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Published: 2022-01-20 00:00:00 ET
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Fifth Third Announces Fourth Quarter 2021 Results
Reported diluted earnings per share of $0.90
Reported results included a negative $0.03 impact from certain items on page 2
Key Financial DataKey Highlights
$ millions for all balance sheet and income statement items
(fourth quarter 2021 except where noted)
4Q21
3Q21
4Q20
       Select Business Highlights:
•Generated record commercial loan production of $8.2BN (up nearly 50% compared to 3Q21) reflecting strength in corporate and middle market banking
•Record commercial banking revenue
•Record assets under management net inflows
•Generated consumer household growth of 3% vs. 4Q20
•Made special COVID staffing bonus to front-line employees ($10MM noninterest expense)
•Issued inaugural Green Bond ($500MM); first Category IV firm to issue ESG bond of any type
•Announced strategic acquisition of Dividend Finance, a point-of-sale consumer lender focused on sustainable energy solutions (~30 bps of CET1 capital; expect to close in 2Q22)
      Select Financial Highlights:
•FY21 ROTCE(a) of 16.6%; adjusted ROTCE(a) of 19.1% excl. AOCI
•Average C&I loan growth ex. PPP of 7% compared to 3Q21 (end of period growth of 11%)
•Average securities balances increased just 1% compared to 3Q21
•NCO ratio of 0.14%; NPL ratio of 0.44%; commercial criticized assets declined 13% compared to 3Q21
•Repurchased shares totaling $316 million as part of capital plan; targeting 9.0% CET1


Income Statement Data
Net income available to common shareholders$627$684$569
Net interest income (U.S. GAAP)1,1971,1891,182
Net interest income (FTE)(a)
1,2001,1921,185
Noninterest income791836787
Noninterest expense1,2061,1721,236
Per Share Data
Earnings per share, basic$0.91$0.98$0.79
Earnings per share, diluted0.900.970.78
Book value per share29.4329.5929.46
Tangible book value per share(a)
22.5822.7923.28
Balance Sheet & Credit Quality
Average portfolio loans and leases$109,487$107,970$109,360
Average deposits167,541162,647158,626
Net charge-off ratio(b)
0.14%0.08%0.43%
Nonperforming asset ratio(c)
0.470.520.79
Financial Ratios
Return on average assets1.25%1.36%1.18%
Return on average common equity12.213.010.8
Return on average tangible common equity(a)
16.116.913.9
CET1 capital(d)(e)
9.539.8610.34
Net interest margin(a)
2.552.592.58
Efficiency(a)
60.657.862.7
Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K 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
"Fifth Third has continued to deliver strong financial results while fully supporting our customers, communities, and employees. Results for the quarter reflected strong business momentum in most of our businesses, resulting in improved and diversified revenues. Net interest income excluding the impact of PPP increased 2% sequentially, benefiting from robust C&I loan growth while continuing to be disciplined in managing our excess cash position. We generated record commercial banking and wealth and asset management revenue, while mortgage revenue was impacted by environmental factors and our decision to retain a portion of our salable production. We expect the positive momentum in our businesses to carry forward into 2022 and beyond.
We had yet another quarter of benign credit results, resulting in a full year net charge-off ratio of just 16 basis points. Additionally, non-performing loans and commercial criticized assets continued to improve.
We took action in recognition of the extraordinary efforts made by our front-line employees throughout the pandemic by making a special COVID staffing bonus totaling $10 million in the fourth quarter.
We continue to focus on growing strong relationships and managing the balance sheet with a through-the-cycle perspective to generate sustainable long-term value and continue our position as a top performing regional bank."
                                      -Greg D. Carmichael, Chairman and CEO
        
Investor contact: Chris Doll (513) 534-2345 | Media contact: Ed Loyd (513) 534-6397 January 20, 2022

Income Statement Highlights
($ in millions, except per share data)For the Three Months Ended% Change
DecemberSeptemberDecember
202120212020SeqYr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,200$1,192$1,1851%1%
Benefit from credit losses(47)(42)(13)12%262%
Noninterest income791836787(5)%1%
Noninterest expense1,2061,1721,2363%(2)%
Income before income taxes(a)
$832$898$749(7)%11%
Taxable equivalent adjustment$3$3$3——
Applicable income tax expense167191142(13)%18%
Net income$662$704$604(6)%10%
Dividends on preferred stock35203575%—
Net income available to common shareholders$627$684$569(8)%10%
Earnings per share, diluted$0.90$0.97$0.78(7)%15%
Fifth Third Bancorp (NASDAQ®: FITB) today reported fourth quarter 2021 net income of $662 million compared to net income of $704 million in the prior quarter and $604 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $627 million, or $0.90 per diluted share, compared to $684 million, or $0.97 per diluted share, in the prior quarter and $569 million, or $0.78 per diluted share, in the year-ago quarter.

Diluted earnings per share impact of certain items - 4Q21
(after-tax impacts(f); $ in millions, except per share data)
Valuation of Visa total return swap (noninterest income)$(14)
Special COVID staffing bonus to front-line employees (noninterest expense)(8)
After-tax impact(f) of certain items
$(22)
Diluted earnings per share impact of certain items1
$(0.03)
1Diluted earnings per share impact reflects 697.532 million average diluted shares outstanding


Reported full year 2021 net income was $2.8 billion compared to full year 2020 net income of $1.4 billion. Full year 2021 net income available to common shareholders was $2.7 billion, or $3.73 per diluted share, compared to 2020 full year net income available to common shareholders of $1.3 billion, or $1.83 per diluted share.

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Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended% Change
DecemberSeptemberDecember
202120212020SeqYr/Yr
Interest Income
Interest income$1,297 $1,295 $1,318 —(2)%
Interest expense97103133(6)%(27)%
Net interest income (NII)$1,200 $1,192 $1,185 1%1%
Average Yield/Rate Analysisbps Change
Yield on interest-earning assets2.75 %2.81 %2.87 %(6)(12)
Rate paid on interest-bearing liabilities0.33 %0.36 %0.45 %(3)(12)
Ratios
Net interest rate spread2.42 %2.45 %2.42 %(3)—
Net interest margin (NIM)2.55 %2.59 %2.58 %(4)(3)
Compared to the prior quarter, NII increased $8 million, or 1%, primarily due to higher commercial & industrial (C&I) loan balances, seasonal mutual fund dividends and elevated prepayment penalties received in the investment portfolio, and a reduction in long-term debt, partially offset by lower yields on C&I loan balances due to continued spread compression and lower PPP-related income. PPP-related interest income was $36 million compared to $47 million in the prior quarter. Excluding the impact of PPP-related income, NII increased $19 million, or 2%, sequentially. Compared to the prior quarter, reported NIM decreased 4 bps, primarily due to a $2.6 billion increase in other short-term investments (primarily interest-bearing cash) and lower yields on C&I loans, partially offset by the aforementioned seasonal mutual fund dividends and elevated prepayment penalties received in the investment portfolio. Underlying NIM(g) decreased 1 bp sequentially. Excess liquidity and PPP had a negative impact on reported NIM of approximately 47 bps in the current quarter, compared to 44 bps in the prior quarter.
Compared to the year-ago quarter, NII increased $15 million, or 1%, primarily reflecting the benefit of GNMA forbearance loan buyout purchases, a reduction in long-term debt, higher indirect secured consumer loan balances, and lower deposit costs, partially offset by lower home equity, C&I, and construction balances as well as the impact of lower market rates. Compared to the year-ago quarter, reported NIM decreased 3 bps, primarily reflecting loan spread compression and lower market rates, partially offset by PPP-related income and lower long-term debt and deposit costs.
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Noninterest Income
($ in millions)For the Three Months Ended% Change
DecemberSeptemberDecember
202120212020SeqYr/Yr
Noninterest Income
Service charges on deposits$156$152$1463%7%
Commercial banking revenue17115214113%21%
Mortgage banking net revenue358625(59)%40%
Wealth and asset management revenue1501471332%13%
Card and processing revenue104102922%13%
Leasing business revenue747869(5)%7%
Other noninterest income120120168—(29)%
Securities (losses) gains, net(19)(1)14NMNM
Securities losses, net - non-qualifying hedges
   on mortgage servicing rights——(1)NM(100)%
Total noninterest income$791$836$787(5)%1%
Reported noninterest income decreased $45 million, or 5%, from the prior quarter, and increased $4 million, or 1%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below. Reported results include securities gains and losses, including a $17 million loss attributable to market value changes on Fifth Third's 1.7 million shares of AvidXchange Holdings, Inc. that have occurred since its initial public offering.

Noninterest Income excluding certain items
($ in millions)For the Three Months Ended
DecemberSeptemberDecember
202120212020
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)$791 $836 $787 
Valuation of Visa total return swap191730
Net disposition charges/(gain)—(60)11
Securities losses/(gains), net191(14)
Noninterest income excluding certain items(a)
$829 $794 $814 
Compared to the prior quarter, noninterest income excluding certain items increased $35 million, or 4%. Compared to the year-ago quarter, noninterest income excluding certain items increased $15 million, or 2%.
Compared to the prior quarter, service charges on deposits increased $4 million, or 3%, reflecting an increase in both commercial treasury management and consumer deposit fees. Record commercial banking revenue increased $19 million, or 13%, primarily driven by an increase in M&A advisory revenue, partially offset by lower corporate bond fees. Mortgage banking net revenue decreased $51 million, or 59%, reflecting a $41 million decrease in origination fees and gains on loan sales (including a $12 million unfavorable impact from the retention of certain mortgages originated during the quarter), and a $14 million decrease from MSR net valuation adjustments, partially offset by an increase in servicing fees. Current quarter mortgage originations of $4.3 billion decreased $0.7 billion, or 14%, compared to the prior quarter. Wealth and asset management revenue increased $3 million, or 2%, driven primarily by increased high net worth insurance and personal asset management revenue. Card and processing revenue increased $2 million, or 2%, primarily driven by higher spend volume. Leasing business revenue decreased $4 million, or 5%, primarily driven by a decrease in business solutions revenue, partially offset by an increase in lease remarketing revenue. Other noninterest income results were driven by the recognition of tax receivable agreement revenue of $46 million as well as private equity income.
Compared to the year-ago quarter, service charges on deposits increased $10 million, or 7%, reflecting an increase in both commercial treasury management and consumer deposit fees. Commercial banking revenue increased $30 million,
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or 21%, primarily driven by increases in M&A advisory revenue and loan syndication revenue, partially offset by lower corporate bond fees. Mortgage banking net revenue increased $10 million, or 40%, reflecting an $11 million decrease in MSR asset decay reflecting slower prepayment speeds and an $8 million improvement from MSR net valuation adjustments, partially offset by a $10 million decrease in origination fees and gains on loan sales. Wealth and asset management revenue increased $17 million, or 13%, primarily driven by higher personal asset management revenue and brokerage fees. Card and processing revenue increased $12 million, or 13%, primarily driven by higher spend volumes, partially offset by higher rewards. Leasing business revenue increased $5 million, or 7%, primarily reflecting increases in lease remarketing revenue.
Noninterest Expense
($ in millions)For the Three Months Ended% Change
DecemberSeptemberDecember
202120212020SeqYr/Yr
Noninterest Expense
Compensation and benefits$655 $627 $679 4%(4)%
Net occupancy expense777998(3)%(21)%
Technology and communications10398905%14%
Equipment expense3634346%6%
Card and processing expense191931—(39)%
Leasing business expense3633379%(3)%
Marketing expense35293021%17%
Other noninterest expense245253237(3)%3%
Total noninterest expense$1,206 $1,172 $1,236 3%(2)%
Reported noninterest expense increased $34 million, or 3%, from the prior quarter, and decreased $30 million, or 2%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
Noninterest Expense excluding certain items
($ in millions)For the Three Months Ended
DecemberSeptemberDecember
202120212020
Noninterest Expense excluding certain items
Noninterest expense (U.S. GAAP)$1,206 $1,172 $1,236 
Special COVID staffing bonus to front-line employees(10)——
Fifth Third Foundation contribution—(15)(25)
Branch and non-branch real estate charges——(21)
Business acquisition charges——(16)
Noninterest expense excluding certain items(a)
$1,196 $1,157 $1,174 

Compared to the prior quarter, noninterest expense excluding certain items increased $39 million, or 3%, primarily reflecting an increase in compensation and benefits, driven by higher performance-based compensation expense reflecting strong business results as well as elevated medical benefits, increased marketing expense associated with Fifth Third Momentum Banking, and an increase in technology and communications expense related to continued modernization investments.
Compared to the year-ago quarter, noninterest expense excluding certain items increased $22 million, or 2%, primarily driven by an increase in technology and communications expense related to continued modernization investments, expenses associated with the aforementioned GNMA forbearance loan buyout purchases, and an increase in travel and entertainment expense. These items were partially offset by lower card and processing expense due to contract renegotiations and a decrease in compensation and benefits expense, primarily reflecting a decline in full-time equivalent employees.
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Average Interest-Earning Assets
($ in millions)For the Three Months Ended% Change
DecemberSeptemberDecember
202120212020SeqYr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans$49,566 $47,766 $50,385 4%(2)%
Commercial mortgage loans10,24710,31710,727(1)%(4)%
Commercial construction loans5,3295,7285,820(7)%(8)%
Commercial leases3,0573,1582,932(3)%4%
Total commercial loans and leases$68,199$66,969$69,8642%(2)%
Consumer loans:
Residential mortgage loans$16,188$16,223$16,016—1%
Home equity4,1794,4095,315(5)%(21)%
Indirect secured consumer loans16,34515,59013,2725%23%
Credit card1,7391,7482,042(1)%(15)%
Other consumer loans2,8373,0312,851(6)%—
Total consumer loans$41,288$41,001$39,4961%5%
Total average portfolio loans and leases$109,487 $107,970 $109,360 1%—
Memo:
Average PPP loans$1,756$3,071$5,098(43)%(66)%
Average portfolio commercial and industrial loans - excl. PPP loans$47,810$44,695$45,2877%6%
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$5$31$56(84)%(91)%
Consumer loans held for sale5,2985,5272,048(4)%159%
Total average loans and leases held for sale$5,303$5,558$2,104(5)%152%
Securities (taxable and tax-exempt)$37,631$37,208$35,9651%5%
Other short-term investments34,62432,06534,9898%(1)%
Total average interest-earning assets$187,045$182,801$182,4182%3%
Compared to the prior quarter, total average portfolio loans and leases increased 1%, reflecting an increase in both commercial loan and lease balances and consumer loans. Average commercial portfolio loans and leases increased 2%, primarily reflecting growth in C&I loans which increased 4% (or 7% excluding the impact of PPP loans). Average consumer portfolio loans increased 1%, as higher indirect secured consumer loans were partially offset by lower home equity and other consumer loan balances.
Compared to the year-ago quarter, total average portfolio loans and leases were flat, as an increase in consumer loans was offset by lower commercial loans and leases. Average commercial portfolio loans and leases decreased 2% primarily due to PPP forgiveness and lower commercial construction loans, partially offset by higher C&I loans (which were up 6% excluding the impact of PPP loans). Average consumer portfolio loans increased 5%, as higher indirect secured consumer loans were partially offset by lower home equity and credit card balances.
Average loans and leases held for sale were $5 billion in the current quarter compared to $6 billion in the prior quarter and $2 billion in the year-ago quarter. The increase from the year-ago quarter was primarily attributable to the aforementioned GNMA forbearance loan buyout purchases within consumer loans held for sale (approximately $4.7 billion purchased since December 2020, including $0.7 billion in October 2021).
Average securities (taxable and tax-exempt) of $38 billion in the current quarter increased $0.4 billion, or 1%, compared to the prior quarter and increased $2 billion, or 5%, compared to the year-ago quarter.
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Average other short-term investments (including interest-bearing cash) of $35 billion in the current quarter increased $3 billion, or 8%, compared to the prior quarter and decreased $0.4 billion, or 1%, compared to the year-ago quarter.

Total period-end commercial portfolio loans and leases of $70 billion increased 5% compared to the prior quarter, primarily reflecting growth of 11% in C&I loans excluding PPP, partially offset by PPP forgiveness and lower construction loan balances. Compared to the year-ago quarter, total period-end commercial portfolio loans increased $1 billion, or 2%, primarily reflecting growth in C&I loans excluding PPP, partially offset by PPP forgiveness and lower construction and commercial mortgage loan balances. Period-end commercial revolving line utilization was 33%, compared to 31% in the prior quarter and 32% in the year-ago quarter.

Period-end consumer portfolio loans of $42 billion increased 1% compared to the prior quarter, as continued growth in indirect secured consumer loans was partially offset by a decline in other consumer loan and home equity balances. Compared to the year-ago quarter, total period-end consumer portfolio loans increased $2 billion, or 5%, reflecting higher indirect secured consumer loan balances, partially offset by lower home equity and other consumer loan balances.

Average Deposits
($ in millions)For the Three Months Ended% Change
DecemberSeptemberDecember
202120212020SeqYr/Yr
Average Deposits
Demand$64,828 $62,626 $56,365 4%15%
Interest checking47,38445,12847,6645%(1)%
Savings21,70220,94117,6584%23%
Money market30,56630,51431,205—(2)%
Foreign office(h)
193195161(1)%20%
Total transaction deposits$164,673$159,404$153,0533%8%
CDs $250,000 or less2,6042,9374,260(11)%(39)%
Total core deposits$167,277$162,341$157,3133%6%
CDs over $250,000 2643061,313(14)%(80)%
Total average deposits$167,541 $162,647 $158,626 3%6%
Fifth Third has elected to record CDs $250,000 or less within core deposits, consistent with minimum FDIC insurance coverage. Fifth Third had previously recorded certificates under $100,000 as "other time" within core deposits. Prior periods have been adjusted to conform to current period presentation.

Compared to the prior quarter, average core deposits increased 3%, as increases in demand, interest checking, and savings deposit balances were partially offset by decreases in certificates $250,000 or less. Average demand deposits represented 39% of total core deposits in the current quarter, consistent with the prior quarter. Average commercial transaction deposits increased 5% and average consumer transaction deposits increased 2%.
Compared to the year-ago quarter, average core deposits increased 6%, reflecting ongoing impacts of fiscal and monetary stimulus combined with success in generating consumer household growth, partially offset by the HSA deposit sale finalized near the end of the third quarter of 2021. Average commercial transaction deposits increased 3% and average consumer transaction deposits increased 13%.
The period end portfolio loan-to-core deposit ratio was 66% in the current quarter, compared to 65% in the prior quarter and 69% in the year-ago quarter.
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Average Wholesale Funding
($ in millions)For the Three Months Ended% Change
DecemberSeptemberDecember
202120212020SeqYr/Yr
Average Wholesale Funding
CDs over $250,000 $264 $306 $1,313 (14)%(80)%
Federal funds purchased315348307(9)%3%
Other short-term borrowings1,0001,1221,091(11)%(8)%
Long-term debt11,69712,05715,018(3)%(22)%
Total average wholesale funding$13,276$13,833$17,729(4)%(25)%
Fifth Third has elected to record CDs $250,000 or less within core deposits, consistent with minimum FDIC insurance coverage. Fifth Third had previously recorded certificates under $100,000 as "other time" within core deposits. As a result wholesale funding now only includes CDs over $250,000. Prior periods have been adjusted to conform to current period presentation.
Compared to the prior quarter, average wholesale funding decreased 4%, reflecting the impact of reductions in long-term debt over the past two quarters, as well as continued runoff in jumbo CD balances and other short-term borrowings. Compared to the year-ago quarter, average wholesale funding decreased 25%, reflecting decreases in long-term debt, jumbo CD balances, and other short-term borrowings.
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Credit Quality Summary
($ in millions)As of and For the Three Months Ended
DecemberSeptemberJuneMarchDecember
20212021202120212020
Total nonaccrual portfolio loans and leases (NPLs)$498$528$621$741$834
Repossessed property54579
OREO2427313521
Total nonperforming portfolio loans and leases and OREO (NPAs)$527$559$657$783$864
NPL ratio(i)
0.44 %0.49 %0.58 %0.68 %0.77 %
NPA ratio(c)
0.47 %0.52 %0.61 %0.72 %0.79 %
Total loans and leases 30-89 days past due (accrual)$254$267$281$305$357
Total loans and leases 90 days past due (accrual)1179283124163
Allowance for loan and lease losses (ALLL), beginning$1,954 $2,033 $2,208 $2,453 $2,574 
Total net losses charged-off(38)(21)(44)(71)(118)
Benefit from loan and lease losses(24)(58)(131)(174)(3)
ALLL, ending$1,892$1,954$2,033$2,208$2,453
Reserve for unfunded commitments, beginning$205$189$173$172$182
(Benefit from) provision for the reserve for unfunded commitments(23)16161(10)
Reserve for unfunded commitments, ending$182$205$189$173$172
Total allowance for credit losses (ACL)$2,074 $2,159 $2,222 $2,381 $2,625 
ACL ratios:
As a % of portfolio loans and leases1.85 % 2.00 % 2.06 % 2.19 % 2.41 % 
As a % of nonperforming portfolio loans and leases416 % 409 % 358 % 321 % 315 % 
As a % of nonperforming portfolio assets394 % 386 % 338 % 304 % 304 % 
ALLL as a % of portfolio loans and leases1.69 %1.81 %1.89 %2.03 %2.25 %
Total losses charged-off$(77)$(56)$(103)$(109)$(154)
Total recoveries of losses previously charged-off3935593836
Total net losses charged-off$(38)$(21)$(44)$(71)$(118)
Net charge-off ratio (NCO ratio)(b)
0.14 %0.08 %0.16 %0.27 %0.43 %
Commercial NCO ratio0.10 %0.03 %0.10 %0.17 %0.40 %
Consumer NCO ratio0.21 %0.16 %0.26 %0.43 %0.47 %
Nonperforming portfolio loans and leases were $498 million in the current quarter, with the resulting NPL ratio of 0.44%. Compared to the prior quarter, NPLs decreased $30 million with the NPL ratio decreasing 5 bps. Compared to the year-ago quarter, NPLs decreased $336 million with the NPL ratio decreasing 33 bps.
Nonperforming portfolio assets were $527 million in the current quarter, with the resulting NPA ratio of 0.47%. Compared to the prior quarter, NPAs decreased $32 million with the NPA ratio decreasing 5 bps. Compared to the year-ago quarter, NPAs decreased $337 million with the NPA ratio decreasing 32 bps.
The benefit from credit losses totaled $47 million in the current quarter. The allowance for credit loss ratio represented 1.85% of total portfolio loans and leases at quarter end, compared with 2.00% for the prior quarter end and 2.41% for the year-ago quarter end. In the current quarter, the allowance for credit losses represented 416% of nonperforming portfolio loans and leases and 394% of nonperforming portfolio assets.
9

Net charge-offs were $38 million in the current quarter, with the resulting NCO ratio of 0.14%. Compared to the prior quarter, net charge-offs increased $17 million and the NCO ratio increased 6 bps, reflecting higher charge-offs in both commercial and consumer portfolios. Compared to the year-ago quarter, net charge-offs decreased $80 million and the NCO ratio decreased 29 bps, reflecting improvement in both commercial and consumer portfolios.

Capital Position
As of and For the Three Months Ended
DecemberSeptemberJuneMarchDecember
20212021202120212020
Capital Position
Average total Bancorp shareholders' equity as a % of average assets10.71 %11.16 %11.11%11.26%11.34 %
Tangible equity(a)
7.97 %8.06 %8.35%8.20%8.18 %
Tangible common equity (excluding AOCI)(a)
6.94 %7.01 %7.28%7.14%7.11 %
Tangible common equity (including AOCI)(a)
7.47 %7.74 %8.18%7.95%8.29 %
Regulatory Capital Ratios(d)(e)
CET1 capital
9.53 %9.86 %10.37%10.46%10.34 %
Tier I risk-based capital
10.89 %11.28 %11.83%11.94%11.83 %
Total risk-based capital
13.40 %13.94 %14.60%14.80%15.08 %
Tier I leverage8.27 %8.41 %8.55%8.61%8.49 %
Capital ratios remained strong this quarter. The CET1 capital ratio was 9.53%, the tangible common equity to tangible assets ratio was 6.94% excluding AOCI, and 7.47% including AOCI. The Tier I risk-based capital ratio was 10.89%, the Total risk-based capital ratio was 13.40%, and the Tier I leverage ratio was 8.27%. 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 0% risk-weighted assets resulting from interest-bearing cash as well as PPP loans.
During the fourth quarter of 2021, Fifth Third repurchased approximately $316 million of its outstanding stock as part of the Company's capital plan, which reduced common shares by approximately 7.3 million at quarter end.

10

Tax Rate
The effective tax rate was 20.1% compared with 21.3% in the prior quarter and 19.1% 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, which will be available for 30 days.
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 December 31, 2021, the Company had $211 billion in assets and operates 1,117 full-service Banking Centers, and 2,322 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 54,000 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 December 31, 2021, had $554 billion in assets under care, of which it managed $65 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 reconciliation beginning on page 27.
(b)Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis.
(c)Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.
(d)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(e)Current period regulatory capital ratios are estimated.
(f)Assumes a 23% tax rate.
(g)Fourth quarter 2021 underlying NIM calculated by reducing average interest-earning assets approximately $32.1 billion resulting from excess cash compared to normalized levels (average other short term investments less a $2.5 billion normalized level) and approximately $1.8 billion from average PPP balances (with a corresponding reduction to net interest income of approximately $36 million), resulting in an underlying NIM of approximately 3.02%; Third quarter 2021 underlying NIM calculated by reducing average interest-earning assets approximately $29.6 billion resulting from excess cash compared to normalized levels (average other short term investments less a $2.5 billion normalized level) and approximately $3.1 billion from average PPP balances (with a corresponding reduction to net interest income of approximately $47 million), resulting in an underlying NIM of approximately 3.03%.
(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.



11


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. All statements other than statements of historical fact are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions 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”).

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, misappropriation 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 (including pandemics); (43) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity; (44) changes in law or requirements imposed by Fifth Third’s regulators impacting our capital actions, including dividend payments and stock repurchases; and (45) Fifth Third's ability to meet its sustainability targets, goals and commitments.

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. 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 expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.
# # #


12

er-fitbshieldv2a.gif

Quarterly Financial Review for December 31, 2021

Table of Contents


Financial Highlights14-15
Consolidated Statements of Income16-17
Consolidated Balance Sheets18-19
Consolidated Statements of Changes in Equity20
Average Balance Sheet and Yield Analysis21-22
Summary of Loans and Leases23
Regulatory Capital24
Summary of Credit Loss Experience25
Asset Quality26
Non-GAAP Reconciliation27-29
Segment Presentation30


13

Fifth Third Bancorp and Subsidiaries
Financial Highlights% / bps% / bps
$ in millions, except per share dataFor the Three Months EndedChangeYear to DateChange
(unaudited)DecemberSeptemberDecemberDecemberDecember
202120212020SeqYr/Yr20212020Yr/Yr
Income Statement Data
Net interest income$1,197$1,189$1,1821%1%$4,770$4,782—
Net interest income (FTE)(a)
1,2001,1921,1851%1%4,7824,795—
Noninterest income791836787(5%)1%3,1182,83010%
Total revenue (FTE)(a)
1,9912,0281,972(2%)1%7,9007,6254%
(Benefit from) provision for credit losses(47)(42)(13)12%262%(377)1,097NM
Noninterest expense1,2061,1721,2363%(2%)4,7484,7181%
Net income662704604(6%)10%2,7701,42794%
Net income available to common shareholders627684569(8%)10%2,6591,323101%
Earnings Per Share Data
Net income allocated to common shareholders$625$683$567(8%)10%$2,652$1,317101%
Average common shares outstanding (in thousands):
Basic688,370697,457715,482(1%)(4%)702,189714,730(2%)
Diluted697,532706,090722,096(1%)(3%)711,198719,735(1%)
Earnings per share, basic$0.91$0.98$0.79(7%)15%$3.78$1.84105%
Earnings per share, diluted0.900.970.78(7%)15%3.731.83104%
Common Share Data
Cash dividends per common share$0.30$0.30$0.27—11%$1.14$1.086%
Book value per share29.4329.5929.46(1%)—29.4329.46—
Market value per share43.5542.4427.573%58%43.5527.5758%
Common shares outstanding (in thousands)682,778689,790712,760(1%)(4%)682,778712,760(4%)
Market capitalization$29,735$29,275$19,6512%51%$29,735$19,65151%
Financial Ratios
Return on average assets1.25 %1.36 %1.18 %(11)71.34 %0.73 %61
Return on average common equity12.2 %13.0 %10.8 %(80)14012.8 %6.4 %640
Return on average tangible common equity(a)
16.1 %16.9 %13.9 %(80)22016.6 %8.4 %820
Noninterest income as a percent of total revenue(a)
40 %41 %40 %(100)—39 %37 %200
Dividend payout33.0 %30.6 %34.2 %240(120)30.2 %58.7 %NM
Average total Bancorp shareholders' equity as a percent of average assets10.71 %11.16 %11.34 %(45)(63)11.06 %11.61 %(55)
Tangible common equity(a)
6.94 %7.01 %7.11 %(7)(17)6.94 %7.11 %(17)
Net interest margin (FTE)(a)
2.55 %2.59 %2.58 %(4)(3)2.59 %2.78 %(19)
Efficiency (FTE)(a)
60.6 %57.8 %62.7 %280(210)60.1 %61.9 %(180)
Effective tax rate20.1 %21.3 %19.1 %(120)10021.2 %20.6 %60
Credit Quality
Net losses charged-off$38$21$11881 %(68 %)$174$471(63 %)
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.14 %0.08 %0.43 %6(29)0.16 %0.42 %(26)
ALLL as a percent of portfolio loans and leases1.69 %1.81 %2.25 %(12)(56)1.69 %2.25 %(56)
ACL as a percent of portfolio loans and leases(g)
1.85 %2.00 %2.41 %(15)(56)1.85 %2.41 %(56)
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.47 %0.52 %0.79 %(5)(32)0.47 %0.79 %(32)
Average Balances
Loans and leases, including held for sale$114,790$113,528$111,4641%3%$114,117$114,411—
Securities and other short-term investments72,25569,27370,9544%2%70,26158,27721%
Assets209,604205,449203,9302%3%206,324194,2306%
Transaction deposits(b)
164,673159,404153,0533%8%159,204140,50513%
Core deposits(c)(h)
167,277162,341157,3133%6%162,418145,75211%
Wholesale funding(d)(h)
13,27613,83317,729(4%)(25%)15,07920,377(26%)
Bancorp shareholders' equity22,44922,92723,126(2%)(3%)22,81222,5551%
Regulatory Capital Ratios(e)(f)
CET1 capital
9.53 %9.86 %10.34 %(33)(81)9.53 %10.34 %(81)
Tier I risk-based capital
10.89 %11.28 %11.83 %(39)(94)10.89 %11.83 %(94)
Total risk-based capital
13.40 %13.94 %15.08 %(54)(168)13.40 %15.08 %(168)
Tier I leverage8.27 %8.41 %8.49 %(14)(22)8.27 %8.49 %(22)
Operations
Banking centers1,1171,1001,1342%(1%)1,1171,134(1%)
ATMs2,3222,3362,397(1%)(3%)2,3222,397(3%)
Full-time equivalent employees19,11219,17119,872—(4%)19,11219,872(4%)
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)Fifth Third has elected to record CDs $250,000 or less within core deposits, consistent with minimum FDIC insurance coverage. Fifth Third had previously recorded certificates $100,000 or less as "other time" within core deposits. As a result, wholesale funding now only includes CDs over $250,000. Prior periods have been adjusted to conform to current period presentation.
14


Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share dataFor the Three Months Ended
(unaudited)DecemberSeptemberJuneMarchDecember
20212021202120212020
Income Statement Data
Net interest income$1,197$1,189$1,208$1,176$1,182
Net interest income (FTE)(a)
1,2001,1921,2111,1791,185
Noninterest income791836741749787
Total revenue (FTE)(a)
1,9912,0281,9521,9281,972
Benefit from credit losses(47)(42)(115)(173)(13)
Noninterest expense1,2061,1721,1531,2151,236
Net income662704709694604
Net income available to common shareholders627684674674569
Earnings Per Share Data
Net income allocated to common shareholders$625$683$673$672$567
Average common shares outstanding (in thousands):
Basic688,370697,457708,833714,433715,482
Diluted697,532706,090718,085723,425722,096
Earnings per share, basic$0.91$0.98$0.95$0.94$0.79
Earnings per share, diluted0.900.970.940.930.78
Common Share Data
Cash dividends per common share$0.30$0.30$0.27$0.27$0.27
Book value per share29.4329.5929.5728.7829.46
Market value per share43.5542.4438.2337.4527.57
Common shares outstanding (in thousands)682,778689,790703,740711,596712,760
Market capitalization$29,735$29,275$26,904$26,649$19,651
Financial Ratios
Return on average assets1.25 %1.36 %1.38 %1.38 %1.18 %
Return on average common equity12.2 %13.0 %13.0 %13.1 %10.8 %
Return on average tangible common equity(a)
16.1 %16.9 %16.6 %16.8 %13.9 %
Noninterest income as a percent of total revenue(a)
40 %41 %38 %39 %40 %
Dividend payout33.0 %30.6 %28.4 %28.7 %34.2 %
Average total Bancorp shareholders' equity as a percent of average assets10.71 %11.16 %11.11 %11.26 %11.34 %
Tangible common equity(a)
6.94 %7.01 %7.28 %7.14 %7.11 %
Net interest margin (FTE)(a)
2.55 %2.59 %2.63 %2.62 %2.58 %
Efficiency (FTE)(a)
60.6 %57.8 %59.1 %63.0 %62.7 %
Effective tax rate20.1 %21.3 %22.1 %21.4 %19.1 %
Credit Quality
Net losses charged-off$38$21$44$71$118
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.14 %0.08 %0.16 %0.27 %0.43 %
ALLL as a percent of portfolio loans and leases1.69 %1.81 %1.89 %2.03 %2.25 %
ACL as a percent of portfolio loans and leases(g)
1.85 %2.00 %2.06 %2.19 %2.41 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.47 %0.52 %0.61 %0.72 %0.79 %
Average Balances
Loans and leases, including held for sale$114,790$113,528$114,443$113,701$111,464
Securities and other short-term investments72,25569,27370,47569,01470,954
Assets209,604205,449206,353203,836203,930
Transaction deposits(b)
164,673159,404158,779153,834153,053
Core deposits(c)(h)
167,277162,341162,294157,662157,313
Wholesale funding(d)(h)
13,27613,83315,65117,60817,729
Bancorp shareholders' equity22,44922,92722,92722,95223,126
Regulatory Capital Ratios(e)(f)
CET1 capital
9.53 %9.86 %10.37 %10.46 %10.34 %
Tier I risk-based capital
10.89 %11.28 %11.83 %11.94 %11.83 %
Total risk-based capital
13.40 %13.94 %14.60 %14.80 %15.08 %
Tier I leverage8.27 %8.41 %8.55 %8.61 %8.49 %
Operations
Banking centers1,1171,1001,0961,0981,134
ATMs2,3222,3362,3692,3832,397
Full-time equivalent employees19,11219,17119,40219,81919,872
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)Fifth Third has elected to record CDs $250,000 or less within core deposits, consistent with minimum FDIC insurance coverage. Fifth Third had previously recorded certificates $100,000 or less as "other time" within core deposits. As a result, wholesale funding now only includes CDs over $250,000. Prior periods have been adjusted to conform to current period presentation.

15

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended% ChangeYear to Date% Change
(unaudited)DecemberSeptemberDecemberDecemberDecember
202120212020SeqYr/Yr20212020Yr/Yr
Interest Income
Interest and fees on loans and leases$1,000$1,014$1,028(1%)(3%)$4,079$4,424(8%)
Interest on securities2812662786%1%1,0901,119(3%)
Interest on other short-term investments131298%44%422945%
Total interest income1,2941,2921,315—(2%)5,2115,572(6%)
Interest Expense
Interest on deposits111227(8%)(59%)59322(82%)
Interest on federal funds purchased———NMNM—2(100%)
Interest on other short-term borrowings——1NM(100%)214(86%)
Interest on long-term debt8691105(5%)(18%)380452(16%)
Total interest expense97103133(6%)(27%)441790(44%)
Net Interest Income1,1971,1891,1821%1%4,7704,782—
(Benefit from) provision for credit losses(47)(42)(13)12%262%(377)1,097NM
Net Interest Income After (Benefit from) Provision for Credit Losses1,2441,2311,1951%4%5,1473,68540%
Noninterest Income
Service charges on deposits1561521463%7%6005597%
Commercial banking revenue17115214113%21%63752821%
Mortgage banking net revenue358625(59%)40%270320(16%)
Wealth and asset management revenue1501471332%13%58652013%
Card and processing revenue104102922%13%40235214%
Leasing business revenue747869(5%)7%3002769%
Other noninterest income120120168—(29%)33221157%
Securities (losses) gains, net(19)(1)14NMNM(7)62NM
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights——(1)NM(100%)(2)2NM
Total noninterest income791836787(5%)1%3,1182,83010%
Noninterest Expense
Compensation and benefits6556276794%(4%)2,6262,5901%
Net occupancy expense777998(3%)(21%)312350(11%)
Technology and communications10398905%14%3883627%
Equipment expense3634346%6%1381306%
Card and processing expense191931—(39%)89121(26%)
Leasing business expense3633379%(3%)137140(2%)
Marketing expense35293021%17%1071043%
Other noninterest expense245253237(3%)3%9519213%
Total noninterest expense1,2061,1721,2363%(2%)4,7484,7181%
Income Before Income Taxes829895746(7%)11%3,5171,79796%
Applicable income tax expense167191142(13%)18%747370102%
Net Income662704604(6%)10%2,7701,42794%
Dividends on preferred stock35203575%—1111047%
Net Income Available to Common Shareholders$627$684$569(8%)10%$2,659$1,323101%
16

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended
(unaudited)DecemberSeptemberJuneMarchDecember
20212021202120212020
Interest Income
Interest and fees on loans and leases$1,000$1,014$1,035$1,030$1,028
Interest on securities281266279264278
Interest on other short-term investments1312989
Total interest income1,2941,2921,3231,3021,315
Interest Expense
Interest on deposits1112152127
Interest on other short-term borrowings———11
Interest on long-term debt8691100104105
Total interest expense97103115126133
Net Interest Income1,1971,1891,2081,1761,182
Benefit from credit losses(47)(42)(115)(173)(13)
Net Interest Income After Benefit from Credit Losses1,2441,2311,3231,3491,195
Noninterest Income
Service charges on deposits156152149144146
Commercial banking revenue171152160153141
Mortgage banking net revenue3586648525
Wealth and asset management revenue150147145143133
Card and processing revenue1041021029492
Leasing business revenue7478618769
Other noninterest income1201204942168
Securities (losses) gains, net(19)(1)10314
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights——1(2)(1)
Total noninterest income791836741749787
Noninterest Expense
Compensation and benefits655627638706679
Net occupancy expense7779777998
Technology and communications10398949390
Equipment expense3634343434
Card and processing expense1919203031
Leasing business expense3633333537
Marketing expense3529202330
Other noninterest expense245253237215237
Total noninterest expense1,2061,1721,1531,2151,236
Income Before Income Taxes829895911883746
Applicable income tax expense167191202189142
Net Income662704709694604
Dividends on preferred stock3520352035
Net Income Available to Common Shareholders$627$684$674$674$569
17

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of% Change
(unaudited)DecemberSeptemberDecember
202120212020SeqYr/Yr
Assets
Cash and due from banks$2,994$3,213$3,147(7%)(5%)
Other short-term investments34,57234,20333,3991%4%
Available-for-sale debt and other securities(a)
38,11037,87037,5131%2%
Held-to-maturity securities(b)
8811—(27%)
Trading debt securities512685560(25%)(9%)
Equity securities37632931314%20%
Loans and leases held for sale4,4155,2034,741(15%)(7%)
Portfolio loans and leases:
  Commercial and industrial loans51,65947,83449,6658%4%
  Commercial mortgage loans10,31610,30010,602—(3%)
  Commercial construction loans5,2415,4565,815(4%)(10%)
  Commercial leases3,0523,1302,915(2%)5%
Total commercial loans and leases70,26866,72068,9975%2%
  Residential mortgage loans16,39716,15815,9281%3%
  Home equity4,0844,2765,183(4%)(21%)
  Indirect secured consumer loans16,78316,00413,6535%23%
  Credit card1,7661,7442,0071%(12%)
  Other consumer loans2,7523,0093,014(9%)(9%)
Total consumer loans41,78241,19139,7851%5%
Portfolio loans and leases112,050107,911108,7824%3%
Allowance for loan and lease losses(1,892)(1,954)(2,453)(3%)(23%)
Portfolio loans and leases, net110,158105,957106,3294%4%
Bank premises and equipment2,1202,1012,0881%2%
Operating lease equipment616647777(5%)(21%)
Goodwill4,5144,5144,258—6%
Intangible assets156169139(8%)12%
Servicing rights1,12194365619%71%
Other assets11,44411,88910,749(4%)6%
Total Assets$211,116$207,731$204,6802%3%
Liabilities
Deposits:
  Demand $65,088$63,879$57,7112%13%
  Interest checking 48,87045,96447,2706%3%
  Savings 22,22721,42318,2584%22%
  Money market 30,26330,65230,650(1%)(1%)
  Foreign office 121202143(40%)(15%)
  CDs $250,000 or less(d)
2,4862,6913,740(8%)(34%)
  CDs over $250,000(d)
2692971,309(9%)(79%)
Total deposits169,324165,108159,0813%6%
Federal funds purchased281309300(9%)(6%)
Other short-term borrowings9809491,1923%(18%)
Accrued taxes, interest and expenses2,2332,0832,6147%(15%)
Other liabilities4,2675,3393,409(20%)25%
Long-term debt11,82111,41914,9734%(21%)
Total Liabilities188,906185,207181,5692%4%
Equity
Common stock(c)
2,0512,0512,051——
Preferred stock2,1162,1162,116——
Capital surplus3,6243,6113,635——
Retained earnings20,23619,81718,3842%10%
Accumulated other comprehensive income1,2071,6372,601(26%)(54%)
Treasury stock(7,024)(6,708)(5,676)5%24%
Total Equity22,21022,52423,111(1%)(4%)
Total Liabilities and Equity$211,116$207,731$204,6802%3%
(a) Amortized cost$36,941$36,308$34,9822%6%
(b) Market values8 8 11 —(27%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,000——
Outstanding, excluding treasury682,778689,790712,760(1 %)(4 %)
Treasury241,115234,102211,1323 %14 %
(d) Fifth Third has elected to record CDs $250,000 or less within core deposits, consistent with minimum FDIC insurance coverage. Fifth Third had previously recorded certificates
        $100,000 or less as "other time" within core deposits. Prior periods have been adjusted to conform to current period presentation.


18

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of
(unaudited)DecemberSeptemberJuneMarchDecember
20212021202120212020
Assets
Cash and due from banks$2,994$3,213$3,285$3,122$3,147
Other short-term investments34,57234,20332,40934,18733,399
Available-for-sale debt and other securities(a)
38,11037,87038,01237,59537,513
Held-to-maturity securities(b)
88101011
Trading debt securities512685711728560
Equity securities376329341315313
Loans and leases held for sale4,4155,2035,7305,4774,741
Portfolio loans and leases:
  Commercial and industrial loans51,65947,83447,56449,09449,665
  Commercial mortgage loans10,31610,30010,34710,48110,602
  Commercial construction loans5,2415,4565,8716,1985,815
  Commercial leases3,0523,1303,2383,2552,915
Total commercial loans and leases70,26866,72067,02069,02868,997
  Residential mortgage loans16,39716,15816,13115,77615,928
  Home equity4,0844,2764,5454,8155,183
  Indirect secured consumer loans16,78316,00415,19214,33613,653
  Credit card1,7661,7441,7931,8102,007
  Other consumer loans2,7523,0093,0523,0903,014
Total consumer loans41,78241,19140,71339,82739,785
Portfolio loans and leases112,050107,911107,733108,855108,782
Allowance for loan and lease losses(1,892)(1,954)(2,033)(2,208)(2,453)
Portfolio loans and leases, net110,158105,957105,700106,647106,329
Bank premises and equipment2,1202,1012,0732,0722,088
Operating lease equipment616647715718777
Goodwill4,5144,5144,2594,2594,258
Intangible assets156169117127139
Servicing rights1,121943818784656
Other assets11,44411,88911,21010,85810,749
Total Assets$211,116$207,731$205,390$206,899$204,680
Liabilities
Deposits:
  Demand $65,088$63,879$62,760$61,363$57,711
  Interest checking48,87045,96444,87245,58247,270
  Savings 22,22721,42320,66720,16218,258
  Money market 30,26330,65230,56430,63030,650
  Foreign office 121202152113143
CDs $250,000 or less(d)
2,4862,6912,9583,4043,740
CDs over $250,000(d)
2692973101,1391,309
Total deposits169,324165,108162,283162,393159,081
Federal funds purchased281309338302300
Other short-term borrowings9809491,1301,1061,192
Accrued taxes, interest and expenses2,2332,0832,0451,8792,614
Other liabilities4,2675,3394,3043,8813,409
Long-term debt11,82111,41912,36414,74314,973
Total Liabilities188,906185,207182,464184,304181,569
Equity
Common stock(c)
2,0512,0512,0512,0512,051
Preferred stock2,1162,1162,1162,1162,116
Capital surplus3,6243,6113,6023,5923,635
Retained earnings20,23619,81719,34318,86318,384
Accumulated other comprehensive income1,2071,6371,9741,7922,601
Treasury stock(7,024)(6,708)(6,160)(5,819)(5,676)
Total Equity22,21022,52422,92622,59523,111
Total Liabilities and Equity$211,116$207,731$205,390$206,899$204,680
(a) Amortized cost$36,941$36,308$36,081$35,963$34,982
(b) Market values88101011
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,0002,000,0002,000,000
Outstanding, excluding treasury682,778689,790703,740711,596712,760
Treasury241,115234,102220,153212,297211,132
(d) Fifth Third has elected to record CDs $250,000 or less within core deposits, consistent with minimum FDIC insurance coverage. Fifth Third had previously recorded certificates
        $100,000 or less as "other time" within core deposits. Prior periods have been adjusted to conform to current period presentation.
19

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months EndedYear to Date
DecemberDecemberDecemberDecember
2021202020212020
Total Equity, Beginning$22,524$22,951$23,111$21,203
Net income6626042,7701,427
Other comprehensive (loss) income, net of tax:
Change in unrealized (losses) gains:
Available-for-sale debt securities(299)(153)(1,040)1,119
Qualifying cash flow hedges(139)(68)(365)296
Change in accumulated other comprehensive income related to employee benefit plans8(5)11(2)
Change in other—(4)—(4)
Comprehensive income2323741,3762,836
Cash dividends declared:
Common stock(208)(195)(805)(780)
Preferred stock(35)(35)(111)(104)
Impact of stock transactions under stock compensation plans, net13163382
Shares acquired for treasury(316)—(1,393)—
Other——(1)—
Issuance of preferred stock———346
Impact of cumulative effect of change in accounting principles———(472)
Total Equity, Ending$22,210$23,111$22,210$23,111
20

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisFor the Three Months Ended
$ in millionsDecemberSeptemberDecember
(unaudited)202120212020
AverageAverageAverageAverageAverageAverage
BalanceYield/RateBalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$49,5713.42 %$47,7743.54 %$50,4373.50 %
  Commercial mortgage loans(a)
10,2472.86 %10,3393.00 %10,7313.17 %
  Commercial construction loans(a)
5,3293.10 %5,7293.12 %5,8203.19 %
  Commercial leases(a)
3,0572.81 %3,1582.84 %2,9323.33 %
Total commercial loans and leases68,2043.28 %67,0003.39 %69,9203.42 %
  Residential mortgage loans21,4863.17 %21,7503.21 %18,0653.33 %
  Home equity4,1793.60 %4,4093.59 %5,3153.64 %
  Indirect secured consumer loans16,3453.18 %15,5903.27 %13,2723.70 %
  Credit card1,73912.24 %1,74812.38 %2,04211.75 %
  Other consumer loans2,8376.15 %3,0315.91 %2,8506.38 %
Total consumer loans46,5863.73 %46,5283.79 %41,5444.11 %
Total loans and leases114,7903.46 %113,5283.55 %111,4643.68 %
Securities:
Taxable securities36,6073.00 %36,1772.86 %35,5063.10 %
Tax exempt securities(a)
1,0242.38 %1,0312.22 %4592.21 %
Other short-term investments34,6240.15 %32,0650.15 %34,9890.10 %
Total interest-earning assets187,0452.75 %182,8012.81 %182,4182.87 %
Cash and due from banks3,0793,1142,969
Other assets21,43321,56621,116
Allowance for loan and lease losses(1,953)(2,032)(2,573)
Total Assets$209,604$205,449$203,930
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$47,3840.05 %$45,1280.05 %$47,6640.08 %
  Savings deposits21,7020.02 %20,9410.02 %17,6580.03 %
  Money market deposits30,5660.03 %30,5140.03 %31,2050.06 %
  Foreign office deposits1930.04 %1950.03 %1610.07 %
  CDs $250,000 or less(c)
2,6040.16 %2,9370.19 %4,2600.63 %
Total interest-bearing core deposits102,4490.04 %99,7150.04 %100,9480.09 %
  CDs over $250,000(c)
2640.94 %3061.10 %1,3131.46 %
  Federal funds purchased3150.13 %3480.13 %3070.18 %
  Securities sold under repurchase agreements5780.01 %5700.01 %5810.08 %
  Other secured borrowings4220.26 %5520.24 %5100.65 %
  Long-term debt11,6972.92 %12,0572.98 %15,0182.76 %
Total interest-bearing liabilities115,7250.33 %113,5480.36 %118,6770.45 %
Demand deposits64,82862,62656,365
Other liabilities6,6026,3485,762
Total Liabilities187,155182,522180,804
Total Equity22,44922,92723,126
Total Liabilities and Equity$209,604$205,449$203,930
Ratios:
  Net interest margin (FTE)(b)
2.55 %2.59 %2.58 %
  Net interest rate spread (FTE)(b)
2.42 %2.45 %2.42 %
  Interest-bearing liabilities to interest-earning assets61.87 %62.12 %65.06 %
(a) Average Yield/Rate of these assets are presented on an FTE basis.
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(c) Fifth Third has elected to record CDs $250,000 or less within core deposits, consistent with minimum FDIC insurance coverage. Fifth Third had previously recorded certificates
         $100,000 or less as "other time" within core deposits. Prior periods have been adjusted to conform to current period presentation.









21

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisYear to Date
$ in millionsDecemberDecember
(unaudited)20212020
AverageAverageAverageAverage
BalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$48,9663.54 %$53,8143.63 %
  Commercial mortgage loans(a)
10,3963.01 %11,0113.54 %
  Commercial construction loans(a)
5,7833.13 %5,5093.65 %
  Commercial leases(a)
3,1302.94 %3,0383.43 %
Total commercial loans and leases68,2753.40 %73,3723.61 %
  Residential mortgage loans21,3593.26 %17,8283.49 %
  Home equity4,5653.59 %5,6793.90 %
  Indirect secured consumer loans15,1563.35 %12,4543.93 %
  Credit card1,78312.28 %2,23011.64 %
  Other consumer loans2,9796.03 %2,8486.76 %
Total consumer loans45,8423.85 %41,0394.35 %
Total loans and leases114,1173.58 %114,4113.88 %
Securities:
  Taxable securities36,1642.97 %36,1093.08 %
  Tax exempt securities(a)
8542.33 %2332.61 %
Other short-term investments33,2430.13 %21,9350.13 %
Total interest-earning assets184,3782.83 %172,6883.23 %
Cash and due from banks3,0552,978
Other assets21,05020,933
Allowance for loan and lease losses(2,159)(2,369)
Total Assets$206,324$194,230
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$45,8500.06 %$46,8900.27 %
  Savings deposits20,5310.02 %16,4400.06 %
  Money market deposits30,6310.04 %29,8790.29 %
  Foreign office deposits1640.04 %1850.21 %
  CDs $250,000 or less(c)
3,2140.31 %5,2471.25 %
Total interest-bearing core deposits100,3900.05 %98,6410.29 %
  CDs over $250,000(c)
5301.30 %2,2081.41 %
  Other deposits—— 710.76 %
  Federal funds purchased3330.12 %3850.58 %
  Securities sold under repurchase agreements5940.02 %6100.79 %
  Other secured borrowings5130.30 %1,0990.82 %
  Long-term debt13,1092.89 %16,0042.82 %
Total interest-bearing liabilities115,4690.38 %119,0180.66 %
Demand deposits62,02847,111
Other liabilities6,0155,546
Total Liabilities183,512171,675
Total Equity22,81222,555
Total Liabilities and Equity$206,324$194,230
Ratios:
  Net interest margin (FTE)(b)
2.59 %2.78 %
  Net interest rate spread (FTE)(b)
2.45 %2.57 %
  Interest-bearing liabilities to interest-earning assets62.63 %68.92 %
(a) Average Yield/Rate of these assets are presented on an FTE basis.
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(c) Fifth Third has elected to record CDs $250,000 or less within core deposits, consistent with minimum FDIC insurance coverage. Fifth Third had previously recorded certificates
         $100,000 or less as "other time" within core deposits. Prior periods have been adjusted to conform to current period presentation.
22

Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millionsFor the Three Months Ended
(unaudited)DecemberSeptemberJuneMarchDecember
20212021202120212020
Average Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$49,566$47,766$48,773$49,629$50,385
  Commercial mortgage loans10,24710,31710,45910,53210,727
  Commercial construction loans5,3295,7286,0436,0395,820
  Commercial leases3,0573,1583,1743,1142,932
Total commercial loans and leases68,19966,96968,44969,31469,864
Consumer loans:
  Residential mortgage loans16,18816,22315,88315,80316,016
  Home equity4,1794,4094,6745,0095,315
  Indirect secured consumer loans16,34515,59014,70213,95513,272
  Credit card1,7391,7481,7701,8792,042
  Other consumer loans2,8373,0313,0562,9962,851
Total consumer loans41,28841,00140,08539,64239,496
Total average portfolio loans and leases$109,487$107,970$108,534$108,956$109,360
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$5$31$52$104$56
Consumer loans held for sale5,2985,5275,8574,6412,048
Average loans and leases held for sale$5,303$5,558$5,909$4,745$2,104
Average PPP loans(a)
$1,756$3,071$4,810$5,200$5,098
Average portfolio commercial and industrial loans - excluding PPP loans47,81044,69543,96344,42945,287
Total average portfolio commercial and industrial loans$49,566$47,766$48,773$49,629$50,385
End of Period Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$51,659$47,834$47,564$49,094$49,665
  Commercial mortgage loans10,31610,30010,34710,48110,602
  Commercial construction loans5,2415,4565,8716,1985,815
  Commercial leases3,0523,1303,2383,2552,915
Total commercial loans and leases70,26866,72067,02069,02868,997
Consumer loans:
  Residential mortgage loans16,39716,15816,13115,77615,928
  Home equity4,0844,2764,5454,8155,183
  Indirect secured consumer loans16,78316,00415,19214,33613,653
  Credit card1,7661,7441,7931,8102,007
  Other consumer loans2,7523,0093,0523,0903,014
Total consumer loans41,78241,19140,71339,82739,785
Total portfolio loans and leases$112,050$107,911$107,733$108,855$108,782
End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale$21$2$46$80$276
Consumer loans held for sale4,3945,2015,6845,3974,465
Loans and leases held for sale$4,415$5,203$5,730$5,477$4,741
Operating lease equipment$616$647$715$718$777
Loans and Leases Serviced for Others(b)
Commercial and industrial loans$923$879$919$1,011$979
Commercial mortgage loans610620623639653
Commercial construction loans474487528592601
Commercial leases589555536547569
Residential mortgage loans89,23477,92971,49665,92268,800
Other consumer loans—50505050
Total loans and leases serviced for others91,83080,52074,15268,76171,652
Total loans and leases serviced$208,911$194,281$188,330$183,811$185,952
End of period PPP loans(a)
$1,305$2,344$3,685$5,381$4,844
End of period portfolio commercial and industrial loans - excluding PPP loans50,35445,49043,87943,71344,821
Total end of period portfolio commercial and industrial loans$51,659$47,834$47,564$49,094$49,665
(a)Paycheck Protection Program loans are included in commercial and industrial loans in the Condensed Consolidated Balance Sheets.
(b)Fifth Third sells certain loans and leases and obtains servicing responsibilities.
23

Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millionsAs of
(unaudited)DecemberSeptemberJuneMarchDecember
2021(a)
2021202120212020
Regulatory Capital(b)
CET1 capital$14,778$14,673$15,050$14,931$14,682
Additional tier I capital2,1162,1162,1162,1172,115
Tier I capital16,89416,78917,16617,04816,797
Tier II capital3,8913,9534,0184,0834,615
Total regulatory capital$20,785$20,742$21,184$21,131$21,412
Risk-weighted assets
$155,101$148,827$145,084$142,799$141,974
Ratios
Average total Bancorp shareholders' equity as a percent of average assets10.71 %11.16 %11.11 %11.26 %11.34 %
Regulatory Capital Ratios(b)
Fifth Third Bancorp
CET1 capital
9.53 %9.86 %10.37 %10.46 %10.34 %
Tier I risk-based capital
10.89 %11.28 %11.83 %11.94 %11.83 %
Total risk-based capital
13.40 %13.94 %14.60 %14.80 %15.08 %
Tier I leverage8.27 %8.41 %8.55 %8.61 %8.49 %
Fifth Third Bank, National Association
Tier I risk-based capital
10.88 %11.25 %11.67 %12.70 %12.28 %
Total risk-based capital
12.31 %12.79 %13.27 %14.41 %14.17 %
Tier I leverage8.28 %8.43 %8.46 %9.19 %8.85 %
(a)Current period regulatory capital data and ratios are estimated.
(b)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
24

Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millionsFor the Three Months Ended
(unaudited)DecemberSeptemberJuneMarchDecember
20212021202120212020
Average portfolio loans and leases:
  Commercial and industrial loans$49,566$47,766$48,773$49,629$50,385
  Commercial mortgage loans10,24710,31710,45910,53210,727
  Commercial construction loans5,3295,7286,0436,0395,820
  Commercial leases3,0573,1583,1743,1142,932
Total commercial loans and leases68,19966,96968,44969,31469,864
  Residential mortgage loans16,18816,22315,88315,80316,016
  Home equity4,1794,4094,6745,0095,315
  Indirect secured consumer loans16,34515,59014,70213,95513,272
  Credit card1,7391,7481,7701,8792,042
  Other consumer loans2,8373,0313,0562,9962,851
Total consumer loans41,28841,00140,08539,64239,496
Total average portfolio loans and leases$109,487$107,970$108,534$108,956$109,360
Losses charged-off:
  Commercial and industrial loans($25)($10)($36)($32)($44)
  Commercial mortgage loans(1)—(8)(3)(31)
  Commercial leases(2)—(1)——
Total commercial loans and leases(28)(10)(45)(35)(75)
  Residential mortgage loans—(1)(1)(1)(4)
  Home equity(2)(2)(2)(3)(3)
  Indirect secured consumer loans(13)(9)(11)(18)(19)
  Credit card(17)(17)(26)(31)(31)
  Other consumer loans(17)(17)(18)(21)(22)
Total consumer loans(49)(46)(58)(74)(79)
Total losses charged-off($77)($56)($103)($109)($154)
Recoveries of losses previously charged-off:
  Commercial and industrial loans$11$5$23$5$3
  Commercial mortgage loans—1211
  Commercial leases——311
Total commercial loans and leases1162875
  Residential mortgage loans32112
  Home equity43333
  Indirect secured consumer loans71011910
  Credit card45666
  Other consumer loans109101210
Total consumer loans2829313131
Total recoveries of losses previously charged-off$39$35$59$38$36
Net losses charged-off:
  Commercial and industrial loans($14)($5)($13)($27)($41)
  Commercial mortgage loans(1)1(6)(2)(30)
  Commercial leases(2)—211
Total commercial loans and leases(17)(4)(17)(28)(70)
  Residential mortgage loans31——(2)
  Home equity211——
  Indirect secured consumer loans(6)1—(9)(9)
  Credit card(13)(12)(20)(25)(25)
  Other consumer loans(7)(8)(8)(9)(12)
Total consumer loans(21)(17)(27)(43)(48)
Total net losses charged-off($38)($21)($44)($71)($118)
Net losses charged-off as a percent of average portfolio loans and leases (annualized):
  Commercial and industrial loans0.11 %0.04 %0.11 %0.22 %0.33 %
  Commercial mortgage loans0.03 %(0.03 %)0.22 %0.09 %1.13 %
  Commercial leases0.24 %— (0.21 %)(0.09 %)(0.15 %)
Total commercial loans and leases0.10 %0.03 %0.10 %0.17 %0.40 %
  Residential mortgage loans(0.06 %)(0.02 %)(0.01 %)(0.01 %)0.04 %
  Home equity(0.18 %)(0.13 %)(0.09 %)0.01 %— 
  Indirect secured consumer loans0.14 %(0.02 %)0.01 %0.25 %0.28 %
  Credit card2.90 %2.70 %4.52 %5.50 %4.95 %
  Other consumer loans1.12 %1.05 %0.91 %1.17 %1.50 %
Total consumer loans0.21 %0.16 %0.26 %0.43 %0.47 %
Total net losses charged-off as a percent of average portfolio loans and leases (annualized)0.14 %0.08 %0.16 %0.27 %0.43 %
25

Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millionsFor the Three Months Ended
(unaudited)DecemberSeptemberJuneMarchDecember
20212021202120212020
Allowance for Credit Losses
Allowance for loan and lease losses, beginning$1,954$2,033$2,208$2,453$2,574
  Total net losses charged-off(38)(21)(44)(71)(118)
Benefit from loan and lease losses(24)(58)(131)(174)(3)
Allowance for loan and lease losses, ending$1,892$1,954$2,033$2,208$2,453
Reserve for unfunded commitments, beginning$205$189$173$172$182
  (Benefit from) provision for the reserve for unfunded commitments(23)16161(10)
Reserve for unfunded commitments, ending$182$205$189$173$172
Components of allowance for credit losses:
  Allowance for loan and lease losses$1,892$1,954$2,033$2,208$2,453
  Reserve for unfunded commitments182205189173172
Total allowance for credit losses$2,074$2,159$2,222$2,381$2,625
As of
DecemberSeptemberJuneMarchDecember
20212021202120212020
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
  Commercial and industrial loans$116$172$193$197$230
  Commercial mortgage loans4243435082
  Commercial construction loans6——1—
  Commercial leases46967
  Residential mortgage loans1013172225
  Home equity4748535552
  Indirect secured consumer loans55669
  Other consumer loans11122
Total nonaccrual portfolio loans and leases (excludes restructured loans)231288322339407
Nonaccrual restructured portfolio commercial loans and leases169128164255319
Nonaccrual restructured portfolio consumer loans and leases(c)
98112135147108
Total nonaccrual portfolio loans and leases498528621741834
Repossessed property54579
OREO2427313521
Total nonperforming portfolio loans and leases and OREO527559657783864
Nonaccrual loans held for sale15—1325
Nonaccrual restructured loans held for sale—127201
Total nonperforming assets$542$560$697$805$870
Restructured portfolio consumer loans and leases (accrual)$675$684$699$763$796
Restructured portfolio commercial loans and leases (accrual)$157$74$80$81$92
Loans and leases 90 days past due (accrual):
  Commercial and industrial loans$17$4$2$8$39
  Commercial mortgage loans12478
  Commercial construction loans1——1—
  Commercial leases—1——1
Total commercial loans and leases19761648
  Residential mortgage loans(c)
7261577370
  Home equity11112
  Indirect secured consumer loans984810
  Credit card1514142531
  Other consumer loans11112
Total consumer loans988577108115
Total loans and leases 90 days past due (accrual)(b)
$117$92$83$124$163
Ratios
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.14 %0.08 %0.16 %0.27 %0.43 %
Allowance for credit losses:
As a percent of portfolio loans and leases1.85 %2.00 %2.06 %2.19 %2.41 %
   As a percent of nonperforming portfolio loans and leases(a)
416 %409 %358 %321 %315 %
   As a percent of nonperforming portfolio assets(a)
394 %386 %338 %304 %304 %
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases(a)
0.44 %0.49 %0.58 %0.68 %0.77 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
0.47 %0.52 %0.61 %0.72 %0.79 %
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property0.47 %0.49 %0.61 %0.70 %0.77 %
(a) Excludes nonaccrual loans held for sale.
(b) Excludes loans held for sale.
(c) Excludes government guaranteed residential mortgage loans.


26


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,” “underlying net interest margin,” “adjusted pre-provision net revenue,” “adjusted return on average assets,” “efficiency ratio (FTE),” “total revenue (FTE),” “noninterest income as a percent of total revenue”, 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, noninterest income as a percent of total revenue, 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 reconciliations of all historical non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page.
27

Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ and shares in millionsAs of and For the Three Months Ended
(unaudited)DecemberSeptemberJuneMarchDecember
20212021202120212020
Net interest income$1,197$1,189$1,208$1,176$1,182
Add: Taxable equivalent adjustment33333
Net interest income (FTE) (a)1,2001,1921,2111,1791,185
Net interest income (annualized) (b)4,7494,7174,8454,7694,702
Net interest income (FTE) (annualized) (c)4,7614,7294,8574,7824,714
Interest income1,2941,2921,3231,3021,315
Add: Taxable equivalent adjustment33333
Interest income (FTE)1,2971,2951,3261,3051,318
Interest income (FTE) (annualized) (d)5,1465,1385,3195,2935,243
Interest expense (annualized) (e)385409461511529
Average interest-earning assets (f)187,045182,801184,918182,715182,418
Average interest-bearing liabilities (g)115,725113,548115,951116,684118,677
Net interest margin (b) / (f)2.54 %2.58 %2.62 %2.61 %2.58 %
Net interest margin (FTE) (c) / (f)2.55 %2.59 %2.63 %2.62 %2.58 %
Net interest rate spread (FTE) (d) / (f) - (e) / (g)2.42 %2.45 %2.48 %2.46 %2.42 %
Income before income taxes$829$895$911$883$746
Add: Taxable equivalent adjustment33333
Income before income taxes (FTE)$832$898$914$886$749
Net income available to common shareholders$627$684$674$674$569
Add: Intangible amortization, net of tax99899
Tangible net income available to common shareholders (h)636693682683578
Tangible net income available to common shareholders (annualized) (i)2,5232,7492,7352,7702,299
Average Bancorp shareholders' equity22,44922,92722,92722,95223,126
Less: Average preferred stock(2,116)(2,116)(2,116)(2,116)(2,116)
Average goodwill(4,514)(4,430)(4,259)(4,259)(4,261)
Average intangible assets(162)(149)(122)(133)(151)
Average tangible common equity, including AOCI (j)15,65716,23216,43016,44416,598
Less:Average AOCI(1,382)(1,980)(1,968)(2,231)(2,623)
Average tangible common equity, excluding AOCI (k)14,27514,25214,46214,21313,975
Total Bancorp shareholders' equity22,21022,52422,92622,59523,111
Less:Preferred stock(2,116)(2,116)(2,116)(2,116)(2,116)
Goodwill(4,514)(4,514)(4,259)(4,259)(4,258)
Intangible assets(156)(169)(117)(127)(139)
Tangible common equity, including AOCI (l)15,42415,72516,43416,09316,598
Less:AOCI(1,207)(1,637)(1,974)(1,792)(2,601)
Tangible common equity, excluding AOCI (m)14,21714,08814,46014,30113,997
Add:Preferred stock2,1162,1162,1162,1162,116
Tangible equity (n)16,33316,20416,57616,41716,113
Total assets211,116207,731205,390206,899204,680
Less:Goodwill(4,514)(4,514)(4,259)(4,259)(4,258)
Intangible assets(156)(169)(117)(127)(139)
Tangible assets, including AOCI (o)206,446203,048201,014202,513200,283
Less:AOCI, before tax(1,528)(2,072)(2,499)(2,268)(3,292)
Tangible assets, excluding AOCI (p)$204,918$200,976$198,515$200,245$196,991
Common shares outstanding (q)683690704712713
Tangible equity (n) / (p)7.97 %8.06 %8.35 %8.20 %8.18 %
Tangible common equity (excluding AOCI) (m) / (p)6.94 %7.01 %7.28 %7.14 %7.11 %
Tangible common equity (including AOCI) (l) / (o)7.47 %7.74 %8.18 %7.95 %8.29 %
Tangible book value per share (l) / (q)$22.58$22.79$23.34$22.60$23.28
28

Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ in millionsFor the Three Months Ended
(unaudited)DecemberSeptemberDecember
202120212020
Net income (r)$662$704$604
Net income (annualized) (s)2,6262,7932,403
Adjustments (pre-tax items)
Valuation of Visa total return swap191730
Special COVID staffing bonus to front-line employees10--
Fifth Third Foundation contribution-1525
Net business acquisition and disposition charges/(gain)-(60)27
Branch and non-branch real estate charges--21
Adjustments, after-tax (t)(a)
22(21)79
Adjustments (tax related items)
State tax adjustments--(13)
Adjustments (tax related items) (u)--(13)
Noninterest income (v)791836787
Valuation of Visa total return swap191730
Net disposition charges/(gain)-(60)11
Adjusted noninterest income (w)810793828
Noninterest expense (x)1,2061,1721,236
Special COVID staffing bonus to front-line employees(10)--
Fifth Third Foundation contribution-(15)(25)
Branch and non-branch real estate charges--(21)
Business acquisition charges--(16)
Adjusted noninterest expense (y)1,1961,1571,174
Adjusted net income (r) + (t) + (u)684683670
Adjusted net income (annualized) (z)2,7142,7102,665
Adjusted tangible net income available to common shareholders (h) + (t) + (u)658672644
Adjusted tangible net income available to common shareholders (annualized) (aa)2,6112,6662,562
Average assets (bb)$209,604$205,449$203,930
Return on average tangible common equity (i) / (j)16.1 %16.9 %13.9 %
Return on average tangible common equity excluding AOCI (i) / (k)17.7 %19.3 %16.5 %
Adjusted return on average tangible common equity, including AOCI (aa) / (j)16.7 %16.4 %15.4 %
Adjusted return on average tangible common equity, excluding AOCI (aa) / (k)18.3 %18.7 %18.3 %
Return on average assets (s) / (bb)1.25 %1.36 %1.18 %
Adjusted return on average assets (z) / (bb)1.29 %1.32 %1.31 %
Efficiency ratio (FTE) (x) / [(a) + (v)]60.6 %57.8 %62.7 %
Adjusted efficiency ratio (y) / [(a) + (w)]59.5 %58.3 %58.3 %
Total revenue (FTE) (a) + (v)$1,991$2,028$1,972
Pre-provision net revenue (PPNR) (a) + (v) - (x)$785$856$736
Adjusted pre-provision net revenue (PPNR) (a) + (w) - (y)$814$828$839
Totals may not foot due to rounding; (a) Assumes a 23% tax rate

29

Fifth Third Bancorp and Subsidiaries
Segment Presentation
$ in millions
(unaudited)
For the three months ended December 31, 2021
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$390$316$147$24$323$1,200
Benefit from (provision for) credit losses114(18)(3)—(46)47
Net interest income after benefit from (provision for) credit losses504298144242771,247
Noninterest income372235351454791
Noninterest expense(431)(471)(157)(139)(8)(1,206)
Income before income taxes445622230273832
Applicable income tax expense(a)
(86)(12)(5)(7)(60)(170)
Net income$359$50$17$23$213$662
For the three months ended September 30, 2021
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$371$309$145$22$345$1,192
Benefit from (provision for) credit losses242(13)2—(189)42
Net interest income after benefit from (provision for) credit losses613296147221561,234
Noninterest income3622298414318836
Noninterest expense(406)(463)(158)(134)(11)(1,172)
Income before income taxes569627331163898
Applicable income tax expense(a)
(112)(14)(15)(7)(46)(194)
Net income$457$48$58$24$117$704
For the three months ended June 30, 2021
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$378$301$142$21$369$1,211
Benefit from (provision for) credit losses151(25)——(11)115
Net interest income after benefit from (provision for) credit losses529276142213581,326
Noninterest income35522463143(44)741
Noninterest expense(399)(450)(163)(131)(10)(1,153)
Income before income taxes485504233304914
Applicable income tax expense(a)
(92)(10)(9)(7)(87)(205)
Net income$393$40$33$26$217$709
For the three months ended March 31, 2021
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$367$295$128$21$368$1,179
Benefit from (provision for) credit losses76(41)(8)1145173
Net interest income after benefit from (provision for) credit losses443254120225131,352
Noninterest income36120482138(36)749
Noninterest expense(420)(489)(161)(135)(10)(1,215)
Income (loss) before income taxes384(31)4125467886
Applicable income tax (expense) benefit(a)
(72)7(9)(5)(113)(192)
Net income (loss)$312$(24)$32$20$354$694
For the three months ended December 31, 2020
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$397$293$102$23$370$1,185
Benefit from (provision for) credit losses(212)(49)(9)(2)28513
Net interest income after benefit from (provision for) credit losses18524493216551,198
Noninterest income4041962213629787
Noninterest expense(427)(471)(135)(131)(72)(1,236)
Income (loss) before income taxes162(31)(20)26612749
Applicable income tax (expense) benefit(a)
(24)64(5)(126)(145)
Net income (loss)$138$(25)$(16)$21$486$604
(a) Includes taxable equivalent adjustments of $3 million for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020.
(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.
30