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Published: 2021-04-20 00:00:00 ET
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EX-99.1 2 q12021earningsrelease.htm EX-99.1 Document

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Fifth Third Announces First Quarter 2021 Results
Reported diluted earnings per share of $0.93

Key Financial DataKey Highlights
$ millions for all balance sheet and income statement items
1Q21
4Q20
1Q20
Returned $180 million to shareholders through repurchases; capacity to repurchase up to $347 million in 2Q21
ROTCE(a) of 16.8%; adjusted ROTCE(a) of 19.8% excl. AOCI improved 150 bps sequentially
Produced record commercial banking revenue
Generated consumer household growth of 3% compared to 1Q20
Historically low NCO ratio reflecting improvements in commercial and consumer
Benefit to credit losses and resulting reserve coverage reflects improved macroeconomic environment and strong credit results; NPA ratio improved 7 bps sequentially
NII(a) down 1%; reported NIM(a) increased 4 bps, with ~4 bps decline in underlying NIM excl. excess cash and all PPP impacts(f)
Named one of the "World's Most Ethical Companies" by Ethisphere
Exceeded five-year commitment to low-and-moderate income communities by more than $9 billion
Income Statement Data
Net income available to common shareholders$674$569$29
Net interest income (U.S. GAAP)1,1761,1821,229
Net interest income (FTE)(a)
1,1791,1851,233
Noninterest income749787671
Noninterest expense1,2151,2361,200
Per Share Data
Earnings per share, basic$0.94$0.79$0.04
Earnings per share, diluted0.930.780.04
Book value per share28.7829.4628.26
Tangible book value per share(a)
22.6023.2822.02
Balance Sheet & Credit Quality
Average portfolio loans and leases$108,956$109,360$110,779
Average deposits158,888158,626126,789
Net charge-off ratio(b)
0.27%0.43%0.44%
Nonperforming asset ratio(c)
0.720.790.60
Financial Ratios
Return on average assets1.38%1.18%0.11%
Return on average common equity13.110.80.6
Return on average tangible common equity(a)
16.813.91.0
CET1 capital(d)(e)
10.4610.349.37
Net interest margin(a)
2.622.583.28
Efficiency(a)
63.062.763.0
Other than the Quarterly Financial Review tables beginning on page 13, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.
CEO Commentary

"Fifth Third’s quarterly financial performance was once again strong, reflecting record commercial banking revenue, continued momentum generating household growth, a strong underlying net interest margin, and historically low net charge-offs with improvements in both commercial and consumer portfolios.

Our credit results continue to demonstrate the strength of our balance sheet, as we have maintained our disciplined client selection, adhered to our conservative underwriting, and continued to manage our balance sheet exposures with a focus on a long-term performance horizon. I am optimistic that we will continue to benefit from an improving economic environment, including higher interest rates, as well as a more vibrant economy over the next year within most of our commercial franchise and throughout our retail footprint.

Despite the overall economic recovery over the past several quarters, I recognize that not everyone in our society has benefited from it. This is why I am very proud that, in addition to producing strong financial results, we have also continued to take deliberate actions to improve the lives of our customers and the well-being of our communities. I am particularly pleased that we exceeded our five-year community commitment to invest in low-and-moderate income communities by more than $9 billion.

We were honored to be named one of the world’s most ethical companies by Ethisphere, reflecting our strong corporate culture, compliance program, and ESG actions. We are guided by our core values to work as one bank, be respectful, take accountability, and always act with integrity. We remain committed to generating sustainable long-term value for shareholders and anticipate that we will continue improving our relative performance 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 April 20, 2021



        
Income Statement Highlights
($ in millions, except per share data)For the Three Months Ended% Change
MarchDecemberMarch
202120202020SeqYr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,179$1,185$1,233(1)%(4)%
(Benefit from) provision for credit losses(173)(13)640NMNM
Noninterest income749787671(5)%12%
Noninterest expense1,2151,2361,200(2)%1%
Income before income taxes(a)
$886$749$6418%NM
Taxable equivalent adjustment$3$3$4(25)%
Applicable income tax expense1891421433%NM
Net income$694$604$4615%NM
Dividends on preferred stock203517(43)%18%
Net income available to common shareholders$674$569$2918%NM
Earnings per share, diluted$0.93$0.78$0.0419%NM
Fifth Third Bancorp (NASDAQ®: FITB) today reported first quarter 2021 net income of $694 million compared to net income of $604 million in the prior quarter and $46 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $674 million, or $0.93 per diluted share, compared to $569 million, or $0.78 per diluted share, in the prior quarter and $29 million, or $0.04 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
MarchDecemberMarch
202120202020SeqYr/Yr
Interest Income
Interest income$1,305 $1,318 $1,529 (1)%(15)%
Interest expense126133296(5)%(57)%
Net interest income (NII)$1,179 $1,185 $1,233 (1)%(4)%
Average Yield/Rate Analysisbps Change
Yield on interest-earning assets2.90 %2.87 %4.07 %3(117)
Rate paid on interest-bearing liabilities0.44 %0.45 %1.09 %(1)(65)
Ratios
Net interest rate spread2.46 %2.42 %2.98 %4(52)
Net interest margin (NIM)2.62 %2.58 %3.28 %4(66)
Compared to the prior quarter, NII decreased $6 million, or 1%, primarily due to lower day count and a reduction in prepayment penalties received in the investment portfolio, partially offset by the impact of loan purchases of government guaranteed GNMA loan buyouts associated with CARES Act forbearance plans from a third party ($2.1 billion in December 2020 and $0.6 billion in March 2021), as well as approximately $12 million in incremental PPP fees reflecting loan forgiveness. Compared to the prior quarter, NIM increased 4 bps reflecting a decline in excess liquidity, an increase in PPP fees, and the impact of day count, partially offset by the reduction in investment portfolio prepayment penalties received relative to the prior quarter. First quarter 2021 NIM was negatively impacted by approximately 48 bps due to the impacts of PPP and excess liquidity relative to historical balances, compared to 56 bps in the prior quarter.
Compared to the year-ago quarter, NII decreased $54 million, or 4%, primarily reflecting lower market rates and lower commercial loan balances, partially offset by lower deposit costs, the favorable impact of previously executed cash flow hedges, and interest income from PPP loans. Compared to the year-ago quarter, NIM decreased 66 bps, primarily reflecting the impact of excess liquidity, lower market rates, and lower commercial loan balances, partially offset by lower deposit costs.
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Noninterest Income
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202120202020SeqYr/Yr
Noninterest Income
Service charges on deposits$144$146$148(1)%(3)%
Commercial banking revenue1531411249%23%
Mortgage banking net revenue8525120240%(29)%
Wealth and asset management revenue1431331348%7%
Card and processing revenue9492862%9%
Leasing business revenue87697326%19%
Other noninterest income421687(75)%500%
Securities gains (losses), net314(24)(79)%NM
Securities (losses) gains, net - non-qualifying hedges
   on mortgage servicing rights(2)(1)3100%NM
Total noninterest income$749$787$671(5)%12%
Reported noninterest income decreased $38 million, or 5%, from the prior quarter, and increased $78 million, or 12%, 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 $4 million attributable to mark-to-market impacts related to non-qualified deferred compensation assets in the current quarter.
Noninterest Income excluding certain items
($ in millions)For the Three Months Ended
MarchDecemberMarch
202120202020
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)$749 $787 $671 
Valuation of Visa total return swap133022
Net business dispositions charge11
Net impairment of private equity investments15
Securities (gains) losses, net(3)(14)24
Noninterest income excluding certain items(a)
$759 $814 $732 
Compared to the prior quarter, noninterest income excluding certain items decreased $55 million, or 7%. Compared to the year-ago quarter, noninterest income excluding certain items increased $27 million, or 4%.
Compared to the prior quarter, service charges on deposits decreased $2 million, or 1%, as a decrease in consumer deposit fees was partially offset by an increase in commercial deposit fees. Commercial banking revenue increased $12 million, or 9%, primarily driven by strong debt capital markets revenue combined with increased equity capital markets revenue, partially offset by lower M&A advisory revenue. Mortgage banking net revenue increased $60 million, or 240%, reflecting a $42 million increase in origination fees and gains on loan sales reflecting increased origination volumes and a $31 million improvement from MSR net valuation adjustments. This was partially offset by lower servicing revenue and elevated MSR asset decay. Current quarter mortgage originations of $4.7 billion increased 19% compared to the prior quarter. Wealth and asset management revenue increased $10 million, or 8%, driven by seasonally strong tax-related private client service revenue and higher personal asset management revenue reflecting market improvements. Card and processing revenue increased $2 million, or 2%, primarily driven by higher debit interchange and lower rewards, partially offset by a decrease in credit spend volume. Leasing business revenue increased $18 million, or 26%, primarily driven by strong lease syndication revenue, partially offset by lower income related to operating leases. Other noninterest income results were impacted by both the recognition of tax receivable agreement revenue of $74 million as well as private equity income in the prior quarter.
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Compared to the year-ago quarter, service charges on deposits decreased $4 million, or 3%, as a decline in consumer deposit fees was partially offset by an increase in commercial deposit fees. Commercial banking revenue increased $29 million, or 23%, reflecting an increase in debt capital markets revenue, loan syndication revenue, and M&A advisory revenue, partially offset by lower financial risk management revenue. Mortgage banking net revenue decreased $35 million, or 29%, primarily driven by elevated MSR asset decay and lower servicing revenue, partially offset by an increase in mortgage origination fees and gain on loan sales. Wealth and asset management revenue increased $9 million, or 7%, primarily driven by higher personal asset management revenue and brokerage fees. Card and processing revenue increased by $8 million, or 9%, primarily reflecting higher consumer card spend and transaction volumes combined with lower rewards. Leasing business revenue increased $14 million, or 19%, primarily reflecting strong lease syndication revenue, partially offset by lower income related to operating leases.
Noninterest Expense
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202120202020SeqYr/Yr
Noninterest Expense
Compensation and benefits$706 $679 $647 4%9%
Net occupancy expense799882(19)%(4)%
Technology and communications9390933%
Equipment expense3434326%
Card and processing expense303131(3)%(3)%
Leasing business expense353735(5)%
Marketing expense233031(23)%(26)%
Other noninterest expense215237249(9)%(14)%
Total noninterest expense$1,215 $1,236 $1,200 (2)%1%
Reported noninterest expense decreased $21 million, or 2%, from the prior quarter, and increased $15 million, or 1%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
Noninterest Expense excluding certain items
($ in millions)For the Three Months Ended
MarchDecemberMarch
202120202020
Noninterest Expense excluding certain items
Noninterest expense (U.S. GAAP)$1,215 $1,236 $1,200 
Fifth Third Foundation contribution(25)
Branch and non-branch real estate charges(21)
Business acquisition and merger-related charges(16)(7)
Noninterest expense excluding certain items(a)
$1,215 $1,174 $1,193 
Compared to the prior quarter, noninterest expense excluding certain items increased $41 million, or 3%, primarily due to a seasonal increase in compensation and benefits expense as well as expenses linked to strong business performance, partially offset by lower other noninterest expense, net occupancy expense, and the mark-to-market impacts of approximately $7 million in non-qualified deferred compensation expense in the current quarter compared to a $19 million expense in the prior quarter. Compared to the year-ago quarter, noninterest expense excluding certain items increased $22 million, or 2%, primarily reflecting an increase in compensation and benefits expense, the unfavorable impact of $33 million from non-qualified deferred expenses compared to the year-ago quarter and servicing expense associated with recently-purchased consumer loans, partially offset by lower other noninterest expense (reflecting a $36 million unfavorable credit valuation adjustment in the year-ago quarter) and lower marketing expense.
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Average Interest-Earning Assets
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202120202020SeqYr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans$49,629 $50,385 $51,586 (2)%(4)%
Commercial mortgage loans10,53210,72711,019(2)%(4)%
Commercial construction loans6,0395,8205,1324%18%
Commercial leases3,1142,9323,2016%(3)%
Total commercial loans and leases$69,314$69,864$70,938(1)%(2)%
Consumer loans:
Residential mortgage loans$15,803$16,016$16,732(1)%(6)%
Home equity5,0095,3156,006(6)%(17)%
Indirect secured consumer loans13,95513,27211,8095%18%
Credit card1,8792,0422,498(8)%(25)%
Other consumer loans2,9962,8512,7965%7%
Total consumer loans$39,642$39,496$39,841
Total average portfolio loans and leases$108,956 $109,360 $110,779 (2)%
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$104$56$10886%(4)%
Consumer loans held for sale4,6412,0481,293127%259%
Total average loans and leases held for sale$4,745$2,104$1,401126%239%
Securities (taxable and tax-exempt)$36,297$35,965$36,1351%
Other short-term investments32,71734,9892,898(6)%NM
Total average interest-earning assets$182,715$182,418$151,21321%
Compared to the prior quarter, total average portfolio loans and leases were flat, as an increase in indirect secured consumer loans was offset by a decrease in C&I balances. Average commercial portfolio loans and leases decreased 1%, reflecting lower C&I revolving line of credit utilization and term loan balances, partially offset by growth in commercial construction balances reflecting drawdowns on previous commitments. Average consumer portfolio loans were flat, as higher indirect secured consumer loans were offset by lower home equity and residential mortgage balances.
Compared to the year-ago quarter, total average portfolio loans and leases decreased 2% reflecting lower C&I revolving line of credit utilization and term loan balances, as well as declines in home equity and residential mortgage loans, partially offset by increases from PPP loans, indirect secured consumer loans, and commercial construction loans. Average commercial portfolio loans and leases decreased 2% due to a decline in C&I loan balances reflecting lower revolving line of credit utilization and lower commercial mortgage loans, partially offset by growth from PPP loans and commercial construction loans. Average consumer portfolio loans were flat, as higher indirect secured consumer loans were offset by lower residential mortgage, home equity, and credit card balances.
Average other short-term investments (including interest-bearing cash) of $33 billion in the current quarter decreased $2 billion compared to the prior quarter and increased $30 billion compared to the year-ago quarter. The increase relative to the year-ago quarter reflected average core deposit growth of 27% compared to average total loan growth of 1%.
Total period-end commercial portfolio loans and leases of $69 billion were flat from the prior quarter as higher PPP, commercial construction, and commercial lease balances were offset by lower C&I revolving line of credit utilization and term loan balances reflecting elevated paydowns. Compared to the year-ago quarter, total period-end commercial portfolio loans decreased $9 billion, or 11%, reflecting lower C&I revolving line of credit utilization. Period-end commercial revolving line utilization was 31%, compared to 32% in the prior quarter and 47% in the year-ago quarter. Period-end consumer
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portfolio loans were stable compared to the prior quarter, as continued growth in indirect secured consumer loans was partially offset by declines in home equity and credit card balances. Period-end consumer loans held for sale increased $0.9 billion sequentially, primarily attributable to the purchase of approximately $0.6 billion in government guaranteed loans related to GNMA early buyouts associated with CARES Act forbearance plans.
Average Deposits
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202120202020SeqYr/Yr
Average Deposits
Demand$58,586 $56,365 $35,765 4%64%
Interest checking45,56847,66440,298(4)%13%
Savings18,95117,65814,7157%29%
Money market30,60131,20527,109(2)%13%
Foreign office(g)
128161209(20)%(39)%
Total transaction deposits$153,834$153,053$118,0961%30%
Other time3,0453,2735,081(7)%(40)%
Total core deposits$156,879$156,326$123,17727%
Certificates - $100,000 and over2,0092,3003,355(13)%(40)%
Other deposits257NM(100)%
Total average deposits$158,888 $158,626 $126,789 25%
Compared to the prior quarter, average core deposits were flat, as increases in demand and savings deposits were offset by decreases in interest checking, money market, and other time deposits. Average demand deposits represented 37% of total core deposits in the current quarter compared to 36% in the prior quarter. Average commercial transaction deposits decreased 4% primarily reflecting seasonality, and average consumer transaction deposits increased 5% partially impacted by fiscal stimulus.
Compared to the year-ago quarter, average core deposits increased 27%, reflecting double-digit growth in all deposit captions except other time and foreign office deposits. Average commercial transaction deposits increased 42% and average consumer transaction deposits increased 20%.
The period end portfolio loan-to-core deposit ratio was 68% in the current quarter, compared to 69% in the prior quarter and 89% in the year-ago quarter. Excluding the impact of PPP loans, the period end portfolio loan-to-core deposit ratio was 64% in the current quarter, compared to 66% in the prior quarter.
Average Wholesale Funding
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202120202020SeqYr/Yr
Average Wholesale Funding
Certificates - $100,000 and over$2,009 $2,300 $3,355 (13)%(40)%
Other deposits257NM(100)%
Federal funds purchased3243076546%(50)%
Other short-term borrowings1,2091,0911,75011%(31)%
Long-term debt14,84915,01815,816(1)%(6)%
Total average wholesale funding$18,391$18,716$21,832(2)%(16)%
Compared to the prior quarter, average wholesale funding decreased 2%, driven by lower jumbo CD balances and long-term debt outstanding, partially offset by an increase in other short-term borrowings (reflecting commercial client sweep accounts). Compared to the year-ago quarter, average wholesale funding decreased 16%, reflecting decreases in jumbo CD balances, long-term debt, and other short-term borrowings.
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Credit Quality Summary
($ in millions)As of and For the Three Months Ended
MarchDecemberSeptemberJuneMarch
20212020202020202020
Total nonaccrual portfolio loans and leases (NPLs)$741$834$891$700$647
Repossessed property797410
OREO3521334352
Total nonperforming portfolio loans and leases and OREO (NPAs)$783$864$931$747$709
NPL ratio(h)
0.68 %0.77 %0.80 %0.61 %0.55 %
NPA ratio(c)
0.72 %0.79 %0.84 %0.65 %0.60 %
Total loans and leases 30-89 days past due (accrual)$305$357$323$381$409
Total loans and leases 90 days past due (accrual)124163139136151
Allowance for loan and lease losses (ALLL), beginning$2,453 $2,574 $2,696 $2,348 $1,202 
Impact of CECL adoption643
Total net losses charged-off(71)(118)(101)(130)(122)
(Benefit from) provision for loan and lease losses(174)(3)(21)478625
ALLL, ending$2,208$2,453$2,574$2,696$2,348
Reserve for unfunded commitments, beginning$172$182$176$169$144
Impact of CECL adoption10
Provision for (benefit from) the reserve for unfunded commitments1(10)6715
Reserve for unfunded commitments, ending$173$172$182$176$169
Total allowance for credit losses (ACL)$2,381 $2,625 $2,756 $2,872 $2,517 
ACL ratios:
As a % of portfolio loans and leases2.19 % 2.41 % 2.49 % 2.50 % 2.13 % 
As a % of nonperforming portfolio loans and leases321 % 315 % 309 % 410 % 389 % 
As a % of nonperforming portfolio assets304 % 304 % 296 % 385 % 355 % 
ALLL as a % of portfolio loans and leases2.03 %2.25 %2.32 %2.34 %1.99 %
Total losses charged-off$(109)$(154)$(135)$(163)$(159)
Total recoveries of losses previously charged-off3836343337
Total net losses charged-off$(71)$(118)$(101)$(130)$(122)
Net charge-off ratio (NCO ratio)(b)
0.27 %0.43 %0.35 %0.44 %0.44 %
Commercial NCO ratio0.17 %0.40 %0.33 %0.40 %0.32 %
Consumer NCO ratio0.43 %0.47 %0.40 %0.52 %0.66 %
Nonperforming portfolio loans and leases were $741 million in the current quarter, with the resulting NPL ratio of 0.68%. Compared to the prior quarter, NPLs decreased $93 million with the NPL ratio decreasing 9 bps. Compared to the year-ago quarter, NPLs increased $94 million with the NPL ratio increasing 13 bps.
Nonperforming portfolio assets were $783 million in the current quarter, with the resulting NPA ratio of 0.72%. Compared to the prior quarter, NPAs decreased $81 million with the NPA ratio decreasing 7 bps. Compared to the year-ago quarter, NPAs increased $74 million with the NPA ratio increasing 12 bps.

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The benefit from credit losses totaled $173 million in the current quarter. The allowance for credit loss ratio represented 2.19% of total portfolio loans and leases in the current quarter, compared with 2.41% in the prior quarter and 2.13% in the year-ago quarter. In the current quarter, the allowance for credit losses represented 321% of nonperforming portfolio loans and leases and 304% of nonperforming portfolio assets. The allowance for loan and lease losses ratio represented 2.03% of total portfolio loans and leases in the current quarter.
Net charge-offs were $71 million in the current quarter, with the resulting NCO ratio of 0.27%. Compared to the prior quarter, net charge-offs decreased $47 million and the NCO ratio decreased 16 bps. Compared to the year-ago quarter, net charge-offs decreased $51 million and the NCO ratio decreased 17 bps.
Capital Position
As of and For the Three Months Ended
MarchDecemberSeptemberJuneMarch
20212020202020202020
Capital Position
Average total Bancorp shareholders' equity as a % of average assets11.26 %11.34 %11.33%11.30%12.63 %
Tangible equity(a)
8.20 %8.18 %8.09%7.68%8.41 %
Tangible common equity (excluding AOCI)(a)
7.14 %7.11 %6.99%6.77%7.41 %
Tangible common equity (including AOCI)(a)
7.95 %8.29 %8.31%8.13%8.65 %
Regulatory Capital Ratios(e)
CET1 capital(d)
10.46 %10.34 %10.14%9.72%9.37 %
Tier I risk-based capital(d)
11.94 %11.83 %11.64%10.96%10.56 %
Total risk-based capital(d)
14.80 %15.08 %14.93%14.24%13.59 %
Tier I leverage8.62 %8.49 %8.37%8.16%9.37 %
Capital ratios remained strong this quarter. The CET1 capital ratio was 10.46%, the tangible common equity to tangible assets ratio was 7.14% excluding AOCI, and 7.95% including AOCI. The Tier I risk-based capital ratio was 11.94%, the Total risk-based capital ratio was 14.80%, and the Tier I leverage ratio was 8.62%. Certain capital ratios, including the Tier I leverage ratio, continued to be impacted by the increase in assets since the onset of the pandemic, predominantly from growth in 0% risk-weighted assets resulting from an increase in interest-bearing cash as well as PPP loans.
On January 26, 2021, Fifth Third initially settled an accelerated share repurchase agreement whereby Fifth Third would purchase $180 million of its outstanding stock. The initial settlement reduced first quarter common shares outstanding by 4.9 million shares. On March 31, 2021, the final settlement occurred in connection with the completion of this agreement, which resulted in an additional 0.4 million shares being repurchased by Fifth Third.
On March 25, 2021, the Federal Reserve announced that the temporary restrictions on capital distributions, which limited common dividends and share repurchases to the average net income over the prior four quarters, will end after June 30, 2021 for banks not participating in the 2021 annual supervisory stress tests, including Fifth Third.



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Tax Rate
The effective tax rate was 21.4% compared with 19.1% in the prior quarter and 22.6% in the year-ago quarter. The tax rate in the current quarter reflected a $14 million tax benefit primarily related to share-based compensation. The tax rate in the prior quarter reflected favorable state tax adjustments of $13 million.
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 March 31, 2021, the Company had $207 billion in assets and operates 1,098 full-service Banking Centers, and 2,383 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 March 31, 2021, had $464 billion in assets under care, of which it managed $58 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 25.
(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)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%; Fourth quarter 2020 underlying NIM calculated by reducing average interest-earning assets approximately $32.5 billion resulting from excess cash compared to normalized levels (average other short term investments less a $2.5 billion normalized level) and approximately $5.1 billion from average PPP balances (with a corresponding reduction to net interest income of approximately $41 million), resulting in an underlying NIM of approximately 3.14%.
(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.



10



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.
# # #


11


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Quarterly Financial Review for March 31, 2021

Table of Contents


Financial Highlights13-14
Consolidated Statements of Income15-16
Consolidated Balance Sheets17-18
Consolidated Statements of Changes in Equity19
Average Balance Sheet and Yield Analysis20
Summary of Loans and Leases21
Regulatory Capital22
Summary of Credit Loss Experience23
Asset Quality24
Non-GAAP Reconciliation25-27
Segment Presentation28


12


Fifth Third Bancorp and Subsidiaries
Financial Highlights% / bps
$ in millions, except per share dataFor the Three Months EndedChange
(unaudited)MarchDecemberMarch
202120202020SeqYr/Yr
Income Statement Data
Net interest income$1,176$1,182$1,229(1%)(4%)
Net interest income (FTE)(a)
1,1791,1851,233(1%)(4%)
Noninterest income749787671(5%)12%
Total revenue (FTE)(a)
1,9281,9721,904(2%)1%
(Benefit from) provision for credit losses(173)(13)640NMNM
Noninterest expense1,2151,2361,200(2%)1%
Net income6946044615%NM
Net income available to common shareholders6745692918%NM
Earnings Per Share Data
Net income allocated to common shareholders$672$567$2819%NM
Average common shares outstanding (in thousands):
Basic714,433715,482713,556
Diluted723,425722,096720,363
Earnings per share, basic$0.94$0.79$0.0419%NM
Earnings per share, diluted0.930.780.0419%NM
Common Share Data
Cash dividends per common share$0.27$0.27$0.27
Book value per share28.7829.4628.26(2%)2%
Market value per share37.4527.5714.8536%152%
Common shares outstanding (in thousands)711,596712,760711,306
Market capitalization$26,649$19,651$10,56336%152%
Financial Ratios
Return on average assets1.38 %1.18 %0.11 %20127
Return on average common equity13.1 %10.8 %0.6 %2301,250
Return on average tangible common equity(a)
16.8 %13.9 %1.0 %2901,580
Noninterest income as a percent of total revenue(a)
39 %40 %35 %(100)400
Dividend payout28.7 %34.2 %675.0 %(550)NM
Average total Bancorp shareholders' equity as a percent of average assets11.26 %11.34 %12.63 %(8)(137)
Tangible common equity(a)
7.14 %7.11 %7.41 %3(27)
Net interest margin (FTE)(a)
2.62 %2.58 %3.28 %4(66)
Efficiency (FTE)(a)
63.0 %62.7 %63.0 %30
Effective tax rate21.4 %19.1 %22.6 %230(120)
Credit Quality
Net losses charged-off$71$118$122(40 %)(42 %)
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.27 %0.43 %0.44 %(16)(17)
ALLL as a percent of portfolio loans and leases2.03 %2.25 %1.99 %(22)4
ACL as a percent of portfolio loans and leases(g)
2.19 %2.41 %2.13 %(22)6
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.72 %0.79 %0.60 %(7)12
Average Balances
Loans and leases, including held for sale$113,701$111,464$112,1802%1%
Securities and other short-term investments69,01470,95439,033(3%)77%
Assets203,836203,930171,87119%
Transaction deposits(b)
153,834153,053118,0961%30%
Core deposits(c)
156,879156,326123,17727%
Wholesale funding(d)
18,39118,71621,832(2%)(16%)
Bancorp shareholders' equity22,95223,12621,713(1%)6%
Regulatory Capital Ratios(e)
CET1 capital(f)
10.46 %10.34 %9.37 %12109
Tier I risk-based capital(f)
11.94 %11.83 %10.56 %11138
Total risk-based capital(f)
14.80 %15.08 %13.59 %(28)121
Tier I leverage8.62 %8.49 %9.37 %13(75)
Operations
Banking centers1,0981,1341,123(3%)(2%)
ATMs2,3832,3972,464(1%)(3%)
Full-time equivalent employees19,81919,87220,182(2%)
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 25.
(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.

13


Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share dataFor the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20212020202020202020
Income Statement Data
Net interest income$1,176$1,182$1,170$1,200$1,229
Net interest income (FTE)(a)
1,1791,1851,1731,2031,233
Noninterest income749787722650671
Total revenue (FTE)(a)
1,9281,9721,8951,8531,904
(Benefit from) provision for credit losses(173)(13)(15)485640
Noninterest expense1,2151,2361,1611,1211,200
Net income69460458119546
Net income available to common shareholders67456956216329
Earnings Per Share Data
Net income allocated to common shareholders$672$567$560$162$28
Average common shares outstanding (in thousands):
Basic714,433715,482715,102714,767713,556
Diluted723,425722,096718,894717,572720,363
Earnings per share, basic$0.94$0.79$0.78$0.23$0.04
Earnings per share, diluted0.930.780.780.230.04
Common Share Data
Cash dividends per common share$0.27$0.27$0.27$0.27$0.27
Book value per share28.7829.4629.2528.8828.26
Market value per share37.4527.5721.3219.2814.85
Common shares outstanding (in thousands)711,596712,760712,328712,202711,306
Market capitalization$26,649$19,651$15,187$13,731$10,563
Financial Ratios
Return on average assets1.38 %1.18 %1.14 %0.40 %0.11 %
Return on average common equity13.1 %10.8 %10.7 %3.2 %0.6 %
Return on average tangible common equity(a)
16.8 %13.9 %13.8 %4.3 %1.0 %
Noninterest income as a percent of total revenue(a)
39 %40 %38 %35 %35 %
Dividend payout28.7 %34.2 %34.6 %117.4 %675.0 %
Average total Bancorp shareholders' equity as a percent of average assets11.26 %11.34 %11.33 %11.30 %12.63 %
Tangible common equity(a)
7.14 %7.11 %6.99 %6.77 %7.41 %
Net interest margin (FTE)(a)
2.62 %2.58 %2.58 %2.75 %3.28 %
Efficiency (FTE)(a)
63.0 %62.7 %61.3 %60.5 %63.0 %
Effective tax rate21.4 %19.1 %22.1 %19.9 %22.6 %
Credit Quality
Net losses charged-off$71$118$101$130$122
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.27 %0.43 %0.35 %0.44 %0.44 %
ALLL as a percent of portfolio loans and leases2.03 %2.25 %2.32 %2.34 %1.99 %
ACL as a percent of portfolio loans and leases(g)
2.19 %2.41 %2.49 %2.50 %2.13 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.72 %0.79 %0.84 %0.65 %0.60 %
Average Balances
Loans and leases, including held for sale$113,701$111,464$114,613$119,418$112,180
Securities and other short-term investments69,01470,95466,09156,80639,033
Assets203,836203,930202,533198,387171,871
Transaction deposits(b)
153,834153,053148,567142,079118,096
Core deposits(c)
156,879156,326152,278146,500123,177
Wholesale funding(d)
18,39118,71621,76223,73921,832
Bancorp shareholders' equity22,95223,12622,95222,42121,713
Regulatory Capital Ratios(e)
CET1 capital(f)
10.46 %10.34 %10.14 %9.72 %9.37 %
Tier I risk-based capital(f)
11.94 %11.83 %11.64 %10.96 %10.56 %
Total risk-based capital(f)
14.80 %15.08 %14.93 %14.24 %13.59 %
Tier I leverage8.62 %8.49 %8.37 %8.16 %9.37 %
Operations
Banking centers1,0981,1341,1221,1221,123
ATMs2,3832,3972,4142,4562,464
Full-time equivalent employees19,81919,87220,28320,34020,182
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 25.
(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
Consolidated Statements of Income
$ in millionsFor the Three Months Ended% Change
(unaudited)MarchDecemberMarch
202120202020SeqYr/Yr
Interest Income
Interest and fees on loans and leases$1,030$1,028$1,235(17%)
Interest on securities264278283(5%)(7%)
Interest on other short-term investments897(11%)14%
Total interest income1,3021,3151,525(1%)(15%)
Interest Expense
Interest on deposits2127166(22%)(87%)
Interest on federal funds purchased2NM(100%)
Interest on other short-term borrowings116(83%)
Interest on long-term debt104105122(1%)(15%)
Total interest expense126133296(5%)(57%)
Net Interest Income1,1761,1821,229(1%)(4%)
(Benefit from) provision for credit losses(173)(13)640NMNM
Net Interest Income After Provision for Credit Losses1,3491,19558913%129%
Noninterest Income
Service charges on deposits144146148(1%)(3%)
Commercial banking revenue1531411249%23%
Mortgage banking net revenue8525120240%(29%)
Wealth and asset management revenue1431331348%7%
Card and processing revenue9492862%9%
Leasing business revenue87697326%19%
Other noninterest income421687(75%)500%
Securities gains (losses), net314(24)(79%)NM
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights(2)(1)3100%NM
Total noninterest income749787671(5%)12%
Noninterest Expense
Compensation and benefits7066796474%9%
Net occupancy expense799882(19%)(4%)
Technology and communications9390933%
Equipment expense3434326%
Card and processing expense303131(3%)(3%)
Leasing business expense353735(5%)
Marketing expense233031(23%)(26%)
Other noninterest expense215237249(9%)(14%)
Total noninterest expense1,2151,2361,200(2%)1%
Income Before Income Taxes8837466018%NM
Applicable income tax expense1891421433%NM
Net Income6946044615%NM
Dividends on preferred stock203517(43%)18%
Net Income Available to Common Shareholders$674$569$2918%NM
15


Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20212020202020202020
Interest Income
Interest and fees on loans and leases$1,030$1,028$1,047$1,115$1,235
Interest on securities264278274283283
Interest on other short-term investments89857
Total interest income1,3021,3151,3291,4031,525
Interest Expense
Interest on deposits21274683166
Interest on federal funds purchased2
Interest on other short-term borrowings11526
Interest on long-term debt104105108118122
Total interest expense126133159203296
Net Interest Income1,1761,1821,1701,2001,229
(Benefit from) provision for credit losses(173)(13)(15)485640
Net Interest Income After Provision for Credit Losses1,3491,1951,185715589
Noninterest Income
Service charges on deposits144146144122148
Commercial banking revenue153141125137124
Mortgage banking net revenue85257699120
Wealth and asset management revenue143133132120134
Card and processing revenue9492928286
Leasing business revenue8769775773
Other noninterest income4216826127
Securities gains (losses), net3145121(24)
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights(2)(1)(1)3
Total noninterest income749787722650671
Noninterest Expense
Compensation and benefits706679637627647
Net occupancy expense7998908282
Technology and communications9390899093
Equipment expense3434333232
Card and processing expense3031292931
Leasing business expense3537353335
Marketing expense2330232031
Other noninterest expense215237225208249
Total noninterest expense1,2151,2361,1611,1211,200
Income Before Income Taxes88374674624460
Applicable income tax expense1891421654914
Net Income69460458119546
Dividends on preferred stock2035193217
Net Income Available to Common Shareholders$674$569$562$163$29
16


Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of% Change
(unaudited)MarchDecemberMarch
202120202020SeqYr/Yr
Assets
Cash and due from banks$3,122$3,147$3,282(1%)(5%)
Other short-term investments34,18733,3996,3192%441%
Available-for-sale debt and other securities(a)
37,59537,51338,645(3%)
Held-to-maturity securities(b)
101117(9%)(41%)
Trading debt securities72856043330%68%
Equity securities3153134591%(31%)
Loans and leases held for sale5,4774,7411,63016%236%
Portfolio loans and leases:
  Commercial and industrial loans49,09449,66558,250(1%)(16%)
  Commercial mortgage loans10,48110,60211,160(1%)(6%)
  Commercial construction loans6,1985,8155,4627%13%
  Commercial leases3,2552,9153,12312%4%
Total commercial loans and leases69,02868,99777,995(11%)
  Residential mortgage loans15,77615,92816,701(1%)(6%)
  Home equity4,8155,1835,963(7%)(19%)
  Indirect secured consumer loans14,33613,65312,0505%19%
  Credit card1,8102,0072,417(10%)(25%)
  Other consumer loans3,0903,0142,9113%6%
Total consumer loans39,82739,78540,042(1%)
Portfolio loans and leases108,855108,782118,037(8%)
Allowance for loan and lease losses(2,208)(2,453)(2,348)(10%)(6%)
Portfolio loans and leases, net106,647106,329115,689(8%)
Bank premises and equipment2,0722,0882,009(1%)3%
Operating lease equipment718777819(8%)(12%)
Goodwill4,2594,2584,261
Intangible assets127139184(9%)(31%)
Servicing rights78465668520%14%
Other assets10,85810,74910,9591%(1%)
Total Assets$206,899$204,680$185,3911%12%
Liabilities
Deposits:
  Demand$61,363$57,711$39,5336%55%
  Interest checking45,58247,27044,520(4%)2%
  Savings20,16218,25815,55710%30%
  Money market30,63030,65027,77510%
  Foreign office113143177(21%)(36%)
  Other time2,7593,0234,683(9%)(41%)
  Certificates $100,000 and over1,7842,0262,816(12%)(37%)
Total deposits162,393159,081135,0612%20%
Federal funds purchased3023001,6251%(81%)
Other short-term borrowings1,1061,1924,542(7%)(76%)
Accrued taxes, interest and expenses1,8792,6142,432(28%)(23%)
Other liabilities3,8813,4093,57614%9%
Long-term debt14,74314,97316,282(2%)(9%)
Total Liabilities184,304181,569163,5182%13%
Equity
Common stock(c)
2,0512,0512,051
Preferred stock2,1162,1161,77020%
Capital surplus3,5923,6353,597(1%)
Retained earnings18,86318,38417,6773%7%
Accumulated other comprehensive income1,7922,6012,477(31%)(28%)
Treasury stock(5,819)(5,676)(5,699)3%2%
Total Equity22,59523,11121,873(2%)3%
Total Liabilities and Equity$206,899$204,680$185,3911%12%
(a) Amortized cost$35,963$34,982$36,4283%(1%)
(b) Market values10 11 17 (9%)(41%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,000— — 
Outstanding, excluding treasury711,596712,760711,306— — 
Treasury212,297211,132212,586%— 


17


Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of
(unaudited)MarchDecemberSeptemberJuneMarch
20212020202020202020
Assets
Cash and due from banks$3,122$3,147$2,996$3,221$3,282
Other short-term investments34,18733,39931,28528,2436,319
Available-for-sale debt and other securities(a)
37,59537,51337,42538,59938,645
Held-to-maturity securities(b)
1011151617
Trading debt securities728560704526433
Equity securities315313277273459
Loans and leases held for sale5,4774,7412,3239121,630
Portfolio loans and leases:
  Commercial and industrial loans49,09449,66551,69555,66158,250
  Commercial mortgage loans10,48110,60210,87811,23311,160
  Commercial construction loans6,1985,8155,6565,4795,462
  Commercial leases3,2552,9153,0213,0613,123
Total commercial loans and leases69,02868,99771,25075,43477,995
  Residential mortgage loans15,77615,92816,15816,45716,701
  Home equity4,8155,1835,4555,6815,963
  Indirect secured consumer loans14,33613,65312,92512,39512,050
  Credit card1,8102,0072,0872,2112,417
  Other consumer loans3,0903,0142,8562,8752,911
Total consumer loans39,82739,78539,48139,61940,042
Portfolio loans and leases108,855108,782110,731115,053118,037
Allowance for loan and lease losses(2,208)(2,453)(2,574)(2,696)(2,348)
Portfolio loans and leases, net106,647106,329108,157112,357115,689
Bank premises and equipment2,0722,0882,0902,0532,009
Operating lease equipment718777818809819
Goodwill4,2594,2584,2614,2614,261
Intangible assets127139157171184
Servicing rights784656660676685
Other assets10,85810,74910,82810,78910,959
Total Assets$206,899$204,680$201,996$202,906$185,391
Liabilities
Deposits:
  Demand$61,363$57,711$51,896$49,359$39,533
  Interest checking45,58247,27049,56651,58644,520
  Savings20,16218,25817,22116,89615,557
  Money market30,63030,65031,19230,88127,775
  Foreign office113143160191177
  Other time2,7593,0233,3373,9134,683
  Certificates $100,000 and over1,7842,0263,3114,1202,816
Total deposits162,393159,081156,683156,946135,061
Federal funds purchased3023002512621,625
Other short-term borrowings1,1061,1921,1961,2854,542
Accrued taxes, interest and expenses1,8792,6142,5002,5822,432
Other liabilities3,8813,4093,2923,1693,576
Long-term debt14,74314,97315,12316,32716,282
Total Liabilities184,304181,569179,045180,571163,518
Equity
Common stock(c)
2,0512,0512,0512,0512,051
Preferred stock2,1162,1162,1161,7701,770
Capital surplus3,5923,6353,6243,6033,597
Retained earnings18,86318,38418,01017,64317,677
Accumulated other comprehensive income1,7922,6012,8312,9512,477
Treasury stock(5,819)(5,676)(5,681)(5,683)(5,699)
Total Equity22,59523,11122,95122,33521,873
Total Liabilities and Equity$206,899$204,680$201,996$202,906$185,391
(a) Amortized cost$35,963$34,982$34,693$35,780$36,428
(b) Market values1011151617
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,0002,000,0002,000,000
Outstanding, excluding treasury711,596712,760712,328712,202711,306
Treasury212,297211,132211,565211,690212,586
18


Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months Ended
MarchMarch
20212020
Total Equity, Beginning$23,111$21,203
Net income69446
Other comprehensive (loss) income, net of tax:
Change in unrealized (losses) gains:
Available-for-sale debt securities(689)882
Qualifying cash flow hedges(121)402
Change in accumulated other comprehensive income related to employee benefit plans11
Comprehensive (loss) income(115)1,331
Cash dividends declared:
Common stock(195)(195)
Preferred stock(20)(17)
Impact of stock transactions under stock compensation plans, net(6)23
Shares acquired for treasury(180)
Impact of cumulative effect of change in accounting principles(472)
Total Equity, Ending$22,595$21,873
19


Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisFor the Three Months Ended
$ in millionsMarchDecemberMarch
(unaudited)202120202020
AverageAverageAverageAverageAverageAverage
BalanceYield/RateBalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$49,7153.60 %$50,4373.50 %$51,6934.25 %
  Commercial mortgage loans(a)
10,5343.06 %10,7313.17 %11,0204.44 %
  Commercial construction loans(a)
6,0393.20 %5,8203.19 %5,1324.82 %
  Commercial leases(a)
3,1303.17 %2,9323.33 %3,2013.46 %
Total commercial loans and leases69,4183.46 %69,9203.42 %71,0464.28 %
  Residential mortgage loans20,4443.36 %18,0653.33 %18,0243.63 %
  Home equity5,0093.58 %5,3153.64 %6,0064.71 %
  Indirect secured consumer loans13,9553.58 %13,2723.70 %11,8094.09 %
  Credit card1,87912.36 %2,04211.75 %2,49812.13 %
  Other consumer loans2,9966.12 %2,8506.38 %2,7977.71 %
Total consumer loans44,2834.02 %41,5444.11 %41,1344.71 %
Total loans and leases113,7013.68 %111,4643.68 %112,1804.44 %
Securities:
Taxable securities35,7642.97 %35,5063.10 %35,9733.15 %
Tax exempt securities(a)
5332.26 %4592.21 %1623.04 %
Other short-term investments32,7170.10 %34,9890.10 %2,8980.97 %
Total interest-earning assets182,7152.90 %182,4182.87 %151,2134.07 %
Cash and due from banks2,9912,9692,880
Other assets20,58021,11619,623
Allowance for loan and lease losses(2,450)(2,573)(1,845)
Total Assets$203,836$203,930$171,871
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$45,5680.07 %$47,6640.08 %$40,2980.75 %
  Savings deposits18,9510.03 %17,6580.03 %14,7150.13 %
  Money market deposits30,6010.05 %31,2050.06 %27,1090.72 %
  Foreign office deposits1280.05 %1610.07 %2090.57 %
  Other time deposits3,0450.44 %3,2730.58 %5,0811.56 %
Total interest-bearing core deposits98,2930.06 %99,9610.08 %87,4120.68 %
  Certificates $100,000 and over2,0091.08 %2,3001.17 %3,3552.09 %
  Other deposits— — 2570.85 %
  Federal funds purchased3240.13 %3070.18 %6541.13 %
  Other short-term borrowings1,2090.24 %1,0910.35 %1,7501.32 %
  Long-term debt14,8492.83 %15,0182.76 %15,8163.12 %
Total interest-bearing liabilities116,6840.44 %118,6770.45 %109,2441.09 %
Demand deposits58,58656,36535,765
Other liabilities5,6145,7625,149
Total Liabilities180,884180,804150,158
Total Equity22,95223,12621,713
Total Liabilities and Equity$203,836$203,930$171,871
Ratios:
  Net interest margin (FTE)(b)
2.62 %2.58 %3.28 %
  Net interest rate spread (FTE)(b)
2.46 %2.42 %2.98 %
  Interest-bearing liabilities to interest-earning assets63.86 %65.06 %72.24 %
(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 25.









20


Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millionsFor the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20212020202020202020
Average Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$49,629$50,385$54,004$59,040$51,586
  Commercial mortgage loans10,53210,72711,06911,22211,019
  Commercial construction loans6,0395,8205,5345,5485,132
  Commercial leases3,1142,9322,9663,0563,201
Total commercial loans and leases69,31469,86473,57378,86670,938
Consumer loans:
  Residential mortgage loans15,80316,01616,61816,56116,732
  Home equity5,0095,3155,5815,8206,006
  Indirect secured consumer loans13,95513,27212,59912,12411,809
  Credit card1,8792,0422,1342,2482,498
  Other consumer loans2,9962,8512,8572,8872,796
Total consumer loans39,64239,49639,78939,64039,841
Total average portfolio loans and leases$108,956$109,360$113,362$118,506$110,779
Average Loans and Leases Held for Sale
Average commercial loans and leases held for sale$104$56$55$68$108
Average consumer loans held for sale4,6412,0481,1968441,293
Average loans and leases held for sale$4,745$2,104$1,251$912$1,401
End of Period Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$49,094$49,665$51,695$55,661$58,250
  Commercial mortgage loans10,48110,60210,87811,23311,160
  Commercial construction loans6,1985,8155,6565,4795,462
  Commercial leases3,2552,9153,0213,0613,123
Total commercial loans and leases69,02868,99771,25075,43477,995
Consumer loans:
  Residential mortgage loans15,77615,92816,15816,45716,701
  Home equity4,8155,1835,4555,6815,963
  Indirect secured consumer loans14,33613,65312,92512,39512,050
  Credit card1,8102,0072,0872,2112,417
  Other consumer loans3,0903,0142,8562,8752,911
Total consumer loans39,82739,78539,48139,61940,042
Total portfolio loans and leases$108,855$108,782$110,731$115,053$118,037
End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale$80$276$59$72$65
Consumer loans held for sale5,3974,4652,2648401,565
Loans and leases held for sale$5,477$4,741$2,323$912$1,630
Operating lease equipment$718$777$818$809$819
Loans and Leases Serviced for Others(a)
Commercial and industrial loans$1,011$979$903$967$947
Commercial mortgage loans639653585592545
Commercial construction loans592601623536462
Commercial leases547569584582302
Residential mortgage loans65,92268,80073,52178,80481,901
Other consumer loans5050505050
Total loans and leases serviced for others68,76171,65276,26681,53184,207
Total loans and leases serviced$183,811$185,952$190,138$198,305$204,693
(a) Fifth Third sells certain loans and leases and obtains servicing responsibilities.
21


Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millionsAs of
(unaudited)MarchDecemberSeptemberJuneMarch
2021(a)
2020202020202020
Regulatory Capital
CET1 capital$14,930$14,682$14,307$13,935$13,840
Additional tier I capital2,1162,1152,1151,7691,769
Tier I capital17,04616,79716,42215,70415,609
Tier II capital4,0774,6154,6454,7034,472
Total regulatory capital$21,123$21,412$21,067$20,407$20,081
Risk-weighted assets(b)
$142,758$141,974$141,083$143,322$147,756
Ratios
Average total Bancorp shareholders' equity as a percent of average assets11.26 %11.34 %11.33 %11.30 %12.63 %
Regulatory Capital Ratios
Fifth Third Bancorp
CET1 capital(b)
10.46 %10.34 %10.14 %9.72 %9.37 %
Tier I risk-based capital(b)
11.94 %11.83 %11.64 %10.96 %10.56 %
Total risk-based capital(b)
14.80 %15.08 %14.93 %14.24 %13.59 %
Tier I leverage8.62 %8.49 %8.37 %8.16 %9.37 %
Fifth Third Bank
Tier I risk-based capital(b)
12.70 %12.28 %12.25 %11.76 %11.36 %
Total risk-based capital(b)
14.41 %14.17 %14.14 %13.65 %13.17 %
Tier I leverage9.19 %8.85 %8.85 %8.80 %10.16 %
(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.
22


Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millionsFor the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20212020202020202020
Average portfolio loans and leases:
  Commercial and industrial loans$49,629$50,385$54,004$59,040$51,586
  Commercial mortgage loans10,53210,72711,06911,22211,019
  Commercial construction loans6,0395,8205,5345,5485,132
  Commercial leases3,1142,9322,9663,0563,201
Total commercial loans and leases69,31469,86473,57378,86670,938
  Residential mortgage loans15,80316,01616,61816,56116,732
  Home equity5,0095,3155,5815,8206,006
  Indirect secured consumer loans13,95513,27212,59912,12411,809
  Credit card1,8792,0422,1342,2482,498
  Other consumer loans2,9962,8512,8572,8872,796
Total consumer loans39,64239,49639,78939,64039,841
Total average portfolio loans and leases$108,956$109,360$113,362$118,506$110,779
Losses charged-off:
  Commercial and industrial loans($32)($44)($45)($68)($54)
  Commercial mortgage loans(3)(31)(11)(2)(2)
  Commercial leases(10)(11)(5)
Total commercial loans and leases(35)(75)(66)(81)(61)
  Residential mortgage loans(1)(4)(1)(2)(2)
  Home equity(3)(3)(4)(3)(5)
  Indirect secured consumer loans(18)(19)(11)(15)(21)
  Credit card(31)(31)(34)(40)(42)
  Other consumer loans(21)(22)(19)(22)(28)
Total consumer loans(74)(79)(69)(82)(98)
Total losses charged-off($109)($154)($135)($163)($159)
Recoveries of losses previously charged-off:
  Commercial and industrial loans$5$3$3$3$4
  Commercial mortgage loans11
  Commercial leases112
Total commercial loans and leases75534
  Residential mortgage loans12211
  Home equity33322
  Indirect secured consumer loans910889
  Credit card66566
  Other consumer loans1210111315
Total consumer loans3131293033
Total recoveries of losses previously charged-off$38$36$34$33$37
Net losses charged-off:
  Commercial and industrial loans($27)($41)($42)($65)($50)
  Commercial mortgage loans(2)(30)(11)(2)(2)
  Commercial leases11(8)(11)(5)
Total commercial loans and leases(28)(70)(61)(78)(57)
  Residential mortgage loans(2)1(1)(1)
  Home equity(1)(1)(3)
  Indirect secured consumer loans(9)(9)(3)(7)(12)
  Credit card(25)(25)(29)(34)(36)
  Other consumer loans(9)(12)(8)(9)(13)
Total consumer loans(43)(48)(40)(52)(65)
Total net losses charged-off($71)($118)($101)($130)($122)
Net losses charged-off as a percent of average portfolio loans and leases (annualized):
  Commercial and industrial loans0.22 %0.33 %0.31 %0.45 %0.39 %
  Commercial mortgage loans0.09 %1.13 %0.39 %0.07 %0.06 %
  Commercial leases(0.09 %)(0.15 %)1.09 %1.47 %0.60 %
Total commercial loans and leases0.17 %0.40 %0.33 %0.40 %0.32 %
  Residential mortgage loans(0.01 %)0.04 %(0.02 %)0.02 %0.02 %
  Home equity0.01 %— 0.07 %0.07 %0.17 %
  Indirect secured consumer loans0.25 %0.28 %0.11 %0.24 %0.43 %
  Credit card5.50 %4.95 %5.44 %6.17 %5.87 %
  Other consumer loans1.17 %1.50 %1.05 %1.17 %1.87 %
Total consumer loans0.43 %0.47 %0.40 %0.52 %0.66 %
Total net losses charged-off as a percent of average portfolio loans and leases (annualized)0.27 %0.43 %0.35 %0.44 %0.44 %
23


Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millionsFor the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20212020202020202020
Allowance for Credit Losses
Allowance for loan and lease losses, beginning$2,453$2,574$2,696$2,348$1,202
  Impact of CECL adoption643
  Total net losses charged-off(71)(118)(101)(130)(122)
(Benefit from) provision for loan and lease losses(174)(3)(21)478625
Allowance for loan and lease losses, ending$2,208$2,453$2,574$2,696$2,348
Reserve for unfunded commitments, beginning$172$182$176$169$144
  Impact of CECL adoption10
  Provision for (benefit from) the reserve for unfunded commitments1(10)6715
Reserve for unfunded commitments, ending$173$172$182$176$169
Components of allowance for credit losses:
  Allowance for loan and lease losses$2,208$2,453$2,574$2,696$2,348
  Reserve for unfunded commitments173172182176169
Total allowance for credit losses$2,381$2,625$2,756$2,872$2,517
As of
MarchDecemberSeptemberJuneMarch
20212020202020202020
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
  Commercial and industrial loans$197$230$266$94$100
  Commercial mortgage loans5082998983
  Commercial construction loans11
  Commercial leases67162218
  Residential mortgage loans2225301412
  Home equity5552505254
  Indirect secured consumer loans69851
  Other consumer loans22322
Total nonaccrual portfolio loans and leases (excludes restructured loans)339407472278271
Nonaccrual restructured portfolio commercial loans and leases255319307282243
Nonaccrual restructured portfolio consumer loans and leases(c)
147108112140133
Total nonaccrual portfolio loans and leases741834891700647
Repossessed property797410
OREO3521334352
Total nonperforming portfolio loans and leases and OREO783864931747709
Nonaccrual loans held for sale25101
Nonaccrual restructured loans held for sale201111
Total nonperforming assets$805$870$942$749$710
Restructured portfolio consumer loans and leases (accrual)$768$796$818$963$976
Restructured portfolio commercial loans and leases (accrual)$81$92$123$119$63
Loans and leases 90 days past due (accrual):
  Commercial and industrial loans$8$39$4$10$13
  Commercial mortgage loans78262320
  Commercial construction loans1
  Commercial leases1210
Total commercial loans and leases1648323343
  Residential mortgage loans(c)
7370675454
  Home equity122
  Indirect secured consumer loans810101211
  Credit card2531273642
  Other consumer loans12111
Total consumer loans108115107103108
Total loans and leases 90 days past due (accrual)(b)
$124$163$139$136$151
Ratios
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.27 %0.43 %0.35 %0.44 %0.44 %
Allowance for credit losses:
As a percent of portfolio loans and leases2.19 %2.41 %2.49 %2.50 %2.13 %
   As a percent of nonperforming portfolio loans and leases(a)
321 %315 %309 %410 %389 %
   As a percent of nonperforming portfolio assets(a)
304 %304 %296 %385 %355 %
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO(a)
0.68 %0.77 %0.80 %0.61 %0.55 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
0.72 %0.79 %0.84 %0.65 %0.60 %
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property0.70 %0.77 %0.83 %0.65 %0.59 %
(a) Excludes nonaccrual loans held for sale.
(b) Excludes loans held for sale.
(c) Excludes government guaranteed residential mortgage loans.
24



Use of Non-GAAP Financial Measures
In addition to GAAP measures, management considers various non-GAAP measures when evaluating the performance of the business, including: “net interest income (FTE),” “interest income (FTE),” “net interest margin (FTE),” “net interest rate spread (FTE),” “income before income taxes (FTE),” “tangible net income available to common shareholders,” “average tangible common equity,” “return on average tangible common equity,” “tangible common equity (excluding AOCI),” “tangible common equity (including AOCI),” “tangible equity,” “tangible book value per share,” “adjusted noninterest income,” “noninterest income excluding certain items,” “adjusted noninterest expense,” “noninterest expense excluding certain items,” “pre-provision net revenue,” “adjusted efficiency ratio,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” “adjusted return on average tangible common equity, excluding accumulated other comprehensive income,” “adjusted net interest margin,” “adjusted pre-provision net revenue,” “adjusted return on average assets,” “efficiency ratio (FTE),” “total revenue (FTE),” "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.
25


Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ and shares in millionsAs of and For the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20212020202020202020
Net interest income$1,176$1,182$1,170$1,200$1,229
Add: Taxable equivalent adjustment33334
Net interest income (FTE) (a)1,1791,1851,1731,2031,233
Net interest income (annualized) (b)4,7694,7024,6554,8264,943
Net interest income (FTE) (annualized) (c)4,7824,7144,6674,8384,959
Interest income1,3021,3151,3291,4031,525
Add: Taxable equivalent adjustment33334
Interest income (FTE)1,3051,3181,3321,4061,529
Interest income (FTE) (annualized) (d)5,2935,2435,2995,6556,150
Interest expense (annualized) (e)5115296338161,191
Average interest-earning assets (f)182,715182,418180,704176,224151,213
Average interest-bearing liabilities (g)116,684118,677123,626124,478109,244
Net interest margin (b) / (f)2.61 %2.58 %2.58 %2.74 %3.27 %
Net interest margin (FTE) (c) / (f)2.62 %2.58 %2.58 %2.75 %3.28 %
Net interest rate spread (FTE) (d) / (f) - (e) / (g)2.46 %2.42 %2.42 %2.55 %2.98 %
Income before income taxes$883$746$746$244$60
Add: Taxable equivalent adjustment33334
Income before income taxes (FTE)$886$749$749$247$64
Net income available to common shareholders$674$569$562$163$29
Add: Intangible amortization, net of tax999910
Tangible net income available to common shareholders (h)68357857117239
Tangible net income available to common shareholders (annualized) (i)2,7702,2992,272692157
Average Bancorp shareholders' equity22,95223,12622,95222,42121,713
Less: Average preferred stock(2,116)(2,116)(2,007)(1,770)(1,770)
Average goodwill(4,259)(4,261)(4,261)(4,261)(4,251)
Average intangible assets(133)(151)(164)(178)(193)
Average tangible common equity, including AOCI (j)16,44416,59816,52016,21215,499
Less:Average AOCI(2,231)(2,623)(2,919)(2,702)(1,825)
Average tangible common equity, excluding AOCI (k)14,21313,97513,60113,51013,674
Total Bancorp shareholders' equity22,59523,11122,95122,33521,873
Less:Preferred stock(2,116)(2,116)(2,116)(1,770)(1,770)
Goodwill(4,259)(4,258)(4,261)(4,261)(4,261)
Intangible assets(127)(139)(157)(171)(184)
Tangible common equity, including AOCI (l)16,09316,59816,41716,13315,658
Less:AOCI(1,792)(2,601)(2,831)(2,951)(2,477)
Tangible common equity, excluding AOCI (m)14,30113,99713,58613,18213,181
Add:Preferred stock2,1162,1162,1161,7701,770
Tangible equity (n)16,41716,11315,70214,95214,951
Total assets206,899204,680201,996202,906185,391
Less:Goodwill(4,259)(4,258)(4,261)(4,261)(4,261)
Intangible assets(127)(139)(157)(171)(184)
Tangible assets, including AOCI (o)202,513200,283197,578198,474180,946
Less:AOCI, before tax(2,268)(3,292)(3,584)(3,735)(3,135)
Tangible assets, excluding AOCI (p)$200,245$196,991$193,994$194,739$177,811
Common shares outstanding (q)712713712712711
Tangible equity (n) / (p)8.20 %8.18 %8.09 %7.68 %8.41 %
Tangible common equity (excluding AOCI) (m) / (p)7.14 %7.11 %6.99 %6.77 %7.41 %
Tangible common equity (including AOCI) (l) / (o)7.95 %8.29 %8.31 %8.13 %8.65 %
Tangible book value per share (l) / (q)$22.60$23.28$23.06$22.66$22.02
26


Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ in millionsFor the Three Months Ended
(unaudited)MarchDecemberMarch
202120202020
Net income (r)$694$604$46
Net income (annualized) (s)2,8152,403185
Adjustments (pre-tax items)(a)
Valuation of Visa total return swap133022
Net business acquisition, disposition, and merger-related charges-277
Fifth Third Foundation contribution-25-
Branch and non-branch real estate charges-21-
Net impairment of private equity investments--15
Adjustments, after-tax (t)(a)
107934
Adjustments (tax related items)
State tax adjustments-(13)-
Adjustments (tax related items) (u)-(13)-
Noninterest income (v)749787671
Valuation of Visa total return swap133022
Net business disposition charges-11-
Net impairment of private equity investments--15
Adjusted noninterest income (w)762828708
Noninterest expense (x)1,2151,2361,200
Fifth Third Foundation contribution-(25)-
Branch and non-branch real estate charges-(21)-
Business acquisition and merger-related charges-(16)(7)
Adjusted noninterest expense (y)1,2151,1741,193
Adjusted net income (r) + (t) + (u)70467080
Adjusted net income (annualized) (z)2,8552,665322
Adjusted tangible net income available to common shareholders (h) + (t) + (u)69364473
Adjusted tangible net income available to common shareholders (annualized) (aa)2,8112,562294
Average assets (ab)$203,836$203,930$171,871
Return on average tangible common equity (i) / (j)16.8 %13.9 %1.0 %
Return on average tangible common equity excluding AOCI (i) / (k)19.5 %16.5 %1.1 %
Adjusted return on average tangible common equity, including AOCI (aa) / (j)17.1 %15.4 %1.9 %
Adjusted return on average tangible common equity, excluding AOCI (aa) / (k)19.8 %18.3 %2.2 %
Return on average assets (s) / (ab)1.38 %1.18 %0.11 %
Adjusted return on average assets (z) / (ab)1.40 %1.31 %0.19 %
Efficiency ratio (x) / [(a) + (v)]63.0 %62.7 %63.0 %
Adjusted efficiency ratio (y) / [(a) + (w)]62.6 %58.3 %61.5 %
Total revenue (FTE) (a) + (v)$1,928$1,972$1,904
Pre-provision net revenue (PPNR) (a) + (v) - (x)$713$736$704
Adjusted pre-provision net revenue (PPNR) (a) + (w) - (y)$726$839$748
(a) Assumes a 23% tax rate
27


Fifth Third Bancorp and Subsidiaries
Segment Presentation
$ in millions
(unaudited)
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
For the three months ended March 31, 2020
Commercial Banking
Branch
Banking(b)
Consumer Lending(c)
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$511$505$89$37$91$1,233
Provision for credit losses(45)(62)(13)(1)(519)(640)
Net interest income after provision for credit losses4664437636(428)593
Noninterest income287198124135(73)671
Noninterest expense(480)(488)(122)(143)33(1,200)
Income (loss) before income taxes2731537828(468)64
Applicable income tax (expense) benefit(a)
(49)(32)(17)(6)86(18)
Net income (loss)$224$121$61$22$(382)$46
(a) Includes taxable equivalent adjustments of $3 million, $3 million, $3 million, $3 million and $4 million for the three months ended March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 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.
28