,0512,051
Preferred stock2,1161,7701,7701,7701,770
Capital surplus3,6243,6033,5973,5993,589
Retained earnings18,01017,64317,67718,31517,786
Accumulated other comprehensive income2,8312,9512,4771,1921,635
Treasury stock(5,681)(5,683)(5,699)(5,724)(5,427)
Total Equity22,95122,33521,87321,20321,404
Total Liabilities and Equity$201,996$202,906$185,391$169,369$171,079
(a) Amortized cost$34,693$35,780$36,428$34,966$35,662
(b) Market values1516171718
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,0002,000,0002,000,000
Outstanding, excluding treasury712,328712,202711,306708,916718,583
Treasury211,565211,690212,586214,977205,309
18

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months EndedYear to Date
SeptemberSeptemberSeptemberSeptember
2020201920202019
Total Equity, Beginning$22,335$20,671$21,203$16,250
Net income5815498231,778
Other comprehensive income, net of tax:
Change in unrealized gains (losses):
Available-for-sale debt securities(66)3771,2721,385
Qualifying cash flow hedges(55)79364359
Change in accumulated other comprehensive income related to employee benefit plans1133
Comprehensive income4611,0062,4623,525
Cash dividends declared:
Common stock(195)(175)(585)(518)
Preferred stock(19)(19)(69)(60)
Issuance of preferred stock346439346439
Impact of stock transactions under stock compensation plans, net23246659
Shares acquired for treasury—(350)—(1,463)
Impact of acquisition———3,159
Noncontrolling interest—(197)——
Other—5—3
Impact of cumulative effect of change in accounting principles——(472)10
Total Equity, Ending$22,951$21,404$22,951$21,404
19

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate Analysis
$ in millionsFor the Three Months Ended% ChangeYear to Date% Change
(unaudited)SeptemberJuneSeptemberSeptemberSeptember
202020202019SeqYr/Yr20202019Yr/Yr
Assets
Interest-earning assets:
  Commercial and industrial loans$54,056$59,106$51,364(9%)5%$54,948$49,89510%
  Commercial mortgage loans11,07111,22410,695(1%)4%11,1059,59316%
  Commercial construction loans5,5345,5485,267—5%5,4055,1196%
  Commercial leases2,9663,0563,563(3%)(17%)3,0743,643(16%)
Total commercial loans and leases73,62778,93470,889(7%)4%74,53268,2509%
  Residential mortgage loans17,81417,40517,7332%—17,74817,1633%
  Home equity5,5815,8206,267(4%)(11%)5,8026,333(8%)
  Indirect secured consumer loans12,59912,12410,7074%18%12,17910,03021%
  Credit card2,1342,2482,448(5%)(13%)2,2932,418(5%)
  Other consumer loans2,8582,8872,622(1%)9%2,8472,52513%
Total consumer loans40,98640,48439,7771%3%40,86938,4696%
  Taxable securities36,14736,81735,653(2%)1%36,31235,1513%
  Tax exempt securities15315638(2%)303%15735349%
  Other short-term investments29,79119,8332,49750%1,093%17,5522,183704%
Total interest-earning assets180,704176,224148,8543%21%169,422144,08818%
Cash and due from banks2,9443,1212,769(6%)6%2,9812,64113%
Other assets21,58321,39419,0771%13%20,87016,50126%
Allowance for loan and lease losses(2,698)(2,352)(1,115)15%142%(2,300)(1,111)107%
Total Assets$202,533$198,387$169,5852%19%$190,973$162,11918%
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$49,800$49,760$37,729—32%$46,631$35,99530%
  Savings deposits17,01316,35414,4054%18%16,03113,96315%
  Money market deposits31,15130,02226,9624%16%29,43425,35716%
  Foreign office deposits1891822224%(15%)193198(3%)
  Other time deposits3,7114,4215,823(16%)(36%)4,4025,457(19%)
Total interest-bearing core deposits101,864100,73985,1411%20%96,69180,97019%
  Certificates $100,000 and over3,6334,0674,795(11%)(24%)3,6854,650(21%)
  Other deposits—3147(100%)(100%)95269(65%)
  Federal funds purchased273309739(12%)(63%)4121,298(68%)
  Other short-term borrowings1,6262,3771,278(32%)27%1,9161,01788%
  Long-term debt16,23016,95515,633(4%)4%16,33315,5385%
Total interest-bearing liabilities123,626124,478107,633(1%)15%119,132103,74215%
Demand deposits50,41445,76135,22310%43%44,00433,88330%
Other liabilities5,5415,7275,522(3%)—5,4734,95011%
Total Liabilities179,581175,966148,3782%21%168,609142,57518%
Total Equity22,95222,42121,2072%8%22,36419,54414%
Total Liabilities and Equity$202,533$198,387$169,5852%19%$190,973$162,11918%
For the Three Months Endedbps ChangeYear to Datebps Change
SeptemberJuneSeptemberSeptemberSeptember
Yield/Rate Analysis202020202019SeqYr/Yr20202019Yr/Yr
Interest-earning assets:
  Commercial and industrial loans(a)
3.35 %3.47 %4.66 %(12)(131)3.67 %4.71 %(104)
  Commercial mortgage loans(a)
3.12 %3.44 %4.86 %(32)(174)3.66 %4.94 %(128)
  Commercial construction loans(a)
3.18 %3.53 %5.39 %(35)(221)3.82 %5.55 %(173)
  Commercial leases(a)
3.44 %3.47 %3.34 %(3)10 3.46 %3.31 %15 
Total commercial loans and leases3.30 %3.47 %4.68 %(17)(138)3.67 %4.73 %(106)
  Residential mortgage loans3.48 %3.53 %3.67 %(5)(19)3.55 %3.69 %(14)
  Home equity3.59 %3.60 %5.20 %(1)(161)3.98 %5.28 %(130)
  Indirect secured consumer loans3.93 %4.04 %4.22 %(11)(29)4.02 %4.05 %(3)
  Credit card11.37 %11.28 %12.57 %9 (120)11.61 %12.52 %(91)
  Other consumer loans6.46 %6.50 %7.69 %(4)(123)6.88 %7.59 %(71)
Total consumer loans4.25 %4.34 %4.87 %(9)(62)4.43 %4.86 %(43)
Total loans and leases3.64 %3.76 %4.75 %(12)(111)3.94 %4.78 %(84)
  Taxable securities3.01 %3.08 %3.24 %(7)(23)3.08 %3.28 %(20)
  Tax exempt securities(a)
2.99 %2.96 %3.18 %3 (19)3.00 %3.72 %(72)
  Other short-term investments0.10 %0.11 %2.18 %(1)(208)0.15 %1.99 %(184)
Total interest-earning assets2.93 %3.21 %4.34 %(28)(141)3.36 %4.37 %(101)
Interest-bearing liabilities:
  Interest checking deposits0.10 %0.24 %1.12 %(14)(102)0.33 %1.15 %(82)
  Savings deposits0.04 %0.06 %0.18 %(2)(14)0.07 %0.17 %(10)
  Money market deposits0.14 %0.32 %1.13 %(18)(99)0.38 %1.11 %(73)
  Foreign office deposits0.06 %0.09 %0.37 %(3)(31)0.25 %0.49 %(24)
  Other time deposits0.95 %1.21 %1.79 %(26)(84)1.27 %1.81 %(54)
Total interest-bearing core deposits0.13 %0.27 %1.01 %(14)(88)0.35 %1.01 %(66)
  Certificates $100,000 and over1.26 %1.40 %2.20 %(14)(94)1.56 %2.14 %(58)
  Other deposits— 0.04 %1.97 %(4)(197)0.76 %2.43 %(167)
  Federal funds purchased0.20 %0.16 %2.06 %4 (186)0.68 %2.42 %(174)
  Other short-term borrowings1.28 %0.32 %2.55 %96 (127)0.90 %2.97 %(207)
  Long-term debt2.62 %2.80 %3.26 %(18)(64)2.84 %3.33 %(49)
Total interest-bearing liabilities0.51 %0.66 %1.41 %(15)(90)0.74 %1.45 %(71)
(a) Presented on an FTE basis.
20

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate Analysis
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20202020202020192019
Assets
Interest-earning assets:
  Commercial and industrial loans$54,056$59,106$51,693$50,980$51,364
  Commercial mortgage loans11,07111,22411,02010,83210,695
  Commercial construction loans5,5345,5485,1325,3345,267
  Commercial leases2,9663,0563,2013,3843,563
Total commercial loans and leases73,62778,93471,04670,53070,889
  Residential mortgage loans17,81417,40518,02417,85317,733
  Home equity5,5815,8206,0066,1476,267
  Indirect secured consumer loans12,59912,12411,80911,28110,707
  Credit card2,1342,2482,4982,4962,448
  Other consumer loans2,8582,8872,7972,6792,622
Total consumer loans40,98640,48441,13440,45639,777
  Taxable securities36,14736,81735,97336,25535,653
  Tax exempt securities1531561625738
  Other short-term investments29,79119,8332,8982,0142,497
Total interest-earning assets180,704176,224151,213149,312148,854
Cash and due from banks2,9443,1212,8803,0632,769
Other assets21,58321,39419,62318,09619,077
Allowance for loan and lease losses(2,698)(2,352)(1,845)(1,144)(1,115)
Total Assets$202,533$198,387$171,871$169,327$169,585
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$49,800$49,760$40,298$38,628$37,729
  Savings deposits17,01316,35414,71514,27414,405
  Money market deposits31,15130,02227,10927,42926,962
  Foreign office deposits189182209244222
  Other time deposits3,7114,4215,0815,5075,823
Total interest-bearing core deposits101,864100,73987,41286,08285,141
  Certificates $100,000 and over3,6334,0673,3554,0724,795
  Other deposits—3125725247
  Federal funds purchased2733096541,174739
  Other short-term borrowings1,6262,3771,7501,1331,278
  Long-term debt16,23016,95515,81614,86015,633
Total interest-bearing liabilities123,626124,478109,244107,573107,633
Demand deposits50,41445,76135,76535,71035,223
Other liabilities5,5415,7275,1494,7405,522
Total Liabilities179,581175,966150,158148,023148,378
Total Equity22,95222,42121,71321,30421,207
Total Liabilities and Equity$202,533$198,387$171,871$169,327$169,585
Yield/Rate Analysis
Interest-earning assets:
  Commercial and industrial loans(a)
3.35 %3.47 %4.25 %4.32 %4.66 %
  Commercial mortgage loans(a)
3.12 %3.44 %4.44 %4.48 %4.86 %
  Commercial construction loans(a)
3.18 %3.53 %4.82 %4.88 %5.39 %
  Commercial leases(a)
3.44 %3.47 %3.46 %3.30 %3.34 %
Total commercial loans and leases3.30 %3.47 %4.28 %4.34 %4.68 %
  Residential mortgage loans3.48 %3.53 %3.63 %3.57 %3.67 %
  Home equity3.59 %3.60 %4.71 %4.80 %5.20 %
  Indirect secured consumer loans3.93 %4.04 %4.09 %4.16 %4.22 %
  Credit card11.37 %11.28 %12.13 %12.37 %12.57 %
  Other consumer loans6.46 %6.50 %7.71 %7.75 %7.69 %
Total consumer loans4.25 %4.34 %4.71 %4.74 %4.87 %
Total loans and leases3.64 %3.76 %4.44 %4.49 %4.75 %
  Taxable securities3.01 %3.08 %3.15 %3.27 %3.24 %
  Tax exempt securities(a)
2.99 %2.96 %3.04 %4.44 %3.18 %
  Other short-term investments0.10 %0.11 %0.97 %1.65 %2.18 %
Total interest-earning assets2.93 %3.21 %4.07 %4.15 %4.34 %
Interest-bearing liabilities:
  Interest checking deposits0.10 %0.24 %0.75 %0.88 %1.12 %
  Savings deposits0.04 %0.06 %0.13 %0.14 %0.18 %
  Money market deposits0.14 %0.32 %0.72 %0.89 %1.13 %
  Foreign office deposits0.06 %0.09 %0.57 %0.95 %0.37 %
  Other time deposits0.95 %1.21 %1.56 %1.75 %1.79 %
Total interest-bearing core deposits0.13 %0.27 %0.68 %0.82 %1.01 %
  Certificates $100,000 and over1.26 %1.40 %2.09 %2.14 %2.20 %
  Other deposits— 0.04 %0.85 %1.75 %1.97 %
  Federal funds purchased0.20 %0.16 %1.13 %1.74 %2.06 %
  Other short-term borrowings1.28 %0.32 %1.32 %1.89 %2.55 %
  Long-term debt2.62 %2.80 %3.12 %3.22 %3.26 %
Total interest-bearing liabilities0.51 %0.66 %1.09 %1.22 %1.41 %
Ratios:
  Net interest margin (FTE)(b)
2.58 %2.75 %3.28 %3.27 %3.32 %
  Net interest rate spread (FTE)(b)
2.42 %2.55 %2.98 %2.93 %2.93 %
  Interest-bearing liabilities to interest-earning assets68.41 %70.64 %72.24 %72.05 %72.31 %
(a) Presented on an FTE basis.
(b) Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 26.
21

Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20202020202020192019
Average Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$54,004$59,040$51,586$50,938$51,241
  Commercial mortgage loans11,06911,22211,01910,83110,692
  Commercial construction loans5,5345,5485,1325,3345,267
  Commercial leases2,9663,0563,2013,3843,562
Total commercial loans and leases73,57378,86670,93870,48770,762
Consumer loans:
  Residential mortgage loans16,61816,56116,73216,69716,736
  Home equity5,5815,8206,0066,1476,267
  Indirect secured consumer loans12,59912,12411,80911,28110,707
  Credit card2,1342,2482,4982,4962,448
  Other consumer loans2,8572,8872,7962,6792,621
Total consumer loans39,78939,64039,84139,30038,779
Total average portfolio loans and leases$113,362$118,506$110,779$109,787$109,541
Average Loans and Leases Held for Sale
Average commercial loans and leases held for sale$55$68$108$43$127
Average consumer loans held for sale1,1968441,2931,156998
Average loans and leases held for sale$1,251$912$1,401$1,199$1,125
End of Period Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$51,695$55,661$58,250$50,542$50,768
  Commercial mortgage loans10,87811,23311,16010,96310,822
  Commercial construction loans5,6565,4795,4625,0905,281
  Commercial leases3,0213,0613,1233,3633,495
Total commercial loans and leases71,25075,43477,99569,95870,366
Consumer loans:
  Residential mortgage loans16,15816,45716,70116,72416,675
  Home equity5,4555,6815,9636,0836,218
  Indirect secured consumer loans12,92512,39512,05011,53811,026
  Credit card2,0872,2112,4172,5322,467
  Other consumer loans2,8562,8752,9112,7232,657
Total consumer loans39,48139,61940,04239,60039,043
Total portfolio loans and leases$110,731$115,053$118,037$109,558$109,409
End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale$59$72$65$136$86
Consumer loans held for sale2,2648401,5651,2641,137
Loans and leases held for sale$2,323$912$1,630$1,400$1,223
Operating lease equipment$818$809$819$848$869
Loans and Leases Serviced for Others(a)
Commercial and industrial loans$903$967$947$922$916
Commercial mortgage loans585592545454446
Commercial construction loans623536462397392
Commercial leases584582302322345
Residential mortgage loans73,52178,80481,90180,73482,702
Other consumer loans5050505050
Total loans and leases serviced for others76,26681,53184,20782,87984,851
Total loans and leases serviced$190,138$198,305$204,693$194,685$196,352
(a) Fifth Third sells certain loans and leases and obtains servicing responsibilities.
22

Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millionsAs of
(unaudited)SeptemberJuneMarchDecemberSeptember
2020(a)
2020202020192019
Regulatory Capital
CET1 capital$14,306$13,935$13,840$13,847$13,568
Additional tier I capital2,1151,7691,7691,7691,769
Tier I capital16,42115,70415,60915,61615,337
Tier II capital4,6454,7034,4724,0454,076
Total regulatory capital$21,066$20,407$20,081$19,661$19,413
Risk-weighted assets(b)
$141,065$143,322$147,756$142,065$141,880
Ratios
Average total Bancorp shareholders' equity as a percent of average assets11.33 %11.30 %12.63 %12.58 %12.43 %
Regulatory Capital Ratios
Fifth Third Bancorp
CET1 capital(b)
10.14 %9.72 %9.37 %9.75 %9.56 %
Tier I risk-based capital(b)
11.64 %10.96 %10.56 %10.99 %10.81 %
Total risk-based capital(b)
14.93 %14.24 %13.59 %13.84 %13.68 %
Tier I leverage8.37 %8.16 %9.37 %9.54 %9.36 %
Fifth Third Bank
Tier I risk-based capital(b)
12.25 %11.76 %11.36 %11.86 %11.79 %
Total risk-based capital(b)
14.15 %13.65 %13.17 %13.46 %13.37 %
Tier I leverage8.85 %8.80 %10.16 %10.36 %10.26 %
(a)Current period regulatory capital data and ratios are estimated.
(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 values are added together resulting in the Bancorp’s total risk-weighted assets.
23

Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20202020202020192019
Average portfolio loans and leases:
  Commercial and industrial loans$54,004$59,040$51,586$50,938$51,241
  Commercial mortgage loans11,06911,22211,01910,83110,692
  Commercial construction loans5,5345,5485,1325,3345,267
  Commercial leases2,9663,0563,2013,3843,562
Total commercial loans and leases73,57378,86670,93870,48770,762
  Residential mortgage loans16,61816,56116,73216,69716,736
  Home equity5,5815,8206,0066,1476,267
  Indirect secured consumer loans12,59912,12411,80911,28110,707
  Credit card2,1342,2482,4982,4962,448
  Other consumer loans2,8572,8872,7962,6792,621
Total consumer loans39,78939,64039,84139,30038,779
Total average portfolio loans and leases$113,362$118,506$110,779$109,787$109,541
Losses charged-off:
  Commercial and industrial loans($45)($68)($54)($40)($30)
  Commercial mortgage loans(11)(2)(2)——
  Commercial leases(10)(11)(5)—(4)
Total commercial loans and leases(66)(81)(61)(40)(34)
  Residential mortgage loans(1)(2)(2)(4)(2)
  Home equity(4)(3)(5)(12)(5)
  Indirect secured consumer loans(11)(15)(21)(24)(21)
  Credit card(34)(40)(42)(40)(38)
  Other consumer loans(19)(22)(28)(32)(30)
Total consumer loans(69)(82)(98)(112)(96)
Total losses charged-off($135)($163)($159)($152)($130)
Recoveries of losses previously charged-off:
  Commercial and industrial loans$3$3$4$4$1
  Commercial mortgage loans—————
  Commercial leases2————
Total commercial loans and leases53441
  Residential mortgage loans21111
  Home equity32233
  Indirect secured consumer loans88988
  Credit card56675
  Other consumer loans1113151613
Total consumer loans2930333530
Total recoveries of losses previously charged-off$34$33$37$39$31
Net losses charged-off:
  Commercial and industrial loans($42)($65)($50)($36)($29)
  Commercial mortgage loans(11)(2)(2)——
  Commercial leases(8)(11)(5)—(4)
Total commercial loans and leases(61)(78)(57)(36)(33)
  Residential mortgage loans1(1)(1)(3)(1)
  Home equity(1)(1)(3)(9)(2)
  Indirect secured consumer loans(3)(7)(12)(16)(13)
  Credit card(29)(34)(36)(33)(33)
  Other consumer loans(8)(9)(13)(16)(17)
Total consumer loans(40)(52)(65)(77)(66)
Total net losses charged-off($101)($130)($122)($113)($99)
Net losses charged-off as a percent of average portfolio loans and leases:
  Commercial and industrial loans0.31 %0.45 %0.39 %0.28 %0.22 %
  Commercial mortgage loans0.39 %0.07 %0.06 %(0.02 %)(0.01 %)
  Commercial leases1.09 %1.47 %0.60 %0.06 %0.41 %
Total commercial loans and leases0.33 %0.40 %0.32 %0.20 %0.18 %
  Residential mortgage loans(0.02 %)0.02 %0.02 %0.07 %0.03 %
  Home equity0.07 %0.07 %0.17 %0.59 %0.16 %
  Indirect secured consumer loans0.11 %0.24 %0.43 %0.56 %0.50 %
  Credit card5.44 %6.17 %5.87 %5.21 %5.41 %
  Other consumer loans1.05 %1.17 %1.87 %2.51 %2.47 %
Total consumer loans0.40 %0.52 %0.66 %0.78 %0.68 %
Total net losses charged-off as a percent of average portfolio loans and leases0.35 %0.44 %0.44 %0.41 %0.36 %
24

Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20202020202020192019
Allowance for Credit Losses
Allowance for loan and lease losses, beginning$2,696$2,348$1,202$1,143$1,115
  Impact of CECL adoption——643——
  Total net losses charged-off(101)(130)(122)(113)(99)
  (Benefit from) provision for loan and lease losses(21)478625172127
Allowance for loan and lease losses, ending$2,574$2,696$2,348$1,202$1,143
Reserve for unfunded commitments, beginning$176$169$144$154$147
  Impact of CECL adoption——10——
  Provision for (benefit from) the reserve for unfunded commitments6715(10)7
Reserve for unfunded commitments, ending$182$176$169$144$154
Components of allowance for credit losses:
  Allowance for loan and lease losses$2,574$2,696$2,348$1,202$1,143
  Reserve for unfunded commitments182176169144154
Total allowance for credit losses$2,756$2,872$2,517$1,346$1,297
As of
SeptemberJuneMarchDecemberSeptember
20202020202020192019
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
  Commercial and industrial loans$266$94$100$118$70
  Commercial mortgage loans9989832117
  Commercial construction loans——11—
  Commercial leases1622182627
  Residential mortgage loans3014121312
  Home equity5052545463
  Indirect secured consumer loans85111
  Other consumer loans32222
Total nonaccrual portfolio loans and leases (excludes restructured loans)472278271236192
Nonaccrual restructured portfolio commercial loans and leases307282243231235
Nonaccrual restructured portfolio consumer loans and leases112
(c)
14013315155
Total nonaccrual portfolio loans and leases891700647618482
Repossessed property7410109
OREO3343525228
Total nonperforming portfolio loans and leases and OREO931747709680519
Nonaccrual loans held for sale101———
Nonaccrual restructured loans held for sale111713
Total nonperforming assets$942$749$710$687$532
Restructured portfolio consumer loans and leases (accrual)$818
(d)
$963$976$965$958
Restructured portfolio commercial loans and leases (accrual)$123$119$63$23$34
Loans and leases 90 days past due (accrual):
  Commercial and industrial loans$4$10$13$11$15
  Commercial mortgage loans2623201518
  Commercial construction loans————1
  Commercial leases2—10—1
Total commercial loans and leases3233432635
  Residential mortgage loans6754545048
  Home equity2——1—
  Indirect secured consumer loans1012111010
  Credit card2736424238
  Other consumer loans11111
Total consumer loans10710310810497
Total loans and leases 90 days past due (accrual)(b)
$139$136$151$130$132
Ratios
Net losses charged-off as a percent of average portfolio loans and leases0.35 %0.44 %0.44 %0.41 %0.36 %
Allowance for credit losses:
As a percent of portfolio loans and leases2.49 %2.50 %2.13 %1.23 %1.19 %
   As a percent of nonperforming portfolio loans and leases(a)
309 %410 %389 %218 %269 %
   As a percent of nonperforming portfolio assets(a)
296 %385 %355 %198 %250 %
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO(a)
0.80 %0.61 %0.55 %0.56 %0.44 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
0.84 %0.65 %0.60 %0.62 %0.47 %
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property0.83 %0.65 %0.59 %0.62 %0.48 %
(a) Excludes nonaccrual loans held for sale.
(b) Excludes loans held for sale.
(c) Excludes approximately $12 of residential mortgage loans that were modified prior to repurchase.
(d) Excludes approximately $125 of residential mortgage loans that were modified prior to repurchase.
25

Use of Non-GAAP Financial Measures
In addition to GAAP measures, management considers various non-GAAP measures when evaluating the performance of the business, including: “net interest income (FTE),” “interest income (FTE),” “net interest margin (FTE),” “net interest rate spread (FTE),” “income before income taxes (FTE),” “tangible net income available to common shareholders,” “average tangible common equity,” “return on average tangible common equity,” “tangible common equity (excluding AOCI),” “tangible common equity (including AOCI),” “tangible equity,” “tangible book value per share,” “adjusted noninterest income,” “noninterest income excluding certain items,” “adjusted noninterest expense,” “noninterest expense excluding certain items,” “pre-provision net revenue,” “adjusted efficiency ratio,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” “adjusted return on average tangible common equity, excluding accumulated other comprehensive income,” “adjusted net interest margin,” “adjusted pre-provision net revenue,” “adjusted return on average assets,” “efficiency ratio (FTE),” “total revenue (FTE),” and certain ratios derived from these measures. The Bancorp believes these non-GAAP measures provide useful information to investors because these are among the measures used by the Fifth Third management team to evaluate operating performance and to make day-to-day operating decisions.

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 and net interest margin as it provides a relevant comparison between taxable and non-taxable amounts.

The Bancorp believes tangible net income available to common shareholders, average tangible common equity, tangible common equity (excluding AOCI), tangible common equity (including AOCI), tangible equity, tangible book value per share and return on average tangible common equity are important measures for evaluating the performance of the business without the impacts of intangible items, whether acquired or created internally, in a manner comparable to other companies in the industry who present similar measures.

The Bancorp believes noninterest income, noninterest expense, net interest income, net interest margin, pre-provision net revenue, efficiency ratio, return on average common equity, return on average tangible common equity, and return on average assets are important measures that adjust for significant, unusual, or large transactions that may occur in a reporting period which management does not consider indicative of ongoing financial performance and enhances comparability of results with prior periods.

The Bancorp believes noninterest income excluding certain items and noninterest expense excluding certain items are important measures that adjust for certain components that are prone to significant period-to-period changes in order to facilitate the explanation of variances in the noninterest income and noninterest expense line items.

Management considers various measures when evaluating capital utilization and adequacy, including the tangible equity and tangible common equity (including and excluding AOCI), in addition to capital ratios defined by U.S. banking agencies. These calculations are intended to complement the capital ratios defined by U.S. banking agencies for both absolute and comparative purposes. 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. Management believes that providing the tangible common equity ratio excluding AOCI on certain assets and liabilities enables investors and others to assess the Bancorp’s use of equity without the effects of changes in AOCI, some of which are uncertain; providing the tangible common equity ratio including AOCI enables investors and others to assess the Bancorp’s use of equity if components of AOCI, such as unrealized gains or losses, were to be monetized.

Please note that although non-GAAP financial measures provide useful insight, they should not be considered in isolation or relied upon as a substitute for analysis using GAAP measures.

Please see Reg. G reconciliations of all historical non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page.
26

Fifth Third Bancorp and Subsidiaries
Regulation G Non-GAAP Reconciliation
$ and shares in millionsAs of and For the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20202020202020192019
Net interest income$1,170$1,200$1,229$1,228$1,242
Add: Taxable equivalent adjustment33444
Net interest income (FTE) (a)1,1731,2031,2331,2321,246
Net interest income (annualized) (b)4,6554,8264,9434,8724,928
Net interest income (FTE) (annualized) (c)4,6674,8384,9594,8884,943
Net interest income (FTE)1,1731,2031,2331,2321,246
Less: Net interest income impact from purchase accounting accretion1315161828
Adjusted net interest income (FTE) (d)1,1601,1881,2171,2141,218
Adjusted net interest income (FTE) (annualized) (e)4,6154,7774,8954,8164,832
Interest income1,3291,4031,5251,5591,625
Add: Taxable equivalent adjustment33444
Interest income (FTE)1,3321,4061,5291,5631,629
Interest income (FTE) (annualized) (f)5,2995,6556,1506,2016,463
Interest expense (annualized) (g)6338161,1911,3131,520
Average interest-earning assets (h)180,704176,224151,213149,312148,854
Average interest-bearing liabilities (i)123,626124,478109,244107,573107,633
Net interest margin (b) / (h)2.58 %2.74 %3.27 %3.26 %3.31 %
Net interest margin (FTE) (c) / (h)2.58 %2.75 %3.28 %3.27 %3.32 %
Adjusted net interest margin (e) / (h)2.55 %2.71 %3.24 %3.22 %3.25 %
Net interest rate spread (FTE) (f) / (h) - (g) / (i)2.42 %2.55 %2.98 %2.93 %2.93 %
Income before income taxes$746$244$60$941$689
Add: Taxable equivalent adjustment33444
Income before income taxes (FTE)$749$247$64$945$693
Net income available to common shareholders$562$163$29$701$530
Add: Intangible amortization, net of tax99101111
Tangible net income available to common shareholders (j)57117239712541
Tangible net income available to common shareholders (annualized) (k)2,2726921572,8252,146
Average Bancorp shareholders' equity22,95222,42021,71321,30421,087
Less: Average preferred stock(2,007)(1,770)(1,770)(1,770)(1,445)
Average goodwill(4,261)(4,261)(4,251)(4,260)(4,286)
Average intangible assets(164)(178)(193)(194)(208)
Average tangible common equity, including AOCI (l)16,52016,21115,49915,08015,148
Less:Average AOCI(2,919)(2,702)(1,825)(1,416)(1,444)
Average tangible common equity, excluding AOCI (m)13,60113,50913,67413,66413,704
Total Bancorp shareholders' equity22,95122,33521,87321,20321,404
Less:Preferred stock(2,116)(1,770)(1,770)(1,770)(1,770)
Goodwill(4,261)(4,261)(4,261)(4,252)(4,290)
Intangible assets(157)(171)(184)(201)(201)
Tangible common equity, including AOCI (n)16,41716,13315,65814,98015,143
Less:AOCI(2,831)(2,951)(2,477)(1,192)(1,635)
Tangible common equity, excluding AOCI (o)13,58613,18213,18113,78813,508
Add:Preferred stock2,1161,7701,7701,7701,770
Tangible equity (p)15,70214,95214,95115,55815,278
Total assets201,996202,906185,391169,369171,079
Less:Goodwill(4,261)(4,261)(4,261)(4,252)(4,290)
Intangible assets(157)(171)(184)(201)(201)
Tangible assets, including AOCI (q)197,578198,474180,946164,916166,588
Less:AOCI, before tax(3,584)(3,735)(3,135)(1,509)(2,070)
Tangible assets, excluding AOCI (r)$193,994$194,739$177,811$163,407$164,518
Common shares outstanding (s)712712711709719
Tangible equity (p) / (r)8.09 %7.68 %8.41 %9.52 %9.29 %
Tangible common equity (excluding AOCI) (o) / (r)6.99 %6.77 %7.41 %8.44 %8.21 %
Tangible common equity (including AOCI) (n) / (q)8.31 %8.13 %8.65 %9.08 %9.09 %
Tangible book value per share (n) / (s)$23.06$22.66$22.02$21.13$21.06
27

Fifth Third Bancorp and Subsidiaries
Regulation G Non-GAAP Reconciliation
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneSeptember
202020202019
Net income (t)$581$195$549
Net income (annualized) (u)2,3117842,178
Adjustments (pre-tax items)(a)
Valuation of Visa total return swap222911
Restructuring severance expense19--
Branch and non-branch real estate charges1012-
Rent impairment charges9--
COVID-19-related expenses(b)
512-
Merger-related expenses-928
FHLB debt extinguishment charge-6-
Adjustments, after-tax (v)(a)
515230
Noninterest income (w)722650740
Valuation of Visa total return swap222911
Branch and non-branch real estate charges1012-
Adjusted noninterest income (x)754691751
Noninterest expense (y)1,1611,1211,159
Restructuring severance expense(19)--
Rent impairment charges(9)--
COVID-19-related expenses(b)
(5)(12)-
Merger-related expenses-(9)(28)
FHLB debt extinguishment charge-(6)-
Adjusted noninterest expense (z)1,1281,0941,131
Intangible amortization expense121214
Adjusted noninterest expense excluding intangible amortization expense (aa)1,1161,0821,117
Adjusted net income (t) + (v)632247579
Adjusted net income (annualized) (ab)2,5149932,297
Adjusted tangible net income available to common shareholders (j) + (v)622224571
Adjusted tangible net income available to common shareholders (annualized) (ac)2,4749012,265
Average assets (ad)$202,533$198,387$169,585
Return on average tangible common equity (k) / (l)13.8 %4.3 %14.2 %
Adjusted return on average tangible common equity, including AOCI (ac) / (l)15.0 %5.6 %15.0 %
Adjusted return on average tangible common equity, excluding AOCI (ac) / (m)18.2 %6.7 %16.5 %
Return on average assets (u) / (ad)1.14 %0.40 %1.28 %
Adjusted return on average assets (ab) / (ad)1.24 %0.50 %1.35 %
Efficiency ratio (y) / [(a) + (w)]61.3 %60.5 %58.4 %
Adjusted efficiency ratio (aa) / [(d) + (x)]58.3 %57.6 %56.7 %
Total revenue (FTE) (a) + (w)$1,895$1,853$1,986
Pre-provision net revenue (PPNR) (a) + (w) - (y)$734$732$827
Adjusted pre-provision net revenue (PPNR) (d) + (x) - (aa)$798$797$852
(a) Assumes a 23% tax rate, except for merger-related expenses impacted by certain non-deductible items; (b) COVID-19 related expenses include incremental costs incurred for
enhanced cleaning measures, personal protective equipment, one-teim employee bonuses (entirely in 2Q20), and other supplies in response to the COVID-19 pandemic
28

Fifth Third Bancorp and Subsidiaries
Segment Presentation
$ in millions
(unaudited)
For the three months ended September 30, 2020
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$435$355$98$28$257$1,173
Benefit from (provision for) credit losses(337)(68)(2)—42215
Net interest income after benefit from (provision for) credit losses9828796286791,188
Noninterest income318192731327722
Noninterest expense(411)(460)(137)(133)(20)(1,161)
Income before income taxes5193227666749
Applicable income tax (expense) benefit(a)
7(4)(7)(6)(158)(168)
Net income$12$15$25$21$508$581
For the three months ended June 30, 2020
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$573$513$92$51$(26)$1,203
(Provision for) benefit from credit losses(457)(52)(10)133(485)
Net interest income after (provision for) benefit from credit losses11646182527718
Noninterest income29416798121(30)650
Noninterest expense(405)(454)(120)(122)(20)(1,121)
Income (loss) before income taxes51746051(43)247
Applicable income tax (expense) benefit(a)
7(36)(12)(11)—(52)
Net income (loss)$12$138$48$40$(43)$195
For the three months ended March 31, 2020
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$511$505$89$37$91$1,233
Provision for credit losses(45)(62)(13)(1)(519)(640)
Net interest income after provision for credit losses4664437636(428)593
Noninterest income287198124135(73)671
Noninterest expense(480)(488)(122)(143)33(1,200)
Income (loss) before income taxes2731537828(468)64
Applicable income tax (expense) benefit(a)
(49)(32)(17)(6)86(18)
Net income (loss)$224$121$61$22$(382)$46
For the three months ended December 31, 2019
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$603$569$91$41$(72)$1,232
Provision for credit losses(83)(60)(15)—(4)(162)
Net interest income after provision for credit losses5205097641(76)1,070
Noninterest income324214741292941,035
Noninterest expense(422)(485)(123)(131)1(1,160)
Income before income taxes4222382739219945
Applicable income tax expense(a)
(81)(50)(6)(8)(66)(211)
Net income$341$188$21$31$153$734
For the three months ended September 30, 2019
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$627$598$88$44$(111)$1,246
Provision for credit losses(54)(58)(14)—(8)(134)
Net interest income after provision for credit losses5735407444(119)1,112
Noninterest income33520496125(20)740
Noninterest expense(425)(469)(114)(129)(22)(1,159)
Income (loss) before income taxes4832755640(161)693
Applicable income tax (expense) benefit(a)
(90)(58)(12)(8)24(144)
Net income (loss)$393$217$44$32$(137)$549
(a) Includes taxable equivalent adjustments of $3 million, $3 million, $4 million, $4 million and $4 million for the three months ended September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively.
(b) Branch Banking provides a full range of deposit and loan and lease products to individuals and small businesses through full-service banking centers.
(c) Consumer Lending includes the Bancorp's residential mortgage, home equity, automobile and other indirect lending activities.
29