Fifth Third Bancorp : 4Q22 Earnings Presentation

Fifth Third Bancorp

4Q22 Earnings Presentation

January 19, 2023

Refer to earnings release dated January 19, 2023 for further information.

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Cautionary statement

This presentation contains statements that we believe are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements other than statements of historical fact are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as "will likely result," "may," "are expected to," "is anticipated,"

"potential," "estimate," "forecast," "projected," "intends to," or may include other similar words or phrases such as "believes," "plans," "trend," "objective," "continue," "remain," or similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K as updated by our filings with the U.S. Securities and Exchange Commission ("SEC").

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) effects of the global COVID-19 pandemic; (2) deteriorating credit quality; (3) loan concentration by location or industry of borrowers or collateral; (4) problems encountered by other financial institutions; (5) inadequate sources of funding or liquidity; (6) unfavorable actions of rating agencies; (7) inability to maintain or grow deposits; (8) limitations on the ability to receive dividends from subsidiaries; (9) cyber-security risks; (10) Fifth Third's ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (11) failures by third-party service providers; (12) inability to manage strategic initiatives and/or organizational changes; (13) inability to implement technology system enhancements; (14) failure of internal controls and other risk management systems; (15) losses related to fraud, theft, misappropriation or violence; (16) inability to attract and retain skilled personnel; (17) adverse impacts of government regulation; (18) governmental or regulatory changes or other actions; (19) failures to meet applicable capital

requirements; (20) regulatory objections to Fifth Third's capital plan; (21) regulation of Fifth Third's derivatives activities; (22) deposit insurance premiums; (23) assessments for the orderly liquidation fund; (24) replacement of

LIBOR; (25) weakness in the national or local economies; (26) global political and economic uncertainty or negative actions; (27) changes in interest rates and the effects of inflation; (28) changes and trends in capital markets;

1. fluctuation of Fifth Third's stock price; (30) volatility in mortgage banking revenue; (31) litigation, investigations, and enforcement proceedings by governmental authorities; (32) breaches of contractual covenants, representations and warranties; (33) competition and changes in the financial services industry; (34) changing retail distribution strategies, customer preferences and behavior; (35) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (36) potential dilution from future acquisitions; (37) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (38) results of investments or acquired entities; (39) changes in accounting standards or interpretation or declines in the value of Fifth Third's goodwill or other intangible assets; (40) inaccuracies or other failures from the use of models; (41) effects of critical accounting policies and judgments or the use of inaccurate estimates; (42) weather-related events, other natural disasters, or health emergencies (including pandemics); (43) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity; (44) changes in law or requirements imposed by Fifth Third's regulators impacting our capital actions, including dividend payments and stock repurchases; and (45) Fifth Third's ability to meet its environmental and/or social targets, goals and commitments.

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or "SEC," for further information on other factors, which could cause actual results to be significantly different from those

expressed or implied by these forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein. Copies of those filings are available at no cost on the SEC's website at www.sec.gov or on our website at www.53.com.

Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

In this presentation, we may sometimes provide non-GAAP financial information. Please note that although non-GAAP financial measures provide useful insight to analysts, investors and regulators, they should not be considered in isolation or relied upon as a substitute for analysis using GAAP measures. We provide a discussion of non-GAAP measures and reconciliations to the most directly comparable GAAP measures in later slides in this presentation, as well as on pages 27 through 29 of our 4Q22earnings release.

Management does not provide a reconciliation for forward-lookingnon-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Bancorp's control or cannot be reasonably predicted. For the same reasons, Bancorp's management is unable to address the probable significance of the unavailable information. Forward-lookingnon-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

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4Q22 highlights

• Generated record revenue and prudently managed expenses
• PPNR1 increased 40% compared to 4Q21
• Net interest income1 increased 32% compared to 4Q21; NIM up 13 basis points compared to 3Q22
• Efficiency ratio1 of 52.6%; adjusted efficiency ratio1 of
  51.6% improved approximately 8 points compared to 4Q21
• ACL of 1.98%, an increase of 7 bps from 3Q22 (flat excluding Dividend Finance)
• NPA ratio of 0.44% improved 2 bps compared to 3Q22

	Reported1		Adjusted1
EPS
$1.01	$1.04
ROA	1.42%	1.46%
ROE	18.8%	19.3%
ROTCE	29.2%	19.2%
			excl. AOCI
NIM	3.35%	3.35%
Efficiency	52.6%	51.6%
ratio
PPNR	$1.10BN		$1.14BN
CET12	9.27%

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For end note descriptions, see end note summary starting on page 39

Total net interest income; $ millions

Net interest income1

3Q22 to 4Q22 Reported NII & NIM Walk

	NII $ in millions; NIM change in bps	NII	NIM
		3Q22	$1,502	3.22%
3.35%		Net market rate benefit	83	18
		Loan balances / mix	31	5
3.22%
		Securities portfolio	5	(2)
2.55%
		Deposit balances / mix	(37)	(8)
		Other, net	(2)	-
		4Q22	$1,582	3.35%

NII NIM

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For end note descriptions, see end note summary starting on page 39

Noninterest income

Total noninterest income; $ millions

Securities losses/(gains), net ($ in millions)	4Q21	3Q22	4Q22

4Q22 vs. 3Q22

• Adjusted noninterest income1 up $50 million, or 7%
• Primary drivers:
• • Other noninterest income (up 53%) reflecting the recognition of tax receivable agreement revenue in the current quarter
  • Commercial banking revenue (up 18%) reflecting higher M&A advisory revenue, client financial risk management revenue, and fixed income sales and trading revenue
  • Partially offset by Mortgage banking revenue (down 9%) reflecting a decrease in origination fees and gain on loan sales

4Q22 vs. 4Q21

• Adjusted noninterest income1 down $52 million, or 6%

• Primary drivers:

‒ Other noninterest income (down 17%) reflecting lower private equity

income

Net loss attributable to legacy venture equity investments

Net losses/(gains) attributable to non-qualified deferred compensation plans (NQDC)

Other losses/(gains), net

$17	$28	$1
2	7	(2)
-	3	(1)

‒ Service charges on deposits (down 10%) reflecting the market related

impact of higher earnings credits and the elimination of consumer

non-sufficient funds fees in July 2022

‒ Partially offset by Mortgage banking net revenue (up 80%) reflecting

a decrease in MSR asset decay and an increase mortgage servicing

Securities losses/(gains), net

$19

$38

($2)

revenue

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© Fifth Third Bancorp | All Rights Reserved

For end note descriptions, see end note summary starting on page 39