EX-99.1

EX-99.1 2 d645776dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

Fifth Third Announces First Quarter 2019 Results

Diluted earnings per share of $1.12

Reported results included a positive $0.49 impact from certain items on page 3


Key Financial Data							Key Highlights
$ millions for all balance sheet and income statement items
	1Q19		4Q18		1Q18			MB Financial acquisition

Income Statement Data								● Closed transaction on March 22, 2019 ● Expect to convert majority of systems in May 2019 Strong financial and credit performance ● NIM^(a) up 10 bps compared to 1Q18 ● Adjusted PPNR^(a) up 19% compared to 1Q18 (up 17% excluding the impact of MB) ● Average loans up 6% compared to 1Q18 (4% excluding impact of MB) ● Average core deposits up 5% compared to 1Q18 (3% excluding impact of MB) ● NCO ratio^(c) of 0.32% (incl. Commercial of 0.11%) Solid key financial metrics^(a) ● ROTCE: 23.9% (adjusted 13.5%) ● ROA: 2.11% (adjusted 1.21%) ● Efficiency ratio: 50.2% (adjusted 61.3%)
Net income available to common shareholders		$760		$432		$686
Net interest income (U.S. GAAP)		1,082		1,081		996
Net interest income (FTE)^(a)		1,086		1,085		999
Noninterest income		1,101		575		909
Noninterest expense^(b)		1,097		975		1,010
Per Share Data
Earnings per share, basic		$1.14		$0.65		$0.98
Earnings per share, diluted		1.12		0.64		0.96
Book value per share		24.77		23.07		21.44
Tangible book value per share^(a)		18.64		19.17		17.80
Balance Sheet & Credit Quality
Average portfolio loans and leases		$97,773		$94,757		$92,334
Average deposits		109,591		107,495		103,537
Net charge-off ratio^(c)		0.32 %		0.35 %		0.36 %
Nonperforming asset ratio^(d)		0.45		0.41		0.55
Financial Ratios
Return on average assets		2.11 %		1.25 %		2.01 %
Return on average common equity		19.6		11.8		18.8
Return on average tangible common equity^(a)		23.9		14.3		22.6
CET1 capital^(e)(f)		9.65		10.24		10.82
Net interest margin^(a)		3.28		3.29		3.18
Efficiency^(a)(b)		50.2		58.7		52.9
Other than the Quarterly Financial Review tables beginning on page 15, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.

CEO Commentary

“Our first quarter performance was strong. Loan growth exceeded our previous expectations, we continued to manage expenses diligently, and credit quality metrics were solid.

Additionally, we achieved a significant milestone on March 22, 2019, with the closing of the MB Financial acquisition. We are pleased to welcome our new customers and team members. We look forward to converting substantially all systems and processes in May and providing our Chicago customers with expanded products and services.

With a strong start to the year, we now look forward to leveraging the enhanced capabilities of our company and expect to achieve our previously stated financial synergies from the transaction, which will meaningfully improve our key profitability metrics.

With a clearly defined set of strategic priorities, we remain confident in our ability to generate revenue growth, achieve positive operating leverage, outperform peers through the cycle, and create significant value for our shareholders.”

-Greg D. Carmichael, Chairman, President and CEO


Investor contact: Chris Doll (513) 534 - 2345 \| Media contact: Gary Rhodes (513) 534 - 4225		April 23, 2019

On March 22, 2019, Fifth Third Bancorp closed the previously announced acquisition of MB Financial, Inc. The acquisition added approximately $19.8 billion of total assets, $13.5 billion of total loans and leases, $14.5 billion of total deposits, and 91 locations (including 86 full-service banking centers). First quarter of 2019 results reflect the impact of MB Financial since March 22, 2019.


Summary MB Financial Balance Sheet at Acquisition
($ in millions)

Assets		Liabilities
Cash and due from banks	$1,686	Transactional deposits	$	12,170
Commercial loans and leases	11,068	Other time		546

Consumer loans	2,435	Core deposits		12,716
Total loans and leases	13,503	Certificates $100,000 and over		1,779

Federal funds sold	35	Total deposits		14,495
Securities and other short-term investments	940	Other short-term borrowings		348
Goodwill	1,843	Long-term debt		713
Other assets	1,793	Other liabilities		439

Total assets	$19,800	Total liabilities	$	15,995


Income Statement Highlights
($ in millions, except per share data)	For the Three Months Ended			% Change
	March	December	March
	2019	2018	2018	Seq	Yr/Yr
Condensed Statements of Income
Net interest income (NII)^(a)	$1,086	$1,085	$999	-	9%
Provision for credit losses^(b)	90	97	13	(7%)	592%
Noninterest income	1,101	575	909	91%	21%
Noninterest expense^(b)	1,097	975	1,010	13%	9%
Income before income taxes^(a)	$1,000	$588	$885	70%	13%

Taxable equivalent adjustment	4	4	3	-	33%
Applicable income tax expense	221	129	181	71%	22%
Net income	$775	$455	$701	70%	11%
Less: Net income attributable to noncontrolling interests	-	-	-	NM	NM
Net income attributable to Bancorp	$775	$455	$701	70%	11%
Dividends on preferred stock	15	23	15	(35%)	-
Net income available to common shareholders	$760	$432	$686	76%	11%
Earnings per share, diluted	$1.12	$0.64	$0.96	75%	17%

Fifth Third includes the provision for loan and lease losses and the provision for the reserve for unfunded commitments in a single measure called provision for credit losses. Fifth Third previously reported the provision for the reserve for unfunded commitments within other noninterest expense. All reporting periods have been adjusted to reflect this reclassification.

Fifth Third Bancorp (Nasdaq: FITB) today reported first quarter 2019 net income of $775 million compared to net income of $701 million in the year-ago quarter. Net income available to common shareholders was $760 million, or $1.12 per diluted share, compared to $686 million, or $0.96 per diluted share in the year-ago quarter. Prior quarter net income was $455 million and net income available to common shareholders was $432 million, or $0.64 per diluted share.


Diluted earnings per share impact of certain items
*(after-tax impacts^(g); $ in millions, except per share data)*

Gain on sale of Worldpay shares	$433
Merger-related items:
Expenses	($65	)
Branch network impairment charge (noninterest income)	($10	)
Acquisition impact on state deferred taxes	($9	)
Valuation of Visa total return swap	($24	)
GreenSky equity securities gains	$7
After-tax impact^(g)of certain items	$332

Average diluted common shares outstanding (thousands)	670,685

Diluted earnings per share impact	$0.49


Net Interest Income
(FTE; $ in millions)^(a)	For the Three Months Ended						% Change
	March		December		March
	2019		2018		2018		Seq			Yr/Yr
Interest Income
Interest income		$1,437		$1,397		$1,209		3%			19%
Interest expense		351		312		210		13%			67%
Net interest income (NII)		$1,086		$1,085		$999		-			9%

Average Yield/Rate Analysis								bps Change

Yield on interest-earning assets		4.33%		4.23%		3.85%		10			48
Rate paid on interest-bearing liabilities		1.46%		1.33%		0.97%		13			49

Ratios
Net interest rate spread		2.87%		2.90%		2.88%		(3	)		(1	)
Net interest margin		3.28%		3.29%		3.18%		(1	)		10

Compared to the year-ago quarter, NII increased $87 million, or 9 percent, driven by higher short-term market rates, as well as growth in both the commercial loan portfolio and the securities portfolio. NIM increased 10 bps, driven by higher short-term market rates and growth in higher-yielding consumer loans, partially offset by higher funding costs and a continued migration from demand deposits into interest-bearing deposits.

Compared to the prior quarter, NII increased $1 million, reflecting the impact of both the acquired earning assets of MB Financial and Fifth Third loan growth throughout the quarter, partially offset by a lower day count. NIM decreased 1 bp, primarily driven by seasonally lower commercial demand deposits and higher wholesale funding costs resulting from $1.8 billion in long-term funding issued during the quarter, partially offset by a lower day count and higher short-term market rates. Due to the timing of the close of the MB Financial acquisition, purchase accounting accretion was negligible in the first quarter of 2019. Including purchase accounting accretion, first quarter of 2019 NII performance included the impact from 6 business days of MB Financial, or approximately $16 million, and increased NIM 1 bp.


Noninterest Income
($ in millions)		For the Three Months Ended								% Change
	March		December			March
	2019		2018			2018			Seq		Yr/Yr
Noninterest Income
Service charges on deposits		$131		$135			$137			(3%)		(4%)
Corporate banking revenue		112		130			88			(14%)		27%
Mortgage banking net revenue		56		54			56			4%		-
Wealth and asset management revenue		112		109			113			3%		(1%)
Card and processing revenue		79		84			79			(6%)		-
Other noninterest income		592		93			460			537%		29%
Securities gains (losses), net		16		(32	)		(11	)		NM		NM
Securities gains (losses), net - non-qualifying hedges on mortgage servicing rights		3		2			(13	)		50%		NM
Total noninterest income		$1,101		$575			$909			91%		21%

Reported noninterest income increased $192 million, or 21 percent, from the year-ago quarter, and increased $526 million, or 91 percent, from the prior quarter. The comparisons reflect the impact of certain significant items in the table on page 5.

Compared to the year-ago quarter, service charges on deposits decreased $6 million, or 4 percent, primarily driven by lower commercial deposit fees resulting from increased business earnings credits. Corporate banking revenue increased $24 million, or 27 percent, primarily driven by strong capital markets revenue as well as increased business lending fees. Mortgage banking net revenue was flat, and mortgage originations of $1.6 billion increased 4 percent. Wealth and asset management revenue decreased $1 million, or 1 percent, as higher personal asset management revenue was offset by lower institutional trust and brokerage fees. Card and processing revenue was flat, reflecting increases in credit and debit transaction volumes offset by higher rewards.

Compared to the prior quarter, service charges on deposits decreased $4 million, or 3 percent, primarily driven by seasonally lower consumer deposit fees. Corporate banking revenue decreased $18 million, or 14 percent, primarily driven by a decrease in M&A advisory and loan syndication revenues compared to the record revenues in the fourth quarter of 2018. Mortgage banking net revenue increased $2 million, or 4 percent, primarily driven by higher origination revenues as a result of a 5 percent increase in originations. Wealth and asset management revenue increased $3 million, or 3 percent, reflecting seasonally strong tax-related private client service revenue. Card and processing revenue decreased $5 million, or 6 percent, reflecting seasonal decreases in credit and debit transaction volumes, partially offset by lower rewards.


Noninterest Income excluding certain items

($ in millions)	For the Three Months Ended
	March		December		March
	2019		2018		2018
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)		$1,101		$575		$909
Valuation of Visa total return swap		31		(7)		39
Merger-related branch network impairment charge		13		-		-
Gain on sale of Worldpay shares		(562)		-		-
Branch network impairment charge		-		-		8
Worldpay step-up gain		-		-		(414)
GreenSky equity securities (gains) / losses		(9)		21		-
Securities (gains) / losses, net (excluding GreenSky)		(7)		11		11
Noninterest income excluding certain items^(a)		$567		$600		$553

Compared to the year-ago quarter, noninterest income excluding the items in the table above increased $14 million, or 3 percent. Compared to the prior quarter, noninterest income excluding these items decreased $33 million, or 6 percent. First quarter of 2019 noninterest income performance included the impact from 6 business days of MB Financial, or approximately $12 million.

Other noninterest income on a reported basis in the current and previous quarters was impacted by the Visa total return swap valuation adjustments, branch network impairment charges, and Worldpay related gains. Excluding these items, other noninterest income of $74 million decreased $19 million, or 20 percent, compared to the year-ago quarter, primarily driven by lower private equity investment income. Compared to the prior quarter, other noninterest income excluding the items decreased $12 million, or 14 percent, impacted by the revenue recognized from Worldpay related to the tax receivable agreement in the fourth quarter of 2018.


Noninterest Expense

($ in millions)	For the Three Months Ended						% Change
	March		December		March
	2019		2018		2018		Seq		Yr/Yr
Noninterest Expense
Compensation and benefits		$610		$506		$557		21%		10%
Net occupancy expense		75		73		75		3%		-
Technology and communications		83		79		68		5%		22%
Equipment expense		30		31		31		(3%)		(3%)
Card and processing expense		31		33		29		(6%)		7%
Other noninterest expense^(b)		268		253		250		6%		7%
Total noninterest expense^(b)		$1,097		$975		$1,010		13%		9%


Impacts of Merger-Related Expenses

($ in millions)	For the Three Months Ended
	March		December		March
	2019		2018		2018
Merger-Related Expenses
Compensation and benefits		$35		$1		$-
Net occupancy expense		-		-		-
Technology and communications		11		6		-
Equipment expense		-		-		-
Card and processing expense		-		1		-
Other noninterest expense		30		19		-
Total merger-related expenses		$76		$27		$-


Noninterest Expense excluding Merger-Related Expenses^(a)

($ in millions)	For the Three Months Ended						% Change
	March		December		March
	2019		2018		2018		Seq		Yr/Yr
Noninterest Expense excluding Merger-Related Expenses
Compensation and benefits		$575		$505		$557		14%		3%
Net occupancy expense		75		73		75		3%		0%
Technology and communications		72		73		68		(1%)		6%
Equipment expense		30		31		31		(3%)		(3%)
Card and processing expense		31		32		29		(3%)		7%
Other noninterest expense		238		234		250		2%		(5%)
Total noninterest expense excluding Merger-Related Expenses		$1,021		$948		$1,010		8%		1%

Compared to the year-ago quarter, reported noninterest expense increased $87 million, or 9 percent, primarily due to merger-related expenses in the current quarter. Excluding the merger-related expenses, noninterest expense increased $11 million, or 1 percent, reflecting higher compensation and benefits driven by acquisitions over the past year (including the impact from 6 business days of MB Financial, or approximately $20 million) and increased deferred compensation, as well as continued technology investments. The growth was partially offset by the elimination of the FDIC surcharge.

Compared to the prior quarter, reported noninterest expense increased $122 million, or 13 percent, also impacted by merger-related expenses. Excluding the merger-related expenses in the current and prior quarter, noninterest expense increased $73 million, or 8 percent, reflecting seasonally higher compensation and benefits and increased deferred compensation, as well as elevated expenses due to the post-close impact of MB Financial. First quarter of 2019 noninterest expense performance included the impact from 6 business days of MB Financial, or approximately $20 million.


Average Interest-Earning Assets

($ in millions)	For the Three Months Ended						% Change
	March		December		March
	2019		2018		2018		Seq		Yr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans		$46,011		$43,829		$41,782		5%		10%
Commercial mortgage loans		7,414		6,864		6,582		8%		13%
Commercial construction loans		4,838		4,885		4,671		(1%)		4%
Commercial leases		3,555		3,632		3,960		(2%)		(10%)
Total commercial loans and leases		$61,818		$59,210		$56,995		4%		8%
Consumer loans:
Residential mortgage loans		$15,624		$15,520		$15,575		1%		-
Home equity		6,355		6,438		6,889		(1%)		(8%)
Indirect secured consumer loans^(h)		9,176		8,970		9,064		2%		1%
Credit card		2,396		2,373		2,224		1%		8%
Other consumer loans		2,404		2,246		1,587		7%		51%
Total consumer loans		$35,955		$35,547		$35,339		1%		2%

Portfolio loans and leases		$97,773		$94,757		$92,334		3%		6%
Loans held for sale		589		641		535		(8%)		10%
Securities and other short-term investments		36,101		35,674		34,677		1%		4%
Total average interest-earning assets		$134,463		$131,072		$127,546		3%		5%

(The Bancorp acquired indirect motorcycle, powersports, recreational vehicles and marine loans in the acquisition of MB Financial. These loans are included in addition to automobile loans in the line item “indirect secured consumer loans”. Point-of-sale unsecured loans continue to be recorded in other consumer loans.)

Compared to the year-ago quarter, average portfolio loans and leases increased 6 percent, primarily driven by higher commercial and industrial (C&I) and other consumer loans, partially offset by declines in home equity loans and commercial leases. Period end portfolio loans and leases increased 19 percent year-over-year, reflecting the impact of MB Financial. Compared to the prior quarter, average portfolio loans and leases increased 3 percent, primarily driven by higher C&I and commercial mortgage loans, partially offset by declines in home equity loans and commercial leases. Period end portfolio loans and leases increased 15 percent from the prior quarter, reflecting the impact of MB Financial.

Compared to the year-ago quarter, average commercial portfolio loans and leases increased 8 percent, primarily driven by higher C&I and commercial mortgage loans. Compared to the prior quarter, average commercial portfolio loans and leases increased 4 percent, primarily driven by growth in C&I and commercial mortgage loans. Period end commercial line utilization was 38 percent, compared to 35 percent in the year-ago quarter and 36 percent in the prior quarter. The increased utilization rate primarily reflects a greater percentage of middle market clients resulting from the MB Financial acquisition.

Compared to the year-ago quarter, average consumer portfolio loans increased 2 percent, primarily driven by higher other consumer loans and growth in credit card loans, partially offset by declines in home equity loans. Compared to the prior quarter, average consumer portfolio loans increased 1 percent, as higher indirect secured consumer loans and other consumer loans partially were offset by declines in home equity loans.

Average securities and other short-term investments were $36.1 billion compared to $34.7 billion in the year-ago quarter and $35.7 billion in the prior quarter. Average available-for-sale debt and other securities of $33.6 billion were up 4 percent compared to the year-ago quarter and up 1 percent compared to the prior quarter.


Average Deposits

($ in millions)	For the Three Months Ended						% Change
	March		December		March
	2019		2018		2018		Seq		Yr/Yr
Average Deposits
Demand		$30,557		$31,571		$33,825		(3%)		(10%)
Interest checking		33,697		32,428		28,403		4%		19%
Savings		13,052		12,933		13,546		1%		(4%)
Money market		23,133		22,517		20,750		3%		11%
Foreign office⁽ⁱ⁾		208		272		494		(24%)		(58%)
Total transaction deposits		$100,647		$99,721		$97,018		1%		4%
Other time		4,860		4,366		3,856		11%		26%
Total core deposits		$105,507		$104,087		$100,874		1%		5%
Certificates - $100,000 and over		3,358		2,662		2,284		26%		47%
Other deposits		726		746		379		(3%)		92%
Total average deposits		$109,591		$107,495		$103,537		2%		6%

Compared to the year-ago quarter, average core deposits increased 5 percent, primarily driven by higher commercial interest checking deposits, consumer money market deposits, and other time deposits. The increases were partially offset by lower commercial demand deposits reflecting continued migration from demand deposits to interest-bearing accounts. Average commercial transaction deposits increased 4 percent and average consumer transaction deposits increased 4 percent. Period end core deposits increased 14 percent, primarily reflecting the impact of MB Financial.

Compared to the prior quarter, average core deposits increased 1 percent, reflecting the continued migration from demand deposits to interest-bearing accounts, higher consumer transaction deposits, and higher other time deposits. Average commercial transaction deposits decreased 1 percent, and average consumer transaction deposits increased 3 percent. Period end core deposits increased 11 percent, primarily reflecting the impact of MB Financial.


Average Wholesale Funding
($ in millions)	For the Three Months Ended						% Change
	March		December		March
	2019		2018		2018		Seq		Yr/Yr
Average Wholesale Funding
Certificates - $100,000 and over		$3,358		$2,662		$2,284		26%		47%
Other deposits		726		746		379		(3%)		92%
Federal funds purchased		2,019		2,254		692		(10%)		192%
Other short-term borrowings		646		578		2,423		12%		(73%)
Long-term debt		15,438		14,420		14,780		7%		4%
Total average wholesale funding		$22,187		$20,660		$20,558		7%		8%

Compared to the year-ago quarter, average wholesale funding increased 8 percent driven by increases in federal funds borrowings and jumbo CD balances, resulting from interest-earning asset growth over the past year, partially offset by a decrease in other short-term borrowings. Compared to the prior quarter, average wholesale funding increased 7 percent reflecting an increase in long-term debt balances resulting from debt issuances exceeding maturities during the quarter and higher jumbo CD balances, offset by a decline in federal funds borrowings.


Credit Quality Summary
($ in millions)	For the Three Months Ended
	March		December		September		June		March
	2019		2018		2018		2018		2018

Total nonaccrual portfolio loans and leases (NPLs)		$449		$348		$403		$437		$452
Repossessed property		11		10		8		7		9
OREO		37		37		37		36		43
Total nonperforming portfolio assets (NPAs)		$497		$395		$448		$480		$504

NPL ratio^(j)		0.41%		0.37%		0.43%		0.47%		0.49%
NPA ratio^(d)		0.45%		0.41%		0.48%		0.52%		0.55%

Total loans and leases 30-89 days past due (accrual)		324		297		270		217		299
Total loans and leases 90 days past due (accrual)		136		93		87		89		107

Allowance for loan and lease losses, beginning		$1,103		$1,091		$1,077		$1,138		$1,196
Total net losses charged-off		(77)		(83)		(72)		(94)		(81)
Provision for loan and lease losses		89		95		86		33		23
Allowance for loan and lease losses, ending		$1,115		$1,103		$1,091		$1,077		$1,138

Reserve for unfunded commitments, beginning		$131		$129		$131		$151		$161
Reserve for acquired commitments		1		-		-		-		-
Provision for (benefit from) the reserve for unfunded commitments		1		2		(2)		(20)		(10)
Reserve for unfunded commitments, ending		$133		$131		$129		$131		$151

Total allowance for credit losses		$1,248		$1,234		$1,220		$1,208		$1,289

Allowance for loan and lease losses ratios
As a percent of portfolio loans and leases		1.02%		1.16%		1.17%		1.17%		1.24%
As a percent of nonperforming portfolio loans and leases		249%		317%		270%		247%		252%
As a percent of nonperforming portfolio assets		225%		279%		243%		224%		226%

Total losses charged-off		$(108)		$(116)		$(112)		$(118)		$(103)
Total recoveries of losses previously charged-off		31		33		40		24		22
Total net losses charged-off		$(77)		$(83)		$(72)		$(94)		$(81)

Net charge-off ratio (NCO ratio)^(c)		0.32%		0.35%		0.30%		0.41%		0.36%
Commercial NCO ratio		0.11%		0.19%		0.19%		0.34%		0.21%
Consumer NCO ratio		0.68%		0.61%		0.50%		0.52%		0.60%

Compared to the year-ago quarter, NPLs decreased $3 million, or 1 percent, with the resulting NPL ratio of 0.41 percent decreasing 8 bps. NPAs decreased $7 million, or 1 percent, with the resulting NPA ratio of 0.45 percent decreasing 10 bps. Compared to the prior quarter, NPLs increased $101 million, or 29 percent, with the resulting NPL ratio increasing 4 bps. NPAs increased $102 million, or 26 percent, with the resulting NPA ratio increasing 4 bps.

The provision for loan and lease losses totaled $89 million in the current quarter compared to $23 million in the year-ago quarter and $95 million in the prior quarter. The resulting allowance for loan and lease losses ratio represented 1.02 percent of total portfolio loans and leases outstanding in the current quarter, compared with 1.24 percent in the year-ago quarter and 1.16 in the prior quarter. Excluding the impact of MB Financial, the current quarter allowance for loan and lease losses ratio was flat from the prior quarter. The allowance for loan and lease losses represented 249 percent of nonperforming portfolio loans and leases and 225 percent of nonperforming portfolio assets in the current quarter.

Net charge-offs totaled $77 million in the current quarter compared to $81 million in the year-ago quarter and $83 million in the prior quarter. The resulting NCO ratio of 0.32 percent in the current quarter decreased 4 bps compared to the year-ago quarter and decreased 3 bps compared to the prior quarter.


Capital and Liquidity Position
	For the Three Months Ended
	March		December		September		June		March
	2019		2018		2018		2018		2018
Capital Position
Average total Bancorp shareholders’ equity as a percent of average assets		11.43%		10.95%		11.29%		11.28%		11.41%
Tangible equity^(a)		9.03%		9.63%		9.97%		10.19%		9.98%
Tangible common equity (excluding unrealized gains/losses)^(a)		8.21%		8.71%		9.02%		9.23%		9.03%
Tangible common equity (including unrealized gains/losses)^(a)		8.44%		8.64%		8.53%		8.88%		8.78%

Regulatory Capital and Liquidity Ratios^(f)
CET1 capital^(e)		9.65%		10.24%		10.67%		10.91%		10.82%
Tier I risk-based capital^(e)		10.72%		11.32%		11.78%		12.02%		11.95%
Total risk-based capital^(e)		13.72%		14.48%		14.94%		15.21%		15.25%
Tier I leverage		9.94%		9.72%		10.10%		10.24%		10.11%
Modified liquidity coverage ratio (LCR)		113%		128%		119%		116%		113%

Capital ratios remained strong during the quarter. The CET1 capital ratio was 9.65 percent, the tangible common equity to tangible assets ratio was 8.21 percent (excluding unrealized gains/losses), and 8.44 percent (including unrealized gains/losses). The Tier I risk-based capital ratio was 10.72 percent, the Total risk-based capital ratio was 13.72 percent, and the Tier I leverage ratio was 9.94 percent.

On March 27, 2019, Fifth Third initially settled a repurchase agreement whereby Fifth Third would purchase $913 million of its outstanding stock. The initial settlement reduced first quarter common shares outstanding by 31.8 million shares. Settlement of the forward contract related to this agreement is expected to occur on or before June 28, 2019. Fifth Third has now executed share repurchases totaling $1.81 billion under the 2018 CCAR capital plan, and continues to have the option to repurchase common shares in any amount up to the $433 million after-tax gain generated from the final Worldpay equity sale.

Tax Rate

The effective tax rate was 22.2 percent compared with 20.5 percent in the year-ago quarter and 22.4 percent in the prior quarter.

Other

Fifth Third has exited its entire stake in all publicly traded companies. On March 14, 2019, Fifth Third exchanged its remaining shares of Worldpay Holdings, LLC for shares of Worldpay, Inc., and subsequently sold its shares, recognizing a gain of $562 million. During March and April 2019, Fifth Third exchanged its Class B units of GreenSky Holdings, LLC for Class A common stock of GreenSky, Inc., and subsequently sold all of the stock. Fifth Third expects to recognize a minimal pre-tax gain in the second quarter of 2019, resulting from the portion of shares sold in April 2019.

The Bancorp adopted ASU 2016-02, Leases, on January 1, 2019. The amended guidance requires lessees to record lease liabilities on the lessees’ balance sheets along with corresponding right-of-use assets for all leases with terms longer than twelve months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the lessee’s statements of income. From a lessor perspective, the accounting model is largely unchanged. Upon adoption, the Bancorp recognized right-of-use assets and lease liabilities of $509 million related to its operating lease commitments based on the present value of unpaid lease payments as of the date of adoption and also recorded a cumulative-effect adjustment to retained earnings of $10 million for the remaining deferred gains on sale-leaseback transactions that occurred prior to January 1, 2019.

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. Additionally, a telephone replay of the conference call will be available after the conference call until approximately May 7, 2019 by dialing 800-585-8367 for domestic access or 404-537-3406 for international access (passcode 6679198#).

Corporate Profile

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of March 31, 2019, the Company had $168 billion in assets and operates 1,207 full-service Banking Centers, and 2,559 Fifth Third branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. In total, Fifth Third provides its customers with access to approximately 52,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of March 31, 2019, had $394 billion in assets under care, of which it managed $44 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. 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.”

Earnings Release End Notes

(a)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 27.

(b)

(c)

Net losses charged-off as a percent of average portfolio loans and leases.

(d)

Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.

(e)

Under the U.S. 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.

(f)

Current period regulatory capital and liquidity ratios are estimated.

(g)

Assumes a 23% tax rate, except for merger-related expenses which were impacted by certain non-deductible items.

(h)

The Bancorp acquired indirect motorcycle, powersports, recreational vehicles and marine loans in the acquisition of MB Financial. These loans are included in addition to automobile loans in the line item “indirect secured consumer loans”. Point-of-sale unsecured loans continue to be recorded in other consumer loans.

(i)

Includes commercial customer Eurodollar sweep balances for which the Bank pays rates comparable to other commercial deposit accounts.

(j)

Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO.

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,” “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. 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. We undertake no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this document.

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) deteriorating credit quality; (2) loan concentration by location or industry of borrowers or collateral; (3) problems encountered by other financial institutions; (4) inadequate sources of funding or liquidity; (5) unfavorable actions of rating agencies; (6) inability to maintain or grow deposits; (7) limitations on the ability to receive dividends from subsidiaries; (8) cyber-security risks; (9) Fifth Third’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (10) failures by third-party service providers; (11) inability to manage strategic initiatives and/or organizational changes; (12) inability to implement technology system enhancements; (13) failure of internal controls and other risk management systems; (14) losses related to fraud, theft or violence; (15) inability to attract and retain skilled personnel; (16) adverse impacts of government regulation; (17) governmental or regulatory changes or other actions; (18) failures to meet applicable capital requirements; (19) regulatory objections to Fifth Third’s capital plan; (20) regulation of Fifth Third’s derivatives activities; (21) deposit insurance premiums; (22) assessments for the orderly liquidation fund; (23) replacement of LIBOR; (24) weakness in the national or local economies; (25) global political and economic uncertainty or negative actions; (26) changes in interest rates; (27) changes and trends in capital markets; (28) fluctuation of Fifth Third’s stock price; (29) volatility in mortgage banking revenue; (30) litigation, investigations, and enforcement proceedings by governmental authorities; (31) breaches of contractual covenants, representations and warranties; (32) competition and changes in the financial services industry; (33) changing retail distribution strategies, customer preferences and behavior; (34) risks relating to the merger with MB Financial, Inc. and Fifth Third’s ability to realize anticipated benefits of the merger; (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 or other natural disasters; and (43) the impact of reputational risk created by these or other 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.

# # #

LOGO

Quarterly Financial Review for March 31, 2019

Table of Contents



Financial Highlights			15-16
Consolidated Statements of Income			17
Consolidated Balance Sheets			18-19
Consolidated Statements of Changes in Equity			20
Average Balance Sheet and Yield Analysis			21-22
Summary of Loans and Leases			23
Regulatory Capital			24
Summary of Credit Loss Experience			25
Asset Quality			26
Regulation G Non-GAAP Reconciliation			27-29
Segment Presentation			30


Fifth Third Bancorp and Subsidiaries
Financial Highlights							% / bps
$ in millions, except per share data	For the Three Months Ended						Change
(unaudited)	March		December		March
	2019		2018		2018		Seq		Yr/Yr
Income Statement Data^(a)
Net interest income		$1,082		$1,081		$996		-		9%
Net interest income (FTE)^(b)		$1,086		$1,085		$999		-		9%
Noninterest income		1,101		575		909		91%		21%
Total revenue (FTE)		2,187		1,660		1,908		32%		15%
Provision for credit losses		90		97		13		(7%)		592%
Noninterest expense		1,097		975		1,010		13%		9%
Net income attributable to Bancorp		775		455		701		70%		11%
Net income available to common shareholders		760		432		686		76%		11%

Earnings Per Share Data
Net income allocated to common shareholders		752		427		678		76%		11%
Average common shares outstanding (in thousands):
Basic		661,057		653,062		689,820		1%		(4%)
Diluted		670,685		662,966		704,101		1%		(5%)
Earnings per share, basic		$1.14		$0.65		$0.98		75%		16%
Earnings per share, diluted		1.12		0.64		0.96		75%		17%

Common Share Data
Cash dividends per common share		$0.22		$0.22		$0.16		-		38%
Book value per share		24.77		23.07		21.44		7%		16%
Market price per share		25.22		23.53		31.75		7%		(21%)
Common shares outstanding (in thousands)		739,406		646,631		684,942		14%		8%
Market capitalization		$18,648		$15,215		$21,747		23%		(14%)

Financial Ratios^(a)
Return on average assets		2.11%		1.25%		2.01%		86		10
Return on average common equity		19.6%		11.8%		18.8%		780		80
Return on average tangible common equity^(b)		23.9%		14.3%		22.6%		960		130
Noninterest income as a percent of total revenue^(b)		50%		35%		48%		1500		200
Dividend payout		19.3%		33.8%		16.3%		(1450)		300
Average total Bancorp shareholders’ equity as a percent of average assets		11.43%		10.95%		11.41%		48		2
Tangible common equity^(b)		8.21%		8.71%		9.03%		(50)		(82)
Net interest margin (FTE)^(b)		3.28%		3.29%		3.18%		(1)		10
Efficiency (FTE)^(b)		50.2%		58.7%		52.9%		(850)		(270)
Effective tax rate		22.2%		22.4%		20.5%		(20)		170

Credit Quality
Net losses charged-off		$77		$83		$81		(7%)		(5%)
Net losses charged-off as a percent of average portfolio loans and leases		0.32%		0.35%		0.36%		(3)		(4)
ALLL as a percent of portfolio loans and leases		1.02%		1.16%		1.24%		(14)		(22)
Allowance for credit losses as a percent of portfolio loans and leases^(h)		1.14%		1.30%		1.40%		(16)		(26)
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO		0.45%		0.41%		0.55%		4		(10)

Average Balances
Loans and leases, including held for sale		$98,362		$95,398		$92,869		3%		6%
Securities and other short-term investments		36,101		35,674		34,677		1%		4%
Assets		148,968		144,185		141,450		3%		5%
Transaction deposits^(c)		100,647		99,721		97,018		1%		4%
Core deposits^(d)		105,507		104,087		100,874		1%		5%
Wholesale funding^(e)		22,187		20,660		20,558		7%		8%
Bancorp shareholders’ equity		17,025		15,794		16,146		8%		5%

Regulatory Capital and Liquidity Ratios^(f)
CET1 capital^(g)		9.65%		10.24%		10.82%		(59)		(117)
Tier I risk-based capital^(g)		10.72%		11.32%		11.95%		(60)		(123)
Total risk-based capital^(g)		13.72%		14.48%		15.25%		(76)		(153)
Tier I leverage		9.94%		9.72%		10.11%		22		(17)
Modified liquidity coverage ratio (LCR)		113%		128%		113%		(12%)		-

Operations
Banking centers		1,207		1,121		1,153		8%		5%
ATMs		2,559		2,419		2,459		6%		4%
Full-time equivalent employees		20,115		17,437		18,344		15%		10%

(a)

Certain prior period data has been reclassified to conform to current period presentation.

(b)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 27.

(c)

Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.

(d)

Includes transaction deposits plus other time deposits.

(e)

Includes certificates $100,000 and over, other deposits, federal funds purchased, other short-term borrowings and long-term debt.

(f)

Current period regulatory capital and liquidity ratios are estimates.

(g)

(h)

The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.


Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share data	For the Three Months Ended
(unaudited)	March		December		September		June		March
	2019		2018		2018		2018		2018
Income Statement Data^(a)
Net interest income		$1,082		$1,081		$1,043		$1,020		$996
Net interest income (FTE)^(b)		1,086		1,085		1,047		1,024		999
Noninterest income		1,101		575		563		743		909
Total revenue (FTE)		2,187		1,660		1,610		1,767		1,908
Provision for credit losses		90		97		84		14		13
Noninterest expense		1,097		975		972		1,001		1,010
Net income attributable to Bancorp		775		455		436		602		701
Net income available to common shareholders		760		432		421		579		686

Earnings Per Share Data
Net income allocated to common shareholders		$752		$427		$417		$573		$678
Average common shares outstanding (in thousands):
Basic		661,057		653,062		667,624		683,345		689,820
Diluted		670,685		662,966		679,199		696,210		704,101
Earnings per share, basic		$1.14		$0.65		$0.62		$0.84		$0.98
Earnings per share, diluted		1.12		0.64		0.61		0.82		0.96

Common Share Data
Cash dividends per common share		$0.22		$0.22		$0.18		$0.18		$0.16
Book value per share		24.77		23.07		21.70		21.75		21.44
Market value per share		25.22		23.53		27.92		28.70		31.75
Common shares outstanding (in thousands)		739,406		646,631		661,373		678,162		684,942
Market capitalization		$18,648		$15,215		$18,466		$19,463		$21,747

Financial Ratios^(a)
Return on average assets		2.11%		1.25%		1.22%		1.71%		2.01%
Return on average common equity		19.6%		11.8%		11.4%		15.9%		18.8%
Return on average tangible common equity^(b)		23.9%		14.3%		13.8%		19.2%		22.6%
Noninterest income as a percent of total revenue^(b)		50%		35%		35%		42%		48%
Dividend payout		19.3%		33.8%		29.0%		21.4%		16.3%
Average total Bancorp shareholders’ equity as a percent of average assets		11.43%		10.95%		11.29%		11.28%		11.41%
Tangible common equity^(b)		8.21%		8.71%		9.02%		9.23%		9.03%
Net interest margin (FTE)^(b)		3.28%		3.29%		3.23%		3.21%		3.18%
Efficiency (FTE)^(b)		50.2%		58.7%		60.4%		56.7%		52.9%
Effective tax rate		22.2%		22.4%		20.7%		19.6%		20.5%

Credit Quality
Net losses charged-off		$77		$83		$72		$94		$81
Net losses charged-off as a percent of average portfolio loans and leases		0.32%		0.35%		0.30%		0.41%		0.36%
ALLL as a percent of portfolio loans and leases		1.02%		1.16%		1.17%		1.17%		1.24%
Allowance for credit losses as a percent of portfolio loans and leases^(h)		1.14%		1.30%		1.31%		1.31%		1.40%
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO		0.45%		0.41%		0.48%		0.52%		0.55%

Average Balances
Loans and leases, including held for sale		$98,362		$95,398		$93,977		$93,232		$92,869
Securities and other short-term investments		36,101		35,674		34,822		34,935		34,677
Assets		148,968		144,185		141,654		141,420		141,450
Transaction deposits^(c)		100,647		99,721		97,315		97,574		97,018
Core deposits^(d)		105,507		104,087		101,492		101,592		100,874
Wholesale funding^(e)		22,187		20,660		20,613		20,464		20,558
Bancorp shareholders’ equity		17,025		15,794		15,994		15,947		16,146

Regulatory Capital and Liquidity Ratios^(f)
CET1 capital^(g)		9.65%		10.24%		10.67%		10.91%		10.82%
Tier I risk-based capital^(g)		10.72%		11.32%		11.78%		12.02%		11.95%
Total risk-based capital^(g)		13.72%		14.48%		14.94%		15.21%		15.25%
Tier I leverage		9.94%		9.72%		10.10%		10.24%		10.11%
Modified liquidity coverage ratio (LCR)		113%		128%		119%		116%		113%

Operations
Banking centers		1,207		1,121		1,152		1,158		1,153
ATMs		2,559		2,419		2,443		2,458		2,459
Full-time equivalent employees		20,115		17,437		17,512		18,163		18,344

(a)

Certain prior period data has been reclassified to conform to current period presentation.

(b)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 27.

(c)

Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.

(d)

Includes transaction deposits plus other time deposits.

(e)

Includes certificates $100,000 and over, other deposits, federal funds purchased, other short-term borrowings and long-term debt.

(f)

Current period regulatory capital and liquidity ratios are estimates.

(g)

(h)

The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.


Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income^(a)
$ in millions	For the Three Months Ended							% Change
(unaudited)	March		December		March
	2019		2018		2018			Seq		Yr/Yr
Interest Income
Interest and fees on loans and leases		$1,143		$1,104		$938			4%		22%
Interest on securities		281		282		263			-		7%
Interest on other short-term investments		9		7		5			29%		80%
Total interest income		1,433		1,393		1,206			3%		19%

Interest Expense
Interest on deposits		205		179		95			15%		116%
Interest on federal funds purchased		12		13		2			(8%)		500%
Interest on other short-term borrowings		6		4		8			50%		(25%)
Interest on long-term debt		128		116		105			10%		22%
Total interest expense		351		312		210			13%		67%

Net Interest Income		1,082		1,081		996			-		9%

Provision for credit losses		90		97		13			(7%)		592%
Net Interest Income After Provision for Credit Losses		992		984		983			1%		1%

Noninterest Income
Service charges on deposits		131		135		137			(3%)		(4%)
Corporate banking revenue		112		130		88			(14%)		27%
Mortgage banking net revenue		56		54		56			4%		-
Wealth and asset management revenue		112		109		113			3%		(1%)
Card and processing revenue		79		84		79			(6%)		-
Other noninterest income		592		93		460			537%		29%
Securities gains (losses), net		16		(32)		(11	)		NM		NM
Securities gains (losses), net - non-qualifying hedges on mortgage servicing rights		3		2		(13	)		50%		NM
Total noninterest income		1,101		575		909			91%		21%

Noninterest Expense
Compensation and benefits		610		506		557			21%		10%
Net occupancy expense		75		73		75			3%		-
Technology and communications		83		79		68			5%		22%
Equipment expense		30		31		31			(3%)		(3%)
Card and processing expense		31		33		29			(6%)		7%
Other noninterest expense		268		253		250			6%		7%
Total noninterest expense		1,097		975		1,010			13%		9%
Income Before Income Taxes		996		584		882			71%		13%
Applicable income tax expense		221		129		181			71%		22%
Net Income		775		455		701			70%		11%
Less: Net income attributable to noncontrolling interests		-		-		-			NM		NM
Net Income Attributable to Bancorp		775		455		701			70%		11%
Dividends on preferred stock		15		23		15			(35%)		-
Net Income Available to Common Shareholders		$760		$432		$686			76%		11%

(a)

Certain prior period data has been reclassified to conform to current period presentation.


Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data	As of						% Change
(unaudited)	March		December		March
	2019		2018		2018		Seq	Yr/Yr
Assets
Cash and due from banks	$2,749		$2,681		$2,038		3%	35%
Other short-term investments	3,556		1,825		1,747		95%	104%
Available-for-sale debt and other securities^(a)	35,048		32,830		31,819		7%	10%
Held-to-maturity securities^(b)	21		18		23		17%	(9%)
Trading debt securities	325		287		571		13%	(43%)
Equity securities	426		452		418		(6%)	2%
Loans and leases held for sale	692		607		717		14%	(3%)
Portfolio loans and leases:
Commercial and industrial loans	51,862		44,340		41,635		17%	25%
Commercial mortgage loans	10,686		6,974		6,509		53%	64%
Commercial construction loans	5,231		4,657		4,766		12%	10%
Commercial leases	3,909		3,600		3,919		9%	-
Residential mortgage loans	16,811		15,504		15,563		8%	8%
Home equity	6,435		6,402		6,757		1%	(5%)
Indirect secured consumer loans^(c)	10,031		8,976		9,018		12%	11%
Credit card	2,388		2,470		2,188		(3%)	9%
Other consumer loans	2,489		2,342		1,615		6%	54%
Portfolio loans and leases	109,842		95,265		91,970		15%	19%
Allowance for loan and lease losses	(1,115	)	(1,103	)	(1,138	)	1%	(2%)
Portfolio loans and leases, net	108,727		94,162		90,832		15%	20%
Bank premises and equipment	2,092		1,861		1,966		12%	6%
Operating lease equipment	908		518		625		75%	45%
Goodwill	4,321		2,478		2,462		74%	76%
Intangible assets	218		40		30		445%	627%
Servicing rights	1,141		938		926		22%	23%
Other assets	7,629		7,372		7,209		3%	6%
Total Assets	$167,853		$146,069		$141,383		15%	19%

Liabilities
Deposits:
Demand	$35,963		$32,116		$34,066		12%	6%
Interest checking	35,746		34,058		29,627		5%	21%
Savings	14,451		12,907		13,751		12%	5%
Money market	25,942		22,597		21,540		15%	20%
Foreign office	154		240		374		(36%)	(59%)
Other time	5,539		4,490		3,945		23%	40%
Certificates $100,000 and over	5,569		2,427		2,042		129%	173%
Other deposits	300		-		116		NM	159%
Total deposits	123,664		108,835		105,461		14%	17%
Federal funds purchased	2,630		1,925		178		37%	1378%
Other short-term borrowings	1,329		573		1,335		132%	-
Accrued taxes, interest and expenses	2,242		1,562		1,155		44%	94%
Other liabilities	2,661		2,498		2,418		7%	10%
Long-term debt	15,483		14,426		14,800		7%	5%
Total Liabilities	148,009		129,819		125,347		14%	18%
Equity
Common stock^(d)	2,051		2,051		2,051		-	-
Preferred stock	1,331		1,331		1,331		-	-
Capital surplus	3,444		2,873		2,828		20%	22%
Retained earnings	17,184		16,578		15,539		4%	11%
Accumulated other comprehensive income (loss)	409		(112	)	(389	)	NM	NM
Treasury stock	(4,772	)	(6,471	)	(5,344	)	(26%)	(11%)
Total Bancorp shareholders’ equity	19,647		16,250		16,016		21%	23%
Noncontrolling interests	197		-		20		NM	885%
Total Equity	19,844		16,250		16,036		22%	24%
Total Liabilities and Equity	$167,853		$146,069		$141,383		15%	19%
(a) Amortized cost	$34,784		$33,128		$32,230		5%	8%
(b) Market values	21		18		23		17%	(9%)
(c) The Bancorp acquired indirect motorcycle, powersports, recreational vehicles and marine loans in the acquisition of MB Financial. These loans are included in addition to automobile loans in the line item “indirect secured consumer loans”. Point-of-sale unsecured loans continue to be recorded in other consumer loans.
(d) Common shares, stated value $2.22 per share (in thousands):
Authorized	2,000,000		2,000,000		2,000,000		-	-
Outstanding, excluding treasury	739,406		646,631		684,942		14%	8%
Treasury	184,486		277,262		238,951		(33%)	(23%)


Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data	As of
(unaudited)	March		December		September		June		March
	2019		2018		2018		2018		2018
Assets
Cash and due from banks	$2,749		$2,681		$2,100		$2,052		$2,038
Other short-term investments	3,556		1,825		1,429		1,636		1,747
Available-for-sale debt and other securities^(a)	35,048		32,830		31,808		31,961		31,819
Held-to-maturity securities^(b)	21		18		18		19		23
Trading debt securities	325		287		269		280		571
Equity securities	426		452		500		475		418
Loans and leases held for sale	692		607		663		783		717
Portfolio loans and leases:
Commercial and industrial loans	51,862		44,340		42,631		41,403		41,635
Commercial mortgage loans	10,686		6,974		6,695		6,625		6,509
Commercial construction loans	5,231		4,657		4,892		4,687		4,766
Commercial leases	3,909		3,600		3,697		3,788		3,919
Residential mortgage loans	16,811		15,504		15,585		15,640		15,563
Home equity	6,435		6,402		6,485		6,599		6,757
Indirect secured consumer loans^(c)	10,031		8,976		9,002		8,938		9,018
Credit card	2,388		2,470		2,325		2,270		2,188
Other consumer loans	2,489		2,342		2,131		1,982		1,615
Portfolio loans and leases	109,842		95,265		93,443		91,932		91,970
Allowance for loan and lease losses	(1,115	)	(1,103	)	(1,091	)	(1,077	)	(1,138)
Portfolio loans and leases, net	108,727		94,162		92,352		90,855		90,832
Bank premises and equipment	2,092		1,861		1,896		1,915		1,966
Operating lease equipment	908		518		546		606		625
Goodwill	4,321		2,478		2,462		2,462		2,462
Intangible assets	218		40		28		30		30
Servicing rights	1,141		938		1,010		959		926
Other assets	7,629		7,372		6,509		6,562		7,209
Total Assets	$167,853		$146,069		$141,590		$140,595		$141,383

Liabilities
Deposits:
Demand	$35,963		$32,116		$31,803		$32,680		$34,066
Interest checking	35,746		34,058		30,288		29,452		29,627
Savings	14,451		12,907		13,027		13,455		13,751
Money market	25,942		22,597		21,977		21,593		21,540
Foreign office	154		240		298		336		374
Other time	5,539		4,490		4,249		4,058		3,945
Certificates $100,000 and over	5,569		2,427		2,700		2,557		2,042
Other deposits	300		-		-		-		116
Total deposits	123,664		108,835		104,342		104,131		105,461
Federal funds purchased	2,630		1,925		2,316		597		178
Other short-term borrowings	1,329		573		1,114		1,763		1,335
Accrued taxes, interest and expenses	2,242		1,562		1,209		1,258		1,155
Other liabilities	2,661		2,498		2,448		2,425		2,418
Long-term debt	15,483		14,426		14,460		14,321		14,800
Total Liabilities	148,009		129,819		125,889		124,495		125,347
Equity
Common stock^(d)	2,051		2,051		2,051		2,051		2,051
Preferred stock	1,331		1,331		1,331		1,331		1,331
Capital surplus	3,444		2,873		2,856		2,833		2,828
Retained earnings	17,184		16,578		16,291		15,991		15,539
Accumulated other comprehensive income (loss)	409		(112	)	(775	)	(552	)	(389)
Treasury stock	(4,772	)	(6,471	)	(6,073	)	(5,574	)	(5,344)
Total Bancorp shareholders’ equity	19,647		16,250		15,681		16,080		16,016
Noncontrolling interests	197		-		20		20		20
Total Equity	19,844		16,250		15,701		16,100		16,036
Total Liabilities and Equity	$167,853		$146,069		$141,590		$140,595		$141,383
(a) Amortized cost	$34,784		$33,128		$32,707		$32,589		$32,230
(b) Market values	21		18		18		19		23
(c) The Bancorp acquired indirect motorcycle, powersports, recreational vehicles and marine loans in the acquisition of MB Financial. These loans are included in addition to automobile loans in the line item “indirect secured consumer loans”. Point-of-sale unsecured loans continue to be recorded in other consumer loans.
(d) Common shares, stated value $2.22 per share (in thousands):
Authorized	2,000,000		2,000,000		2,000,000		2,000,000		2,000,000
Outstanding, excluding treasury	739,406		646,631		661,373		678,162		684,942
Treasury	184,486		277,262		262,520		245,731		238,951


Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
	For the Three Months Ended

	March		March
	2019		2018
Total Equity, Beginning		$16,250	$16,220
Net income attributable to Bancorp		775	701
Other comprehensive income, net of tax:
Change in unrealized gains (losses):
Available-for-sale debt securities		431	(453)
Qualifying cash flow hedges		89	(8)
Change in accumulated other comprehensive income related to employee benefit plans		1	1
Comprehensive income		$1,296	$241
Cash dividends declared:
Common stock		(165)	(110)
Preferred stock		(15)	(15)
Impact of stock transactions under stock compensation plans, net		25	14
Shares acquired for treasury		(913)	(318)
Impact of acquisition		3,159	-
Noncontrolling interest		197	-
Impact of cumulative effect of change in accounting principles		10	4
Total Equity, Ending		$19,844	$16,036


Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate Analysis
$ in millions	For the Three Months Ended					% Change
(unaudited)	March		December	March
	2019		2018	2018		Seq	Yr/Yr
Assets
Interest-earning assets:
Commercial and industrial loans	$46,070		$43,911	$41,799		5%	10%
Commercial mortgage loans	7,417		6,868	6,588		8%	13%
Commercial construction loans	4,838		4,885	4,671		(1%)	4%
Commercial leases	3,555		3,633	3,960		(2%)	(10%)
Residential mortgage loans	16,150		16,074	16,086		-	-
Home equity	6,356		6,438	6,889		(1%)	(8%)
Indirect secured consumer loans^(a)	9,176		8,970	9,064		2%	1%
Credit card	2,396		2,373	2,224		1%	8%
Other consumer loans	2,404		2,246	1,588		7%	51%
Taxable securities	34,320		34,126	33,133		1%	4%
Tax exempt securities	28		40	73		(30%)	(62%)
Other short-term investments	1,753		1,508	1,471		16%	19%
Total interest-earning assets	134,463		131,072	127,546		3%	5%
Cash and due from banks	2,217		2,253	2,175		(2%)	2%
Other assets	13,391		11,952	12,924		12%	4%
Allowance for loan and lease losses	(1,103	)	(1,092)	(1,195	)	1%	(8%)
Total Assets	$148,968		$144,185	$141,450		3%	5%

Liabilities
Interest-bearing liabilities:
Interest checking deposits	$33,697		$32,428	$28,403		4%	19%
Savings deposits	13,052		12,933	13,546		1%	(4%)
Money market deposits	23,133		22,517	20,750		3%	11%
Foreign office deposits	208		272	494		(24%)	(58%)
Other time deposits	4,860		4,366	3,856		11%	26%
Total interest-bearing core deposits	74,950		72,516	67,049		3%	12%
Certificates $100,000 and over	3,358		2,662	2,284		26%	47%
Other deposits	726		746	379		(3%)	92%
Federal funds purchased	2,019		2,254	692		(10%)	192%
Other short-term borrowings	646		578	2,423		12%	(73%)
Long-term debt	15,438		14,420	14,780		7%	4%
Total interest-bearing liabilities	97,137		93,176	87,607		4%	11%
Demand deposits	30,557		31,571	33,825		(3%)	(10%)
Other liabilities	4,227		3,631	3,852		16%	10%
Total Liabilities	131,921		128,378	125,284		3%	5%
Total Equity	17,047		15,807	16,166		8%	5%
Total Liabilities and Equity	$148,968		$144,185	$141,450		3%	5%
	For the Three Months Ended					bps Change
	March		December	March
Yield/Rate Analysis	2019		2018	2018		Seq	Yr/Yr
Interest-earning assets:
Commercial and industrial loans^(b)	4.67%		4.56%	3.96%		11	71
Commercial mortgage loans^(b)	4.80%		4.67%	4.20%		13	60
Commercial construction loans^(b)	5.55%		5.33%	4.59%		22	96
Commercial leases^(b)	3.08%		2.89%	2.78%		19	30
Residential mortgage loans	3.71%		3.63%	3.60%		8	11
Home equity	5.34%		5.21%	4.62%		13	72
Indirect secured consumer loans^(a)	3.79%		3.64%	3.12%		15	67
Credit card	12.63%		12.50%	12.36%		13	27
Other consumer loans	7.49%		7.28%	6.58%		21	91
Total loans and leases	4.73%		4.61%	4.11%		12	62
Taxable securities	3.32%		3.27%	3.21%		5	11
Tax exempt securities^(b)	4.80%		3.86%	1.40%		94	340
Other short-term investments	1.97%		1.96%	1.37%		1	60
Total interest-earning assets	4.33%		4.23%	3.85%		10	48

Interest-bearing liabilities:
Interest checking deposits	1.18%		1.07%	0.63%		11	55
Savings deposits	0.15%		0.13%	0.07%		2	8
Money market deposits	1.03%		0.91%	0.53%		12	50
Foreign office deposits	0.60%		0.54%	0.13%		6	47
Other time deposits	1.80%		1.65%	1.25%		15	55
Total interest-bearing core deposits	0.99%		0.88%	0.52%		11	47
Certificates $100,000 and over	2.13%		1.97%	1.49%		16	64
Other deposits	2.43%		2.23%	1.44%		20	99
Federal funds purchased	2.43%		2.25%	1.43%		18	100
Other short-term borrowings	3.62%		3.01%	1.34%		61	228
Long-term debt	3.35%		3.18%	2.86%		17	49
Total interest-bearing liabilities	1.46%		1.33%	0.97%		13	49
(a) The Bancorp acquired indirect motorcycle, powersports, recreational vehicles and marine loans in the acquisition of MB Financial. These loans are included in addition to automobile loans in the line item “indirect secured consumer loans”. Point-of-sale unsecured loans continue to be recorded in other consumer loans.
(b) Presented on an FTE basis.


Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate Analysis
$ in millions	For the Three Months Ended
(unaudited)	March		December		September		June		March
	2019		2018		2018		2018		2018
Assets
Interest-earning assets:
Commercial and industrial loans	$46,070		$43,911		$42,614		$42,327		$41,799
Commercial mortgage loans	7,417		6,868		6,664		6,521		6,588
Commercial construction loans	4,838		4,885		4,870		4,743		4,671
Commercial leases	3,555		3,633		3,746		3,847		3,960
Residential mortgage loans	16,150		16,074		16,226		16,213		16,086
Home equity	6,356		6,438		6,529		6,672		6,889
Indirect secured consumer loans^(a)	9,176		8,970		8,969		8,968		9,064
Credit card	2,396		2,373		2,299		2,221		2,224
Other consumer loans	2,404		2,246		2,060		1,720		1,588
Taxable securities	34,320		34,126		33,301		33,380		33,133
Tax exempt securities	28		40		69		81		73
Other short-term investments	1,753		1,508		1,452		1,474		1,471
Total interest-earning assets	134,463		131,072		128,799		128,167		127,546
Cash and due from banks	2,217		2,253		2,193		2,179		2,175
Other assets	13,391		11,952		11,739		12,211		12,924
Allowance for loan and lease losses	(1,103	)	(1,092	)	(1,077	)	(1,137	)	(1,195)
Total Assets	$148,968		$144,185		$141,654		$141,420		$141,450
Liabilities
Interest-bearing liabilities:
Interest checking deposits	$33,697		$32,428		$29,681		$28,715		$28,403
Savings deposits	13,052		12,933		13,231		13,618		13,546
Money market deposits	23,133		22,517		21,753		22,036		20,750
Foreign office deposits	208		272		317		371		494
Other time deposits	4,860		4,366		4,177		4,018		3,856
Total interest-bearing core deposits	74,950		72,516		69,159		68,758		67,049
Certificates $100,000 and over	3,358		2,662		2,596		2,155		2,284
Other deposits	726		746		578		198		379
Federal funds purchased	2,019		2,254		1,987		1,080		692
Other short-term borrowings	646		578		1,018		2,452		2,423
Long-term debt	15,438		14,420		14,434		14,579		14,780
Total interest-bearing liabilities	97,137		93,176		89,772		89,222		87,607
Demand deposits	30,557		31,571		32,333		32,834		33,825
Other liabilities	4,227		3,631		3,535		3,397		3,852
Total Liabilities	131,921		128,378		125,640		125,453		125,284
Total Equity	17,047		15,807		16,014		15,967		16,166
Total Liabilities and Equity	$148,968		$144,185		$141,654		$141,420		$141,450
Yield/Rate Analysis
Interest-earning assets:
Commercial and industrial loans^(b)	4.67%		4.56%		4.32%		4.26%		3.96%
Commercial mortgage loans^(b)	4.80%		4.67%		4.57%		4.43%		4.20%
Commercial construction loans^(b)	5.55%		5.33%		5.14%		4.94%		4.59%
Commercial leases^(b)	3.08%		2.89%		2.85%		2.82%		2.78%
Residential mortgage loans	3.71%		3.63%		3.58%		3.56%		3.60%
Home equity	5.34%		5.21%		5.03%		4.85%		4.62%
Indirect secured consumer loans^(a)	3.79%		3.64%		3.47%		3.26%		3.12%
Credit card	12.63%		12.50%		12.17%		11.96%		12.36%
Other consumer loans	7.49%		7.28%		6.98%		6.75%		6.58%
Total loans and leases	4.73%		4.61%		4.41%		4.30%		4.11%
Taxable securities	3.32%		3.27%		3.20%		3.20%		3.21%
Tax exempt securities^(b)	4.80%		3.86%		4.35%		4.03%		1.40%
Other short-term investments	1.97%		1.96%		1.74%		1.62%		1.37%
Total interest-earning assets	4.33%		4.23%		4.07%		3.98%		3.85%
Interest-bearing liabilities:
Interest checking deposits	1.18%		1.07%		0.88%		0.76%		0.63%
Savings deposits	0.15%		0.13%		0.11%		0.10%		0.07%
Money market deposits	1.03%		0.91%		0.80%		0.71%		0.53%
Foreign office deposits	0.60%		0.54%		0.33%		0.45%		0.13%
Other time deposits	1.80%		1.65%		1.48%		1.34%		1.25%
Total interest-bearing core deposits	0.99%		0.88%		0.74%		0.65%		0.52%
Certificates $100,000 and over	2.13%		1.97%		1.85%		1.35%		1.49%
Other deposits	2.43%		2.23%		1.95%		1.80%		1.44%
Federal funds purchased	2.43%		2.25%		1.96%		1.76%		1.43%
Other short-term borrowings	3.62%		3.01%		2.22%		1.84%		1.34%
Long-term debt	3.35%		3.18%		3.09%		3.11%		2.86%
Total interest-bearing liabilities	1.46%		1.33%		1.20%		1.12%		0.97%
Ratios:
Net interest margin (FTE)^(c)	3.28%		3.29%		3.23%		3.21%		3.18%
Net interest rate spread (FTE)^(c)	2.87%		2.90%		2.87%		2.86%		2.88%
Interest-bearing liabilities to interest-earning assets	72.24%		71.09%		69.70%		69.61%		68.69%

(a)

(b)

Presented on an FTE basis.

(c)

Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 27.


Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millions	For the Three Months Ended
(unaudited)	March	December	September	June	March
	2019	2018	2018	2018	2018
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans	$46,011	$43,829	$42,494	$42,292	$41,782
Commercial mortgage loans	7,414	6,864	6,635	6,514	6,582
Commercial construction loans	4,838	4,885	4,870	4,743	4,671
Commercial leases	3,555	3,632	3,738	3,847	3,960
Total commercial loans and leases	61,818	59,210	57,737	57,396	56,995
Consumer loans:
Residential mortgage loans	15,624	15,520	15,598	15,581	15,575
Home equity	6,355	6,438	6,529	6,672	6,889
Indirect secured consumer loans^(a)	9,176	8,970	8,969	8,968	9,064
Credit card	2,396	2,373	2,299	2,221	2,224
Other consumer loans	2,404	2,246	2,060	1,719	1,587
Total consumer loans	35,955	35,547	35,455	35,161	35,339
Total average portfolio loans and leases	$97,773	$94,757	$93,192	$92,557	$92,334

Average loans and leases held for sale	$589	$641	$785	$675	$535

End of Period Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans	$51,862	$44,340	$42,631	$41,403	$41,635
Commercial mortgage loans	10,686	6,974	6,695	6,625	6,509
Commercial construction loans	5,231	4,657	4,892	4,687	4,766
Commercial leases	3,909	3,600	3,697	3,788	3,919
Total commercial loans and leases	71,688	59,571	57,915	56,503	56,829
Consumer loans:
Residential mortgage loans	16,811	15,504	15,585	15,640	15,563
Home equity	6,435	6,402	6,485	6,599	6,757
Indirect secured consumer loans^(a)	10,031	8,976	9,002	8,938	9,018
Credit card	2,388	2,470	2,325	2,270	2,188
Other consumer loans	2,489	2,342	2,131	1,982	1,615
Total consumer loans	38,154	35,694	35,528	35,429	35,141
Total portfolio loans and leases	$109,842	$95,265	$93,443	$91,932	$91,970

Loans and leases held for sale	$692	$607	$663	$783	$717

Operating lease equipment	$908	$518	$546	$606	$625

Loans and leases serviced for others:^(b)
Commercial and industrial loans	$1,024	$514	$465	$421	$401
Commercial mortgage loans	467	292	294	263	238
Commercial construction loans	261	130	108	82	87
Commercial leases	216	224	225	222	243
Residential mortgage loans	83,900	63,154	63,996	62,247	60,973
Other consumer loans	50	50	50	50	50
Total loans and leases serviced for others	85,918	64,364	65,138	63,285	61,992
Total loans and leases serviced	$197,360	$160,754	$159,790	$156,606	$155,304
(a) The Bancorp acquired indirect motorcycle, powersports, recreational vehicles and marine loans in the acquisition of MB Financial. These loans are included in addition to automobile loans in the line item “indirect secured consumer loans”. Point-of-sale unsecured loans continue to be recorded in other consumer loans.
(b) Fifth Third sells certain loans and leases and obtains servicing responsibilities.


Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millions	As of
(unaudited)	March	December	September	June	March
	2019^(a)	2018	2018	2018	2018
Regulatory capital:
CET1 capital	$13,416	$12,534	$12,809	$12,986	$12,772
Additional tier I capital	1,478	1,330	1,331	1,331	1,331
Tier I capital	14,894	13,864	14,140	14,317	14,103
Tier II capital	4,175	3,859	3,792	3,799	3,896
Total regulatory capital	$19,069	$17,723	$17,932	$18,116	$17,999
Risk-weighted assets^(b)	$138,997	$122,432	$120,002	$119,073	$118,001

Ratios:
Average total Bancorp shareholders’ equity as a percent of average assets	11.43%	10.95%	11.29%	11.28%	11.41%

Regulatory Capital Ratios:
Fifth Third Bancorp
CET1 capital^(b)	9.65%	10.24%	10.67%	10.91%	10.82%
Tier I risk-based capital^(b)	10.72%	11.32%	11.78%	12.02%	11.95%
Total risk-based capital^(b)	13.72%	14.48%	14.94%	15.21%	15.25%
Tier I leverage	9.94%	9.72%	10.10%	10.24%	10.11%

Fifth Third Bank
Tier I risk-based capital^(b)	12.28%	11.93%	12.27%	12.43%	12.39%
Total risk-based capital^(b)	13.92%	13.57%	13.94%	14.10%	14.15%
Tier I leverage	10.24%	10.27%	10.56%	10.63%	10.51%

(a)

Current period regulatory capital data and ratios are estimated.

(b)


Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millions	For the Three Months Ended
(unaudited)	March			December			September			June			March
	2019			2018			2018			2018			2018
Average portfolio loans and leases:
Commercial and industrial loans		$46,011			$43,829			$42,494			$42,292			$41,782
Commercial mortgage loans		7,414			6,864			6,635			6,514			6,582
Commercial construction loans		4,838			4,885			4,870			4,743			4,671
Commercial leases		3,555			3,632			3,738			3,847			3,960
Residential mortgage loans		15,624			15,520			15,598			15,581			15,575
Home equity		6,355			6,438			6,529			6,672			6,889
Indirect secured consumer loans^(a)		9,176			8,970			8,969			8,968			9,064
Credit card		2,396			2,373			2,299			2,221			2,224
Other consumer loans		2,404			2,246			2,060			1,719			1,587
Total average portfolio loans and leases		$97,773			$94,757			$93,192			$92,557			$92,334

Losses charged-off:
Commercial and industrial loans		($20	)		($32	)		($36	)		($51	)		($33	)
Commercial mortgage loans		-			(1	)		-			(3	)		(2	)
Commercial leases		-			(1	)		-			-			-
Residential mortgage loans		(2	)		(3	)		(3	)		(4	)		(4	)
Home equity		(6	)		(5	)		(6	)		(5	)		(7	)
Indirect secured consumer loans^(a)		(20	)		(19	)		(15	)		(13	)		(17	)
Credit card		(38	)		(34	)		(33	)		(29	)		(28	)
Other consumer loans		(22	)		(21	)		(19	)		(13	)		(12	)
Total losses charged-off		($108	)		($116	)		($112	)		($118	)		($103	)

Recoveries of losses previously charged-off:
Commercial and industrial loans		$2			$2			$8			$4			$5
Commercial mortgage loans		1			3			1			1			1
Commercial leases		-			-			-			-			-
Residential mortgage loans		1			2			1			2			1
Home equity		3			3			3			3			2
Indirect secured consumer loans^(a)		7			6			6			5			6
Credit card		5			5			12			3			3
Other consumer loans		12			12			9			6			4
Total recoveries of losses previously charged-off		$31			$33			$40			$24			$22

Net losses charged-off:
Commercial and industrial loans		($18	)		($30	)		($28	)		($47	)		($28	)
Commercial mortgage loans		1			2			1			(2	)		(1	)
Commercial leases		-			(1	)		-			-			-
Residential mortgage loans		(1	)		(1	)		(2	)		(2	)		(3	)
Home equity		(3	)		(2	)		(3	)		(2	)		(5	)
Indirect secured consumer loans^(a)		(13	)		(13	)		(9	)		(8	)		(11	)
Credit card		(33	)		(29	)		(21	)		(26	)		(25	)
Other consumer loans		(10	)		(9	)		(10	)		(7	)		(8	)
Total net losses charged-off		($77	)		($83	)		($72	)		($94	)		($81	)

Net losses charged-off as a percent of average portfolio loans and leases:
Commercial and industrial loans		0.16%			0.27%			0.26%			0.44%			0.27%
Commercial mortgage loans		(0.05%	)		(0.15%	)		(0.03%	)		0.11%			0.06%
Commercial leases		0.02%			0.12%			0.00%			0.00%			0.00%
Residential mortgage loans		0.02%			0.02%			0.04%			0.05%			0.06%
Home equity		0.20%			0.15%			0.16%			0.12%			0.26%
Indirect secured consumer loans^(a)		0.57%			0.54%			0.41%			0.33%			0.50%
Credit card		5.60%			4.84%			3.53%			4.73%			4.65%
Other consumer loans		1.76%			1.83%			1.94%			1.85%			2.16%
Total net losses charged-off as a percent of average portfolio loans and leases		0.32%			0.35%			0.30%			0.41%			0.36%
(a) The Bancorp acquired indirect motorcycle, powersports, recreational vehicles and marine loans in the acquisition of MB Financial. These loans are included in addition to automobile loans in the line item “indirect secured consumer loans”. Point-of-sale unsecured loans continue to be recorded in other consumer loans.


Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millions	For the Three Months Ended
(unaudited)	March		December		September		June		March
	2019		2018		2018		2018		2018
Allowance for Credit Losses
Allowance for loan and lease losses, beginning	$1,103		$1,091		$1,077		$1,138		$1,196
Total net losses charged-off	(77	)	(83	)	(72	)	(94	)	(81	)
Provision for loan and lease losses	89		95		86		33		23
Allowance for loan and lease losses, ending	$1,115		$1,103		$1,091		$1,077		$1,138

Reserve for unfunded commitments, beginning	$131		$129		$131		$151		$161
Reserve for acquired commitments	1		-		-		-		-
Provision for (benefit from) the reserve for unfunded commitments	1		2		(2	)	(20	)	(10	)
Reserve for unfunded commitments, ending	$133		$131		$129		$131		$151

Components of allowance for credit losses:
Allowance for loan and lease losses	$1,115		$1,103		$1,091		$1,077		$1,138
Reserve for unfunded commitments	133		131		129		131		151
Total allowance for credit losses	$1,248		$1,234		$1,220		$1,208		$1,289

	As of
	March		December		September		June		March
	2019		2018		2018		2018		2018
Nonperforming Assets and Delinquent Loans
Nonaccrual portfolio loans and leases:
Commercial and industrial loans	$112		$54		$69		$99		$155
Commercial mortgage loans	24		9		7		8		9
Commercial leases	18		18		22		25		4
Residential mortgage loans	15		11		11		13		16
Home equity	61		55		58		54		55
Indirect secured consumer loans^(a)	2		-		-		3		-
Other consumer loans	2		1		1		1		1
Total nonaccrual portfolio loans and leases (excludes restructured loans)	234		148		168		203		240
Nonaccrual restructured portfolio commercial loans and leases	159		147		180		173		154
Nonaccrual restructured portfolio consumer loans and leases	56		53		55		61		58
Total nonaccrual portfolio loans and leases	449		348		403		437		452
Repossessed property	11		10		8		7		9
OREO	37		37		37		36		43
Total nonperforming portfolio assets	497		395		448		480		504
Nonaccrual loans held for sale	-		-		18		5		5
Nonaccrual restructured loans held for sale	14		16		17		18		19
Total nonperforming assets	$511		$411		$483		$503		$528

Restructured portfolio consumer loans and leases (accrual)	$950		$961		$987		$1,024		$916
Restructured portfolio commercial loans and leases (accrual)	$59		$60		$80		$104		$249

Loans 90 days past due (accrual):
Commercial and industrial loans	$13		$4		$3		$4		$7
Commercial mortgage loans	23		2		1		-		1
Total commercial loans	36		6		4		4		8
Residential mortgage loans	49		38		40		44		62
Home equity	2		-		-		-		-
Indirect secured consumer loans^(a)	10		12		11		10		9
Credit card	38		37		32		31		28
Other consumer loans	1		-		-		-		-
Total consumer loans	100		87		83		85		99
Total loans 90 days past due (accrual)^(c)	$136		$93		$87		$89		$107

Ratios
Net losses charged-off as a percent of average portfolio loans and leases	0.32%		0.35%		0.30%		0.41%		0.36%
Allowance for loan and lease losses:
As a percent of portfolio loans and leases	1.02%		1.16%		1.17%		1.17%		1.24%
As a percent of nonperforming portfolio loans and leases^(b)	249%		317%		270%		247%		252%
As a percent of nonperforming portfolio assets^(b)	225%		279%		243%		224%		226%
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO^(b)	0.41%		0.37%		0.43%		0.47%		0.49%
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO^(b)	0.45%		0.41%		0.48%		0.52%		0.55%
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property	0.46%		0.43%		0.51%		0.54%		0.57%
(a) The Bancorp acquired indirect motorcycle, powersports, recreational vehicles and marine loans in the acquisition of MB Financial. These loans are included in addition to automobile loans in the line item “indirect secured consumer loans”. Point-of-sale unsecured loans continue to be recorded in other consumer loans.
(b) Excludes nonaccrual loans held for sale. (c) Excludes loans held for sale.

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),” “adjusted revenue,” “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 unrealized gains/losses),” “tangible common equity (including unrealized gains/losses),” “tangible equity,” “tangible book value per share,” “adjusted earnings per share,” “adjusted noninterest income,” “adjusted noninterest expense,” “pre-provision net revenue,” “adjusted efficiency ratio,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” “adjusted net interest margin,” “adjusted pre-provision net revenue,” “adjusted return on average assets,” “efficiency ratio (FTE),” 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 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 they provide 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 unrealized gains/losses), tangible common equity (including unrealized gains/losses), 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, compared to other companies in the industry who present similar measures.

The Bancorp believes adjusted earnings per share, noninterest income, noninterest expense, net interest income, net interest margin, pre-provision net revenue, efficiency ratio, 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 on-going financial performance and enhances comparability of results with prior periods.

The Bancorp believes standalone net interest income, adjusted standalone noninterest income, adjusted standalone noninterest expense, and adjusted standalone pre-provision net revenue are important measures for evaluating Fifth Third’s business performance on a stand-alone basis without the impacts of the MB Financial acquisition.

Management considers various measures when evaluating capital utilization and adequacy, including the tangible equity and tangible common equity (including and excluding unrealized gains/losses), in addition to capital ratios defined by the U.S. banking agencies. These calculations are intended to complement the capital ratios defined by the 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 unrealized gains/losses on certain assets and liabilities enables investors and others to assess the Bancorp’s use of equity without the effects of gains or losses some of which are uncertain and providing the tangible common equity ratio including unrealized gains/losses enables investors and others to assess the Bancorp’s use of equity if all 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 Reg. G reconciliations of all historical Non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page.


Fifth Third Bancorp and Subsidiaries
Regulation G Non-GAAP Reconciliation
$ and shares in millions	For the Three Months Ended
(unaudited)	March			December			September			June			March
	2019			2018			2018			2018			2018
Net interest income		$1,082			$1,081			$1,043			$1,020			$996
Add: Taxable equivalent adjustment		4			4			4			4			3
Net interest income (FTE) (a)		1,086			1,085			1,047			1,024			999
Less: Net interest income impact from 6 business days of MB Financial		16			-			-			-			-
Standalone net interest income (b)		1,070			1,085			1,047			1,024			999

Net interest income (annualized) (c)		4,388			4,289			4,138			4,091			4,039
Net interest income (FTE) (annualized) (d)		4,404			4,305			4,154			4,107			4,052

Interest income		1,433			1,393			1,315			1,269			1,206
Add: Taxable equivalent adjustment		4			4			4			4			3
Interest income (FTE)		1,437			1,397			1,319			1,273			1,209
Interest income (FTE) (annualized) (e)		5,828			5,542			5,233			5,106			4,903

Interest expense (annualized) (f)		1,424			1,238			1,079			999			852
Average interest-earning assets (g)		134,463			131,072			128,799			128,167			127,546
Average interest-bearing liabilities (h)		97,137			93,176			89,772			89,222			87,607

Net interest margin (c) / (g)		3.26%			3.27%			3.21%			3.19%			3.17%
Net interest margin (FTE) (d) / (g)		3.28%			3.29%			3.23%			3.21%			3.18%
Net interest rate spread (FTE) (e) / (g) - (f) / (h)		2.87%			2.90%			2.87%			2.86%			2.88%

Income before income taxes		$996			$584			$550			$748			$882
Add: Taxable equivalent adjustment		4			4			4			4			3
Income before income taxes (FTE)		$1,000			$588			$554			$752			$885

Net income available to common shareholders		$760			$432			$421			$579			$686
Add: Intangible amortization, net of tax		2			1			1			1			1
Tangible net income available to common shareholders (i)		762			433			422			580			687
Tangible net income available to common shareholders (annualized) (j)		3,090			1,718			1,674			2,326			2,786

Average Bancorp shareholders’ equity		17,025			15,794			15,994			15,947			16,146
Less: Average preferred stock		(1,331	)		(1,331	)		(1,331	)		(1,331	)		(1,331	)
Average goodwill		(2,682	)		(2,468	)		(2,462	)		(2,462	)		(2,455	)
Average intangible assets		(58	)		(32	)		(29	)		(30	)		(27	)
Average tangible common equity (k)		12,954			11,963			12,172			12,124			12,333

Total Bancorp shareholders’ equity		19,647			16,250			15,681			16,080			16,016
Less: Preferred stock		(1,331	)		(1,331	)		(1,331	)		(1,331	)		(1,331	)
Goodwill		(4,321	)		(2,478	)		(2,462	)		(2,462	)		(2,462	)
Intangible assets		(218	)		(40	)		(28	)		(30	)		(30	)
Tangible common equity, including unrealized gains / losses (l)		13,777			12,401			11,860			12,257			12,193
Less: Accumulated other comprehensive (income) loss		(409)			112			775			552			389
Tangible common equity, excluding unrealized gains / losses (m)		13,368			12,513			12,635			12,809			12,582
Add: Preferred stock		1,331			1,331			1,331			1,331			1,331
Tangible equity (n)		14,699			13,844			13,966			14,140			13,913

Total assets		167,853			146,069			141,590			140,595			141,383
Less: Goodwill		(4,321	)		(2,478	)		(2,462	)		(2,462	)		(2,462	)
Intangible assets		(218	)		(40	)		(28	)		(30	)		(30	)
Tangible assets, including unrealized gains / losses (o)		163,314			143,551			139,100			138,103			138,891
Less: Accumulated other comprehensive (income) loss, before tax		(518	)		142			981			699			492
Tangible assets, excluding unrealized gains / losses (p)		$162,796			$143,693			$140,081			$138,802			$139,383

Common shares outstanding (q)		739			647			661			678			685
Tangible equity (n) / (p)		9.03%			9.63%			9.97%			10.19%			9.98%
Tangible common equity (excluding unrealized gains/losses) (m) / (p)		8.21%			8.71%			9.02%			9.23%			9.03%
Tangible common equity (including unrealized gains/losses) (l) / (o)		8.44%			8.64%			8.53%			8.88%			8.78%
Tangible book value per share (l) / (q)		$18.64			$19.17			$17.94			$18.08			$17.80


Fifth Third Bancorp and Subsidiaries
Regulation G Non-GAAP Reconciliation
$ in millions	For the Three Months Ended
(unaudited)	March		December		March
	2019		2018		2018
Net income attributable to Bancorp (r)	$775		$455		$701
Net income attributable to Bancorp (annualized) (s)	3,143		1,805		2,843

Adjustments (pre-tax items)
Merger-related expense	76		27		-
Valuation of Visa total return swap	31		(7	)	39
Merger-related branch network impairment charge	13		-		-
Litigation reserve charges	-		-		8
Branch network impairment charge	-		-		8
Vantiv/Worldpay step-up gain	-		-		(414	)
GreenSky securities losses (gains)	(9	)	21		-
Gain on sale of Vantiv/Worldpay shares	(562	)	-		-
Adjustments, after-tax (t)^(a)	(341	)	32		(276	)

Adjustments (tax related items)
Acquisition impact on state deferred taxes	9		-		-
Adjustments, tax related (u)	9		-		-

Noninterest income (v)	1,101		575		909
Merger-related branch network impairment charge	13		-		-
Valuation of Visa total return swap	31		(7	)	39
Gain on sale of Vantiv/Worldpay shares	(562	)	-		-
GreenSky securities losses (gains)	(9	)	21		-
Branch network impairment charge	-		-		8
Vantiv/Worldpay step-up gain	-		-		(414	)
Adjusted noninterest income (w)	574		589		542
Noninterest income impact from 6 business days of MB Financial	12		-		-
Adjusted standalone noninterest income (x)	562		589		542

Noninterest expense (y)	1,097		975		1,010
Merger-related expense	(76	)	(27	)	-
Litigation reserve increase	-		-		(8	)
Adjusted noninterest expense (z)	1,021		948		1,002
Noninterest expense impact from 6 business days of MB Financial	20		-		-
Adjusted standalone noninterest expense (aa)	1,001		948		1,002
Intangible amortization expense (ab)	3		1		1

Adjusted net income attributable to Bancorp (r) + (t) + (u)	443		487		425
Adjusted net income attributable to Bancorp (annualized) (ac)	1,797		1,932		1,724

Adjusted net income available to common shareholders (i) + (t) + (u)	430		465		411
Adjusted net income available to common shareholders (annualized) (ad)	1,744		1,845		1,667

Average assets (ae)	$148,968		$144,185		$141,450
Return on average tangible common equity (j) / (k)	23.9%		14.3%		22.6%
Adjusted return on average tangible common equity (ad) / (k)	13.5%		15.4%		13.5%
Return on average assets (s) / (ae)	2.11%		1.25%		2.01%
Adjusted return on average assets (ac) / (ae)	1.21%		1.34%		1.22%
Efficiency ratio (y) / [(a) + (v)]	50.2%		58.7%		52.9%
Adjusted efficiency ratio [(z) - (ab)] / [(a) + (w)]	61.3%		56.6%		65.0%
Pre-provision net revenue (PPNR) (a) + (v) - (y)	$1,090		$685		$898
Adjusted pre-provision net revenue (PPNR) (a) + (w) - (z)	$639		$726		$539
Adjusted standalone pre-provision net revenue (PPNR) (b) + (x) - (aa)	$631		$726		$539

(a)

Assumes a 23% tax rate, except for merger-related expenses recorded in the first quarter of 2019 which were impacted by certain non-deductible items.


Fifth Third Bancorp and Subsidiaries
Segment Presentation
$ in millions
(unaudited)

For the three months ended March 31, 2019	Commercial Banking		Branch *Banking^(b)***		Consumer Lending^(c)		Wealth and Asset Management		Other/ Eliminations		Total

Net interest income (FTE)^(a)	$513		$584		$63		$49		($123	)	$1,086
Provision for credit losses	(20	)	(52	)	(13	)	-		(5	)	(90	)
Net interest income after provision for credit losses	493		532		50		49		(128	)	996
Noninterest income	227		183		61		114		516		1,101
Noninterest expense	(356	)	(440	)	(101	)	(130	)	(70	)	(1,097	)
Income before income taxes	364		275		10		33		318		1,000
Applicable income tax expense^(a)	(70	)	(58	)	(2	)	(7	)	(88	)	(225	)
Net income	294		217		8		26		230		775

For the three months ended December 31, 2018	Commercial Banking		Branch *Banking^(b)***		Consumer Lending^(c)		Wealth and Asset Management		Other/ Eliminations		Total

Net interest income (FTE)^(a)	$444		$544		$60		$48		($11	)	$1,085
Provision for credit losses^(d)	(15	)	(47	)	(12	)	(5	)	(18	)	(97	)
Net interest income after provision for credit losses	429		497		48		43		(29	)	988
Noninterest income	237		196		58		110		(26	)	575
Noninterest expense^(d)	(317	)	(424	)	(93	)	(122	)	(19	)	(975	)
Income (loss) before income taxes	349		269		13		31		(74	)	588
Applicable income tax (expense) benefit^(a)	(80	)	(56	)	(3	)	(7	)	13		(133	)
Net income (loss)	269		213		10		24		(61	)	455

For the three months ended September 30, 2018	Commercial Banking		Branch *Banking^(b)***		Consumer Lending^(c)		Wealth and Asset Management		Other/ Eliminations		Total

Net interest income (FTE)^(a)	$431		$525		$60		$46		($15	)	$1,047
(Provision for) benefit from credit losses^(d)	11		(34	)	(10	)	(3	)	(48	)	(84	)
Net interest income after provision for credit losses	442		491		50		43		(63	)	963
Noninterest income	235		204		50		115		(41	)	563
Noninterest expense^(d)	(307	)	(433	)	(100	)	(126	)	(6	)	(972	)
Income (loss) before income taxes	370		262		-		32		(110	)	554
Applicable income tax (expense) benefit^(a)	(69	)	(55	)	-		(7	)	13		(118	)
Net income (loss)	301		207		-		25		(97	)	436

For the three months ended June 30, 2018	Commercial Banking		Branch *Banking^(b)***		Consumer Lending^(c)		Wealth and Asset Management		Other/ Eliminations		Total

Net interest income (FTE)^(a)	$431		$499		$59		$45		($10	)	$1,024
(Provision for) benefit from credit losses^(d)	10		(47	)	(8	)	11		20		(14	)
Net interest income after provision for credit losses	441		452		51		56		10		1,010
Noninterest income	229		167		52		109		186		743
Noninterest expense^(d)	(303	)	(432	)	(107	)	(123	)	(36	)	(1,001	)
Income (loss) before income taxes	367		187		(4	)	42		160		752
Applicable income tax (expense) benefit^(a)	(62	)	(40	)	1		(9	)	(40	)	(150	)
Net income (loss)	305		147		(3	)	33		120		602

For the three months ended March 31, 2018	Commercial Banking		Branch *Banking^(b)***		Consumer Lending^(c)		Wealth and Asset Management		Other/ Eliminations		Total

Net interest income (FTE)^(a)	$422		$466		$59		$43		$9		$999
(Provision for) benefit from credit losses^(d)	20		(44	)	(12	)	(16	)	39		(13	)
Net interest income after provision for credit losses	442		422		47		27		48		986
Noninterest income	219		184		46		116		344		909
Noninterest expense^(d)	(338	)	(437	)	(106	)	(131	)	2		(1,010	)
Income (loss) before income taxes	323		169		(13	)	12		394		885
Applicable income tax (expense) benefit^(a)	(67	)	(35	)	3		(3	)	(82	)	(184	)
Net income (loss)	256		134		(10	)	9		312		701

(a)

Includes taxable equivalent adjustments of $4 million, $4 million, $4 million, $4 million and $3 million for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively.

(b)

Branch Banking provides a full range of deposit and loan and lease products to individuals and small businesses through full-service banking centers.

(c)

Consumer Lending includes the Bancorp’s residential mortgage, home equity, automobile and other indirect lending activities.

(d)

Certain prior period data has been reclassified to conform to current period presentation.