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Published: 2022-10-20 00:00:00 ET
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Fifth Third Announces Third Quarter 2022 Results
Reported diluted earnings per share of $0.91
Reported results included a negative $0.02 impact from a certain item on page 2
Key Financial DataKey Highlights
$ millions for all balance sheet and income statement items
3Q22
2Q22
3Q21
       Select Business Highlights:
•Generated consumer household growth of 3% compared to 3Q21
•Increased quarterly cash dividend on common shares 3 cents, or 10%
•Private Bank recognized as Best Private Bank for High Net Worth Clients by Digital Banker and Global Private Banker
•Surpassed 1 million Momentum banking accounts
      Select Financial Highlights:
•ROTCE(a) of 21.9%; adjusted ROTCE(a) of 17.7% excl. AOCI
•Compared to 3Q21, PPNR(a) increased 18% (adjusted PPNR(a) increased 24%)
•Efficiency ratio(a) of 53.7%, a 4 point improvement from 3Q21
•Net interest income(a) increased 12% compared to 2Q22; NIM(a) up 30 basis points compared to 2Q22
•ACL of 1.91%, an increase of 6 bps from 2Q22 (increase of 2 bps excluding Dividend Finance); NPA ratio of 0.46% improved 1 bp compared to 2Q22



Income Statement Data
Net income available to common shareholders$631$526$684
Net interest income (U.S. GAAP)1,4981,3391,189
Net interest income (FTE)(a)
1,5021,3421,192
Noninterest income672676836
Noninterest expense1,1671,1121,172
Per Share Data
Earnings per share, basic$0.91$0.76$0.98
Earnings per share, diluted0.910.760.97
Book value per share21.3024.5629.59
Tangible book value per share(a)
13.8717.1022.79
Balance Sheet & Credit Quality
Average portfolio loans and leases$119,644$117,693$107,970
Average deposits159,469162,890162,647
Net charge-off ratio(b)
0.21%0.21%0.08%
Nonperforming asset ratio(c)
0.460.470.52
Financial Ratios
Return on average assets1.25%1.09%1.36%
Return on average common equity14.912.313.0
Return on average tangible common equity(a)
21.917.516.9
CET1 capital(d)(e)
9.118.959.86
Net interest margin(a)
3.222.922.59
Efficiency(a)
53.755.157.8
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
Our third quarter financial results were strong and reflected our disciplined approach throughout the bank. We generated record adjusted revenue driven by interest-earning assets growth combined with a 30 basis point improvement in our net interest margin. We also achieved one of our lowest adjusted efficiency ratios over the past decade reflecting our expense discipline.

We extended our track record of strong organic growth, adding new quality relationships in commercial and new households in consumer. Provide and Dividend Finance - our recent fintech acquisitions - have also contributed to our healthy loan growth with record originations. We are committed throughout the bank to continuous improvement and developing innovative, software-led solutions to deliver best-in-class products and services.

Fifth Third has been built to perform well through-the-cycle. Our key credit quality metrics in both commercial and consumer portfolios remain resilient, reflecting our focus on high-quality relationships and disciplined approach to client selection. We remain well positioned to outperform peers and generate long-term sustainable value for customers, communities, employees and shareholders.

                                      -Tim Spence, President and CEO
        
Investor contact: Chris Doll (513) 534-2345 | Media contact: Ed Loyd (513) 534-6397 October 20, 2022

Income Statement Highlights
($ in millions, except per share data)For the Three Months Ended% Change
SeptemberJuneSeptember
202220222021SeqYr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,502$1,342$1,19212%26%
Provision for (benefit from) credit losses158179(42)(12)%NM
Noninterest income672676836(1)%(20)%
Noninterest expense1,1671,1121,1725%—
Income before income taxes(a)
$849$727$89817%(5)%
Taxable equivalent adjustment$4$3$333%33%
Applicable income tax expense19216219119%1%
Net income$653$562$70416%(7)%
Dividends on preferred stock223620(39)%10%
Net income available to common shareholders$631$526$68420%(8)%
Earnings per share, diluted$0.91$0.76$0.9720%(6)%
Fifth Third Bancorp (NASDAQ®: FITB) today reported third quarter 2022 net income of $653 million compared to net income of $562 million in the prior quarter and $704 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $631 million, or $0.91 per diluted share, compared to $526 million, or $0.76 per diluted share, in the prior quarter and $684 million, or $0.97 per diluted share, in the year-ago quarter.

Diluted earnings per share impact of certain item(s) - 3Q22
(after-tax impact(f); $ in millions, except per share data)
Valuation of Visa total return swap (noninterest income)$(13)
Diluted earnings per share impact of certain item(s)1
$(0.02)
1Diluted earnings per share impact reflects 694.593 million average diluted shares outstanding




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Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended% Change
SeptemberJuneSeptember
202220222021SeqYr/Yr
Interest Income
Interest income$1,764 $1,467 $1,295 20%36%
Interest expense262125103110%154%
Net interest income (NII)$1,502 $1,342 $1,192 12%26%
Average Yield/Rate Analysisbps Change
Yield on interest-earning assets3.78 %3.19 %2.81 %5997
Rate paid on interest-bearing liabilities0.87 %0.43 %0.36 %4451
Ratios
Net interest rate spread2.91 %2.76 %2.45 %1546
Net interest margin (NIM)3.22 %2.92 %2.59 %3063
Compared to the prior quarter, NII increased $160 million, or 12%, primarily reflecting higher market rates, growth in commercial loan balances, the full quarter impact of securities purchased in the second quarter, as well as a higher day count, partially offset by an increase in wholesale funding primarily due to a decline in average core deposit balances. Compared to the prior quarter, NIM increased 30 bps, reflecting the net benefit of higher market rates as well as a decrease in other short-term investments (primarily interest-bearing cash), partially offset by the aforementioned increase in wholesale funding.
Compared to the year-ago quarter, NII increased $310 million, or 26%, reflecting the net benefit of higher market rates, as well as growth in investment portfolio balances and C&I loan balances, partially offset by lower PPP-related income and lower interest income from government guaranteed mortgage buyouts. Compared to the year-ago quarter, NIM increased 63 bps, reflecting the benefit of higher market rates as well as growth in investment portfolio balances, partially offset by a decrease in other short-term investments (primarily interest-bearing cash).
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Noninterest Income
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202220222021SeqYr/Yr
Noninterest Income
Service charges on deposits$143$154$152(7)%(6)%
Commercial banking revenue134137152(2)%(12)%
Mortgage banking net revenue693186123%(20)%
Wealth and asset management revenue1411401471%(4)%
Card and processing revenue105105102—3%
Leasing business revenue6056787%(23)%
Other noninterest income5985120(31)%(51)%
Securities losses, net(38)(32)(1)19%NM
Securities losses, net - non-qualifying hedges
   on mortgage servicing rights(1)——NMNM
Total noninterest income$672$676$836(1)%(20)%
Reported noninterest income decreased $4 million, or 1%, from the prior quarter, and decreased $164 million, or 20%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below. Reported current quarter results included $38 million of net securities losses, which included $7 million in net losses attributable to mark-to-market impacts related to investments supporting non-qualified deferred compensation plans, as well as a $28 million net loss attributable to market value changes on Fifth Third's shares of Rubicon Technologies, Inc. and AvidXchange Holdings, Inc.

Noninterest Income excluding certain items
($ in millions)For the Three Months Ended
SeptemberJuneSeptember
202220222021
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)$672 $676 $836 
Valuation of Visa total return swap171817
Net disposition charges/(gain)—6(60)
Securities losses, net38321
Noninterest income excluding certain items(a)
$727 $732 $794 
Compared to the prior quarter, noninterest income excluding certain items decreased $5 million, or 1%. Compared to the year-ago quarter, noninterest income excluding certain items decreased $67 million, or 8%.
Compared to the prior quarter, service charges on deposits decreased $11 million, or 7%, reflecting the impact of higher treasury management earnings credits which more than offset gross revenue growth, as well as the elimination of consumer non-sufficient funds fees. Commercial banking revenue decreased $3 million, or 2%, primarily driven by lower M&A advisory revenue and corporate bond fees, partially offset by higher loan syndication revenue. Mortgage banking net revenue increased $38 million, or 123%, primarily reflecting a $19 million reduction in MSR asset decay and an $18 million increase from MSR net valuation adjustments. Wealth and asset management revenue increased $1 million, or 1%, primarily driven by increased high-net-worth insurance revenue, partially offset by a decline in personal asset management revenue. Card and processing revenue was flat as lower rewards were offset by lower spend volumes. Leasing business revenue increased $4 million, or 7%, primarily reflecting higher lease remarketing revenue. The decrease in other noninterest income was primarily attributable to lower private equity income.
Compared to the year-ago quarter, service charges on deposits decreased $9 million, or 6%, reflecting higher treasury management earnings credits and the elimination of consumer non-sufficient funds fees. Commercial banking revenue
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decreased $18 million, or 12%, primarily driven by decreases in corporate bond fees, M&A advisory revenue, and loan syndication revenue, partially offset by an increase in client financial risk management revenue. Mortgage banking net revenue decreased $17 million, or 20%, reflecting a $54 million decrease in origination fees and gains on loan sales and a $10 million reduction from MSR net valuation adjustments, partially offset by a $29 million decrease in MSR asset decay and an $18 million increase in mortgage servicing revenue. Wealth and asset management revenue decreased $6 million, or 4%, primarily reflecting lower personal asset management revenue impacted by market valuations. Card and processing revenue increased $3 million, or 3%, driven by higher spend volumes partially offset by higher rewards. Leasing business revenue decreased $18 million, or 23%, reflecting the disposition of LaSalle Solutions, partially offset by an increase in lease remarketing revenue. The decrease in other noninterest income was primarily attributable to lower private equity income.

Noninterest Expense
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202220222021SeqYr/Yr
Noninterest Expense
Compensation and benefits$605 $584 $627 4%(4)%
Net occupancy expense747579(1)%(6)%
Technology and communications10698988%8%
Equipment expense363634—6%
Card and processing expense2120195%11%
Leasing business expense3331336%—
Marketing expense35282925%21%
Other noninterest expense2572402537%2%
Total noninterest expense$1,167 $1,112 $1,172 5%—

Compared to the prior quarter, noninterest expense increased $55 million, or 5%. Noninterest expense in the current quarter included a $7 million benefit related to the impact of non-qualified deferred compensation mark-to-market (compared to a $27 million benefit in the prior quarter). Excluding the non-qualified deferred compensation impacts from both periods, total noninterest expense increased $35 million, or 3%, primarily driven by higher technology and marketing expense, the full quarter impact of the Dividend Finance acquisition, and the impact of the recent minimum wage increase.

Compared to the year-ago quarter, noninterest expense decreased $5 million primarily reflecting a decrease in compensation and benefits expense. This was partially offset by an increase in technology and communications expense related to continued modernization investments as well as higher marketing expense.
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Average Interest-Earning Assets
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202220222021SeqYr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans$56,646 $55,460 $47,766 2%19%
Commercial mortgage loans10,75110,71010,317—4%
Commercial construction loans5,5575,3565,7284%(3)%
Commercial leases2,7922,8393,158(2)%(12)%
Total commercial loans and leases$75,746$74,365$66,9692%13%
Consumer loans:
Residential mortgage loans$17,617$17,363$16,2231%9%
Home equity3,9563,8954,4092%(10)%
Indirect secured consumer loans16,75017,24115,590(3)%7%
Credit card1,7561,7041,7483%—
Other consumer loans3,8193,1253,03122%26%
Total consumer loans$43,898$43,328$41,0011%7%
Total average portfolio loans and leases$119,644 $117,693 $107,970 2%11%
Memo:
Average PPP loans$283$549$3,071(48)%(91)%
Average portfolio commercial and industrial loans - excl. PPP loans$56,363$54,911$44,6953%26%
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$3$7$31(57)%(90)%
Consumer loans held for sale2,2532,5365,527(11)%(59)%
Total average loans and leases held for sale$2,256$2,543$5,558(11)%(59)%
Total average loans and leases$121,900$120,236$113,5281%7%
Securities (taxable and tax-exempt)$57,713$54,538$37,2086%55%
Other short-term investments5,7659,63232,065(40)%(82)%
Total average interest-earning assets$185,378$184,406$182,8011%1%
Compared to the prior quarter, total average portfolio loans and leases increased 2%, reflecting an increase in both commercial and consumer portfolios. Average commercial portfolio loans and leases increased 2%, primarily reflecting an increase in commercial and industrial (C&I) and commercial construction loan balances. Average consumer portfolio loans increased 1%, reflecting an increase in other consumer loan balances (primarily Dividend Finance) and residential mortgage loan balances, partially offset by a decrease in indirect secured consumer loan balances.
Compared to the year-ago quarter, total average portfolio loans and leases increased 11%, reflecting an increase in both commercial and consumer portfolios. Average commercial portfolio loans and leases increased 13%, primarily reflecting an increase in C&I loan balances, partially offset by a decrease in commercial lease balances. Average consumer portfolio loans increased 7%, as increases in both residential mortgage and indirect secured consumer loan balances were partially offset by a decrease in home equity balances.
Average loans and leases held for sale were $2 billion in the current quarter compared to $3 billion in the prior quarter and $6 billion in the year-ago quarter. Current quarter average loans and leases held for sale were impacted by a decline in residential mortgage balances (primarily from a decline in government guaranteed mortgage buyouts).
Average securities (taxable and tax-exempt) of $58 billion in the current quarter increased $3 billion, or 6%, compared to the prior quarter and increased $21 billion, or 55%, compared to the year-ago quarter. Average other short-term
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investments (including interest-bearing cash) of $6 billion in the current quarter decreased $4 billion, or 40%, compared to the prior quarter and decreased $26 billion, or 82%, compared to the year-ago quarter.

Total period-end commercial portfolio loans and leases of $76 billion increased 1% compared to the prior quarter, primarily reflecting an increase in C&I balances. Compared to the year-ago quarter, total period-end commercial portfolio loans increased 14%, primarily reflecting an increase in C&I 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 31% in the year-ago quarter.
Period-end consumer portfolio loans of $44 billion increased 1% compared to the prior quarter, primarily reflecting an increase in other consumer loan balances (primarily Dividend Finance) and home equity balances, partially offset by a decrease in indirect secured consumer loan balances. Compared to the year-ago quarter, total period-end consumer portfolio loans increased 7%, reflecting an increase in residential mortgage balances and other consumer loan balances, partially offset by a decrease in home equity balances.
Total period-end securities (taxable and tax-exempt; amortized cost) of $58 billion in the current quarter increased $1 billion, or 2%, compared to the prior quarter and increased $21 billion, or 57%, compared to the year-ago quarter. Period-end other short-term investments of $7 billion decreased $1 billion, or 11%, compared to the prior quarter and decreased $28 billion, or 81%, compared to the year-ago quarter.

Average Deposits
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202220222021SeqYr/Yr
Average Deposits
Demand$59,535 $62,555 $62,626 (5)%(5)%
Interest checking42,57444,34945,128(4)%(6)%
Savings23,81423,70820,941—14%
Money market29,06629,28430,514(1)%(5)%
Foreign office(g)
20613919548%6%
Total transaction deposits$155,195$160,035$159,404(3)%(3)%
CDs $250,000 or less2,0482,1932,937(7)%(30)%
Total core deposits$157,243$162,228$162,341(3)%(3)%
CDs over $250,000 2,226662306236%627%
Total average deposits$159,469 $162,890 $162,647 (2)%(2)%
Compared to the prior quarter, average core deposits decreased 3%, primarily reflecting a decline in commercial deposit balances including the full quarter impact of second quarter's deliberate deposit runoff. Average demand deposits represented 38% of total core deposits in the current quarter, relatively stable with the prior quarter. Average commercial transaction deposits decreased 5% and average consumer transaction deposits decreased 1%. Period end core deposits were flat compared to the prior quarter.
Compared to the year-ago quarter, average core deposits decreased 3%, primarily reflecting the aforementioned commercial deposit runoff. Average commercial transaction deposits decreased 10% and average consumer transaction deposits increased 5%. Period end core deposits decreased 3% compared to the year-ago quarter.
The period end portfolio loan-to-core deposit ratio was 75% in the current quarter, compared to 75% in the prior quarter and 65% in the year-ago quarter.
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Average Wholesale Funding
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202220222021SeqYr/Yr
Average Wholesale Funding
CDs over $250,000 $2,226 $662 $306 236%627%
Federal funds purchased60739234855%74%
Other short-term borrowings7,4363,5711,122108%563%
Long-term debt11,79611,16412,0576%(2)%
Total average wholesale funding$22,065$15,789$13,83340%60%
Compared to the prior quarter, average wholesale funding increased 40%, as earning asset growth outpaced core deposit balances. The growth in wholesale funding was primarily attributed to increases in other short-term borrowings and jumbo CD balances. Compared to the year-ago quarter, average wholesale funding increased 60%, reflecting increases in other short-term borrowings, jumbo CD balances, and federal funds purchased, partially offset by decreases in long-term debt.

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Credit Quality Summary
($ in millions)As of and For the Three Months Ended
SeptemberJuneMarchDecemberSeptember
20222022202220212021
Total nonaccrual portfolio loans and leases (NPLs)$522$539$534$498$528
Repossessed property66554
OREO1814272427
Total nonperforming portfolio loans and leases and OREO (NPAs)$546$559$566$527$559
NPL ratio(h)
0.44 %0.45 %0.46 %0.44 %0.49 %
NPA ratio(c)
0.46 %0.47 %0.49 %0.47 %0.52 %
Total loans and leases 30-89 days past due (accrual)$335$294$288$254$267
Total loans and leases 90 days past due (accrual)59395011792
Allowance for loan and lease losses (ALLL), beginning$2,014 $1,908 $1,892 $1,954 $2,033 
Total net losses charged-off(62)(62)(34)(38)(21)
Provision for (benefit from) loan and lease losses14716850(24)(58)
ALLL, ending$2,099$2,014$1,908$1,892$1,954
Reserve for unfunded commitments, beginning$188$177$182$205$189
Provision for (benefit from) the reserve for unfunded commitments1111(5)(23)16
Reserve for unfunded commitments, ending$199$188$177$182$205
Total allowance for credit losses (ACL)$2,298 $2,202 $2,085 $2,074 $2,159 
ACL ratios:
As a % of portfolio loans and leases1.91 % 1.85 % 1.80 % 1.85 % 2.00 % 
As a % of nonperforming portfolio loans and leases440 % 408 % 391 % 416 % 409 % 
As a % of nonperforming portfolio assets420 % 394 % 369 % 394 % 386 % 
ALLL as a % of portfolio loans and leases1.75 %1.70 %1.65 %1.69 %1.81 %
Total losses charged-off$(104)$(90)$(64)$(77)$(56)
Total recoveries of losses previously charged-off4228303935
Total net losses charged-off$(62)$(62)$(34)$(38)$(21)
Net charge-off ratio (NCO ratio)(b)
0.21 %0.21 %0.12 %0.14 %0.08 %
Commercial NCO ratio0.17 %0.19 %0.05 %0.10 %0.03 %
Consumer NCO ratio0.28 %0.24 %0.25 %0.21 %0.16 %
Nonperforming portfolio loans and leases were $522 million in the current quarter, with the resulting NPL ratio of 0.44%. Compared to the prior quarter, NPLs decreased $17 million with the NPL ratio decreasing 1 bp. Compared to the year-ago quarter, NPLs decreased $6 million with the NPL ratio decreasing 5 bps.
Nonperforming portfolio assets were $546 million in the current quarter, with the resulting NPA ratio of 0.46%. Compared to the prior quarter, NPAs decreased $13 million with the NPA ratio decreasing 1 bp. Compared to the year-ago quarter, NPAs decreased $13 million with the NPA ratio decreasing 6 bps.
The provision for credit losses totaled $158 million in the current quarter. The allowance for credit loss ratio represented 1.91% of total portfolio loans and leases at quarter end, compared with 1.85% for the prior quarter end and 2.00% for the year-ago quarter end. In the current quarter, the allowance for credit losses represented 440% of nonperforming portfolio loans and leases and 420% of nonperforming portfolio assets.
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Net charge-offs were $62 million in the current quarter, with the resulting NCO ratio of 0.21%. Compared to the prior quarter, both net charge-offs and the NCO ratio remained flat. Compared to the year-ago quarter, net charge-offs increased $41 million and the NCO ratio increased 13 bps, reflecting a normalization from historically low net charge-offs in the year-ago quarter.

Capital Position
As of and For the Three Months Ended
SeptemberJuneMarchDecemberSeptember
20222022202220212021
Capital Position
Average total Bancorp shareholders' equity as a % of average assets9.13 %9.35 %10.23%10.71%11.16 %
Tangible equity(a)
8.18 %8.05 %7.98%7.97%8.06 %
Tangible common equity (excluding AOCI)(a)
7.16 %7.01 %6.96%6.94%7.01 %
Tangible common equity (including AOCI)(a)
4.75 %5.82 %6.48%7.47%7.74 %
Regulatory Capital Ratios(d)(e)
CET1 capital
9.11 %8.95 %9.31%9.54%9.86 %
Tier 1 risk-based capital
10.38 %10.23 %10.63%10.91%11.28 %
Total risk-based capital
12.61 %12.47 %12.93%13.42%13.94 %
Leverage8.44 %8.30 %8.32%8.27%8.41 %
The CET1 capital ratio was 9.11%, the tangible common equity to tangible assets ratio was 7.16% excluding AOCI, and 4.75% including AOCI. The Tier 1 risk-based capital ratio was 10.38%, the Total risk-based capital ratio was 12.61%, and the Leverage ratio was 8.44%.
Fifth Third increased its quarterly cash dividend on its common shares by $0.03, or 10%, to $0.33 per share for the third quarter of 2022.
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Tax Rate
The effective tax rate for the quarter was 22.7% compared with 22.4% in the prior quarter and 21.3% 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 27.
(b)Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis.
(c)Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.
(d)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(e)Current period regulatory capital ratios are estimated.
(f)Assumes a 23% tax rate.
(g)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; (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 September 30, 2022

Table of Contents


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


13

Fifth Third Bancorp and Subsidiaries
Financial Highlights% / bps% / bps
$ in millions, except per share dataFor the Three Months EndedChangeYear to DateChange
(unaudited)SeptemberJuneSeptemberSeptemberSeptember
202220222021SeqYr/Yr20222021Yr/Yr
Income Statement Data
Net interest income$1,498$1,339$1,18912%26%$4,032$3,57413%
Net interest income (FTE)(a)
1,5021,3421,19212%26%4,0433,58313%
Noninterest income672676836(1%)(20%)2,0312,326(13%)
Total revenue (FTE)(a)
2,1742,0182,0288%7%6,0745,9093%
Provision for (benefit from) credit losses158179(42)(12%)NM383(330)NM
Noninterest expense1,1671,1121,1725%—3,5013,541(1%)
Net income65356270416%(7%)1,7092,107(19%)
Net income available to common shareholders63152668420%(8%)1,6312,032(20%)
Earnings Per Share Data
Net income allocated to common shareholders$631$525$68320%(8%)$1,630$2,027(20%)
Average common shares outstanding (in thousands):
Basic689,278689,019697,457—%(1%)688,618706,846(3%)
Diluted694,593694,805706,090—%(2%)695,207715,803(3%)
Earnings per share, basic$0.91$0.76$0.9820%(7%)$2.37$2.87(17%)
Earnings per share, diluted0.910.760.9720%(6%)2.342.83(17%)
Common Share Data
Cash dividends per common share$0.33$0.30$0.3010%10%$0.93$0.8411%
Book value per share21.3024.5629.59(13%)(28%)21.3029.59(28%)
Market value per share31.9633.6042.44(5%)(25%)31.9642.44(25%)
Common shares outstanding (in thousands)686,343686,152689,790——686,343689,790—
Market capitalization$21,936$23,055$29,275(5%)(25%)$21,936$29,275(25%)
Financial Ratios
Return on average assets1.25 %1.09 %1.36 %16(11)1.10 %1.37 %(27)
Return on average common equity14.9 %12.3 %13.0 %26019012.3 %13.1 %(80)
Return on average tangible common equity(a)
21.9 %17.5 %16.9 %44050017.3 %16.8 %50
Noninterest income as a percent of total revenue(a)
31 %33 %41 %(200)(1,000)33 %39 %(600)
Dividend payout36.3 %39.5 %30.6 %(320)NM39.2 %29.3 %NM
Average total Bancorp shareholders’ equity as a percent of average assets
9.13 %9.35 %11.16 %(22)(203)9.57 %11.18 %(161)
Tangible common equity(a)
7.16 %7.01 %7.01 %15157.16 %7.01 %15
Net interest margin (FTE)(a)
3.22 %2.92 %2.59 %30632.91 %2.61 %30
Efficiency (FTE)(a)
53.7 %55.1 %57.8 %(140)(410)57.6 %59.9 %(230)
Effective tax rate22.7 %22.4 %21.3 %3014021.6 %21.6 %—
Credit Quality
Net losses charged-off$62$62$21— %195 %$159$13617 %
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.21 %0.21 %0.08 %—130.18 %0.17 %1
ALLL as a percent of portfolio loans and leases1.75 %1.70 %1.81 %5(6)1.75 %1.81 %(6)
ACL as a percent of portfolio loans and leases(g)
1.91 %1.85 %2.00 %6(9)1.91 %2.00 %(9)
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.46 %0.47 %0.52 %(1)(6)0.46 %0.52 %(6)
Average Balances
Loans and leases, including held for sale$121,900$120,236$113,5281%7%$119,784$113,8905%
Securities and other short-term investments63,47864,17069,273(1%)(8%)66,09969,589(5%)
Assets206,688205,897205,449—1%207,236205,2191%
Transaction deposits(b)
155,195160,035159,404(3%)(3%)160,381157,3612%
Core deposits(c)
157,243162,228162,341(3%)(3%)162,586160,7811%
Wholesale funding(d)
22,06515,78913,83340%60%16,84215,6867%
Bancorp shareholders’ equity
18,86419,24822,927(2%)(18%)19,82922,935(14%)
Regulatory Capital Ratios(e)(f)
CET1 capital
9.11 %8.95 %9.86 %16(75)9.11 %9.86 %(75)
Tier 1 risk-based capital
10.38 %10.23 %11.28 %15(90)10.38 %11.28 %(90)
Total risk-based capital
12.61 %12.47 %13.94 %14(133)12.61 %13.94 %(133)
Leverage8.44 %8.30 %8.41 %1438.44 %8.41 %3
Additional Metrics
Banking centers1,0801,0801,100—(2%)1,0801,100(2%)
ATMs2,1462,1532,336—(8%)2,1462,336(8%)
Full-time equivalent employees19,18719,11919,171——%19,18719,171—%
Assets under care ($ in billions)(h)
$494$512$541(4%)(9%)$494$541(9%)
Assets under management ($ in billions)(h)
525461(4%)(15%)5261(15%)
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)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 dataFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20222022202220212021
Income Statement Data
Net interest income$1,498$1,339$1,195$1,197$1,189
Net interest income (FTE)(a)
1,5021,3421,1981,2001,192
Noninterest income672676684791836
Total revenue (FTE)(a)
2,1742,0181,8821,9912,028
Provision for (benefit from) credit losses15817945(47)(42)
Noninterest expense1,1671,1121,2221,2061,172
Net income653562494662704
Net income available to common shareholders631526474627684
Earnings Per Share Data
Net income allocated to common shareholders$631$525$473$625$683
Average common shares outstanding (in thousands):
Basic689,278689,019687,538688,370697,457
Diluted694,593694,805696,242697,532706,090
Earnings per share, basic$0.91$0.76$0.69$0.91$0.98
Earnings per share, diluted0.910.760.680.900.97
Common Share Data
Cash dividends per common share$0.33$0.30$0.30$0.30$0.30
Book value per share21.3024.5626.3329.4329.59
Market value per share31.9633.6043.0443.5542.44
Common shares outstanding (in thousands)686,343686,152685,905682,778689,790
Market capitalization$21,936$23,055$29,521$29,735$29,275
Financial Ratios
Return on average assets1.25 %1.09 %0.96 %1.25 %1.36 %
Return on average common equity14.9 %12.3 %10.0 %12.2 %13.0 %
Return on average tangible common equity(a)
21.9 %17.5 %13.4 %16.1 %16.9 %
Noninterest income as a percent of total revenue(a)
31 %33 %36 %40 %41 %
Dividend payout36.3 %39.5 %43.5 %33.0 %30.6 %
Average total Bancorp shareholders’ equity as a percent of average assets
9.13 %9.35 %10.23 %10.71 %11.16 %
Tangible common equity(a)
7.16 %7.01 %6.96 %6.94 %7.01 %
Net interest margin (FTE)(a)
3.22 %2.92 %2.59 %2.55 %2.59 %
Efficiency (FTE)(a)
53.7 %55.1 %64.9 %60.6 %57.8 %
Effective tax rate22.7 %22.4 %19.2 %20.1 %21.3 %
Credit Quality
Net losses charged-off$62$62$34$38$21
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.21 %0.21 %0.12 %0.14 %0.08 %
ALLL as a percent of portfolio loans and leases1.75 %1.70 %1.65 %1.69 %1.81 %
ACL as a percent of portfolio loans and leases(g)
1.91 %1.85 %1.80 %1.85 %2.00 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.46 %0.47 %0.49 %0.47 %0.52 %
Average Balances
Loans and leases, including held for sale$121,900$120,236$117,162$114,790$113,528
Securities and other short-term investments63,47864,17070,73272,25569,273
Assets206,688205,897209,150209,604205,449
Transaction deposits(b)
155,195160,035166,032164,673159,404
Core deposits(c)
157,243162,228168,408167,277162,341
Wholesale funding(d)
22,06515,78912,56813,27613,833
Bancorp shareholders’ equity
18,86419,24821,40222,44922,927
Regulatory Capital Ratios(e)(f)
CET1 capital
9.11 %8.95 %9.31 %9.54 %9.86 %
Tier 1 risk-based capital10.38 %10.23 %10.63 %10.91 %11.28 %
Total risk-based capital
12.61 %12.47 %12.93 %13.42 %13.94 %
Leverage8.44 %8.30 %8.32 %8.27 %8.41 %
Additional Metrics
Banking centers1,0801,0801,0791,1171,100
ATMs2,1462,1532,2012,3222,336
Full-time equivalent employees19,18719,11919,24719,11219,171
Assets under care ($ in billions)(h)
$494$512$549$554$541
Assets under management ($ in billions)(h)
5254616561
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)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% ChangeYear to Date% Change
(unaudited)SeptemberJuneSeptemberSeptemberSeptember
202220222021SeqYr/Yr20222021Yr/Yr
Interest Income
Interest and fees on loans and leases$1,315$1,081$1,01422%30%$3,377$3,07810%
Interest on securities41436926612%56%1,07780933%
Interest on other short-term investments311412121%158%5829100%
Total interest income1,7601,4641,29220%36%4,5123,91615%
Interest Expense
Interest on deposits1122512348%833%14748206%
Interest on federal funds purchased31—200%NM4—NM
Interest on other short-term borrowings4312—258%NM561NM
Interest on long-term debt104879120%14%273293(7%)
Total interest expense262125103110%154%48034240%
Net Interest Income1,4981,3391,18912%26%4,0323,57413%
Provision for (benefit from) credit losses158179(42)(12%)NM383(330)NM
Net Interest Income After Provision for (Benefit from) Credit Losses1,3401,1601,23116%9%3,6493,904(7%)
Noninterest Income
Service charges on deposits143154152(7%)(6%)4494451%
Commercial banking revenue134137152(2%)(12%)406465(13%)
Mortgage banking net revenue693186123%(20%)152235(35%)
Wealth and asset management revenue1411401471%(4%)430436(1%)
Card and processing revenue105105102—3%3062983%
Leasing business revenue6056787%(23%)179226(21%)
Other noninterest income5985120(31%)(51%)195211(8%)
Securities (losses) gains, net(38)(32)(1)19%NM(84)12NM
Securities losses, net - non-qualifying hedges on mortgage servicing rights(1)——NMNM(2)(2)—
Total noninterest income672676836(1%)(20%)2,0312,326(13%)
Noninterest Expense
Compensation and benefits6055846274%(4%)1,9001,971(4%)
Net occupancy expense747579(1%)(6%)225235(4%)
Technology and communications10698988%8%3062857%
Equipment expense363634—6%1081026%
Card and processing expense2120195%11%5970(16%)
Leasing business expense3331336%—95102(7%)
Marketing expense35282925%21%877221%
Other noninterest expense2572402537%2%7217042%
Total noninterest expense1,1671,1121,1725%—3,5013,541(1%)
Income Before Income Taxes84572489517%(6%)2,1792,689(19%)
Applicable income tax expense19216219119%1%470582(19%)
Net Income65356270416%(7%)1,7092,107(19%)
Dividends on preferred stock223620(39%)10%78754%
Net Income Available to Common Shareholders$631$526$68420%(8%)$1,631$2,032(20%)
16

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20222022202220212021
Interest Income
Interest and fees on loans and leases$1,315$1,081$983$1,000$1,014
Interest on securities414369294281266
Interest on other short-term investments3114121312
Total interest income1,7601,4641,2891,2941,292
Interest Expense
Interest on deposits11225111112
Interest on federal funds purchased31———
Interest on other short-term borrowings4312———
Interest on long-term debt10487838691
Total interest expense2621259497103
Net Interest Income1,4981,3391,1951,1971,189
Provision for (benefit from) credit losses15817945(47)(42)
Net Interest Income After Provision for (Benefit from) Credit Losses1,3401,1601,1501,2441,231
Noninterest Income
Service charges on deposits143154152156152
Commercial banking revenue134137135171152
Mortgage banking net revenue6931523586
Wealth and asset management revenue141140149150147
Card and processing revenue10510597104102
Leasing business revenue6056627478
Other noninterest income598552120120
Securities losses, net(38)(32)(14)(19)(1)
Securities losses, net - non-qualifying hedges on mortgage servicing rights(1)—(1)——
Total noninterest income672676684791836
Noninterest Expense
Compensation and benefits605584711655627
Net occupancy expense7475777779
Technology and communications1069810110398
Equipment expense3636363634
Card and processing expense2120191919
Leasing business expense3331323633
Marketing expense3528243529
Other noninterest expense257240222245253
Total noninterest expense1,1671,1121,2221,2061,172
Income Before Income Taxes845724612829895
Applicable income tax expense192162118167191
Net Income653562494662704
Dividends on preferred stock2236203520
Net Income Available to Common Shareholders$631$526$474$627$684
17

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of% Change
(unaudited)SeptemberJuneSeptember
202220222021SeqYr/Yr
Assets
Cash and due from banks$3,068$3,437$3,213(11%)(5%)
Other short-term investments6,5947,41934,203(11%)(81%)
Available-for-sale debt and other securities(a)
51,28952,83737,870(3%)35%
Held-to-maturity securities(b)
558—(38%)
Trading debt securities41429368541%(40%)
Equity securities315326329(3%)(4%)
Loans and leases held for sale1,9402,5425,203(24%)(63%)
Portfolio loans and leases:
  Commercial and industrial loans56,43756,09547,8341%18%
  Commercial mortgage loans10,94710,74810,3002%6%
  Commercial construction loans5,5735,3575,4564%2%
  Commercial leases2,8212,8503,130(1%)(10%)
Total commercial loans and leases75,77875,05066,7201%14%
  Residential mortgage loans17,60017,56616,158—9%
  Home equity4,0003,9064,2762%(6%)
  Indirect secured consumer loans16,64617,01716,004(2%)4%
  Credit card1,7701,7631,744—1%
  Other consumer loans4,2053,5213,00919%40%
Total consumer loans44,22143,77341,1911%7%
Portfolio loans and leases119,999118,823107,9111%11%
Allowance for loan and lease losses(2,099)(2,014)(1,954)4%7%
Portfolio loans and leases, net117,900116,809105,9571%11%
Bank premises and equipment2,1552,1182,1012%3%
Operating lease equipment6126006472%(5%)
Goodwill4,9254,9264,514—9%
Intangible assets181194169(7%)7%
Servicing rights1,7321,5829439%84%
Other assets14,33313,69411,8895%21%
Total Assets$205,463$206,782$207,731(1%)(1%)
Liabilities
Deposits:
  Demand $57,601$60,859$63,879(5%)(10%)
  Interest checking 46,98543,33845,9648%2%
  Savings 23,77123,74821,423—11%
  Money market 28,70728,79230,652—(6%)
  Foreign office 1851772025%(8%)
  CDs $250,000 or less2,0072,1252,691(6%)(25%)
  CDs over $250,0002,3962,13529712%707%
Total deposits161,652161,174165,108—(2%)
Federal funds purchased212711309(70%)(31%)
Other short-term borrowings6,3787,057949(10%)572%
Accrued taxes, interest and expenses1,5891,6832,083(6%)(24%)
Other liabilities7,1846,1975,33916%35%
Long-term debt11,71210,99011,4197%3%
Total Liabilities188,727187,812185,207—2%
Equity
Common stock(c)
2,0512,0512,051——
Preferred stock2,1162,1162,116——
Capital surplus3,6603,6363,6111%1%
Retained earnings21,21920,81819,8172%7%
Accumulated other comprehensive (loss) income(5,306)(2,644)1,637101%NM
Treasury stock(7,004)(7,007)(6,708)—4%
Total Equity16,73618,97022,524(12%)(26%)
Total Liabilities and Equity$205,463$206,782$207,731(1%)(1%)
(a) Amortized cost$57,372$56,140$36,3082%58%
(b) Market values5 5 8 —(38%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,000——
Outstanding, excluding treasury686,343686,152689,790——
Treasury237,549237,741234,102—1 %


18

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of
(unaudited)SeptemberJuneMarchDecemberSeptember
20222022202220212021
Assets
Cash and due from banks$3,068$3,437$3,049$2,994$3,213
Other short-term investments6,5947,41920,52934,57234,203
Available-for-sale debt and other securities(a)
51,28952,83748,83238,11037,870
Held-to-maturity securities(b)
55688
Trading debt securities414293324512685
Equity securities315326358376329
Loans and leases held for sale1,9402,5422,6164,4155,203
Portfolio loans and leases:
  Commercial and industrial loans56,43756,09553,90951,65947,834
  Commercial mortgage loans10,94710,74810,69410,31610,300
  Commercial construction loans5,5735,3575,4205,2415,456
  Commercial leases2,8212,8502,9153,0523,130
Total commercial loans and leases75,77875,05072,93870,26866,720
  Residential mortgage loans17,60017,56617,14416,39716,158
  Home equity4,0003,9063,9164,0844,276
  Indirect secured consumer loans16,64617,01717,42416,78316,004
  Credit card1,7701,7631,6901,7661,744
  Other consumer loans4,2053,5212,7532,7523,009
Total consumer loans44,22143,77342,92741,78241,191
Portfolio loans and leases119,999118,823115,865112,050107,911
Allowance for loan and lease losses(2,099)(2,014)(1,908)(1,892)(1,954)
Portfolio loans and leases, net117,900116,809113,957110,158105,957
Bank premises and equipment2,1552,1182,1022,1202,101
Operating lease equipment612600622616647
Goodwill4,9254,9264,5144,5144,514
Intangible assets181194145156169
Servicing rights1,7321,5821,4441,121943
Other assets14,33313,69412,96111,44411,889
Total Assets$205,463$206,782$211,459$211,116$207,731
Liabilities
Deposits:
  Demand $57,601$60,859$65,590$65,088$63,879
  Interest checking46,98543,33848,83648,87045,964
  Savings 23,77123,74823,62222,22721,423
  Money market 28,70728,79229,94730,26330,652
  Foreign office 185177115121202
CDs $250,000 or less2,0072,1252,2672,4862,691
CDs over $250,0002,3962,135234269297
Total deposits161,652161,174170,611169,324165,108
Federal funds purchased212711250281309
Other short-term borrowings6,3787,057872980949
Accrued taxes, interest and expenses1,5891,6831,4712,2332,083
Other liabilities7,1846,1977,2634,2675,339
Long-term debt11,71210,99010,81511,82111,419
Total Liabilities188,727187,812191,282188,906185,207
Equity
Common stock(c)
2,0512,0512,0512,0512,051
Preferred stock2,1162,1162,1162,1162,116
Capital surplus3,6603,6363,6153,6243,611
Retained earnings21,21920,81820,50120,23619,817
Accumulated other comprehensive (loss) income(5,306)(2,644)(1,096)1,2071,637
Treasury stock(7,004)(7,007)(7,010)(7,024)(6,708)
Total Equity16,73618,97020,17722,21022,524
Total Liabilities and Equity$205,463$206,782$211,459$211,116$207,731
(a) Amortized cost$57,372$56,140$50,171$36,941$36,308
(b) Market values55688
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,0002,000,0002,000,000
Outstanding, excluding treasury686,343686,152685,905682,778689,790
Treasury237,549237,741237,987241,115234,102
19

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months EndedYear to Date
SeptemberSeptemberSeptemberSeptember
2022202120222021
Total Equity, Beginning$18,970$22,926$22,210$23,111
Net income6537041,7092,107
Other comprehensive loss, net of tax:
Change in unrealized (losses) gains:
Available-for-sale debt securities(2,129)(282)(5,566)(741)
Qualifying cash flow hedges(533)(56)(949)(226)
Change in accumulated other comprehensive income related to employee benefit plans—123
Comprehensive (loss) income(2,009)367(4,804)1,143
Cash dividends declared:
Common stock(230)(210)(648)(597)
Preferred stock(22)(20)(78)(75)
Impact of stock transactions under stock compensation plans, net27115620
Shares acquired for treasury—(550)—(1,077)
Other———(1)
Total Equity, Ending$16,736$22,524$16,736$22,524
20

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisFor the Three Months Ended
$ in millionsSeptemberJuneSeptember
(unaudited)202220222021
AverageAverageAverageAverageAverageAverage
BalanceYield/RateBalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$56,6484.53 %$55,4663.59 %$47,7743.54 %
  Commercial mortgage loans(a)
10,7514.10 %10,7103.34 %10,3393.00 %
  Commercial construction loans(a)
5,5574.71 %5,3563.69 %5,7293.12 %
  Commercial leases(a)
2,7933.08 %2,8402.93 %3,1582.84 %
Total commercial loans and leases75,7494.42 %74,3723.54 %67,0003.39 %
  Residential mortgage loans19,8703.32 %19,8993.12 %21,7503.21 %
  Home equity3,9564.84 %3,8953.81 %4,4093.59 %
  Indirect secured consumer loans16,7503.34 %17,2413.17 %15,5903.27 %
  Credit card1,75612.89 %1,70412.29 %1,74812.38 %
  Other consumer loans3,8196.21 %3,1255.99 %3,0315.91 %
Total consumer loans46,1514.06 %45,8643.73 %46,5283.79 %
Total loans and leases121,9004.29 %120,2363.61 %113,5283.55 %
Securities:
Taxable securities56,5352.86 %53,4752.73 %36,1772.86 %
Tax exempt securities(a)
1,1782.77 %1,0632.47 %1,0312.22 %
Other short-term investments5,7652.15 %9,6320.60 %32,0650.15 %
Total interest-earning assets185,3783.78 %184,4063.19 %182,8012.81 %
Cash and due from banks3,1623,1183,114
Other assets20,16320,28221,566
Allowance for loan and lease losses(2,015)(1,909)(2,032)
Total Assets$206,688$205,897$205,449
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$42,5740.72 %$44,3490.15 %$45,1280.05 %
  Savings deposits23,8140.12 %23,7080.03 %20,9410.02 %
  Money market deposits29,0660.22 %29,2840.06 %30,5140.03 %
  Foreign office deposits2060.78 %1390.13 %1950.03 %
  CDs $250,000 or less2,0480.09 %2,1930.09 %2,9370.19 %
Total interest-bearing core deposits97,7080.41 %99,6730.09 %99,7150.04 %
  CDs over $250,0002,2261.90 %6621.08 %3061.10 %
  Federal funds purchased6072.10 %3920.82 %3480.13 %
  Securities sold under repurchase agreements4720.22 %4880.08 %5700.01 %
  FHLB advances6,6082.30 %2,7431.41 %—— 
  Derivative collateral and other secured borrowings3564.92 %3403.12 %5520.24 %
  Long-term debt11,7963.49 %11,1643.09 %12,0572.98 %
Total interest-bearing liabilities119,7730.87 %115,4620.43 %113,5480.36 %
Demand deposits59,53562,55562,626
Other liabilities8,5168,6326,348
Total Liabilities187,824186,649182,522
Total Equity18,86419,24822,927
Total Liabilities and Equity$206,688$205,897$205,449
Ratios:
  Net interest margin (FTE)(b)
3.22 %2.92 %2.59 %
  Net interest rate spread (FTE)(b)
2.91 %2.76 %2.45 %
  Interest-bearing liabilities to interest-earning assets64.61 %62.61 %62.12 %
(a) Average Yield/Rate of these assets are presented on an FTE basis.
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.









21

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisYear to Date
$ in millionsSeptemberSeptember
(unaudited)20222021
AverageAverageAverageAverage
BalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$54,9073.82 %$48,7613.59 %
  Commercial mortgage loans(a)
10,6643.49 %10,4463.06 %
  Commercial construction loans(a)
5,4293.91 %5,9363.14 %
  Commercial leases(a)
2,8582.95 %3,1542.98 %
Total commercial loans and leases73,8583.75 %68,2973.44 %
  Residential mortgage loans19,9813.20 %21,3163.28 %
  Home equity3,9534.06 %4,6953.59 %
  Indirect secured consumer loans17,0413.20 %14,7553.41 %
  Credit card1,71712.50 %1,79812.29 %
  Other consumer loans3,2346.10 %3,0295.99 %
Total consumer loans45,9263.83 %45,5933.89 %
Total loans and leases119,7843.78 %113,8903.62 %
Securities:
  Taxable securities50,5292.81 %36,0142.96 %
  Tax exempt securities(a)
1,0842.56 %7972.32 %
Other short-term investments14,4860.53 %32,7780.12 %
Total interest-earning assets185,8833.25 %183,4792.86 %
Cash and due from banks3,0813,046
Other assets20,21120,922
Allowance for loan and lease losses(1,939)(2,228)
Total Assets$207,236$205,219
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$45,1720.30 %$45,3330.06 %
  Savings deposits23,4350.06 %20,1360.02 %
  Money market deposits29,5330.10 %30,6530.04 %
  Foreign office deposits1570.39 %1550.04 %
  CDs $250,000 or less2,2050.10 %3,4200.34 %
Total interest-bearing core deposits100,5020.18 %99,6970.06 %
  CDs over $250,0001,0551.64 %6201.36 %
  Federal funds purchased4211.31 %3390.12 %
  Securities sold under repurchase agreements4840.10 %5990.02 %
  FHLB advances3,1412.04 %—— 
  Derivative collateral and other secured borrowings3652.70 %5430.31 %
  Long-term debt11,3763.21 %13,5852.88 %
Total interest-bearing liabilities117,3440.55 %115,3830.40 %
Demand deposits62,08461,084
Other liabilities7,9795,817
Total Liabilities187,407182,284
Total Equity19,82922,935
Total Liabilities and Equity$207,236$205,219
Ratios:
  Net interest margin (FTE)(b)
2.91 %2.61 %
  Net interest rate spread (FTE)(b)
2.70 %2.46 %
  Interest-bearing liabilities to interest-earning assets63.13 %62.89 %
(a) Average Yield/Rate of these assets are presented on an FTE basis.
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.

22

Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20222022202220212021
Average Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$56,646$55,460$52,554$49,566$47,766
  Commercial mortgage loans10,75110,71010,52110,24710,317
  Commercial construction loans5,5575,3565,3715,3295,728
  Commercial leases2,7922,8392,9423,0573,158
Total commercial loans and leases75,74674,36571,38868,19966,969
Consumer loans:
  Residential mortgage loans17,61717,36316,50116,18816,223
  Home equity3,9563,8954,0094,1794,409
  Indirect secured consumer loans16,75017,24117,13616,34515,590
  Credit card1,7561,7041,6911,7391,748
  Other consumer loans3,8193,1252,7422,8373,031
Total consumer loans43,89843,32842,07941,28841,001
Total average portfolio loans and leases$119,644$117,693$113,467$109,487$107,970
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$3$7$18$5$31
Consumer loans held for sale2,2532,5363,6775,2985,527
Average loans and leases held for sale$2,256$2,543$3,695$5,303$5,558
Average PPP loans(a)
$283$549$1,012$1,756$3,071
Average portfolio commercial and industrial loans - excluding PPP loans56,36354,91151,54247,81044,695
Total average portfolio commercial and industrial loans$56,646$55,460$52,554$49,566$47,766
End of Period Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$56,437$56,095$53,909$51,659$47,834
  Commercial mortgage loans10,94710,74810,69410,31610,300
  Commercial construction loans5,5735,3575,4205,2415,456
  Commercial leases2,8212,8502,9153,0523,130
Total commercial loans and leases75,77875,05072,93870,26866,720
Consumer loans:
  Residential mortgage loans17,60017,56617,14416,39716,158
  Home equity4,0003,9063,9164,0844,276
  Indirect secured consumer loans16,64617,01717,42416,78316,004
  Credit card1,7701,7631,6901,7661,744
  Other consumer loans4,2053,5212,7532,7523,009
Total consumer loans44,22143,77342,92741,78241,191
Total portfolio loans and leases$119,999$118,823$115,865$112,050$107,911
End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale$69$4$23$21$2
Consumer loans held for sale1,8712,5382,5934,3945,201
Loans and leases held for sale$1,940$2,542$2,616$4,415$5,203
Operating lease equipment$612$600$622$616$647
Loans and Leases Serviced for Others(b)
Commercial and industrial loans$1,067$994$993$923$879
Commercial mortgage loans630601592610620
Commercial construction loans421418502474487
Commercial leases567566571589555
Residential mortgage loans102,696100,51997,73689,23477,929
Other consumer loans————50
Total loans and leases serviced for others105,381103,098100,39491,83080,520
Total loans and leases owned or serviced$227,932$225,063$219,497$208,911$194,281
End of period PPP loans(a)
$210$371$737$1,305$2,344
End of period portfolio commercial and industrial loans - excluding PPP loans56,22755,72453,17250,35445,490
Total end of period portfolio commercial and industrial loans$56,437$56,095$53,909$51,659$47,834
(a)Paycheck Protection Program loans are included in commercial and industrial loans in the Condensed Consolidated Balance Sheets.
(b)Fifth Third sells certain loans and leases and obtains servicing responsibilities.
23

Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millionsAs of
(unaudited)SeptemberJuneMarchDecemberSeptember
2022(a)
2022202220212021
Regulatory Capital(b)
CET1 capital$15,266$14,827$14,937$14,781$14,673
Additional tier 1 capital2,1162,1162,1162,1162,116
Tier 1 capital17,38216,94317,05316,89716,789
Tier 2 capital3,7423,7133,6763,8923,953
Total regulatory capital$21,124$20,656$20,729$20,789$20,742
Risk-weighted assets
$167,501$165,659$160,352$154,860$148,827
Ratios
Average total Bancorp shareholders’ equity as a percent of average assets
9.13 %9.35 %10.23 %10.71 %11.16 %
Regulatory Capital Ratios(b)
Fifth Third Bancorp
CET1 capital
9.11 %8.95 %9.31 %9.54 %9.86 %
Tier 1 risk-based capital
10.38 %10.23 %10.63 %10.91 %11.28 %
Total risk-based capital
12.61 %12.47 %12.93 %13.42 %13.94 %
Leverage8.44 %8.30 %8.32 %8.27 %8.41 %
Fifth Third Bank, National Association
Tier 1 risk-based capital
10.92 %10.58 %10.85 %10.90 %11.25 %
Total risk-based capital
12.38 %12.01 %12.24 %12.33 %12.79 %
Leverage8.91 %8.61 %8.51 %8.29 %8.43 %
(a)Current period regulatory capital data and ratios are estimated.
(b)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
24

Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20222022202220212021
Average portfolio loans and leases:
  Commercial and industrial loans$56,646$55,460$52,554$49,566$47,766
  Commercial mortgage loans10,75110,71010,52110,24710,317
  Commercial construction loans5,5575,3565,3715,3295,728
  Commercial leases2,7922,8392,9423,0573,158
Total commercial loans and leases75,74674,36571,38868,19966,969
  Residential mortgage loans17,61717,36316,50116,18816,223
  Home equity3,9563,8954,0094,1794,409
  Indirect secured consumer loans16,75017,24117,13616,34515,590
  Credit card1,7561,7041,6911,7391,748
  Other consumer loans3,8193,1252,7422,8373,031
Total consumer loans43,89843,32842,07941,28841,001
Total average portfolio loans and leases$119,644$117,693$113,467$109,487$107,970
Losses charged-off:
  Commercial and industrial loans($46)($34)($11)($25)($10)
  Commercial mortgage loans———(1)—
  Commercial construction loans—(3)———
  Commercial leases(1)——(2)—
Total commercial loans and leases(47)(37)(11)(28)(10)
  Residential mortgage loans(1)—(1)—(1)
  Home equity(2)(3)(2)(2)(2)
  Indirect secured consumer loans(18)(14)(16)(13)(9)
  Credit card(15)(18)(17)(17)(17)
  Other consumer loans(21)(18)(17)(17)(17)
Total consumer loans(57)(53)(53)(49)(46)
Total losses charged-off($104)($90)($64)($77)($56)
Recoveries of losses previously charged-off:
  Commercial and industrial loans$12$1$2$11$5
  Commercial mortgage loans——1—1
  Commercial construction loans1————
  Commercial leases2————
Total commercial loans and leases1513116
  Residential mortgage loans21232
  Home equity33343
  Indirect secured consumer loans899710
  Credit card34445
  Other consumer loans11109109
Total consumer loans2727272829
Total recoveries of losses previously charged-off$42$28$30$39$35
Net losses charged-off:
  Commercial and industrial loans($34)($33)($9)($14)($5)
  Commercial mortgage loans——1(1)1
  Commercial construction loans1(3)———
  Commercial leases1——(2)—
Total commercial loans and leases(32)(36)(8)(17)(4)
  Residential mortgage loans11131
  Home equity1—121
  Indirect secured consumer loans(10)(5)(7)(6)1
  Credit card(12)(14)(13)(13)(12)
  Other consumer loans(10)(8)(8)(7)(8)
Total consumer loans(30)(26)(26)(21)(17)
Total net losses charged-off($62)($62)($34)($38)($21)
Net losses charged-off as a percent of average portfolio loans and leases (annualized):
  Commercial and industrial loans0.24 %0.24 %0.07 %0.11 %0.04 %
  Commercial mortgage loans(0.01 %)— (0.03 %)0.03 %(0.03 %)
  Commercial construction loans(0.08 %)0.23 %— (0.01 %)— 
  Commercial leases(0.12 %)(0.03 %)(0.02 %)0.24 %— 
Total commercial loans and leases0.17 %0.19 %0.05 %0.10 %0.03 %
  Residential mortgage loans(0.02 %)(0.02 %)(0.02 %)(0.06 %)(0.02 %)
  Home equity(0.08 %)(0.06 %)(0.07 %)(0.18 %)(0.13 %)
  Indirect secured consumer loans0.24 %0.13 %0.17 %0.14 %(0.02 %)
  Credit card2.69 %3.26 %3.13 %2.90 %2.70 %
  Other consumer loans1.10 %1.04 %1.07 %1.12 %1.05 %
Total consumer loans0.28 %0.24 %0.25 %0.21 %0.16 %
Total net losses charged-off as a percent of average portfolio loans and leases (annualized)0.21 %0.21 %0.12 %0.14 %0.08 %
25

Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20222022202220212021
Allowance for Credit Losses
Allowance for loan and lease losses, beginning$2,014$1,908$1,892$1,954$2,033
  Total net losses charged-off(62)(62)(34)(38)(21)
Provision for (benefit from) loan and lease losses14716850(24)(58)
Allowance for loan and lease losses, ending$2,099$2,014$1,908$1,892$1,954
Reserve for unfunded commitments, beginning$188$177$182$205$189
  Provision for (benefit from) the reserve for unfunded commitments1111(5)(23)16
Reserve for unfunded commitments, ending$199$188$177$182$205
Components of allowance for credit losses:
  Allowance for loan and lease losses$2,099$2,014$1,908$1,892$1,954
  Reserve for unfunded commitments199188177182205
Total allowance for credit losses$2,298$2,202$2,085$2,074$2,159
As of
SeptemberJuneMarchDecemberSeptember
20222022202220212021
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
  Commercial and industrial loans$111$89$105$116$172
  Commercial mortgage loans1012324243
  Commercial construction loans——66—
  Commercial leases22346
  Residential mortgage loans4949421013
  Home equity4345494748
  Indirect secured consumer loans45555
  Other consumer loans32111
Total nonaccrual portfolio loans and leases (excludes restructured loans)222204243231288
Nonaccrual restructured portfolio commercial loans175216177169128
Nonaccrual restructured portfolio consumer loans(c)
12511911498112
Total nonaccrual portfolio loans and leases522539534498528
Repossessed property66554
OREO1814272427
Total nonperforming portfolio loans and leases and OREO546559566527559
Nonaccrual loans held for sale———15—
Nonaccrual restructured loans held for sale——4—1
Total nonperforming assets$546$559$570$542$560
Loans and leases 90 days past due (accrual):
  Commercial and industrial loans$16$6$9$17$4
  Commercial mortgage loans——212
  Commercial construction loans———1—
  Commercial leases101——1
Total commercial loans and leases26711197
  Residential mortgage loans(c)
78147261
  Home equity12111
  Indirect secured consumer loans108998
  Credit card1413141514
  Other consumer loans11111
Total consumer loans3332399885
Total loans and leases 90 days past due (accrual)(b)
$59$39$50$117$92
Ratios
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.21 %0.21 %0.12 %0.14 %0.08 %
Allowance for credit losses:
As a percent of portfolio loans and leases1.91 %1.85 %1.80 %1.85 %2.00 %
   As a percent of nonperforming portfolio loans and leases(a)
440 %408 %391 %416 %409 %
   As a percent of nonperforming portfolio assets(a)
420 %394 %369 %394 %386 %
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases(a)
0.44 %0.45 %0.46 %0.44 %0.49 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
0.46 %0.47 %0.49 %0.47 %0.52 %
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property0.45 %0.46 %0.48 %0.47 %0.49 %
(a) Excludes nonaccrual loans held for sale.
(b) Excludes loans held for sale.
(c) Excludes government guaranteed residential mortgage loans.


26


Use of Non-GAAP Financial Measures
In addition to GAAP measures, management considers various non-GAAP measures when evaluating the performance of the business, including: “net interest income (FTE),” “interest income (FTE),” “net interest margin (FTE),” “net interest rate spread (FTE),” “income before income taxes (FTE),” “tangible net income available to common shareholders,” “average tangible common equity,” “return on average tangible common equity,” “tangible common equity (excluding AOCI),” “tangible common equity (including AOCI),” “tangible equity,” “tangible book value per share,” “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.
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Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ and shares in millionsAs of and For the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20222022202220212021
Net interest income$1,498$1,339$1,195$1,197$1,189
Add: Taxable equivalent adjustment43333
Net interest income (FTE) (a)1,5021,3421,1981,2001,192
Net interest income (annualized) (b)5,9435,3714,8464,7494,717
Net interest income (FTE) (annualized) (c)5,9595,3834,8594,7614,729
Interest income1,7601,4641,2891,2941,292
Add: Taxable equivalent adjustment43333
Interest income (FTE)1,7641,4671,2921,2971,295
Interest income (FTE) (annualized) (d)6,9985,8845,2405,1465,138
Interest expense (annualized) (e)1,039501381385409
Average interest-earning assets (f)185,378184,406187,894187,045182,801
Average interest-bearing liabilities (g)119,773115,462116,764115,725113,548
Net interest margin (b) / (f)3.21 %2.91 %2.58 %2.54 %2.58 %
Net interest margin (FTE) (c) / (f)3.22 %2.92 %2.59 %2.55 %2.59 %
Net interest rate spread (FTE) (d) / (f) - (e) / (g)2.91 %2.76 %2.46 %2.42 %2.45 %
Income before income taxes$845$724$612$829$895
Add: Taxable equivalent adjustment43333
Income before income taxes (FTE)849727615832898
Net income available to common shareholders631526474627684
Add: Intangible amortization, net of tax109999
Tangible net income available to common shareholders (h)641535483636693
Tangible net income available to common shareholders (annualized) (i)2,5432,1461,9592,5232,749
Average Bancorp shareholders’ equity
18,86419,24821,40222,44922,927
Less: Average preferred stock(2,116)(2,116)(2,116)(2,116)(2,116)
Average goodwill(4,926)(4,744)(4,514)(4,514)(4,430)
Average intangible assets(188)(158)(150)(162)(149)
Average tangible common equity, including AOCI (j)11,63412,23014,62215,65716,232
Less:Average AOCI3,0372,397(129)(1,382)(1,980)
Average tangible common equity, excluding AOCI (k)14,67114,62714,49314,27514,252
Total Bancorp shareholders’ equity
16,73618,97020,17722,21022,524
Less:Preferred stock(2,116)(2,116)(2,116)(2,116)(2,116)
Goodwill(4,925)(4,926)(4,514)(4,514)(4,514)
Intangible assets(181)(194)(145)(156)(169)
Tangible common equity, including AOCI (l)9,51411,73413,40215,42415,725
Less:AOCI5,3062,6441,096(1,207)(1,637)
Tangible common equity, excluding AOCI (m)14,82014,37814,49814,21714,088
Add:Preferred stock2,1162,1162,1162,1162,116
Tangible equity (n)16,93616,49416,61416,33316,204
Total assets205,463206,782211,459211,116207,731
Less:Goodwill(4,925)(4,926)(4,514)(4,514)(4,514)
Intangible assets(181)(194)(145)(156)(169)
Tangible assets, including AOCI (o)200,357201,662206,800206,446203,048
Less:AOCI, before tax6,7163,3471,387(1,528)(2,072)
Tangible assets, excluding AOCI (p)$207,073$205,009$208,187$204,918$200,976
Common shares outstanding (q)686686686683690
Tangible equity (n) / (p)8.18 %8.05 %7.98 %7.97 %8.06 %
Tangible common equity (excluding AOCI) (m) / (p)7.16 %7.01 %6.96 %6.94 %7.01 %
Tangible common equity (including AOCI) (l) / (o)4.75 %5.82 %6.48 %7.47 %7.74 %
Tangible book value per share (including AOCI) (l) / (q)$13.87$17.10$19.54$22.58$22.79
Tangible book value per share (excluding AOCI) (m) / (q)$21.60$20.96$21.13$20.82$20.42
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Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneSeptember
202220222021
Net income (r)$653$562$704
Net income (annualized) (s)2,5912,2542,793
Adjustments (pre-tax items)
Valuation of Visa total return swap171817
Fifth Third Foundation contribution——15
Net disposition charges/(gain)—6(60)
Adjustments, after-tax (t)(a)
1319(21)
Noninterest income (u)672676836
Valuation of Visa total return swap171817
Net disposition charges/(gain)—6(60)
Adjusted noninterest income (v)689700793
Noninterest expense (w)1,1671,1121,172
Fifth Third Foundation contribution——(15)
Adjusted noninterest expense (x)1,1671,1121,157
Adjusted net income (r) + (t)666581683
Adjusted net income (annualized) (y)2,6422,3302,710
Adjusted tangible net income available to common shareholders (h) + (t)654554672
Adjusted tangible net income available to common shareholders (annualized) (z)2,5952,2222,666
Average assets (aa)$206,688$205,897$205,449
Return on average tangible common equity (i) / (j)21.9 %17.5 %16.9 %
Return on average tangible common equity excluding AOCI (i) / (k)17.3 %14.7 %19.3 %
Adjusted return on average tangible common equity, including AOCI (z) / (j)22.3 %18.2 %16.4 %
Adjusted return on average tangible common equity, excluding AOCI (z) / (k)17.7 %15.2 %18.7 %
Return on average assets (s) / (aa)1.25 %1.09 %1.36 %
Adjusted return on average assets (y) / (aa)1.28 %1.13 %1.32 %
Efficiency ratio (FTE) (w) / [(a) + (u)]53.7 %55.1 %57.8 %
Adjusted efficiency ratio (x) / [(a) + (v)]53.3 %54.5 %58.3 %
Total revenue (FTE) (a) + (u)$2,174$2,018$2,028
Adjusted total revenue (FTE) (a) + (v)$2,191$2,042$1,985
Pre-provision net revenue (PPNR) (a) + (u) - (w)$1,007$906$856
Adjusted pre-provision net revenue (PPNR) (a) + (v) - (x)$1,024$930$828
Totals may not foot due to rounding; (a) Assumes a 23% tax rate

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Fifth Third Bancorp and Subsidiaries
Segment Presentation(b)
$ in millions
(unaudited)
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
For the three months ended December 31, 2021
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$415$438$24$323$1,200
Benefit from (provision for) credit losses117(24)—(46)47
Net interest income after benefit from (provision for) credit losses532414242771,247
Noninterest income3842581454791
Noninterest expense(459)(600)(139)(8)(1,206)
Income before income taxes4577230273832
Applicable income tax expense(a)
(89)(14)(7)(60)(170)
Net income$368$58$23$213$662
For the three months ended September 30, 2021
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$396$429$22$345$1,192
Benefit from (provision for) credit losses250(19)—(189)42
Net interest income after benefit from (provision for) credit losses646410221561,234
Noninterest income37430114318836
Noninterest expense(434)(593)(134)(11)(1,172)
Income before income taxes58611831163898
Applicable income tax expense(a)
(116)(25)(7)(46)(194)
Net income$470$93$24$117$704
(a) Includes taxable equivalent adjustments of $4 million for the three months ended September 30, 2022 and $3 million for the three months ended, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021.
(b) Effective September 30, 2022, the Bancorp reorganized its reportable segments. Prior period results have been adjusted to conform to the new segment presentation. The Commercial Banking segment provides services to large and middle-market businesses and government and professional customers. The Consumer and Small Business Banking segment provides services to individuals and small businesses through a network of full-service banking centers and relationships with indirect and correspondent loan originators. The Wealth and Asset Management segment provides a full range of wealth management services for individuals, companies and not-for-profit organizations.
30