FITB 8-K

Fifth Third Bancorp (FITB)

8-K 2020-10-22 For: 2020-10-22

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						FIFTH THIRD BANCORP
						(Registrant)

Date: October 22, 2020						/s/ TAYFUN TUZUN

						Tayfun Tuzun
						Executive Vice President and Chief Financial Officer



Key Financial Data							Key Highlights

$ millions for all balance sheet and income statement items
	3Q20			2Q20			3Q19	–Very strong reported and adjusted return metrics, reflecting strong operating results –Credit losses well below previous expectations with a NCO ratio of 0.35%, the lowest level since 2Q19 –PPNR^(a) exceeded previous guidance, led by strong fees and better-than-expected NII performance (interest-bearing core deposit costs down 14 bps, more than previous guidance) –3Q20 NIM was negatively impacted ~48 bps due to excess liquidity and Paycheck Protection Program (PPP) loans –Strong balance sheet; CET1 ratio of 10.14% well above target range, with record balance sheet liquidity –Grew tangible book value per share for six consecutive quarters

Income Statement Data
Net income available to common shareholders	$562		$163		$530
Net interest income (U.S. GAAP)	1,170		1,200		1,242
Net interest income (FTE)^(a)	1,173		1,203		1,246
Noninterest income	722		650		740
Noninterest expense	1,161		1,121		1,159

Per Share Data
Earnings per share, basic	$0.78		$0.23		$0.72
Earnings per share, diluted	0.78		0.23		0.71
Book value per share	29.25		28.88		27.32
Tangible book value per share^(a)	23.06		22.66		21.06

Balance Sheet & Credit Quality
Average portfolio loans and leases	$113,362		$118,506		$109,541
Average deposits	155,911		150,598		125,206
Net charge-off ratio^(b)	0.35	%	0.44	%	0.36	%
Nonperforming asset ratio^(c)	0.84		0.65		0.47

Financial Ratios
Return on average assets	1.14	%	0.40	%	1.28	%
Return on average common equity	10.7		3.2		10.7
Return on average tangible common equity^(a)	13.8		4.3		14.2
CET1 capital^(d)(e)	10.14		9.72		9.56
Net interest margin^(a)	2.58		2.75		3.32
Efficiency^(a)	61.3		60.5		58.4
Other than the Quarterly Financial Review tables beginning on page 13, 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.


Income Statement Highlights
($ in millions, except per share data)	For the Three Months Ended					% Change
	September	June	September
	2020	2020	2019	Seq	Yr/Yr
Condensed Statements of Income
Net interest income (NII)^(a)	$1,173	$1,203	$1,246	(2)%	(6)%
(Benefit from) provision for credit losses	(15)	485	134	NM	NM
Noninterest income	722	650	740	11%	(2)%
Noninterest expense	1,161	1,121	1,159	4%	—
Income before income taxes^(a)	$749	$247	$693	203%	8%

Taxable equivalent adjustment	$3	$3	$4	—	(25)%
Applicable income tax expense	165	49	140	237%	18%
Net income	$581	$195	$549	198%	6%
Dividends on preferred stock	19	32	19	(41)%	—
Net income available to common shareholders	$562	$163	$530	245%	6%
Earnings per share, diluted	$0.78	$0.23	$0.71	239%	10%


Net Interest Income
(FTE; $ in millions)^(a)	For the Three Months Ended												% Change
	September				June			September
	2020				2020			2019			Seq	Yr/Yr
Interest Income
Interest income	$1,332		$1,406			$1,629			(5)%	(18)%
Interest expense	159		203			383			(22)%	(58)%
Net interest income (NII)	$1,173		$1,203			$1,246			(2)%	(6)%
Adjusted NII^(a)	$1,160		$1,188			$1,218			(2)%	(5)%

Average Yield/Rate Analysis									bps Change
Yield on interest-earning assets	2.93	%	3.21	%		4.34	%		(28)	(141)
Rate paid on interest-bearing liabilities	0.51	%	0.66	%		1.41	%		(15)	(90)

Ratios
Net interest rate spread	2.42	%	2.55	%		2.93	%		(13)	(51)
Net interest margin (NIM)	2.58	%	2.75	%		3.32	%		(17)	(74)
Adjusted NIM^(a)	2.55	%	2.71	%		3.25	%		(16)	(70)


Noninterest Income
($ in millions)	For the Three Months Ended					% Change
	September	June	September
	2020	2020	2019	Seq	Yr/Yr
Noninterest Income
Service charges on deposits	$144	$122	$143	18%	1%
Commercial banking revenue	125	137	123	(9)%	2%
Mortgage banking net revenue	76	99	95	(23)%	(20)%
Wealth and asset management revenue	132	120	124	10%	6%
Card and processing revenue	92	82	94	12%	(2)%
Leasing business revenue	77	57	92	35%	(16)%
Other noninterest income	26	12	64	117%	(59)%
Securities gains, net	51	21	5	143%	920%
Securities losses, net - non-qualifying hedges
on mortgage servicing rights	(1)	—	—	NM	NM
Total noninterest income	$722	$650	$740	11%	(2)%


Noninterest Income excluding certain items
($ in millions)	For the Three Months Ended
	September		June		September
	2020		2020		2019
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)	$722	$650		$740
Valuation of Visa total return swap	22	29		11
Branch and non-branch real estate charges	10	12		—
Securities gains, net	(51)	(21)		(5)
Noninterest income excluding certain items^(a)	$703	$670		$746


Noninterest Expense excluding certain items
($ in millions)	For the Three Months Ended
	September		June		September
	2020		2020		2019
Noninterest Expense excluding certain items
Noninterest expense (U.S. GAAP)	$1,161	$1,121		$1,159
Restructuring severance expense	(19)	—		—
Intangible amortization expense	(12)	(12)		(14)
Rent impairment charges	(9)	—		—
COVID-19 related expenses^(g)	(5)	(12)		—
Merger-related expenses	—	(9)		(28)
FHLB debt extinguishment charge	—	(6)		—
Noninterest expense excluding certain items^(a)	$1,116	$1,082		$1,117


Average Interest-Earning Assets
($ in millions)	For the Three Months Ended									% Change
	September		June		September
	2020		2020		2019			Seq	Yr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans	$54,004	$59,040		$51,241		(9)%	5%
Commercial mortgage loans	11,069	11,222		10,692		(1)%	4%
Commercial construction loans	5,534	5,548		5,267		—	5%
Commercial leases	2,966	3,056		3,562		(3)%	(17)%
Total commercial loans and leases	$73,573	$78,866		$70,762		(7)%	4%
Consumer loans:
Residential mortgage loans	$16,618	$16,561		$16,736		—	(1)%
Home equity	5,581	5,820		6,267		(4)%	(11)%
Indirect secured consumer loans	12,599	12,124		10,707		4%	18%
Credit card	2,134	2,248		2,448		(5)%	(13)%
Other consumer loans	2,857	2,887		2,621		(1)%	9%
Total consumer loans	$39,789	$39,640		$38,779		—	3%
Total average portfolio loans and leases	$113,362	$118,506		$109,541		(4)%	3%

Average Loans and Leases Held for Sale
Commercial loans and leases held for sale	$55	$68		$127		(19)%	(57)%
Consumer loans held for sale	1,196	844		998		42%	20%
Total average loans and leases held for sale	$1,251	$912		$1,125		37%	11%

Securities and other short-term investments	$66,091	$56,806		$38,188		16%	73%
Total average interest-earning assets	$180,704	$176,224		$148,854		3%	21%


Average Wholesale Funding
	($ in millions)	For the Three Months Ended									% Change
		September		June		September
		2020		2020		2019			Seq	Yr/Yr
	Average Wholesale Funding
	Certificates - $100,000 and over	$3,633	$4,067		$4,795		(11)%	(24)%
	Other deposits	—	31		47		(100)%	(100)%
	Federal funds purchased	273	309		739		(12)%	(63)%
	Other short-term borrowings	1,626	2,377		1,278		(32)%	27%
	Long-term debt	16,230	16,955		15,633		(4)%	4%
	Total average wholesale funding	$21,762	$23,739		$22,492		(8)%	(3)%


Credit Quality Summary
($ in millions)	As of and For the Three Months Ended
	September				June			March			December		September
	2020				2020			2020			2019		2019

Total nonaccrual portfolio loans and leases (NPLs)	$891		$700			$647			$618		$482
Repossessed property	7		4			10			10		9
OREO	33		43			52			52		28
Total nonperforming portfolio loans and leases and OREO (NPAs)	$931		$747			$709			$680		$519

NPL ratio⁽ⁱ⁾	0.80	%	0.61	%		0.55	%		0.56	%	0.44	%
NPA ratio^(c)	0.84	%	0.65	%		0.60	%		0.62	%	0.47	%

Total loans and leases 30-89 days past due (accrual)	$323		$381			$409			$364		$402
Total loans and leases 90 days past due (accrual)	139		136			151			130		132

Allowance for loan and lease losses (ALLL), beginning	$2,696		$2,348			$1,202			$1,143		$1,115
Impact of CECL adoption	—		—			643			—		—
Total net losses charged-off	(101)		(130)			(122)			(113)		(99)
(Benefit from) provision for loan and lease losses	(21)		478			625			172		127
ALLL, ending	$2,574		$2,696			$2,348			$1,202		$1,143

Reserve for unfunded commitments, beginning	$176		$169			$144			$154		$147
Impact of CECL adoption	—		—			10			—		—
Provision for (benefit from) the reserve for unfunded commitments	6		7			15			(10)		7
Reserve for unfunded commitments, ending	$182		$176			$169			$144		$154

Total allowance for credit losses (ACL)	$2,756		$2,872			$2,517			$1,346		$1,297

ACL ratios:
As a % of portfolio loans and leases	2.49	%	2.50	%		2.13	%		1.23	%	1.19	%
As a % of nonperforming portfolio loans and leases	309	%	410	%		389	%		218	%	269	%
As a % of nonperforming portfolio assets	296	%	385	%		355	%		198	%	250	%

ALLL as a % of portfolio loans and leases	2.32	%	2.34	%		1.99	%		1.10	%	1.04	%

Total losses charged-off	$(135)		$(163)			$(159)			$(152)		$(130)
Total recoveries of losses previously charged-off	34		33			37			39		31
Total net losses charged-off	$(101)		$(130)			$(122)			$(113)		$(99)

Net charge-off ratio (NCO ratio)^(b)	0.35	%	0.44	%		0.44	%		0.41	%	0.36	%
Commercial NCO ratio	0.33	%	0.40	%		0.32	%		0.20	%	0.18	%
Consumer NCO ratio	0.40	%	0.52	%		0.66	%		0.78	%	0.68	%


Capital Position
	As of and For the Three Months Ended
	September			June			March		December				September
	2020			2020			2020		2019			2019
Capital Position
Average total Bancorp shareholders' equity as a % of average assets		11.33	%	11.30	%	12.63%		12.58%		12.43	%
Tangible equity^(a)		8.09	%	7.68	%	8.41%		9.52%		9.29	%
Tangible common equity (excluding AOCI)^(a)		6.99	%	6.77	%	7.41%		8.44%		8.21	%
Tangible common equity (including AOCI)^(a)		8.31	%	8.13	%	8.65%		9.08%		9.09	%

Regulatory Capital Ratios^(e)
CET1 capital^(d)		10.14	%	9.72	%	9.37%		9.75%		9.56	%
Tier I risk-based capital^(d)		11.64	%	10.96	%	10.56%		10.99%		10.81	%
Total risk-based capital^(d)		14.93	%	14.24	%	13.59%		13.84%		13.68	%
Tier I leverage		8.37	%	8.16	%	9.37%		9.54%		9.36	%




			Financial Highlights			13-14
			Consolidated Statements of Income			15-16
			Consolidated Balance Sheets			17-18
			Consolidated Statements of Changes in Equity			19
			Average Balance Sheet and Yield Analysis			20-21
			Summary of Loans and Leases			22
			Regulatory Capital			23
			Summary of Credit Loss Experience			24
			Asset Quality			25
			Regulation G Non-GAAP Reconciliation			26-28
			Segment Presentation			29


Fifth Third Bancorp and Subsidiaries
Financial Highlights									% / bps										% / bps
$ in millions, except per share data			For the Three Months Ended										Change						Year to Date	Change
(unaudited)			September		June		September						September		September
		2020	2020		2019		Seq		Yr/Yr		2020		2019		Yr/Yr
Income Statement Data
Net interest income			$1,170		$1,200		$1,242		(3%)		(6%)		$3,600		$3,569		1%
Net interest income (FTE)^(a)			1,173		1,203		1,246		(2%)		(6%)		3,610		3,582		1%
Noninterest income			722		650		740		11%		(2%)		2,043		2,501		(18%)
	Total revenue (FTE)^(a)	1,895	1,853		1,986		2%		(5%)		5,653		6,083		(7%)
Provision for (benefit from) credit losses			(15)		485		134		NM		NM		1,110		310		258%
Noninterest expense			1,161		1,121		1,159		4%		—		3,482		3,499		—
Net income			581		195		549		198%		6%		823		1,778		(54%)
Net income available to common shareholders			562		163		530		245%		6%		754		1,718		(56%)

Earnings Per Share Data
Net income allocated to common shareholders			$560		$162		$526		246%		6%		$751		$1,702		(56%)
Average common shares outstanding (in thousands):
	Basic	715,102	714,767		726,716		—		(2%)		714,477		708,849		1%
	Diluted	718,894	717,572		736,086		—		(2%)		718,943		718,413		—
Earnings per share, basic			$0.78		$0.23		$0.72		239%		8%		$1.05		$2.40		(56%)
Earnings per share, diluted			0.78		0.23		0.71		239%		10%		1.04		2.37		(56%)

Common Share Data
Cash dividends per common share			$0.27		$0.27		$0.24		—		13%		$0.81		$0.70		16%
Book value per share			29.25		28.88		27.32		1%		7%		29.25		27.32		7%
Market price per share			21.32		19.28		27.38		11%		(22%)		21.32		27.38		(22%)
Common shares outstanding (in thousands)			712,328		712,202		718,583		—		(1%)		712,328		718,583		(1%)
Market capitalization			$15,187		$13,731		$19,675		11%		(23%)		$15,187		$19,675		(23%)

Financial Ratios
Return on average assets			1.14	%	0.40	%	1.28	%	74		(14)		0.58	%	1.47	%	(89)
Return on average common equity			10.7	%	3.2	%	10.7	%	750		—		4.9	%	12.7	%	(780)
Return on average tangible common equity^(a)			13.8	%	4.3	%	14.2	%	950		(40)		6.5	%	16.5	%	(1,000)
Noninterest income as a percent of total revenue^(a)			38	%	35	%	37	%	300		100		36	%	41	%	(500)
Dividend payout			34.6%		117.4%		33.3%		(8,280)		130		77.1%		29.2%		4,790
Average total Bancorp shareholders' equity as a percent of average assets			11.33	%	11.30	%	12.43	%	3		(110)		11.71	%	11.99	%	(28)
Tangible common equity^(a)			6.99	%	6.77	%	8.21	%	22		(122)		6.99	%	8.21	%	(122)
Net interest margin (FTE)^(a)			2.58	%	2.75	%	3.32	%	(17)		(74)		2.85	%	3.32	%	(47)
Efficiency (FTE)^(a)			61.3	%	60.5	%	58.4	%	80		290		61.6	%	57.5	%	410
Effective tax rate			22.1	%	19.9	%	20.2	%	220		190		21.6	%	21.4	%	20

Credit Quality
Net losses charged-off			$101		$130		$99		(22	%)	2	%	$353		$256		38	%
Net losses charged-off as a percent of average portfolio loans and leases			0.35	%	0.44	%	0.36	%	(9)		(1)		0.41	%	0.32	%	9
ALLL as a percent of portfolio loans and leases			2.32	%	2.34	%	1.04	%	(2)		128		2.32	%	1.04	%	128
ACL as a percent of portfolio loans and leases^(g)			2.49	%	2.50	%	1.19	%	(1)		130		2.49	%	1.19	%	130
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO			0.84	%	0.65	%	0.47	%	19		37		0.84	%	0.47	%	37

Average Balances
Loans and leases, including held for sale			$114,613		$119,418		$110,666		(4%)		4%		$115,401		$106,719		8%
Securities and other short-term investments			66,091		56,806		38,188		16%		73%		54,021		37,369		45%
Assets			202,533		198,387		169,585		2%		19%		190,973		162,119		18%
Transaction deposits^(b)			148,567		142,079		114,541		5%		30%		136,293		109,396		25%
Core deposits^(c)			152,278		146,500		120,364		4%		27%		140,695		114,853		23%
Wholesale funding^(d)			21,762		23,739		22,492		(8%)		(3%)		22,441		22,772		(1%)
Bancorp shareholders' equity			22,952		22,420		21,087		2%		9%		22,364		19,430		15%

Regulatory Capital Ratios^(e)
CET1 capital^(f)			10.14	%	9.72	%	9.56	%	42		58		10.14	%	9.56	%	58
Tier I risk-based capital^(f)			11.64	%	10.96	%	10.81	%	68		83		11.64	%	10.81	%	83
Total risk-based capital^(f)			14.93	%	14.24	%	13.68	%	69		125		14.93	%	13.68	%	125
Tier I leverage			8.37	%	8.16	%	9.36	%	21		(99)		8.37	%	9.36	%	(99)

Operations
Banking centers			1,122		1,122		1,143		—		(2%)		1,122		1,143		(2%)
ATMs			2,414		2,456		2,487		(2%)		(3%)		2,414		2,487		(3%)
Full-time equivalent employees			20,283		20,340		19,478		—		4%		20,283		19,478		4%


Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millions	For the Three Months Ended					% Change				Year to Date	% Change
(unaudited)	September	June	September				September	September
	2020	2020	2019	Seq	Yr/Yr		2020	2019	Yr/Yr
Interest Income
Interest and fees on loans and leases	$1,047	$1,115	$1,320	(6%)	(21%)		$3,397	$3,799	(11%)
Interest on securities	274	283	291	(3%)	(6%)		840	862	(3%)
Interest on other short-term investments	8	5	14	60%	(43%)		20	33	(39%)
Total interest income	1,329	1,403	1,625	(5%)	(18%)		4,257	4,694	(9%)

Interest Expense
Interest on deposits	46	83	243	(45%)	(81%)		295	692	(57%)
Interest on federal funds purchased	—	—	4	NM	(100%)		2	23	(91%)
Interest on other short-term borrowings	5	2	8	150%	(38%)		13	23	(43%)
Interest on long-term debt	108	118	128	(8%)	(16%)		347	387	(10%)
Total interest expense	159	203	383	(22%)	(58%)		657	1,125	(42%)

Net Interest Income	1,170	1,200	1,242	(3%)	(6%)		3,600	3,569	1%

Provision for (benefit from) credit losses	(15)	485	134	NM	NM		1,110	310	258%
Net Interest Income After Provision for Credit Losses	1,185	715	1,108	66%	7%		2,490	3,259	(24%)

Noninterest Income
Service charges on deposits	144	122	143	18%	1%		414	417	(1%)
Commercial banking revenue	125	137	123	(9%)	2%		387	333	16%
Mortgage banking net revenue	76	99	95	(23%)	(20%)		295	214	38%
Wealth and asset management revenue	132	120	124	10%	6%		387	358	8%
Card and processing revenue	92	82	94	12%	(2%)		260	266	(2%)
Leasing business revenue	77	57	92	35%	(16%)		207	199	4%
Other noninterest income	26	12	64	117%	(59%)		42	679	(94%)
Securities gains, net	51	21	5	143%	920%		48	30	60%
Securities gains (losses), net - non-qualifying hedges on mortgage servicing rights	(1)	—	—	NM	NM		3	5	(40%)
Total noninterest income	722	650	740	11%	(2%)		2,043	2,501	(18%)

Noninterest Expense
Compensation and benefits	637	627	584	2%	9%		1,911	1,843	4%
Net occupancy expense	90	82	84	10%	7%		254	248	2%
Technology and communications	89	90	100	(1%)	(11%)		272	319	(15%)
Equipment expense	33	32	33	3%	—		97	96	1%
Card and processing expense	29	29	33	—	(12%)		89	98	(9%)
Leasing business expense	35	33	40	6%	(13%)		103	97	6%
Marketing expense	23	20	40	15%	(43%)		74	117	(37%)
Other noninterest expense	225	208	245	8%	(8%)		682	681	—
Total noninterest expense	1,161	1,121	1,159	4%	—		3,482	3,499	—
Income Before Income Taxes	746	244	689	206%	8%		1,051	2,261	(54%)
Applicable income tax expense	165	49	140	237%	18%		228	483	(53%)
Net Income	581	195	549	198%	6%		823	1,778	(54%)
Dividends on preferred stock	19	32	19	(41%)	—		69	60	15%
Net Income Available to Common Shareholders	$562	$163	$530	245%	6%		$754	$1,718	(56%)


Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield/Rate Analysis
$ in millions	For the Three Months Ended								% Change					Year to Date	% Change
(unaudited)	September		June		September				September		September
	2020		2020		2019		Seq	Yr/Yr	2020		2019		Yr/Yr
Assets
Interest-earning assets:
Commercial and industrial loans	$54,056		$59,106		$51,364		(9%)	5%	$54,948		$49,895		10%
Commercial mortgage loans	11,071		11,224		10,695		(1%)	4%	11,105		9,593		16%
Commercial construction loans	5,534		5,548		5,267		—	5%	5,405		5,119		6%
Commercial leases	2,966		3,056		3,563		(3%)	(17%)	3,074		3,643		(16%)
Total commercial loans and leases	73,627		78,934		70,889		(7%)	4%	74,532		68,250		9%
Residential mortgage loans	17,814		17,405		17,733		2%	—	17,748		17,163		3%
Home equity	5,581		5,820		6,267		(4%)	(11%)	5,802		6,333		(8%)
Indirect secured consumer loans	12,599		12,124		10,707		4%	18%	12,179		10,030		21%
Credit card	2,134		2,248		2,448		(5%)	(13%)	2,293		2,418		(5%)
Other consumer loans	2,858		2,887		2,622		(1%)	9%	2,847		2,525		13%
Total consumer loans	40,986		40,484		39,777		1%	3%	40,869		38,469		6%
Taxable securities	36,147		36,817		35,653		(2%)	1%	36,312		35,151		3%
Tax exempt securities	153		156		38		(2%)	303%	157		35		349%
Other short-term investments	29,791		19,833		2,497		50%	1,093%	17,552		2,183		704%
Total interest-earning assets	180,704		176,224		148,854		3%	21%	169,422		144,088		18%
Cash and due from banks	2,944		3,121		2,769		(6%)	6%	2,981		2,641		13%
Other assets	21,583		21,394		19,077		1%	13%	20,870		16,501		26%
Allowance for loan and lease losses	(2,698)		(2,352)		(1,115)		15%	142%	(2,300)		(1,111)		107%
Total Assets	$202,533		$198,387		$169,585		2%	19%	$190,973		$162,119		18%

Liabilities
Interest-bearing liabilities:
Interest checking deposits	$49,800		$49,760		$37,729		—	32%	$46,631		$35,995		30%
Savings deposits	17,013		16,354		14,405		4%	18%	16,031		13,963		15%
Money market deposits	31,151		30,022		26,962		4%	16%	29,434		25,357		16%
Foreign office deposits	189		182		222		4%	(15%)	193		198		(3%)
Other time deposits	3,711		4,421		5,823		(16%)	(36%)	4,402		5,457		(19%)
Total interest-bearing core deposits	101,864		100,739		85,141		1%	20%	96,691		80,970		19%
Certificates $100,000 and over	3,633		4,067		4,795		(11%)	(24%)	3,685		4,650		(21%)
Other deposits	—		31		47		(100%)	(100%)	95		269		(65%)
Federal funds purchased	273		309		739		(12%)	(63%)	412		1,298		(68%)
Other short-term borrowings	1,626		2,377		1,278		(32%)	27%	1,916		1,017		88%
Long-term debt	16,230		16,955		15,633		(4%)	4%	16,333		15,538		5%
Total interest-bearing liabilities	123,626		124,478		107,633		(1%)	15%	119,132		103,742		15%
Demand deposits	50,414		45,761		35,223		10%	43%	44,004		33,883		30%
Other liabilities	5,541		5,727		5,522		(3%)	—	5,473		4,950		11%
Total Liabilities	179,581		175,966		148,378		2%	21%	168,609		142,575		18%
Total Equity	22,952		22,421		21,207		2%	8%	22,364		19,544		14%
Total Liabilities and Equity	$202,533		$198,387		$169,585		2%	19%	$190,973		$162,119		18%

	For the Three Months Ended								bps Change					Year to Date	bps Change
	September		June		September				September		September
Yield/Rate Analysis	2020		2020		2019		Seq	Yr/Yr	2020		2019		Yr/Yr
Interest-earning assets:
Commercial and industrial loans^(a)	3.35	%	3.47	%	4.66	%	(12)	(131)	3.67	%	4.71	%	(104)
Commercial mortgage loans^(a)	3.12	%	3.44	%	4.86	%	(32)	(174)	3.66	%	4.94	%	(128)
Commercial construction loans^(a)	3.18	%	3.53	%	5.39	%	(35)	(221)	3.82	%	5.55	%	(173)
Commercial leases^(a)	3.44	%	3.47	%	3.34	%	(3)	10	3.46	%	3.31	%	15
Total commercial loans and leases	3.30	%	3.47	%	4.68	%	(17)	(138)	3.67	%	4.73	%	(106)
Residential mortgage loans	3.48	%	3.53	%	3.67	%	(5)	(19)	3.55	%	3.69	%	(14)
Home equity	3.59	%	3.60	%	5.20	%	(1)	(161)	3.98	%	5.28	%	(130)
Indirect secured consumer loans	3.93	%	4.04	%	4.22	%	(11)	(29)	4.02	%	4.05	%	(3)
Credit card	11.37	%	11.28	%	12.57	%	9	(120)	11.61	%	12.52	%	(91)
Other consumer loans	6.46	%	6.50	%	7.69	%	(4)	(123)	6.88	%	7.59	%	(71)
Total consumer loans	4.25	%	4.34	%	4.87	%	(9)	(62)	4.43	%	4.86	%	(43)
Total loans and leases	3.64	%	3.76	%	4.75	%	(12)	(111)	3.94	%	4.78	%	(84)
Taxable securities	3.01	%	3.08	%	3.24	%	(7)	(23)	3.08	%	3.28	%	(20)
Tax exempt securities^(a)	2.99	%	2.96	%	3.18	%	3	(19)	3.00	%	3.72	%	(72)
Other short-term investments	0.10	%	0.11	%	2.18	%	(1)	(208)	0.15	%	1.99	%	(184)
Total interest-earning assets	2.93	%	3.21	%	4.34	%	(28)	(141)	3.36	%	4.37	%	(101)

Interest-bearing liabilities:
Interest checking deposits	0.10	%	0.24	%	1.12	%	(14)	(102)	0.33	%	1.15	%	(82)
Savings deposits	0.04	%	0.06	%	0.18	%	(2)	(14)	0.07	%	0.17	%	(10)
Money market deposits	0.14	%	0.32	%	1.13	%	(18)	(99)	0.38	%	1.11	%	(73)
Foreign office deposits	0.06	%	0.09	%	0.37	%	(3)	(31)	0.25	%	0.49	%	(24)
Other time deposits	0.95	%	1.21	%	1.79	%	(26)	(84)	1.27	%	1.81	%	(54)
Total interest-bearing core deposits	0.13	%	0.27	%	1.01	%	(14)	(88)	0.35	%	1.01	%	(66)
Certificates $100,000 and over	1.26	%	1.40	%	2.20	%	(14)	(94)	1.56	%	2.14	%	(58)
Other deposits	—		0.04	%	1.97	%	(4)	(197)	0.76	%	2.43	%	(167)
Federal funds purchased	0.20	%	0.16	%	2.06	%	4	(186)	0.68	%	2.42	%	(174)
Other short-term borrowings	1.28	%	0.32	%	2.55	%	96	(127)	0.90	%	2.97	%	(207)
Long-term debt	2.62	%	2.80	%	3.26	%	(18)	(64)	2.84	%	3.33	%	(49)
Total interest-bearing liabilities	0.51	%	0.66	%	1.41	%	(15)	(90)	0.74	%	1.45	%	(71)
(a) Presented on an FTE basis.


Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data	As of
(unaudited)	September	June	March	December	September
	2020	2020	2020	2019	2019
Assets
Cash and due from banks	$2,996	$3,221	$3,282	$3,278	$3,261
Other short-term investments	31,285	28,243	6,319	1,950	3,235
Available-for-sale debt and other securities^(a)	37,425	38,599	38,645	36,028	37,178
Held-to-maturity securities^(b)	15	16	17	17	18
Trading debt securities	704	526	433	297	297
Equity securities	277	273	459	564	459
Loans and leases held for sale	2,323	912	1,630	1,400	1,223
Portfolio loans and leases:
Commercial and industrial loans	51,695	55,661	58,250	50,542	50,768
Commercial mortgage loans	10,878	11,233	11,160	10,963	10,822
Commercial construction loans	5,656	5,479	5,462	5,090	5,281
Commercial leases	3,021	3,061	3,123	3,363	3,495
Total commercial loans and leases	71,250	75,434	77,995	69,958	70,366
Residential mortgage loans	16,158	16,457	16,701	16,724	16,675
Home equity	5,455	5,681	5,963	6,083	6,218
Indirect secured consumer loans	12,925	12,395	12,050	11,538	11,026
Credit card	2,087	2,211	2,417	2,532	2,467
Other consumer loans	2,856	2,875	2,911	2,723	2,657
Total consumer loans	39,481	39,619	40,042	39,600	39,043
Portfolio loans and leases	110,731	115,053	118,037	109,558	109,409
Allowance for loan and lease losses	(2,574)	(2,696)	(2,348)	(1,202)	(1,143)
Portfolio loans and leases, net	108,157	112,357	115,689	108,356	108,266
Bank premises and equipment	2,090	2,053	2,009	1,995	2,053
Operating lease equipment	818	809	819	848	869
Goodwill	4,261	4,261	4,261	4,252	4,290
Intangible assets	157	171	184	201	201
Servicing rights	660	676	685	993	910
Other assets	10,828	10,789	10,959	9,190	8,819
Total Assets	$201,996	$202,906	$185,391	$169,369	$171,079

Liabilities
Deposits:
Demand	$51,896	$49,359	$39,533	$35,968	$35,893


Fifth Third Bancorp and Subsidiaries
Regulatory Capital
$ in millions				As of
(unaudited)				September		June		March		December		September
		2020^(a)		2020		2020		2019		2019
Regulatory Capital
CET1 capital				$14,306		$13,935		$13,840		$13,847		$13,568
Additional tier I capital				2,115		1,769		1,769		1,769		1,769
Tier I capital				16,421		15,704		15,609		15,616		15,337
Tier II capital				4,645		4,703		4,472		4,045		4,076
Total regulatory capital				$21,066		$20,407		$20,081		$19,661		$19,413
Risk-weighted assets^(b)				$141,065		$143,322		$147,756		$142,065		$141,880

Ratios
Average total Bancorp shareholders' equity as a percent of average assets				11.33	%	11.30	%	12.63	%	12.58	%	12.43	%

Regulatory Capital Ratios
Fifth Third Bancorp
	CET1 capital^(b)	10.14	%	9.72	%	9.37	%	9.75	%	9.56	%
	Tier I risk-based capital^(b)	11.64	%	10.96	%	10.56	%	10.99	%	10.81	%
	Total risk-based capital^(b)	14.93	%	14.24	%	13.59	%	13.84	%	13.68	%
	Tier I leverage	8.37	%	8.16	%	9.37	%	9.54	%	9.36	%

Fifth Third Bank
	Tier I risk-based capital^(b)	12.25	%	11.76	%	11.36	%	11.86	%	11.79	%
	Total risk-based capital^(b)	14.15	%	13.65	%	13.17	%	13.46	%	13.37	%
	Tier I leverage	8.85	%	8.80	%	10.16	%	10.36	%	10.26	%


Fifth Third Bancorp and Subsidiaries
Regulation G Non-GAAP Reconciliation
$ and shares in millions		As of and For the Three Months Ended
(unaudited)		September		June		March		December		September
	2020	2020		2020		2019		2019
Net interest income		$1,170		$1,200		$1,229		$1,228		$1,242
Add: Taxable equivalent adjustment		3		3		4		4		4
Net interest income (FTE) (a)		1,173		1,203		1,233		1,232		1,246

Net interest income (annualized) (b)		4,655		4,826		4,943		4,872		4,928
Net interest income (FTE) (annualized) (c)		4,667		4,838		4,959		4,888		4,943

Net interest income (FTE)		1,173		1,203		1,233		1,232		1,246
Less: Net interest income impact from purchase accounting accretion		13		15		16		18		28
Adjusted net interest income (FTE) (d)		1,160		1,188		1,217		1,214		1,218
Adjusted net interest income (FTE) (annualized) (e)		4,615		4,777		4,895		4,816		4,832

Interest income		1,329		1,403		1,525		1,559		1,625
Add: Taxable equivalent adjustment		3		3		4		4		4
Interest income (FTE)		1,332		1,406		1,529		1,563		1,629
Interest income (FTE) (annualized) (f)		5,299		5,655		6,150		6,201		6,463

Interest expense (annualized) (g)		633		816		1,191		1,313		1,520
Average interest-earning assets (h)		180,704		176,224		151,213		149,312		148,854
Average interest-bearing liabilities (i)		123,626		124,478		109,244		107,573		107,633

Net interest margin (b) / (h)		2.58	%	2.74	%	3.27	%	3.26	%	3.31	%
Net interest margin (FTE) (c) / (h)		2.58	%	2.75	%	3.28	%	3.27	%	3.32	%
Adjusted net interest margin (e) / (h)		2.55	%	2.71	%	3.24	%	3.22	%	3.25	%
Net interest rate spread (FTE) (f) / (h) - (g) / (i)		2.42	%	2.55	%	2.98	%	2.93	%	2.93	%

Income before income taxes		$746		$244		$60		$941		$689
Add: Taxable equivalent adjustment		3		3		4		4		4
Income before income taxes (FTE)		$749		$247		$64		$945		$693

Net income available to common shareholders		$562		$163		$29		$701		$530
Add: Intangible amortization, net of tax		9		9		10		11		11
Tangible net income available to common shareholders (j)		571		172		39		712		541
Tangible net income available to common shareholders (annualized) (k)		2,272		692		157		2,825		2,146