- 2Q15 net income available to common shareholders of $292 million, or $0.36 per diluted common share
- Includes a $97 million pre-tax (~$63 million after tax) non-cash impairment charge related to previously announced changes in the branch network and a $14 million pre-tax (~$9 million after tax) positive valuation adjustment on the warrant Fifth Third holds in Vantiv, resulting in a net $0.07 impact on earnings per share
- 2Q15 return on average assets (ROA) of 0.90%; return on average common equity of 8.1%; return on average tangible common equity** of 9.70%
- Pre-provision net revenue (PPNR)** of $496 million in 2Q15
- Net interest income (FTE) of $892 million, up 5 percent sequentially and down 1 percent from 2Q14; net interest margin of 2.90%, up 4 basis points sequentially
- Average portfolio loans of $92.2 billion, up $1.7 billion sequentially and up $1.6 billion from 2Q14; both increases primarily driven by increases in C&I loans
- Noninterest income of $556 million compared with $630 million in the prior quarter; impacted by the impairment charge related to announced changes in the branch network in the current quarter, increased corporate banking revenue and mortgage banking net revenue, and valuations on the Vantiv warrant in both quarters; prior quarter comparisons were also impacted by the gain on sale of residential mortgage TDRs and the impairment associated with aircraft leases in 1Q15
- Noninterest expense of $947 million, up 3 percent from prior quarter primarily driven by higher incentive-based compensation expenses, partially offset by seasonally lower benefits expense; prior quarter comparisons were also impacted by the benefit from a settlement of a tax liability related to prior years recognized in 1Q15
- Credit trends
- Net charge-offs declined 15 percent year-over-year; 2Q15 net charge-offs of $86 million (0.37% of loans and leases) vs. 1Q15 NCOs of $91 million (0.41% of loans and leases) and 2Q14 NCOs of $101 million (0.45% of loans and leases)
- Portfolio NPA ratio of 0.67% down 9 bps from 1Q15, NPL ratio of 0.51% down 6 bps from 1Q15; total nonperforming assets (NPAs) of $627 million, including loans held-for-sale (HFS), declined $66 million sequentially
- 2Q15 provision expense of $79 million; $69 million in 1Q15 and $76 million in 2Q14
- Strong capital ratios*
- Common equity Tier 1 (CET1) ratio 9.41%; fully phased-in CET1 ratio of 9.3%
- Tier 1 risk-based capital ratio 10.49%, Total risk-based capital ratio 13.67%, Leverage ratio 9.44%
- Tangible common equity ratio** of 8.51%; 8.33% excluding securities portfolio unrealized gains/losses
- 8 million reduction in average diluted share count
- Book value per share of $17.62 down 1 percent from 1Q15 and up 5 percent from 2Q14; tangible book value per share** of $14.62
* Capital ratios estimated; presented under current U.S. capital regulations.
** Non-GAAP measure; see Reg. G reconciliation on page 33 in Exhibit 99.1 of 8-k filing dated 7/21/15.
Fifth Third Bancorp (Nasdaq: FITB) today reported second quarter 2015
net income of $315 million versus net income of $361 million in the
first quarter of 2015 and $439 million in the second quarter of 2014.
After preferred dividends, net income available to common shareholders
was $292 million, or $0.36 per diluted share, in the second quarter of
2015, compared with $346 million, or $0.42 per diluted share, in the
first quarter of 2015, and $416 million, or $0.49 per diluted share, in
the second quarter of 2014.
Second quarter 2015 included:
Income
-
$14 million positive valuation adjustment on the Vantiv warrant
-
($2 million) charge related to the valuation of the Visa total return
swap
-
($97 million) non-cash impairment charge related to previously
announced changes in the branch network
First quarter 2015 included:
Income
-
$70 million positive valuation adjustment on the Vantiv warrant
-
$37 million gain on the sale of residential mortgage loans classified
as troubled debt restructurings
-
($17 million) charge related to the valuation of the Visa total return
swap
-
($30 million) impairment associated with aircraft leases
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 branches and land
-
($16 million) charge related to the valuation of the Visa total return
swap
-
($12 million) negative impact to the 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
-
($61 million) in litigation reserve charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Earnings ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Bancorp
|
|
|
$
|
315
|
|
|
$
|
361
|
|
|
$
|
385
|
|
|
$
|
340
|
|
|
$
|
439
|
|
|
(13
|
%)
|
|
(28
|
%)
|
|
Net income available to common shareholders
|
|
|
$
|
292
|
|
|
$
|
346
|
|
|
$
|
362
|
|
|
$
|
328
|
|
|
$
|
416
|
|
|
(16
|
%)
|
|
(30
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic
|
|
|
|
0.36
|
|
|
|
0.42
|
|
|
|
0.44
|
|
|
|
0.39
|
|
|
|
0.49
|
|
|
(14
|
%)
|
|
(27
|
%)
|
|
Earnings per share, diluted
|
|
|
|
0.36
|
|
|
|
0.42
|
|
|
|
0.43
|
|
|
|
0.39
|
|
|
|
0.49
|
|
|
(14
|
%)
|
|
(27
|
%)
|
|
Cash dividends per common share
|
|
|
|
0.13
|
|
|
|
0.13
|
|
|
|
0.13
|
|
|
|
0.13
|
|
|
|
0.13
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
|
0.90
|
%
|
|
|
1.06
|
%
|
|
|
1.13
|
%
|
|
|
1.02
|
%
|
|
|
1.34
|
%
|
|
(15
|
%)
|
|
(33
|
%)
|
|
Return on average common equity
|
|
|
|
8.1
|
|
|
|
9.7
|
|
|
|
10.0
|
|
|
|
9.2
|
|
|
|
11.9
|
|
|
(16
|
%)
|
|
(32
|
%)
|
|
Return on average tangible common equity(b)
|
|
|
|
9.7
|
|
|
|
11.7
|
|
|
|
12.1
|
|
|
|
11.1
|
|
|
|
14.4
|
|
|
(17
|
%)
|
|
(33
|
%)
|
|
CET1 capital(c)
|
|
|
|
9.41
|
|
|
|
9.52
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
(1
|
%)
|
|
N/A
|
|
|
Tier I risk-based capital(c)
|
|
|
|
10.49
|
|
|
|
10.62
|
|
|
|
10.83
|
|
|
|
10.83
|
|
|
|
10.80
|
|
|
(1
|
%)
|
|
(3
|
%)
|
|
Tier I common equity(b)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
9.65
|
|
|
|
9.64
|
|
|
|
9.61
|
|
|
N/A
|
|
|
N/A
|
|
|
CET1 capital (fully-phased in)(b)(c)
|
|
|
|
9.30
|
|
|
|
9.41
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
(1
|
%)
|
|
N/A
|
|
|
Net interest margin(a)
|
|
|
|
2.90
|
|
|
|
2.86
|
|
|
|
2.96
|
|
|
|
3.10
|
|
|
|
3.15
|
|
|
1
|
%
|
|
(8
|
%)
|
|
Efficiency(a)
|
|
|
|
65.4
|
|
|
|
62.3
|
|
|
|
59.6
|
|
|
|
62.1
|
|
|
|
58.2
|
|
|
5
|
%
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in thousands)
|
|
|
|
810,054
|
|
|
|
815,190
|
|
|
|
824,047
|
|
|
|
834,262
|
|
|
|
844,489
|
|
|
(1
|
%)
|
|
(4
|
%)
|
|
Average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
803,965
|
|
|
|
810,210
|
|
|
|
819,057
|
|
|
|
829,392
|
|
|
|
838,492
|
|
|
(1
|
%)
|
|
(4
|
%)
|
|
Diluted
|
|
|
|
812,843
|
|
|
|
818,672
|
|
|
|
827,831
|
|
|
|
838,324
|
|
|
|
848,245
|
|
|
(1
|
%)
|
|
(4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Presented on a fully taxable equivalent basis.
|
|
(b) These 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.
|
|
(c) Under the banking agencies' Basel III Final Rule, assets
and credit equivalent amounts of off-balance sheet exposures are
calculated according to the standardized approach for
risk-weighted assets. The resulting values are added together
resulting in the Bancorp's total risk-weighted assets used in the
calculation of the tier I risk-based capital and common equity
tier 1 ratios beginning January 1, 2015. Current period regulatory
capital ratios are estimated.
|
|
NA: Not applicable.
|
|
|
“We are very pleased with our core business trends. The strategic and
tactical decisions that we have made over the past year are producing
the intended results, and reflect our focus on revenue generation and
balance sheet management in this low rate environment. Net interest
income was up 5 percent sequentially, reflecting solid growth in our
commercial business, particularly in C&I lending, which was up 3 percent
sequentially. Core deposits were up 8 percent over last year and crossed
$100 billion for the first time in our history, which contributed to our
core funding ratio of 108% in the quarter,” said Kevin Kabat, CEO of
Fifth Third Bancorp. “Credit performance metrics continue to reflect the
underlying positive trends in our portfolio as net charge-offs declined
to 37 basis points and non-performing assets improved to 67 basis
points. Our balance sheet is not only positioned to generate good
returns in this environment, but also in the upcoming rate cycle that we
expect to operate in once the Fed decides to raise short-term rates.”
“Fee income results for the quarter showed sequential growth,
highlighted by corporate banking revenue growth of 79 percent, and
mortgage banking revenue up 36 percent. Expenses were in line with our
expectations and reflected our investment in our business as we continue
to make adjustments to the company in the current operating environment
and the heightened focus on risk and compliance infrastructure,” added
Kabat.
“While we are very focused on our current operating results we continue
to take long-term strategic actions to maximize our company’s
performance in the changing banking environment. Our decision to close
approximately 105 branches not only shows our management team’s intense
focus on expense management, but also aligns our customer service
quality and product delivery strategies with our customers’
preferences,” said Greg Carmichael, who will become the Chief Executive
Officer in November. “I am very excited to have the opportunity to lead
this great company and continue Kevin’s successful track record in
building long-term shareholder value. Our industry is undergoing
important fundamental changes and my goal is to maintain the momentum
that we have in our core businesses as I look to achieve our revenue
growth targets and look for further opportunities to improve operational
efficiencies.”
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Condensed Statements of Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (taxable equivalent)
|
|
|
$892
|
|
|
$852
|
|
$888
|
|
$908
|
|
$905
|
|
5
|
%
|
|
(1
|
%)
|
|
Provision for loan and lease losses
|
|
|
79
|
|
|
69
|
|
99
|
|
71
|
|
76
|
|
14
|
%
|
|
4
|
%
|
|
Total noninterest income
|
|
|
556
|
|
|
630
|
|
653
|
|
520
|
|
736
|
|
(12
|
%)
|
|
(24
|
%)
|
|
Total noninterest expense
|
|
|
947
|
|
|
923
|
|
918
|
|
888
|
|
954
|
|
3
|
%
|
|
(1
|
%)
|
|
Income before income taxes (taxable equivalent)
|
|
|
422
|
|
|
490
|
|
524
|
|
469
|
|
611
|
|
(14
|
%)
|
|
(31
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent adjustment
|
|
|
5
|
|
|
5
|
|
5
|
|
5
|
|
5
|
|
-
|
|
|
-
|
|
|
Applicable income taxes
|
|
|
108
|
|
|
124
|
|
134
|
|
124
|
|
167
|
|
(13
|
%)
|
|
(35
|
%)
|
|
Net income
|
|
|
309
|
|
|
361
|
|
385
|
|
340
|
|
439
|
|
(14
|
%)
|
|
(30
|
%)
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
(6
|
)
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
(100
|
%)
|
|
(100
|
%)
|
|
Net income attributable to Bancorp
|
|
|
315
|
|
|
361
|
|
385
|
|
340
|
|
439
|
|
(13
|
%)
|
|
(28
|
%)
|
|
Dividends on preferred stock
|
|
|
23
|
|
|
15
|
|
23
|
|
12
|
|
23
|
|
53
|
%
|
|
-
|
|
|
Net income available to common shareholders
|
|
|
292
|
|
|
346
|
|
362
|
|
328
|
|
416
|
|
(16
|
%)
|
|
(30
|
%)
|
|
Earnings per share, diluted
|
|
|
$ 0.36
|
|
|
$ 0.42
|
|
$ 0.43
|
|
$ 0.39
|
|
$ 0.49
|
|
(14
|
%)
|
|
(27
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Interest Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income (taxable equivalent)
|
|
|
$
|
1,008
|
|
|
|
$
|
975
|
|
|
|
$
|
1,016
|
|
|
|
$
|
1,023
|
|
|
|
$
|
1,013
|
|
|
|
3
|
%
|
|
-
|
|
|
Total interest expense
|
|
|
|
116
|
|
|
|
|
123
|
|
|
|
|
128
|
|
|
|
|
115
|
|
|
|
|
108
|
|
|
|
(6
|
%)
|
|
7
|
%
|
|
Net interest income (taxable equivalent)
|
|
|
$
|
892
|
|
|
|
$
|
852
|
|
|
|
$
|
888
|
|
|
|
$
|
908
|
|
|
|
$
|
905
|
|
|
|
5
|
%
|
|
(1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on interest-earning assets (taxable equivalent)
|
|
|
|
3.28
|
%
|
|
|
|
3.28
|
%
|
|
|
|
3.38
|
%
|
|
|
|
3.49
|
%
|
|
|
|
3.53
|
%
|
|
|
-
|
|
|
(7
|
%)
|
|
Rate paid on interest-bearing liabilities
|
|
|
|
0.56
|
%
|
|
|
|
0.60
|
%
|
|
|
|
0.61
|
%
|
|
|
|
0.56
|
%
|
|
|
|
0.54
|
%
|
|
|
(7
|
%)
|
|
4
|
%
|
|
Net interest rate spread (taxable equivalent)
|
|
|
|
2.72
|
%
|
|
|
|
2.68
|
%
|
|
|
|
2.77
|
%
|
|
|
|
2.93
|
%
|
|
|
|
2.99
|
%
|
|
|
1
|
%
|
|
(9
|
%)
|
|
Net interest margin (taxable equivalent)
|
|
|
|
2.90
|
%
|
|
|
|
2.86
|
%
|
|
|
|
2.96
|
%
|
|
|
|
3.10
|
%
|
|
|
|
3.15
|
%
|
|
|
1
|
%
|
|
(8
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including held for sale
|
|
|
$
|
92,739
|
|
|
|
$
|
91,659
|
|
|
|
$
|
91,581
|
|
|
|
$
|
91,428
|
|
|
|
$
|
91,241
|
|
|
|
1
|
%
|
|
2
|
%
|
|
Total securities and other short-term investments
|
|
|
|
30,563
|
|
|
|
|
29,038
|
|
|
|
|
27,604
|
|
|
|
|
24,927
|
|
|
|
|
23,940
|
|
|
|
5
|
%
|
|
28
|
%
|
|
Total interest-earning assets
|
|
|
|
123,302
|
|
|
|
|
120,697
|
|
|
|
|
119,185
|
|
|
|
|
116,355
|
|
|
|
|
115,181
|
|
|
|
2
|
%
|
|
7
|
%
|
|
Total interest-bearing liabilities
|
|
|
|
83,512
|
|
|
|
|
83,339
|
|
|
|
|
82,544
|
|
|
|
|
81,157
|
|
|
|
|
80,770
|
|
|
|
-
|
|
|
3
|
%
|
|
Bancorp shareholders' equity
|
|
|
|
15,841
|
|
|
|
|
15,820
|
|
|
|
|
15,644
|
|
|
|
|
15,486
|
|
|
|
|
15,157
|
|
|
|
-
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income of $892 million on a fully taxable equivalent basis
increased $40 million from the first quarter, driven by earning asset
growth and lower deposit costs. Additionally, net interest income was
positively impacted by $7 million due to an extra day in the quarter.
These benefits were partially offset by continued repricing in our loan
portfolio and the effect of the TDR sale in the first quarter of 2015.
The net interest margin was 2.90 percent, an increase of 4 bps from the
previous quarter primarily driven by a 6 basis point benefit due to
deployment of cash balances into investment securities, 3 basis points
due to better funding rates including the continued rationalization of
deposit rates, partially offset by 4 basis points of loan yield
compression and a 1 basis point decrease primarily due to day count.
Compared with the second quarter of 2014, net interest income decreased
$13 million and the net interest margin decreased 25 bps. The decline in
net interest income was driven by the impact of changes to the Bancorp’s
deposit advance product that were effective January 1, 2015, higher
interest expense due to increased long-term debt balances, as well as
continued loan repricing, partially offset by the impact of higher
investment securities balances. The decline in the net interest margin
from the prior year was primarily driven by the impact of the changes to
the deposit advance product and loan repricing.
Securities
Average securities and other short-term
investments were $30.6 billion in the second quarter of 2015 compared
with $29.0 billion in the previous quarter and $23.9 billion in the
second quarter of 2014. Other short-term investments average balances of
$3.2 billion decreased $2.7 billion sequentially reflecting lower cash
balances held at the Federal Reserve. On an end of period basis,
securities balances of $28.5 billion increased $1.5 billion driven by
purchases of securities that were funded with cash balances at the
Federal Reserve held in other short-term investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Average Portfolio Loans and Leases ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
|
$
|
42,550
|
|
|
$
|
41,426
|
|
|
$
|
41,277
|
|
|
$
|
41,477
|
|
|
$
|
41,374
|
|
|
3
|
%
|
|
3
|
%
|
|
Commercial mortgage loans
|
|
|
|
7,148
|
|
|
|
7,241
|
|
|
|
7,480
|
|
|
|
7,633
|
|
|
|
7,885
|
|
|
(1
|
%)
|
|
(9
|
%)
|
|
Commercial construction loans
|
|
|
|
2,549
|
|
|
|
2,197
|
|
|
|
1,909
|
|
|
|
1,563
|
|
|
|
1,362
|
|
|
16
|
%
|
|
87
|
%
|
|
Commercial leases
|
|
|
|
3,776
|
|
|
|
3,715
|
|
|
|
3,600
|
|
|
|
3,571
|
|
|
|
3,555
|
|
|
2
|
%
|
|
6
|
%
|
|
Subtotal - commercial loans and leases
|
|
|
|
56,023
|
|
|
|
54,579
|
|
|
|
54,266
|
|
|
|
54,244
|
|
|
|
54,176
|
|
|
3
|
%
|
|
3
|
%
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
|
|
12,831
|
|
|
|
12,433
|
|
|
|
13,046
|
|
|
|
12,785
|
|
|
|
12,611
|
|
|
3
|
%
|
|
2
|
%
|
|
Home equity
|
|
|
|
8,654
|
|
|
|
8,802
|
|
|
|
8,937
|
|
|
|
9,009
|
|
|
|
9,101
|
|
|
(2
|
%)
|
|
(5
|
%)
|
|
Automobile loans
|
|
|
|
11,902
|
|
|
|
11,933
|
|
|
|
12,073
|
|
|
|
12,105
|
|
|
|
12,070
|
|
|
-
|
|
|
(1
|
%)
|
|
Credit card
|
|
|
|
2,296
|
|
|
|
2,321
|
|
|
|
2,324
|
|
|
|
2,295
|
|
|
|
2,232
|
|
|
(1
|
%)
|
|
3
|
%
|
|
Other consumer loans and leases
|
|
|
|
467
|
|
|
|
440
|
|
|
|
395
|
|
|
|
361
|
|
|
|
359
|
|
|
6
|
%
|
|
30
|
%
|
|
Subtotal - consumer loans and leases
|
|
|
|
36,150
|
|
|
|
35,929
|
|
|
|
36,775
|
|
|
|
36,555
|
|
|
|
36,373
|
|
|
1
|
%
|
|
(1
|
%)
|
|
Total average loans and leases (excluding held for sale)
|
|
|
$
|
92,173
|
|
|
$
|
90,508
|
|
|
$
|
91,041
|
|
|
$
|
90,799
|
|
|
$
|
90,549
|
|
|
2
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans held for sale
|
|
|
|
566
|
|
|
|
1,151
|
|
|
|
540
|
|
|
|
629
|
|
|
|
692
|
|
|
(51
|
%)
|
|
(18
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loan and lease balances (excluding loans held-for-sale)
increased $1.7 billion, or 2 percent, sequentially and increased $1.6
billion, or 2 percent, from the second quarter of 2014. The sequential
and prior year increases in average loans and leases were driven by
increased commercial and industrial (C&I), commercial construction, and
residential mortgage balances, partially offset by decreased home equity
balances. Period end loans and leases (excluding loans held-for-sale) of
$92.7 billion increased $1.5 billion, or 2 percent, sequentially and
increased $2.2 billion, or 2 percent, from a year ago.
Average commercial portfolio loan and lease balances increased $1.4
billion, or 3 percent, sequentially and increased $1.8 billion, or 3
percent, from the second quarter of 2014. Average C&I loans increased
$1.1 billion from the prior quarter and increased $1.2 billion from the
second quarter of 2014. Within commercial real estate, average
commercial mortgage balances continued to decline and average commercial
construction balances increased due to continued focus on that business.
Commercial line usage, on an end of period basis, was 33 percent of
committed lines in the second quarter of 2015 compared with 32 percent
in the first quarter of 2015 and 32 percent in the second quarter of
2014.
Average consumer portfolio loan and lease balances increased $221
million, or 1 percent, sequentially and decreased $223 million, or 1
percent, year-over-year. Average residential mortgage loans increased 3
percent sequentially and 2 percent from a year ago. Average auto loans
were flat sequentially and down 1 percent from the previous year.
Average home equity loans declined 2 percent sequentially and 5 percent
from the second quarter of 2014. Average credit card loans decreased 1
percent sequentially and increased 3 percent from the second quarter of
2014.
Average loans held-for-sale balances of $566 million decreased $585
million sequentially primarily due to the full quarter impact from the
sale of certain residential mortgage loans classified as troubled debt
restructurings sold in the first quarter and decreased $126 million
compared with the second quarter of 2014. Period end loans held-for-sale
of $995 million increased $271 million from the previous quarter and
$313 million from the second quarter of 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Average Deposits ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
|
$
|
35,384
|
|
|
$
|
33,760
|
|
|
$
|
33,301
|
|
|
$
|
31,790
|
|
|
$
|
31,275
|
|
|
5
|
%
|
|
13
|
%
|
|
Interest checking
|
|
|
|
26,894
|
|
|
|
26,885
|
|
|
|
25,478
|
|
|
|
24,926
|
|
|
|
25,222
|
|
|
-
|
|
|
7
|
%
|
|
Savings
|
|
|
|
15,156
|
|
|
|
15,174
|
|
|
|
15,173
|
|
|
|
15,759
|
|
|
|
16,509
|
|
|
-
|
|
|
(8
|
%)
|
|
Money market
|
|
|
|
18,071
|
|
|
|
17,492
|
|
|
|
17,023
|
|
|
|
15,222
|
|
|
|
13,942
|
|
|
3
|
%
|
|
30
|
%
|
|
Foreign office(a)
|
|
|
|
955
|
|
|
|
861
|
|
|
|
1,439
|
|
|
|
1,663
|
|
|
|
2,200
|
|
|
11
|
%
|
|
(57
|
%)
|
|
Subtotal - Transaction deposits
|
|
|
|
96,460
|
|
|
|
94,172
|
|
|
|
92,414
|
|
|
|
89,360
|
|
|
|
89,148
|
|
|
2
|
%
|
|
8
|
%
|
|
Other time
|
|
|
|
4,074
|
|
|
|
4,022
|
|
|
|
3,936
|
|
|
|
3,800
|
|
|
|
3,693
|
|
|
1
|
%
|
|
10
|
%
|
|
Subtotal - Core deposits
|
|
|
|
100,534
|
|
|
|
98,194
|
|
|
|
96,350
|
|
|
|
93,160
|
|
|
|
92,841
|
|
|
2
|
%
|
|
8
|
%
|
|
Certificates - $100,000 and over
|
|
|
|
2,558
|
|
|
|
2,683
|
|
|
|
2,998
|
|
|
|
3,339
|
|
|
|
3,840
|
|
|
(5
|
%)
|
|
(33
|
%)
|
|
Total deposits
|
|
|
$
|
103,092
|
|
|
$
|
100,877
|
|
|
$
|
99,348
|
|
|
$
|
96,499
|
|
|
$
|
96,681
|
|
|
2
|
%
|
|
7
|
%
|
|
(a) Includes commercial customer Eurodollar sweep balances for
which the Bancorp pays rates comparable to other commercial
deposit accounts.
|
|
|
|
Average core deposits increased $2.3 billion, or 2 percent, sequentially
and increased $7.7 billion, or 8 percent, from the second quarter of
2014. Average transaction deposits increased $2.3 billion, or 2 percent,
from the first quarter of 2015 primarily driven by higher demand deposit
and money market account balances. Year-over-year transaction deposits
increased $7.3 billion, or 8 percent, driven by higher money market
account, demand deposit, and interest checking balances, partially
offset by lower savings and foreign office balances. Other time deposits
increased 1 percent sequentially and 10 percent compared with the second
quarter of 2014.
Average commercial transaction deposits increased 4 percent sequentially
and 12 percent from the previous year. Sequential performance was
primarily driven by higher demand and money market account balances.
Year-over-year growth reflected higher demand deposit, interest
checking, and money market balances, partially offset by lower foreign
office balances.
Average consumer transaction deposits increased 1 percent sequentially
and increased 5 percent from the second quarter of 2014. The sequential
performance reflected higher demand deposit balances. Year-over-year
growth was driven by increased money market account balances, partially
offset by lower savings balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Funding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Average Wholesale Funding ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates - $100,000 and over
|
|
|
$
|
2,558
|
|
|
$
|
2,683
|
|
|
$
|
2,998
|
|
|
$
|
3,339
|
|
|
$
|
3,840
|
|
|
(5
|
%)
|
|
(33
|
%)
|
|
Federal funds purchased
|
|
|
|
326
|
|
|
|
172
|
|
|
|
161
|
|
|
|
520
|
|
|
|
606
|
|
|
90
|
%
|
|
(46
|
%)
|
|
Other short-term borrowings
|
|
|
|
1,705
|
|
|
|
1,602
|
|
|
|
1,481
|
|
|
|
1,973
|
|
|
|
2,234
|
|
|
6
|
%
|
|
(24
|
%)
|
|
Long-term debt
|
|
|
|
13,773
|
|
|
|
14,448
|
|
|
|
14,855
|
|
|
|
13,955
|
|
|
|
12,524
|
|
|
(5
|
%)
|
|
10
|
%
|
|
Total wholesale funding
|
|
|
$
|
18,362
|
|
|
$
|
18,905
|
|
|
$
|
19,495
|
|
|
$
|
19,787
|
|
|
$
|
19,204
|
|
|
(3
|
%)
|
|
(4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average wholesale funding of $18.4 billion decreased $543 million, or 3
percent, sequentially and decreased $842 million, or 4 percent, compared
with the second quarter of 2014. The sequential decrease was driven by a
decline in long-term debt due to pay-downs from securitizations and the
maturation of $500 million of bank-level subordinated debt in the middle
of the first quarter, as well as a decrease in certificates $100,000 and
over, partially offset by an increase in short-term borrowings. The
year-over-year decrease in average wholesale funding reflected an
increase in long-term debt due to issuances during 2014, partially
offset by a decrease in certificates $100,000 and over and short-term
borrowings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits
|
|
|
$
|
139
|
|
$
|
135
|
|
$
|
142
|
|
$
|
145
|
|
$
|
139
|
|
3
|
%
|
|
-
|
|
|
Corporate banking revenue
|
|
|
|
113
|
|
|
63
|
|
|
120
|
|
|
100
|
|
|
107
|
|
79
|
%
|
|
6
|
%
|
|
Mortgage banking net revenue
|
|
|
|
117
|
|
|
86
|
|
|
61
|
|
|
61
|
|
|
78
|
|
36
|
%
|
|
50
|
%
|
|
Investment advisory revenue
|
|
|
|
105
|
|
|
108
|
|
|
100
|
|
|
103
|
|
|
102
|
|
(3
|
%)
|
|
3
|
%
|
|
Card and processing revenue
|
|
|
|
77
|
|
|
71
|
|
|
76
|
|
|
75
|
|
|
76
|
|
8
|
%
|
|
1
|
%
|
|
Other noninterest income
|
|
|
|
1
|
|
|
163
|
|
|
150
|
|
|
33
|
|
|
226
|
|
(99
|
%)
|
|
(100
|
%)
|
|
Securities gains, net
|
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
8
|
|
-
|
|
|
(50
|
%)
|
|
Total noninterest income
|
|
|
$
|
556
|
|
$
|
630
|
|
$
|
653
|
|
$
|
520
|
|
$
|
736
|
|
(12
|
%)
|
|
(24
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income of $556 million decreased $74 million sequentially
and decreased $180 million compared with prior year results. The second
quarter of 2015 included a $97 million non-cash impairment charge
related to previously announced changes in the branch network, which was
slightly higher than the original estimate due to the receipt of updated
third party appraisals and the inclusion of five additional branches.
These actions are expected to be complete by mid-2016, and the expected
annualized reduction in operating expenses associated with these actions
is now expected to be $65 million, higher by $5 million as a result of
the additions. In addition to the impairment, the sequential and
year-over-year comparisons also reflect the impacts described below.
|
|
|
Noninterest Income excluding certain items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
June
|
|
March
|
|
June
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (as reported)
|
|
|
$
|
556
|
|
|
|
$
|
630
|
|
|
$
|
736
|
|
|
|
|
|
|
Vantiv warrant valuation
|
|
|
|
(14
|
)
|
|
|
|
(70
|
)
|
|
|
(63
|
)
|
|
|
|
|
|
Valuation of Visa total return swap
|
|
|
|
2
|
|
|
|
|
17
|
|
|
|
16
|
|
|
|
|
|
|
Branch / land valuation adjustments
|
|
|
|
97
|
|
|
|
|
-
|
|
|
|
17
|
|
|
|
|
|
|
Gain on sale of TDRs
|
|
|
|
-
|
|
|
|
|
(37
|
)
|
|
|
-
|
|
|
|
|
|
|
Impairment from aircraft leases
|
|
|
|
-
|
|
|
|
|
30
|
|
|
|
-
|
|
|
|
|
|
|
Gain on sale of Vantiv shares
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(125
|
)
|
|
|
|
|
|
Other Vantiv-related items
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
12
|
|
|
|
|
|
|
Securities (gains) / losses
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
|
|
(8
|
)
|
|
|
|
|
|
Noninterest income excluding certain items
|
|
|
$
|
637
|
|
|
|
$
|
566
|
|
|
$
|
585
|
|
|
13
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding the items in the table above, noninterest income of $637
million increased $71 million, or 13 percent, from the previous quarter
and increased $52 million, or 9 percent, from the second quarter of
2014. The sequential increase was primarily due to increases in
corporate banking revenue and mortgage banking net revenue. The
year-over-year increase was primarily due to higher mortgage banking net
revenue.
Service charges on deposits of $139 million increased 3 percent from the
first quarter and were flat compared with the same quarter last year.
The sequential increase was due to a 5 percent increase in retail
service charges due to higher overdraft occurrences as well as a 1
percent increase in commercial service charges.
Corporate banking revenue of $113 million increased $50 million from the
first quarter of 2015 and increased $6 million from the second quarter
of 2014. First quarter of 2015 results included a $30 million impairment
associated with aircraft leases and excluding this charge, the
sequential increase was primarily due to improvement in institutional
sales revenue and higher syndication fees. The year-over-year increase
was driven by higher institutional sales revenue and business lending
fees, partially offset by lower syndication fees.
Mortgage banking net revenue was $117 million in the second quarter of
2015, up 36 percent from the first quarter of 2015 and up 50 percent
from the second quarter of 2014. Second quarter 2015 originations were
seasonally strong at $2.5 billion, compared with $1.8 billion in the
previous quarter and $2.0 billion in the second quarter of 2014. Second
quarter 2015 originations resulted in gains of $43 million on mortgages
sold, compared with gains of $44 million during the previous quarter and
$42 million during the second quarter of 2014. Mortgage servicing fees
were $56 million this quarter, $59 million in the first quarter of 2015,
and $62 million in the second quarter of 2014. 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 positive $18
million in the second quarter of 2015 (reflecting MSR amortization of
$39 million and MSR valuation adjustments of positive $57 million);
negative $17 million in the first quarter of 2015 (MSR amortization of
$34 million and MSR valuation adjustments of positive $17 million); and
negative $26 million in the second quarter of 2014 (MSR amortization of
$32 million and MSR valuation adjustments of positive $6 million). The
mortgage servicing asset, net of the valuation reserve, was $854 million
at quarter end on a servicing portfolio of $62 billion.
Investment advisory revenue of $105 million decreased 3 percent from the
first quarter and increased 3 percent year-over-year. The sequential
decrease was attributable to seasonally lower tax-related private client
services revenue, partially offset by an increase in securities and
brokerage fees due to a continued shift from transaction-based fees to
recurring revenue streams. The year-over-year increase reflected an
increase in securities and brokerage fees and an increase in personal
asset management fees due to market-related growth.
Card and processing revenue of $77 million in the second quarter of 2015
increased 8 percent sequentially and increased 1 percent from the second
quarter of 2014. 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 and an increase in customer spend volume.
Other noninterest income totaled $1 million in the second quarter of
2015, compared with $163 million in the previous quarter and $226
million in the second quarter of 2014. As previously described, the
results included the adjustments in the table above with the exception
of securities gains in all comparable periods and the impairment of
aircraft leases in the first quarter of 2015, which is recorded in
corporate banking revenue. Excluding these items, other noninterest
income of $86 million increased approximately $13 million, or 18
percent, from the first quarter of 2015 and increased approximately $3
million, or 4 percent, from the second quarter of 2014.
Net gains on investment securities were $4 million in the second quarter
of 2015, compared with $4 million in the previous quarter and $8 million
in the second quarter of 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Expense ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and incentives
|
|
|
$
|
383
|
|
$
|
369
|
|
$
|
366
|
|
$
|
357
|
|
$
|
368
|
|
4
|
%
|
|
4
|
%
|
|
Employee benefits
|
|
|
|
78
|
|
|
99
|
|
|
79
|
|
|
75
|
|
|
79
|
|
(21
|
%)
|
|
(1
|
%)
|
|
Net occupancy expense
|
|
|
|
83
|
|
|
79
|
|
|
77
|
|
|
78
|
|
|
79
|
|
5
|
%
|
|
5
|
%
|
|
Technology and communications
|
|
|
|
54
|
|
|
55
|
|
|
54
|
|
|
53
|
|
|
52
|
|
(2
|
%)
|
|
4
|
%
|
|
Equipment expense
|
|
|
|
31
|
|
|
31
|
|
|
30
|
|
|
30
|
|
|
30
|
|
-
|
|
|
3
|
%
|
|
Card and processing expense
|
|
|
|
38
|
|
|
36
|
|
|
36
|
|
|
37
|
|
|
37
|
|
6
|
%
|
|
3
|
%
|
|
Other noninterest expense
|
|
|
|
280
|
|
|
254
|
|
|
276
|
|
|
258
|
|
|
309
|
|
10
|
%
|
|
(9
|
%)
|
|
Total noninterest expense
|
|
|
$
|
947
|
|
$
|
923
|
|
$
|
918
|
|
$
|
888
|
|
$
|
954
|
|
3
|
%
|
|
(1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense of $947 million increased 3 percent compared with
the first quarter of 2015 and decreased 1 percent compared with the
second quarter of 2014. The sequential increase was primarily due to
higher incentive-based compensation expenses, partially offset by a
decrease in FICA and unemployment tax expense recorded in employee
benefits. Additionally, the sequential comparison reflected the first
quarter benefit from a settlement of a tax liability related to prior
years recorded in other noninterest expense. The year-over-year decrease
reflected lower charges to litigation reserves, partially offset by
higher compensation expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Total net losses charged-off ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
|
($34
|
)
|
|
|
($38
|
)
|
|
|
($44
|
)
|
|
|
($50
|
)
|
|
|
($31
|
)
|
|
|
Commercial mortgage loans
|
|
|
(11
|
)
|
|
|
(1
|
)
|
|
|
(10
|
)
|
|
|
(5
|
)
|
|
|
(9
|
)
|
|
|
Commercial construction loans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8
|
)
|
|
|
Commercial leases
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
Residential mortgage loans
|
|
|
(5
|
)
|
|
|
(6
|
)
|
|
|
(94
|
)
|
|
|
(9
|
)
|
|
|
(8
|
)
|
|
|
Home equity
|
|
|
(9
|
)
|
|
|
(14
|
)
|
|
|
(11
|
)
|
|
|
(14
|
)
|
|
|
(18
|
)
|
|
|
Automobile loans
|
|
|
(4
|
)
|
|
|
(8
|
)
|
|
|
(7
|
)
|
|
|
(7
|
)
|
|
|
(5
|
)
|
|
|
Credit card
|
|
|
(21
|
)
|
|
|
(21
|
)
|
|
|
(20
|
)
|
|
|
(23
|
)
|
|
|
(21
|
)
|
|
|
Other consumer loans and leases
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(4
|
)
|
|
|
(7
|
)
|
|
|
(1
|
)
|
|
Total net losses charged-off
|
|
|
(86
|
)
|
|
|
(91
|
)
|
|
|
(191
|
)
|
|
|
(115
|
)
|
|
|
(101
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses
|
|
|
(112
|
)
|
|
|
(115
|
)
|
|
|
(215
|
)
|
|
|
(146
|
)
|
|
|
(127
|
)
|
|
Total recoveries
|
|
|
26
|
|
|
|
24
|
|
|
|
24
|
|
|
|
31
|
|
|
|
26
|
|
|
Total net losses charged-off
|
|
|
($86
|
)
|
|
|
($91
|
)
|
|
|
($191
|
)
|
|
|
($115
|
)
|
|
|
($101
|
)
|
|
Ratios (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses charged-off as a percent of average loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding held for sale)
|
|
|
0.37
|
%
|
|
|
0.41
|
%
|
|
|
0.83
|
%
|
|
|
0.50
|
%
|
|
|
0.45
|
%
|
|
|
Commercial
|
|
|
0.32
|
%
|
|
|
0.29
|
%
|
|
|
0.40
|
%
|
|
|
0.40
|
%
|
|
|
0.35
|
%
|
|
|
Consumer
|
|
|
0.46
|
%
|
|
|
0.59
|
%
|
|
|
1.47
|
%
|
|
|
0.66
|
%
|
|
|
0.60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs were $86 million, or 37 bps of average loans on an
annualized basis, in the second quarter of 2015 compared with net
charge-offs of $91 million, or 41 bps, in the first quarter of 2015 and
$101 million, or 45 bps, in the second quarter of 2014.
Commercial net charge-offs were $45 million, or 32 bps, and were up $6
million sequentially. C&I net charge-offs of $34 million decreased $4
million from the previous quarter and commercial real estate net
charge-offs increased $10 million from the previous quarter.
Consumer net charge-offs were $41 million, or 46 bps, down $11 million
sequentially. Net charge-offs on residential mortgage loans in the
portfolio were $5 million, down $1 million from the previous quarter.
Home equity net charge-offs were $9 million, down $5 million from the
first quarter of 2015, and net charge-offs in the auto portfolio of $4
million were down $4 million compared with the prior quarter. Net
charge-offs on consumer credit card loans were $21 million, flat from
the first quarter. Net charge-offs on other consumer loans were $2
million, down $1 million compared with the previous quarter.
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Allowance for Credit Losses ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses, beginning
|
|
|
$
|
1,300
|
|
|
|
$
|
1,322
|
|
|
|
$
|
1,414
|
|
|
|
$
|
1,458
|
|
|
|
$
|
1,483
|
|
|
Total net losses charged-off
|
|
|
|
(86
|
)
|
|
|
|
(91
|
)
|
|
|
|
(191
|
)
|
|
|
|
(115
|
)
|
|
|
|
(101
|
)
|
|
Provision for loan and lease losses
|
|
|
|
79
|
|
|
|
|
69
|
|
|
|
|
99
|
|
|
|
|
71
|
|
|
|
|
76
|
|
|
Allowance for loan and lease losses, ending
|
|
|
|
1,293
|
|
|
|
|
1,300
|
|
|
|
|
1,322
|
|
|
|
|
1,414
|
|
|
|
|
1,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded commitments, beginning
|
|
|
|
130
|
|
|
|
|
135
|
|
|
|
|
134
|
|
|
|
|
142
|
|
|
|
|
153
|
|
|
Provision (benefit) for unfunded commitments
|
|
|
|
2
|
|
|
|
|
(4
|
)
|
|
|
|
1
|
|
|
|
|
(8
|
)
|
|
|
|
(11
|
)
|
|
Charge-offs
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Reserve for unfunded commitments, ending
|
|
|
|
132
|
|
|
|
|
130
|
|
|
|
|
135
|
|
|
|
|
134
|
|
|
|
|
142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
|
|
|
1,293
|
|
|
|
|
1,300
|
|
|
|
|
1,322
|
|
|
|
|
1,414
|
|
|
|
|
1,458
|
|
|
Reserve for unfunded commitments
|
|
|
|
132
|
|
|
|
|
130
|
|
|
|
|
135
|
|
|
|
|
134
|
|
|
|
|
142
|
|
|
Total allowance for credit losses
|
|
|
$
|
1,425
|
|
|
|
$
|
1,430
|
|
|
|
$
|
1,457
|
|
|
|
$
|
1,548
|
|
|
|
$
|
1,600
|
|
|
Allowance for loan and lease losses ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of portfolio loans and leases
|
|
|
|
1.39
|
%
|
|
|
|
1.42
|
%
|
|
|
|
1.47
|
%
|
|
|
|
1.56
|
%
|
|
|
|
1.61
|
%
|
|
As a percent of nonperforming loans and leases(a)
|
|
|
|
272
|
%
|
|
|
|
247
|
%
|
|
|
|
228
|
%
|
|
|
|
228
|
%
|
|
|
|
228
|
%
|
|
As a percent of nonperforming assets(a)
|
|
|
|
206
|
%
|
|
|
|
188
|
%
|
|
|
|
178
|
%
|
|
|
|
178
|
%
|
|
|
|
175
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes nonaccrual loans and leases in loans held for sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan and lease losses totaled $79 million in the second
quarter of 2015 and increased $10 million from the first quarter of 2015
and increased $3 million from the second quarter of 2014. The allowance
for loan and lease losses declined $7 million sequentially reflecting
the portfolio’s overall risk profile and charges to the allowance. The
allowance represented 1.39 percent of total portfolio loans and leases
outstanding as of quarter end, compared with 1.42 percent last quarter,
and represented 272 percent of nonperforming loans and leases, and 206
percent of nonperforming assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
Nonperforming Assets and Delinquent Loans ($ in millions)
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Nonaccrual portfolio loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
|
$
|
61
|
|
|
$
|
61
|
|
|
$
|
86
|
|
|
$
|
102
|
|
|
$
|
103
|
|
|
|
Commercial mortgage loans
|
|
|
|
49
|
|
|
|
57
|
|
|
|
64
|
|
|
|
77
|
|
|
|
86
|
|
|
|
Commercial construction loans
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2
|
|
|
|
3
|
|
|
|
Commercial leases
|
|
|
|
2
|
|
|
|
2
|
|
|
|
3
|
|
|
|
3
|
|
|
|
2
|
|
|
|
Residential mortgage loans
|
|
|
|
35
|
|
|
|
40
|
|
|
|
44
|
|
|
|
52
|
|
|
|
56
|
|
|
|
Home equity
|
|
|
|
70
|
|
|
|
71
|
|
|
|
72
|
|
|
|
69
|
|
|
|
73
|
|
|
|
|
Total nonaccrual portfolio loans and leases (excludes restructured
loans)
|
|
|
$
|
217
|
|
|
$
|
231
|
|
|
$
|
269
|
|
|
$
|
305
|
|
|
$
|
323
|
|
|
|
Restructured loans - commercial (nonaccrual)(c)
|
|
|
|
175
|
|
|
|
205
|
|
|
|
214
|
|
|
|
201
|
|
|
|
202
|
|
|
|
Restructured loans - consumer (nonaccrual)
|
|
|
|
83
|
|
|
|
90
|
|
|
|
96
|
|
|
|
114
|
|
|
|
115
|
|
|
|
|
Total nonaccrual portfolio loans and leases
|
|
|
$
|
475
|
|
|
$
|
526
|
|
|
$
|
579
|
|
|
$
|
620
|
|
|
$
|
640
|
|
|
Repossessed personal property
|
|
|
|
16
|
|
|
|
20
|
|
|
|
18
|
|
|
|
19
|
|
|
|
18
|
|
|
OREO(a)
|
|
|
|
135
|
|
|
|
145
|
|
|
|
147
|
|
|
|
157
|
|
|
|
174
|
|
|
|
|
Total nonperforming assets(b)
|
|
|
$
|
626
|
|
|
$
|
691
|
|
|
$
|
744
|
|
|
$
|
796
|
|
|
$
|
832
|
|
|
Nonaccrual loans held for sale
|
|
|
|
1
|
|
|
|
2
|
|
|
|
24
|
|
|
|
4
|
|
|
|
5
|
|
|
Restructured loans - (nonaccrual) held for sale
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15
|
|
|
|
3
|
|
|
|
-
|
|
|
Total nonperforming assets including loans held for sale
|
|
|
$
|
627
|
|
|
$
|
693
|
|
|
$
|
783
|
|
|
$
|
803
|
|
|
$
|
837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured Consumer loans and leases (accrual)
|
|
|
$
|
970
|
|
|
$
|
943
|
|
|
$
|
905
|
|
|
$
|
1,610
|
|
|
$
|
1,623
|
|
|
Restructured Commercial loans and leases (accrual)(c)
|
|
|
$
|
769
|
|
|
$
|
774
|
|
|
$
|
844
|
|
|
$
|
885
|
|
|
$
|
914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases 90 days past due
|
|
|
$
|
70
|
|
|
$
|
78
|
|
|
$
|
87
|
|
|
$
|
87
|
|
|
$
|
94
|
|
|
Nonperforming loans and leases as a percent of portfolio loans,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
leases and other assets, including OREO(b)
|
|
|
|
0.51
|
%
|
|
|
0.57
|
%
|
|
|
0.64
|
%
|
|
|
0.68
|
%
|
|
|
0.70
|
%
|
|
Nonperforming assets as a percent of portfolio loans, leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other assets, including OREO(b)
|
|
|
|
0.67
|
%
|
|
|
0.76
|
%
|
|
|
0.82
|
%
|
|
|
0.88
|
%
|
|
|
0.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes OREO related to government insured loans. The
Bancorp has historically excluded government guaranteed loans
classified in OREO from its nonperforming asset disclosures. Upon
the prospective adoption on January 1, 2015 of ASU 2014-14
“Classification of Certain Government-Guaranteed Mortgage Loans
Upon Foreclosure,” government guaranteed loans meeting certain
criteria will be reclassified to other receivables rather than
OREO upon foreclosure.
|
|
(b) Does not include nonaccrual loans held for sale.
|
|
(c) Excludes $21 million of restructured nonaccrual loans and
$7 million of restructured accruing loans as of June 30, 2015,
March 31, 2015, December 31, 2014, September 30, 2014 and June 30,
2014.
|
|
|
Total nonperforming assets, including loans held-for-sale, were $627
million, a decline of $66 million, or 10 percent, from the previous
quarter. Nonperforming loans (NPLs) at quarter-end were $475 million or
0.51 percent of total loans, leases and OREO, and decreased $51 million,
or 10 percent, from the previous quarter.
Commercial NPAs were $376 million, or 0.66 percent of commercial loans,
leases and OREO, and decreased $45 million, or 11 percent, from the
first quarter. Commercial NPLs were $287 million, or 0.51 percent of
commercial loans and leases, and decreased $38 million from last
quarter. C&I NPAs of $193 million decreased $23 million from the prior
quarter. Commercial mortgage NPAs were $166 million, down $20 million
from the previous quarter. Commercial construction NPAs were $14
million, down $2 million from the previous quarter. Commercial lease
NPAs were $3 million, flat from the previous quarter. Commercial NPAs
included $175 million of nonaccrual troubled debt restructurings (TDRs),
compared with $205 million last quarter.
Consumer NPAs of $250 million, or 0.69 percent of consumer loans, leases
and OREO, decreased $20 million from the first quarter. Consumer NPLs
were $188 million, or 0.52 percent of consumer loans and leases and
decreased $13 million from last quarter. Residential mortgage NPAs were
$101 million, $12 million lower than last quarter. Home equity NPAs of
$106 million decreased $5 million sequentially and credit card NPAs of
$36 million were down $2 million compared with the previous quarter.
Consumer nonaccrual TDRs were $83 million in the second quarter of 2015,
compared with $90 million in the first quarter of 2015.
Second quarter OREO balances included in NPA balances were $135 million,
down $10 million from the first quarter, and included $78 million in
commercial OREO and $57 million in consumer OREO. Repossessed personal
property of $16 million decreased $4 million from the prior quarter.
Loans over 90 days past due and still accruing were $70 million, down $8
million from the first quarter of 2015. Commercial balances over 90 days
past due were $2 million compared with $3 million in the prior quarter,
and consumer balances 90 days past due of $68 million were down $7
million from the previous quarter. Loans 30-89 days past due of $213
million were up $10 million from the previous quarter. Commercial
balances 30-89 days past due of $24 million were down $1 million
sequentially and consumer balances 30-89 days past due of $189 million
increased $11 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
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
Capital Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity to average assets
|
|
|
11.32
|
%
|
|
|
11.49
|
%
|
|
11.54
|
%
|
|
|
11.71
|
%
|
|
|
11.57
|
%
|
|
Tangible equity(a)
|
|
|
9.28
|
%
|
|
|
9.37
|
%
|
|
9.41
|
%
|
|
|
9.65
|
%
|
|
|
9.77
|
%
|
|
Tangible common equity (excluding unrealized gains/losses)(a)
|
|
|
8.33
|
%
|
|
|
8.40
|
%
|
|
8.43
|
%
|
|
|
8.64
|
%
|
|
|
8.74
|
%
|
|
Tangible common equity (including unrealized gains/losses)(a)
|
|
|
8.51
|
%
|
|
|
8.77
|
%
|
|
8.71
|
%
|
|
|
8.84
|
%
|
|
|
9.00
|
%
|
|
Tangible common equity as a percent of risk-weighted assets
(excluding unrealized gains/losses)
|
|
|
9.38
|
%(b)
|
|
|
9.49
|
%(b)
|
|
9.70
|
%(d)
|
|
|
9.70
|
%(d)
|
|
|
9.67
|
%(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital ratios:
|
|
|
Basel III
|
|
|
|
|
|
|
Transitional(c)
|
|
Basel I(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET1 capital
|
|
|
9.41
|
%(b)
|
|
|
9.52
|
%(b)
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
Tier I risk-based capital
|
|
|
10.49
|
%(b)
|
|
|
10.62
|
%(b)
|
|
10.83
|
%
|
|
|
10.83
|
%
|
|
|
10.80
|
%
|
|
Total risk-based capital
|
|
|
13.67
|
%(b)
|
|
|
14.01
|
%(b)
|
|
14.33
|
%
|
|
|
14.34
|
%
|
|
|
14.30
|
%
|
|
Tier I leverage
|
|
|
9.44
|
%
|
|
|
9.59
|
%
|
|
9.66
|
%
|
|
|
9.82
|
%
|
|
|
9.86
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier I common equity
|
|
|
N/A
|
|
|
|
N/A
|
|
|
9.65
|
%(a)
|
|
|
9.64
|
%(a)
|
|
|
9.61
|
%(a)
|
|
CET1 capital (fully-phased in)
|
|
|
9.30
|
(a)(b)
|
|
|
9.41
|
(a)(b)
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share
|
|
|
17.62
|
|
|
|
17.83
|
|
|
17.35
|
|
|
|
16.87
|
|
|
|
16.74
|
|
|
Tangible book value per share(a)
|
|
|
14.62
|
|
|
|
14.85
|
|
|
14.40
|
|
|
|
13.95
|
|
|
|
13.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
These 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 Basel III Final Rule, assets and
credit equivalent amounts of off-balance sheet exposures are
calculated based upon the standardized approach for risk-weighted
assets. The resulting values are added together resulting in the
Bancorp's total risk-weighted assets.
|
|
(c)
|
|
Current period regulatory capital ratios are estimated.
|
|
(d)
|
|
These capital ratios were calculated under the Supervisory
Agencies general risk-based capital rules (Basel I) which was in
effect prior to January 1, 2015.
|
|
|
|
|
Capital ratios remained strong during the quarter, reflecting growth in
retained earnings, the payment of preferred dividends, and share
repurchase activity. The common equity Tier 1 ratio was 9.41 percent,
the tangible common equity to tangible assets ratio* was 8.33 percent
(excluding unrealized gains/losses), and 8.51 percent (including
unrealized gains/losses). The Tier 1 risk-based capital ratio was 10.49
percent, the total risk-based capital ratio was 13.67 percent, and the
Leverage ratio was 9.44 percent.
Book value per share at June 30, 2015 was $17.62 and tangible book value
per share* was $14.62, compared with the March 31, 2015 book value per
share of $17.83 and tangible book value per share* of $14.85.
As previously announced, Fifth Third entered into a share repurchase
agreement with a counterparty on April 27, 2015, whereby Fifth Third
would purchase approximately $155 million of its outstanding common
stock. This transaction reduced Fifth Third’s second quarter share count
by 6.7 million shares on April 30, 2015. Settlement of the forward
contract related to this agreement is expected to occur on or before
July 28, 2015. In addition, the settlement of the forward contract
related to the January 22, 2015 $180 million share repurchase agreement
occurred on April 23, 2015. An additional 1.1 million shares were
repurchased upon completion of the agreement. In total, the incremental
impact to the average diluted share count in the second quarter of 2015
was approximately 7.96 million shares due to share repurchase
transactions in the second quarter and first quarter of 2015.
* Non-GAAP measure; see Reg. G reconciliation on page 33 in Exhibit
99.1 of 8-k filing dated 7/21/15.
Tax Rate
The effective tax rate was 26.1 percent this
quarter compared with 25.6 percent in the first quarter of 2015 and 27.6
percent in the second quarter of 2014.
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 $38.19 on June 30, 2015, our interest in Vantiv was
valued at approximately $1.6 billion. Next month in our 10-Q, we will
update our disclosure of the carrying value of our interest in Vantiv
stock, which was $402 million as of March 31, 2015. 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 $500
million as of June 30, 2015.
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 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 Tuesday, August 4, 2015 by dialing 800-585-8367 for domestic
access or 404-537-3406 for international access (passcode 57890508#).
Corporate Profile
Fifth Third Bancorp is a diversified
financial services company headquartered in Cincinnati, Ohio. As of June
30, 2015, the Company had $142 billion in assets and operated 15
affiliates with 1,299 full-service Banking Centers, including 101 Bank
Mart® locations, most open seven days a week, inside select grocery
stores and 2,630 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, 2015, had $304 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 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,” “anticipates,” “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 from
time to time by our Quarterly Reports on Form 10-Q. 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 is a risk that additional information may arise during the
company’s close process or as a result of subsequent events that would
require the company to make adjustments to the financial information
contained herein.
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 and adequate sources of funding and
liquidity 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) difficulties in separating the
operations of any branches or other assets divested; (23) inability to
achieve expected benefits from branch consolidations and planned sales
within desired timeframes, if at all; (24) ability to secure
confidential information and deliver products and services through the
use of computer systems and telecommunications networks; and (25) 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
or
Media:
Larry Magnesen, 513-534-8055