EX-99.1 2 q32023earningsrelease.htm EX-99.1 Document


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Fifth Third Reports Third Quarter 2023 Diluted Earnings Per Share of $0.91
Grew deposits and continued to improve liquidity and capital; maintained strong credit quality
Raised quarterly common stock dividend 2 cents, or 6%, to $0.35 per share
Reported results included a negative $0.01 impact from a certain item on page 2
Key Financial DataKey Highlights
$ in millions for all balance sheet and income statement items
3Q23
2Q23
3Q22
         Stability:
•Average deposits increased 3% and period-end deposits increased 2% compared to 2Q23; period-end deposits increased 4% compared to 3Q22
•Achieved full Category I LCR compliance during the quarter and at quarter-end
•CET1 capital increased 31 bps sequentially reflecting strong earnings power and balance sheet optimization efforts
•Strong credit quality metrics; 30-89 day early stage delinquencies of 0.26%, and NPA ratio of 0.51%, both improved compared to 2Q23
•ACL of 2.11%, an increase of 3 bps from 2Q23, primarily reflecting a change in macroeconomic forecast
    Profitability:
     Compared to 2Q23
•Revenue decreased 1%, PPNR(a) increased 1%, and net income increased 10%
•Efficiency ratio(a) of 55% improved 120 bps
•Adjusted ROTCE ex. AOCI(a) of 15.9% increased 50 basis points
    Growth:
•Generated consumer household growth of 2.3% compared to 3Q22
•Continued to add new quality commercial relationships

Income Statement Data
Net income available to common shareholders$623$562$631
Net interest income (U.S. GAAP)1,4381,4571,498
Net interest income (FTE)(a)
1,4451,4631,502
Noninterest income715726672
Noninterest expense1,1881,2311,167
Per Share Data
Earnings per share, basic$0.91$0.82$0.91
Earnings per share, diluted0.910.820.91
Book value per share21.1923.0521.30
Tangible book value per share(a)
13.7615.6113.87
Balance Sheet & Credit Quality
Average portfolio loans and leases$121,630$123,327$119,644
Average deposits165,644160,857159,469
Accumulated other comprehensive loss(6,839)(5,166)(5,306)
Net charge-off ratio(b)
0.41%0.29%0.21%
Nonperforming asset ratio(c)
0.510.540.46
Financial Ratios
Return on average assets1.26%1.17%1.25%
Return on average common equity16.313.914.9
Return on average tangible common equity(a)
24.720.521.9
CET1 capital(d)(e)
9.809.499.14
Net interest margin(a)
2.983.103.22
Efficiency(a)
55.056.253.7
Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.
From Tim Spence, Fifth Third President and CEO:
Our third quarter results were once again strong, as we have continued to navigate the challenging environment well. Our key return and profitability metrics remained resilient despite the market-related headwinds that all banks are facing. We generated strong fee growth compared to the year-ago quarter while maintaining expense discipline. Our credit metrics remained strong, with net charge-offs for the quarter in-line with our expectations. Additionally, early-stage delinquencies and nonperforming loans improved sequentially, reflecting our disciplined approach to client selection.

We reduced our risk-weighted assets and accreted over 30 basis points of CET1 capital. We generated strong deposit outcomes, growing average deposits 4% compared to the year-ago quarter while the industry continued to shrink. As a result, we achieved our goal of full LCR compliance for the quarter.

We continue to prudently invest in this environment, adding net new households in consumer and new quality middle market relationships in commercial. While the economic and regulatory environments remain uncertain, Fifth Third has spent nearly a decade focused on positioning the bank to outperform peers through the cycle. We will continue to follow our guiding principles of stability, profitability, and growth – in that order.

                            
Investor contact: Chris Doll (513) 534-2345 | Media contact: Jennifer Hendricks Sullivan (614) 744-7693 October 19, 2023

        
Income Statement Highlights
($ in millions, except per share data)For the Three Months Ended% Change
SeptemberJuneSeptember
202320232022SeqYr/Yr
Condensed Statements of Income
Net interest income (NII)(a)
$1,445$1,463$1,502(1)%(4)%
Provision for credit losses119177158(33)%(25)%
Noninterest income715726672(2)%6%
Noninterest expense1,1881,2311,167(3)%2%
Income before income taxes(a)
$853$781$8499%—
Taxable equivalent adjustment$7$6$417%75%
Applicable income tax expense1861741927%(3)%
Net income$660$601$65310%1%
Dividends on preferred stock373922(5)%68%
Net income available to common shareholders$623$562$63111%(1)%
Earnings per share, diluted$0.91$0.82$0.9111%—
Fifth Third Bancorp (NASDAQ®: FITB) today reported third quarter 2023 net income of $660 million compared to net income of $601 million in the prior quarter and $653 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $623 million, or $0.91 per diluted share, compared to $562 million, or $0.82 per diluted share, in the prior quarter and $631 million, or $0.91 per diluted share, in the year-ago quarter.

Diluted earnings per share impact of certain item(s) - 3Q23
(after-tax impact(f); $ in millions, except per share data)
Valuation of Visa total return swap (noninterest income)$(8)
After-tax impact(f) of certain item(s)
$(8)
Diluted earnings per share impact of certain item(s)1
$(0.01)
1Diluted earnings per share impact reflects 687.059 million average diluted shares outstanding


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Net Interest Income
(FTE; $ in millions)(a)
For the Three Months Ended% Change
SeptemberJuneSeptember
202320232022SeqYr/Yr
Interest Income
Interest income$2,536 $2,376 $1,764 7%44%
Interest expense1,09191326219%316%
Net interest income (NII)$1,445 $1,463 $1,502 (1)%(4)%
Average Yield/Rate Analysisbps Change
Yield on interest-earning assets5.23 %5.04 %3.78 %19145
Rate paid on interest-bearing liabilities3.10 %2.72 %0.87 %38223
Ratios
Net interest rate spread2.13 %2.32 %2.91 %(19)(78)
Net interest margin (NIM)2.98 %3.10 %3.22 %(12)(24)
Balance sheet actions continued to reflect a defensive positioning given the uncertain economic and regulatory environments. NII decreased $18 million, or 1%, compared to the prior quarter. Actions undertaken during the quarter include reducing risk-weighted assets, issuing long-term debt, securitizing an automobile loan portfolio, and continued strategies to generate core deposit growth, which resulted in a strong liquidity position. The costs associated with the deposit growth were partially offset by improved loan yields from higher market rates and the impact of day count. Compared to the prior quarter, NIM decreased 12 bps, primarily reflecting the aforementioned deposit dynamics and the impact of day count, partially offset by higher loan yields. NIM results continue to be impacted by the decision to carry additional liquidity, with the combination of cash and due from banks and other short-term investments reaching approximately $22 billion at quarter-end.
Compared to the year-ago quarter, NII decreased $57 million, or 4%, reflecting the impact of the deposit mix shift from demand to interest-bearing accounts and continued deposit repricing dynamics, partially offset by higher loan yields. Compared to the year-ago quarter, NIM decreased 24 bps, reflecting the aforementioned deposit dynamics and the decision to carry additional liquidity, partially offset by higher loan yields and higher investment portfolio yields.

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Noninterest Income
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202320232022SeqYr/Yr
Noninterest Income
Service charges on deposits$149$144$1433%4%
Commercial banking revenue1541461345%15%
Mortgage banking net revenue575969(3)%(17)%
Wealth and asset management revenue1451431411%3%
Card and processing revenue104106105(2)%(1)%
Leasing business revenue58476023%(3)%
Other noninterest income557459(26)%(7)%
Securities (losses) gains, net(7)7(38)NM(82)%
Securities losses, net - non-qualifying hedges
   on mortgage servicing rights——(1)NM(100)%
Total noninterest income$715$726$672(2)%6%
Reported noninterest income decreased $11 million, or 2%, from the prior quarter, and increased $43 million, or 6%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans.

Noninterest Income excluding certain items
($ in millions)For the Three Months Ended
SeptemberJuneSeptember% Change
202320232022SeqYr/Yr
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)$715 $726 $672 
Valuation of Visa total return swap103017
Securities (gains)/losses, net7(7)38
Noninterest income excluding certain items(a)
$732 $749 $727(2)%1% 
Noninterest income excluding certain items decreased $17 million, or 2%, from the prior quarter, and increased $5 million, or 1%, from the year-ago quarter.
Compared to the prior quarter, service charges on deposits increased $5 million, or 3%, reflecting an increase in both commercial treasury management and consumer deposit fees. Commercial banking revenue increased $8 million, or 5%, primarily reflecting higher M&A advisory revenue and institutional brokerage revenue, partially offset by a decrease in client financial risk management revenue. Mortgage banking net revenue decreased $2 million, or 3%, primarily reflecting a decrease in origination fees and gains on loan sales, partially offset by a decrease in MSR asset decay. Wealth and asset management revenue increased $2 million, or 1%, primarily driven by higher personal asset management revenue. Card and processing revenue decreased $2 million, or 2%, driven by lower interchange revenue. Leasing business revenue increased $11 million, or 23%, primarily reflecting higher lease remarketing revenue. The decrease in other noninterest income was primarily due to strong equity fund and direct investment income in the prior quarter.
Compared to the year-ago quarter, service charges on deposits increased $6 million, or 4%, reflecting an increase in both commercial treasury management and consumer deposit fees. Commercial banking revenue increased $20 million, or 15%, primarily driven by increased corporate bond fees, loan syndication revenue, and institutional brokerage revenue. Mortgage banking net revenue decreased $12 million, or 17%, primarily reflecting lower origination fees and gains on loan sales, as well as an increase in MSR asset decay. Wealth and asset management revenue increased $4 million, or 3%,
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driven by higher personal asset management revenue. Card and processing revenue decreased $1 million, or 1%, driven by higher rewards partially offset by higher interchange revenue. Leasing business revenue decreased $2 million, or 3%, primarily reflecting lower operating lease revenue.
Noninterest Expense
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202320232022SeqYr/Yr
Noninterest Expense
Compensation and benefits$629 $650 $605 (3)%4%
Net occupancy expense8483741%14%
Technology and communications1151141061%8%
Equipment expense3736363%3%
Card and processing expense2120215%—
Leasing business expense293133(6)%(12)%
Marketing expense35313513%—
Other noninterest expense238266257(11)%(7)%
Total noninterest expense$1,188 $1,231 $1,167 (3)%2%

Reported noninterest expense decreased $43 million, or 3%, from the prior quarter, and increased $21 million, or 2%, from the year-ago quarter. The reported results reflect the impact of a certain item in the table below.
Noninterest Expense excluding certain item(s)
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202320232022SeqYr/Yr
Noninterest Expense excluding certain item(s)
Noninterest expense (U.S. GAAP)$1,188 $1,231 $1,167 
Restructuring severance expense—(12)—
Noninterest expense excluding certain item(s)(a)
$1,188 $1,219 $1,167(3)%2%

Compared to the prior quarter, noninterest expense excluding certain items decreased $31 million, or 3%, primarily driven by decreases in compensation and benefits expense and other noninterest expense reflecting overall expense discipline, partially offset by higher marketing expense. Noninterest expense in the current quarter included a $5 million benefit related to the impact of non-qualified deferred compensation mark-to-market compared to a $10 million expense in the prior quarter (both of which were largely offset in net securities gains/losses through noninterest income).
Compared to the year-ago quarter, noninterest expense increased $21 million, or 2%, primarily driven by higher compensation and benefits expense, net occupancy expense, and technology and communications expense related to continued modernization investments, partially offset by lower other noninterest expense. The year-ago quarter included a $7 million benefit to noninterest expense related to the impact of non-qualified deferred compensation mark-to-market (which was largely offset in net securities losses through noninterest income).
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Average Interest-Earning Assets
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202320232022SeqYr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans$57,001 $58,137 $56,646 (2)%1%
Commercial mortgage loans11,21611,37310,751(1)%4%
Commercial construction loans5,5395,5355,557——
Commercial leases2,6162,7002,792(3)%(6)%
Total commercial loans and leases$76,372$77,745$75,746(2)%1%
Consumer loans:
Residential mortgage loans$17,400$17,517$17,617(1)%(1)%
Home equity3,8973,9373,956(1)%(1)%
Indirect secured consumer loans15,78716,28116,750(3)%(6)%
Credit card1,8081,7831,7561%3%
Other consumer loans6,3666,0643,8195%67%
Total consumer loans$45,258$45,582$43,898(1)%3%
Total average portfolio loans and leases$121,630 $123,327 $119,644 (1)%2%
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$17$19$3(11)%467%
Consumer loans held for sale6196412,253(3)%(73)%
Total average loans and leases held for sale$636$660$2,256(4)%(72)%
Total average loans and leases$122,266$123,987$121,900(1)%—
Securities (taxable and tax-exempt)$56,994$57,267$57,713—(1)%
Other short-term investments12,9567,8065,76566%125%
Total average interest-earning assets$192,216$189,060$185,3782%4%
Compared to the prior quarter, total average portfolio loans and leases decreased 1%, reflecting the aforementioned reduction in risk-weighted assets initiative which impacted both commercial and consumer portfolios. Average commercial portfolio loans and leases decreased 2%, reflecting a decrease in commercial and industrial (C&I) loan balances. Average consumer portfolio loans decreased 1%, primarily reflecting a decrease in indirect secured consumer loan balances, partially offset by an increase in other consumer loan balances driven by Dividend Finance.
Compared to the year-ago quarter, total average portfolio loans and leases increased 2%, reflecting an increase in both commercial and consumer portfolios. Average commercial portfolio loans and leases increased 1%, primarily reflecting an increase in commercial mortgage loan balances and C&I loan balances, partially offset by a decrease in commercial lease balances. Average consumer portfolio loans increased 3%, primarily reflecting an increase in other consumer loan balances driven by Dividend Finance, partially offset by a decrease in indirect secured consumer loan balances and residential mortgage loan balances.
Average loans and leases held for sale were $0.6 billion in the current quarter compared to $0.7 billion in the prior quarter and $2.3 billion in the year-ago quarter.
Average securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter were flat compared to the prior quarter and decreased $1 billion, or 1%, compared to the year-ago quarter. Average other short-term investments (including interest-bearing cash) of $13 billion in the current quarter increased $5 billion, or 66%, compared to the prior quarter and increased $7 billion, or 125%, compared to the year-ago quarter.
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Total period-end commercial portfolio loans and leases of $75 billion decreased 2% compared to the prior quarter, primarily reflecting a decrease in C&I loan balances. Compared to the year-ago quarter, total period-end commercial portfolio loans and leases decreased 1%, primarily reflecting a decrease in C&I loan balances and commercial lease balances, partially offset by an increase in commercial mortgage loan balances. Period-end commercial revolving line utilization was 36%, compared to 35% in the prior quarter and 37% in the year-ago quarter.
Total period-end consumer portfolio loans of $45 billion decreased 1% compared to the prior quarter, primarily reflecting a decrease in indirect secured consumer loan balances and residential mortgage loan balances, partially offset by an increase in other consumer loan balances driven by Dividend Finance. Compared to the year-ago quarter, total period-end consumer portfolio loans increased 2%, primarily driven by an increase in other consumer loan balances driven by Dividend Finance, partially offset by a decrease in indirect secured consumer loans and residential mortgage loan balances.
Total period-end securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter were stable compared to the prior quarter and decreased $1 billion, or 2%, compared to the year-ago quarter. Period-end other short-term investments of approximately $19 billion increased $8 billion, or 73%, compared to the prior quarter, and increased $12 billion, or 187%, compared to the year-ago quarter.
Average Deposits
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202320232022SeqYr/Yr
Average Deposits
Demand$44,228 $46,520 $59,535 (5)%(26)%
Interest checking53,10950,47242,5745%25%
Savings20,51121,67523,814(5)%(14)%
Money market32,07228,91329,06611%10%
Foreign office(g)
16814320617%(18)%
Total transaction deposits$150,088$147,723$155,1952%(3)%
CDs $250,000 or less9,6307,7592,04824%370%
Total core deposits$159,718$155,482$157,2433%2%
CDs over $250,000 5,9265,3752,22610%166%
Total average deposits$165,644 $160,857 $159,469 3%4%
CDs over $250,000 includes $5.2BN, $4.9BN, and $2.1BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 9/30/23, 6/30/23, and 9/30/22, respectively.
Compared to the prior quarter, total average deposits increased 3%, as increases in money market and interest checking account balances were partially offset by a decrease in demand account balances. Average demand deposits represented 28% of total core deposits in the current quarter, compared to 30% in the prior quarter. Compared to the prior quarter, average consumer segment deposits increased 2%, average commercial segment deposits increased 4%, and average wealth & asset management segment deposits decreased 2% reflecting clients' alternative investment options. Period-end total deposits increased 2% compared to the prior quarter.
Compared to the year-ago quarter, total average deposits increased 4%, primarily reflecting an increase in interest checking and time deposit balances, partially offset by a decrease in demand account balances. Period-end total deposits increased 4% compared to the year-ago quarter.
The period end portfolio loan-to-core deposit ratio was 74% in the current quarter, compared to 77% in the prior quarter and 75% in the year-ago quarter. Estimated uninsured deposits were approximately $68 billion, or 41% of total deposits, as of quarter end.
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Average Wholesale Funding
($ in millions)For the Three Months Ended% Change
SeptemberJuneSeptember
202320232022SeqYr/Yr
Average Wholesale Funding
CDs over $250,000$5,926 $5,375 $2,226 10%166%
Federal funds purchased181376607(52)%(70)%
Securities sold under repurchase agreements352361472(2)%(25)%
FHLB advances3,7266,5896,608(43)%(44)%
Derivative collateral and other secured borrowings81793563%(77)%
Long-term debt14,02312,84811,7969%19%
Total average wholesale funding$24,289$25,628$22,065(5)%10%
CDs over $250,000 includes $5.2BN, $4.9BN, and $2.1BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 9/30/23, 6/30/23, and 9/30/22, respectively.
Compared to the prior quarter, average wholesale funding decreased 5%, primarily reflecting a decrease in FHLB advances, partially offset by an increase in long-term debt (driven by the aforementioned long-term debt issuance and an automobile loan portfolio securitization), and CDs over $250,000 (which consists primarily of retail brokered CDs which are fully covered by FDIC insurance). Compared to the year-ago quarter, average wholesale funding increased 10%, primarily reflecting an increase in CDs over $250,000 and long-term debt, partially offset by a decrease in FHLB advances.
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Credit Quality Summary
($ in millions)As of and For the Three Months Ended
SeptemberJuneMarchDecemberSeptember
20232023202320222022
Total nonaccrual portfolio loans and leases (NPLs)$570$629$593$515$522
Repossessed property118866
OREO3124221818
Total nonperforming portfolio loans and leases and OREO (NPAs)$612$661$623$539$546
NPL ratio(h)
0.47 %0.52 %0.48 %0.42 %0.44 %
NPA ratio(c)
0.51 %0.54 %0.51 %0.44 %0.46 %
Portfolio loans and leases 30-89 days past due (accrual)$316$339$317$364$335
Portfolio loans and leases 90 days past due (accrual)2951464059
30-89 days past due as a % of portfolio loans and leases0.26 %0.28 %0.26 %0.30 %0.28 %
90 days past due as a % of portfolio loans and leases0.02 %0.04 %0.04 %0.03 %0.05 %
Allowance for loan and lease losses (ALLL), beginning$2,327 $2,215 $2,194 $2,099 $2,014 
Impact of adoption of ASU 2022-02——(49)——
Total net losses charged-off(124)(90)(78)(68)(62)
Provision for loan and lease losses137202148163147
ALLL, ending$2,340$2,327$2,215$2,194$2,099
Reserve for unfunded commitments, beginning$207$232$216$199$188
(Benefit from) provision for the reserve for unfunded commitments(18)(25)161711
Reserve for unfunded commitments, ending$189$207$232$216$199
Total allowance for credit losses (ACL)$2,529 $2,534 $2,447 $2,410 $2,298 
ACL ratios:
As a % of portfolio loans and leases2.11 % 2.08 % 1.99 % 1.98 % 1.91 % 
As a % of nonperforming portfolio loans and leases443 % 403 % 413 % 468 % 440 % 
As a % of nonperforming portfolio assets413 % 383 % 393 % 447 % 420 % 
ALLL as a % of portfolio loans and leases1.95 %1.91 %1.80 %1.81 %1.75 %
Total losses charged-off$(158)$(121)$(110)$(103)$(104)
Total recoveries of losses previously charged-off3431323542
Total net losses charged-off$(124)$(90)$(78)$(68)$(62)
Net charge-off ratio (NCO ratio)(b)
0.41 %0.29 %0.26 %0.22 %0.21 %
Commercial NCO ratio0.34 %0.16 %0.17 %0.13 %0.17 %
Consumer NCO ratio0.53 %0.50 %0.42 %0.38 %0.28 %
Nonperforming portfolio loans and leases were $570 million in the current quarter, with the resulting NPL ratio of 0.47%. Compared to the prior quarter, NPLs decreased $59 million with the NPL ratio decreasing 5 bps. Compared to the year-ago quarter, NPLs increased $48 million with the NPL ratio increasing 3 bps.
Nonperforming portfolio assets were $612 million in the current quarter, with the resulting NPA ratio of 0.51%. Compared to the prior quarter, NPAs decreased $49 million with the NPA ratio decreasing 3 bps. Compared to the year-ago quarter, NPAs increased $66 million with the NPA ratio increasing 5 bps.
The provision for credit losses totaled $119 million in the current quarter. The allowance for credit loss ratio represented 2.11% of total portfolio loans and leases at quarter end, compared with 2.08% for the prior quarter end and 1.91% for the
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year-ago quarter end. In the current quarter, the allowance for credit losses represented 443% of nonperforming portfolio loans and leases and 413% of nonperforming portfolio assets.
Net charge-offs were $124 million in the current quarter, resulting in an NCO ratio of 0.41%. Compared to the prior quarter, net charge-offs increased $34 million and the NCO ratio increased 12 bps. Commercial net charge-offs were $64 million, resulting in a commercial NCO ratio of 0.34%, which increased 18 bps compared to the prior quarter. Consumer net charge-offs were $60 million, resulting in a consumer NCO ratio of 0.53%, which increased 3 bps compared to the prior quarter.
Compared to the year-ago quarter, net charge-offs increased $62 million and the NCO ratio increased 20 bps, reflecting a normalization from near-historically low net charge-offs in the year-ago quarter. The commercial NCO ratio increased 17 bps compared to the prior year, and the consumer NCO ratio increased 25 bps compared to the prior year.

Capital Position
As of and For the Three Months Ended
SeptemberJuneMarchDecemberSeptember
20232023202320222022
Capital Position
Average total Bancorp shareholders' equity as a % of average assets
8.30 %8.90%8.77%8.18%9.13 %
Tangible equity(a)
8.46 %8.58%8.39%8.31%8.18 %
Tangible common equity (excluding AOCI)(a)
7.49 %7.57%7.38%7.30%7.16 %
Tangible common equity (including AOCI)(a)
4.51 %5.26%5.49%5.00%4.75 %
Regulatory Capital Ratios(d)(e)
CET1 capital
9.80 %9.49%9.28%9.28%9.14 %
Tier 1 risk-based capital
11.05 %10.73%10.53%10.53%10.40 %
Total risk-based capital
13.12 %12.83%12.64%12.79%12.64 %
Leverage8.85 %8.81%8.67%8.56%8.44 %
The CET1 capital ratio was 9.80%, the Tangible common equity to tangible assets ratio was 7.49% excluding AOCI, and 4.51% including AOCI. The Tier 1 risk-based capital ratio was 11.05%, the Total risk-based capital ratio was 13.12%, and the Leverage ratio was 8.85%. Fifth Third did not execute share repurchases in the third quarter of 2023.
Fifth Third increased its quarterly cash dividend on its common shares by $0.02, or 6%, to $0.35 per share for the third quarter of 2023.
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Tax Rate
The effective tax rate for the quarter was 22.0% compared with 22.5% in the prior quarter and 22.7% in the year-ago quarter.
Conference Call
Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Us” then “Investor Relations”). Those unable to listen to the live webcast may access a webcast replay through the Fifth Third Investor Relations website at the same web address, which will be available for 30 days.
Corporate Profile
Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people, and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere's World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.

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

Earnings Release End Notes
(a)Non-GAAP measure; see discussion of non-GAAP reconciliation beginning on page 27.
(b)Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis.
(c)Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.
(d)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(e)Current period regulatory capital ratios are estimated.
(f)Assumes a 23% tax rate.
(g)Includes commercial customer Eurodollar sweep balances for which the Bank pays rates comparable to other commercial deposit accounts.
(h)Nonperforming portfolio loans and leases as a percent of portfolio loans and leases.




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FORWARD-LOOKING STATEMENTS

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

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

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.
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12

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Quarterly Financial Review for September 30, 2023

Table of Contents


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


13


Fifth Third Bancorp and Subsidiaries
Financial HighlightsAs of and For the Three Months Ended% / bps% / bps
$ in millions, except per share dataChangeYear to DateChange
(unaudited)SeptemberJuneSeptemberSeptemberSeptember
202320232022SeqYr/Yr20232022Yr/Yr
Income Statement Data
Net interest income$1,438$1,457$1,498(1%)(4%)$4,411$4,0329%
Net interest income (FTE)(a)
1,4451,4631,502(1%)(4%)4,4294,04310%
Noninterest income715726672(2%)6%2,1372,0315%
Total revenue (FTE)(a)
2,1602,1892,174(1%)(1%)6,5666,0748%
Provision for credit losses119177158(33%)(25%)46038320%
Noninterest expense1,1881,2311,167(3%)2%3,7503,5017%
Net income66060165310%1%1,8191,7096%
Net income available to common shareholders62356263111%(1%)1,7191,6315%
Earnings Per Share Data
Net income allocated to common shareholders$623$562$63111%(1%)$1,719$1,6305%
Average common shares outstanding (in thousands):
Basic684,224684,029689,278—(1%)684,091688,618(1%)
Diluted687,059686,386694,593—(1%)687,661695,207(1%)
Earnings per share, basic$0.91$0.82$0.9111%—$2.51$2.376%
Earnings per share, diluted0.910.820.9111%—2.502.347%
Common Share Data
Cash dividends per common share$0.35$0.33$0.336%6%$1.01$0.939%
Book value per share21.1923.0521.30(8%)(1%)21.1921.30(1%)
Market value per share25.3326.2131.96(3%)(21%)25.3331.96(21%)
Common shares outstanding (in thousands)680,990680,850686,343—(1%)680,990686,343(1%)
Market capitalization$17,249$17,845$21,936(3%)(21%)$17,249$21,936(21%)
Financial Ratios
Return on average assets1.26 %1.17 %1.25 %911.18 %1.10 %8
Return on average common equity16.3 %13.9 %14.9 %24014014.6 %12.3 %230
Return on average tangible common equity(a)
24.7 %20.5 %21.9 %42028021.8 %17.3 %450
Noninterest income as a percent of total revenue(a)
33 %33 %31 %—20033 %33 %—
Dividend payout38.5 %40.2 %36.3 %(170)22040.2 %39.2 %100
Average total Bancorp shareholders’ equity as a percent of average assets
8.30 %8.90 %9.13 %(60)(83)8.65 %9.57 %(92)
Tangible common equity(a)
7.49 %7.57 %7.16 %(8)337.49 %7.16 %33
Net interest margin (FTE)(a)
2.98 %3.10 %3.22 %(12)(24)3.12 %2.91 %21
Efficiency (FTE)(a)
55.0 %56.2 %53.7 %(120)13057.1 %57.6 %(50)
Effective tax rate22.0 %22.5 %22.7 %(50)(70)22.2 %21.6 %60
Credit Quality
Net losses charged-off$124$90$6238 %100 %$292$15984 %
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.41 %0.29 %0.21 %12200.32 %0.18 %14
ALLL as a percent of portfolio loans and leases1.95 %1.91 %1.75 %4201.95 %1.75 %20
ACL as a percent of portfolio loans and leases(g)
2.11 %2.08 %1.91 %3202.11 %1.91 %20
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.51 0.54 %0.46 %(3)50.51 0.46 %5
Average Balances
Loans and leases, including held for sale$122,266$123,987$121,900(1%)—$123,284$119,7843%
Securities and other short-term investments69,95065,07363,4787%10%66,29466,099—
Assets208,385206,079206,6881%1%206,528207,236—
Transaction deposits(b)
150,088147,723155,1952%(3%)149,641160,381(7%)
Core deposits(c)
159,718155,482157,2433%2%157,178162,586(3%)
Wholesale funding(d)
24,28925,62822,065(5%)10%24,54816,84246%
Bancorp shareholders' equity
17,30518,34418,864(6%)(8%)17,87319,829(10%)
Regulatory Capital Ratios(e)(f)
CET1 capital
9.80 %9.49 %9.14 %31669.80 %9.14 %66
Tier 1 risk-based capital
11.05 %10.73 %10.40 %326511.05 %10.40 %65
Total risk-based capital
13.12 %12.83 %12.64 %294813.12 %12.64 %48
Leverage8.85 %8.81 %8.44 %4418.85 %8.44 %41
Additional Metrics
Banking centers1,0731,0721,080—(1%)1,0731,080(1%)
ATMs2,1012,1142,146(1%)(2%)2,1012,146(2%)
Full-time equivalent employees18,80419,22519,187(2%)(2%)18,80419,187(2%)
Assets under care ($ in billions)(h)
$547$554$494(1%)11%$547$49411%
Assets under management ($ in billions)(h)
575952(3%)10%575210%
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
14

(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)Assets under management and assets under care include trust and brokerage assets.
Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share dataAs of and For the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20232023202320222022
Income Statement Data
Net interest income$1,438$1,457$1,517$1,577$1,498
Net interest income (FTE)(a)
1,4451,4631,5221,5821,502
Noninterest income715726696735672
Total revenue (FTE)(a)
2,1602,1892,2182,3172,174
Provision for credit losses119177164180158
Noninterest expense1,1881,2311,3311,2181,167
Net income660601558737653
Net income available to common shareholders623562535699631
Earnings Per Share Data
Net income allocated to common shareholders$623$562$535$698$631
Average common shares outstanding (in thousands):
Basic684,224684,029684,017688,680689,278
Diluted687,059686,386689,566694,195694,593
Earnings per share, basic$0.91$0.82$0.78$1.01$0.91
Earnings per share, diluted0.910.820.781.010.91
Common Share Data
Cash dividends per common share$0.35$0.33$0.33$0.33$0.33
Book value per share21.1923.0523.8722.2621.30
Market value per share25.3326.2126.6432.8131.96
Common shares outstanding (in thousands)680,990680,850680,537683,386686,343
Market capitalization$17,249$17,845$18,129$22,422$21,936
Financial Ratios
Return on average assets1.26 %1.17 %1.10 %1.42 %1.25 %
Return on average common equity16.3 %13.9 %13.7 %18.8 %14.9 %
Return on average tangible common equity(a)
24.7 %20.5 %20.5 %29.2 %21.9 %
Noninterest income as a percent of total revenue(a)
33 %33 %31 %32 %31 %
Dividend payout38.5 %40.2 %42.3 %32.7 %36.3 %
Average total Bancorp shareholders’ equity as a percent of average assets
8.30 %8.90 %8.77 %8.18 %9.13 %
Tangible common equity(a)
7.49 %7.57 %7.38 %7.30 %7.16 %
Net interest margin (FTE)(a)
2.98 %3.10 %3.29 %3.35 %3.22 %
Efficiency (FTE)(a)
55.0 %56.2 %60.0 %52.6 %53.7 %
Effective tax rate22.0 %22.5 %22.3 %19.4 %22.7 %
Credit Quality
Net losses charged-off$124$90$78$68$62
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.41 %0.29 %0.26 %0.22 %0.21 %
ALLL as a percent of portfolio loans and leases1.95 %1.91 %1.80 %1.81 %1.75 %
ACL as a percent of portfolio loans and leases(g)
2.11 %2.08 %1.99 %1.98 %1.91 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO0.51 %0.54 %0.51 %0.44 %0.46 %
Average Balances
Loans and leases, including held for sale$122,266$123,987$123,615$122,866$121,900
Securities and other short-term investments69,95065,07363,79264,77463,478
Assets208,385206,079205,084206,017206,688
Transaction deposits(b)
150,088147,723151,124154,747155,195
Core deposits(c)
159,718155,482156,297157,495157,243
Wholesale funding(d)
24,28925,62823,72023,44522,065
Bancorp shareholders’ equity
17,30518,34417,97716,85718,864
Regulatory Capital Ratios(e)(f)
CET1 capital
9.80 %9.49 %9.28 %9.28 %9.14 %
Tier 1 risk-based capital11.05 %10.73 %10.53 %10.53 %10.40 %
Total risk-based capital
13.12 %12.83 %12.64 %12.79 %12.64 %
Leverage8.85 %8.81 %8.67 %8.56 %8.44 %
Additional Metrics
Banking centers1,0731,0721,0691,0871,080
ATMs2,1012,1142,1182,1322,146
Full-time equivalent employees18,80419,22519,47419,31919,187
Assets under care ($ in billions)(h)
$547$554$542$510$494
Assets under management ($ in billions)(h)
5759575552
(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)Assets under management and assets under care include trust and brokerage assets.
15

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended% ChangeYear to Date% Change
(unaudited)SeptemberJuneSeptemberSeptemberSeptember
202320232022SeqYr/Yr20232022Yr/Yr
Interest Income
Interest and fees on loans and leases$1,899$1,831$1,3154%44%$5,445$3,37761%
Interest on securities4444374142%7%1,3201,07723%
Interest on other short-term investments1861023182%500%34858500%
Total interest income2,5292,3701,7607%44%7,1134,51258%
Interest Expense
Interest on deposits84465511229%654%1,977147NM
Interest on federal funds purchased253(60%)(33%)134225%
Interest on other short-term borrowings529043(42%)21%19956255%
Interest on long-term debt19316310418%86%51327388%
Total interest expense1,09191326219%316%2,702480463%
Net Interest Income1,4381,4571,498(1%)(4%)4,4114,0329%
Provision for credit losses119177158(33%)(25%)46038320%
Net Interest Income After Provision for Credit Losses1,3191,2801,3403%(2%)3,9513,6498
Noninterest Income
Service charges on deposits1491441433%4%431449(4%)
Commercial banking revenue1541461345%15%46140614%
Mortgage banking net revenue575969(3%)(17%)18415221%
Wealth and asset management revenue1451431411%3%4344301%
Card and processing revenue104106105(2%)(1%)3103061%
Leasing business revenue58476023%(3%)162179(9%)
Other noninterest income557459(26%)(7%)152195(22%)
Securities gains (losses), net(7)7(38)NM(82%)3(84)NM
Securities losses, net - non-qualifying hedges on mortgage servicing rights——(1)NM(100%)—(2)(100%)
Total noninterest income715726672(2%)6%2,1372,0315%
Noninterest Expense
Compensation and benefits629650605(3%)4%2,0361,9007%
Net occupancy expense8483741%14%24822510%
Technology and communications1151141061%8%34730613%
Equipment expense3736363%3%1101082%
Card and processing expense2120215%—63597%
Leasing business expense293133(6%)(12%)9495(1%)
Marketing expense35313513%—968710%
Other noninterest expense238266257(11%)(7%)7567215%
Total noninterest expense1,1881,2311,167(3%)2%3,7503,5017%
Income Before Income Taxes8467758459%—2,3382,1797%
Applicable income tax expense1861741927%(3%)51947010%
Net Income66060165310%1%1,8191,7096%
Dividends on preferred stock373922(5%)68%1007828%
Net Income Available to Common Shareholders$623$562$63111%(1%)$1,719$1,6315%
16

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20232023202320222022
Interest Income
Interest and fees on loans and leases$1,899$1,831$1,714$1,577$1,315
Interest on securities444437439440414
Interest on other short-term investments186102605831
Total interest income2,5292,3702,2132,0751,760
Interest Expense
Interest on deposits844655478300112
Interest on federal funds purchased25523
Interest on other short-term borrowings5290575343
Interest on long-term debt193163156143104
Total interest expense1,091913696498262
Net Interest Income1,4381,4571,5171,5771,498
Provision for credit losses119177164180158
Net Interest Income After Provision for Credit Losses1,3191,2801,3531,3971,340
Noninterest Income
Service charges on deposits149144137140143
Commercial banking revenue154146161158134
Mortgage banking net revenue5759696369
Wealth and asset management revenue145143146139141
Card and processing revenue104106100103105
Leasing business revenue5847575860
Other noninterest income5574227259
Securities (losses) gains, net(7)742(38)
Securities losses, net - non-qualifying hedges on mortgage servicing rights————(1)
Total noninterest income715726696735672
Noninterest Expense
Compensation and benefits629650757655605
Net occupancy expense8483818274
Technology and communications115114118111106
Equipment expense3736373736
Card and processing expense2120222121
Leasing business expense2931343633
Marketing expense3531293135
Other noninterest expense238266253245257
Total noninterest expense1,1881,2311,3311,2181,167
Income Before Income Taxes846775718914845
Applicable income tax expense186174160177192
Net Income660601558737653
Dividends on preferred stock3739233822
Net Income Available to Common Shareholders$623$562$535$699$631
17

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of% Change
(unaudited)SeptemberJuneSeptember
202320232022SeqYr/Yr
Assets
Cash and due from banks$2,837$2,594$3,0689%(8%)
Other short-term investments18,92310,9436,59473%187%
Available-for-sale debt and other securities(a)
47,89349,32951,289(3%)(7%)
Held-to-maturity securities(b)
225—(60%)
Trading debt securities1,2221,1394147%195%
Equity securities250331315(24%)(21%)
Loans and leases held for sale6147601,940(19%)(68%)
Portfolio loans and leases:
  Commercial and industrial loans55,79056,89756,437(2%)(1%)
  Commercial mortgage loans11,12211,31010,947(2%)2%
  Commercial construction loans5,5825,4755,5732%—
  Commercial leases2,6242,6702,821(2%)(7%)
Total commercial loans and leases75,11876,35275,778(2%)(1%)
  Residential mortgage loans17,29317,50317,600(1%)(2%)
  Home equity3,8983,9114,000—(3%)
  Indirect secured consumer loans15,43416,09716,646(4%)(7%)
  Credit card1,8171,8181,770—3%
  Other consumer loans6,5286,2104,2055%55%
Total consumer loans44,97045,53944,221(1%)2%
Portfolio loans and leases120,088121,891119,999(1%)—
Allowance for loan and lease losses(2,340)(2,327)(2,099)1%11%
Portfolio loans and leases, net117,748119,564117,900(2%)—
Bank premises and equipment2,3032,2752,1551%7%
Operating lease equipment480537612(11%)(22%)
Goodwill4,9194,9194,925——
Intangible assets136146181(7%)(25%)
Servicing rights1,8221,7641,7323%5%
Other assets13,81812,97314,3337%(4%)
Total Assets$212,967$207,276$205,4633%4%
Liabilities
Deposits:
  Demand $43,844$45,264$57,601(3%)(24%)
  Interest checking 53,42152,74346,9851%14%
  Savings 20,19521,34223,771(5%)(15%)
  Money market 33,49230,01228,70712%17%
  Foreign office 168182185(8%)(9%)
  CDs $250,000 or less10,3068,8332,00717%414%
  CDs over $250,0006,2465,7522,3969%161%
Total deposits167,672164,128161,6522%4%
Federal funds purchased20516321226%(3%)
Other short-term borrowings6,0945,8176,3785%(4%)
Accrued taxes, interest and expenses1,8341,7651,5894%15%
Other liabilities5,8085,3167,1849%(19%)
Long-term debt14,81012,27811,71221%26%
Total Liabilities196,423189,467188,7274%4%
Equity
Common stock(c)
2,0512,0512,051——
Preferred stock2,1162,1162,116——
Capital surplus3,7333,7083,6601%2%
Retained earnings22,74722,36621,2192%7%
Accumulated other comprehensive loss(6,839)(5,166)(5,306)32%29%
Treasury stock(7,264)(7,266)(7,004)—4%
Total Equity16,54417,80916,736(7%)(1%)
Total Liabilities and Equity$212,967$207,276$205,4633%4%
(a) Amortized cost$55,557$55,399$57,372—(3%)
(b) Market values2 2 5 —(60%)
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,000——
Outstanding, excluding treasury680,990680,850686,343——
Treasury242,903243,042237,549——


18

Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share dataAs of
(unaudited)SeptemberJuneMarchDecemberSeptember
20232023202320222022
Assets
Cash and due from banks$2,837$2,594$2,780$3,466$3,068
Other short-term investments18,92310,9439,7948,3516,594
Available-for-sale debt and other securities(a)
47,89349,32950,71951,50351,289
Held-to-maturity securities(b)
22255
Trading debt securities1,2221,1391,174414414
Equity securities250331323317315
Loans and leases held for sale6147607491,0071,940
Portfolio loans and leases:
  Commercial and industrial loans55,79056,89757,72057,23256,437
  Commercial mortgage loans11,12211,31011,22811,02010,947
  Commercial construction loans5,5825,4755,5485,4335,573
  Commercial leases2,6242,6702,7432,7042,821
Total commercial loans and leases75,11876,35277,23976,38975,778
  Residential mortgage loans17,29317,50317,60817,62817,600
  Home equity3,8983,9113,9584,0394,000
  Indirect secured consumer loans15,43416,09716,48416,55216,646
  Credit card1,8171,8181,7611,8741,770
  Other consumer loans6,5286,2105,8074,9984,205
Total consumer loans44,97045,53945,61845,09144,221
Portfolio loans and leases120,088121,891122,857121,480119,999
Allowance for loan and lease losses(2,340)(2,327)(2,215)(2,194)(2,099)
Portfolio loans and leases, net117,748119,564120,642119,286117,900
Bank premises and equipment2,3032,2752,2192,1872,155
Operating lease equipment480537578627612
Goodwill4,9194,9194,9154,9154,925
Intangible assets136146157169181
Servicing rights1,8221,7641,7251,7461,732
Other assets13,81812,97312,88013,45914,333
Total Assets$212,967$207,276$208,657$207,452$205,463
Liabilities
Deposits:
  Demand $43,844$45,264$49,649$53,125$57,601
  Interest checking53,42152,74349,92451,65346,985
  Savings 20,19521,34222,56323,46923,771
  Money market 33,49230,01228,48228,22028,707
  Foreign office 168182134182185
CDs $250,000 or less10,3068,8336,6243,8092,007
CDs over $250,0006,2465,7525,5993,2322,396
Total deposits167,672164,128162,975163,690161,652
Federal funds purchased205163177180212
Other short-term borrowings6,0945,8177,3644,8386,378
Accrued taxes, interest and expenses1,8341,7651,5771,8221,589
Other liabilities5,8085,3165,3075,8817,184
Long-term debt14,81012,27812,89313,71411,712
Total Liabilities196,423189,467190,293190,125188,727
Equity
Common stock(c)
2,0512,0512,0512,0512,051
Preferred stock2,1162,1162,1162,1162,116
Capital surplus3,7333,7083,6823,6843,660
Retained earnings22,74722,36622,03221,68921,219
Accumulated other comprehensive loss(6,839)(5,166)(4,245)(5,110)(5,306)
Treasury stock(7,264)(7,266)(7,272)(7,103)(7,004)
Total Equity16,54417,80918,36417,32716,736
Total Liabilities and Equity$212,967$207,276$208,657$207,452$205,463
(a) Amortized cost$55,557$55,399$55,958$57,530$57,372
(b) Market values22255
(c) Common shares, stated value $2.22 per share (in thousands):
Authorized2,000,0002,000,0002,000,0002,000,0002,000,000
Outstanding, excluding treasury680,990680,850680,537683,386686,343
Treasury242,903243,042243,356240,507237,549
19

Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months EndedYear to Date
SeptemberSeptemberSeptemberSeptember
2023202220232022
Total Equity, Beginning$17,809$18,970$17,327$22,210
Impact of cumulative effect of change in accounting principle——37—
Net income6606531,8191,709
Other comprehensive income (loss), net of tax:
Change in unrealized gains (losses):
Available-for-sale debt securities(1,218)(2,129)(1,251)(5,566)
Qualifying cash flow hedges(455)(533)(479)(949)
Change in accumulated other comprehensive income related to employee benefit plans——12
Comprehensive income (loss)(1,013)(2,009)90(4,804)
Cash dividends declared:
Common stock(242)(230)(698)(648)
Preferred stock(37)(22)(100)(78)
Impact of stock transactions under stock compensation plans, net27278956
Shares acquired for treasury——(201)—
Total Equity, Ending$16,544$16,736$16,544$16,736
20

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisFor the Three Months Ended
$ in millionsSeptemberJuneSeptember
(unaudited)202320232022
AverageAverageAverageAverageAverageAverage
BalanceYield/RateBalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$57,0157.00 %$58,1526.78 %$56,6484.53 %
  Commercial mortgage loans(a)
11,2166.12 %11,3745.92 %10,7514.10 %
  Commercial construction loans(a)
5,5406.93 %5,5356.80 %5,5574.71 %
  Commercial leases(a)
2,6183.75 %2,7033.54 %2,7933.08 %
Total commercial loans and leases76,3896.75 %77,7646.54 %75,7494.42 %
  Residential mortgage loans18,0193.52 %18,1583.39 %19,8703.32 %
  Home equity3,8978.17 %3,9377.39 %3,9564.84 %
  Indirect secured consumer loans15,7874.43 %16,2814.19 %16,7503.34 %
  Credit card1,80814.09 %1,78313.93 %1,75612.89 %
  Other consumer loans6,3667.65 %6,0647.21 %3,8196.21 %
Total consumer loans45,8775.22 %46,2234.92 %46,1514.06 %
Total loans and leases122,2666.18 %123,9875.94 %121,9004.29 %
Securities:
Taxable securities55,5193.10 %55,7713.07 %56,5352.86 %
Tax exempt securities(a)
1,4753.21 %1,4963.19 %1,1782.77 %
Other short-term investments12,9565.69 %7,8065.24 %5,7652.15 %
Total interest-earning assets192,2165.23 %189,0605.04 %185,3783.78 %
Cash and due from banks2,5762,6223,162
Other assets15,92016,61320,163
Allowance for loan and lease losses(2,327)(2,216)(2,015)
Total Assets$208,385$206,079$206,688
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$53,1093.18 %$50,4722.81 %$42,5740.72 %
  Savings deposits20,5110.89 %21,6750.72 %23,8140.12 %
  Money market deposits32,0722.50 %28,9131.86 %29,0660.22 %
  Foreign office deposits1681.72 %1431.25 %2060.78 %
  CDs $250,000 or less9,6303.97 %7,7593.48 %2,0480.09 %
Total interest-bearing core deposits115,4902.65 %108,9622.19 %97,7080.41 %
  CDs over $250,0005,9264.91 %5,3754.53 %2,2261.90 %
Total interest-bearing deposits121,4162.76 %114,3372.30 %99,9340.44 %
  Federal funds purchased1815.31 %3765.11 %6072.10 %
  Securities sold under repurchase agreements3521.46 %3611.17 %4720.22 %
  FHLB advances3,7265.31 %6,5895.23 %6,6082.30 %
  Derivative collateral and other secured borrowings814.63 %7915.07 %3564.92 %
  Long-term debt14,0235.45 %12,8485.12 %11,7963.49 %
Total interest-bearing liabilities139,7793.10 %134,5902.72 %119,7730.87 %
Demand deposits44,22846,52059,535
Other liabilities7,0736,6258,516
Total Liabilities191,080187,735187,824
Total Equity17,30518,34418,864
Total Liabilities and Equity$208,385$206,079$206,688
Ratios:
  Net interest margin (FTE)(b)
2.98 %3.10 %3.22 %
  Net interest rate spread (FTE)(b)
2.13 %2.32 %2.91 %
  Interest-bearing liabilities to interest-earning assets72.72 %71.19 %64.61 %
(a) Average Yield/Rate of these assets are presented on an FTE basis.
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.









21

Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate AnalysisYear to Date
$ in millionsSeptemberSeptember
(unaudited)20232022
AverageAverageAverageAverage
BalanceYield/RateBalanceYield/Rate
Assets
Interest-earning assets:
Loans and leases:
  Commercial and industrial loans(a)
$57,7866.73 %$54,9073.82 %
  Commercial mortgage loans(a)
11,2375.87 %10,6643.49 %
  Commercial construction loans(a)
5,5276.74 %5,4293.91 %
  Commercial leases(a)
2,6613.59 %2,8582.95 %
Total commercial loans and leases77,2116.50 %73,8583.75 %
  Residential mortgage loans18,1683.43 %19,9813.20 %
  Home equity3,9467.34 %3,9534.06 %
  Indirect secured consumer loans16,2194.19 %17,0413.20 %
  Credit card1,79014.06 %1,71712.50 %
  Other consumer loans5,9507.29 %3,2346.10 %
Total consumer loans46,0734.95 %45,9263.83 %
Total loans and leases123,2845.92 %119,7843.78 %
Securities:
  Taxable securities56,1273.08 %50,5292.81 %
  Tax exempt securities(a)
1,4593.17 %1,0842.56 %
Other short-term investments8,7085.34 %14,4860.53 %
Total interest-earning assets189,5785.03 %185,8833.25 %
Cash and due from banks2,7763,081
Other assets16,40520,211
Allowance for loan and lease losses(2,231)(1,939)
Total Assets$206,528$207,236
Liabilities
Interest-bearing liabilities:
  Interest checking deposits$50,7822.79 %$45,1720.30 %
  Savings deposits21,7550.73 %23,4350.06 %
  Money market deposits29,8151.88 %29,5330.10 %
  Foreign office deposits1511.63 %1570.39 %
  CDs $250,000 or less7,5373.51 %2,2050.10 %
Total interest-bearing core deposits110,0402.19 %100,5020.18 %
  CDs over $250,0005,2224.57 %1,0551.64 %
Total interest-bearing deposits115,2622.29 %101,5570.19 %
  Federal funds purchased3474.89 %4211.31 %
  Securities sold under repurchase agreements3471.13 %4840.10 %
  FHLB advances5,0355.00 %3,1412.04 %
  Derivative collateral and other secured borrowings1347.43 %3652.70 %
  Long-term debt13,4635.09 %11,3763.21 %
Total interest-bearing liabilities134,5882.68 %117,3440.55 %
Demand deposits47,13862,084
Other liabilities6,9297,979
Total Liabilities188,655187,407
Total Equity17,87319,829
Total Liabilities and Equity$206,528$207,236
Ratios:
  Net interest margin (FTE)(b)
3.12 %2.91 %
  Net interest rate spread (FTE)(b)
2.35 %2.70 %
  Interest-bearing liabilities to interest-earning assets70.99 %63.13 %
(a) Average Yield/Rate of these assets are presented on an FTE basis.
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.

22

Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20232023202320222022
Average Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$57,001$58,137$58,149$57,646$56,646
  Commercial mortgage loans11,21611,37311,12110,89810,751
  Commercial construction loans5,5395,5355,5075,5445,557
  Commercial leases2,6162,7002,6622,7362,792
Total commercial loans and leases76,37277,74577,43976,82475,746
Consumer loans:
  Residential mortgage loans17,40017,51717,58117,57717,617
  Home equity3,8973,9374,0054,0243,956
  Indirect secured consumer loans15,78716,28116,59816,53616,750
  Credit card1,8081,7831,7801,7951,756
  Other consumer loans6,3666,0645,4094,6153,819
Total consumer loans45,25845,58245,37344,54743,898
Total average portfolio loans and leases$121,630$123,327$122,812$121,371$119,644
Average Loans and Leases Held for Sale
Commercial loans and leases held for sale$17$19$56$84$3
Consumer loans held for sale6196417471,4112,253
Average loans and leases held for sale$636$660$803$1,495$2,256
End of Period Portfolio Loans and Leases
Commercial loans and leases:
  Commercial and industrial loans$55,790$56,897$57,720$57,232$56,437
  Commercial mortgage loans11,12211,31011,22811,02010,947
  Commercial construction loans5,5825,4755,5485,4335,573
  Commercial leases2,6242,6702,7432,7042,821
Total commercial loans and leases75,11876,35277,23976,38975,778
Consumer loans:
  Residential mortgage loans17,29317,50317,60817,62817,600
  Home equity3,8983,9113,9584,0394,000
  Indirect secured consumer loans15,43416,09716,48416,55216,646
  Credit card1,8171,8181,7611,8741,770
  Other consumer loans6,5286,2105,8074,9984,205
Total consumer loans44,97045,53945,61845,09144,221
Total portfolio loans and leases$120,088$121,891$122,857$121,480$119,999
End of Period Loans and Leases Held for Sale
Commercial loans and leases held for sale$81$32$24$73$69
Consumer loans held for sale5337287259341,871
Loans and leases held for sale$614$760$749$1,007$1,940
Operating lease equipment$480$537$578$627$612
Loans and Leases Serviced for Others(a)
Commercial and industrial loans$1,217$1,122$1,090$1,109$1,067
Commercial mortgage loans711748696614630
Commercial construction loans288260386406421
Commercial leases721642588581567
Residential mortgage loans101,889102,817103,399103,154102,696
Other consumer loans827853881912941
Total loans and leases serviced for others105,653106,442107,040106,776106,322
Total loans and leases owned or serviced$226,835$229,630$231,224$229,890$228,873
(a)Fifth Third sells certain loans and leases and obtains servicing responsibilities.
23

Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millionsAs of
(unaudited)SeptemberJuneMarchDecemberSeptember
2023(a)
2023202320222022
Regulatory Capital(b)
CET1 capital$16,515$16,100$15,727$15,670$15,264
Additional tier 1 capital2,1162,1162,1162,1162,116
Tier 1 capital18,63118,21617,84317,78617,380
Tier 2 capital3,4883,5653,5883,8203,743
Total regulatory capital$22,119$21,781$21,431$21,606$21,123
Risk-weighted assets
$168,551$169,720$169,510$168,909$167,060
Ratios
Average total Bancorp shareholders' equity as a percent of average assets
8.30 %8.90 %8.77 %8.18 %9.13 %
Regulatory Capital Ratios(b)
Fifth Third Bancorp
CET1 capital
9.80 %9.49 %9.28 %9.28 %9.14 %
Tier 1 risk-based capital
11.05 %10.73 %10.53 %10.53 %10.40 %
Total risk-based capital
13.12 %12.83 %12.64 %12.79 %12.64 %
Leverage8.85 %8.81 %8.67 %8.56 %8.44 %
Fifth Third Bank, National Association
Tier 1 risk-based capital
11.95 %11.25 %11.63 %11.31 %10.94 %
Total risk-based capital
13.37 %12.67 %13.05 %12.81 %12.41 %
Leverage9.59 %9.26 %9.62 %9.23 %8.91 %
(a)Current period regulatory capital data and ratios are estimated.
(b)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
24

Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20232023202320222022
Average portfolio loans and leases:
  Commercial and industrial loans$57,001$58,137$58,149$57,646$56,646
  Commercial mortgage loans11,21611,37311,12110,89810,751
  Commercial construction loans5,5395,5355,5075,5445,557
  Commercial leases2,6162,7002,6622,7362,792
Total commercial loans and leases76,37277,74577,43976,82475,746
  Residential mortgage loans17,40017,51717,58117,57717,617
  Home equity3,8973,9374,0054,0243,956
  Indirect secured consumer loans15,78716,28116,59816,53616,750
  Credit card1,8081,7831,7801,7951,756
  Other consumer loans6,3666,0645,4094,6153,819
Total consumer loans45,25845,58245,37344,54743,898
Total average portfolio loans and leases$121,630$123,327$122,812$121,371$119,644
Losses charged-off:
  Commercial and industrial loans($70)($35)($32)($30)($46)
  Commercial mortgage loans—————
  Commercial construction loans——(1)——
  Commercial leases———(6)(1)
Total commercial loans and leases(70)(35)(33)(36)(47)
  Residential mortgage loans(1)(1)(1)(1)(1)
  Home equity(2)(2)(1)(2)(2)
  Indirect secured consumer loans(27)(25)(23)(21)(18)
  Credit card(19)(21)(20)(17)(15)
  Other consumer loans(39)(37)(32)(26)(21)
Total consumer loans(88)(86)(77)(67)(57)
Total losses charged-off($158)($121)($110)($103)($104)
Recoveries of losses previously charged-off:
  Commercial and industrial loans$5$3$2$10$12
  Commercial mortgage loans—————
  Commercial construction loans————1
  Commercial leases1——12
Total commercial loans and leases6321115
  Residential mortgage loans111—2
  Home equity21123
  Indirect secured consumer loans89978
  Credit card45543
  Other consumer loans1312141111
Total consumer loans2828302427
Total recoveries of losses previously charged-off$34$31$32$35$42
Net losses charged-off:
  Commercial and industrial loans($65)($32)($30)($20)($34)
  Commercial mortgage loans—————
  Commercial construction loans——(1)—1
  Commercial leases1——(5)1
Total commercial loans and leases(64)(32)(31)(25)(32)
  Residential mortgage loans———(1)1
  Home equity—(1)——1
  Indirect secured consumer loans(19)(16)(14)(14)(10)
  Credit card(15)(16)(15)(13)(12)
  Other consumer loans(26)(25)(18)(15)(10)
Total consumer loans(60)(58)(47)(43)(30)
Total net losses charged-off($124)($90)($78)($68)($62)
Net losses charged-off as a percent of average portfolio loans and leases (annualized):
  Commercial and industrial loans0.45 %0.22 %0.21 %0.14 %0.24 %
  Commercial mortgage loans— 0.01 %0.01 %— — 
  Commercial construction loans— (0.01 %)0.10 %— (0.08 %)
  Commercial leases(0.08 %)(0.03 %)(0.04 %)0.70 %(0.12 %)
Total commercial loans and leases0.34 %0.16 %0.17 %0.13 %0.17 %
  Residential mortgage loans— — — 0.01 %(0.02 %)
  Home equity0.03 %0.06 %(0.04 %)0.02 %(0.08 %)
  Indirect secured consumer loans0.47 %0.38 %0.34 %0.32 %0.24 %
  Credit card3.25 %3.61 %3.43 %2.85 %2.69 %
  Other consumer loans1.67 %1.63 %1.41 %1.33 %1.10 %
Total consumer loans0.53 %0.50 %0.42 %0.38 %0.28 %
Total net losses charged-off as a percent of average portfolio loans and leases (annualized)0.41 %0.29 %0.26 %0.22 %0.21 %
25

Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20232023202320222022
Allowance for Credit Losses
Allowance for loan and lease losses, beginning$2,327$2,215$2,194$2,099$2,014
Impact of adoption of ASU 2022-02——(49)——
  Total net losses charged-off(124)(90)(78)(68)(62)
Provision for loan and lease losses137202148163147
Allowance for loan and lease losses, ending$2,340$2,327$2,215$2,194$2,099
Reserve for unfunded commitments, beginning$207$232$216$199$188
(Benefit from) provision for the reserve for unfunded commitments(18)(25)161711
Reserve for unfunded commitments, ending$189$207$232$216$199
Components of allowance for credit losses:
  Allowance for loan and lease losses$2,340$2,327$2,215$2,194$2,099
  Reserve for unfunded commitments189207232216199
Total allowance for credit losses$2,529$2,534$2,447$2,410$2,298
As of
SeptemberJuneMarchDecemberSeptember
20232023202320222022
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
  Commercial and industrial loans$262$322$280$215$254
  Commercial mortgage loans1822444040
  Commercial construction loans——582
  Commercial leases115—2
  Residential mortgage loans127137129124115
  Home equity5861686768
  Indirect secured consumer loans3123272915
  Credit card3230292723
  Other consumer loans4133653
Total nonaccrual portfolio loans and leases570629593515522
Repossessed property118866
OREO3124221818
Total nonperforming portfolio loans and leases and OREO612661623539546
Nonaccrual loans held for sale62———
Total nonperforming assets$618$663$623$539$546
Loans and leases 90 days past due (accrual):
  Commercial and industrial loans$3$6$17$11$16
  Commercial mortgage loans—20———
  Commercial leases———210
Total commercial loans and leases326171326
  Residential mortgage loans(c)
67977
  Home equity—1111
  Indirect secured consumer loans————10
  Credit card2017181814
  Other consumer loans——111
Total consumer loans2625292733
Total loans and leases 90 days past due (accrual)(b)
$29$51$46$40$59
Ratios
Net losses charged-off as a percent of average portfolio loans and leases (annualized)0.41 %0.29 %0.26 %0.22 %0.21 %
Allowance for credit losses:
As a percent of portfolio loans and leases2.11 %2.08 %1.99 %1.98 %1.91 %
   As a percent of nonperforming portfolio loans and leases(a)
443 %403 %413 %468 %440 %
   As a percent of nonperforming portfolio assets(a)
413 %383 %393 %447 %420 %
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases(a)
0.47 %0.52 %0.48 %0.42 %0.44 %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
0.51 %0.54 %0.51 %0.44 %0.46 %
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property0.51 %0.54 %0.50 %0.44 %0.45 %
(a) Excludes nonaccrual loans held for sale.
(b) Excludes loans held for sale.
(c) Excludes government guaranteed residential mortgage loans.


26


Use of Non-GAAP Financial Measures
In addition to GAAP measures, management considers various non-GAAP measures when evaluating the performance of the business, including: “net interest income (FTE),” “interest income (FTE),” “net interest margin (FTE),” “net interest rate spread (FTE),” “income before income taxes (FTE),” “tangible net income available to common shareholders,” “average tangible common equity,” “return on average tangible common equity,” “tangible common equity (excluding AOCI),” “tangible common equity (including AOCI),” “tangible equity,” “tangible book value per share,” “tangible book value per share (excluding AOCI),” “adjusted noninterest income,” “noninterest income excluding certain items,” “adjusted noninterest expense,” “noninterest expense excluding certain items,” “pre-provision net revenue,” “adjusted efficiency ratio,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” “adjusted return on average tangible common equity, excluding accumulated other comprehensive income", “adjusted pre-provision net revenue,” “adjusted return on average assets,” “efficiency ratio (FTE),” “total revenue (FTE),” “noninterest income as a percent of total revenue”, and certain ratios derived from these measures. The Bancorp believes these non-GAAP measures provide useful information to investors because these are among the measures used by the Fifth Third management team to evaluate operating performance and to make day-to-day operating decisions.

The FTE basis adjusts for the tax-favored status of income from certain loans and securities held by the Bancorp that are not taxable for federal income tax purposes. The Bancorp believes this presentation to be the preferred industry measurement of net interest income and net interest margin as it provides a relevant comparison between taxable and non-taxable amounts.

The Bancorp believes tangible net income available to common shareholders, average tangible common equity, tangible common equity (excluding AOCI), tangible common equity (including AOCI), tangible equity, tangible book value per share and return on average tangible common equity are important measures for evaluating the performance of the business without the impacts of intangible items, whether acquired or created internally, in a manner comparable to other companies in the industry who present similar measures.

The Bancorp believes noninterest income, noninterest expense, net interest income, net interest margin, pre-provision net revenue, efficiency ratio, noninterest income as a percent of total revenue, return on average common equity, return on average tangible common equity, and return on average assets are important measures that adjust for significant, unusual, or large transactions that may occur in a reporting period which management does not consider indicative of ongoing financial performance and enhances comparability of results with prior periods.

The Bancorp believes noninterest income excluding certain items and noninterest expense excluding certain items are important measures that adjust for certain components that are prone to significant period-to-period changes in order to facilitate the explanation of variances in the noninterest income and noninterest expense line items.

Management considers various measures when evaluating capital utilization and adequacy, including the tangible equity and tangible common equity (including and excluding AOCI), in addition to capital ratios defined by U.S. banking agencies. These calculations are intended to complement the capital ratios defined by U.S. banking agencies for both absolute and comparative purposes. These ratios are not formally defined by U.S. GAAP or codified in the federal banking regulations and, therefore, are considered to be non-GAAP financial measures. Management believes that providing the tangible common equity ratio excluding AOCI on certain assets and liabilities enables investors and others to assess the Bancorp’s use of equity without the effects of changes in AOCI, some of which are uncertain; providing the tangible common equity ratio including AOCI enables investors and others to assess the Bancorp’s use of equity if components of AOCI, such as unrealized gains or losses, were to be monetized.

Please note that although non-GAAP financial measures provide useful insight, they should not be considered in isolation or relied upon as a substitute for analysis using GAAP measures.

Please see reconciliations of all historical non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page.
27

Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ and shares in millionsAs of and For the Three Months Ended
(unaudited)SeptemberJuneMarchDecemberSeptember
20232023202320222022
Net interest income$1,438$1,457$1,517$1,577$1,498
Add: Taxable equivalent adjustment76554
Net interest income (FTE) (a)1,4451,4631,5221,5821,502
Net interest income (annualized) (b)5,7055,8446,1526,2575,943
Net interest income (FTE) (annualized) (c)5,7335,8686,1736,2765,959
Interest income2,5292,3702,2132,0751,760
Add: Taxable equivalent adjustment76554
Interest income (FTE)2,5362,3762,2182,0801,764
Interest income (FTE) (annualized) (d)10,0619,5308,9958,2526,998
Interest expense (annualized) (e)4,3283,6622,8231,9761,039
Average interest-earning assets (f)192,216189,060187,407187,640185,378
Average interest-bearing liabilities (g)139,779134,590129,280126,390119,773
Net interest margin (b) / (f)2.97 %3.09 %3.28 %3.33 %3.21 %
Net interest margin (FTE) (c) / (f)2.98 %3.10 %3.29 %3.35 %3.22 %
Net interest rate spread (FTE) (d) / (f) - (e) / (g)2.13 %2.32 %2.62 %2.84 %2.91 %
Income before income taxes$846$775$718$914$845
Add: Taxable equivalent adjustment76554
Income before income taxes (FTE)853781723919849
Net income available to common shareholders623562535699631
Add: Intangible amortization, net of tax8891010
Tangible net income available to common shareholders (h)631570544709641
Tangible net income available to common shareholders (annualized) (i)2,5032,2862,2062,8132,543
Average Bancorp shareholders’ equity
17,30518,34417,97716,85718,864
Less: Average preferred stock(2,116)(2,116)(2,116)(2,116)(2,116)
Average goodwill(4,919)(4,919)(4,915)(4,925)(4,926)
Average intangible assets(141)(152)(163)(176)(188)
Average tangible common equity, including AOCI (j)10,12911,15710,7839,64011,634
Less:Average AOCI5,8354,4804,4425,3863,037
Average tangible common equity, excluding AOCI (k)15,96415,63715,22515,02614,671
Total Bancorp shareholders’ equity
16,54417,80918,36417,32716,736
Less:Preferred stock(2,116)(2,116)(2,116)(2,116)(2,116)
Goodwill(4,919)(4,919)(4,915)(4,915)(4,925)
Intangible assets(136)(146)(157)(169)(181)
Tangible common equity, including AOCI (l)9,37310,62811,17610,1279,514
Less:AOCI6,8395,1664,2455,1105,306
Tangible common equity, excluding AOCI (m)16,21215,79415,42115,23714,820
Add:Preferred stock2,1162,1162,1162,1162,116
Tangible equity (n)18,32817,91017,53717,35316,936
Total assets212,967207,276208,657207,452205,463
Less:Goodwill(4,919)(4,919)(4,915)(4,915)(4,925)
Intangible assets(136)(146)(157)(169)(181)
Tangible assets, including AOCI (o)207,912202,211203,585202,368200,357
Less:AOCI, before tax8,6576,5395,3736,4686,716
Tangible assets, excluding AOCI (p)$216,569$208,750$208,958$208,836$207,073
Common shares outstanding (q)681681681683686
Tangible equity (n) / (p)8.46 %8.58 %8.39 %8.31 %8.18 %
Tangible common equity (excluding AOCI) (m) / (p)7.49 %7.57 %7.38 %7.30 %7.16 %
Tangible common equity (including AOCI) (l) / (o)4.51 %5.26 %5.49 %5.00 %4.75 %
Tangible book value per share (including AOCI) (l) / (q)$13.76$15.61$16.41$14.83$13.87
Tangible book value per share (excluding AOCI) (m) / (q)$23.81$23.19$22.64$22.31$21.60
28

Fifth Third Bancorp and Subsidiaries
Non-GAAP Reconciliation
$ in millionsFor the Three Months Ended
(unaudited)SeptemberJuneSeptember
202320232022
Net income (r)$660$601$653
Net income (annualized) (s)2,6182,4112,591
Adjustments (pre-tax items)
Valuation of Visa total return swap103017
Restructuring severance expense—12—
Adjustments, after-tax (t)(a)
83213
Noninterest income (u)715726672
Valuation of Visa total return swap103017
Adjusted noninterest income (v)725756689
Noninterest expense (w)1,1881,2311,167
Restructuring severance expense—(12)—
Adjusted noninterest expense (x)1,1881,2191,167
Adjusted net income (r) + (t)668633666
Adjusted net income (annualized) (y)2,6502,5392,642
Adjusted tangible net income available to common shareholders (h) + (t)639602654
Adjusted tangible net income available to common shareholders (annualized) (z)2,5352,4152,595
Average assets (aa)$208,385$206,079$206,688
Return on average tangible common equity (i) / (j)24.7 %20.5 %21.9 %
Return on average tangible common equity excluding AOCI (i) / (k)15.7 %14.6 %17.3 %
Adjusted return on average tangible common equity, including AOCI (z) / (j)25.0 %21.6 %22.3 %
Adjusted return on average tangible common equity, excluding AOCI (z) / (k)15.9 %15.4 %17.7 %
Return on average assets (s) / (aa)1.26 %1.17 %1.25 %
Adjusted return on average assets (y) / (aa)1.27 %1.23 %1.28 %
Efficiency ratio (FTE) (w) / [(a) + (u)]55.0 %56.2 %53.7 %
Adjusted efficiency ratio (x) / [(a) + (v)]54.7 %54.9 %53.3 %
Total revenue (FTE) (a) + (u)$2,160$2,189$2,174
Adjusted total revenue (FTE) (a) + (v)$2,170$2,219$2,191
Pre-provision net revenue (PPNR) (a) + (u) - (w)$972$958$1,007
Adjusted pre-provision net revenue (PPNR) (a) + (v) - (x)$982$1,000$1,024
Totals may not foot due to rounding; (a) Assumes a 23% tax rate

29

Fifth Third Bancorp and Subsidiaries
Segment Presentation
$ in millions
(unaudited)
For the three months ended September 30, 2023
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$1,012$1,390$98$(1,055)$1,445
Provision for credit losses—(105)(1)(13)(119)
Net interest income after provision for credit losses1,0121,28597(1,068)1,326
Noninterest income353274139(51)715
Noninterest expense(478)(624)(135)49(1,188)
Income (loss) before income taxes887935101(1,070)853
Applicable income tax (expense) benefit(a)
(169)(196)(22)194(193)
Net income (loss)$718$739$79$(876)$660
For the three months ended June 30, 2023
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$1,025$1,370$95$(1,027)$1,463
(Provision for) benefit from credit losses9(65)—(121)(177)
Net interest income after (provision for) benefit from credit losses1,0341,30595(1,148)1,286
Noninterest income336271137(18)726
Noninterest expense(486)(632)(139)26(1,231)
Income (loss) before income taxes88494493(1,140)781
Applicable income tax (expense) benefit(a)
(173)(198)(20)211(180)
Net income (loss)$711$746$73$(929)$601
For the three months ended March 31, 2023
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$980$1,257$101$(816)$1,522
Provision for credit losses(46)(51)—(67)(164)
Net interest income after provision for credit losses9341,206101(883)1,358
Noninterest income336273138(51)696
Noninterest expense(551)(645)(146)11(1,331)
Income (loss) before income taxes71983493(923)723
Applicable income tax (expense) benefit(a)
(139)(175)(19)168(165)
Net income (loss)$580$659$74$(755)$558
For the three months ended December 31, 2022
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$876$1,151$94$(539)$1,582
(Provision for) benefit from credit losses11(46)—(145)(180)
Net interest income after (provision for) benefit from credit losses8871,10594(684)1,402
Noninterest income349268133(15)735
Noninterest expense(464)(602)(134)(18)(1,218)
Income (loss) before income taxes77277193(717)919
Applicable income tax (expense) benefit(a)
(150)(162)(19)149(182)
Net income (loss)$622$609$74$(568)$737
For the three months ended September 30, 2022
Commercial BankingConsumer and Small Business Banking
Wealth
and Asset Management
Other/
Eliminations
Total
Net interest income (FTE)(a)
$596$833$79$(6)$1,502
(Provision for) benefit from credit losses2(34)—(126)(158)
Net interest income after (provision for) benefit from credit losses59879979(132)1,344
Noninterest income298286134(46)672
Noninterest expense(440)(608)(142)23(1,167)
Income (loss) before income taxes45647771(155)849
Applicable income tax (expense) benefit(a)
(87)(100)(15)6(196)
Net income (loss)$369$377$56$(149)$653
(a) Includes taxable equivalent adjustments of $7 million for the three months ended September 30, 2023, $6 million for the three months ended June 30, 2023, $5 million for the three months ended March 31, 2023 and December 31, 2022 and $4 million for the three months ended September 30, 2022.
30