- 2Q14 net income available to common shareholders of $416 million, or $0.49 per diluted common share
- 2Q14 return on average assets (ROA) of 1.34%; return on average common equity of 11.9%; return on average tangible common equity** of 14.4%
- Pre-provision net revenue (PPNR)** of $682 million in 2Q14
- Net interest income (FTE) of $905 million, up 1% sequentially and up 2% from 2Q13; net interest margin of 3.15%, down 7 basis points sequentially
- Average portfolio loans of $90.5 billion, up $1.0 billion, or 1 percent, sequentially and up $3.8 billion, or 4 percent, from 2Q13
- Noninterest income of $736 million compared with $564 million in prior quarter, primarily driven by the $125 million gain on the sale of Vantiv shares and a $63 million positive valuation on the Vantiv warrant
- Noninterest expense of $954 million compared with $950 million in the prior quarter driven by increased litigation reserve charges partially offset by lower benefits expense
- Solid credit trends
- 2Q14 net charge-offs of $101 million (0.45% of loans and leases) vs. 1Q14 NCOs of $168 million (0.76% of loans and leases) and 2Q13 NCOs of $112 million (0.51% of loans and leases)
- 2Q14 provision expense of $76 million vs. $69 million in 1Q14 and $64 million in 2Q13
- Allowance for loan and lease losses decreased $25 million sequentially; allowance to loan ratio of 1.61%
- Total nonperforming assets (NPAs) of $837 million, including loans held-for-sale (HFS), declined $112 million, or 12%, sequentially; portfolio NPA ratio of 0.92% down 13 bps from 1Q14, NPL ratio of 0.70% down 12 bps from 1Q14
- Strong capital ratios*
- Tier 1 common ratio** 9.61%, vs. 9.51% in 1Q14 (Basel III pro forma estimate of ~9.3%)
- Tier 1 risk-based capital ratio 10.80%, Total risk-based capital ratio 14.30%, Leverage ratio 9.86%
- Tangible common equity ratio** of 9.00%; 8.74% excluding securities portfolio unrealized gains/losses
- Book value per share of $16.74; tangible book value per share** of $13.86; up 3% from 1Q14 and up 9% from 2Q13
- Repurchased 6 million common shares in 2Q14; incremental impact from 1Q14 and 2Q14 transactions reduced average diluted share count by 9 million in 2Q14
* Capital ratios estimated; presented under current U.S. capital regulations. The pro forma Basel III Tier I common equity ratio is management’s estimate based upon its current interpretation of recent prospective regulatory capital requirements approved in July 2013. See “Capital Position” section for more information.
** Non-GAAP measure; see Reg. G reconciliation on page 33 in Exhibit 99.1 of 8-k filing dated 7/17/14.
Fifth Third Bancorp (Nasdaq: FITB) today reported second quarter 2014
net income of $439 million versus net income of $318 million in the
first quarter of 2014 and $591 million in the second quarter of 2013.
After preferred dividends, net income available to common shareholders
was $416 million, or $0.49 per diluted share, in the second quarter of
2014, compared with $309 million, or $0.36 per diluted share, in the
first quarter of 2014, and $582 million, or $0.65 per diluted share, in
the second quarter of 2013.
Second quarter 2014 included:
Income
-
$125 million gain on the sale of Vantiv shares
-
$63 million positive valuation adjustment on the Vantiv warrant
-
($17 million) negative valuation adjustments for land upon which the
Bancorp no longer expects to build branches
-
($16 million) charge related to the valuation of the total return swap
entered into as part of the 2009 sale of Visa, Inc. Class B shares
-
($12 million) negative impact to equity method income from the
Bancorp’s interest in Vantiv related to certain charges recognized by
Vantiv as a result of their acquisition of Mercury Payment Systems
Expenses
-
($61 million) in litigation reserve charges
Results also included an immaterial amount in mortgage repurchase
provision.
First quarter 2014 included:
Income
-
($36 million) negative valuation adjustment on the Vantiv warrant
-
$1 million benefit related to the valuation of the total return swap
entered into as part of the 2009 sale of Visa, Inc. Class B shares
Expenses
-
($51 million) in litigation reserve charges
Results also included the impact of $3 million in mortgage repurchase
provision.
Second quarter 2013 included:
Income
-
$242 million gain on the sale of Vantiv shares
-
$76 million positive valuation adjustment on the Vantiv warrant
-
$10 million pre-tax benefit resulting from a settlement related to the
previously surrendered bank-owned life insurance (BOLI) policy
-
($5 million) charge related to the valuation of the total return swap
entered into as part of the 2009 sale of Visa, Inc. Class B shares
Expenses
-
($51 million) in charges to increase litigation reserves
Results also included the impact of $20 million in mortgage repurchase
provision.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
Seq
|
|
Yr/Yr
|
|
Earnings ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Bancorp
|
|
|
|
|
$
|
439
|
|
|
$
|
318
|
|
|
$
|
402
|
|
|
$
|
421
|
|
|
$
|
591
|
|
|
|
38
|
%
|
|
(26
|
%)
|
|
Net income available to common shareholders
|
|
|
|
|
$
|
416
|
|
|
$
|
309
|
|
|
$
|
383
|
|
|
$
|
421
|
|
|
$
|
582
|
|
|
|
35
|
%
|
|
(29
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic
|
|
|
|
|
|
0.49
|
|
|
|
0.36
|
|
|
|
0.44
|
|
|
|
0.47
|
|
|
|
0.67
|
|
|
|
36
|
%
|
|
(27
|
%)
|
|
Earnings per share, diluted
|
|
|
|
|
|
0.49
|
|
|
|
0.36
|
|
|
|
0.43
|
|
|
|
0.47
|
|
|
|
0.65
|
|
|
|
36
|
%
|
|
(25
|
%)
|
|
Cash dividends per common share
|
|
|
|
|
|
0.13
|
|
|
|
0.12
|
|
|
|
0.12
|
|
|
|
0.12
|
|
|
|
0.12
|
|
|
|
8
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
|
|
|
1.34
|
%
|
|
|
1.00
|
%
|
|
|
1.24
|
%
|
|
|
1.35
|
%
|
|
|
1.94
|
%
|
|
|
34
|
%
|
|
(31
|
%)
|
|
Return on average common equity
|
|
|
|
|
|
11.9
|
|
|
|
9.0
|
|
|
|
10.8
|
|
|
|
12.1
|
|
|
|
17.3
|
|
|
|
31
|
%
|
|
(31
|
%)
|
|
Return on average tangible common equity(b)
|
|
|
|
|
|
14.4
|
|
|
|
11.0
|
|
|
|
13.1
|
|
|
|
14.7
|
|
|
|
21.1
|
|
|
|
31
|
%
|
|
(32
|
%)
|
|
Tier I risk-based capital
|
|
|
|
|
|
10.80
|
|
|
|
10.45
|
|
|
|
10.43
|
|
|
|
11.21
|
|
|
|
11.14
|
|
|
|
3
|
%
|
|
(3
|
%)
|
|
Tier I common equity(b)
|
|
|
|
|
|
9.61
|
|
|
|
9.51
|
|
|
|
9.45
|
|
|
|
9.95
|
|
|
|
9.49
|
|
|
|
1
|
%
|
|
1
|
%
|
|
Net interest margin(a)
|
|
|
|
|
|
3.15
|
|
|
|
3.22
|
|
|
|
3.21
|
|
|
|
3.31
|
|
|
|
3.33
|
|
|
|
(2
|
%)
|
|
(5
|
%)
|
|
Efficiency(a)
|
|
|
|
|
|
58.2
|
|
|
|
64.9
|
|
|
|
61.5
|
|
|
|
59.2
|
|
|
|
53.2
|
|
|
|
(10
|
%)
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in thousands)
|
|
|
|
|
|
844,489
|
|
|
|
847,569
|
|
|
|
855,306
|
|
|
|
887,030
|
|
|
|
851,474
|
|
|
|
-
|
|
|
(1
|
%)
|
|
Average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
838,492
|
|
|
|
845,860
|
|
|
|
868,077
|
|
|
|
880,183
|
|
|
|
858,583
|
|
|
|
(1
|
%)
|
|
(2
|
%)
|
|
Diluted
|
|
|
|
|
|
848,245
|
|
|
|
857,924
|
|
|
|
877,511
|
|
|
|
888,111
|
|
|
|
900,625
|
|
|
|
(1
|
%)
|
|
(6
|
%)
|
|
(a)
|
|
Presented on a fully taxable equivalent basis.
|
|
(b)
|
|
The tangible common equity and tier 1 common equity ratios,
while not required by accounting principles generally accepted in
the United States of America (U.S. GAAP), are considered to be
critical metrics with which to analyze banks. The ratios have been
included herein to facilitate a greater understanding of the
Bancorp's capital structure and financial condition. See the
Regulation G Non-GAAP Reconciliation table for a reconciliation of
these ratios to U.S. GAAP.
|
|
The percentages in all of the tables in this earning release are
calculated on actual dollar amounts and not the rounded dollar
amounts.
|
|
NM: Not meaningful.
|
|
|
“Second quarter results reflected our continued focus on revenue
generation and core expense management, which contributed to return on
average assets of 1.34 percent and return on average tangible common
equity* of 14.4 percent,” said Kevin Kabat, CEO of Fifth Third Bancorp.
“During the quarter, we also continued to monetize our ownership
position in Vantiv by selling 6 million shares that contributed $125
million in pre-tax earnings. Vantiv continues to be an important
investment for us and we still own 22.8 percent of the company and
remain their largest shareholder.
“Balance sheet growth in the quarter reflected the strategic investments
we have made in our businesses as well as increased investment
securities balances. We continued to see solid growth in our commercial
business, particularly in C&I lending, which was up 10 percent compared
with last year and commercial core deposits, which were up 16 percent
compared with the prior year. Overall, core deposits were up 9 percent
over last year.
“Fee income results for the quarter demonstrated solid core operating
trends and sequential growth was highlighted by card and processing
revenue, up 11 percent, and service charges on deposits, up 5 percent.
Credit results improved in the quarter including net charge-offs of 45
basis points of loans. Our nonperforming asset ratio was 92 basis points
and was below 100 basis points for the first time since the third
quarter of 2007.
“During the quarter, we increased our quarterly common stock dividend 8
percent to $0.13 and entered into an agreement to repurchase $150
million of common shares, which represented the first quarter of share
repurchases under our 2014 CCAR plan. We continue to maintain strong
capital ratios as our Tier I common equity ratio* was 9.6 percent, and
9.3 percent as estimated pro forma under the Basel III rules.”
* Non-GAAP measure; see Reg. G reconciliation on page 33 in Exhibit
99.1 of 8-k filing dated 7/17/14.
|
Income Statement Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
Seq
|
|
Yr/Yr
|
|
Condensed Statements of Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (taxable equivalent)
|
|
|
|
|
$
|
905
|
|
$
|
898
|
|
$
|
905
|
|
$
|
898
|
|
$
|
885
|
|
|
1
|
%
|
|
2
|
%
|
|
Provision for loan and lease losses
|
|
|
|
|
|
76
|
|
|
69
|
|
|
53
|
|
|
51
|
|
|
64
|
|
|
10
|
%
|
|
20
|
%
|
|
Total noninterest income
|
|
|
|
|
|
736
|
|
|
564
|
|
|
703
|
|
|
721
|
|
|
1,060
|
|
|
31
|
%
|
|
(31
|
%)
|
|
Total noninterest expense
|
|
|
|
|
|
954
|
|
|
950
|
|
|
989
|
|
|
959
|
|
|
1,035
|
|
|
-
|
|
|
(8
|
%)
|
|
Income before income taxes (taxable equivalent)
|
|
|
|
|
|
611
|
|
|
443
|
|
|
566
|
|
|
609
|
|
|
846
|
|
|
38
|
%
|
|
(28
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent adjustment
|
|
|
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
(11
|
%)
|
|
(3
|
%)
|
|
Applicable income taxes
|
|
|
|
|
|
167
|
|
|
119
|
|
|
159
|
|
|
183
|
|
|
250
|
|
|
40
|
%
|
|
(33
|
%)
|
|
Net income
|
|
|
|
|
|
439
|
|
|
319
|
|
|
402
|
|
|
421
|
|
|
591
|
|
|
38
|
%
|
|
(26
|
%)
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(60
|
%)
|
|
24
|
%
|
|
Net income attributable to Bancorp
|
|
|
|
|
|
439
|
|
|
318
|
|
|
402
|
|
|
421
|
|
|
591
|
|
|
38
|
%
|
|
(26
|
%)
|
|
Dividends on preferred stock
|
|
|
|
|
|
23
|
|
|
9
|
|
|
19
|
|
|
-
|
|
|
9
|
|
|
NM
|
|
NM
|
|
Net income available to common shareholders
|
|
|
|
|
|
416
|
|
|
309
|
|
|
383
|
|
|
421
|
|
|
582
|
|
|
35
|
%
|
|
(29
|
%)
|
|
Earnings per share, diluted
|
|
|
|
|
$
|
0.49
|
|
$
|
0.36
|
|
$
|
0.43
|
|
$
|
0.47
|
|
$
|
0.65
|
|
|
36
|
%
|
|
(25
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
Seq
|
|
Yr/Yr
|
|
Interest Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income (taxable equivalent)
|
|
|
|
|
$
|
1,013
|
|
|
$
|
998
|
|
|
$
|
1,007
|
|
|
$
|
997
|
|
|
$
|
989
|
|
|
|
1
|
%
|
|
2
|
%
|
|
Total interest expense
|
|
|
|
|
|
108
|
|
|
|
100
|
|
|
|
102
|
|
|
|
99
|
|
|
|
104
|
|
|
|
8
|
%
|
|
4
|
%
|
|
Net interest income (taxable equivalent)
|
|
|
|
|
$
|
905
|
|
|
$
|
898
|
|
|
$
|
905
|
|
|
$
|
898
|
|
|
$
|
885
|
|
|
|
1
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on interest-earning assets (taxable equivalent)
|
|
|
|
|
|
3.53
|
%
|
|
|
3.58
|
%
|
|
|
3.57
|
%
|
|
|
3.68
|
%
|
|
|
3.73
|
%
|
|
|
(1
|
%)
|
|
(6
|
%)
|
|
Rate paid on interest-bearing liabilities
|
|
|
|
|
|
0.54
|
%
|
|
|
0.51
|
%
|
|
|
0.52
|
%
|
|
|
0.54
|
%
|
|
|
0.57
|
%
|
|
|
5
|
%
|
|
(6
|
%)
|
|
Net interest rate spread (taxable equivalent)
|
|
|
|
|
|
2.99
|
%
|
|
|
3.07
|
%
|
|
|
3.05
|
%
|
|
|
3.14
|
%
|
|
|
3.16
|
%
|
|
|
(2
|
%)
|
|
(5
|
%)
|
|
Net interest margin (taxable equivalent)
|
|
|
|
|
|
3.15
|
%
|
|
|
3.22
|
%
|
|
|
3.21
|
%
|
|
|
3.31
|
%
|
|
|
3.33
|
%
|
|
|
(2
|
%)
|
|
(5
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including held for sale
|
|
|
|
|
$
|
91,241
|
|
|
$
|
90,238
|
|
|
$
|
88,865
|
|
|
$
|
89,154
|
|
|
$
|
89,473
|
|
|
|
1
|
%
|
|
2
|
%
|
|
Total securities and other short-term investments
|
|
|
|
|
|
23,940
|
|
|
|
22,940
|
|
|
|
23,043
|
|
|
|
18,528
|
|
|
|
16,962
|
|
|
|
4
|
%
|
|
41
|
%
|
|
Total interest-earning assets
|
|
|
|
|
|
115,181
|
|
|
|
113,178
|
|
|
|
111,908
|
|
|
|
107,682
|
|
|
|
106,435
|
|
|
|
2
|
%
|
|
8
|
%
|
|
Total interest-bearing liabilities
|
|
|
|
|
|
80,770
|
|
|
|
79,130
|
|
|
|
77,573
|
|
|
|
73,190
|
|
|
|
73,363
|
|
|
|
2
|
%
|
|
10
|
%
|
|
Bancorp shareholders' equity
|
|
|
|
|
|
15,157
|
|
|
|
14,862
|
|
|
|
14,757
|
|
|
|
14,440
|
|
|
|
14,221
|
|
|
|
2
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income of $905 million on a fully taxable equivalent basis
increased $7 million from the first quarter driven by interest-earning
asset growth and an additional day in the second quarter. These benefits
were partially offset by the effects of loan repricing and higher
interest expense associated with debt issuances in the first half of
2014.
The net interest margin was 3.15 percent, a decrease of 7 bps from the
previous quarter primarily due to the effects of loan repricing and debt
issuances partially offset by higher yields on investment securities.
Additionally, day count negatively impacted the net interest margin by 2
bps.
Compared with the second quarter of 2013, net interest income increased
$20 million and the net interest margin decreased 18 bps. The increase
in net interest income was driven by higher balances and yields on
investment securities as well as higher loan balances partially offset
by the effect of loan repricing. The decline in the net interest margin
was primarily driven by the impact of loan repricing.
Securities
Average securities and other short-term investments were $23.9 billion
in the second quarter of 2014 compared with $22.9 billion in the
previous quarter and $17.0 billion in the second quarter of 2013.
Average securities of $21.8 billion increased $1.3 billion from the
prior quarter due to net additions of approximately $2.1 billion of
securities in the second quarter of 2014 primarily reflecting purchases
of securities with favorable treatment under the proposed LCR standards.
Other short-term investments average balances of $2.2 billion decreased
$327 million sequentially.
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
Seq
|
|
Yr/Yr
|
|
Average Portfolio Loans and Leases ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
|
|
|
$
|
41,374
|
|
$
|
40,377
|
|
$
|
38,835
|
|
$
|
38,133
|
|
$
|
37,630
|
|
|
2
|
%
|
|
10
|
%
|
|
Commercial mortgage loans
|
|
|
|
|
|
7,885
|
|
|
7,981
|
|
|
8,047
|
|
|
8,273
|
|
|
8,618
|
|
|
(1
|
%)
|
|
(8
|
%)
|
|
Commercial construction loans
|
|
|
|
|
|
1,362
|
|
|
1,116
|
|
|
952
|
|
|
793
|
|
|
713
|
|
|
22
|
%
|
|
91
|
%
|
|
Commercial leases
|
|
|
|
|
|
3,555
|
|
|
3,607
|
|
|
3,578
|
|
|
3,572
|
|
|
3,552
|
|
|
(1
|
%)
|
|
-
|
|
|
Subtotal - commercial loans and leases
|
|
|
|
|
|
54,176
|
|
|
53,081
|
|
|
51,412
|
|
|
50,771
|
|
|
50,513
|
|
|
2
|
%
|
|
7
|
%
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
|
|
|
|
12,611
|
|
|
12,659
|
|
|
12,609
|
|
|
12,486
|
|
|
12,260
|
|
|
-
|
|
|
3
|
%
|
|
Home equity
|
|
|
|
|
|
9,101
|
|
|
9,194
|
|
|
9,296
|
|
|
9,432
|
|
|
9,625
|
|
|
(1
|
%)
|
|
(5
|
%)
|
|
Automobile loans
|
|
|
|
|
|
12,070
|
|
|
12,023
|
|
|
12,019
|
|
|
12,083
|
|
|
11,887
|
|
|
-
|
|
|
2
|
%
|
|
Credit card
|
|
|
|
|
|
2,232
|
|
|
2,230
|
|
|
2,202
|
|
|
2,140
|
|
|
2,071
|
|
|
-
|
|
|
8
|
%
|
|
Other consumer loans and leases
|
|
|
|
|
|
359
|
|
|
343
|
|
|
357
|
|
|
360
|
|
|
351
|
|
|
5
|
%
|
|
2
|
%
|
|
Subtotal - consumer loans and leases
|
|
|
|
|
|
36,373
|
|
|
36,449
|
|
|
36,483
|
|
|
36,501
|
|
|
36,194
|
|
|
-
|
|
|
-
|
|
|
Total average loans and leases (excluding held for sale)
|
|
|
|
|
$
|
90,549
|
|
$
|
89,530
|
|
$
|
87,895
|
|
$
|
87,272
|
|
$
|
86,707
|
|
|
1
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans held for sale
|
|
|
|
|
|
692
|
|
|
708
|
|
|
970
|
|
|
1,882
|
|
|
2,766
|
|
|
(2
|
%)
|
|
(75
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loan and lease balances (excluding loans held-for-sale)
increased $1.0 billion, or 1 percent, sequentially and increased $3.8
billion, or 4 percent, from the second quarter of 2013. The sequential
increase in average loans and leases was primarily driven by growth in
the commercial and industrial (C&I) and commercial construction loans.
Sequential growth was partially offset primarily by declines in
commercial mortgage and home equity loans. Period end loans and leases
(excluding loans held-for-sale) of $90.5 billion increased $779 million,
or 1 percent, sequentially and $3.5 billion, or 4 percent, from a year
ago.
Average commercial portfolio loan and lease balances increased $1.1
billion, or 2 percent, sequentially and increased $3.7 billion, or 7
percent, from the second quarter of 2013. The increase was largely
driven by growth in average C&I loans of $997 million from the prior
quarter and $3.7 billion from the second quarter of 2013. Within
commercial real estate, average commercial mortgage balances continued
to decline and average commercial construction balances increased for
the sixth consecutive quarter. Commercial line usage, on an end of
period basis, was 32 percent of committed lines in the second quarter of
2014 compared with 30 percent in the first quarter of 2014 and 31
percent in the second quarter of 2013.
Average consumer portfolio loan and lease balances were flat
sequentially and year-over-year. Average residential mortgage loans were
flat sequentially and increased 3 percent from a year ago. On a
sequential basis, average home equity loans declined 1 percent while
average credit card loans and automobile loans were flat. Compared with
the second quarter of 2013, average home equity loans declined 5 percent
while average credit card loans increased 8 percent and automobile loans
increased 2 percent.
Average loans held-for-sale balances of $692 million decreased $16
million sequentially and $2.1 billion compared with the second quarter
of 2013. Period end loans held-for-sale of $682 million decreased $98
million from the previous quarter and $1.5 billion from the second
quarter of 2013 reflecting lower residential mortgage held-for-sale
balances.
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
Seq
|
|
Yr/Yr
|
|
Average Deposits ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
|
|
|
$
|
31,275
|
|
$
|
30,626
|
|
$
|
30,765
|
|
$
|
30,655
|
|
$
|
29,682
|
|
|
2
|
%
|
|
5
|
%
|
|
Interest checking
|
|
|
|
|
|
25,222
|
|
|
25,911
|
|
|
24,650
|
|
|
23,116
|
|
|
22,796
|
|
|
(3
|
%)
|
|
11
|
%
|
|
Savings
|
|
|
|
|
|
16,509
|
|
|
16,903
|
|
|
17,323
|
|
|
18,026
|
|
|
18,864
|
|
|
(2
|
%)
|
|
(12
|
%)
|
|
Money market
|
|
|
|
|
|
13,942
|
|
|
12,439
|
|
|
11,285
|
|
|
9,693
|
|
|
8,918
|
|
|
12
|
%
|
|
56
|
%
|
|
Foreign office(a)
|
|
|
|
|
|
2,200
|
|
|
2,017
|
|
|
1,717
|
|
|
1,755
|
|
|
1,418
|
|
|
9
|
%
|
|
55
|
%
|
|
Subtotal - Transaction deposits
|
|
|
|
|
|
89,148
|
|
|
87,896
|
|
|
85,740
|
|
|
83,245
|
|
|
81,678
|
|
|
1
|
%
|
|
9
|
%
|
|
Other time
|
|
|
|
|
|
3,693
|
|
|
3,616
|
|
|
3,529
|
|
|
3,676
|
|
|
3,859
|
|
|
2
|
%
|
|
(4
|
%)
|
|
Subtotal - Core deposits
|
|
|
|
|
|
92,841
|
|
|
91,512
|
|
|
89,269
|
|
|
86,921
|
|
|
85,537
|
|
|
1
|
%
|
|
9
|
%
|
|
Certificates - $100,000 and over
|
|
|
|
|
|
3,840
|
|
|
5,576
|
|
|
7,456
|
|
|
7,315
|
|
|
6,519
|
|
|
(31
|
%)
|
|
(41
|
%)
|
|
Other
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
17
|
|
|
10
|
|
|
NM
|
|
NM
|
|
Total deposits
|
|
|
|
|
$
|
96,681
|
|
$
|
97,088
|
|
$
|
96,725
|
|
$
|
94,253
|
|
$
|
92,066
|
|
|
-
|
|
|
5
|
%
|
|
(a)
|
|
Includes commercial customer Eurodollar sweep balances for which
the Bancorp pays rates comparable to other commercial deposit
accounts.
|
|
|
|
|
Average core deposits increased $1.3 billion, or 1 percent, sequentially
and increased $7.3 billion, or 9 percent, from the second quarter of
2013. Average transaction deposits increased $1.3 billion, or 1 percent,
from the first quarter of 2014 primarily driven by higher money market
account and demand deposit balances, partially offset by lower interest
checking and savings balances. Year-over-year transaction deposits
increased $7.5 billion, or 9 percent, driven by higher money market
account, interest checking, and demand deposit balances, partially
offset by lower savings balances. Other time deposits increased 2
percent sequentially and decreased 4 percent compared with the second
quarter of 2013.
Commercial average transaction deposits were flat sequentially and
increased 16 percent from the previous year. Sequential performance
reflected higher demand deposit, foreign office, and savings balances,
offset by lower interest checking and money market account balances and
year-over-year growth reflected higher demand deposit, interest
checking, money market account, and foreign office balances due to
customers holding higher balances.
Consumer average transaction deposits increased 2 percent sequentially
and 4 percent from the second quarter of 2013. The sequential increase
reflected higher money market account and demand deposit balances
partially offset by lower savings and interest checking balances.
Year-over-year growth was driven by increased money market account and
interest checking balances partially offset by lower savings and demand
deposit balances.
|
Wholesale Funding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
Seq
|
|
Yr/Yr
|
|
Average Wholesale Funding ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates - $100,000 and over
|
|
|
|
|
$
|
3,840
|
|
$
|
5,576
|
|
$
|
7,456
|
|
$
|
7,315
|
|
$
|
6,519
|
|
|
(31
|
%)
|
|
(41
|
%)
|
|
Other deposits
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
17
|
|
|
10
|
|
|
NM
|
|
NM
|
|
Federal funds purchased
|
|
|
|
|
|
606
|
|
|
547
|
|
|
301
|
|
|
464
|
|
|
560
|
|
|
11
|
%
|
|
8
|
%
|
|
Other short-term borrowings
|
|
|
|
|
|
2,234
|
|
|
1,808
|
|
|
2,177
|
|
|
1,675
|
|
|
2,867
|
|
|
24
|
%
|
|
(22
|
%)
|
|
Long-term debt
|
|
|
|
|
|
12,524
|
|
|
10,313
|
|
|
9,135
|
|
|
7,453
|
|
|
7,552
|
|
|
21
|
%
|
|
66
|
%
|
|
Total wholesale funding
|
|
|
|
|
$
|
19,204
|
|
$
|
18,244
|
|
$
|
19,069
|
|
$
|
16,924
|
|
$
|
17,508
|
|
|
5
|
%
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average wholesale funding of $19.2 billion increased $960 million, or 5
percent, sequentially and $1.7 billion, or 10 percent, compared with the
second quarter of 2013. The sequential increase was driven by an
increase in long-term debt, partially offset by a decrease in
certificates $100,000 and over. Average other short-term borrowings
increased $426 million from the prior quarter primarily due to an
increase in FHLB borrowings. The year-over-year increase reflected an
increase in long-term debt, partially offset by a decrease in
certificates $100,000 and over and other short-term borrowings. Average
long-term debt balances reflected the issuance of $1.5 billion of bank
senior debt in the second quarter of 2014, as well as the full quarter
impact of $500 million in Bancorp senior debt issued in the first
quarter of 2014. On June 11, 2014, Fifth Third completed a $1.5 billion
auto securitization, which did not significantly impact average balances
due to timing.
|
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits
|
|
|
|
|
$
|
139
|
|
$
|
133
|
|
$
|
142
|
|
$
|
140
|
|
$
|
136
|
|
|
5
|
%
|
|
2
|
%
|
|
Corporate banking revenue
|
|
|
|
|
|
107
|
|
|
104
|
|
|
94
|
|
|
102
|
|
|
106
|
|
|
3
|
%
|
|
1
|
%
|
|
Mortgage banking net revenue
|
|
|
|
|
|
78
|
|
|
109
|
|
|
126
|
|
|
121
|
|
|
233
|
|
|
(29
|
%)
|
|
(67
|
%)
|
|
Investment advisory revenue
|
|
|
|
|
|
102
|
|
|
102
|
|
|
98
|
|
|
97
|
|
|
98
|
|
|
-
|
|
|
4
|
%
|
|
Card and processing revenue
|
|
|
|
|
|
76
|
|
|
68
|
|
|
71
|
|
|
69
|
|
|
67
|
|
|
11
|
%
|
|
12
|
%
|
|
Other noninterest income
|
|
|
|
|
|
226
|
|
|
41
|
|
|
170
|
|
|
185
|
|
|
414
|
|
|
NM
|
|
(45
|
%)
|
|
Securities gains, net
|
|
|
|
|
|
8
|
|
|
7
|
|
|
2
|
|
|
2
|
|
|
-
|
|
|
16
|
%
|
|
NM
|
|
Securities gains, net - non-qualifying
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
hedges on mortgage servicing rights
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5
|
|
|
6
|
|
|
-
|
|
|
(100
|
%)
|
|
Total noninterest income
|
|
|
|
|
$
|
736
|
|
$
|
564
|
|
$
|
703
|
|
$
|
721
|
|
$
|
1,060
|
|
|
31
|
%
|
|
(31
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income of $736 million increased $172 million sequentially
and decreased $324 million compared with prior year results. These
comparisons reflect the impacts described below.
For the quarters ending June 30, 2014, March 31, 2014, and June 30,
2013, the impacts of Vantiv warrant valuation adjustments were positive
$63 million, negative $36 million, and positive $76 million,
respectively. Quarterly results also included charges related to the
valuation of the total return swap entered into as part of the 2009 sale
of Visa, Inc. Class B shares. Valuation adjustments on this swap were a
negative $16 million, positive $1 million, and negative $5 million in
the second quarter of 2014, the first quarter of 2014, and the second
quarter of 2013, respectively. Gains on sales of Vantiv shares were $125
million in the second quarter of 2014 and $242 million in the second
quarter of 2013. Additionally, second quarter 2014 results included a
$17 million negative valuation adjustment for land upon which the
Bancorp no longer expects to build branches, and a $12 million negative
impact to equity method income from the Bancorp’s interest in Vantiv
related to certain charges recognized by Vantiv as a result of their
acquisition of Mercury Payment Systems during the quarter. Second
quarter 2013 results also included a pre-tax benefit of $10 million
resulting from the settlement related to a previously surrendered BOLI
policy. Excluding these items and net securities gains in all periods,
noninterest income of $585 million decreased $7 million, or 1 percent,
from the previous quarter and decreased $152 million, or 21 percent,
from the second quarter of 2013. The sequential and year-over-year
decline was primarily due to lower mortgage banking net revenue.
Service charges on deposits of $139 million increased 5 percent from the
first quarter and 2 percent compared with the same quarter last year.
Sequential growth was due to a 6 percent increase in retail service
charges from seasonally lower first quarter volume as well as a 4
percent increase in commercial service charges. The year-over-year
increase was driven by an increase in commercial service charges of 7
percent, partially offset by a 6 percent decline in retail service
charges due to higher initial consumer service charges that followed the
final rollout of our new deposit products in the year ago quarter. The
sequential and year-over-year increase in commercial service charges was
primarily related to new products and new clients.
Corporate banking revenue of $107 million increased 3 percent from the
first quarter of 2014 and 1 percent from the second quarter last year.
The sequential increase was due to higher syndication fees, foreign
exchange fees, and interest rate derivatives, partially offset by a
decline in lease remarketing fees and institutional sales revenue. The
year-over-year increase was driven by higher syndication fees,
institutional sales revenue and letter of credit fees, partially offset
by a decline in interest rate derivatives, lease remarketing fees,
business lending fees, and foreign exchange fees.
Mortgage banking net revenue was $78 million in the second quarter of
2014, a 29 percent decrease from the first quarter of 2014 and a 67
percent decrease from the second quarter of 2013. Second quarter 2014
originations were $2.0 billion, compared with $1.7 billion in the
previous quarter and $7.5 billion in the second quarter of 2013. Second
quarter 2014 originations resulted in gains of $42 million on mortgages
sold, compared with gains of $41 million during the previous quarter and
$150 million during the second quarter of 2013. The decrease from the
prior year reflected lower production and lower gain on sale margins,
while sequentially higher mortgage originations were offset by lower
gain on sale margins. Mortgage servicing fees were $62 million this
quarter, the first quarter of 2014, and the second quarter of 2013.
Mortgage banking net revenue is also affected by net servicing asset
valuation adjustments, which include mortgage servicing rights (MSR)
amortization and MSR valuation adjustments (including mark-to-market
adjustments on free-standing derivatives used to economically hedge the
MSR portfolio). These net servicing asset valuation adjustments were
negative $26 million in the second quarter of 2014 (reflecting MSR
amortization of $32 million and MSR valuation adjustments of positive $6
million); positive $6 million in the first quarter of 2014 (MSR
amortization of $22 million and MSR valuation adjustments of positive
$28 million); and positive $21 million in the second quarter of 2013
(MSR amortization of $51 million and MSR valuation adjustments of
positive $72 million). The mortgage servicing asset, net of the
valuation reserve, was $928 million at quarter-end on a servicing
portfolio of $68 billion.
Investment advisory revenue of $102 million was flat from the first
quarter and increased 4 percent year-over-year. Sequential comparisons
reflected an increase in brokerage fees which were offset by lower
tax-related private client services revenue, which is seasonally
stronger in the first quarter. The year-over-year increase was
attributable to higher private client services revenue, partially offset
by lower securities fees.
Card and processing revenue of $76 million in the second quarter of 2014
increased 11 percent sequentially and 12 percent from the second quarter
of 2013. The sequential increase reflected higher transaction volumes
compared with seasonally weak first quarter volumes. The year-over-year
increase reflects an increase in the number of actively used cards as
well as higher processing fees related to additional ATM locations.
Other noninterest income totaled $226 million in the second quarter of
2014, compared with $41 million in the previous quarter and $414 million
in the second quarter of 2013. As described above, included in results
were the impact of gains on sales of Vantiv shares, Vantiv warrant
valuation adjustments, charges related to the valuation of the Visa
total return swap, a valuation adjustment for land upon which the
Bancorp no longer expects to build branches, a negative impact to equity
method income from the Bancorp’s interest in Vantiv related to certain
charges recognized by Vantiv as a result of their acquisition of Mercury
Payment Systems, and a settlement related to a previously surrendered
BOLI policy. Excluding these items, other noninterest income of $83
million increased approximately $7 million, or 9 percent, from the first
quarter of 2014 primarily related to an improvement in net credit
related costs and decreased approximately $8 million, or 9 percent, from
the second quarter of 2013 primarily due to a decrease in insurance
income related to mortgage production.
Net gains on investment securities were $8 million in the second quarter
of 2014, compared with $7 million in the previous quarter and an
immaterial amount in the second quarter of 2013.
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
|
June
|
|
|
March
|
|
|
December
|
|
|
September
|
|
|
June
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
2013
|
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Expense ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and incentives
|
|
|
|
|
$
|
368
|
|
|
$
|
359
|
|
|
$
|
388
|
|
|
$
|
389
|
|
|
$
|
404
|
|
|
2
|
%
|
|
(9
|
%)
|
|
Employee benefits
|
|
|
|
|
|
79
|
|
|
|
101
|
|
|
|
78
|
|
|
|
83
|
|
|
|
83
|
|
|
(22
|
%)
|
|
(5
|
%)
|
|
Net occupancy expense
|
|
|
|
|
|
79
|
|
|
|
80
|
|
|
|
77
|
|
|
|
75
|
|
|
|
76
|
|
|
(1
|
%)
|
|
3
|
%
|
|
Technology and communications
|
|
|
|
|
|
52
|
|
|
|
53
|
|
|
|
53
|
|
|
|
52
|
|
|
|
50
|
|
|
(3
|
%)
|
|
4
|
%
|
|
Equipment expense
|
|
|
|
|
|
30
|
|
|
|
30
|
|
|
|
29
|
|
|
|
29
|
|
|
|
28
|
|
|
1
|
%
|
|
9
|
%
|
|
Card and processing expense
|
|
|
|
|
|
37
|
|
|
|
31
|
|
|
|
37
|
|
|
|
33
|
|
|
|
33
|
|
|
17
|
%
|
|
10
|
%
|
|
Other noninterest expense
|
|
|
|
|
|
309
|
|
|
|
296
|
|
|
|
327
|
|
|
|
298
|
|
|
|
361
|
|
|
5
|
%
|
|
(14
|
%)
|
|
Total noninterest expense
|
|
|
|
|
$
|
954
|
|
|
$
|
950
|
|
|
$
|
989
|
|
|
$
|
959
|
|
|
$
|
1,035
|
|
|
-
|
|
|
(8
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense of $954 million was flat compared with the first
quarter of 2014 and declined 8 percent from the second quarter of 2013.
Second quarter 2014 expenses included $61 million in charges to
litigation reserves compared with $51 million each in the first quarter
of 2014 and second quarter of 2013. Excluding these items, noninterest
expense of $893 million was down $6 million, or 1 percent, sequentially
and decreased $91 million, or 9 percent, year-over-year. The
year-over-year decline reflected lower compensation-related expense and
benefits expense, primarily due to changes in our mortgage and retail
staffing.
Second quarter 2014 other noninterest expense included provision for
mortgage repurchases of $1 million. This compared with expense of $3
million in the first quarter and expense of $20 million a year ago.
(Realized mortgage repurchase losses were $5 million in the second
quarter of 2014, compared with $10 million last quarter and $14 million
in the second quarter of 2013).
|
Credit Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Total net losses charged off ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
|
|
|
($31
|
)
|
|
($97
|
)
|
|
($66
|
)
|
|
($44
|
)
|
|
($33
|
)
|
|
Commercial mortgage loans
|
|
|
|
|
(9
|
)
|
|
(3
|
)
|
|
(8
|
)
|
|
(2
|
)
|
|
(10
|
)
|
|
Commercial construction loans
|
|
|
|
|
(8
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
2
|
|
|
-
|
|
|
Commercial leases
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2
|
)
|
|
Residential mortgage loans
|
|
|
|
|
(8
|
)
|
|
(15
|
)
|
|
(13
|
)
|
|
(12
|
)
|
|
(15
|
)
|
|
Home equity
|
|
|
|
|
(18
|
)
|
|
(16
|
)
|
|
(26
|
)
|
|
(19
|
)
|
|
(23
|
)
|
|
Automobile loans
|
|
|
|
|
(5
|
)
|
|
(8
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|
(5
|
)
|
|
Credit card
|
|
|
|
|
(21
|
)
|
|
(19
|
)
|
|
(21
|
)
|
|
(19
|
)
|
|
(19
|
)
|
|
Other consumer loans and leases
|
|
|
|
|
(1
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
(9
|
)
|
|
(5
|
)
|
|
Total net losses charged off
|
|
|
|
|
(101
|
)
|
|
(168
|
)
|
|
(148
|
)
|
|
(109
|
)
|
|
(112
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses
|
|
|
|
|
(127
|
)
|
|
(190
|
)
|
|
(183
|
)
|
|
(141
|
)
|
|
(145
|
)
|
|
Total recoveries
|
|
|
|
|
26
|
|
|
22
|
|
|
35
|
|
|
32
|
|
|
33
|
|
|
Total net losses charged off
|
|
|
|
|
($101
|
)
|
|
($168
|
)
|
|
($148
|
)
|
|
($109
|
)
|
|
($112
|
)
|
|
Ratios (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses charged off as a percent of average loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding held for sale)
|
|
|
|
|
0.45
|
%
|
|
0.76
|
%
|
|
0.67
|
%
|
|
0.49
|
%
|
|
0.51
|
%
|
|
Commercial
|
|
|
|
|
0.35
|
%
|
|
0.79
|
%
|
|
0.60
|
%
|
|
0.35
|
%
|
|
0.36
|
%
|
|
Consumer
|
|
|
|
|
0.60
|
%
|
|
0.72
|
%
|
|
0.76
|
%
|
|
0.70
|
%
|
|
0.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs were $101 million, or 45 bps, of average loans on an
annualized basis, in the second quarter of 2014 compared with net
charge-offs of $168 million, or 76 bps, in the first quarter of 2014 and
$112 million, or 51 bps, in the second quarter of 2013. The first
quarter of 2014 included three credits that together resulted in
combined charge-offs of $60 million (27 bps).
Commercial net charge-offs were $48 million, or 35 bps, down $57 million
sequentially. C&I net charge-offs of $31 million decreased $66 million
from the previous quarter primarily reflecting the impact of the
charge-offs mentioned above. Commercial real estate net charge-offs
increased $9 million from $8 million in the previous quarter.
Consumer net charge-offs were $53 million, or 60 bps, down $10 million
sequentially. Net charge-offs on residential mortgage loans in the
portfolio were $8 million, down $7 million from the previous quarter.
Home equity net charge-offs were $18 million, up $2 million from the
first quarter of 2014, and net charge-offs in the auto portfolio of $5
million were down $3 million compared with the prior quarter. Net
charge-offs on consumer credit card loans were $21 million, up $2
million from the first quarter. Net charge-offs on other consumer loans
were $1 million, down $4 million compared with the previous quarter.
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Allowance for Credit Losses ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses, beginning
|
|
|
|
|
$
|
1,483
|
|
|
$
|
1,582
|
|
|
$
|
1,677
|
|
|
$
|
1,735
|
|
|
$
|
1,783
|
|
|
Total net losses charged off
|
|
|
|
|
|
(101
|
)
|
|
|
(168
|
)
|
|
|
(148
|
)
|
|
|
(109
|
)
|
|
|
(112
|
)
|
|
Provision for loan and lease losses
|
|
|
|
|
|
76
|
|
|
|
69
|
|
|
|
53
|
|
|
|
51
|
|
|
|
64
|
|
|
Allowance for loan and lease losses, ending
|
|
|
|
|
|
1,458
|
|
|
|
1,483
|
|
|
|
1,582
|
|
|
|
1,677
|
|
|
|
1,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded commitments, beginning
|
|
|
|
|
|
153
|
|
|
|
162
|
|
|
|
167
|
|
|
|
166
|
|
|
|
168
|
|
|
Provision (benefit) for unfunded commitments
|
|
|
|
|
|
(11
|
)
|
|
|
(9
|
)
|
|
|
(5
|
)
|
|
|
1
|
|
|
|
(2
|
)
|
|
Reserve for unfunded commitments, ending
|
|
|
|
|
|
142
|
|
|
|
153
|
|
|
|
162
|
|
|
|
167
|
|
|
|
166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
|
|
|
|
|
1,458
|
|
|
|
1,483
|
|
|
|
1,582
|
|
|
|
1,677
|
|
|
|
1,735
|
|
|
Reserve for unfunded commitments
|
|
|
|
|
|
142
|
|
|
|
153
|
|
|
|
162
|
|
|
|
167
|
|
|
|
166
|
|
|
Total allowance for credit losses
|
|
|
|
|
$
|
1,600
|
|
|
$
|
1,636
|
|
|
$
|
1,744
|
|
|
$
|
1,844
|
|
|
$
|
1,901
|
|
|
Allowance for loan and lease losses ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of loans and leases
|
|
|
|
|
|
1.61
|
%
|
|
|
1.65
|
%
|
|
|
1.79
|
%
|
|
|
1.92
|
%
|
|
|
1.99
|
%
|
|
As a percent of nonperforming loans and leases(a)
|
|
|
|
|
|
228
|
%
|
|
|
202
|
%
|
|
|
211
|
%
|
|
|
218
|
%
|
|
|
191
|
%
|
|
As a percent of nonperforming assets(a)
|
|
|
|
|
|
175
|
%
|
|
|
157
|
%
|
|
|
161
|
%
|
|
|
165
|
%
|
|
|
151
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes nonaccrual loans and leases in loans held for sale.
|
|
|
|
|
|
|
Provision for loan and lease losses totaled $76 million in the second
quarter of 2014, up $7 million from the first quarter of 2014 and up $12
million from the second quarter of 2013. The allowance for loan and
lease losses declined $25 million sequentially reflecting the
portfolio’s overall risk profile and charges to the allowance. The
allowance represented 1.61 percent of total loans and leases outstanding
as of quarter end, compared with 1.65 percent last quarter, and
represented 228 percent of nonperforming loans and leases, and 175
percent of nonperforming assets.
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
Nonperforming Assets and Delinquent Loans ($ in millions)
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Nonaccrual portfolio loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
|
|
|
$
|
103
|
|
|
$
|
153
|
|
|
$
|
127
|
|
|
$
|
146
|
|
|
$
|
218
|
|
|
Commercial mortgage loans
|
|
|
|
|
|
86
|
|
|
|
96
|
|
|
|
90
|
|
|
|
106
|
|
|
|
169
|
|
|
Commercial construction loans
|
|
|
|
|
|
3
|
|
|
|
3
|
|
|
|
10
|
|
|
|
27
|
|
|
|
39
|
|
|
Commercial leases
|
|
|
|
|
|
2
|
|
|
|
3
|
|
|
|
3
|
|
|
|
1
|
|
|
|
1
|
|
|
Residential mortgage loans
|
|
|
|
|
|
56
|
|
|
|
68
|
|
|
|
83
|
|
|
|
83
|
|
|
|
96
|
|
|
Home equity
|
|
|
|
|
|
73
|
|
|
|
75
|
|
|
|
74
|
|
|
|
28
|
|
|
|
28
|
|
|
Automobile loans
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other consumer loans and leases
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Total nonaccrual loans and leases (excludes restructured loans)
|
|
|
|
|
$
|
323
|
|
|
$
|
398
|
|
|
$
|
387
|
|
|
$
|
391
|
|
|
$
|
551
|
|
|
Restructured loans - commercial (nonaccrual)(c)
|
|
|
|
|
|
202
|
|
|
|
209
|
|
|
|
228
|
|
|
|
241
|
|
|
|
196
|
|
|
Restructured loans - consumer (nonaccrual)
|
|
|
|
|
|
115
|
|
|
|
126
|
|
|
|
136
|
|
|
|
138
|
|
|
|
162
|
|
|
Total nonaccrual portfolio loans and leases
|
|
|
|
|
$
|
640
|
|
|
$
|
733
|
|
|
$
|
751
|
|
|
$
|
770
|
|
|
$
|
909
|
|
|
Repossessed personal property
|
|
|
|
|
|
18
|
|
|
|
6
|
|
|
|
7
|
|
|
|
7
|
|
|
|
6
|
|
|
Other real estate owned(a)
|
|
|
|
|
|
174
|
|
|
|
207
|
|
|
|
222
|
|
|
|
237
|
|
|
|
235
|
|
|
Total nonperforming assets(b)
|
|
|
|
|
$
|
832
|
|
|
$
|
946
|
|
|
$
|
980
|
|
|
$
|
1,014
|
|
|
$
|
1,150
|
|
|
Nonaccrual loans held for sale
|
|
|
|
|
|
5
|
|
|
|
3
|
|
|
|
6
|
|
|
|
11
|
|
|
|
15
|
|
|
Restructured loans - commercial (nonaccrual) held for sale
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Total nonperforming assets including loans held for sale
|
|
|
|
|
$
|
837
|
|
|
$
|
949
|
|
|
$
|
986
|
|
|
$
|
1,025
|
|
|
$
|
1,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured Consumer loans and leases (accrual)
|
|
|
|
|
$
|
1,623
|
|
|
$
|
1,682
|
|
|
$
|
1,685
|
|
|
$
|
1,694
|
|
|
$
|
1,671
|
|
|
Restructured Commercial loans and leases (accrual)(c)
|
|
|
|
|
$
|
914
|
|
|
$
|
847
|
|
|
$
|
869
|
|
|
$
|
499
|
|
|
$
|
475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases 90 days past due
|
|
|
|
|
$
|
94
|
|
|
$
|
94
|
|
|
$
|
103
|
|
|
$
|
156
|
|
|
$
|
152
|
|
|
Nonperforming loans and leases as a percent of portfolio loans,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
leases and other assets, including other real estate owned(b)
|
|
|
|
|
|
0.70
|
%
|
|
|
0.82
|
%
|
|
|
0.84
|
%
|
|
|
0.88
|
%
|
|
|
1.04
|
%
|
|
Nonperforming assets as a percent of portfolio loans, leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other assets, including other real estate owned(b)
|
|
|
|
|
|
0.92
|
%
|
|
|
1.05
|
%
|
|
|
1.10
|
%
|
|
|
1.16
|
%
|
|
|
1.32
|
%
|
|
(a)
|
|
Excludes government insured advances.
|
|
(b)
|
|
Does not include nonaccrual loans held for sale.
|
|
(c)
|
|
Excludes $20.9 million of restructured nonaccrual loans and
$7.6 million of restructured accruing loans as of June 30, 2014,
March 31, 2014 and December 31, 2013 and excludes $21.5 million of
restructured nonaccrual loans and $7.6 million of restructured
accruing loans as of September 30, 2013 and June 30, 2013
associated with a consolidated variable interest entity in which
the Bancorp has no continuing credit risk.
|
|
|
|
|
Total nonperforming assets were $837 million, a decline of $112 million,
or 12 percent, from the previous quarter. Nonperforming loans (NPLs) at
quarter-end were $640 million or 0.70 percent of total loans, leases and
OREO, and decreased $93 million, or 13 percent, from the previous
quarter.
Commercial NPAs were $512 million, or 0.95 percent of commercial loans,
leases and OREO, and decreased $83 million, or 14 percent, from the
first quarter. Commercial NPLs were $396 million, or 0.73 percent of
commercial loans and leases, and decreased $68 million from last
quarter. C&I NPAs of $265 million decreased $39 million from the prior
quarter. Commercial mortgage NPAs were $212 million, down $28 million
from the previous quarter. Commercial construction NPAs were $31
million, a decrease of $15 million from the previous quarter. Commercial
lease NPAs were $4 million, down $1 million from the previous quarter.
Commercial NPAs included $202 million of nonaccrual troubled debt
restructurings (TDRs), compared with $209 million last quarter.
Consumer NPAs of $320 million, or 0.88 percent of consumer loans, leases
and OREO, decreased $31 million from the first quarter. Consumer NPLs
were $244 million, or 0.67 percent of consumer loans and leases and
decreased $25 million from last quarter. Residential mortgage NPAs were
$172 million, $29 million lower than last quarter. Home equity NPAs of
$110 million were flat sequentially and credit card NPAs of $32 million
were down $1 million compared with the previous quarter. Consumer
nonaccrual TDRs were $115 million in the second quarter of 2014,
compared with $126 million in the first quarter of 2014.
Second quarter OREO balances included in NPA balances described above
were $174 million, down $33 million from the first quarter, and included
$103 million in commercial OREO and $71 million in consumer OREO.
Repossessed personal property of $18 million increased $12 million from
the prior quarter.
Loans still accruing over 90 days past due were $94 million, consistent
with the first quarter of 2014. Commercial balances over 90 days past
due were immaterial compared with $1 million in the prior quarter, and
consumer balances 90 days past due of $94 million were up $1 million
from the previous quarter. Loans 30-89 days past due of $243 million
were flat from the previous quarter. Commercial balances 30-89 days past
due of $11 million were up $2 million sequentially and consumer balances
30-89 days past due of $232 million decreased $2 million from the first
quarter. The above delinquencies figures exclude nonaccruals described
previously.
|
Capital Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Capital Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity to average assets
|
|
|
|
|
11.57
|
%
|
|
11.53
|
%
|
|
11.51
|
%
|
|
11.71
|
%
|
|
11.64
|
%
|
|
Tangible equity(a)
|
|
|
|
|
9.77
|
%
|
|
9.61
|
%
|
|
9.44
|
%
|
|
9.75
|
%
|
|
9.65
|
%
|
|
Tangible common equity (excluding unrealized gains/losses)(a)
|
|
|
|
|
8.74
|
%
|
|
8.79
|
%
|
|
8.63
|
%
|
|
9.27
|
%
|
|
8.83
|
%
|
|
Tangible common equity (including unrealized gains/losses)(a)
|
|
|
|
|
9.00
|
%
|
|
8.93
|
%
|
|
8.69
|
%
|
|
9.42
|
%
|
|
8.94
|
%
|
|
Tangible common equity as a percent of risk-weighted assets
(excluding unrealized gains/losses)(a)(b)
|
|
|
|
|
9.67
|
%
|
|
9.57
|
%
|
|
9.52
|
%
|
|
10.01
|
%
|
|
9.56
|
%
|
|
Regulatory capital ratios:(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier I risk-based capital
|
|
|
|
|
10.80
|
%
|
|
10.45
|
%
|
|
10.43
|
%
|
|
11.21
|
%
|
|
11.14
|
%
|
|
Total risk-based capital
|
|
|
|
|
14.30
|
%
|
|
14.02
|
%
|
|
14.17
|
%
|
|
14.43
|
%
|
|
14.43
|
%
|
|
Tier I leverage
|
|
|
|
|
9.86
|
%
|
|
9.71
|
%
|
|
9.70
|
%
|
|
10.64
|
%
|
|
10.45
|
%
|
|
Tier I common equity(a)
|
|
|
|
|
9.61
|
%
|
|
9.51
|
%
|
|
9.45
|
%
|
|
9.95
|
%
|
|
9.49
|
%
|
|
Book value per share
|
|
|
|
|
16.74
|
|
|
16.27
|
|
|
15.85
|
|
|
15.84
|
|
|
15.56
|
|
|
Tangible book value per share(a)
|
|
|
|
|
13.86
|
|
|
13.40
|
|
|
13.00
|
|
|
13.09
|
|
|
12.69
|
|
|
(a)
|
|
The tangible equity, tangible common equity, tier I common equity
and tangible book value per share ratios, while not required by
accounting principles generally accepted in the United States of
America (U.S. GAAP), are considered to be critical metrics with
which to analyze banks. The ratios have been included herein to
facilitate a greater understanding of the Bancorp's capital
structure and financial condition. See the Regulation G Non-GAAP
Reconciliation table for a reconciliation of these ratios to U.S.
GAAP.
|
|
(b)
|
|
Under the banking agencies risk-based capital guidelines, assets
and credit equivalent amounts of derivatives and off-balance sheet
exposures are assigned to broad risk categories. The aggregate
dollar amount in each risk category is multiplied by the associated
risk weight of the category. The resulting weighted values are added
together resulting in the Bancorp's total risk weighted assets.
|
|
(c)
|
|
Current period regulatory capital data ratios are estimated.
|
|
|
|
|
Capital ratios remained strong during the quarter, reflecting growth in
retained earnings, and included the impact of the issuance of preferred
stock, the payment of preferred dividends, and share repurchase
activity. Compared with the prior quarter, the Tier 1 common equity
ratio* of 9.61 percent increased 10 bps. The tangible common equity to
tangible assets ratio* was 8.74 percent (excluding unrealized
gains/losses) and 9.00 percent (including unrealized gains/losses). The
Tier 1 risk-based capital ratio increased 35 bps to 10.80 percent. The
total risk-based capital ratio increased 28 bps to 14.30 percent and the
Leverage ratio increased 15 bps to 9.86 percent.
Our current estimate of the pro-forma fully phased in Tier I common
equity ratio at June 30, 2014 under the final capital rule, assuming the
Company elected to maintain the current treatment of AOCI components in
capital, would be approximately 9.3 percent**. This would compare with
9.6 percent* as calculated under the currently prevailing Basel I
capital framework. Were Fifth Third to make the election to include AOCI
components in capital, the June 30, 2014 pro forma Basel III Tier 1
common ratio would be increased by approximately 31 bps. Fifth Third’s
pro forma Tier 1 common equity ratio exceeds the minimum buffered Tier 1
common equity ratio of 7 percent, comprising a minimum of 4.5 percent
plus a capital conservation buffer of 2.5 percent. The pro forma Tier 1
common equity ratio does not include the effect of any mitigating
actions the Bancorp may undertake to offset any impact of the final
capital rules.
Book value per share at June 30, 2014 was $16.74 and tangible book value
per share* was $13.86, compared with the March 31, 2014 book value per
share of $16.27 and tangible book value per share of $13.40.
As previously announced, Fifth Third entered into a share repurchase
agreement with a counterparty on April 28, 2014, whereby Fifth Third
would purchase approximately $150 million of its outstanding common
stock. This transaction reduced Fifth Third’s first quarter share count
by 6.22 million shares on May 1, 2014. Settlement of the forward
contract related to this agreement is expected to occur on or before
July 28, 2014. In total, the incremental impact to the average diluted
share count in the second quarter of 2014 was approximately 9 million
shares due to share repurchase transactions in the first and second
quarters of 2014.
Pursuant to Fifth Third’s 2014 CCAR capital plan, Fifth Third issued
$300 million of 4.90 percent fixed-to-floating rate non-cumulative
perpetual preferred stock (Series J preferred stock) on June 5, 2014.
* Non-GAAP measure; see Reg. G reconciliation on page 33 in Exhibit
99.1 of 8-k filing dated 7/17/14.
** Capital ratios
estimated; presented under current U.S. capital regulations. The pro
forma Basel III Tier I common equity ratio is management’s estimate
based upon its current interpretation of recent prospective regulatory
capital requirements approved in July 2013.
Tax Rate
The effective tax rate was 27.6 percent this quarter compared with 27.3
percent in the first quarter of 2014 and 29.7 percent in the second
quarter of 2013.
Other
Fifth Third Bank owns 43 million units representing a 22.8 percent
interest in Vantiv Holding, LLC, convertible into shares of Vantiv,
Inc., a publicly traded firm (NYSE: VNTV). Based upon Vantiv’s closing
price of $33.62 on June 30, 2014, our interest in Vantiv was valued at
approximately $1.4 billion. Next month in our 10-Q, we will update our
disclosure of the carrying value of our interest in Vantiv stock, which
was $437 million as of March 31, 2014. The difference between the market
value and the book value of Fifth Third’s interest in Vantiv’s shares is
not recognized in Fifth Third’s equity or capital. Additionally, Fifth
Third has a warrant to purchase additional shares in Vantiv which is
carried as a derivative asset at a fair value of $412 million as of June
30, 2014.
Conference Call
Fifth Third will host a conference call to discuss these financial
results at 9:30 a.m. (Eastern Time) today. This conference call will be
webcast live by Thomson Financial and may be accessed through the Fifth
Third Investor Relations website at www.53.com
(click on “About Fifth Third” then “Investor Relations”). Institutional
investors can access the call via Thomson Financial’s password-protected
event management site, StreetEvents (www.streetevents.com).
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. Additionally, a telephone replay of the conference call will be
available beginning approximately two hours after the conference call
until Thursday, July 31 by dialing 800-585-8367 for domestic access and
404-537-3406 for international access (passcode 53688833#).
Corporate Profile
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of June 30, 2014, the Company had
$133 billion in assets and operated 15 affiliates with 1,309
full-service Banking Centers, including 102 Bank Mart® locations, most
open seven days a week, inside select grocery stores and 2,619 ATMs in
Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West
Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth
Third operates four main businesses: Commercial Banking, Branch Banking,
Consumer Lending, and Investment Advisors. Fifth Third also has a 22.8%
interest in Vantiv Holding, LLC. Fifth Third is among the largest money
managers in the Midwest and, as of June 30, 2014, had $305 billion in
assets under care, of which it managed $27 billion for individuals,
corporations and not-for-profit organizations. Investor
information and press
releases can be viewed at www.53.com.
Fifth Third’s common stock is traded on the NASDAQ® Global Select Market
under the symbol “FITB.”
Forward-Looking Statements
This news release contains statements that we believe are
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Rule 175 promulgated thereunder,
and Section 21E of the Securities Exchange Act of 1934, as amended, and
Rule 3b-6 promulgated thereunder. These statements relate to our
financial condition, results of operations, plans, objectives, future
performance 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,” “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. When
considering these forward-looking statements, you should keep in mind
these risks and uncertainties, as well as any cautionary statements we
may make. Moreover, you should treat these statements as speaking only
as of the date they are made and based only on information then actually
known to us.
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) general economic conditions and
weakening in the economy, specifically the real estate market, either
nationally or in the states in which Fifth Third, one or more acquired
entities and/or the combined company do business, are less favorable
than expected; (2) deteriorating credit quality; (3) political
developments, wars or other hostilities may disrupt or increase
volatility in securities markets or other economic conditions;
(4) changes in the interest rate environment reduce interest margins;
(5) prepayment speeds, loan origination and sale volumes, charge-offs
and loan loss provisions; (6) Fifth Third’s ability to maintain required
capital levels and adequate sources of funding and liquidity;
(7) maintaining capital requirements may limit Fifth Third’s operations
and potential growth; (8) changes and trends in capital markets;
(9) problems encountered by larger or similar financial institutions may
adversely affect the banking industry and/or Fifth Third;
(10) competitive pressures among depository institutions increase
significantly; (11) effects of critical accounting policies and
judgments; (12) changes in accounting policies or procedures as may be
required by the Financial Accounting Standards Board (FASB) or other
regulatory agencies; (13) legislative or regulatory changes or actions,
or significant litigation, adversely affect Fifth Third, one or more
acquired entities and/or the combined company or the businesses in which
Fifth Third, one or more acquired entities and/or the combined company
are engaged, including the Dodd-Frank Wall Street Reform and Consumer
Protection Act; (14) ability to maintain favorable ratings from rating
agencies; (15) fluctuation of Fifth Third’s stock price; (16) ability to
attract and retain key personnel; (17) ability to receive dividends from
its subsidiaries; (18) potentially dilutive effect of future
acquisitions on current shareholders’ ownership of Fifth Third;
(19) effects of accounting or financial results of one or more acquired
entities; (20) difficulties from Fifth Third’s investment in,
relationship with, and nature of the operations of Vantiv, LLC;
(21) loss of income from any sale or potential sale of businesses that
could have an adverse effect on Fifth Third’s earnings and future
growth; (22) ability to secure confidential information and deliver
products and services through the use of computer systems and
telecommunications networks; and (23) the impact of reputational risk
created by these developments on such matters as business generation and
retention, funding and liquidity.
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.
Fifth Third Bancorp
Investors
Jim Eglseder, 513-534-8424
Laura Wehby, 513-534-7407
or
Media
Larry Magnesen, 513-534-8055