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Published: 2023-04-20 00:00:00 ET
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EX-99.1 2 q12023earningsrelease.htm EX-99.1 Document


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Fifth Third Reports First Quarter 2023 Diluted Earnings Per Share of $0.78
Average and period-end total deposits were flat compared to the prior quarter
Credit quality remains strong with net charge-off ratio of 0.26% and early stage delinquencies of 0.26%
Reported results included a negative $0.05 impact from certain items on page 2

Key Financial DataKey Highlights
$ millions for all balance sheet and income statement items
1Q23
4Q22
1Q22
         Stability:
•Period-end and average total deposits were flat compared to 4Q22; average core deposits decreased 1% as expected
•Strong credit quality; net charge-off ratio of 0.26%, 30-89 day early stage delinquencies of 0.26%, and NPA ratio of 0.51%
•ACL of 1.99%, an increase of 1 bp from 4Q22, including the (4) bps impact of ASU 2022-02
    Profitability:
     Compared to 1Q22
•Revenue increased 18%, PPNR(a) increased 34% (adjusted PPNR(a) increased 39%), and net income increased 13%
•Efficiency ratio(a) improved approximately 5 points, adjusted efficiency(a) of 58.6% improved approximately 6 points
•Tangible book value per share ex. AOCI(a) increased 7%
    Growth:
•Generated consumer household growth of 3% compared to 1Q22
•Continued to add new quality commercial relationships
•Announced the acquisition of Big Data Healthcare, furthering peer-leading digital payments and managed services offerings

Income Statement Data
Net income available to common shareholders$535$699$474
Net interest income (U.S. GAAP)1,5171,5771,195
Net interest income (FTE)(a)
1,5221,5821,198
Noninterest income696735684
Noninterest expense1,3311,2181,222
Per Share Data
Earnings per share, basic$0.78$1.01$0.69
Earnings per share, diluted0.781.010.68
Book value per share23.8722.2626.33
Tangible book value per share(a)
16.4114.8319.54
Balance Sheet & Credit Quality
Average portfolio loans and leases$122,812$121,371$113,467
Average deposits160,645161,061168,662
Accumulated other comprehensive loss(4,245)(5,110)(1,096)
Net charge-off ratio(b)
0.26%0.22%0.12%
Nonperforming asset ratio(c)
0.510.440.49
Financial Ratios
Return on average assets1.10%1.42%0.96%
Return on average common equity13.718.810.0
Return on average tangible common equity(a)
20.529.213.4
CET1 capital(d)(e)
9.259.289.31
Net interest margin(a)
3.293.352.59
Efficiency(a)
60.052.664.9
Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.
CEO Commentary
Fifth Third delivered strong financial results in the first quarter of 2023. We have continued to navigate the uncertain economic environment well, including delivering solid deposit outcomes throughout the first quarter. Our results reflect the strength and resiliency of our balance sheet, disciplined credit risk management, and strong and diversified revenue streams.

We generated approximately nine points of year-over-year positive operating leverage in the quarter. We also extended our track record of strong organic growth, adding net new households in consumer and new quality relationships in commercial. Furthermore, we announced the acquisition of Big Data Healthcare, which will continue to accelerate our peer-leading digital payments and managed services offerings.

While the economic environment remains uncertain, Fifth Third has spent nearly a decade focused on positioning the bank to generate sustainable financial results. As we navigate the environment, we will follow our guiding principles of stability, profitability, and growth – in that order.

Lastly, we were honored to be named one of the World’s Most Ethical Companies by Ethisphere for the fourth time. We were one of only two banks in the U.S. to receive this award, reflecting our focus on positively impacting customers, communities, and employees, while also delivering strong and sustainable financial results for our shareholders.
Investor contact: Chris Doll (513) 534-2345 | Media contact: Ed Loyd (513) 534-6397 April 20, 2023

                                      -Tim Spence, President and CEO
        
Income Statement Highlights
($ in millions, except per share data)For the Three Months Ended% Change
MarchDecemberMarch
202320222022SeqYr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,522$1,582$1,198(4)%27%
Provision for credit losses16418045(9)%264%
Noninterest income696735684(5)%2%
Noninterest expense1,3311,2181,2229%9%
Income before income taxes(a)
$723$919$615(21)%18%
Taxable equivalent adjustment$5$5$3—67%
Applicable income tax expense160177118(10)%36%
Net income$558$737$494(24)%13%
Dividends on preferred stock233820(39)%15%
Net income available to common shareholders$535$699$474(23)%13%
Earnings per share, diluted$0.78$1.01$0.68(23)%15%
Fifth Third Bancorp (NASDAQ®: FITB) today reported first quarter 2023 net income of $558 million compared to net income of $737 million in the prior quarter and $494 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $535 million, or $0.78 per diluted share, compared to $699 million, or $1.01 per diluted share, in the prior quarter and $474 million, or $0.68 per diluted share, in the year-ago quarter.

Diluted earnings per share impact of certain item(s) - 1Q23
(after-tax impact(f); $ in millions, except per share data)
Valuation of Visa total return swap (noninterest income)$(24)
Restructuring severance expense(9)
After-tax impact(f) of certain items
$(33)
Diluted earnings per share impact of certain item(s)1
$(0.05)
Totals may not foot due to rounding; 1Diluted earnings per share impact reflects 689.566 million average diluted shares outstanding


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Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended% Change
MarchDecemberMarch
202320222022SeqYr/Yr
Interest Income
Interest income$2,218 $2,080 $1,292 7%72%
Interest expense6964989440%640%
Net interest income (NII)$1,522 $1,582 $1,198 (4)%27%
Average Yield/Rate Analysisbps Change
Yield on interest-earning assets4.80 %4.40 %2.79 %40201
Rate paid on interest-bearing liabilities2.18 %1.56 %0.33 %62185
Ratios
Net interest rate spread2.62 %2.84 %2.46 %(22)16
Net interest margin (NIM)3.29 %3.35 %2.59 %(6)70
Compared to the prior quarter, NII decreased $60 million, or 4%, primarily reflecting a shift to a more defensive balance sheet position in light of the environment, the impact of lower day count, and seasonally strong investment portfolio income in the prior quarter, partially offset by improved loan yields from higher market rates and the repricing benefits on fixed-rate consumer loans, as well as commercial and consumer loan growth. Defensive actions undertaken during the quarter include carrying higher levels of cash and other short-term investments, not reinvesting securities portfolio cash flows, extending terms on FHLB advances and jumbo CDs, and raising deposit rates, which resulted in minimizing the use of overnight borrowings in the short-term wholesale funding portfolio and increasing the deposit mix shift from demand to interest-bearing accounts.
Compared to the prior quarter, NIM decreased 6 bps, primarily reflecting the aforementioned deposit dynamics, partially offset by higher loan yields and the impact of lower day count. NIM results were also impacted by the decision to carry elevated liquidity given the environment, with the combination of cash and due from banks and other short term investments reaching $13 billion by quarter-end, which was an increase of 6% compared to the prior quarter and an increase of 30% compared to the third quarter of 2022.
Compared to the year-ago quarter, NII increased $324 million, or 27%, reflecting the net benefit of higher market rates, as well as growth in C&I loan balances and investment portfolio balances, partially offset by the deposit mix shift from demand to interest-bearing accounts and continued deposit repricing dynamics. Compared to the year-ago quarter, NIM increased 70 bps, reflecting the net benefit of higher market rates, growth in C&I loan balances and investment portfolio balances, and a decline in excess cash, partially offset by the aforementioned deposit dynamics and an increase in wholesale funding.

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Noninterest Income
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202320222022SeqYr/Yr
Noninterest Income
Service charges on deposits$137$140$152(2)%(10)%
Commercial banking revenue1611581352%19%
Mortgage banking net revenue69635210%33%
Wealth and asset management revenue1461391495%(2)%
Card and processing revenue10010397(3)%3%
Leasing business revenue575862(2)%(8)%
Other noninterest income227252(69)%(58)%
Securities gains (losses), net42(14)100%NM
Securities losses, net - non-qualifying hedges
   on mortgage servicing rights——(1)NM(100)%
Total noninterest income$696$735$684(5)%2%
Reported noninterest income decreased $39 million, or 5%, from the prior quarter, and increased $12 million, or 2%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans.

Noninterest Income excluding certain items
($ in millions)For the Three Months Ended
MarchDecemberMarch% Change
202320222022SeqYr/Yr
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)$696 $735 $684 
Valuation of Visa total return swap313811
Branch impairment charges—6—
Securities (gains)/losses, net(4)(2)14
Noninterest income excluding certain items(a)
$723 $777 $709(7)%2 % 
Compared to the prior quarter, noninterest income excluding certain items decreased $54 million, or 7%. Compared to the year-ago quarter, noninterest income excluding certain items increased $14 million, or 2%.
Compared to the prior quarter, service charges on deposits decreased $3 million, or 2%, primarily reflecting the market interest rate related impact of higher earnings credits. Commercial banking revenue increased $3 million, or 2%, primarily reflecting higher loan syndication revenue and corporate bond fees, partially offset by lower M&A advisory revenue and client financial risk management revenue. Mortgage banking net revenue increased $6 million, or 10%, primarily reflecting an increase in mortgage servicing revenue and a decrease in MSR asset decay. Wealth and asset management revenue increased $7 million, or 5%, primarily driven by seasonally strong tax-related private client service revenue combined with continued asset inflows. Card and processing revenue decreased $3 million, or 3%, driven by seasonally lower interchange revenue. The decline in other noninterest income was primarily driven by the recognition of tax receivable agreement revenue of $46 million in the prior quarter.
Compared to the year-ago quarter, service charges on deposits decreased $15 million, or 10%, primarily reflecting the market related impact of higher earnings credits and the elimination of consumer non-sufficient funds fees in July 2022. Commercial banking revenue increased $26 million, or 19%, primarily driven by increased loan syndication revenue, fixed income sales and trading revenue, and M&A advisory revenue, partially offset by a decrease in corporate bond fees. Mortgage banking net revenue increased $17 million, or 33%, reflecting a decrease in MSR asset decay and an increase
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in mortgage servicing revenue, partially offset by a decrease from MSR net valuation adjustments and lower gains on loan sales. Wealth and asset management revenue decreased $3 million, or 2%, primarily reflecting lower personal asset management revenue impacted by market valuations. Card and processing revenue increased $3 million, or 3%, driven by higher interchange revenue partially offset by higher rewards. Leasing business revenue decreased $5 million, or 8%, reflecting the disposition of LaSalle Solutions in April 2022.

Noninterest Expense
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202320222022SeqYr/Yr
Noninterest Expense
Compensation and benefits$757 $655 $711 16%6%
Net occupancy expense818277(1)%5%
Technology and communications1181111016%17%
Equipment expense373736—3%
Card and processing expense2221195%16%
Leasing business expense343632(6)%6%
Marketing expense293124(6)%21%
Other noninterest expense2532452223%14%
Total noninterest expense$1,331 $1,218 $1,222 9%9%

Reported noninterest expense increased $113 million, or 9%, from the prior quarter, and increased $109, or 9%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including restructuring severance expense reflecting proactive actions taken to reduce ongoing expenses given the operating environment.
Noninterest Expense excluding certain item(s)
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202320222022SeqYr/Yr
Noninterest Expense excluding certain item(s)
Noninterest expense (U.S. GAAP)$1,331 $1,218 $1,222 
Restructuring severance expense(12)——
Noninterest expense excluding certain item(s)(a)
$1,319 $1,218 $1,2228%8%

Compared to the prior quarter, noninterest expense excluding certain items increased $101 million, or 8%, primarily reflecting a seasonal increase in compensation and benefits expense, the impact of the FDIC assessment to increase the deposit insurance fund, and technology and communications expenses related to continued modernization investments. Noninterest expense in the current quarter included a $12 million expense related to the impact of non-qualified deferred compensation mark-to-market compared to a $6 million expense in the prior quarter (which were largely offset in net securities gains through noninterest income).

Compared to the year-ago quarter, noninterest expense excluding certain items increased $97 million, or 8%, primarily reflecting higher technology and communications expense related to continued modernization investments, the aforementioned impact of the FDIC assessment, and expenses associated with Dividend Finance and Provide. The year-ago quarter included a $12 million benefit to noninterest expense related to non-qualified deferred compensation mark-to-market (which was largely offset in net securities losses through noninterest income).
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Average Interest-Earning Assets
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202320222022SeqYr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans$58,149 $57,646 $52,554 1%11%
Commercial mortgage loans11,12110,89810,5212%6%
Commercial construction loans5,5075,5445,371(1)%3%
Commercial leases2,6622,7362,942(3)%(10)%
Total commercial loans and leases$77,439$76,824$71,3881%8%
Consumer loans:
Residential mortgage loans$17,581$17,577$16,501—7%
Home equity4,0054,0244,009——
Indirect secured consumer loans16,59816,53617,136—(3)%
Credit card1,7801,7951,691(1)%5%
Other consumer loans5,4094,6152,74217%97%
Total consumer loans$45,373$44,547$42,0792%8%
Total average portfolio loans and leases$122,812 $121,371 $113,467 1%8%
Memo:
Average PPP loans$66$158$1,012(58)%(93)%
Average portfolio commercial and industrial loans - excl. PPP loans$58,083$57,488$51,5421%13%
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$56$84$18(33)%211%
Consumer loans held for sale7471,4113,677(47)%(80)%
Total average loans and leases held for sale$803$1,495$3,695(46)%(78)%
Total average loans and leases$123,615$122,866$117,1621%6%
Securities (taxable and tax-exempt)$58,514$58,489$42,422—38%
Other short-term investments5,2786,28528,310(16)%(81)%
Total average interest-earning assets$187,407$187,640$187,894——
Compared to the prior quarter, total average portfolio loans and leases increased 1%, reflecting an increase in both commercial and consumer portfolios. Average commercial portfolio loans and leases increased 1%, reflecting an increase in commercial and industrial (C&I) loan and commercial mortgage loan balances. Average consumer portfolio loans increased 2%, reflecting an increase in other consumer loan balances (primarily Dividend Finance).
Compared to the year-ago quarter, total average portfolio loans and leases increased 8%, reflecting an increase in both commercial and consumer portfolios. Average commercial portfolio loans and leases increased 8%, primarily reflecting an increase in C&I loan and commercial mortgage loan balances, partially offset by a decrease in commercial lease balances. Average consumer portfolio loans increased 8%, as increases in balances of both other consumer loans (primarily Dividend Finance) and residential mortgage loans were partially offset by a decrease in indirect secured consumer loan balances.
Average loans and leases held for sale were $0.8 billion in the current quarter compared to $1.5 billion in the prior quarter and $3.7 billion in the year-ago quarter. Current quarter average loans and leases held for sale were impacted by a decline in residential mortgage balances.
Average securities (taxable and tax-exempt; amortized cost) of $59 billion in the current quarter were flat compared to the prior quarter and increased $16 billion, or 38%, compared to the year-ago quarter. Average other short-term investments
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(including interest-bearing cash) of $5 billion in the current quarter decreased $1 billion, or 16%, compared to the prior quarter and decreased $23 billion, or 81%, compared to the year-ago quarter.

Total period-end commercial portfolio loans and leases of $77 billion increased 1% compared to the prior quarter, primarily reflecting increases in C&I loan and commercial mortgage loan balances. Compared to the year-ago quarter, total period-end commercial portfolio loans increased 6%, primarily reflecting increases in C&I loan and commercial mortgage loan balances, partially offset by a decrease in commercial lease balances. Period-end commercial revolving line utilization was 37%, compared to 37% in the prior quarter and 36% in the year-ago quarter.
Period-end consumer portfolio loans of $46 billion increased 1% compared to the prior quarter, reflecting an increase in other consumer loan balances (primarily Dividend Finance), partially offset by a decrease in credit card balances. Compared to the year-ago quarter, total period-end consumer portfolio loans increased 6%, reflecting increases in other consumer loan balances (primarily Dividend Finance) and residential mortgage loan balances, partially offset by a decrease in indirect secured consumer loans.
Total period-end securities (taxable and tax-exempt; amortized cost) of $58 billion in the current quarter were stable compared to the prior quarter and increased $7 billion, or 14%, compared to the year-ago quarter. Period-end other short-term investments of $10 billion increased $1 billion, or 17%, compared to the prior quarter and decreased $11 billion, or 52%, compared to the year-ago quarter.
Average Deposits
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202320222022SeqYr/Yr
Average Deposits
Demand$50,737 $54,550 $64,212 (7)%(21)%
Interest checking48,71747,80148,6592%—
Savings23,10723,47422,772(2)%1%
Money market28,42028,71330,263(1)%(6)%
Foreign office(g)
143209126(32)%13%
Total transaction deposits$151,124$154,747$166,032(2)%(9)%
CDs $250,000 or less5,1732,7482,37688%118%
Total core deposits$156,297$157,495$168,408(1)%(7)%
CDs over $250,000 4,3483,56625422%NM
Total average deposits$160,645 $161,061 $168,662 —(5)%
Compared to the prior quarter, total average deposits were flat, as increases in certificates of deposit and interest checking balances were offset by a decline in demand deposit account balances. Average demand deposits represented 32% of total core deposits in the current quarter, compared to 35% in the prior quarter. Average consumer segment deposits were flat compared to the prior quarter, average commercial segment deposits decreased 2% due primarily to seasonality, and average wealth & asset management segment deposits increased 4% compared to the prior quarter. Period-end total deposits were flat compared to the prior quarter.
Compared to the year-ago quarter, total average deposits decreased 5%, reflecting the deliberate commercial deposit runoff in mid-2022. Period-end total deposits decreased 4% compared to the year-ago quarter.
The period end portfolio loan-to-core deposit ratio was 78% in the current quarter, compared to 76% in the prior quarter and 68% in the year-ago quarter. Estimated uninsured deposits were approximately $64.6 billion, or 40% of total deposits, as of quarter end.
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Average Wholesale Funding
($ in millions)For the Three Months Ended% Change
MarchDecemberMarch
202320222022SeqYr/Yr
Average Wholesale Funding
CDs over $250,000 $4,348 $3,566 $254 22%NM
Federal funds purchased48726425984%88%
Securities sold under repurchase agreements327476491(31)%(33)%
FHLB advances4,8035,489—(12)%NM
Derivative collateral and other secured borrowings2452253999%(39)%
Long-term debt13,51013,42511,1651%21%
Total average wholesale funding$23,720$23,445$12,5681%89%
Compared to the prior quarter, average wholesale funding increased 1%, primarily reflecting an increase in jumbo CD balances, partially offset by lower FHLB advances.
Compared to the year-ago quarter, average wholesale funding increased 89%, as earning assets were stable and core deposits declined (predominantly due to the deliberate commercial deposit runoff in mid-2022). The growth in wholesale funding was primarily attributed to increases in FHLB advances and jumbo CD balances, as well as long-term debt issuances throughout 2022.
8

Credit Quality Summary
($ in millions)As of and For the Three Months Ended
MarchDecemberSeptemberJuneMarch
20232022202220222022
Total nonaccrual portfolio loans and leases (NPLs)$593$515$522$539$534
Repossessed property86665
OREO2218181427
Total nonperforming portfolio loans and leases and OREO (NPAs)$623$539$546$559$566
NPL ratio(h)
0.48 %0.42 %0.44 %0.45 %0.46 %
NPA ratio(c)
0.51 %0.44 %0.46 %0.47 %0.49 %
Portfolio loans and leases 30-89 days past due (accrual)$317$364$335$294$288
Portfolio loans and leases 90 days past due (accrual)4640593950
30-89 days past due as a % of portfolio loans and leases0.26 %0.30 %0.28 %0.25 %0.25 %
90 days past due as a % of portfolio loans and leases0.04 %0.03 %0.05 %0.03 %0.04 %
Allowance for loan and lease losses (ALLL), beginning$2,194 $2,099 $2,014 $1,908 $1,892 
Impact of adoption of ASU 2022-02(49)————
Total net losses charged-off(78)(68)(62)(62)(34)
Provision for loan and lease losses14816314716850
ALLL, ending$2,215$2,194$2,099$2,014$1,908
Reserve for unfunded commitments, beginning$216$199$188$177$182
Provision for (benefit from) the reserve for unfunded commitments16171111(5)
Reserve for unfunded commitments, ending$232$216$199$188$177
Total allowance for credit losses (ACL)$2,447 $2,410 $2,298 $2,202 $2,085 
ACL ratios:
As a % of portfolio loans and leases1.99 % 1.98 % 1.91 % 1.85 % 1.80 % 
As a % of nonperforming portfolio loans and leases413 % 468 % 440 % 408 % 391 % 
As a % of nonperforming portfolio assets393 % 447 % 420 % 394 % 369 % 
ALLL as a % of portfolio loans and leases1.80 %1.81 %1.75 %1.70 %1.65 %
Total losses charged-off$(110)$(103)$(104)$(90)$(64)
Total recoveries of losses previously charged-off3235422830
Total net losses charged-off$(78)$(68)$(62)$(62)$(34)
Net charge-off ratio (NCO ratio)(b)
0.26 %0.22 %0.21 %0.21 %0.12 %
Commercial NCO ratio0.17 %0.13 %0.17 %0.19 %0.05 %
Consumer NCO ratio0.42 %0.38 %0.28 %0.24 %0.25 %
Nonperforming portfolio loans and leases were $593 million in the current quarter, with the resulting NPL ratio of 0.48%. Compared to the prior quarter, NPLs increased $78 million with the NPL ratio increasing 6 bps. Compared to the year-ago quarter, NPLs increased $59 million with the NPL ratio increasing 2 bps.
Nonperforming portfolio assets were $623 million in the current quarter, with the resulting NPA ratio of 0.51%. Compared to the prior quarter, NPAs increased $84 million with the NPA ratio increasing 7 bps. Compared to the year-ago quarter, NPAs increased $57 million with the NPA ratio increasing 2 bps.
The provision for credit losses totaled $164 million in the current quarter. The allowance for credit loss ratio represented 1.99% of total portfolio loans and leases at quarter end, compared with 1.98% for the prior quarter end and 1.80% for the
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year-ago quarter end. In the current quarter, the allowance for credit losses represented 413% of nonperforming portfolio loans and leases and 393% of nonperforming portfolio assets. The allowance for credit losses decreased by $49 million as a result of the adoption of ASU 2022-02, which changed the guidance for measuring expected credit losses on restructured loans. This adjustment to the ACL was applied through a cumulative effect adjustment to retained earnings.
Net charge-offs were $78 million in the current quarter, resulting in an NCO ratio of 0.26%. Compared to the prior quarter, net charge-offs increased $10 million and the NCO ratio increased 4 bps. Compared to the year-ago quarter, net charge-offs increased $44 million and the NCO ratio increased 14 bps, reflecting a normalization from near-historically low net charge-offs in the year-ago quarter.

Capital Position
As of and For the Three Months Ended
MarchDecemberSeptemberJuneMarch
20232022202220222022
Capital Position
Average total Bancorp shareholders' equity as a % of average assets
8.77 %8.18%9.13%9.35%10.23 %
Tangible equity(a)
8.39 %8.31%8.18%8.05%7.98 %
Tangible common equity (excluding AOCI)(a)
7.38 %7.30%7.16%7.01%6.96 %
Tangible common equity (including AOCI)(a)
5.49 %5.00%4.75%5.82%6.48 %
Regulatory Capital Ratios(d)(e)
CET1 capital
9.25 %9.28%9.14%8.95%9.31 %
Tier 1 risk-based capital
10.49 %10.53%10.40%10.23%10.63 %
Total risk-based capital
12.60 %12.79%12.64%12.47%12.93 %
Leverage8.67 %8.56%8.44%8.30%8.32 %
The CET1 capital ratio was 9.25%, the Tangible common equity to tangible assets ratio was 7.38% excluding AOCI, and 5.49% including AOCI. The Tier 1 risk-based capital ratio was 10.49%, the Total risk-based capital ratio was 12.60%, and the Leverage ratio was 8.67%.
During the first quarter of 2023, Fifth Third repurchased approximately $200 million of its outstanding stock, which reduced common shares by approximately 5.6 million at quarter end.
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Tax Rate
The effective tax rate for the quarter was 22.3% compared with 19.4% in the prior quarter and 19.2% in the year-ago quarter.
Conference Call
Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Us” then “Investor Relations”). Those unable to listen to the live webcast may access a webcast replay through the Fifth Third Investor Relations website at the same web address, which will be available for 30 days.
Corporate Profile
Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people, and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere's World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.

Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.” Investor information and press releases can be viewed at www.53.com.

Earnings Release End Notes
(a)Non-GAAP measure; see discussion of non-GAAP reconciliation beginning on page 26.
(b)Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis.
(c)Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.
(d)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(e)Current period regulatory capital ratios are estimated.
(f)Assumes a 23% tax rate.
(g)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.




11


FORWARD-LOOKING STATEMENTS

This release contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements other than statements of historical fact are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “potential,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K as updated by our filings with the U.S. Securities and Exchange Commission (“SEC”).

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) effects of the global COVID-19 pandemic; (2) deteriorating credit quality; (3) loan concentration by location or industry of borrowers or collateral; (4) problems encountered by other financial institutions; (5) inadequate sources of funding or liquidity; (6) unfavorable actions of rating agencies; (7) inability to maintain or grow deposits; (8) limitations on the ability to receive dividends from subsidiaries; (9) cyber-security risks; (10) Fifth Third’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (11) failures by third-party service providers; (12) inability to manage strategic initiatives and/or organizational changes; (13) inability to implement technology system enhancements; (14) failure of internal controls and other risk management systems; (15) losses related to fraud, theft, misappropriation or violence; (16) inability to attract and retain skilled personnel; (17) adverse impacts of government regulation; (18) governmental or regulatory changes or other actions; (19) failures to meet applicable capital requirements; (20) regulatory objections to Fifth Third’s capital plan; (21) regulation of Fifth Third’s derivatives activities; (22) deposit insurance premiums; (23) assessments for the orderly liquidation fund; (24) replacement of LIBOR; (25) weakness in the national or local economies; (26) global political and economic uncertainty or negative actions; (27) changes in interest rates and the effects of inflation; (28) changes and trends in capital markets; (29) fluctuation of Fifth Third’s stock price; (30) volatility in mortgage banking revenue; (31) litigation, investigations, and enforcement proceedings by governmental authorities; (32) breaches of contractual covenants, representations and warranties; (33) competition and changes in the financial services industry; (34) changing retail distribution strategies, customer preferences and behavior; (35) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (36) potential dilution from future acquisitions; (37) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (38) results of investments or acquired entities; (39) changes in accounting standards or interpretation or declines in the value of Fifth Third’s goodwill or other intangible assets; (40) inaccuracies or other failures from the use of models; (41) effects of critical accounting policies and judgments or the use of inaccurate estimates; (42) weather-related events, other natural disasters, or health emergencies (including pandemics); (43) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity; (44) changes in law or requirements imposed by Fifth Third’s regulators impacting our capital actions, including dividend payments and stock repurchases; and (45) Fifth Third's ability to meet its environmental and/or social targets, goals and commitments.

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.
# # #


12

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Quarterly Financial Review for March 31, 2023

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/Rate Analysis21
Summary of Loans and Leases22
Regulatory Capital23
Summary of Credit Loss Experience24
Asset Quality25
Non-GAAP Reconciliation26-28
Segment Presentation29


13

Fifth Third Bancorp and Subsidiaries
Financial HighlightsAs of and For the Three Months Ended% / bps
$ in millions, except per share dataChange
(unaudited)MarchDecemberMarch
202320222022SeqYr/Yr
Income Statement Data
Net interest income$1,517$1,577$1,195(4%)27%
Net interest income (FTE)(a)
1,5221,5821,198(4%)27%
Noninterest income696735684(5%)2%
Total revenue (FTE)(a)
2,2182,3171,882(4%)18%
Provision for credit losses16418045(9%)264%
Noninterest expense1,3311,2181,2229%9%
Net income558737494(24%)13%
Net income available to common shareholders535699474(23%)13%
Earnings Per Share Data
Net income allocated to common shareholders$535$698$473(23%)13%
Average common shares outstanding (in thousands):
Basic684,017688,680687,538(1%)(1%)
Diluted689,566694,195696,242(1%)(1%)
Earnings per share, basic$0.78$1.01$0.69(23%)13%
Earnings per share, diluted0.781.010.68(23%)15%
Common Share Data
Cash dividends per common share$0.33$0.33$0.30—10%
Book value per share23.8722.2626.337%(9%)
Market value per share26.6432.8143.04(19%)(38%)
Common shares outstanding (in thousands)680,537683,386685,905—(1%)
Market capitalization$18,129$22,422$29,521(19%)(39%)
Financial Ratios
Return on average assets1.10 %1.42 %0.96 %(32)14
Return on average common equity13.7 %18.8 %10.0 %(510)370
Return on average tangible common equity(a)
20.5 %29.2 %13.4 %(870)710
Noninterest income as a percent of total revenue(a)
31 %32 %36 %(100)(500)
Dividend payout42.3 %32.7 %43.5 %960(120)
Average total Bancorp shareholders’ equity as a percent of average assets
8.77 %8.18 %10.23 %59(146)
Tangible common equity(a)
7.38 %7.30 %6.96 %842
Net interest margin (FTE)(a)
3.29 %3.35 %2.59 %(6)70
Efficiency (FTE)(a)
60.0 %52.6 %64.9 %740(490)
Effective tax rate22.3 %19.4 %19.2 %290310
Credit Quality
Net losses charged-off$78$68$3415 %129 %
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.26 %0.22 %0.12 %414
ALLL as a percent of portfolio loans and leases1.80 %1.81 %1.65 %(1)15
ACL as a percent of portfolio loans and leases(g)
1.99 %1.98 %1.80 %119
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.51 %0.44 %0.49 %72
Average Balances
Loans and leases, including held for sale$123,615$122,866$117,1621%6%
Securities and other short-term investments63,79264,77470,732(2%)(10%)
Assets205,084206,017209,150—(2%)
Transaction deposits(b)
151,124154,747166,032(2%)(9%)
Core deposits(c)
156,297157,495168,408(1%)(7%)
Wholesale funding(d)
23,72023,44512,5681%89%
Bancorp shareholders' equity
17,97716,85721,4027%(16%)
Regulatory Capital Ratios(e)(f)
CET1 capital
9.25 %9.28 %9.31 %(3)(6)
Tier 1 risk-based capital
10.49 %10.53 %10.63 %(4)(14)
Total risk-based capital
12.60 %12.79 %12.93 %(19)(33)
Leverage8.67 %8.56 %8.32 %1135
Additional Metrics
Banking centers1,0691,0871,079(2%)(1%)
ATMs2,1182,1322,201(1%)(4%)
Full-time equivalent employees19,47419,31919,2471%1%
Assets under care ($ in billions)(h)
$542$510$5496%(1%)
Assets under management ($ in billions)(h)
5755614%(7%)
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 26.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)Assets under management and assets under care include trust and brokerage assets.


14

Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share dataAs of and For the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20232022202220222022
Income Statement Data
Net interest income$1,517$1,577$1,498$1,339$1,195
Net interest income (FTE)(a)
1,5221,5821,5021,3421,198
Noninterest income696735672676684
Total revenue (FTE)(a)
2,2182,3172,1742,0181,882
Provision for credit losses16418015817945
Noninterest expense1,3311,2181,1671,1121,222
Net income558737653562494
Net income available to common shareholders535699631526474
Earnings Per Share Data
Net income allocated to common shareholders$535$698$631$525$473
Average common shares outstanding (in thousands):
Basic684,017688,680689,278689,019687,538
Diluted689,566694,195694,593694,805696,242
Earnings per share, basic$0.78$1.01$0.91$0.76$0.69
Earnings per share, diluted0.781.010.910.760.68
Common Share Data
Cash dividends per common share$0.33$0.33$0.33$0.30$0.30
Book value per share23.8722.2621.3024.5626.33
Market value per share26.6432.8131.9633.6043.04
Common shares outstanding (in thousands)680,537683,386686,343686,152685,905
Market capitalization$18,129$22,422$21,936$23,055$29,521
Financial Ratios
Return on average assets1.10 %1.42 %1.25 %1.09 %0.96 %
Return on average common equity13.7 %18.8 %14.9 %12.3 %10.0 %
Return on average tangible common equity(a)
20.5 %29.2 %21.9 %17.5 %13.4 %
Noninterest income as a percent of total revenue(a)
31 %32 %31 %33 %36 %
Dividend payout42.3 %32.7 %36.3 %39.5 %43.5 %
Average total Bancorp shareholders’ equity as a percent of average assets
8.77 %8.18 %9.13 %9.35 %10.23 %
Tangible common equity(a)
7.38 %7.30 %7.16 %7.01 %6.96 %
Net interest margin (FTE)(a)
3.29 %3.35 %3.22 %2.92 %2.59 %
Efficiency (FTE)(a)
60.0 %52.6 %53.7 %55.1 %64.9 %
Effective tax rate22.3 %19.4 %22.7 %22.4 %19.2 %
Credit Quality
Net losses charged-off$78$68$62$62$34
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.26 %0.22 %0.21 %0.21 %0.12 %
ALLL as a percent of portfolio loans and leases1.80 %1.81 %1.75 %1.70 %1.65 %
ACL as a percent of portfolio loans and leases(g)
1.99 %1.98 %1.91 %1.85 %1.80 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.51 %0.44 %0.46 %0.47 %0.49 %
Average Balances
Loans and leases, including held for sale$123,615$122,866$121,900$120,236$117,162
Securities and other short-term investments63,79264,77463,47864,17070,732
Assets205,084206,017206,688205,897209,150
Transaction deposits(b)
151,124154,747155,195160,035166,032
Core deposits(c)
156,297157,495157,243162,228168,408
Wholesale funding(d)
23,72023,44522,06515,78912,568
Bancorp shareholders’ equity
17,97716,85718,86419,24821,402
Regulatory Capital Ratios(e)(f)
CET1 capital
9.25 %9.28 %9.14 %8.95 %9.31 %
Tier 1 risk-based capital10.49 %10.53 %10.40 %10.23 %10.63 %
Total risk-based capital
12.60 %12.79 %12.64 %12.47 %12.93 %
Leverage8.67 %8.56 %8.44 %8.30 %8.32 %
Additional Metrics
Banking centers1,0691,0871,0801,0801,079
ATMs2,1182,1322,1462,1532,201
Full-time equivalent employees19,47419,31919,18719,11919,247
Assets under care ($ in billions)(h)
$542$510$494$512$549
Assets under management ($ in billions)(h)
5755525461
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 26.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)Assets under management and assets under care include trust and brokerage assets.

15

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended% Change
(unaudited)MarchDecemberMarch
202320222022SeqYr/Yr
Interest Income
Interest and fees on loans and leases$1,714$1,577$9839%74%
Interest on securities439440294—49%
Interest on other short-term investments6058123%400%
Total interest income2,2132,0751,2897%72%
Interest Expense
Interest on deposits4783001159%NM
Interest on federal funds purchased52—150%NM
Interest on other short-term borrowings5753—8%NM
Interest on long-term debt156143839%88%
Total interest expense6964989440%640%
Net Interest Income1,5171,5771,195(4%)27%
Provision for credit losses16418045(9%)264%
Net Interest Income After Provision for Credit Losses1,3531,3971,150(3%)18%
Noninterest Income
Service charges on deposits137140152(2%)(10%)
Commercial banking revenue1611581352%19%
Mortgage banking net revenue69635210%33%
Wealth and asset management revenue1461391495%(2%)
Card and processing revenue10010397(3%)3%
Leasing business revenue575862(2%)(8%)
Other noninterest income227252(69%)(58%)
Securities gains (losses), net42(14)100%NM
Securities losses, net - non-qualifying hedges on mortgage servicing rights——(1)NM(100%)
Total noninterest income696735684(5%)2%
Noninterest Expense
Compensation and benefits75765571116%6%
Net occupancy expense818277(1%)5%
Technology and communications1181111016%17%
Equipment expense373736—3%
Card and processing expense2221195%16%
Leasing business expense343632(6%)6%
Marketing expense293124(6%)21%
Other noninterest expense2532452223%14%
Total noninterest expense1,3311,2181,2229%9%
Income Before Income Taxes718914612(21%)17%
Applicable income tax expense160177118(10%)36%
Net Income558737494(24%)13%
Dividends on preferred stock233820(39%)15%
Net Income Available to Common Shareholders$535$699$474(23%)13%
16

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20232022202220222022
Interest Income
Interest and fees on loans and leases$1,714$1,577$1,315$1,081$983
Interest on securities439440414369294
Interest on other short-term investments6058311412
Total interest income2,2132,0751,7601,4641,289
Interest Expense
Interest on deposits4783001122511
Interest on federal funds purchased5231—
Interest on other short-term borrowings57534312—
Interest on long-term debt1561431048783
Total interest expense69649826212594
Net Interest Income1,5171,5771,4981,3391,195
Provision for credit losses16418015817945
Net Interest Income After Provision for Credit Losses1,3531,3971,3401,1601,150
Noninterest Income
Service charges on deposits137140143154152
Commercial banking revenue161158134137135
Mortgage banking net revenue6963693152
Wealth and asset management revenue146139141140149
Card and processing revenue10010310510597
Leasing business revenue5758605662
Other noninterest income2272598552
Securities gains (losses), net42(38)(32)(14)
Securities losses, net - non-qualifying hedges on mortgage servicing rights——(1)—(1)
Total noninterest income696735672676684
Noninterest Expense
Compensation and benefits757655605584711
Net occupancy expense8182747577
Technology and communications11811110698101
Equipment expense3737363636
Card and processing expense2221212019
Leasing business expense3436333132
Marketing expense2931352824
Other noninterest expense253245257240222
Total noninterest expense1,3311,2181,1671,1121,222
Income Before Income Taxes718914845724612
Applicable income tax expense160177192162118
Net Income558737653562494
Dividends on preferred stock2338223620
Net Income Available to Common Shareholders$535$699$631$526$474
17

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of% Change
(unaudited)MarchDecemberMarch
202320222022SeqYr/Yr
Assets
Cash and due from banks$2,780$3,466$3,049(20%)(9%)
Other short-term investments9,7948,35120,52917%(52%)
Available-for-sale debt and other securities(a)
50,71951,50348,832(2%)4%
Held-to-maturity securities(b)
256(60%)(67%)
Trading debt securities1,174414324184%262%
Equity securities3233173582%(10%)
Loans and leases held for sale7491,0072,616(26%)(71%)
Portfolio loans and leases:
  Commercial and industrial loans57,72057,23253,9091%7%
  Commercial mortgage loans11,22811,02010,6942%5%
  Commercial construction loans5,5485,4335,4202%2%
  Commercial leases2,7432,7042,9151%(6%)
Total commercial loans and leases77,23976,38972,9381%6%
  Residential mortgage loans17,60817,62817,144—3%
  Home equity3,9584,0393,916(2%)1%
  Indirect secured consumer loans16,48416,55217,424—(5%)
  Credit card1,7611,8741,690(6%)4%
  Other consumer loans5,8074,9982,75316%111%
Total consumer loans45,61845,09142,9271%6%
Portfolio loans and leases122,857121,480115,8651%6%
Allowance for loan and lease losses(2,215)(2,194)(1,908)1%16%
Portfolio loans and leases, net120,642119,286113,9571%6%
Bank premises and equipment2,2192,1872,1021%6%
Operating lease equipment578627622(8%)(7%)
Goodwill4,9154,9154,514—9%
Intangible assets157169145(7%)8%
Servicing rights1,7251,7461,444(1%)19%
Other assets12,88013,45912,961(4%)(1%)
Total Assets$208,657$207,452$211,4591%(1%)
Liabilities
Deposits:
  Demand $49,649$53,125$65,590(7%)(24%)
  Interest checking 49,92451,65348,836(3%)2%
  Savings 22,56323,46923,622(4%)(4%)
  Money market 28,48228,22029,9471%(5%)
  Foreign office 134182115(26%)17%
  CDs $250,000 or less6,6243,8092,26774%192%
  CDs over $250,0005,5993,23223473%NM
Total deposits162,975163,690170,611—(4%)
Federal funds purchased177180250(2%)(29%)
Other short-term borrowings7,3644,83887252%744%
Accrued taxes, interest and expenses1,5771,8221,471(13%)7%
Other liabilities5,3075,8817,263(10%)(27%)
Long-term debt12,89313,71410,815(6%)19%
Total Liabilities190,293190,125191,282—(1%)
Equity
Common stock(c)
2,0512,0512,051——
Preferred stock2,1162,1162,116——
Capital surplus3,6823,6843,615—2%
Retained earnings22,03221,68920,5012%7%
Accumulated other comprehensive loss(4,245)(5,110)(1,096)(17%)287%
Treasury stock(7,272)(7,103)(7,010)2%4%
Total Equity18,36417,32720,1776%(9%)
Total Liabilities and Equity$208,657$207,452$211,4591%(1%)
(a) Amortized cost$55,958$57,530$50,171(3%)12%
(b) Market values2 5 6 (60%)(67%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,000——
Outstanding, excluding treasury680,537683,386685,905——
Treasury243,356240,507237,987——


18

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of
(unaudited)MarchDecemberSeptemberJuneMarch
20232022202220222022
Assets
Cash and due from banks$2,780$3,466$3,068$3,437$3,049
Other short-term investments9,7948,3516,5947,41920,529
Available-for-sale debt and other securities(a)
50,71951,50351,28952,83748,832
Held-to-maturity securities(b)
25556
Trading debt securities1,174414414293324
Equity securities323317315326358
Loans and leases held for sale7491,0071,9402,5422,616
Portfolio loans and leases:
  Commercial and industrial loans57,72057,23256,43756,09553,909
  Commercial mortgage loans11,22811,02010,94710,74810,694
  Commercial construction loans5,5485,4335,5735,3575,420
  Commercial leases2,7432,7042,8212,8502,915
Total commercial loans and leases77,23976,38975,77875,05072,938
  Residential mortgage loans17,60817,62817,60017,56617,144
  Home equity3,9584,0394,0003,9063,916
  Indirect secured consumer loans16,48416,55216,64617,01717,424
  Credit card1,7611,8741,7701,7631,690
  Other consumer loans5,8074,9984,2053,5212,753
Total consumer loans45,61845,09144,22143,77342,927
Portfolio loans and leases122,857121,480119,999118,823115,865
Allowance for loan and lease losses(2,215)(2,194)(2,099)(2,014)(1,908)
Portfolio loans and leases, net120,642119,286117,900116,809113,957
Bank premises and equipment2,2192,1872,1552,1182,102
Operating lease equipment578627612600622
Goodwill4,9154,9154,9254,9264,514
Intangible assets157169181194145
Servicing rights1,7251,7461,7321,5821,444
Other assets12,88013,45914,33313,69412,961
Total Assets$208,657$207,452$205,463$206,782$211,459
Liabilities
Deposits:
  Demand $49,649$53,125$57,601$60,859$65,590
  Interest checking49,92451,65346,98543,33848,836
  Savings 22,56323,46923,77123,74823,622
  Money market 28,48228,22028,70728,79229,947
  Foreign office 134182185177115
CDs $250,000 or less6,6243,8092,0072,1252,267
CDs over $250,0005,5993,2322,3962,135234
Total deposits162,975163,690161,652161,174170,611
Federal funds purchased177180212711250
Other short-term borrowings7,3644,8386,3787,057872
Accrued taxes, interest and expenses1,5771,8221,5891,6831,471
Other liabilities5,3075,8817,1846,1977,263
Long-term debt12,89313,71411,71210,99010,815
Total Liabilities190,293190,125188,727187,812191,282
Equity
Common stock(c)
2,0512,0512,0512,0512,051
Preferred stock2,1162,1162,1162,1162,116
Capital surplus3,6823,6843,6603,6363,615
Retained earnings22,03221,68921,21920,81820,501
Accumulated other comprehensive loss(4,245)(5,110)(5,306)(2,644)(1,096)
Treasury stock(7,272)(7,103)(7,004)(7,007)(7,010)
Total Equity18,36417,32716,73618,97020,177
Total Liabilities and Equity$208,657$207,452$205,463$206,782$211,459
(a) Amortized cost$55,958$57,530$57,372$56,140$50,171
(b) Market values25556
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,0002,000,0002,000,000
Outstanding, excluding treasury680,537683,386686,343686,152685,905
Treasury243,356240,507237,549237,741237,987
19

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months Ended
MarchMarch
20232022
Total Equity, Beginning$17,327$22,210
Impact of cumulative effect of change in accounting principle37—
Net income558494
Other comprehensive income (loss), net of tax:
Change in unrealized gains (losses):
Available-for-sale debt securities600(1,931)
Qualifying cash flow hedges265(373)
Change in accumulated other comprehensive income related to employee benefit plans—1
Comprehensive income (loss)1,423(1,809)
Cash dividends declared:
Common stock(229)(209)
Preferred stock(23)(20)
Impact of stock transactions under stock compensation plans, net305
Shares acquired for treasury(201)—
Total Equity, Ending$18,364$20,177
20

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisFor the Three Months Ended
$ in millionsMarchDecemberMarch
(unaudited)202320222022
AverageAverageAverageAverageAverageAverage
BalanceYield/RateBalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$58,2046.41 %$57,7295.71 %$52,5623.29 %
  Commercial mortgage loans(a)
11,1215.54 %10,8984.98 %10,5293.00 %
  Commercial construction loans(a)
5,5076.50 %5,5445.73 %5,3713.29 %
  Commercial leases(a)
2,6633.48 %2,7373.23 %2,9432.85 %
Total commercial loans and leases77,4956.19 %76,9085.52 %71,4053.23 %
  Residential mortgage loans18,3293.39 %18,9873.48 %20,1793.17 %
  Home equity4,0066.47 %4,0245.63 %4,0103.52 %
  Indirect secured consumer loans16,5983.95 %16,5363.67 %17,1363.08 %
  Credit card1,78014.16 %1,79513.39 %1,69112.31 %
  Other consumer loans5,4076.95 %4,6166.27 %2,7416.08 %
Total consumer loans46,1204.69 %45,9584.40 %45,7573.68 %
Total loans and leases123,6155.63 %122,8665.10 %117,1623.41 %
Securities:
Taxable securities57,1103.06 %57,2303.00 %41,4122.84 %
Tax exempt securities(a)
1,4043.11 %1,2593.02 %1,0102.40 %
Other short-term investments5,2784.65 %6,2853.68 %28,3100.18 %
Total interest-earning assets187,4074.80 %187,6404.40 %187,8942.79 %
Cash and due from banks3,1363,1272,962
Other assets16,68717,35120,186
Allowance for loan and lease losses(2,146)(2,101)(1,892)
Total Assets$205,084$206,017$209,150
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$48,7172.34 %$47,8011.63 %$48,6590.05 %
  Savings deposits23,1070.59 %23,4740.37 %22,7720.02 %
  Money market deposits28,4201.20 %28,7130.61 %30,2630.03 %
  Foreign office deposits1431.91 %2091.51 %1260.04 %
  CDs $250,000 or less5,1732.67 %2,7481.12 %2,3760.12 %
Total interest-bearing core deposits105,5601.67 %102,9451.05 %104,1960.04 %
  CDs over $250,0004,3484.15 %3,5663.15 %2540.85 %
Total interest-bearing deposits109,9081.76 %106,5111.12 %104,4500.04 %
  Federal funds purchased4874.55 %2643.52 %2590.15 %
  Securities sold under repurchase agreements3270.73 %4760.36 %4910.01 %
  FHLB advances4,8034.44 %5,4893.61 %—0.15 %
  Derivative collateral and other secured borrowings2455.90 %2254.10 %3990.31 %
  Long-term debt13,5104.68 %13,4254.23 %11,1653.02 %
Total interest-bearing liabilities129,2802.18 %126,3901.56 %116,7640.33 %
Demand deposits50,73754,55064,212
Other liabilities7,0908,2206,772
Total Liabilities187,107189,160187,748
Total Equity17,97716,85721,402
Total Liabilities and Equity$205,084$206,017$209,150
Ratios:
  Net interest margin (FTE)(b)
3.29 %3.35 %2.59 %
  Net interest rate spread (FTE)(b)
2.62 %2.84 %2.46 %
  Interest-bearing liabilities to interest-earning assets68.98 %67.36 %62.14 %
(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 26.









21

Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millionsFor the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20232022202220222022
Average Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$58,149$57,646$56,646$55,460$52,554
  Commercial mortgage loans11,12110,89810,75110,71010,521
  Commercial construction loans5,5075,5445,5575,3565,371
  Commercial leases2,6622,7362,7922,8392,942
Total commercial loans and leases77,43976,82475,74674,36571,388
Consumer loans:
  Residential mortgage loans17,58117,57717,61717,36316,501
  Home equity4,0054,0243,9563,8954,009
  Indirect secured consumer loans16,59816,53616,75017,24117,136
  Credit card1,7801,7951,7561,7041,691
  Other consumer loans5,4094,6153,8193,1252,742
Total consumer loans45,37344,54743,89843,32842,079
Total average portfolio loans and leases$122,812$121,371$119,644$117,693$113,467
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$56$84$3$7$18
Consumer loans held for sale7471,4112,2532,5363,677
Average loans and leases held for sale$803$1,495$2,256$2,543$3,695
Average PPP loans(a)
$66$158$283$549$1,012
Average portfolio commercial and industrial loans - excluding PPP loans58,08357,48856,36354,91151,542
Total average portfolio commercial and industrial loans$58,149$57,646$56,646$55,460$52,554
End of Period Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$57,720$57,232$56,437$56,095$53,909
  Commercial mortgage loans11,22811,02010,94710,74810,694
  Commercial construction loans5,5485,4335,5735,3575,420
  Commercial leases2,7432,7042,8212,8502,915
Total commercial loans and leases77,23976,38975,77875,05072,938
Consumer loans:
  Residential mortgage loans17,60817,62817,60017,56617,144
  Home equity3,9584,0394,0003,9063,916
  Indirect secured consumer loans16,48416,55216,64617,01717,424
  Credit card1,7611,8741,7701,7631,690
  Other consumer loans5,8074,9984,2053,5212,753
Total consumer loans45,61845,09144,22143,77342,927
Total portfolio loans and leases$122,857$121,480$119,999$118,823$115,865
End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale$24$73$69$4$23
Consumer loans held for sale7259341,8712,5382,593
Loans and leases held for sale$749$1,007$1,940$2,542$2,616
Operating lease equipment$578$627$612$600$622
Loans and Leases Serviced for Others(b)
Commercial and industrial loans$1,090$1,109$1,067$994$993
Commercial mortgage loans696614630601592
Commercial construction loans386406421418502
Commercial leases588581567566571
Residential mortgage loans103,399103,154102,696100,51997,736
Other consumer loans881912941974—
Total loans and leases serviced for others107,040106,776106,322104,072100,394
Total loans and leases owned or serviced$231,224$229,890$228,873$226,037$219,497
End of period PPP loans(a)
$48$94$210$371$737
End of period portfolio commercial and industrial loans - excluding PPP loans57,67257,13856,22755,72453,172
Total end of period portfolio commercial and industrial loans$57,720$57,232$56,437$56,095$53,909
(a)Paycheck Protection Program loans are included in commercial and industrial loans in the Condensed Consolidated Balance Sheets.
(b)Fifth Third sells certain loans and leases and obtains servicing responsibilities.
22

Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millionsAs of
(unaudited)MarchDecemberSeptemberJuneMarch
2023(a)
2022202220222022
Regulatory Capital(b)
CET1 capital$15,727$15,670$15,264$14,827$14,937
Additional tier 1 capital2,1162,1162,1162,1162,116
Tier 1 capital17,84317,78617,38016,94317,053
Tier 2 capital3,5953,8203,7433,7133,676
Total regulatory capital$21,438$21,606$21,123$20,656$20,729
Risk-weighted assets
$170,094$168,909$167,060$165,659$160,352
Ratios
Average total Bancorp shareholders' equity as a percent of average assets
8.77 %8.18 %9.13 %9.35 %10.23 %
Regulatory Capital Ratios(b)
Fifth Third Bancorp
CET1 capital
9.25 %9.28 %9.14 %8.95 %9.31 %
Tier 1 risk-based capital
10.49 %10.53 %10.40 %10.23 %10.63 %
Total risk-based capital
12.60 %12.79 %12.64 %12.47 %12.93 %
Leverage8.67 %8.56 %8.44 %8.30 %8.32 %
Fifth Third Bank, National Association
Tier 1 risk-based capital
11.60 %11.31 %10.94 %10.58 %10.85 %
Total risk-based capital
13.02 %12.81 %12.41 %12.01 %12.24 %
Leverage9.63 %9.23 %8.91 %8.61 %8.51 %
(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.
23

Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millionsFor the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20232022202220222022
Average portfolio loans and leases:
  Commercial and industrial loans$58,149$57,646$56,646$55,460$52,554
  Commercial mortgage loans11,12110,89810,75110,71010,521
  Commercial construction loans5,5075,5445,5575,3565,371
  Commercial leases2,6622,7362,7922,8392,942
Total commercial loans and leases77,43976,82475,74674,36571,388
  Residential mortgage loans17,58117,57717,61717,36316,501
  Home equity4,0054,0243,9563,8954,009
  Indirect secured consumer loans16,59816,53616,75017,24117,136
  Credit card1,7801,7951,7561,7041,691
  Other consumer loans5,4094,6153,8193,1252,742
Total consumer loans45,37344,54743,89843,32842,079
Total average portfolio loans and leases$122,812$121,371$119,644$117,693$113,467
Losses charged-off:
  Commercial and industrial loans($32)($30)($46)($34)($11)
  Commercial mortgage loans—————
  Commercial construction loans(1)——(3)—
  Commercial leases—(6)(1)——
Total commercial loans and leases(33)(36)(47)(37)(11)
  Residential mortgage loans(1)(1)(1)—(1)
  Home equity(1)(2)(2)(3)(2)
  Indirect secured consumer loans(23)(21)(18)(14)(16)
  Credit card(20)(17)(15)(18)(17)
  Other consumer loans(32)(26)(21)(18)(17)
Total consumer loans(77)(67)(57)(53)(53)
Total losses charged-off($110)($103)($104)($90)($64)
Recoveries of losses previously charged-off:
  Commercial and industrial loans$2$10$12$1$2
  Commercial mortgage loans————1
  Commercial construction loans——1——
  Commercial leases—12——
Total commercial loans and leases2111513
  Residential mortgage loans1—212
  Home equity12333
  Indirect secured consumer loans97899
  Credit card54344
  Other consumer loans141111109
Total consumer loans3024272727
Total recoveries of losses previously charged-off$32$35$42$28$30
Net losses charged-off:
  Commercial and industrial loans($30)($20)($34)($33)($9)
  Commercial mortgage loans————1
  Commercial construction loans(1)—1(3)—
  Commercial leases—(5)1——
Total commercial loans and leases(31)(25)(32)(36)(8)
  Residential mortgage loans—(1)111
  Home equity——1—1
  Indirect secured consumer loans(14)(14)(10)(5)(7)
  Credit card(15)(13)(12)(14)(13)
  Other consumer loans(18)(15)(10)(8)(8)
Total consumer loans(47)(43)(30)(26)(26)
Total net losses charged-off($78)($68)($62)($62)($34)
Net losses charged-off as a percent of average portfolio loans and leases (annualized):
  Commercial and industrial loans0.21 %0.14 %0.24 %0.24 %0.07 %
  Commercial mortgage loans0.01 %— (0.01 %)— (0.03 %)
  Commercial construction loans0.10 %— (0.08 %)0.23 %— 
  Commercial leases(0.04 %)0.70 %(0.12 %)(0.03 %)(0.02 %)
Total commercial loans and leases0.17 %0.13 %0.17 %0.19 %0.05 %
  Residential mortgage loans— 0.01 %(0.02 %)(0.02 %)(0.02 %)
  Home equity(0.04 %)0.02 %(0.08 %)(0.06 %)(0.07 %)
  Indirect secured consumer loans0.34 %0.32 %0.24 %0.13 %0.17 %
  Credit card3.43 %2.85 %2.69 %3.26 %3.13 %
  Other consumer loans1.41 %1.33 %1.10 %1.04 %1.07 %
Total consumer loans0.42 %0.38 %0.28 %0.24 %0.25 %
Total net losses charged-off as a percent of average portfolio loans and leases (annualized)0.26 %0.22 %0.21 %0.21 %0.12 %
24

Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millionsFor the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20232022202220222022
Allowance for Credit Losses
Allowance for loan and lease losses, beginning$2,194$2,099$2,014$1,908$1,892
Impact of adoption of ASU 2022-02(49)————
  Total net losses charged-off(78)(68)(62)(62)(34)
Provision for loan and lease losses14816314716850
Allowance for loan and lease losses, ending$2,215$2,194$2,099$2,014$1,908
Reserve for unfunded commitments, beginning$216$199$188$177$182
  Provision for (benefit from) the reserve for unfunded commitments16171111(5)
Reserve for unfunded commitments, ending$232$216$199$188$177
Components of allowance for credit losses:
  Allowance for loan and lease losses$2,215$2,194$2,099$2,014$1,908
  Reserve for unfunded commitments232216199188177
Total allowance for credit losses$2,447$2,410$2,298$2,202$2,085
As of
MarchDecemberSeptemberJuneMarch
20232022202220222022
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
  Commercial and industrial loans$280$215$254$268$272
  Commercial mortgage loans4440404542
  Commercial construction loans58246
  Commercial leases5—223
  Residential mortgage loans12912411510588
  Home equity6867687277
  Indirect secured consumer loans2729151822
  Credit card2927232323
  Other consumer loans65321
Total nonaccrual portfolio loans and leases593515522539534
Repossessed property86665
OREO2218181427
Total nonperforming portfolio loans and leases and OREO623539546559566
Nonaccrual loans held for sale————4
Total nonperforming assets$623$539$546$559$570
Loans and leases 90 days past due (accrual):
  Commercial and industrial loans$17$11$16$6$9
  Commercial mortgage loans————2
  Commercial leases—2101—
Total commercial loans and leases171326711
  Residential mortgage loans(c)
977814
  Home equity11121
  Indirect secured consumer loans——1089
  Credit card1818141314
  Other consumer loans11111
Total consumer loans2927333239
Total loans and leases 90 days past due (accrual)(b)
$46$40$59$39$50
Ratios
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.26 %0.22 %0.21 %0.21 %0.12 %
Allowance for credit losses:
As a percent of portfolio loans and leases1.99 %1.98 %1.91 %1.85 %1.80 %
   As a percent of nonperforming portfolio loans and leases(a)
413 %468 %440 %408 %391 %
   As a percent of nonperforming portfolio assets(a)
393 %447 %420 %394 %369 %
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases(a)
0.48 %0.42 %0.44 %0.45 %0.46 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
0.51 %0.44 %0.46 %0.47 %0.49 %
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property0.50 %0.44 %0.45 %0.46 %0.48 %
(a) Excludes nonaccrual loans held for sale.
(b) Excludes loans held for sale.
(c) Excludes government guaranteed residential mortgage loans.


25


Use of Non-GAAP Financial Measures
In addition to GAAP measures, management considers various non-GAAP measures when evaluating the performance of the business, including: “net interest income (FTE),” “interest income (FTE),” “net interest margin (FTE),” “net interest rate spread (FTE),” “income before income taxes (FTE),” “tangible net income available to common shareholders,” “average tangible common equity,” “return on average tangible common equity,” “tangible common equity (excluding AOCI),” “tangible common equity (including AOCI),” “tangible equity,” “tangible book value per share,” “tangible book value per share (excluding AOCI),” “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 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.
26

Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ and shares in millionsAs of and For the Three Months Ended
(unaudited)MarchDecemberSeptemberJuneMarch
20232022202220222022
Net interest income$1,517$1,577$1,498$1,339$1,195
Add: Taxable equivalent adjustment55433
Net interest income (FTE) (a)1,5221,5821,5021,3421,198
Net interest income (annualized) (b)6,1526,2575,9435,3714,846
Net interest income (FTE) (annualized) (c)6,1736,2765,9595,3834,859
Interest income2,2132,0751,7601,4641,289
Add: Taxable equivalent adjustment55433
Interest income (FTE)2,2182,0801,7641,4671,292
Interest income (FTE) (annualized) (d)8,9958,2526,9985,8845,240
Interest expense (annualized) (e)2,8231,9761,039501381
Average interest-earning assets (f)187,407187,640185,378184,406187,894
Average interest-bearing liabilities (g)129,280126,390119,773115,462116,764
Net interest margin (b) / (f)3.28 %3.33 %3.21 %2.91 %2.58 %
Net interest margin (FTE) (c) / (f)3.29 %3.35 %3.22 %2.92 %2.59 %
Net interest rate spread (FTE) (d) / (f) - (e) / (g)2.62 %2.84 %2.91 %2.76 %2.46 %
Income before income taxes$718$914$845$724$612
Add: Taxable equivalent adjustment55433
Income before income taxes (FTE)723919849727615
Net income available to common shareholders535699631526474
Add: Intangible amortization, net of tax9101099
Tangible net income available to common shareholders (h)544709641535483
Tangible net income available to common shareholders (annualized) (i)2,2062,8132,5432,1461,959
Average Bancorp shareholders’ equity
17,97716,85718,86419,24821,402
Less: Average preferred stock(2,116)(2,116)(2,116)(2,116)(2,116)
Average goodwill(4,915)(4,925)(4,926)(4,744)(4,514)
Average intangible assets(163)(176)(188)(158)(150)
Average tangible common equity, including AOCI (j)10,7839,64011,63412,23014,622
Less:Average AOCI4,4425,3863,0372,397(129)
Average tangible common equity, excluding AOCI (k)15,22515,02614,67114,62714,493
Total Bancorp shareholders’ equity
18,36417,32716,73618,97020,177
Less:Preferred stock(2,116)(2,116)(2,116)(2,116)(2,116)
Goodwill(4,915)(4,915)(4,925)(4,926)(4,514)
Intangible assets(157)(169)(181)(194)(145)
Tangible common equity, including AOCI (l)11,17610,1279,51411,73413,402
Less:AOCI4,2455,1105,3062,6441,096
Tangible common equity, excluding AOCI (m)15,42115,23714,82014,37814,498
Add:Preferred stock2,1162,1162,1162,1162,116
Tangible equity (n)17,53717,35316,93616,49416,614
Total assets208,657207,452205,463206,782211,459
Less:Goodwill(4,915)(4,915)(4,925)(4,926)(4,514)
Intangible assets(157)(169)(181)(194)(145)
Tangible assets, including AOCI (o)203,585202,368200,357201,662206,800
Less:AOCI, before tax5,3736,4686,7163,3471,387
Tangible assets, excluding AOCI (p)$208,958$208,836$207,073$205,009$208,187
Common shares outstanding (q)681683686686686
Tangible equity (n) / (p)8.39 %8.31 %8.18 %8.05 %7.98 %
Tangible common equity (excluding AOCI) (m) / (p)7.38 %7.30 %7.16 %7.01 %6.96 %
Tangible common equity (including AOCI) (l) / (o)5.49 %5.00 %4.75 %5.82 %6.48 %
Tangible book value per share (including AOCI) (l) / (q)$16.41$14.83$13.87$17.10$19.54
Tangible book value per share (excluding AOCI) (m) / (q)$22.64$22.31$21.60$20.96$21.13
27

Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ in millionsFor the Three Months Ended
(unaudited)MarchDecemberMarch
202320222022
Net income (r)$558$737$494
Net income (annualized) (s)2,2632,9242,003
Adjustments (pre-tax items)
Valuation of Visa total return swap313811
Restructuring severance expense12——
Branch impairment charges—6—
Adjustments, after-tax (t)(a)
33348
Adjustments (tax related items)
Tax benefit associated with resolution of certain acquisition related tax matters—(15)—
Adjustments (tax related items) (u)—(15)—
Noninterest income (v)696735684
Valuation of Visa total return swap313811
Branch impairment charges—6—
Adjusted noninterest income (w)727779695
Noninterest expense (x)1,3311,2181,222
Restructuring severance expense(12)——
Adjusted noninterest expense (y)1,3191,2181,222
Adjusted net income (r) + (t) + (u)591756502
Adjusted net income (annualized) (z)2,3972,9992,036
Adjusted tangible net income available to common shareholders (h) + (t) + (u)577728491
Adjusted tangible net income available to common shareholders (annualized) (aa)2,3402,8881,991
Average assets (ab)$205,084$206,017$209,150
Return on average tangible common equity (i) / (j)20.5 %29.2 %13.4 %
Return on average tangible common equity excluding AOCI (i) / (k)14.5 %18.7 %13.5 %
Adjusted return on average tangible common equity, including AOCI (aa) / (j)21.7 %30.0 %13.6 %
Adjusted return on average tangible common equity, excluding AOCI (aa) / (k)15.4 %19.2 %13.7 %
Return on average assets (s) / (ab)1.10 %1.42 %0.96 %
Adjusted return on average assets (z) / (ab)1.17 %1.46 %0.97 %
Efficiency ratio (FTE) (x) / [(a) + (v)]60.0 %52.6 %64.9 %
Adjusted efficiency ratio (y) / [(a) + (w)]58.6 %51.6 %64.6 %
Total revenue (FTE) (a) + (v)$2,218$2,317$1,882
Adjusted total revenue (FTE) (a) + (w)$2,249$2,361$1,893
Pre-provision net revenue (PPNR) (a) + (v) - (x)$887$1,099$660
Adjusted pre-provision net revenue (PPNR) (a) + (w) - (y)$930$1,143$671
Totals may not foot due to rounding; (a) Assumes a 23% tax rate

28

Fifth Third Bancorp and Subsidiaries
Segment Presentation
$ in millions
(unaudited)
For the three months ended March 31, 2023
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$980$1,257$101$(816)$1,522
Provision for credit losses(46)(51)—(67)(164)
Net interest income after provision for credit losses9341,206101(883)1,358
Noninterest income336273138(51)696
Noninterest expense(551)(645)(146)11(1,331)
Income (loss) before income taxes71983493(923)723
Applicable income tax (expense) benefit(a)
(139)(175)(19)168(165)
Net income (loss)$580$659$74$(755)$558
For the three months ended December 31, 2022
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$876$1,151$94$(539)$1,582
(Provision for) benefit from credit losses11(46)—(145)(180)
Net interest income after (provision for) benefit from credit losses8871,10594(684)1,402
Noninterest income349268133(15)735
Noninterest expense(464)(602)(134)(18)(1,218)
Income (loss) before income taxes77277193(717)919
Applicable income tax (expense) benefit(a)
(150)(162)(19)149(182)
Net income (loss)$622$609$74$(568)$737
For the three months ended September 30, 2022
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$596$833$79$(6)$1,502
(Provision for) benefit from credit losses2(34)—(126)(158)
Net interest income after (provision for) benefit from credit losses59879979(132)1,344
Noninterest income298286134(46)672
Noninterest expense(440)(608)(142)23(1,167)
Income (loss) before income taxes45647771(155)849
Applicable income tax (expense) benefit(a)
(87)(100)(15)6(196)
Net income (loss)$369$377$56$(149)$653
For the three months ended June 30, 2022
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$555$631$53$103$1,342
Provision for credit losses(80)(29)—(70)(179)
Net interest income after provision for credit losses47560253331,163
Noninterest income356241132(53)676
Noninterest expense(442)(580)(137)47(1,112)
Income before income taxes3892634827727
Applicable income tax expense(a)
(72)(55)(10)(28)(165)
Net income (loss)$317$208$38$(1)$562
For the three months ended March 31, 2022
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$525$517$35$121$1,198
(Provision for) benefit from credit losses34(29)—(50)(45)
Net interest income after (provision for) benefit from credit losses55948835711,153
Noninterest income339256144(55)684
Noninterest expense(479)(601)(142)—(1,222)
Income before income taxes4191433716615
Applicable income tax expense(a)
(78)(31)(8)(4)(121)
Net income$341$112$29$12$494
(a) Includes taxable equivalent adjustments of $5 million for the three months ended March 31, 2023 and December 31, 2022, $4 million for the three months ended September 30, 2022 and $3 million for the three months ended June 30, 2022 and March 31, 2022.
29