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Published: 2021-07-22 00:00:00 ET
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EX-99.1 2 q22021earningsrelease.htm EX-99.1 Document

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Fifth Third Announces Second Quarter 2021 Results
Reported diluted earnings per share of $0.94

Key Financial DataKey Highlights
$ millions for all balance sheet and income statement items
2Q21
1Q21
2Q20
       Select Business Highlights:
•Launched Fifth Third Momentum Banking across footprint - a fintech banking solution with Early Pay, Extra Time, smart savings, and other features with no monthly fee
•Announced acquisition of Provide, a leading fintech company serving healthcare practices (expect to close early August 2021)
•Generated consumer household growth of 4% vs. 2Q20
•Published second annual ESG report on June 30th
      Select Financial Highlights:
(2Q21 versus 1Q21 where applicable)
•ROTCE(a) of 16.6%; adjusted ROTCE(a) of 19.7% excl. AOCI
•PPNR(a) increased 12%; adjusted PPNR(a) increased 15%
•Historically low NCO ratio of 0.16% reflecting improvements in both commercial and consumer
•Benefit to credit losses and resulting reserve coverage reflects improved macroeconomic environment and strong credit results; NPA ratio improved 11 bps
•Repurchased shares totaling $347 million; capital plans support repurchase of shares totaling approximately $850 million in 2H21; continue to target 9.5% CET1 by June 2022
Income Statement Data
Net income available to common shareholders$674$674$163
Net interest income (U.S. GAAP)1,2081,1761,200
Net interest income (FTE)(a)
1,2111,1791,203
Noninterest income741749650
Noninterest expense1,1531,2151,121
Per Share Data
Earnings per share, basic$0.95$0.94$0.23
Earnings per share, diluted0.940.930.23
Book value per share29.5728.7828.88
Tangible book value per share(a)
23.3422.6022.66
Balance Sheet & Credit Quality
Average portfolio loans and leases$108,534$108,956$118,506
Average deposits162,619158,888150,598
Net charge-off ratio(b)
0.16%0.27%0.44%
Nonperforming asset ratio(c)
0.610.720.65
Financial Ratios
Return on average assets1.38%1.38%0.40%
Return on average common equity13.013.13.2
Return on average tangible common equity(a)
16.616.84.3
CET1 capital(d)(e)
10.3710.469.72
Net interest margin(a)
2.632.622.75
Efficiency(a)
59.163.060.5
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 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
"We delivered outstanding financial results once again this quarter supported by strong business performance across our franchise and reflecting improved and diversified revenues. This was combined with well-managed expenses and yet another quarter of historically low net charge-offs reflecting our disciplined client selection, conservative underwriting, and improvement in the broader economy supported by government stimulus programs.

Commercial lending production trends and pipelines continue to indicate improved loan growth once supply and labor constraints normalize. To further accelerate profitable relationship growth over the long-term, we recently announced the acquisition of Provide, a leading fintech company serving healthcare practices.

Furthermore, we recently launched Fifth Third Momentum Banking, a consumer banking value proposition unparalleled in the industry, which combines the best of a traditional bank offering with several leading fintech features. We believe this will further accelerate our already-strong household growth and continue to provide a differentiated customer experience.

We remain focused on disciplined client selection, generating strong relationships and managing the balance sheet through varying cycles over a long-term performance horizon. We are well-positioned to benefit when interest rates rise and well-hedged if rates remain at low levels for several more years. As a result, we expect to generate and return a significant amount of excess capital to shareholders over the next year.”

         -Greg D. Carmichael, Chairman and CEO

Investor contact: Chris Doll (513) 534-2345 | Media contact: Ed Loyd (513) 534-6397 July 22, 2021

        
Income Statement Highlights
($ in millions, except per share data)For the Three Months Ended% Change
JuneMarchJune
202120212020SeqYr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,211$1,179$1,2033%1%
(Benefit from) provision for credit losses(115)(173)485(34)%NM
Noninterest income741749650(1)%14%
Noninterest expense1,1531,2151,121(5)%3%
Income before income taxes(a)
$914$886$2473%270%
Taxable equivalent adjustment$3$3$3——
Applicable income tax expense202189497%312%
Net income$709$694$1952%264%
Dividends on preferred stock35203275%9%
Net income available to common shareholders$674$674$163—313%
Earnings per share, diluted$0.94$0.93$0.231%309%
Fifth Third Bancorp (NASDAQ®: FITB) today reported second quarter 2021 net income of $709 million compared to net income of $694 million in the prior quarter and $195 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $674 million, or $0.94 per diluted share, compared to $674 million, or $0.93 per diluted share, in the prior quarter and $163 million, or $0.23 per diluted share, in the year-ago quarter.

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Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended% Change
JuneMarchJune
202120212020SeqYr/Yr
Interest Income
Interest income$1,326 $1,305 $1,406 2%(6)%
Interest expense115126203(9)%(43)%
Net interest income (NII)$1,211 $1,179 $1,203 3%1%
Average Yield/Rate Analysisbps Change
Yield on interest-earning assets2.88 %2.90 %3.21 %(2)(33)
Rate paid on interest-bearing liabilities0.40 %0.44 %0.66 %(4)(26)
Ratios
Net interest rate spread2.48 %2.46 %2.55 %2(7)
Net interest margin (NIM)2.63 %2.62 %2.75 %1(12)
Compared to the prior quarter, NII increased $32 million, or 3%. Results reflected the impact of purchases of GNMA loan buyouts associated with CARES Act forbearance plans from a third party ($3.7 billion purchased since December 2020, including $1.0 billion in April 2021), elevated investment portfolio prepayment penalties, higher day count, and the early redemption of long-term debt, partially offset by the impact of lower commercial loan balances and lower yields on loan balances. PPP-related interest income was $53 million, unchanged relative to the prior quarter. Compared to the prior quarter, NIM increased 1 bp reflecting elevated investment portfolio prepayment penalties, early redemption of long-term debt, and the impact of the aforementioned GNMA loan buyout purchases, partially offset by lower C&I loan balances and lower yields on loan balances. PPP and excess liquidity had a negative impact on NIM of approximately 49 bps in the second quarter of 2021, compared to 48 bps in the prior quarter. As a result, underlying NIM(f) expanded 2 bps sequentially.
Compared to the year-ago quarter, NII increased $8 million, or 1%, primarily reflecting lower deposit costs, the impact of the aforementioned GNMA loan buyout purchases, interest income from PPP loans, and a reduction in long-term debt, partially offset by lower C&I loan balances. Compared to the year-ago quarter, NIM decreased 12 bps, primarily reflecting the impact of excess liquidity, lower market rates, and lower commercial loan balances, partially offset by lower deposit costs.
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Noninterest Income
($ in millions)For the Three Months Ended% Change
JuneMarchJune
202120212020SeqYr/Yr
Noninterest Income
Service charges on deposits$149$144$1223%22%
Commercial banking revenue1601531375%17%
Mortgage banking net revenue648599(25)%(35)%
Wealth and asset management revenue1451431201%21%
Card and processing revenue10294829%24%
Leasing business revenue618757(30)%7%
Other noninterest income49421217%308%
Securities gains, net10321233%(52)%
Securities gains (losses), net - non-qualifying hedges
   on mortgage servicing rights1(2)—NMNM
Total noninterest income$741$749$650(1)%14%
Reported noninterest income decreased $8 million, or 1%, from the prior quarter, and increased $91 million, or 14%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including securities gains and losses, which included approximately $10 million attributable to mark-to-market impacts related to non-qualified deferred compensation assets in the current quarter.
Noninterest Income excluding certain items
($ in millions)For the Three Months Ended
JuneMarchJune
202120212020
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)$741 $749 $650 
Valuation of Visa total return swap371329
Branch and non-branch real estate charges——12
Securities (gains), net(10)(3)(21)
Noninterest income excluding certain items(a)
$768 $759 $670 
Compared to the prior quarter, noninterest income excluding certain items increased $9 million, or 1%. Compared to the year-ago quarter, noninterest income excluding certain items increased $98 million, or 15%.
Compared to the prior quarter, service charges on deposits increased $5 million, or 3%, reflecting an increase in both commercial and consumer deposit fees. Commercial banking revenue increased $7 million, or 5%, primarily driven by increases in loan syndication revenue and financial risk management revenue, partially offset by lower corporate bond fees. Mortgage banking net revenue decreased $21 million, or 25%, reflecting an incremental $21 million unfavorable impact from MSR net valuation adjustments and an $8 million decrease in origination fees and gains on loan sales due to market pressures including margin compression. This was partially offset by an $8 million decrease in MSR asset decay reflecting slower prepayment speeds. Current quarter mortgage originations of $5.0 billion increased 7% compared to the prior quarter. Wealth and asset management revenue increased $2 million, or 1%, driven primarily by higher personal asset management revenue and brokerage fees, partially offset by seasonally strong tax preparation fees from the prior quarter. Card and processing revenue increased $8 million, or 9%, primarily driven by higher credit and debit interchange, partially offset by higher rewards. Leasing business revenue decreased $26 million, or 30%, primarily driven by strong lease syndication revenue from the prior quarter.
Compared to the year-ago quarter, service charges on deposits increased $27 million, or 22%, reflecting an increase in both commercial and consumer deposit fees. Commercial banking revenue increased $23 million, or 17%, primarily driven
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by increases in loan syndication revenue and M&A advisory revenue, partially offset by lower corporate bond fees. Mortgage banking net revenue decreased $35 million, or 35%, primarily driven by an increase in MSR asset decay and a decrease in origination fees and gains on loan sales due to market pressures including margin compression. Wealth and asset management revenue increased $25 million, or 21%, primarily driven by higher personal asset management revenue and brokerage fees. Card and processing revenue increased by $20 million, or 24%, primarily driven by higher credit and debit interchange, partially offset by higher rewards. Leasing business revenue increased $4 million, or 7%, primarily reflecting increases in lease remarketing revenue and business solutions revenue.
Noninterest Expense
($ in millions)For the Three Months Ended% Change
JuneMarchJune
202120212020SeqYr/Yr
Noninterest Expense
Compensation and benefits$638 $706 $627 (10)%2%
Net occupancy expense777982(3)%(6)%
Technology and communications9493901%4%
Equipment expense343432—6%
Card and processing expense203029(33)%(31)%
Leasing business expense333533(6)%—
Marketing expense202320(13)%—
Other noninterest expense23721520810%14%
Total noninterest expense$1,153 $1,215 $1,121 (5)%3%
Reported noninterest expense decreased $62 million, or 5%, from the prior quarter, and increased $32 million, or 3%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
Noninterest Expense excluding certain items
($ in millions)For the Three Months Ended
JuneMarchJune
202120212020
Noninterest Expense excluding certain items
Noninterest expense (U.S. GAAP)$1,153 $1,215 $1,121 
Merger-related expenses——(9)
FHLB debt extinguishment charge——(6)
Noninterest expense excluding certain items(a)
$1,153 $1,215 $1,106 

Compared to the prior quarter, noninterest expense decreased $62 million, or 5%, reflecting the prior quarter seasonal compensation and benefits expense impacts, lower card and processing expense due to contract renegotiations, and diligent expense management throughout the company. These expense decreases were partially offset by increased performance-based compensation expense reflecting strong business results, higher other noninterest expense including the expenses associated with the aforementioned GNMA loan buyout purchases, and the impact of non-qualified deferred compensation mark-to-market expense ($12 million in the current quarter compared to $7 million in the prior quarter). Full-time equivalent employees declined 2% compared to the prior quarter.
Compared to the year-ago quarter, noninterest expense excluding certain items increased $47 million, or 4%, primarily due to an increase in performance-based compensation expense reflecting strong business results and higher other noninterest expense including the expenses associated with the aforementioned GNMA loan buyout purchases, partially offset by lower card and processing expense and lower net occupancy expense. Full-time equivalent employees declined 5% compared to the year-ago quarter.
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Average Interest-Earning Assets
($ in millions)For the Three Months Ended% Change
JuneMarchJune
202120212020SeqYr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans$48,773 $49,629 $59,040 (2)%(17)%
Commercial mortgage loans10,45910,53211,222(1)%(7)%
Commercial construction loans6,0436,0395,548—9%
Commercial leases3,1743,1143,0562%4%
Total commercial loans and leases$68,449$69,314$78,866(1)%(13)%
Consumer loans:
Residential mortgage loans$15,883$15,803$16,5611%(4)%
Home equity4,6745,0095,820(7)%(20)%
Indirect secured consumer loans14,70213,95512,1245%21%
Credit card1,7701,8792,248(6)%(21)%
Other consumer loans3,0562,9962,8872%6%
Total consumer loans$40,085$39,642$39,6401%1%
Total average portfolio loans and leases$108,534 $108,956 $118,506 —(8)%
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$52$104$68(50)%(24)%
Consumer loans held for sale5,8574,64184426%594%
Total average loans and leases held for sale$5,909$4,745$91225%548%
Securities (taxable and tax-exempt)$36,917$36,297$36,9732%—
Other short-term investments33,55832,71719,8333%69%
Total average interest-earning assets$184,918$182,715$176,2241%5%
Compared to the prior quarter, total average portfolio loans and leases were flat, as an increase in consumer loans was offset by a decrease in commercial loan and lease balances. Average commercial portfolio loans and leases decreased 1%, reflecting lower C&I term loan balances (nearly half of the sequential decline was due to PPP forgiveness), as well as lower commercial mortgage loans. Average consumer portfolio loans increased 1%, as higher indirect secured consumer loans were partially offset by lower home equity and credit card balances.
Compared to the year-ago quarter, total average portfolio loans and leases decreased 8% reflecting lower C&I revolving line of credit utilization and term loan balances, as well as declines in home equity and commercial mortgage loans, partially offset by increases in indirect secured consumer loans and commercial construction loans. Average commercial portfolio loans and leases decreased 13% due to declines in C&I revolving line of credit utilization and term loan balances and lower commercial mortgage loans, partially offset by growth in commercial construction loans. Average consumer portfolio loans increased 1%, as higher indirect secured consumer loans were partially offset by lower home equity, residential mortgage, and credit card balances.
Average loans and leases held for sale of $6 billion in the current quarter increased $1 billion compared to the prior quarter and increased $5 billion compared to the year-ago quarter, impacted by the aforementioned GNMA loan buyout purchases within consumer loans held for sale ($3.7 billion purchased since December 2020, including $1.0 billion in April 2021).
Average other short-term investments (including interest-bearing cash) of $34 billion in the current quarter increased $1 billion compared to the prior quarter and increased $14 billion compared to the year-ago quarter. The increase relative to the year-ago quarter reflected average core deposit growth of 10% compared to average total loan decline of 4%.
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Total period-end commercial portfolio loans and leases of $67 billion decreased 3% from the prior quarter driven by lower C&I term loan balances almost entirely due to PPP forgiveness, as well as declines in commercial construction and commercial mortgage loan balances. Compared to the year-ago quarter, total period-end commercial portfolio loans decreased $8 billion, or 11%, reflecting lower C&I revolving line of credit utilization and term loan balances partially due to PPP forgiveness, as well as lower commercial mortgage loans, partially offset by growth in commercial construction loans. Period-end commercial revolving line utilization was flat compared to the prior quarter at 31%, compared to 38% in the year-ago quarter. Period-end consumer portfolio loans of $41 billion increased 2% compared to the prior quarter, as continued growth in indirect secured consumer loans and residential mortgage loans were partially offset by a decline in home equity balances. Compared to the year-ago quarter, total period-end consumer portfolio loans increased $1 billion, or 3%, reflecting higher indirect secured consumer loan balances, partially offset by lower home equity balances.

Average Deposits
($ in millions)For the Three Months Ended% Change
JuneMarchJune
202120212020SeqYr/Yr
Average Deposits
Demand$61,994 $58,586 $45,761 6%35%
Interest checking45,30745,56849,760(1)%(9)%
Savings20,49418,95116,3548%25%
Money market30,84430,60130,0221%3%
Foreign office(g)
1401281829%(23)%
Total transaction deposits$158,779$153,834$142,0793%12%
Other time2,6963,0454,421(11)%(39)%
Total core deposits$161,475$156,879$146,5003%10%
Certificates - $100,000 and over1,1442,0094,067(43)%(72)%
Other deposits——31NM(100)%
Total average deposits$162,619 $158,888 $150,598 2%8%
Compared to the prior quarter, average core deposits increased 3%, as increases in consumer and commercial deposit balances across most product types benefited from continued fiscal and monetary stimulus and were partially offset by a decrease in other time balances. Average demand deposits represented 38% of total core deposits in the current quarter compared to 37% in the prior quarter. Average commercial transaction deposits increased 1% and average consumer transaction deposits increased 5%.
Compared to the year-ago quarter, average core deposits increased 10%, driven by the impacts of fiscal and monetary stimulus combined with success generating consumer household growth. Average commercial transaction deposits increased 7% and average consumer transaction deposits increased 17%.
The period end portfolio loan-to-core deposit ratio was 67% in the current quarter, compared to 68% in the prior quarter and 75% in the year-ago quarter. Excluding the impact of PPP loans, the period end portfolio loan-to-core deposit ratio was 64% in the current quarter, compared to 64% in the prior quarter and 72% in the year-ago quarter.
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Average Wholesale Funding
($ in millions)For the Three Months Ended% Change
JuneMarchJune
202120212020SeqYr/Yr
Average Wholesale Funding
Certificates - $100,000 and over$1,144 $2,009 $4,067 (43)%(72)%
Other deposits——31NM(100)%
Federal funds purchased3463243097%12%
Other short-term borrowings1,0971,2092,377(9)%(54)%
Long-term debt13,88314,84916,955(7)%(18)%
Total average wholesale funding$16,470$18,391$23,739(10)%(31)%
Compared to the prior quarter, average wholesale funding decreased 10%, driven by the retirement of approximately $2.3 billion in long-term debt in the current quarter, as well as continued runoff in jumbo CD balances. Compared to the year-ago quarter, average wholesale funding decreased 31%, reflecting decreases in long-term debt, jumbo CD balances, and other short-term borrowings.
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Credit Quality Summary
($ in millions)As of and For the Three Months Ended
JuneMarchDecemberSeptemberJune
20212021202020202020
Total nonaccrual portfolio loans and leases (NPLs)$621$741$834$891$700
Repossessed property57974
OREO3135213343
Total nonperforming portfolio loans and leases and OREO (NPAs)$657$783$864$931$747
NPL ratio(h)
0.58 %0.68 %0.77 %0.80 %0.61 %
NPA ratio(c)
0.61 %0.72 %0.79 %0.84 %0.65 %
Total loans and leases 30-89 days past due (accrual)$281$305$357$323$381
Total loans and leases 90 days past due (accrual)83124163139136
Allowance for loan and lease losses (ALLL), beginning$2,208 $2,453 $2,574 $2,696 $2,348 
Total net losses charged-off(44)(71)(118)(101)(130)
(Benefit from) provision for loan and lease losses(131)(174)(3)(21)478
ALLL, ending$2,033$2,208$2,453$2,574$2,696
Reserve for unfunded commitments, beginning$173$172$182$176$169
Provision for (benefit from) the reserve for unfunded commitments161(10)67
Reserve for unfunded commitments, ending$189$173$172$182$176
Total allowance for credit losses (ACL)$2,222 $2,381 $2,625 $2,756 $2,872 
ACL ratios:
As a % of portfolio loans and leases2.06 % 2.19 % 2.41 % 2.49 % 2.50 % 
As a % of nonperforming portfolio loans and leases358 % 321 % 315 % 309 % 410 % 
As a % of nonperforming portfolio assets338 % 304 % 304 % 296 % 385 % 
ALLL as a % of portfolio loans and leases1.89 %2.03 %2.25 %2.32 %2.34 %
Total losses charged-off$(103)$(109)$(154)$(135)$(163)
Total recoveries of losses previously charged-off5938363433
Total net losses charged-off$(44)$(71)$(118)$(101)$(130)
Net charge-off ratio (NCO ratio)(b)
0.16 %0.27 %0.43 %0.35 %0.44 %
Commercial NCO ratio0.10 %0.17 %0.40 %0.33 %0.40 %
Consumer NCO ratio0.26 %0.43 %0.47 %0.40 %0.52 %
Nonperforming portfolio loans and leases were $621 million in the current quarter, with the resulting NPL ratio of 0.58%. Compared to the prior quarter, NPLs decreased $120 million with the NPL ratio decreasing 10 bps. Compared to the year-ago quarter, NPLs decreased $79 million with the NPL ratio decreasing 3 bps.
Nonperforming portfolio assets were $657 million in the current quarter, with the resulting NPA ratio of 0.61%. Compared to the prior quarter, NPAs decreased $126 million with the NPA ratio decreasing 11 bps. Compared to the year-ago quarter, NPAs decreased $90 million with the NPA ratio decreasing 4 bps.
The benefit from credit losses totaled $115 million in the current quarter. The allowance for credit loss ratio represented 2.06% of total portfolio loans and leases in the current quarter, compared with 2.19% in the prior quarter and 2.50% in the year-ago quarter. In the current quarter, the allowance for credit losses represented 358% of nonperforming portfolio loans
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and leases and 338% of nonperforming portfolio assets. The allowance for loan and lease losses ratio represented 1.89% of total portfolio loans and leases in the current quarter.
Net charge-offs were $44 million in the current quarter, with the resulting NCO ratio of 0.16%. Compared to the prior quarter, net charge-offs decreased $27 million and the NCO ratio decreased 11 bps, reflecting improvement in both commercial and consumer portfolios. Compared to the year-ago quarter, net charge-offs decreased $86 million and the NCO ratio decreased 28 bps.

Capital Position
As of and For the Three Months Ended
JuneMarchDecemberSeptemberJune
20212021202020202020
Capital Position
Average total Bancorp shareholders' equity as a % of average assets11.11 %11.26 %11.34%11.33%11.30 %
Tangible equity(a)
8.35 %8.20 %8.18%8.09%7.68 %
Tangible common equity (excluding AOCI)(a)
7.28 %7.14 %7.11%6.99%6.77 %
Tangible common equity (including AOCI)(a)
8.18 %7.95 %8.29%8.31%8.13 %
Regulatory Capital Ratios(d)(e)
CET1 capital
10.37 %10.46 %10.34%10.14%9.72 %
Tier I risk-based capital
11.83 %11.94 %11.83%11.64%10.96 %
Total risk-based capital
14.60 %14.80 %15.08%14.93%14.24 %
Tier I leverage8.55 %8.61 %8.49%8.37%8.16 %
Capital ratios remained strong this quarter. The CET1 capital ratio was 10.37%, the tangible common equity to tangible assets ratio was 7.28% excluding AOCI, and 8.18% including AOCI. The Tier I risk-based capital ratio was 11.83%, the Total risk-based capital ratio was 14.60%, and the Tier I leverage ratio was 8.55%. 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 second quarter of 2021, Fifth Third repurchased approximately $347 million of its outstanding stock, which reduced common shares by approximately 8.6 million at quarter end.
On June 24, 2021, the Federal Reserve Board (FRB) notified Fifth Third that its required stress capital buffer (SCB) beginning July 1, 2021 will be 2.5%, which is the floor under the regulatory capital rules. Without the floor, Fifth Third's buffer would have been approximately 2.1%.
Fifth Third's capital position and earnings capacity support an increase in the quarterly common dividend starting in the third quarter of 2021, subject to economic conditions and approval by the Fifth Third Board of Directors.

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Tax Rate
The effective tax rate was 22.1% compared with 21.4% in the prior quarter and 19.9% 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 June 30, 2021, the Company had $205 billion in assets and operates 1,096 full-service Banking Centers, and 2,369 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 53,000 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 June 30, 2021, had $483 billion in assets under care, of which it managed $61 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)Second quarter 2021 underlying NIM calculated by reducing average interest-earning assets approximately $31.1 billion resulting from excess cash compared to normalized levels (average other short term investments less a $2.5 billion normalized level) and approximately $4.8 billion from average PPP balances (with a corresponding reduction to net interest income of approximately $53 million), resulting in an underlying NIM of approximately 3.12%; First quarter 2021 underlying NIM calculated by reducing average interest-earning assets approximately $30.2 billion resulting from excess cash compared to normalized levels (average other short term investments less a $2.5 billion normalized level) and approximately $5.2 billion from average PPP balances (with a corresponding reduction to net interest income of approximately $53 million), resulting in an underlying NIM of approximately 3.10%.
(g)Includes commercial customer Eurodollar sweep balances for which the Bank pays rates comparable to other commercial deposit accounts.
(h)Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO.



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. 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”). 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, 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; and (44) changes in law or requirements imposed by Fifth Third’s regulators impacting our capital actions, including dividend payments and stock repurchases.

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.
# # #


12

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Quarterly Financial Review for June 30, 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)JuneMarchJuneJuneJune
202120212020SeqYr/Yr20212020Yr/Yr
Income Statement Data
Net interest income$1,208$1,176$1,2003%1%$2,385$2,429(2%)
Net interest income (FTE)(a)
1,2111,1791,2033%1%2,3912,436(2%)
Noninterest income741749650(1%)14%1,4901,32113%
Total revenue (FTE)(a)
1,9521,9281,8531%5%3,8813,7573%
(Benefit from) provision for credit losses(115)(173)485(34%)NM(288)1,125NM
Noninterest expense1,1531,2151,121(5%)3%2,3692,3212%
Net income7096941952%264%1,403243477%
Net income available to common shareholders674674163—313%1,348193598%
Earnings Per Share Data
Net income allocated to common shareholders$673$672$162—315%$1,344$191604%
Average common shares outstanding (in thousands):
Basic708,833714,433714,767(1%)(1%)711,617714,161—
Diluted718,085723,425717,572(1%)—720,740718,967—
Earnings per share, basic$0.95$0.94$0.231%313%$1.89$0.27600%
Earnings per share, diluted0.940.930.231%309%1.870.27593%
Common Share Data
Cash dividends per common share$0.27$0.27$0.27——$0.54$0.54—
Book value per share29.5728.7828.883%2%29.5728.882%
Market value per share38.2337.4519.282%98%38.2319.2898%
Common shares outstanding (in thousands)703,740711,596712,202(1%)(1%)703,740712,202(1%)
Market capitalization$26,904$26,649$13,7311%96%$26,904$13,73196%
Financial Ratios
Return on average assets1.38 %1.38 %0.40 %—981.38 %0.26 %112
Return on average common equity13.0 %13.1 %3.2 %(10)98013.1 %1.9 %NM
Return on average tangible common equity(a)
16.6 %16.8 %4.3 %(20)NM16.7 %2.7 %NM
Noninterest income as a percent of total revenue(a)
38 %39 %35 %(100)30038 %35 %300
Dividend payout28.4 %28.7 %117.4 %(30)NM28.6 %200.0 %NM
Average total Bancorp shareholders' equity as a percent of average assets11.11 %11.26 %11.30 %(15)(19)11.18 %11.92 %(74)
Tangible common equity(a)
7.28 %7.14 %6.77 %14517.28 %6.76 %52
Net interest margin (FTE)(a)
2.63 %2.62 %2.75 %1(12)2.62 %2.99 %(37)
Efficiency (FTE)(a)
59.1 %63.0 %60.5 %(390)(140)61.0 %61.8 %(80)
Effective tax rate22.1 %21.4 %19.9 %7022021.8 %20.4 %140
Credit Quality
Net losses charged-off$44$71$130(38 %)(66 %)$115$252(54 %)
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.16 %0.27 %0.44 %(11)(28)0.21 %0.44 %(23)
ALLL as a percent of portfolio loans and leases1.89 %2.03 %2.34 %(14)(45)1.89 %2.34 %(45)
ACL as a percent of portfolio loans and leases(g)
2.06 %2.19 %2.50 %(13)(44)2.06 %2.50 %(44)
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.61 %0.72 %0.65 %(11)(4)0.61 %0.65 %(4)
Average Balances
Loans and leases, including held for sale$114,443$113,701$119,4181%(4%)$114,074$115,799(1%)
Securities and other short-term investments70,47569,01456,8062%24%69,74947,92046%
Assets206,353203,836198,3871%4%205,102185,12911%
Transaction deposits(b)
158,779153,834142,0793%12%156,321130,08720%
Core deposits(c)
161,475156,879146,5003%10%159,191134,83818%
Wholesale funding(d)
16,47018,39123,739(10%)(31%)17,42422,786(24%)
Bancorp shareholders' equity22,92722,95222,420—2%22,93922,0664%
Regulatory Capital Ratios(e)(f)
CET1 capital
10.37 %10.46 %9.72 %(9)6510.37 %9.72 %65
Tier I risk-based capital
11.83 %11.94 %10.96 %(11)8711.83 %10.96 %87
Total risk-based capital
14.60 %14.80 %14.24 %(20)3614.60 %14.24 %36
Tier I leverage8.55 %8.61 %8.16 %(6)398.55 %8.16 %39
Operations
Banking centers1,0961,0981,122—(2%)1,0961,122(2%)
ATMs2,3692,3832,456(1%)(4%)2,3692,456(4%)
Full-time equivalent employees19,40219,81920,340(2%)(5%)19,40220,340(5%)
(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 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)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.

14

Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share dataFor the Three Months Ended
(unaudited)JuneMarchDecemberSeptemberJune
20212021202020202020
Income Statement Data
Net interest income$1,208$1,176$1,182$1,170$1,200
Net interest income (FTE)(a)
1,2111,1791,1851,1731,203
Noninterest income741749787722650
Total revenue (FTE)(a)
1,9521,9281,9721,8951,853
(Benefit from) provision for credit losses(115)(173)(13)(15)485
Noninterest expense1,1531,2151,2361,1611,121
Net income709694604581195
Net income available to common shareholders674674569562163
Earnings Per Share Data
Net income allocated to common shareholders$673$672$567$560$162
Average common shares outstanding (in thousands):
Basic708,833714,433715,482715,102714,767
Diluted718,085723,425722,096718,894717,572
Earnings per share, basic$0.95$0.94$0.79$0.78$0.23
Earnings per share, diluted0.940.930.780.780.23
Common Share Data
Cash dividends per common share$0.27$0.27$0.27$0.27$0.27
Book value per share29.5728.7829.4629.2528.88
Market value per share38.2337.4527.5721.3219.28
Common shares outstanding (in thousands)703,740711,596712,760712,328712,202
Market capitalization$26,904$26,649$19,651$15,187$13,731
Financial Ratios
Return on average assets1.38 %1.38 %1.18 %1.14 %0.40 %
Return on average common equity13.0 %13.1 %10.8 %10.7 %3.2 %
Return on average tangible common equity(a)
16.6 %16.8 %13.9 %13.8 %4.3 %
Noninterest income as a percent of total revenue(a)
38 %39 %40 %38 %35 %
Dividend payout28.4 %28.7 %34.2 %34.6 %117.4 %
Average total Bancorp shareholders' equity as a percent of average assets11.11 %11.26 %11.34 %11.33 %11.30 %
Tangible common equity(a)
7.28 %7.14 %7.11 %6.99 %6.77 %
Net interest margin (FTE)(a)
2.63 %2.62 %2.58 %2.58 %2.75 %
Efficiency (FTE)(a)
59.1 %63.0 %62.7 %61.3 %60.5 %
Effective tax rate22.1 %21.4 %19.1 %22.1 %19.9 %
Credit Quality
Net losses charged-off$44$71$118$101$130
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.16 %0.27 %0.43 %0.35 %0.44 %
ALLL as a percent of portfolio loans and leases1.89 %2.03 %2.25 %2.32 %2.34 %
ACL as a percent of portfolio loans and leases(g)
2.06 %2.19 %2.41 %2.49 %2.50 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.61 %0.72 %0.79 %0.84 %0.65 %
Average Balances
Loans and leases, including held for sale$114,443$113,701$111,464$114,613$119,418
Securities and other short-term investments70,47569,01470,95466,09156,806
Assets206,353203,836203,930202,533198,387
Transaction deposits(b)
158,779153,834153,053148,567142,079
Core deposits(c)
161,475156,879156,326152,278146,500
Wholesale funding(d)
16,47018,39118,71621,76223,739
Bancorp shareholders' equity22,92722,95223,12622,95222,420
Regulatory Capital Ratios(e)(f)
CET1 capital
10.37 %10.46 %10.34 %10.14 %9.72 %
Tier I risk-based capital
11.83 %11.94 %11.83 %11.64 %10.96 %
Total risk-based capital
14.60 %14.80 %15.08 %14.93 %14.24 %
Tier I leverage8.55 %8.61 %8.49 %8.37 %8.16 %
Operations
Banking centers1,0961,0981,1341,1221,122
ATMs2,3692,3832,3972,4142,456
Full-time equivalent employees19,40219,81919,87220,28320,340
(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 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)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.
15

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended% ChangeYear to Date% Change
(unaudited)JuneMarchJuneJuneJune
202120212020SeqYr/Yr20212020Yr/Yr
Interest Income
Interest and fees on loans and leases$1,035$1,030$1,115—(7%)$2,064$2,350(12%)
Interest on securities2792642836%(1%)543566(4%)
Interest on other short-term investments98513%80%171242%
Total interest income1,3231,3021,4032%(6%)2,6242,928(10%)
Interest Expense
Interest on deposits152183(29%)(82%)36248(85%)
Interest on federal funds purchased———NMNM—2(100%)
Interest on other short-term borrowings—12(100%)(100%)18(88%)
Interest on long-term debt100104118(4%)(15%)202241(16%)
Total interest expense115126203(9%)(43%)239499(52%)
Net Interest Income1,2081,1761,2003%1%2,3852,429(2%)
(Benefit from) provision for credit losses(115)(173)485(34%)NM(288)1,125NM
Net Interest Income After Provision for Credit Losses1,3231,349715(2%)85%2,6731,304105%
Noninterest Income
Service charges on deposits1491441223%22%2922708%
Commercial banking revenue1601531375%17%31326120%
Mortgage banking net revenue648599(25%)(35%)149219(32%)
Wealth and asset management revenue1451431201%21%28825513%
Card and processing revenue10294829%24%19616717%
Leasing business revenue618757(30%)7%14813113%
Other noninterest income49421217%308%9218411%
Securities gains (losses), net10321233%(52%)13(3)NM
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights1(2)—NMNM(1)3NM
Total noninterest income741749650(1%)14%1,4901,32113%
Noninterest Expense
Compensation and benefits638706627(10%)2%1,3431,2745%
Net occupancy expense777982(3%)(6%)156164(5%)
Technology and communications9493901%4%1871832%
Equipment expense343432—6%68646%
Card and processing expense203029(33%)(31%)5060(17%)
Leasing business expense333533(6%)—6868—
Marketing expense202320(13%)—4351(16%)
Other noninterest expense23721520810%14%454457(1%)
Total noninterest expense1,1531,2151,121(5%)3%2,3692,3212%
Income Before Income Taxes9118832443%273%1,794304490%
Applicable income tax expense202189497%312%39161541%
Net Income7096941952%264%1,403243477%
Dividends on preferred stock35203275%9%555010%
Net Income Available to Common Shareholders$674$674$163—313%$1,348$193598%
16

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended
(unaudited)JuneMarchDecemberSeptemberJune
20212021202020202020
Interest Income
Interest and fees on loans and leases$1,035$1,030$1,028$1,047$1,115
Interest on securities279264278274283
Interest on other short-term investments98985
Total interest income1,3231,3021,3151,3291,403
Interest Expense
Interest on deposits1521274683
Interest on other short-term borrowings—1152
Interest on long-term debt100104105108118
Total interest expense115126133159203
Net Interest Income1,2081,1761,1821,1701,200
(Benefit from) provision for credit losses(115)(173)(13)(15)485
Net Interest Income After Provision for Credit Losses1,3231,3491,1951,185715
Noninterest Income
Service charges on deposits149144146144122
Commercial banking revenue160153141125137
Mortgage banking net revenue6485257699
Wealth and asset management revenue145143133132120
Card and processing revenue10294929282
Leasing business revenue6187697757
Other noninterest income49421682612
Securities gains, net103145121
Securities gains (losses), net - non-qualifying hedges on mortgage servicing rights1(2)(1)(1)—
Total noninterest income741749787722650
Noninterest Expense
Compensation and benefits638706679637627
Net occupancy expense7779989082
Technology and communications9493908990
Equipment expense3434343332
Card and processing expense2030312929
Leasing business expense3335373533
Marketing expense2023302320
Other noninterest expense237215237225208
Total noninterest expense1,1531,2151,2361,1611,121
Income Before Income Taxes911883746746244
Applicable income tax expense20218914216549
Net Income709694604581195
Dividends on preferred stock3520351932
Net Income Available to Common Shareholders$674$674$569$562$163
17

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of% Change
(unaudited)JuneMarchJune
202120212020SeqYr/Yr
Assets
Cash and due from banks$3,285$3,122$3,2215%2%
Other short-term investments32,40934,18728,243(5%)15%
Available-for-sale debt and other securities(a)
38,01237,59538,5991%(2%)
Held-to-maturity securities(b)
101016—(38%)
Trading debt securities711728526(2%)35%
Equity securities3413152738%25%
Loans and leases held for sale5,7305,4779125%528%
Portfolio loans and leases:
  Commercial and industrial loans47,56449,09455,661(3%)(15%)
  Commercial mortgage loans10,34710,48111,233(1%)(8%)
  Commercial construction loans5,8716,1985,479(5%)7%
  Commercial leases3,2383,2553,061(1%)6%
Total commercial loans and leases67,02069,02875,434(3%)(11%)
  Residential mortgage loans16,13115,77616,4572%(2%)
  Home equity4,5454,8155,681(6%)(20%)
  Indirect secured consumer loans15,19214,33612,3956%23%
  Credit card1,7931,8102,211(1%)(19%)
  Other consumer loans3,0523,0902,875(1%)6%
Total consumer loans40,71339,82739,6192%3%
Portfolio loans and leases107,733108,855115,053(1%)(6%)
Allowance for loan and lease losses(2,033)(2,208)(2,696)(8%)(25%)
Portfolio loans and leases, net105,700106,647112,357(1%)(6%)
Bank premises and equipment2,0732,0722,053—1%
Operating lease equipment715718809—(12%)
Goodwill4,2594,2594,261——
Intangible assets117127171(8%)(32%)
Servicing rights8187846764%21%
Other assets11,21010,85810,7893%4%
Total Assets$205,390$206,899$202,906(1%)1%
Liabilities
Deposits:
  Demand$62,760$61,363$49,3592%27%
  Interest checking44,87245,58251,586(2%)(13%)
  Savings20,66720,16216,8963%22%
  Money market30,56430,63030,881—(1%)
  Foreign office15211319135%(20%)
  Other time2,4082,7593,913(13%)(38%)
  Certificates $100,000 and over8601,7844,120(52%)(79%)
Total deposits162,283162,393156,946—3%
Federal funds purchased33830226212%29%
Other short-term borrowings1,1301,1061,2852%(12%)
Accrued taxes, interest and expenses2,0451,8792,5829%(21%)
Other liabilities4,3043,8813,16911%36%
Long-term debt12,36414,74316,327(16%)(24%)
Total Liabilities182,464184,304180,571(1%)1%
Equity
Common stock(c)
2,0512,0512,051——
Preferred stock2,1162,1161,770—20%
Capital surplus3,6023,5923,603——
Retained earnings19,34318,86317,6433%10%
Accumulated other comprehensive income1,9741,7922,95110%(33%)
Treasury stock(6,160)(5,819)(5,683)6%8%
Total Equity22,92622,59522,3351%3%
Total Liabilities and Equity$205,390$206,899$202,906(1%)1%
(a) Amortized cost$36,081$35,963$35,780—1%
(b) Market values10 10 16 —(38%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,000——
Outstanding, excluding treasury703,740711,596712,202(1 %)(1 %)
Treasury220,153212,297211,6904 %4 %


18

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of
(unaudited)JuneMarchDecemberSeptemberJune
20212021202020202020
Assets
Cash and due from banks$3,285$3,122$3,147$2,996$3,221
Other short-term investments32,40934,18733,39931,28528,243
Available-for-sale debt and other securities(a)
38,01237,59537,51337,42538,599
Held-to-maturity securities(b)
1010111516
Trading debt securities711728560704526
Equity securities341315313277273
Loans and leases held for sale5,7305,4774,7412,323912
Portfolio loans and leases:
  Commercial and industrial loans47,56449,09449,66551,69555,661
  Commercial mortgage loans10,34710,48110,60210,87811,233
  Commercial construction loans5,8716,1985,8155,6565,479
  Commercial leases3,2383,2552,9153,0213,061
Total commercial loans and leases67,02069,02868,99771,25075,434
  Residential mortgage loans16,13115,77615,92816,15816,457
  Home equity4,5454,8155,1835,4555,681
  Indirect secured consumer loans15,19214,33613,65312,92512,395
  Credit card1,7931,8102,0072,0872,211
  Other consumer loans3,0523,0903,0142,8562,875
Total consumer loans40,71339,82739,78539,48139,619
Portfolio loans and leases107,733108,855108,782110,731115,053
Allowance for loan and lease losses(2,033)(2,208)(2,453)(2,574)(2,696)
Portfolio loans and leases, net105,700106,647106,329108,157112,357
Bank premises and equipment2,0732,0722,0882,0902,053
Operating lease equipment715718777818809
Goodwill4,2594,2594,2584,2614,261
Intangible assets117127139157171
Servicing rights818784656660676
Other assets11,21010,85810,74910,82810,789
Total Assets$205,390$206,899$204,680$201,996$202,906
Liabilities
Deposits:
  Demand$62,760$61,363$57,711$51,896$49,359
  Interest checking44,87245,58247,27049,56651,586
  Savings20,66720,16218,25817,22116,896
  Money market30,56430,63030,65031,19230,881
  Foreign office152113143160191
  Other time2,4082,7593,0233,3373,913
  Certificates $100,000 and over8601,7842,0263,3114,120
Total deposits162,283162,393159,081156,683156,946
Federal funds purchased338302300251262
Other short-term borrowings1,1301,1061,1921,1961,285
Accrued taxes, interest and expenses2,0451,8792,6142,5002,582
Other liabilities4,3043,8813,4093,2923,169
Long-term debt12,36414,74314,97315,12316,327
Total Liabilities182,464184,304181,569179,045180,571
Equity
Common stock(c)
2,0512,0512,0512,0512,051
Preferred stock2,1162,1162,1162,1161,770
Capital surplus3,6023,5923,6353,6243,603
Retained earnings19,34318,86318,38418,01017,643
Accumulated other comprehensive income1,9741,7922,6012,8312,951
Treasury stock(6,160)(5,819)(5,676)(5,681)(5,683)
Total Equity22,92622,59523,11122,95122,335
Total Liabilities and Equity$205,390$206,899$204,680$201,996$202,906
(a) Amortized cost$36,081$35,963$34,982$34,693$35,780
(b) Market values1010111516
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,0002,000,0002,000,000
Outstanding, excluding treasury703,740711,596712,760712,328712,202
Treasury220,153212,297211,132211,565211,690
19

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months EndedYear to Date
JuneJuneJuneJune
2021202020212020
Total Equity, Beginning$22,595$21,873$23,111$21,203
Net income7091951,403243
Other comprehensive (loss) income, net of tax:
Change in unrealized (losses) gains:
Available-for-sale debt securities230456(459)1,338
Qualifying cash flow hedges(49)17(170)419
Change in accumulated other comprehensive income related to employee benefit plans1122
Comprehensive income8916697762,002
Cash dividends declared:
Common stock(192)(195)(387)(390)
Preferred stock(35)(32)(55)(50)
Impact of stock transactions under stock compensation plans, net1520943
Shares acquired for treasury(347)—(527)—
Other(1)—(1)(1)
Impact of cumulative effect of change in accounting principles———(472)
Total Equity, Ending$22,926$22,335$22,926$22,335
20

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisFor the Three Months Ended
$ in millionsJuneMarchJune
(unaudited)202120212020
AverageAverageAverageAverageAverageAverage
BalanceYield/RateBalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$48,8173.62 %$49,7153.60 %$59,1063.47 %
  Commercial mortgage loans(a)
10,4673.11 %10,5343.06 %11,2243.44 %
  Commercial construction loans(a)
6,0433.09 %6,0393.20 %5,5483.53 %
  Commercial leases(a)
3,1742.94 %3,1303.17 %3,0563.47 %
Total commercial loans and leases68,5013.47 %69,4183.46 %78,9343.47 %
  Residential mortgage loans21,7403.29 %20,4443.36 %17,4053.53 %
  Home equity4,6743.60 %5,0093.58 %5,8203.60 %
  Indirect secured consumer loans14,7023.41 %13,9553.58 %12,1244.04 %
  Credit card1,77012.13 %1,87912.36 %2,24811.28 %
  Other consumer loans3,0565.96 %2,9966.12 %2,8876.50 %
Total consumer loans45,9423.88 %44,2834.02 %40,4844.34 %
Total loans and leases114,4433.63 %113,7013.68 %119,4183.76 %
Securities:
Taxable securities36,0973.06 %35,7642.97 %36,8173.08 %
Tax exempt securities(a)
8202.47 %5332.26 %1562.96 %
Other short-term investments33,5580.11 %32,7170.10 %19,8330.11 %
Total interest-earning assets184,9182.88 %182,7152.90 %176,2243.21 %
Cash and due from banks3,0332,9913,121
Other assets20,60820,58021,394
Allowance for loan and lease losses(2,206)(2,450)(2,352)
Total Assets$206,353$203,836$198,387
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$45,3070.06 %$45,5680.07 %$49,7600.24 %
  Savings deposits20,4940.02 %18,9510.03 %16,3540.06 %
  Money market deposits30,8440.05 %30,6010.05 %30,0220.32 %
  Foreign office deposits1400.03 %1280.05 %1820.09 %
  Other time deposits2,6960.27 %3,0450.44 %4,4211.21 %
Total interest-bearing core deposits99,4810.05 %98,2930.06 %100,7390.27 %
  Certificates $100,000 and over1,1440.80 %2,0091.08 %4,0671.40 %
  Other deposits—— —— 310.04 %
  Federal funds purchased3460.10 %3240.13 %3090.16 %
  Other short-term borrowings1,0970.12 %1,2090.24 %2,3770.32 %
  Long-term debt13,8832.85 %14,8492.83 %16,9552.80 %
Total interest-bearing liabilities115,9510.40 %116,6840.44 %124,4780.66 %
Demand deposits61,99458,58645,761
Other liabilities5,4815,6145,727
Total Liabilities183,426180,884175,966
Total Equity22,92722,95222,421
Total Liabilities and Equity$206,353$203,836$198,387
Ratios:
  Net interest margin (FTE)(b)
2.63 %2.62 %2.75 %
  Net interest rate spread (FTE)(b)
2.48 %2.46 %2.55 %
  Interest-bearing liabilities to interest-earning assets62.70 %63.86 %70.64 %
(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.









21

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisYear to Date
$ in millionsJuneJune
(unaudited)20212020
AverageAverageAverageAverage
BalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$49,2633.61 %$55,3993.83 %
  Commercial mortgage loans(a)
10,5003.09 %11,1223.94 %
  Commercial construction loans(a)
6,0413.15 %5,3404.15 %
  Commercial leases(a)
3,1523.05 %3,1283.47 %
Total commercial loans and leases68,9563.46 %74,9893.86 %
  Residential mortgage loans21,0953.32 %17,7153.58 %
  Home equity4,8413.59 %5,9134.16 %
  Indirect secured consumer loans14,3313.49 %11,9674.07 %
  Credit card1,82412.25 %2,37311.72 %
  Other consumer loans3,0276.04 %2,8427.09 %
Total consumer loans45,1183.95 %40,8104.53 %
Total loans and leases114,0743.66 %115,7994.09 %
Securities:
  Taxable securities35,9323.01 %36,3953.12 %
  Tax exempt securities(a)
6772.39 %1593.00 %
Other short-term investments33,1400.10 %11,3660.22 %
Total interest-earning assets183,8232.89 %163,7193.61 %
Cash and due from banks3,0123,000
Other assets20,59520,509
Allowance for loan and lease losses(2,328)(2,099)
Total Assets$205,102$185,129
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$45,4370.06 %$45,0290.46 %
  Savings deposits19,7270.02 %15,5340.09 %
  Money market deposits30,7230.05 %28,5650.51 %
  Foreign office deposits1340.04 %1960.35 %
  Other time deposits2,8700.36 %4,7511.40 %
Total interest-bearing core deposits98,8910.06 %94,0750.46 %
  Certificates $100,000 and over1,5740.98 %3,7111.71 %
  Other deposits—— 1440.76 %
  Federal funds purchased3350.11 %4810.82 %
  Other short-term borrowings1,1530.18 %2,0630.74 %
  Long-term debt14,3622.84 %16,3872.95 %
Total interest-bearing liabilities116,3150.42 %116,8610.86 %
Demand deposits60,30040,763
Other liabilities5,5485,438
Total Liabilities182,163163,062
Total Equity22,93922,067
Total Liabilities and Equity$205,102$185,129
Ratios:
  Net interest margin (FTE)(b)
2.62 %2.99 %
  Net interest rate spread (FTE)(b)
2.47 %2.75 %
  Interest-bearing liabilities to interest-earning assets63.28 %71.38 %
(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.
22

Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millionsFor the Three Months Ended
(unaudited)JuneMarchDecemberSeptemberJune
20212021202020202020
Average Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$48,773$49,629$50,385$54,004$59,040
  Commercial mortgage loans10,45910,53210,72711,06911,222
  Commercial construction loans6,0436,0395,8205,5345,548
  Commercial leases3,1743,1142,9322,9663,056
Total commercial loans and leases68,44969,31469,86473,57378,866
Consumer loans:
  Residential mortgage loans15,88315,80316,01616,61816,561
  Home equity4,6745,0095,3155,5815,820
  Indirect secured consumer loans14,70213,95513,27212,59912,124
  Credit card1,7701,8792,0422,1342,248
  Other consumer loans3,0562,9962,8512,8572,887
Total consumer loans40,08539,64239,49639,78939,640
Total average portfolio loans and leases$108,534$108,956$109,360$113,362$118,506
Average Loans and Leases Held for Sale
Average commercial loans and leases held for sale$52$104$56$55$68
Average consumer loans held for sale5,8574,6412,0481,196844
Average loans and leases held for sale$5,909$4,745$2,104$1,251$912
End of Period Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$47,564$49,094$49,665$51,695$55,661
  Commercial mortgage loans10,34710,48110,60210,87811,233
  Commercial construction loans5,8716,1985,8155,6565,479
  Commercial leases3,2383,2552,9153,0213,061
Total commercial loans and leases67,02069,02868,99771,25075,434
Consumer loans:
  Residential mortgage loans16,13115,77615,92816,15816,457
  Home equity4,5454,8155,1835,4555,681
  Indirect secured consumer loans15,19214,33613,65312,92512,395
  Credit card1,7931,8102,0072,0872,211
  Other consumer loans3,0523,0903,0142,8562,875
Total consumer loans40,71339,82739,78539,48139,619
Total portfolio loans and leases$107,733$108,855$108,782$110,731$115,053
End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale$46$80$276$59$72
Consumer loans held for sale5,6845,3974,4652,264840
Loans and leases held for sale$5,730$5,477$4,741$2,323$912
Operating lease equipment$715$718$777$818$809
Loans and Leases Serviced for Others(a)
Commercial and industrial loans$919$1,011$979$903$967
Commercial mortgage loans623639653585592
Commercial construction loans528592601623536
Commercial leases536547569584582
Residential mortgage loans71,49665,92268,80073,52178,804
Other consumer loans5050505050
Total loans and leases serviced for others74,15268,76171,65276,26681,531
Total loans and leases serviced$188,330$183,811$185,952$190,138$198,305
(a) Fifth Third sells certain loans and leases and obtains servicing responsibilities.
23

Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millionsAs of
(unaudited)JuneMarchDecemberSeptemberJune
2021(a)
2021202020202020
Regulatory Capital(b)
CET1 capital$15,050$14,931$14,682$14,307$13,935
Additional tier I capital2,1162,1172,1152,1151,769
Tier I capital17,16617,04816,79716,42215,704
Tier II capital4,0184,0834,6154,6454,703
Total regulatory capital$21,184$21,131$21,412$21,067$20,407
Risk-weighted assets
$145,079$142,799$141,974$141,083$143,322
Ratios
Average total Bancorp shareholders' equity as a percent of average assets11.11 %11.26 %11.34 %11.33 %11.30 %
Regulatory Capital Ratios(b)
Fifth Third Bancorp
CET1 capital
10.37 %10.46 %10.34 %10.14 %9.72 %
Tier I risk-based capital
11.83 %11.94 %11.83 %11.64 %10.96 %
Total risk-based capital
14.60 %14.80 %15.08 %14.93 %14.24 %
Tier I leverage8.55 %8.61 %8.49 %8.37 %8.16 %
Fifth Third Bank
Tier I risk-based capital
11.67 %12.70 %12.28 %12.25 %11.76 %
Total risk-based capital
13.27 %14.41 %14.17 %14.14 %13.65 %
Tier I leverage8.46 %9.19 %8.85 %8.85 %8.80 %
(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)JuneMarchDecemberSeptemberJune
20212021202020202020
Average portfolio loans and leases:
  Commercial and industrial loans$48,773$49,629$50,385$54,004$59,040
  Commercial mortgage loans10,45910,53210,72711,06911,222
  Commercial construction loans6,0436,0395,8205,5345,548
  Commercial leases3,1743,1142,9322,9663,056
Total commercial loans and leases68,44969,31469,86473,57378,866
  Residential mortgage loans15,88315,80316,01616,61816,561
  Home equity4,6745,0095,3155,5815,820
  Indirect secured consumer loans14,70213,95513,27212,59912,124
  Credit card1,7701,8792,0422,1342,248
  Other consumer loans3,0562,9962,8512,8572,887
Total consumer loans40,08539,64239,49639,78939,640
Total average portfolio loans and leases$108,534$108,956$109,360$113,362$118,506
Losses charged-off:
  Commercial and industrial loans($36)($32)($44)($45)($68)
  Commercial mortgage loans(8)(3)(31)(11)(2)
  Commercial leases(1)——(10)(11)
Total commercial loans and leases(45)(35)(75)(66)(81)
  Residential mortgage loans(1)(1)(4)(1)(2)
  Home equity(2)(3)(3)(4)(3)
  Indirect secured consumer loans(11)(18)(19)(11)(15)
  Credit card(26)(31)(31)(34)(40)
  Other consumer loans(18)(21)(22)(19)(22)
Total consumer loans(58)(74)(79)(69)(82)
Total losses charged-off($103)($109)($154)($135)($163)
Recoveries of losses previously charged-off:
  Commercial and industrial loans$23$5$3$3$3
  Commercial mortgage loans211——
  Commercial leases3112—
Total commercial loans and leases287553
  Residential mortgage loans11221
  Home equity33332
  Indirect secured consumer loans1191088
  Credit card66656
  Other consumer loans1012101113
Total consumer loans3131312930
Total recoveries of losses previously charged-off$59$38$36$34$33
Net losses charged-off:
  Commercial and industrial loans($13)($27)($41)($42)($65)
  Commercial mortgage loans(6)(2)(30)(11)(2)
  Commercial leases211(8)(11)
Total commercial loans and leases(17)(28)(70)(61)(78)
  Residential mortgage loans——(2)1(1)
  Home equity1——(1)(1)
  Indirect secured consumer loans—(9)(9)(3)(7)
  Credit card(20)(25)(25)(29)(34)
  Other consumer loans(8)(9)(12)(8)(9)
Total consumer loans(27)(43)(48)(40)(52)
Total net losses charged-off($44)($71)($118)($101)($130)
Net losses charged-off as a percent of average portfolio loans and leases (annualized):
  Commercial and industrial loans0.11 %0.22 %0.33 %0.31 %0.45 %
  Commercial mortgage loans0.22 %0.09 %1.13 %0.39 %0.07 %
  Commercial leases(0.21 %)(0.09 %)(0.15 %)1.09 %1.47 %
Total commercial loans and leases0.10 %0.17 %0.40 %0.33 %0.40 %
  Residential mortgage loans(0.01 %)(0.01 %)0.04 %(0.02 %)0.02 %
  Home equity(0.09 %)0.01 %— 0.07 %0.07 %
  Indirect secured consumer loans0.01 %0.25 %0.28 %0.11 %0.24 %
  Credit card4.52 %5.50 %4.95 %5.44 %6.17 %
  Other consumer loans0.91 %1.17 %1.50 %1.05 %1.17 %
Total consumer loans0.26 %0.43 %0.47 %0.40 %0.52 %
Total net losses charged-off as a percent of average portfolio loans and leases (annualized)0.16 %0.27 %0.43 %0.35 %0.44 %
25

Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millionsFor the Three Months Ended
(unaudited)JuneMarchDecemberSeptemberJune
20212021202020202020
Allowance for Credit Losses
Allowance for loan and lease losses, beginning$2,208$2,453$2,574$2,696$2,348
  Total net losses charged-off(44)(71)(118)(101)(130)
(Benefit from) provision for loan and lease losses(131)(174)(3)(21)478
Allowance for loan and lease losses, ending$2,033$2,208$2,453$2,574$2,696
Reserve for unfunded commitments, beginning$173$172$182$176$169
  Provision for (benefit from) the reserve for unfunded commitments161(10)67
Reserve for unfunded commitments, ending$189$173$172$182$176
Components of allowance for credit losses:
  Allowance for loan and lease losses$2,033$2,208$2,453$2,574$2,696
  Reserve for unfunded commitments189173172182176
Total allowance for credit losses$2,222$2,381$2,625$2,756$2,872
As of
JuneMarchDecemberSeptemberJune
20212021202020202020
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
  Commercial and industrial loans$193$197$230$266$94
  Commercial mortgage loans4350829989
  Commercial construction loans—1———
  Commercial leases9671622
  Residential mortgage loans1722253014
  Home equity5355525052
  Indirect secured consumer loans66985
  Other consumer loans12232
Total nonaccrual portfolio loans and leases (excludes restructured loans)322339407472278
Nonaccrual restructured portfolio commercial loans and leases164255319307282
Nonaccrual restructured portfolio consumer loans and leases(c)
135147108112140
Total nonaccrual portfolio loans and leases621741834891700
Repossessed property57974
OREO3135213343
Total nonperforming portfolio loans and leases and OREO657783864931747
Nonaccrual loans held for sale1325101
Nonaccrual restructured loans held for sale2720111
Total nonperforming assets$697$805$870$942$749
Restructured portfolio consumer loans and leases (accrual)$699$763$796$818$963
Restructured portfolio commercial loans and leases (accrual)$80$81$92$123$119
Loans and leases 90 days past due (accrual):
  Commercial and industrial loans$2$8$39$4$10
  Commercial mortgage loans4782623
  Commercial construction loans—1———
  Commercial leases——12—
Total commercial loans and leases616483233
  Residential mortgage loans(c)
5773706754
  Home equity1122—
  Indirect secured consumer loans48101012
  Credit card1425312736
  Other consumer loans11211
Total consumer loans77108115107103
Total loans and leases 90 days past due (accrual)(b)
$83$124$163$139$136
Ratios
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.16 %0.27 %0.43 %0.35 %0.44 %
Allowance for credit losses:
As a percent of portfolio loans and leases2.06 %2.19 %2.41 %2.49 %2.50 %
   As a percent of nonperforming portfolio loans and leases(a)
358 %321 %315 %309 %410 %
   As a percent of nonperforming portfolio assets(a)
338 %304 %304 %296 %385 %
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO(a)
0.58 %0.68 %0.77 %0.80 %0.61 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
0.61 %0.72 %0.79 %0.84 %0.65 %
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property0.61 %0.70 %0.77 %0.83 %0.65 %
(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)JuneMarchDecemberSeptemberJune
20212021202020202020
Net interest income$1,208$1,176$1,182$1,170$1,200
Add: Taxable equivalent adjustment33333
Net interest income (FTE) (a)1,2111,1791,1851,1731,203
Net interest income (annualized) (b)4,8454,7694,7024,6554,826
Net interest income (FTE) (annualized) (c)4,8574,7824,7144,6674,838
Interest income1,3231,3021,3151,3291,403
Add: Taxable equivalent adjustment33333
Interest income (FTE)1,3261,3051,3181,3321,406
Interest income (FTE) (annualized) (d)5,3195,2935,2435,2995,655
Interest expense (annualized) (e)461511529633816
Average interest-earning assets (f)184,918182,715182,418180,704176,224
Average interest-bearing liabilities (g)115,951116,684118,677123,626124,478
Net interest margin (b) / (f)2.62 %2.61 %2.58 %2.58 %2.74 %
Net interest margin (FTE) (c) / (f)2.63 %2.62 %2.58 %2.58 %2.75 %
Net interest rate spread (FTE) (d) / (f) - (e) / (g)2.48 %2.46 %2.42 %2.42 %2.55 %
Income before income taxes$911$883$746$746$244
Add: Taxable equivalent adjustment33333
Income before income taxes (FTE)$914$886$749$749$247
Net income available to common shareholders$674$674$569$562$163
Add: Intangible amortization, net of tax89999
Tangible net income available to common shareholders (h)682683578571172
Tangible net income available to common shareholders (annualized) (i)2,7352,7702,2992,272692
Average Bancorp shareholders' equity22,92722,95223,12622,95222,420
Less: Average preferred stock(2,116)(2,116)(2,116)(2,007)(1,770)
Average goodwill(4,259)(4,259)(4,261)(4,261)(4,261)
Average intangible assets(122)(133)(151)(164)(178)
Average tangible common equity, including AOCI (j)16,43016,44416,59816,52016,211
Less:Average AOCI(1,968)(2,231)(2,623)(2,919)(2,702)
Average tangible common equity, excluding AOCI (k)14,46214,21313,97513,60113,509
Total Bancorp shareholders' equity22,92622,59523,11122,95122,335
Less:Preferred stock(2,116)(2,116)(2,116)(2,116)(1,770)
Goodwill(4,259)(4,259)(4,258)(4,261)(4,261)
Intangible assets(117)(127)(139)(157)(171)
Tangible common equity, including AOCI (l)16,43416,09316,59816,41716,133
Less:AOCI(1,974)(1,792)(2,601)(2,831)(2,951)
Tangible common equity, excluding AOCI (m)14,46014,30113,99713,58613,182
Add:Preferred stock2,1162,1162,1162,1161,770
Tangible equity (n)16,57616,41716,11315,70214,952
Total assets205,390206,899204,680201,996202,906
Less:Goodwill(4,259)(4,259)(4,258)(4,261)(4,261)
Intangible assets(117)(127)(139)(157)(171)
Tangible assets, including AOCI (o)201,014202,513200,283197,578198,474
Less:AOCI, before tax(2,499)(2,268)(3,292)(3,584)(3,735)
Tangible assets, excluding AOCI (p)$198,515$200,245$196,991$193,994$194,739
Common shares outstanding (q)704712713712712
Tangible equity (n) / (p)8.35 %8.20 %8.18 %8.09 %7.68 %
Tangible common equity (excluding AOCI) (m) / (p)7.28 %7.14 %7.11 %6.99 %6.77 %
Tangible common equity (including AOCI) (l) / (o)8.18 %7.95 %8.29 %8.31 %8.13 %
Tangible book value per share (l) / (q)$23.34$22.60$23.28$23.06$22.66
28

Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ in millionsFor the Three Months Ended
(unaudited)JuneMarchJune
202120212020
Net income (r)$709$694$195
Net income (annualized) (s)2,8442,815784
Adjustments (pre-tax items)
Valuation of Visa total return swap371329
Branch and non-branch real estate charges--12
Merger-related expenses--9
FHLB debt extinguishment charge--6
Adjustments, after-tax (t)(a)
281043
Noninterest income (u)741749650
Valuation of Visa total return swap371329
Branch and non-branch real estate charges--12
Adjusted noninterest income (v)778762691
Noninterest expense (w)1,1531,2151,121
Merger-related expenses--(9)
FHLB debt extinguishment charge--(6)
Adjusted noninterest expense (x)1,1531,2151,106
Adjusted net income (r) + (t)737704238
Adjusted net income (annualized) (y)2,9562,855957
Adjusted tangible net income available to common shareholders (h) + (t)710693215
Adjusted tangible net income available to common shareholders (annualized) (z)2,8482,811865
Average assets (aa)$206,353$203,836$198,387
Return on average tangible common equity (i) / (j)16.6 %16.8 %4.3 %
Return on average tangible common equity excluding AOCI (i) / (k)18.9 %19.5 %5.1 %
Adjusted return on average tangible common equity, including AOCI (z) / (j)17.3 %17.1 %5.3 %
Adjusted return on average tangible common equity, excluding AOCI (z) / (k)19.7 %19.8 %6.4 %
Return on average assets (s) / (aa)1.38 %1.38 %0.40 %
Adjusted return on average assets (y) / (aa)1.43 %1.40 %0.48 %
Efficiency ratio (FTE) (w) / [(a) + (u)]59.1 %63.0 %60.5 %
Adjusted efficiency ratio (x) / [(a) + (v)]58.0 %62.6 %58.4 %
Total revenue (FTE) (a) + (u)$1,952$1,928$1,853
Pre-provision net revenue (PPNR) (a) + (u) - (w)$799$713$732
Adjusted pre-provision net revenue (PPNR) (a) + (v) - (x)$836$726$788
(a) Assumes a 23% tax rate
29

Fifth Third Bancorp and Subsidiaries
Segment Presentation
$ in millions
(unaudited)
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
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
(a) Includes taxable equivalent adjustments of $3 million, $3 million, $3 million, $3 million and $3 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, 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.
30