EX-99.1 2 q42023earningsrelease.htm EX-99.1
Fifth Third Reports Fourth Quarter 2023 Diluted Earnings Per Share of $0.72
Strong capital accretion and continued to grow deposits and improve liquidity
Reported results included a negative $0.27 impact from certain items on page 2

| Key Financial Data |  |  |  |  |  |  | Key Highlights
| $ in millions for all balance sheet and income statement items |  |  |  |  |  |  |
|  | 4Q23 | 3Q23 | 4Q22 | Stability: •Average deposits increased 2% compared to 3Q23; increased 5% compared to 4Q22 •Maintained full Category 1 LCR compliance during the quarter and achieved a loan-to-core deposit ratio of 72% •Transferred 23% of AFS securities portfolio to HTM on January 3, 2024 •CET1 capital increased 49 bps sequentially to 10.29% reflecting strong earnings power and balance sheet optimization efforts •NCO ratio declined 9 bps compared to 3Q23 Profitability: Compared to 3Q23 •Adjusted ROTCE ex. AOCI(a) of 16.8% increased 90 basis points •Adjusted efficiency ratio(a) of 55.3% •Tangible book value per share (including AOCI) increased 28% Growth: •Generated consumer household growth of 3% compared to 4Q22 •Opened 19 branches during the quarter, 18 of which are in high-growth Southeast markets
| Income Statement Data |  |  |  |  |  |
| Net income available to common shareholders | $492 |  | $623 |  | $699 |
| Net interest income (U.S. GAAP) | 1,416 |  | 1,438 |  | 1,577 |
| Net interest income (FTE)(a) | 1,423 |  | 1,445 |  | 1,582 |
| Noninterest income | 744 |  | 715 |  | 735 |
| Noninterest expense | 1,455 |  | 1,188 |  | 1,218 |
| Per Share Data |  |  |  |  |  |
| Earnings per share, basic | $0.72 |  | $0.91 |  | $1.01 |
| Earnings per share, diluted | 0.72 |  | 0.91 |  | 1.01 |
| Book value per share | 25.04 |  | 21.19 |  | 22.26 |
| Tangible book value per share(a) | 17.64 |  | 13.76 |  | 14.83 |
| Balance Sheet & Credit Quality |  |  |  |  |  |
| Average portfolio loans and leases | $118,858 |  | $121,630 |  | $121,371 |
| Average deposits | 169,447 |  | 165,644 |  | 161,061 |
| Accumulated other comprehensive loss | (4,487) |  | (6,839) |  | (5,110) |
| Net charge-off ratio(b) | 0.32 | % | 0.41 | % | 0.22 | %
| Nonperforming asset ratio(c) | 0.59 |  | 0.51 |  | 0.44 |
| Financial Ratios |  |  |  |  |  |
| Return on average assets | 0.98 | % | 1.26 | % | 1.42 | %
| Return on average common equity | 12.9 |  | 16.3 |  | 18.8 |
| Return on average tangible common equity(a) | 19.8 |  | 24.7 |  | 29.2 |
| CET1 capital(d)(e) | 10.29 |  | 9.80 |  | 9.28 |
| Net interest margin(a) | 2.85 |  | 2.98 |  | 3.35 |
| Efficiency(a) | 67.2 |  | 55.0 |  | 52.6 |
| Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.

From Tim Spence, Fifth Third Chairman, President and CEO: |  |

Fifth Third delivered strong operating results in 2023 while continuing to successfully navigate the challenging environment. We generated record revenue while prudently managing expenses and continuing to invest in our businesses. Our credit metrics reflect disciplined credit risk management, with net charge-offs for the quarter in-line with our expectations.
In the fourth quarter, we successfully completed our risk-weighted assets initiative and accreted nearly 50 basis points of CET1 capital. We generated another quarter of strong deposit growth, with average deposits up 5% compared to the year-ago quarter while the industry declined 3%. Additionally, we maintained full Category 1 LCR compliance during the quarter.
We continued to invest for growth by opening 19 branches during the quarter, 18 of which are in our high-growth Southeast markets, and generated consumer household growth of 3% compared to the prior year. Our new quality middle market relationships in commercial continued to grow at a record pace.
While the economic and regulatory environments remain uncertain, we remain well positioned to respond to a range of potential economic and regulatory outcomes. We will continue to follow our guiding principles of stability, profitability, and growth – in that order.
Investor contact: Matt Curoe (513) 534-2345 | Media contact: Jennifer Hendricks Sullivan (614) 744-7693 January 19, 2024

| Income Statement Highlights |  |  |  |  |  |  |  |  |  |  |  |  |
| ($ in millions, except per share data) | For the Three Months Ended |  |  | % Change |
|  | December |  | September |  | December |  |  |  |  |
|  | 2023 |  | 2023 |  | 2022 |  | Seq |  | Yr/Yr |
| Condensed Statements of Income |  |  |  |  |  |  |  |  |  |  |  |  |
| Net interest income (NII)(a) | $1,423 |  | $1,445 |  | $1,582 |  | (2)% |  | (10)% |
| Provision for credit losses | 55 |  | 119 |  | 180 |  | (54)% |  | (69)% |
| Noninterest income | 744 |  | 715 |  | 735 |  | 4% |  | 1% |
| Noninterest expense | 1,455 |  | 1,188 |  | 1,218 |  | 22% |  | 19% |
| Income before income taxes(a) | $657 |  | $853 |  | $919 |  | (23)% |  | (29)% |
| Taxable equivalent adjustment | $7 |  | $7 |  | $5 |  | — |  | 40% |
| Applicable income tax expense | 120 |  | 186 |  | 177 |  | (35)% |  | (32)% |
| Net income | $530 |  | $660 |  | $737 |  | (20)% |  | (28)% |
| Dividends on preferred stock | 38 |  | 37 |  | 38 |  | 3% |  | — |
| Net income available to common shareholders | $492 |  | $623 |  | $699 |  | (21)% |  | (30)% |
| Earnings per share, diluted | $0.72 |  | $0.91 |  | $1.01 |  | (21)% |  | (29)% |

Fifth Third Bancorp (NASDAQ®: FITB) today reported fourth quarter 2023 net income of $530 million compared to net income of $660 million in the prior quarter and $737 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $492 million, or $0.72 per diluted share, compared to $623 million, or $0.91 per diluted share, in the prior quarter and $699 million, or $1.01 per diluted share, in the year-ago quarter.

|  | Diluted earnings per share impact of certain item(s) - 4Q23 |  |
|  | (after-tax impact; $ in millions, except per share data) |  |  |
|  | FDIC special assessment (noninterest expense)(f) | $(172) |  |
|  | Valuation of Visa total return swap (noninterest income)(f) | (17) |  |
|  | Fifth Third Foundation contribution (noninterest expense)(f) | (12) |  |
|  | Restructuring severance expense (noninterest expense)(f) | (4) |  |
|  | Income tax benefit associated with resolution of certain acquisition related tax matters | 17 |  |
|  | After-tax impact of certain item(s) | $(188) |  |
|  | Diluted earnings per share impact of certain item(s)1 | $(0.27) |  |
|  | 1 Diluted earnings per share impact reflects 687.729 million average diluted shares outstanding |  |

Reported full year 2023 net income was $2.3 billion compared to full year 2022 net income of $2.4 billion. Full year 2023 net income available to common shareholders was $2.2 billion, or $3.22 per diluted share, compared to 2022 full year net income available to common shareholders of $2.3 billion, or $3.35 per diluted share.
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| Net Interest Income |  |  |  |  |  |  |  |  |  |  |  |  |
| (FTE; $ in millions)(a) | For the Three Months Ended |  |  | % Change |
|  | December |  | September |  | December |  |  |  |  |
|  | 2023 |  | 2023 |  | 2022 |  | Seq |  | Yr/Yr |
| Interest Income |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest income | $2,655 |  |  | $2,536 |  |  | $2,080 |  |  | 5% |  | 28% |
| Interest expense | 1,232 |  |  | 1,091 |  |  | 498 |  |  | 13% |  | 147% |
| Net interest income (NII) | $1,423 |  |  | $1,445 |  |  | $1,582 |  |  | (2)% |  | (10)% |
| Average Yield/Rate Analysis |  |  |  |  |  |  |  |  |  | bps Change |
| Yield on interest-earning assets | 5.31 | % |  |  | 5.23 | % |  |  | 4.40 | % |  |  | 8 |  | 91 |
| Rate paid on interest-bearing liabilities | 3.34 | % |  |  | 3.10 | % |  |  | 1.56 | % |  |  | 24 |  | 178 |
| Ratios |  |  |  |  |  |  |  |  |  |  |  |  |
| Net interest rate spread | 1.97 | % |  |  | 2.13 | % |  |  | 2.84 | % |  |  | (16) |  | (87) |
| Net interest margin (NIM) | 2.85 | % |  |  | 2.98 | % |  |  | 3.35 | % |  |  | (13) |  | (50) |

NII decreased $22 million, or 2%, compared to the prior quarter. During the quarter, the risk-weighted asset reduction initiative was completed, and strong core deposit growth continued. Balance sheet positioning and deposit performance continue to provide flexibility in managing through a range of uncertain economic and regulatory environments. The impacts of increasing deposit costs due to higher average market rates and continued competition were partially offset by improved loan yields and the funding benefits from the core deposit balance growth. Compared to the prior quarter, NIM decreased 13 bps, reflecting the impact of higher cash balances due to the combined impact of the decrease in average loans and the growth in core deposits. NIM will continue to be impacted by the decision to carry additional liquidity, with the combination of cash and due from banks and other short-term investments exceeding $25 billion at quarter-end.
Compared to the year-ago quarter, NII decreased $159 million, or 10%, reflecting the impact of the deposit mix shift from demand to interest-bearing accounts and continued deposit repricing dynamics, partially offset by higher loan yields. Compared to the year-ago quarter, NIM decreased 50 bps, reflecting the impact of higher market rates and their effects on deposit pricing and the decision to carry additional liquidity, partially offset by higher loan yields.
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| Noninterest Income |  |  |  |  |  |  |  |  |  |
| ($ in millions) | For the Three Months Ended |  | % Change |
|  | December |  | September |  | December |  |  |  |  |
|  | 2023 |  | 2023 |  | 2022 |  | Seq |  | Yr/Yr |
| Noninterest Income |  |  |  |  |  |  |  |  |  |
| Service charges on deposits | $146 |  | $149 |  | $140 |  | (2)% |  | 4% |
| Commercial banking revenue | 163 |  | 154 |  | 158 |  | 6% |  | 3% |
| Mortgage banking net revenue | 66 |  | 57 |  | 63 |  | 16% |  | 5% |
| Wealth and asset management revenue | 147 |  | 145 |  | 139 |  | 1% |  | 6% |
| Card and processing revenue | 106 |  | 104 |  | 103 |  | 2% |  | 3% |
| Leasing business revenue | 46 |  | 58 |  | 58 |  | (21)% |  | (21)% |
| Other noninterest income | 54 |  | 55 |  | 72 |  | (2)% |  | (25)% |
| Securities gains (losses), net | 15 |  | (7) |  | 2 |  | NM |  | 650% |
| Securities gains, net - non-qualifying hedges |  |  |  |  |  |  |  |  |  |
| on mortgage servicing rights | 1 |  | — |  | — |  | NM |  | NM |
| Total noninterest income | $744 |  | $715 |  | $735 |  | 4% |  | 1% |

Reported noninterest income increased $29 million, or 4%, from the prior quarter, and increased $9 million, or 1%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans that are primarily offset in compensation and benefits expense.

| Noninterest Income excluding certain items
| ($ in millions) | For the Three Months Ended |  |  |  |  |  |
|  | December |  | September |  |  | December |  |  | % Change |
|  | 2023 |  | 2023 |  |  | 2022 |  |  | Seq |  | Yr/Yr |
| Noninterest Income excluding certain items |  |  |  |  |  |  |  |  |  |  |  |  |
| Noninterest income (U.S. GAAP) | $744 |  |  | $715 |  |  | $735 |  |  |  |  |  |
| Valuation of Visa total return swap | 22 |  |  | 10 |  |  | 38 |  |  |  |  |  |
| Branch impairment charges | — |  |  | — |  |  | 6 |  |  |  |  |  |
| Securities (gains) losses, net | (15) |  |  | 7 |  |  | (2) |  |  |  |  |  |
| Noninterest income excluding certain items(a) | $751 |  |  | $732 |  |  | $777 |  |  | 3% |  | (3)% |

Noninterest income excluding certain items increased $19 million, or 3%, from the prior quarter, and decreased $26 million, or 3%, from the year-ago quarter.
Compared to the prior quarter, service charges on deposits decreased $3 million, or 2%, primarily reflecting a decrease in consumer deposit fees due to the elimination of extended overdraft fees. Commercial banking revenue increased $9 million, or 6%, primarily reflecting higher institutional brokerage revenue, business lending fees, and corporate bond fees, partially offset by a decrease in loan syndication revenue. Mortgage banking net revenue increased $9 million, or 16%, primarily reflecting a decrease in MSR asset decay and an increase in MSR net valuation adjustments, which had a $2 million gain in the fourth quarter compared to a $2 million loss in the prior quarter. Wealth and asset management revenue increased $2 million, or 1%, primarily driven by higher brokerage fees, partially offset by lower personal asset management revenue. Card and processing revenue increased $2 million, or 2%, primarily driven by higher interchange revenue. Leasing business revenue decreased $12 million, or 21%, primarily reflecting lower lease remarketing revenue. Other noninterest income results were driven by the recognition of tax receivable agreement revenue of $22 million in the current quarter.
Compared to the year-ago quarter, service charges on deposits increased $6 million, or 4%, reflecting an increase in commercial treasury management fees, partially offset by a decrease in consumer deposit fees. Commercial banking
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revenue increased $5 million, or 3%, primarily driven by higher institutional brokerage revenue, corporate bond fees and business lending fees, partially offset by lower M&A advisory revenue and client financial risk management revenue. Mortgage banking net revenue increased $3 million, or 5%, primarily reflecting a decrease in MSR asset decay and an increase in origination fees and gains on loans sales. Wealth and asset management revenue increased $8 million, or 6%, driven by higher brokerage fees and personal asset management revenue. Card and processing revenue increased $3 million, or 3%, primarily reflecting higher interchange revenue. Leasing business revenue decreased $12 million, or 21%, primarily reflecting lower operating lease revenue and lease remarketing revenue. The decrease in other noninterest income was primarily attributable to lower tax receivable agreement revenue and private equity income.

| Noninterest Expense |  |  |  |  |  |  |  |  |  |  |  |  |
| ($ in millions) | For the Three Months Ended |  |  | % Change |
|  | December |  | September |  | December |  |  |  |  |
|  | 2023 |  | 2023 |  | 2022 |  | Seq |  | Yr/Yr |
| Noninterest Expense |  |  |  |  |  |  |  |  |  |  |  |  |
| Compensation and benefits | $659 |  |  | $629 |  |  | $655 |  |  | 5% |  | 1% |
| Net occupancy expense | 83 |  |  | 84 |  |  | 82 |  |  | (1)% |  | 1% |
| Technology and communications | 117 |  |  | 115 |  |  | 111 |  |  | 2% |  | 5% |
| Equipment expense | 37 |  |  | 37 |  |  | 37 |  |  | — |  | — |
| Card and processing expense | 21 |  |  | 21 |  |  | 21 |  |  | — |  | — |
| Leasing business expense | 27 |  |  | 29 |  |  | 36 |  |  | (7)% |  | (25)% |
| Marketing expense | 30 |  |  | 35 |  |  | 31 |  |  | (14)% |  | (3)% |
| Other noninterest expense | 481 |  |  | 238 |  |  | 245 |  |  | 102% |  | 96% |
| Total noninterest expense | $1,455 |  |  | $1,188 |  |  | $1,218 |  |  | 22% |  | 19% |

Reported noninterest expense increased $267 million, or 22%, from the prior quarter, and increased $237 million, or 19%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.

| Noninterest Expense excluding certain item(s) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($ in millions) | For the Three Months Ended |  |  | % Change |  |  |
|  | December |  | September |  |  | December |  |  |  |  |  |  |  |
|  | 2023 |  | 2023 |  |  | 2022 |  |  | Seq |  | Yr/Yr |  |  |
| Noninterest Expense excluding certain item(s) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Noninterest expense (U.S. GAAP) | $1,455 |  |  | $1,188 |  |  | $1,218 |  |  |  |  |  |  |  |
| FDIC special assessment | (224) |  |  | — |  |  | — |  |  |  |  |  |  |  |
| Fifth Third Foundation contribution | (15) |  |  | — |  |  | — |  |  |  |  |  |  |  |
| Restructuring severance expense | (5) |  |  | — |  |  | — |  |  |  |  |  |  |  |
| Noninterest expense excluding certain item(s)(a) | $1,211 |  |  | $1,188 |  |  | $1,218 |  |  | 2% |  | (1)% |  |  |

Compared to the prior quarter, noninterest expense excluding certain items increased $23 million, or 2%, primarily driven by the impact of non-qualified deferred compensation mark-to-market, which was a $17 million expense in the fourth quarter compared to a $5 million benefit in the prior quarter, both of which were largely offset in net securities gains/losses through noninterest income.
Compared to the year-ago quarter, noninterest expense excluding certain items decreased $7 million, or 1%, primarily driven by lower leasing business expense and other noninterest expense, partially offset by higher technology and communications expense primarily related to continued modernization investments. The year-ago quarter included $6 million of noninterest expense related to the impact of non-qualified deferred compensation mark-to-market, which was largely offset in net securities gains/losses through noninterest income.
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| Average Interest-Earning Assets |  |  |  |  |  |  |  |  |  |  |  |  |
| ($ in millions) | For the Three Months Ended |  |  | % Change |
|  | December |  | September |  | December |  |  |  |  |
|  | 2023 |  | 2023 |  | 2022 |  | Seq |  | Yr/Yr |
| Average Portfolio Loans and Leases |  |  |  |  |  |  |  |  |  |  |  |  |
| Commercial loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |
| Commercial and industrial loans | $54,633 |  |  | $57,001 |  |  | $57,646 |  |  | (4)% |  | (5)% |
| Commercial mortgage loans | 11,338 |  |  | 11,216 |  |  | 10,898 |  |  | 1% |  | 4% |
| Commercial construction loans | 5,727 |  |  | 5,539 |  |  | 5,544 |  |  | 3% |  | 3% |
| Commercial leases | 2,535 |  |  | 2,616 |  |  | 2,736 |  |  | (3)% |  | (7)% |
| Total commercial loans and leases | $74,233 |  |  | $76,372 |  |  | $76,824 |  |  | (3)% |  | (3)% |
| Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |
| Residential mortgage loans | $17,129 |  |  | $17,400 |  |  | $17,577 |  |  | (2)% |  | (3)% |
| Home equity | 3,905 |  |  | 3,897 |  |  | 4,024 |  |  | — |  | (3)% |
| Indirect secured consumer loans | 15,129 |  |  | 15,787 |  |  | 16,536 |  |  | (4)% |  | (9)% |
| Credit card | 1,829 |  |  | 1,808 |  |  | 1,795 |  |  | 1% |  | 2% |
| Other consumer loans | 6,633 |  |  | 6,366 |  |  | 4,615 |  |  | 4% |  | 44% |
| Total consumer loans | $44,625 |  |  | $45,258 |  |  | $44,547 |  |  | (1)% |  | — |
| Total average portfolio loans and leases | $118,858 |  |  | $121,630 |  |  | $121,371 |  |  | (2)% |  | (2)% |
| Average Loans and Leases Held for Sale |  |  |  |  |  |  |  |  |  |  |  |  |
| Commercial loans and leases held for sale | $72 |  |  | $17 |  |  | $84 |  |  | 324% |  | (14)% |
| Consumer loans held for sale | 379 |  |  | 619 |  |  | 1,411 |  |  | (39)% |  | (73)% |
| Total average loans and leases held for sale | $451 |  |  | $636 |  |  | $1,495 |  |  | (29)% |  | (70)% |
| Total average loans and leases | $119,309 |  |  | $122,266 |  |  | $122,866 |  |  | (2)% |  | (3)% |
| Securities (taxable and tax-exempt) | $57,351 |  |  | $56,994 |  |  | $58,489 |  |  | 1% |  | (2)% |
| Other short-term investments | 21,506 |  |  | 12,956 |  |  | 6,285 |  |  | 66% |  | 242% |
| Total average interest-earning assets | $198,166 |  |  | $192,216 |  |  | $187,640 |  |  | 3% |  | 6% |

Compared to the prior quarter, total average portfolio loans and leases decreased 2%, reflecting the aforementioned reduction in risk-weighted assets initiative which impacted both commercial and consumer portfolios. Average commercial portfolio loans and leases decreased 3%, reflecting a decrease in commercial and industrial (C&I) loan balances. Average consumer portfolio loans decreased 1%, primarily reflecting decreases in indirect secured consumer loan balances and residential mortgage loan balances, partially offset by an increase in other consumer loan balances driven by Dividend Finance.
Compared to the year-ago quarter, total average portfolio loans and leases decreased 2%, reflecting a decrease in the commercial portfolio. Average commercial portfolio loans and leases decreased 3%, primarily reflecting a decrease in C&I loan balances, partially offset by an increase in commercial mortgage loan balances. Average consumer portfolio loans were flat, primarily reflecting an increase in other consumer loan balances driven by Dividend Finance, offset by a decrease in indirect secured consumer loan balances and residential mortgage loan balances.
Average loans and leases held for sale were $0.5 billion in the current quarter compared to $0.6 billion in the prior quarter and $1.5 billion in the year-ago quarter.
Average securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter increased $0.4 billion, or 1%, compared to the prior quarter and decreased $1 billion, or 2%, compared to the year-ago quarter. Average other short-term investments (including interest-bearing cash) of $22 billion in the current quarter increased $9 billion, or 66%, compared to the prior quarter and increased $15 billion, or 242%, compared to the year-ago quarter.
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Total period-end commercial portfolio loans and leases of $73 billion decreased 3% compared to the prior quarter, primarily reflecting a decrease in C&I loan balances. Compared to the year-ago quarter, total period-end commercial portfolio loans and leases decreased 5%, primarily reflecting a decrease in C&I loan balances. Period-end commercial revolving line utilization was 35%, compared to 36% in the prior quarter and 37% in the year-ago quarter.
Total period-end consumer portfolio loans of $44 billion decreased 1% compared to the prior quarter, primarily reflecting decreases in indirect secured consumer loan balances and residential mortgage loan balances, partially offset by an increase in other consumer loan balances driven by Dividend Finance. Compared to the year-ago quarter, total period-end consumer portfolio loans decreased 1%, primarily driven by decreases in indirect secured consumer loan balances and residential mortgage loan balances, partially offset by an increase in other consumer loan balances driven by Dividend Finance.
Total period-end securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter were stable compared to the prior quarter and decreased $1 billion, or 2%, compared to the year-ago quarter. Period-end other short-term investments of approximately $22 billion increased $3 billion, or 17%, compared to the prior quarter, and increased $14 billion, or 164%, compared to the year-ago quarter.
On January 3, 2024, Fifth Third transferred $12.6 billion (amortized cost) of securities, with an unrealized loss of $994 million, from available-for-sale to held-to-maturity. This transfer is in response to Fifth Third's decision to hold these securities to maturity in order to reduce potential capital volatility associated with investment security market price fluctuations.

Average Deposits |  |  |  |  |  |  |  |  |  |  |  |  |
| ($ in millions) | For the Three Months Ended |  |  | % Change |
|  | December |  | September |  | December |  |  |  |  |
|  | 2023 |  | 2023 |  | 2022 |  | Seq |  | Yr/Yr |
| Average Deposits |  |  |  |  |  |  |  |  |  |  |  |  |
| Demand | $43,396 |  |  | $44,228 |  |  | $54,550 |  |  | (2)% |  | (20)% |
| Interest checking | 57,114 |  |  | 53,109 |  |  | 47,801 |  |  | 8% |  | 19% |
| Savings | 18,252 |  |  | 20,511 |  |  | 23,474 |  |  | (11)% |  | (22)% |
| Money market | 34,292 |  |  | 32,072 |  |  | 28,713 |  |  | 7% |  | 19% |
| Foreign office(g) | 178 |  |  | 168 |  |  | 209 |  |  | 6% |  | (15)% |
| Total transaction deposits | $153,232 |  |  | $150,088 |  |  | $154,747 |  |  | 2% |  | (1)% |
| CDs $250,000 or less | 10,556 |  |  | 9,630 |  |  | 2,748 |  |  | 10% |  | 284% |
| Total core deposits | $163,788 |  |  | $159,718 |  |  | $157,495 |  |  | 3% |  | 4% |
| CDs over $250,000 | 5,659 |  |  | 5,926 |  |  | 3,566 |  |  | (5)% |  | 59% |
| Total average deposits | $169,447 |  |  | $165,644 |  |  | $161,061 |  |  | 2% |  | 5% |
| CDs over $250,000 includes $4.8BN, $5.2BN, and $3.4BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 12/31/23, 9/30/23, and 12/31/22, respectively. |

Compared to the prior quarter, total average deposits increased 2%, primarily due to seasonality. Average demand deposits represented 26% of total core deposits in the current quarter, compared to 28% in the prior quarter. Compared to the prior quarter, average consumer segment deposits increased 1%, average commercial segment deposits increased 5%, and average wealth & asset management segment deposits increased 1%. Period-end total deposits increased 1% compared to the prior quarter.
Compared to the year-ago quarter, total average deposits increased 5%, primarily reflecting an increase in interest checking and time deposit balances, partially offset by a decrease in demand account balances. Period-end total deposits increased 3% compared to the year-ago quarter.
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The period-end portfolio loan-to-core deposit ratio was 72% in the current quarter, compared to 74% in the prior quarter and 76% in the year-ago quarter. Estimated uninsured deposits were approximately $71 billion, or 42% of total deposits, as of quarter end.

Average Wholesale Funding |  |  |  |  |  |  |  |  |  |  |  |  |
| ($ in millions) | For the Three Months Ended |  |  | % Change |
|  | December |  | September |  | December |  |  |  |  |
|  | 2023 |  | 2023 |  | 2022 |  | Seq |  | Yr/Yr |
| Average Wholesale Funding |  |  |  |  |  |  |  |  |  |  |  |  |
| CDs over $250,000 | $5,659 |  |  | $5,926 |  |  | $3,566 |  |  | (5)% |  | 59% |
| Federal funds purchased | 191 |  |  | 181 |  |  | 264 |  |  | 6% |  | (28)% |
| Securities sold under repurchase agreements | 350 |  |  | 352 |  |  | 476 |  |  | (1)% |  | (26)% |
| FHLB advances | 3,293 |  |  | 3,726 |  |  | 5,489 |  |  | (12)% |  | (40)% |
| Derivative collateral and other secured borrowings | 34 |  |  | 48 |  |  | 225 |  |  | (29)% |  | (85)% |
| Long-term debt | 16,588 |  |  | 14,056 |  |  | 13,425 |  |  | 18% |  | 24% |
| Total average wholesale funding | $26,115 |  |  | $24,289 |  |  | $23,445 |  |  | 8% |  | 11% |
| CDs over $250,000 includes $4.8BN, $5.2BN, and $3.4BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 12/31/23, 9/30/23, and 12/31/22, respectively. |

Compared to the prior quarter, average wholesale funding increased 8%, primarily reflecting an increase in long-term debt (reflecting the full quarter impact of issuing long-term debt and automobile loan portfolio securitization in the prior quarter), partially offset by a decrease in FHLB advances. Compared to the year-ago quarter, average wholesale funding increased 11%, primarily reflecting an increase in long-term debt and CDs over $250,000, partially offset by a decrease in FHLB advances.
8

Credit Quality Summary |  |  |  |  |  |  |  |  |  |  |  |  |  |
($ in millions) | As of and For the Three Months Ended
| December |  | September |  | June |  | March |  | December
| 2023 |  | 2023 |  | 2023 |  | 2023 |  | 2022
Total nonaccrual portfolio loans and leases (NPLs) | $649 |  |  | $570 |  |  | $629 |  |  | $593 |  |  | $515 |
Repossessed property | 10 |  |  | 11 |  |  | 8 |  |  | 8 |  |  | 6 |
OREO | 29 |  |  | 31 |  |  | 24 |  |  | 22 |  |  | 18 |
Total nonperforming portfolio loans and leases and OREO (NPAs) | $688 |  |  | $612 |  |  | $661 |  |  | $623 |  |  | $539 |
NPL ratio(h) | 0.55 | % |  |  | 0.47 | % |  |  | 0.52 | % |  |  | 0.48 | % |  |  | 0.42 | % |
NPA ratio(c) | 0.59 | % |  |  | 0.51 | % |  |  | 0.54 | % |  |  | 0.51 | % |  |  | 0.44 | % |
Portfolio loans and leases 30-89 days past due (accrual) | $359 |  |  | $316 |  |  | $339 |  |  | $317 |  |  | $364 |
Portfolio loans and leases 90 days past due (accrual) | 36 |  |  | 29 |  |  | 51 |  |  | 46 |  |  | 40 |
30-89 days past due as a % of portfolio loans and leases | 0.31 | % |  |  | 0.26 | % |  |  | 0.28 | % |  |  | 0.26 | % |  |  | 0.30 | % |
90 days past due as a % of portfolio loans and leases | 0.03 | % |  |  | 0.02 | % |  |  | 0.04 | % |  |  | 0.04 | % |  |  | 0.03 | % |
Allowance for loan and lease losses (ALLL), beginning | $2,340 |  |  | $2,327 |  |  | $2,215 |  |  | $2,194 |  |  | $2,099 |
Impact of adoption of ASU 2022-02 | — |  |  | — |  |  | — |  |  | (49) |  |  | — |
Total net losses charged-off | (96) |  |  | (124) |  |  | (90) |  |  | (78) |  |  | (68) |
Provision for loan and lease losses | 78 |  |  | 137 |  |  | 202 |  |  | 148 |  |  | 163 |
ALLL, ending | $2,322 |  |  | $2,340 |  |  | $2,327 |  |  | $2,215 |  |  | $2,194 |
Reserve for unfunded commitments, beginning | $189 |  |  | $207 |  |  | $232 |  |  | $216 |  |  | $199 |
(Benefit from) provision for the reserve for unfunded commitments | (23) |  |  | (18) |  |  | (25) |  |  | 16 |  |  | 17 |
Reserve for unfunded commitments, ending | $166 |  |  | $189 |  |  | $207 |  |  | $232 |  |  | $216 |
Total allowance for credit losses (ACL) | $2,488 |  |  | $2,529 |  |  | $2,534 |  |  | $2,447 |  |  | $2,410 |
ACL ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |
As a % of portfolio loans and leases | 2.12 | % |  |  | 2.11 | % |  |  | 2.08 | % |  |  | 1.99 | % |  |  | 1.98 | % |
As a % of nonperforming portfolio loans and leases | 383 | % |  |  | 443 | % |  |  | 403 | % |  |  | 413 | % |  |  | 468 | % |
As a % of nonperforming portfolio assets | 362 | % |  |  | 413 | % |  |  | 383 | % |  |  | 393 | % |  |  | 447 | % |
ALLL as a % of portfolio loans and leases | 1.98 | % |  |  | 1.95 | % |  |  | 1.91 | % |  |  | 1.80 | % |  |  | 1.81 | % |
Total losses charged-off | $(133) |  |  | $(158) |  |  | $(121) |  |  | $(110) |  |  | $(103) |
Total recoveries of losses previously charged-off | 37 |  |  | 34 |  |  | 31 |  |  | 32 |  |  | 35 |
Total net losses charged-off | $(96) |  |  | $(124) |  |  | $(90) |  |  | $(78) |  |  | $(68) |
Net charge-off ratio (NCO ratio)(b) | 0.32 | % |  |  | 0.41 | % |  |  | 0.29 | % |  |  | 0.26 | % |  |  | 0.22 | % |
Commercial NCO ratio | 0.13 | % |  |  | 0.34 | % |  |  | 0.16 | % |  |  | 0.17 | % |  |  | 0.13 | % |
Consumer NCO ratio | 0.64 | % |  |  | 0.53 | % |  |  | 0.50 | % |  |  | 0.42 | % |  |  | 0.38 | % |

Nonperforming portfolio loans and leases were $649 million in the current quarter, with the resulting NPL ratio of 0.55%. Compared to the prior quarter, NPLs increased $79 million with the NPL ratio increasing 8 bps. Compared to the year-ago quarter, NPLs increased $134 million with the NPL ratio increasing 13 bps.
Nonperforming portfolio assets were $688 million in the current quarter, with the resulting NPA ratio of 0.59%. Compared to the prior quarter, NPAs increased $76 million with the NPA ratio increasing 8 bps. Compared to the year-ago quarter, NPAs increased $149 million with the NPA ratio increasing 15 bps.
The provision for credit losses totaled $55 million in the current quarter. The allowance for credit loss ratio represented 2.12% of total portfolio loans and leases at quarter end, compared with 2.11% for the prior quarter end and 1.98% for the
9

year-ago quarter end. In the current quarter, the allowance for credit losses represented 383% of nonperforming portfolio loans and leases and 362% of nonperforming portfolio assets.
Net charge-offs were $96 million in the current quarter, resulting in an NCO ratio of 0.32%. Compared to the prior quarter, net charge-offs decreased $28 million and the NCO ratio decreased 9 bps. Commercial net charge-offs were $25 million, resulting in a commercial NCO ratio of 0.13%, which decreased 21 bps compared to the prior quarter. Consumer net charge-offs were $71 million, resulting in a consumer NCO ratio of 0.64%, which increased 11 bps compared to the prior quarter.
Compared to the year-ago quarter, net charge-offs increased $28 million and the NCO ratio increased 10 bps, reflecting a normalizing from near-historically low net charge-offs in the year-ago quarter. The commercial NCO ratio was flat compared to the prior year, and the consumer NCO ratio increased 26 bps compared to the prior year.

| Capital Position |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | As of and For the Three Months Ended
|  |  |  | December |  | September |  | June |  | March | December
|  |  |  | 2023 |  | 2023 |  | 2023 |  | 2023 |  | 2022 |
| Capital Position |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Average total Bancorp shareholders' equity as a % of average assets |  | 8.04 | % |  |  | 8.30% |  | 8.90% |  | 8.77% |  | 8.18 | % |
| Tangible equity(a) |  | 8.65 | % |  |  | 8.46% |  | 8.58% |  | 8.39% |  | 8.31 | % |
| Tangible common equity (excluding AOCI)(a) |  | 7.67 | % |  |  | 7.49% |  | 7.57% |  | 7.38% |  | 7.30 | % |
| Tangible common equity (including AOCI)(a) |  | 5.73 | % |  |  | 4.51% |  | 5.26% |  | 5.49% |  | 5.00 | % |
| Regulatory Capital Ratios(d)(e) |  |  |
| CET1 capital |  | 10.29 | % |  |  | 9.80% |  | 9.49% |  | 9.28% |  | 9.28 | % |
| Tier 1 risk-based capital |  | 11.59 | % |  |  | 11.06% |  | 10.73% |  | 10.53% |  | 10.53 | % |
| Total risk-based capital |  | 13.72 | % |  |  | 13.13% |  | 12.83% |  | 12.64% |  | 12.79 | % |
| Leverage |  | 8.73 | % |  |  | 8.85% |  | 8.81% |  | 8.67% |  | 8.56 | % |

The CET1 capital ratio was 10.29%, the Tangible common equity to tangible assets ratio was 7.67% excluding AOCI, and 5.73% including AOCI. The Tier 1 risk-based capital ratio was 11.59%, the Total risk-based capital ratio was 13.72%, and the Leverage ratio was 8.73%. Fifth Third did not execute share repurchases in the fourth quarter of 2023.
10

Tax Rate
The effective tax rate for the quarter was 18.4% compared with 22.0% in the prior quarter and 19.4% in the year-ago quarter. The tax rate in the fourth quarter reflects a favorable adjustment of $17 million associated with resolution of certain acquisition related tax matters.
Conference Call
Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Us” then “Investor Relations”). Those unable to listen to the live webcast may access a webcast replay through the Fifth Third Investor Relations website at the same web address, which will be available for 30 days.
Corporate Profile
Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people, and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere's World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.
Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.” Investor information and press releases can be viewed at www.53.com.
Earnings Release End Notes
(a)Non-GAAP measure; see discussion of non-GAAP reconciliation beginning on page 27.
(b)Net losses charged-off as a percent of average portfolio loans and leases presented on an annualized basis.
(c)Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO.
(d)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(e)Current period regulatory capital ratios are estimated.
(f)Assumes a 23% tax rate.
(g)Includes commercial customer Eurodollar sweep balances for which the Bank pays rates comparable to other commercial deposit accounts.
(h)Nonperforming portfolio loans and leases as a percent of portfolio loans and leases.
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FORWARD-LOOKING STATEMENTS
This release contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements other than statements of historical fact are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “potential,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K as updated by our filings with the U.S. Securities and Exchange Commission (“SEC”).
There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) 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) effects of the global COVID-19 pandemic; (9) cyber-security risks; (10) Fifth Third’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (11) failures by third-party service providers; (12) inability to manage strategic initiatives and/or organizational changes; (13) inability to implement technology system enhancements; (14) failure of internal controls and other risk management systems; (15) losses related to fraud, theft, misappropriation or violence; (16) inability to attract and retain skilled personnel; (17) adverse impacts of government regulation; (18) governmental or regulatory changes or other actions; (19) failures to meet applicable capital requirements; (20) regulatory objections to Fifth Third’s capital plan; (21) regulation of Fifth Third’s derivatives activities; (22) deposit insurance premiums; (23) assessments for the orderly liquidation fund; (24) replacement of LIBOR; (25) weakness in the national or local economies; (26) global political and economic uncertainty or negative actions; (27) changes in interest rates and the effects of inflation; (28) changes and trends in capital markets; (29) fluctuation of Fifth Third’s stock price; (30) volatility in mortgage banking revenue; (31) litigation, investigations, and enforcement proceedings by governmental authorities; (32) breaches of contractual covenants, representations and warranties; (33) competition and changes in the financial services industry; (34) changing retail distribution strategies, customer preferences and behavior; (35) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (36) potential dilution from future acquisitions; (37) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (38) results of investments or acquired entities; (39) changes in accounting standards or interpretation or declines in the value of Fifth Third’s goodwill or other intangible assets; (40) inaccuracies or other failures from the use of models; (41) effects of critical accounting policies and judgments or the use of inaccurate estimates; (42) weather-related events, other natural disasters, or health emergencies (including pandemics); (43) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity; (44) changes in law or requirements imposed by Fifth Third’s regulators impacting our capital actions, including dividend payments and stock repurchases; and (45) Fifth Third's ability to meet its environmental and/or social targets, goals and commitments.
You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.
# # #
12

Quarterly Financial Review for December 31, 2023
Table of Contents

| Financial Highlights | 14-15 |
| Consolidated Statements of Income | 16-17 |
| Consolidated Balance Sheets | 18-19 |
| Consolidated Statements of Changes in Equity | 20 |
| Average Balance Sheets and Yield/Rate Analysis | 21-22 |
| Summary of Loans and Leases | 23 |
| Regulatory Capital | 24 |
| Summary of Credit Loss Experience | 25 |
| Asset Quality | 26 |
| Non-GAAP Reconciliation | 27-29 |
| Segment Presentation | 30 |

13

Fifth Third Bancorp and Subsidiaries |  |  |  |  |  |  |  |
Financial Highlights | As of and For the Three Months Ended | % / bps |  |  | % / bps
$ in millions, except per share data | Change | Year to Date | Change
(unaudited) | December | September | December |  |  | December | December |
|  | 2023 | 2023 | 2022 | Seq | Yr/Yr | 2023 | 2022 | Yr/Yr
Income Statement Data |  |  |  |  |  |  |  |
Net interest income | $1,416 | $1,438 | $1,577 | (2%) | (10%) | $5,827 | $5,609 | 4%
Net interest income (FTE)(a) | 1,423 | 1,445 | 1,582 | (2%) | (10%) | 5,852 | 5,625 | 4%
Noninterest income | 744 | 715 | 735 | 4% | 1% | 2,881 | 2,766 | 4%
| Total revenue (FTE)(a) | 2,167 | 2,160 | 2,317 | — | (6%) | 8,733 | 8,391 | 4%
Provision for credit losses | 55 | 119 | 180 | (54%) | (69%) | 515 | 563 | (9%)
Noninterest expense | 1,455 | 1,188 | 1,218 | 22% | 19% | 5,205 | 4,719 | 10%
Net income | 530 | 660 | 737 | (20%) | (28%) | 2,349 | 2,446 | (4%)
Net income available to common shareholders | 492 | 623 | 699 | (21%) | (30%) | 2,212 | 2,330 | (5%)
Earnings Per Share Data |  |  |  |  |  |  |  |
Net income allocated to common shareholders | $492 | $623 | $698 | (21%) | (30%) | $2,212 | $2,328 | (5%)
Average common shares outstanding (in thousands): |  |  |  |  |  |  |  |
| Basic | 684,413 | 684,224 | 688,680 | — | (1%) | 684,172 | 688,634 | (1%)
| Diluted | 687,729 | 687,059 | 694,195 | — | (1%) | 687,678 | 694,952 | (1%)
Earnings per share, basic | $0.72 | $0.91 | $1.01 | (21%) | (29%) | $3.23 | $3.38 | (4%)
Earnings per share, diluted | 0.72 | 0.91 | 1.01 | (21%) | (29%) | 3.22 | 3.35 | (4%)
Common Share Data |  |  |  |  |  |  |  |
Cash dividends per common share | $0.35 | $0.35 | $0.33 | — | 6% | $1.36 | $1.26 | 8%
Book value per share | 25.04 | 21.19 | 22.26 | 18% | 12% | 25.04 | 22.26 | 12%
Market value per share | 34.49 | 25.33 | 32.81 | 36% | 5% | 34.49 | 32.81 | 5%
Common shares outstanding (in thousands) | 681,125 | 680,990 | 683,386 | — | — | 681,125 | 683,386 | —
Market capitalization | $23,492 | $17,249 | $22,422 | 36% | 5% | $23,492 | $22,422 | 5%
Financial Ratios |  |  |  |  |  |  |  |
Return on average assets | 0.98 | % | 1.26 | % | 1.42 | % | (28) | (44) | 1.13 | % | 1.18 | % | (5)
Return on average common equity | 12.9 | % | 16.3 | % | 18.8 | % | (340) | (590) | 14.2 | % | 13.7 | % | 50
Return on average tangible common equity(a) | 19.8 | % | 24.7 | % | 29.2 | % | (490) | (940) | 21.3 | % | 19.7 | % | 160
Noninterest income as a percent of total revenue(a) | 34 | % | 33 | % | 32 | % | 100 | 200 | 33 | % | 33 | % | —
Dividend payout | 48.6 | % | 38.5 | % | 32.7 | % | 1,010 | 1,590 | 42.1 | % | 37.3 | % | 480
Average total Bancorp shareholders’ equity as a percent of average assets | 8.04 | % | 8.30 | % | 8.18 | % | (26) | (14) | 8.49 | % | 9.22 | % | (73)
Tangible common equity(a) | 7.67 | % | 7.49 | % | 7.30 | % | 18 | 37 | 7.67 | % | 7.30 | % | 37
Net interest margin (FTE)(a) | 2.85 | % | 2.98 | % | 3.35 | % | (13) | (50) | 3.05 | % | 3.02 | % | 3
Efficiency (FTE)(a) | 67.2 | % | 55.0 | % | 52.6 | % | NM | NM | 59.6 | % | 56.2 | % | 340
Effective tax rate | 18.4 | % | 22.0 | % | 19.4 | % | (360) | (100) | 21.4 | % | 21.0 | % | 40
Credit Quality |  |  |  |  |  |  |  |
Net losses charged-off | $96 | $124 | $68 | (23 | %) | 41 | % | $388 | $227 | 71 | %
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.32 | % | 0.41 | % | 0.22 | % | (9) | 10 | 0.32 | % | 0.19 | % | 13
ALLL as a percent of portfolio loans and leases | 1.98 | % | 1.95 | % | 1.81 | % | 3 | 17 | 1.98 | % | 1.81 | % | 17
ACL as a percent of portfolio loans and leases(g) | 2.12 | % | 2.11 | % | 1.98 | % | 1 | 14 | 2.12 | % | 1.98 | % | 14
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.59 | % | 0.51 | % | 0.44 | % | 8 | 15 | 0.59 | % | 0.44 | % | 15
Average Balances |  |  |  |  |  |  |  |
Loans and leases, including held for sale | $119,309 | $122,266 | $122,866 | (2%) | (3%) | $122,282 | $120,561 | 1%
Securities and other short-term investments | 78,857 | 69,950 | 64,774 | 13% | 22% | 69,461 | 65,765 | 6%
Assets | 214,057 | 208,385 | 206,017 | 3% | 4% | 208,426 | 206,929 | 1%
Transaction deposits(b) | 153,232 | 150,088 | 154,747 | 2% | (1%) | 150,546 | 158,961 | (5%)
Core deposits(c) | 163,788 | 159,718 | 157,495 | 3% | 4% | 158,844 | 161,303 | (2%)
Wholesale funding(d) | 26,115 | 24,289 | 23,445 | 8% | 11% | 24,943 | 18,506 | 35%
Bancorp shareholders' equity | 17,201 | 17,305 | 16,857 | (1%) | 2% | 17,704 | 19,080 | (7%)
Regulatory Capital Ratios(e)(f) |  |  |  |  |  |  |  |
CET1 capital | 10.29 | % | 9.80 | % | 9.28 | % | 49 | 101 | 10.29 | % | 9.28 | % | 101
Tier 1 risk-based capital | 11.59 | % | 11.06 | % | 10.53 | % | 53 | 106 | 11.59 | % | 10.53 | % | 106
Total risk-based capital | 13.72 | % | 13.13 | % | 12.79 | % | 59 | 93 | 13.72 | % | 12.79 | % | 93
Leverage | 8.73 | % | 8.85 | % | 8.56 | % | (12) | 17 | 8.73 | % | 8.56 | % | 17
Additional Metrics |  |  |  |  |  |  |  |
Banking centers | 1,088 | 1,073 | 1,087 | 1% | — | 1,088 | 1,087 | —
ATMs | 2,104 | 2,101 | 2,132 | — | (1%) | 2,104 | 2,132 | (1%)
Full-time equivalent employees | 18,724 | 18,804 | 19,319 | — | (3%) | 18,724 | 19,319 | (3%)
Assets under care ($ in billions)(h) | $574 | $547 | $510 | 5% | 13% | $574 | $510 | 13%
Assets under management ($ in billions)(h) | 59 | 57 | 55 | 4% | 7% | 59 | 55 | 7%

(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)Assets under management and assets under care include trust and brokerage assets.
14

Fifth Third Bancorp and Subsidiaries |  |  |  |  |
Financial Highlights |  |  |  |  |
$ in millions, except per share data | As of and For the Three Months Ended
(unaudited) | December | September | June | March | December
|  | 2023 | 2023 | 2023 | 2023 | 2022
Income Statement Data |  |  |  |  |
Net interest income | $1,416 | $1,438 | $1,457 | $1,517 | $1,577
Net interest income (FTE)(a) | 1,423 | 1,445 | 1,463 | 1,522 | 1,582
Noninterest income | 744 | 715 | 726 | 696 | 735
| Total revenue (FTE)(a) | 2,167 | 2,160 | 2,189 | 2,218 | 2,317
Provision for credit losses | 55 | 119 | 177 | 164 | 180
Noninterest expense | 1,455 | 1,188 | 1,231 | 1,331 | 1,218
Net income | 530 | 660 | 601 | 558 | 737
Net income available to common shareholders | 492 | 623 | 562 | 535 | 699
Earnings Per Share Data |  |  |  |  |
Net income allocated to common shareholders | $492 | $623 | $562 | $535 | $698
Average common shares outstanding (in thousands): |  |  |  |  |
| Basic | 684,413 | 684,224 | 684,029 | 684,017 | 688,680
| Diluted | 687,729 | 687,059 | 686,386 | 689,566 | 694,195
Earnings per share, basic | $0.72 | $0.91 | $0.82 | $0.78 | $1.01
Earnings per share, diluted | 0.72 | 0.91 | 0.82 | 0.78 | 1.01
Common Share Data |  |  |  |  |
Cash dividends per common share | $0.35 | $0.35 | $0.33 | $0.33 | $0.33
Book value per share | 25.04 | 21.19 | 23.05 | 23.87 | 22.26
Market value per share | 34.49 | 25.33 | 26.21 | 26.64 | 32.81
Common shares outstanding (in thousands) | 681,125 | 680,990 | 680,850 | 680,537 | 683,386
Market capitalization | $23,492 | $17,249 | $17,845 | $18,129 | $22,422
Financial Ratios |  |  |  |  |
Return on average assets | 0.98 | % | 1.26 | % | 1.17 | % | 1.10 | % | 1.42 | %
Return on average common equity | 12.9 | % | 16.3 | % | 13.9 | % | 13.7 | % | 18.8 | %
Return on average tangible common equity(a) | 19.8 | % | 24.7 | % | 20.5 | % | 20.5 | % | 29.2 | %
Noninterest income as a percent of total revenue(a) | 34 | % | 33 | % | 33 | % | 31 | % | 32 | %
Dividend payout | 48.6 | % | 38.5 | % | 40.2 | % | 42.3 | % | 32.7 | %
Average total Bancorp shareholders’ equity as a percent of average assets | 8.04 | % | 8.30 | % | 8.90 | % | 8.77 | % | 8.18 | %
Tangible common equity(a) | 7.67 | % | 7.49 | % | 7.57 | % | 7.38 | % | 7.30 | %
Net interest margin (FTE)(a) | 2.85 | % | 2.98 | % | 3.10 | % | 3.29 | % | 3.35 | %
Efficiency (FTE)(a) | 67.2 | % | 55.0 | % | 56.2 | % | 60.0 | % | 52.6 | %
Effective tax rate | 18.4 | % | 22.0 | % | 22.5 | % | 22.3 | % | 19.4 | %
Credit Quality |  |  |  |  |
Net losses charged-off | $96 | $124 | $90 | $78 | $68
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.32 | % | 0.41 | % | 0.29 | % | 0.26 | % | 0.22 | %
ALLL as a percent of portfolio loans and leases | 1.98 | % | 1.95 | % | 1.91 | % | 1.80 | % | 1.81 | %
ACL as a percent of portfolio loans and leases(g) | 2.12 | % | 2.11 | % | 2.08 | % | 1.99 | % | 1.98 | %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.59 | % | 0.51 | % | 0.54 | % | 0.51 | % | 0.44 | %
Average Balances |  |  |  |  |
Loans and leases, including held for sale | $119,309 | $122,266 | $123,987 | $123,615 | $122,866
Securities and other short-term investments | 78,857 | 69,950 | 65,073 | 63,792 | 64,774
Assets | 214,057 | 208,385 | 206,079 | 205,084 | 206,017
Transaction deposits(b) | 153,232 | 150,088 | 147,723 | 151,124 | 154,747
Core deposits(c) | 163,788 | 159,718 | 155,482 | 156,297 | 157,495
Wholesale funding(d) | 26,115 | 24,289 | 25,628 | 23,720 | 23,445
Bancorp shareholders’ equity | 17,201 | 17,305 | 18,344 | 17,977 | 16,857
Regulatory Capital Ratios(e)(f) |  |  |  |  |
CET1 capital | 10.29 | % | 9.80 | % | 9.49 | % | 9.28 | % | 9.28 | %
Tier 1 risk-based capital | 11.59 | % | 11.06 | % | 10.73 | % | 10.53 | % | 10.53 | %
Total risk-based capital | 13.72 | % | 13.13 | % | 12.83 | % | 12.64 | % | 12.79 | %
Leverage | 8.73 | % | 8.85 | % | 8.81 | % | 8.67 | % | 8.56 | %
Additional Metrics |  |  |  |  |
Banking centers | 1,088 | 1,073 | 1,072 | 1,069 | 1,087
ATMs | 2,104 | 2,101 | 2,114 | 2,118 | 2,132
Full-time equivalent employees | 18,724 | 18,804 | 19,225 | 19,474 | 19,319
Assets under care ($ in billions)(h) | $574 | $547 | $554 | $542 | $510
Assets under management ($ in billions)(h) | 59 | 57 | 59 | 57 | 55

(a)Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.
(b)Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers.
(c)Includes transaction deposits plus CDs $250,000 or less.
(d)Includes CDs over $250,000, other deposits, federal funds purchased, other short-term borrowings and long-term debt.
(e)Current period regulatory capital ratios are estimates.
(f)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
(g)The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(h)Assets under management and assets under care include trust and brokerage assets.
15

Fifth Third Bancorp and Subsidiaries |  |  |  |  |  |  |  |
Consolidated Statements of Income |  |  |  |  |  |  |  |
$ in millions | For the Three Months Ended | % Change | Year to Date | % Change
(unaudited) | December | September | December |  |  | December | December |
| 2023 | 2023 | 2022 | Seq | Yr/Yr | 2023 | 2022 | Yr/Yr
Interest Income |  |  |  |  |  |  |  |
Interest and fees on loans and leases | $1,889 | $1,899 | $1,577 | (1%) | 20% | $7,334 | $4,954 | 48%
Interest on securities | 451 | 444 | 440 | 2% | 3% | 1,770 | 1,517 | 17%
Interest on other short-term investments | 308 | 186 | 58 | 66% | 431% | 656 | 116 | 466%
Total interest income | 2,648 | 2,529 | 2,075 | 5% | 28% | 9,760 | 6,587 | 48%
Interest Expense |  |  |  |  |  |  |  |
Interest on deposits | 952 | 844 | 300 | 13% | 217% | 2,929 | 447 | 555%
Interest on federal funds purchased | 3 | 2 | 2 | 50% | 50% | 15 | 6 | 150%
Interest on other short-term borrowings | 49 | 52 | 53 | (6%) | (8%) | 247 | 108 | 129%
Interest on long-term debt | 228 | 193 | 143 | 18% | 59% | 742 | 417 | 78%
Total interest expense | 1,232 | 1,091 | 498 | 13% | 147% | 3,933 | 978 | 302%
Net Interest Income | 1,416 | 1,438 | 1,577 | (2%) | (10%) | 5,827 | 5,609 | 4%
Provision for credit losses | 55 | 119 | 180 | (54%) | (69%) | 515 | 563 | (9%)
Net Interest Income After Provision for Credit Losses | 1,361 | 1,319 | 1,397 | 3% | (3%) | 5,312 | 5,046 | 5%
Noninterest Income |  |  |  |  |  |  |  |
Service charges on deposits | 146 | 149 | 140 | (2%) | 4% | 577 | 589 | (2%)
Commercial banking revenue | 163 | 154 | 158 | 6% | 3% | 624 | 565 | 10%
Mortgage banking net revenue | 66 | 57 | 63 | 16% | 5% | 250 | 215 | 16%
Wealth and asset management revenue | 147 | 145 | 139 | 1% | 6% | 581 | 570 | 2%
Card and processing revenue | 106 | 104 | 103 | 2% | 3% | 416 | 409 | 2%
Leasing business revenue | 46 | 58 | 58 | (21%) | (21%) | 208 | 237 | (12%)
Other noninterest income | 54 | 55 | 72 | (2%) | (25%) | 207 | 265 | (22%)
Securities gains (losses), net | 15 | (7) | 2 | NM | 650% | 18 | (82) | NM
Securities gains (losses), net - non-qualifying hedges on mortgage servicing rights | 1 | — | — | NM | NM | — | (2) | (100%)
Total noninterest income | 744 | 715 | 735 | 4% | 1% | 2,881 | 2,766 | 4%
Noninterest Expense |  |  |  |  |  |  |  |
Compensation and benefits | 659 | 629 | 655 | 5% | 1% | 2,694 | 2,554 | 5%
Net occupancy expense | 83 | 84 | 82 | (1%) | 1% | 331 | 307 | 8%
Technology and communications | 117 | 115 | 111 | 2% | 5% | 464 | 416 | 12%
Equipment expense | 37 | 37 | 37 | — | — | 148 | 145 | 2%
Card and processing expense | 21 | 21 | 21 | — | — | 84 | 80 | 5%
Leasing business expense | 27 | 29 | 36 | (7%) | (25%) | 121 | 131 | (8%)
Marketing expense | 30 | 35 | 31 | (14%) | (3%) | 126 | 118 | 7%
Other noninterest expense | 481 | 238 | 245 | 102% | 96% | 1,237 | 968 | 28%
Total noninterest expense | 1,455 | 1,188 | 1,218 | 22% | 19% | 5,205 | 4,719 | 10%
Income Before Income Taxes | 650 | 846 | 914 | (23%) | (29%) | 2,988 | 3,093 | (3%)
Applicable income tax expense | 120 | 186 | 177 | (35%) | (32%) | 639 | 647 | (1%)
Net Income | 530 | 660 | 737 | (20%) | (28%) | 2,349 | 2,446 | (4%)
Dividends on preferred stock | 38 | 37 | 38 | 3% | — | 137 | 116 | 18%
Net Income Available to Common Shareholders | $492 | $623 | $699 | (21%) | (30%) | $2,212 | $2,330 | (5%)

16

Fifth Third Bancorp and Subsidiaries |  |  |  |  |
Consolidated Statements of Income |  |  |  |  |
$ in millions | For the Three Months Ended
(unaudited) | December | September | June | March | December
| 2023 | 2023 | 2023 | 2023 | 2022
Interest Income |  |  |  |  |
Interest and fees on loans and leases | $1,889 | $1,899 | $1,831 | $1,714 | $1,577
Interest on securities | 451 | 444 | 437 | 439 | 440
Interest on other short-term investments | 308 | 186 | 102 | 60 | 58
Total interest income | 2,648 | 2,529 | 2,370 | 2,213 | 2,075
Interest Expense |  |  |  |  |
Interest on deposits | 952 | 844 | 655 | 478 | 300
Interest on federal funds purchased | 3 | 2 | 5 | 5 | 2
Interest on other short-term borrowings | 49 | 52 | 90 | 57 | 53
Interest on long-term debt | 228 | 193 | 163 | 156 | 143
Total interest expense | 1,232 | 1,091 | 913 | 696 | 498
Net Interest Income | 1,416 | 1,438 | 1,457 | 1,517 | 1,577
Provision for credit losses | 55 | 119 | 177 | 164 | 180
Net Interest Income After Provision for Credit Losses | 1,361 | 1,319 | 1,280 | 1,353 | 1,397
Noninterest Income |  |  |  |  |
Service charges on deposits | 146 | 149 | 144 | 137 | 140
Commercial banking revenue | 163 | 154 | 146 | 161 | 158
Mortgage banking net revenue | 66 | 57 | 59 | 69 | 63
Wealth and asset management revenue | 147 | 145 | 143 | 146 | 139
Card and processing revenue | 106 | 104 | 106 | 100 | 103
Leasing business revenue | 46 | 58 | 47 | 57 | 58
Other noninterest income | 54 | 55 | 74 | 22 | 72
Securities gains (losses), net | 15 | (7) | 7 | 4 | 2
Securities gains, net - non-qualifying hedges on mortgage servicing rights | 1 | — | — | — | —
Total noninterest income | 744 | 715 | 726 | 696 | 735
Noninterest Expense |  |  |  |  |
Compensation and benefits | 659 | 629 | 650 | 757 | 655
Net occupancy expense | 83 | 84 | 83 | 81 | 82
Technology and communications | 117 | 115 | 114 | 118 | 111
Equipment expense | 37 | 37 | 36 | 37 | 37
Card and processing expense | 21 | 21 | 20 | 22 | 21
Leasing business expense | 27 | 29 | 31 | 34 | 36
Marketing expense | 30 | 35 | 31 | 29 | 31
Other noninterest expense | 481 | 238 | 266 | 253 | 245
Total noninterest expense | 1,455 | 1,188 | 1,231 | 1,331 | 1,218
Income Before Income Taxes | 650 | 846 | 775 | 718 | 914
Applicable income tax expense | 120 | 186 | 174 | 160 | 177
Net Income | 530 | 660 | 601 | 558 | 737
Dividends on preferred stock | 38 | 37 | 39 | 23 | 38
Net Income Available to Common Shareholders | $492 | $623 | $562 | $535 | $699

17

Fifth Third Bancorp and Subsidiaries |  |  |  |  |
Consolidated Balance Sheets |  |  |  |  |
$ in millions, except per share data | As of | % Change
(unaudited) | December | September | December |  |
| 2023 | 2023 | 2022 | Seq | Yr/Yr
Assets |  |  |  |  |
Cash and due from banks | $3,142 | $2,837 | $3,466 | 11% | (9%)
Other short-term investments | 22,082 | 18,923 | 8,351 | 17% | 164%
Available-for-sale debt and other securities(a) | 50,419 | 47,893 | 51,503 | 5% | (2%)
Held-to-maturity securities(b) | 2 | 2 | 5 | — | (60%)
Trading debt securities | 899 | 1,222 | 414 | (26%) | 117%
Equity securities | 613 | 250 | 317 | 145% | 93%
Loans and leases held for sale | 378 | 614 | 1,007 | (38%) | (62%)
Portfolio loans and leases: |  |  |  |  |
Commercial and industrial loans | 53,270 | 55,790 | 57,232 | (5%) | (7%)
Commercial mortgage loans | 11,276 | 11,122 | 11,020 | 1% | 2%
Commercial construction loans | 5,621 | 5,582 | 5,433 | 1% | 3%
Commercial leases | 2,579 | 2,624 | 2,704 | (2%) | (5%)
Total commercial loans and leases | 72,746 | 75,118 | 76,389 | (3%) | (5%)
Residential mortgage loans | 17,026 | 17,293 | 17,628 | (2%) | (3%)
Home equity | 3,916 | 3,898 | 4,039 | — | (3%)
Indirect secured consumer loans | 14,965 | 15,434 | 16,552 | (3%) | (10%)
Credit card | 1,865 | 1,817 | 1,874 | 3% | —
Other consumer loans | 6,716 | 6,528 | 4,998 | 3% | 34%
Total consumer loans | 44,488 | 44,970 | 45,091 | (1%) | (1%)
Portfolio loans and leases | 117,234 | 120,088 | 121,480 | (2%) | (3%)
Allowance for loan and lease losses | (2,322) | (2,340) | (2,194) | (1%) | 6%
Portfolio loans and leases, net | 114,912 | 117,748 | 119,286 | (2%) | (4%)
Bank premises and equipment | 2,349 | 2,303 | 2,187 | 2% | 7%
Operating lease equipment | 459 | 480 | 627 | (4%) | (27%)
Goodwill | 4,919 | 4,919 | 4,915 | — | —
Intangible assets | 125 | 136 | 169 | (8%) | (26%)
Servicing rights | 1,737 | 1,822 | 1,746 | (5%) | (1%)
Other assets | 12,538 | 13,818 | 13,459 | (9%) | (7%)
Total Assets | $214,574 | $212,967 | $207,452 | 1% | 3%
Liabilities |  |  |  |  |
Deposits: |  |  |  |  |
Demand | $43,146 | $43,844 | $53,125 | (2%) | (19%)
Interest checking | 57,257 | 53,421 | 51,653 | 7% | 11%
Savings | 18,215 | 20,195 | 23,469 | (10%) | (22%)
Money market | 34,374 | 33,492 | 28,220 | 3% | 22%
Foreign office | 162 | 168 | 182 | (4%) | (11%)
CDs $250,000 or less | 10,552 | 10,306 | 3,809 | 2% | 177%
CDs over $250,000 | 5,206 | 6,246 | 3,232 | (17%) | 61%
Total deposits | 168,912 | 167,672 | 163,690 | 1% | 3%
Federal funds purchased | 193 | 205 | 180 | (6%) | 7%
Other short-term borrowings | 2,861 | 4,594 | 4,838 | (38%) | (41%)
Accrued taxes, interest and expenses | 2,195 | 1,834 | 1,822 | 20% | 20%
Other liabilities | 4,861 | 5,808 | 5,881 | (16%) | (17%)
Long-term debt | 16,380 | 16,310 | 13,714 | — | 19%
Total Liabilities | 195,402 | 196,423 | 190,125 | (1%) | 3%
Equity |  |  |  |  |
Common stock(c) | 2,051 | 2,051 | 2,051 | — | —
Preferred stock | 2,116 | 2,116 | 2,116 | — | —
Capital surplus | 3,757 | 3,733 | 3,684 | 1% | 2%
Retained earnings | 22,997 | 22,747 | 21,689 | 1% | 6%
Accumulated other comprehensive loss | (4,487) | (6,839) | (5,110) | (34%) | (12%)
Treasury stock | (7,262) | (7,264) | (7,103) | — | 2%
Total Equity | 19,172 | 16,544 | 17,327 | 16% | 11%
Total Liabilities and Equity | $214,574 | $212,967 | $207,452 | 1% | 3%
(a) Amortized cost | $55,789 | $55,557 | $57,530 | — | (3%)
(b) Market values | 2 |  | 2 |  | 5 |  | — | (60%)
(c) Common shares, stated value $2.22 per share (in thousands): |  |  |  |  |
Authorized | 2,000,000 | 2,000,000 | 2,000,000 | — | —
Outstanding, excluding treasury | 681,125 | 680,990 | 683,386 | — | —
Treasury | 242,768 | 242,903 | 240,507 | — | —

18

Fifth Third Bancorp and Subsidiaries |  |  |  |  |
Consolidated Balance Sheets |  |  |  |  |
$ in millions, except per share data | As of
(unaudited) | December | September | June | March | December
| 2023 | 2023 | 2023 | 2023 | 2022
Assets |  |  |  |  |
Cash and due from banks | $3,142 | $2,837 | $2,594 | $2,780 | $3,466
Other short-term investments | 22,082 | 18,923 | 10,943 | 9,794 | 8,351
Available-for-sale debt and other securities(a) | 50,419 | 47,893 | 49,329 | 50,719 | 51,503
Held-to-maturity securities(b) | 2 | 2 | 2 | 2 | 5
Trading debt securities | 899 | 1,222 | 1,139 | 1,174 | 414
Equity securities | 613 | 250 | 331 | 323 | 317
Loans and leases held for sale | 378 | 614 | 760 | 749 | 1,007
Portfolio loans and leases: |  |  |  |  |
Commercial and industrial loans | 53,270 | 55,790 | 56,897 | 57,720 | 57,232
Commercial mortgage loans | 11,276 | 11,122 | 11,310 | 11,228 | 11,020
Commercial construction loans | 5,621 | 5,582 | 5,475 | 5,548 | 5,433
Commercial leases | 2,579 | 2,624 | 2,670 | 2,743 | 2,704
Total commercial loans and leases | 72,746 | 75,118 | 76,352 | 77,239 | 76,389
Residential mortgage loans | 17,026 | 17,293 | 17,503 | 17,608 | 17,628
Home equity | 3,916 | 3,898 | 3,911 | 3,958 | 4,039
Indirect secured consumer loans | 14,965 | 15,434 | 16,097 | 16,484 | 16,552
Credit card | 1,865 | 1,817 | 1,818 | 1,761 | 1,874
Other consumer loans | 6,716 | 6,528 | 6,210 | 5,807 | 4,998
Total consumer loans | 44,488 | 44,970 | 45,539 | 45,618 | 45,091
Portfolio loans and leases | 117,234 | 120,088 | 121,891 | 122,857 | 121,480
Allowance for loan and lease losses | (2,322) | (2,340) | (2,327) | (2,215) | (2,194)
Portfolio loans and leases, net | 114,912 | 117,748 | 119,564 | 120,642 | 119,286
Bank premises and equipment | 2,349 | 2,303 | 2,275 | 2,219 | 2,187
Operating lease equipment | 459 | 480 | 537 | 578 | 627
Goodwill | 4,919 | 4,919 | 4,919 | 4,915 | 4,915
Intangible assets | 125 | 136 | 146 | 157 | 169
Servicing rights | 1,737 | 1,822 | 1,764 | 1,725 | 1,746
Other assets | 12,538 | 13,818 | 12,973 | 12,880 | 13,459
Total Assets | $214,574 | $212,967 | $207,276 | $208,657 | $207,452
Liabilities |  |  |  |  |
Deposits: |  |  |  |  |
Demand | $43,146 | $43,844 | $45,264 | $49,649 | $53,125
Interest checking | 57,257 | 53,421 | 52,743 | 49,924 | 51,653
Savings | 18,215 | 20,195 | 21,342 | 22,563 | 23,469
Money market | 34,374 | 33,492 | 30,012 | 28,482 | 28,220
Foreign office | 162 | 168 | 182 | 134 | 182
CDs $250,000 or less | 10,552 | 10,306 | 8,833 | 6,624 | 3,809
CDs over $250,000 | 5,206 | 6,246 | 5,752 | 5,599 | 3,232
Total deposits | 168,912 | 167,672 | 164,128 | 162,975 | 163,690
Federal funds purchased | 193 | 205 | 163 | 177 | 180
Other short-term borrowings | 2,861 | 4,594 | 5,817 | 7,364 | 4,838
Accrued taxes, interest and expenses | 2,195 | 1,834 | 1,765 | 1,577 | 1,822
Other liabilities | 4,861 | 5,808 | 5,316 | 5,307 | 5,881
Long-term debt | 16,380 | 16,310 | 12,278 | 12,893 | 13,714
Total Liabilities | 195,402 | 196,423 | 189,467 | 190,293 | 190,125
Equity |  |  |  |  |
Common stock(c) | 2,051 | 2,051 | 2,051 | 2,051 | 2,051
Preferred stock | 2,116 | 2,116 | 2,116 | 2,116 | 2,116
Capital surplus | 3,757 | 3,733 | 3,708 | 3,682 | 3,684
Retained earnings | 22,997 | 22,747 | 22,366 | 22,032 | 21,689
Accumulated other comprehensive loss | (4,487) | (6,839) | (5,166) | (4,245) | (5,110)
Treasury stock | (7,262) | (7,264) | (7,266) | (7,272) | (7,103)
Total Equity | 19,172 | 16,544 | 17,809 | 18,364 | 17,327
Total Liabilities and Equity | $214,574 | $212,967 | $207,276 | $208,657 | $207,452
(a) Amortized cost | $55,789 | $55,557 | $55,399 | $55,958 | $57,530
(b) Market values | 2 | 2 | 2 | 2 | 5
(c) 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 | 681,125 | 680,990 | 680,850 | 680,537 | 683,386
Treasury | 242,768 | 242,903 | 243,042 | 243,356 | 240,507

19

Fifth Third Bancorp and Subsidiaries |  |  |  |
Consolidated Statements of Changes in Equity |  |  |  |
$ in millions |  |  |  |
(unaudited) |  |  |  |
|  |  | For the Three Months Ended | Year to Date
|  |  | December | December | December | December
|  |  | 2023 | 2022 | 2023 | 2022
Total Equity, Beginning | $16,544 | $16,736 | $17,327 | $22,210
Impact of cumulative effect of change in accounting principle | — | — | 37 | —
Net income | 530 | 737 | 2,349 | 2,446
Other comprehensive income (loss), net of tax: |  |  |  |
Change in unrealized gains (losses): |  |  |  |
|  | Available-for-sale debt securities | 1,746 | 86 | 495 | (5,480)
|  | Qualifying cash flow hedges | 605 | 98 | 126 | (851)
Change in accumulated other comprehensive income related to employee benefit plans | 1 | 12 | 2 | 14
Comprehensive income (loss) | 2,882 | 933 | 2,972 | (3,871)
Cash dividends declared: |  |  |  |
| Common stock | (242) | (229) | (941) | (877)
| Preferred stock | (38) | (38) | (137) | (116)
Impact of stock transactions under stock compensation plans, net | 26 | 25 | 115 | 81
Shares acquired for treasury | — | (100) | (201) | (100)
Total Equity, Ending | $19,172 | $17,327 | $19,172 | $17,327

20

Fifth Third Bancorp and Subsidiaries |  |  |  |  |  |  |  |
Average Balance Sheet and Yield/Rate Analysis | For the Three Months Ended
$ in millions | December |  | September |  | December
(unaudited) | 2023 |  | 2023 |  | 2022
| Average | Average |  | Average | Average |  | Average | Average
| Balance | Yield/Rate |  | Balance | Yield/Rate |  | Balance | Yield/Rate
Assets |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |
Loans and leases: |  |  |  |  |  |  |  |
Commercial and industrial loans(a) | $54,688 | 7.10 | % |  | $57,015 | 7.00 | % |  | $57,729 | 5.71 | %
Commercial mortgage loans(a) | 11,338 | 6.26 | % |  | 11,216 | 6.12 | % |  | 10,898 | 4.98 | %
Commercial construction loans(a) | 5,744 | 6.96 | % |  | 5,540 | 6.93 | % |  | 5,544 | 5.73 | %
Commercial leases(a) | 2,535 | 3.76 | % |  | 2,618 | 3.75 | % |  | 2,737 | 3.23 | %
Total commercial loans and leases | 74,305 | 6.85 | % |  | 76,389 | 6.75 | % |  | 76,908 | 5.52 | %
Residential mortgage loans | 17,508 | 3.51 | % |  | 18,019 | 3.52 | % |  | 18,987 | 3.48 | %
Home equity | 3,905 | 8.28 | % |  | 3,897 | 8.17 | % |  | 4,024 | 5.63 | %
Indirect secured consumer loans | 15,129 | 4.69 | % |  | 15,787 | 4.43 | % |  | 16,536 | 3.67 | %
Credit card | 1,829 | 13.81 | % |  | 1,808 | 14.09 | % |  | 1,795 | 13.39 | %
Other consumer loans | 6,633 | 7.90 | % |  | 6,366 | 7.65 | % |  | 4,616 | 6.27 | %
Total consumer loans | 45,004 | 5.38 | % |  | 45,877 | 5.22 | % |  | 45,958 | 4.40 | %
Total loans and leases | 119,309 | 6.30 | % |  | 122,266 | 6.18 | % |  | 122,866 | 5.10 | %
Securities: |  |  |  |  |  |  |  |
Taxable securities | 55,884 | 3.13 | % |  | 55,519 | 3.10 | % |  | 57,230 | 3.00 | %
Tax exempt securities(a) | 1,467 | 3.29 | % |  | 1,475 | 3.21 | % |  | 1,259 | 3.02 | %
Other short-term investments | 21,506 | 5.68 | % |  | 12,956 | 5.69 | % |  | 6,285 | 3.68 | %
Total interest-earning assets | 198,166 | 5.31 | % |  | 192,216 | 5.23 | % |  | 187,640 | 4.40 | %
Cash and due from banks | 2,759 |  |  | 2,576 |  |  | 3,127 |
Other assets | 15,471 |  |  | 15,920 |  |  | 17,351 |
Allowance for loan and lease losses | (2,339) |  |  | (2,327) |  |  | (2,101) |
Total Assets | $214,057 |  |  | $208,385 |  |  | $206,017 |
Liabilities |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |
Interest checking deposits | $57,114 | 3.41 | % |  | $53,109 | 3.18 | % |  | $47,801 | 1.63 | %
Savings deposits | 18,252 | 0.63 | % |  | 20,511 | 0.89 | % |  | 23,474 | 0.37 | %
Money market deposits | 34,292 | 2.85 | % |  | 32,072 | 2.50 | % |  | 28,713 | 0.61 | %
Foreign office deposits | 178 | 2.32 | % |  | 168 | 1.72 | % |  | 209 | 1.51 | %
CDs $250,000 or less | 10,556 | 4.14 | % |  | 9,630 | 3.97 | % |  | 2,748 | 1.12 | %
Total interest-bearing core deposits | 120,392 | 2.89 | % |  | 115,490 | 2.65 | % |  | 102,945 | 1.05 | %
CDs over $250,000 | 5,659 | 5.21 | % |  | 5,926 | 4.91 | % |  | 3,566 | 3.15 | %
Total interest-bearing deposits | 126,051 | 3.00 | % |  | 121,416 | 2.76 | % |  | 106,511 | 1.12 | %
Federal funds purchased | 191 | 5.38 | % |  | 181 | 5.31 | % |  | 264 | 3.52 | %
Securities sold under repurchase agreements | 350 | 1.47 | % |  | 352 | 1.46 | % |  | 476 | 0.36 | %
FHLB advances | 3,293 | 5.66 | % |  | 3,726 | 5.26 | % |  | 5,489 | 3.61 | %
Derivative collateral and other secured borrowings | 34 | 9.77 | % |  | 48 | 7.82 | % |  | 225 | 4.10 | %
Long-term debt | 16,588 | 5.47 | % |  | 14,056 | 5.46 | % |  | 13,425 | 4.23 | %
Total interest-bearing liabilities | 146,507 | 3.34 | % |  | 139,779 | 3.10 | % |  | 126,390 | 1.56 | %
Demand deposits | 43,396 |  |  | 44,228 |  |  | 54,550 |
Other liabilities | 6,953 |  |  | 7,073 |  |  | 8,220 |
Total Liabilities | 196,856 |  |  | 191,080 |  |  | 189,160 |
Total Equity | 17,201 |  |  | 17,305 |  |  | 16,857 |
Total Liabilities and Equity | $214,057 |  |  | $208,385 |  |  | $206,017 |
Ratios: |  |  |  |  |  |  |  |
Net interest margin (FTE)(b) |  | 2.85 | % |  |  | 2.98 | % |  |  | 3.35 | %
Net interest rate spread (FTE)(b) |  | 1.97 | % |  |  | 2.13 | % |  |  | 2.84 | %
Interest-bearing liabilities to interest-earning assets |  | 73.93 | % |  |  | 72.72 | % |  |  | 67.36 | %
(a) Average Yield/Rate of these assets are presented on an FTE basis. |
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27. |

21

Fifth Third Bancorp and Subsidiaries |  |  |  |  |
Average Balance Sheet and Yield/Rate Analysis | Year to Date
$ in millions | December |  | December
(unaudited) | 2023 |  | 2022
| Average | Average |  | Average | Average
| Balance | Yield/Rate |  | Balance | Yield/Rate
Assets |  |  |  |  |
Interest-earning assets: |  |  |  |  |
Loans and leases: |  |  |  |  |
Commercial and industrial loans(a) | $57,005 | 6.82 | % |  | $55,618 | 4.32 | %
Commercial mortgage loans(a) | 11,262 | 5.97 | % |  | 10,723 | 3.87 | %
Commercial construction loans(a) | 5,582 | 6.80 | % |  | 5,458 | 4.38 | %
Commercial leases(a) | 2,629 | 3.63 | % |  | 2,828 | 3.02 | %
Total commercial loans and leases | 76,478 | 6.58 | % |  | 74,627 | 4.21 | %
Residential mortgage loans | 18,002 | 3.45 | % |  | 19,731 | 3.27 | %
Home equity | 3,936 | 7.58 | % |  | 3,971 | 4.46 | %
Indirect secured consumer loans | 15,944 | 4.31 | % |  | 16,914 | 3.31 | %
Credit card | 1,800 | 14.00 | % |  | 1,737 | 12.73 | %
Other consumer loans | 6,122 | 7.46 | % |  | 3,581 | 6.16 | %
Total consumer loans | 45,804 | 5.05 | % |  | 45,934 | 3.97 | %
Total loans and leases | 122,282 | 6.01 | % |  | 120,561 | 4.12 | %
Securities: |  |  |  |  |
Taxable securities | 56,066 | 3.09 | % |  | 52,218 | 2.86 | %
Tax exempt securities(a) | 1,461 | 3.20 | % |  | 1,128 | 2.72 | %
Other short-term investments | 11,934 | 5.50 | % |  | 12,419 | 0.94 | %
Total interest-earning assets | 191,743 | 5.10 | % |  | 186,326 | 3.54 | %
Cash and due from banks | 2,772 |  |  | 3,093 |
Other assets | 16,169 |  |  | 19,490 |
Allowance for loan and lease losses | (2,258) |  |  | (1,980) |
Total Assets | $208,426 |  |  | $206,929 |
Liabilities |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |
Interest checking deposits | $52,378 | 2.96 | % |  | $45,835 | 0.65 | %
Savings deposits | 20,872 | 0.71 | % |  | 23,445 | 0.14 | %
Money market deposits | 30,943 | 2.15 | % |  | 29,326 | 0.23 | %
Foreign office deposits | 158 | 1.82 | % |  | 170 | 0.74 | %
CDs $250,000 or less | 8,298 | 3.71 | % |  | 2,342 | 0.40 | %
Total interest-bearing core deposits | 112,649 | 2.38 | % |  | 101,118 | 0.40 | %
CDs over $250,000 | 5,332 | 4.74 | % |  | 1,688 | 2.45 | %
Total interest-bearing deposits | 117,981 | 2.48 | % |  | 102,806 | 0.44 | %
Federal funds purchased | 307 | 4.96 | % |  | 381 | 1.69 | %
Securities sold under repurchase agreements | 348 | 1.22 | % |  | 482 | 0.17 | %
FHLB advances | 4,596 | 5.11 | % |  | 3,733 | 2.63 | %
Derivative collateral and other secured borrowings | 100 | 8.24 | % |  | 329 | 2.94 | %
Long-term debt | 14,260 | 5.20 | % |  | 11,893 | 3.50 | %
Total interest-bearing liabilities | 137,592 | 2.86 | % |  | 119,624 | 0.82 | %
Demand deposits | 46,195 |  |  | 60,185 |
Other liabilities | 6,935 |  |  | 8,040 |
Total Liabilities | 190,722 |  |  | 187,849 |
Total Equity | 17,704 |  |  | 19,080 |
Total Liabilities and Equity | $208,426 |  |  | $206,929 |
Ratios: |  |  |  |  |
Net interest margin (FTE)(b) |  | 3.05 | % |  |  | 3.02 | %
Net interest rate spread (FTE)(b) |  | 2.24 | % |  |  | 2.72 | %
Interest-bearing liabilities to interest-earning assets |  | 71.76 | % |  |  | 64.20 | %
(a) Average Yield/Rate of these assets are presented on an FTE basis. |  |  |  |  |
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27.

22

Fifth Third Bancorp and Subsidiaries |  |  |  |  |
Summary of Loans and Leases |  |  |  |  |
$ in millions | For the Three Months Ended
(unaudited) | December | September | June | March | December
| 2023 | 2023 | 2023 | 2023 | 2022
Average Portfolio Loans and Leases |  |  |  |  |
Commercial loans and leases: |  |  |  |  |
Commercial and industrial loans | $54,633 | $57,001 | $58,137 | $58,149 | $57,646
Commercial mortgage loans | 11,338 | 11,216 | 11,373 | 11,121 | 10,898
Commercial construction loans | 5,727 | 5,539 | 5,535 | 5,507 | 5,544
Commercial leases | 2,535 | 2,616 | 2,700 | 2,662 | 2,736
Total commercial loans and leases | 74,233 | 76,372 | 77,745 | 77,439 | 76,824
Consumer loans: |  |  |  |  |
Residential mortgage loans | 17,129 | 17,400 | 17,517 | 17,581 | 17,577
Home equity | 3,905 | 3,897 | 3,937 | 4,005 | 4,024
Indirect secured consumer loans | 15,129 | 15,787 | 16,281 | 16,598 | 16,536
Credit card | 1,829 | 1,808 | 1,783 | 1,780 | 1,795
Other consumer loans | 6,633 | 6,366 | 6,064 | 5,409 | 4,615
Total consumer loans | 44,625 | 45,258 | 45,582 | 45,373 | 44,547
Total average portfolio loans and leases | $118,858 | $121,630 | $123,327 | $122,812 | $121,371
Average Loans and Leases Held for Sale |  |  |  |  |
Commercial loans and leases held for sale | $72 | $17 | $19 | $56 | $84
Consumer loans held for sale | 379 | 619 | 641 | 747 | 1,411
Average loans and leases held for sale | $451 | $636 | $660 | $803 | $1,495
End of Period Portfolio Loans and Leases |  |  |  |  |
Commercial loans and leases: |  |  |  |  |
Commercial and industrial loans | $53,270 | $55,790 | $56,897 | $57,720 | $57,232
Commercial mortgage loans | 11,276 | 11,122 | 11,310 | 11,228 | 11,020
Commercial construction loans | 5,621 | 5,582 | 5,475 | 5,548 | 5,433
Commercial leases | 2,579 | 2,624 | 2,670 | 2,743 | 2,704
Total commercial loans and leases | 72,746 | 75,118 | 76,352 | 77,239 | 76,389
Consumer loans: |  |  |  |  |
Residential mortgage loans | 17,026 | 17,293 | 17,503 | 17,608 | 17,628
Home equity | 3,916 | 3,898 | 3,911 | 3,958 | 4,039
Indirect secured consumer loans | 14,965 | 15,434 | 16,097 | 16,484 | 16,552
Credit card | 1,865 | 1,817 | 1,818 | 1,761 | 1,874
Other consumer loans | 6,716 | 6,528 | 6,210 | 5,807 | 4,998
Total consumer loans | 44,488 | 44,970 | 45,539 | 45,618 | 45,091
Total portfolio loans and leases | $117,234 | $120,088 | $121,891 | $122,857 | $121,480
End of Period Loans and Leases Held for Sale |  |  |  |  |
Commercial loans and leases held for sale | $44 | $81 | $32 | $24 | $73
Consumer loans held for sale | 334 | 533 | 728 | 725 | 934
Loans and leases held for sale | $378 | $614 | $760 | $749 | $1,007
Operating lease equipment | $459 | $480 | $537 | $578 | $627
Loans and Leases Serviced for Others(a) |  |  |  |  |
Commercial and industrial loans | $1,231 | $1,217 | $1,122 | $1,090 | $1,109
Commercial mortgage loans | 655 | 711 | 748 | 696 | 614
Commercial construction loans | 283 | 288 | 260 | 386 | 406
Commercial leases | 703 | 721 | 642 | 588 | 581
Residential mortgage loans | 100,842 | 101,889 | 102,817 | 103,399 | 103,154
Other consumer loans | 804 | 827 | 853 | 881 | 912
Total loans and leases serviced for others | 104,518 | 105,653 | 106,442 | 107,040 | 106,776
Total loans and leases owned or serviced | $222,589 | $226,835 | $229,630 | $231,224 | $229,890

(a)Fifth Third sells certain loans and leases and obtains servicing responsibilities.
23

Fifth Third Bancorp and Subsidiaries |  |  |  |  |  |
Regulatory Capital |  |
$ in millions |  | As of
(unaudited) |  | December | September | June | March | December
|  |  | 2023(a) | 2023 | 2023 | 2023 | 2022
Regulatory Capital(b) |  |  |  |  |  |
CET1 capital |  | $16,800 | $16,510 | $16,100 | $15,727 | $15,670
Additional tier 1 capital |  | 2,116 | 2,116 | 2,116 | 2,116 | 2,116
Tier 1 capital |  | 18,916 | 18,626 | 18,216 | 17,843 | 17,786
Tier 2 capital |  | 3,484 | 3,485 | 3,565 | 3,588 | 3,820
Total regulatory capital |  | $22,400 | $22,111 | $21,781 | $21,431 | $21,606
Risk-weighted assets |  | $163,278 | $168,433 | $169,720 | $169,510 | $168,909
Ratios |  |  |  |  |  |
Average total Bancorp shareholders' equity as a percent of average assets |  | 8.04 | % | 8.30 | % | 8.90 | % | 8.77 | % | 8.18 | %
Regulatory Capital Ratios(b) |  |  |  |  |  |
Fifth Third Bancorp |  |  |  |  |  |
| CET1 capital |  | 10.29 | % | 9.80 | % | 9.49 | % | 9.28 | % | 9.28 | %
| Tier 1 risk-based capital |  | 11.59 | % | 11.06 | % | 10.73 | % | 10.53 | % | 10.53 | %
| Total risk-based capital |  | 13.72 | % | 13.13 | % | 12.83 | % | 12.64 | % | 12.79 | %
| Leverage |  | 8.73 | % | 8.85 | % | 8.81 | % | 8.67 | % | 8.56 | %
Fifth Third Bank, National Association |  |  |  |  |  |
| Tier 1 risk-based capital |  | 12.42 | % | 11.96 | % | 11.25 | % | 11.63 | % | 11.31 | %
| Total risk-based capital |  | 13.85 | % | 13.38 | % | 12.67 | % | 13.05 | % | 12.81 | %
| Leverage |  | 9.37 | % | 9.59 | % | 9.26 | % | 9.62 | % | 9.23 | %

(a)Current period regulatory capital data and ratios are estimated.
(b)Regulatory capital ratios are calculated pursuant to the five-year transition provision option to phase in the effects of CECL on regulatory capital after its adoption on January 1, 2020.
24

Fifth Third Bancorp and Subsidiaries |  |  |  |  |
Summary of Credit Loss Experience |  |  |  |  |
$ in millions | For the Three Months Ended
(unaudited) | December | September | June | March | December
| 2023 | 2023 | 2023 | 2023 | 2022
Average portfolio loans and leases: |  |  |  |  |
Commercial and industrial loans | $54,633 | $57,001 | $58,137 | $58,149 | $57,646
Commercial mortgage loans | 11,338 | 11,216 | 11,373 | 11,121 | 10,898
Commercial construction loans | 5,727 | 5,539 | 5,535 | 5,507 | 5,544
Commercial leases | 2,535 | 2,616 | 2,700 | 2,662 | 2,736
Total commercial loans and leases | 74,233 | 76,372 | 77,745 | 77,439 | 76,824
Residential mortgage loans | 17,129 | 17,400 | 17,517 | 17,581 | 17,577
Home equity | 3,905 | 3,897 | 3,937 | 4,005 | 4,024
Indirect secured consumer loans | 15,129 | 15,787 | 16,281 | 16,598 | 16,536
Credit card | 1,829 | 1,808 | 1,783 | 1,780 | 1,795
Other consumer loans | 6,633 | 6,366 | 6,064 | 5,409 | 4,615
Total consumer loans | 44,625 | 45,258 | 45,582 | 45,373 | 44,547
Total average portfolio loans and leases | $118,858 | $121,630 | $123,327 | $122,812 | $121,371
Losses charged-off: |  |  |  |  |
Commercial and industrial loans | ($30) | ($70) | ($35) | ($32) | ($30)
Commercial mortgage loans | — | — | — | — | —
Commercial construction loans | — | — | — | (1) | —
Commercial leases | — | — | — | — | (6)
Total commercial loans and leases | (30) | (70) | (35) | (33) | (36)
Residential mortgage loans | (1) | (1) | (1) | (1) | (1)
Home equity | (2) | (2) | (2) | (1) | (2)
Indirect secured consumer loans | (35) | (27) | (25) | (23) | (21)
Credit card | (22) | (19) | (21) | (20) | (17)
Other consumer loans | (43) | (39) | (37) | (32) | (26)
Total consumer loans | (103) | (88) | (86) | (77) | (67)
Total losses charged-off | ($133) | ($158) | ($121) | ($110) | ($103)
Recoveries of losses previously charged-off: |  |  |  |  |
Commercial and industrial loans | $2 | $5 | $3 | $2 | $10
Commercial mortgage loans | 3 | — | — | — | —
Commercial construction loans | — | — | — | — | —
Commercial leases | — | 1 | — | — | 1
Total commercial loans and leases | 5 | 6 | 3 | 2 | 11
Residential mortgage loans | 1 | 1 | 1 | 1 | —
Home equity | 2 | 2 | 1 | 1 | 2
Indirect secured consumer loans | 10 | 8 | 9 | 9 | 7
Credit card | 4 | 4 | 5 | 5 | 4
Other consumer loans | 15 | 13 | 12 | 14 | 11
Total consumer loans | 32 | 28 | 28 | 30 | 24
Total recoveries of losses previously charged-off | $37 | $34 | $31 | $32 | $35
Net losses charged-off: |  |  |  |  |
Commercial and industrial loans | ($28) | ($65) | ($32) | ($30) | ($20)
Commercial mortgage loans | 3 | — | — | — | —
Commercial construction loans | — | — | — | (1) | —
Commercial leases | — | 1 | — | — | (5)
Total commercial loans and leases | (25) | (64) | (32) | (31) | (25)
Residential mortgage loans | — | — | — | — | (1)
Home equity | — | — | (1) | — | —
Indirect secured consumer loans | (25) | (19) | (16) | (14) | (14)
Credit card | (18) | (15) | (16) | (15) | (13)
Other consumer loans | (28) | (26) | (25) | (18) | (15)
Total consumer loans | (71) | (60) | (58) | (47) | (43)
Total net losses charged-off | ($96) | ($124) | ($90) | ($78) | ($68)
Net losses charged-off as a percent of average portfolio loans and leases (annualized): |  |  |  |  |
Commercial and industrial loans | 0.20 | % | 0.45 | % | 0.22 | % | 0.21 | % | 0.14 | %
Commercial mortgage loans | (0.10 | %) | — |  | 0.01 | % | 0.01 | % | — |
Commercial construction loans | — |  | — |  | (0.01 | %) | 0.10 | % | — |
Commercial leases | 0.01 | % | (0.08 | %) | (0.03 | %) | (0.04 | %) | 0.70 | %
Total commercial loans and leases | 0.13 | % | 0.34 | % | 0.16 | % | 0.17 | % | 0.13 | %
Residential mortgage loans | (0.01 | %) | — |  | — |  | — |  | 0.01 | %
Home equity | 0.05 | % | 0.03 | % | 0.06 | % | (0.04 | %) | 0.02 | %
Indirect secured consumer loans | 0.64 | % | 0.47 | % | 0.38 | % | 0.34 | % | 0.32 | %
Credit card | 3.90 | % | 3.25 | % | 3.61 | % | 3.43 | % | 2.85 | %
Other consumer loans | 1.77 | % | 1.67 | % | 1.63 | % | 1.41 | % | 1.33 | %
Total consumer loans | 0.64 | % | 0.53 | % | 0.50 | % | 0.42 | % | 0.38 | %
Total net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.32 | % | 0.41 | % | 0.29 | % | 0.26 | % | 0.22 | %

25

Fifth Third Bancorp and Subsidiaries |  |  |  |  |
Asset Quality |  |  |  |  |
$ in millions | For the Three Months Ended
(unaudited) | December | September | June | March | December
|  | 2023 | 2023 | 2023 | 2023 | 2022
Allowance for Credit Losses |  |  |  |  |
Allowance for loan and lease losses, beginning | $2,340 | $2,327 | $2,215 | $2,194 | $2,099
Impact of adoption of ASU 2022-02 | — | — | — | (49) | —
Total net losses charged-off | (96) | (124) | (90) | (78) | (68)
Provision for loan and lease losses | 78 | 137 | 202 | 148 | 163
Allowance for loan and lease losses, ending | $2,322 | $2,340 | $2,327 | $2,215 | $2,194
Reserve for unfunded commitments, beginning | $189 | $207 | $232 | $216 | $199
(Benefit from) provision for the reserve for unfunded commitments | (23) | (18) | (25) | 16 | 17
Reserve for unfunded commitments, ending | $166 | $189 | $207 | $232 | $216
Components of allowance for credit losses: |  |  |  |  |
Allowance for loan and lease losses | $2,322 | $2,340 | $2,327 | $2,215 | $2,194
Reserve for unfunded commitments | 166 | 189 | 207 | 232 | 216
Total allowance for credit losses | $2,488 | $2,529 | $2,534 | $2,447 | $2,410
|  | As of
|  | December | September | June | March | December
|  | 2023 | 2023 | 2023 | 2023 | 2022
Nonperforming Assets and Delinquent Loans |  |  |  |  |
Nonaccrual portfolio loans and leases: |  |  |  |  |
Commercial and industrial loans | $304 | $262 | $322 | $280 | $215
Commercial mortgage loans | 20 | 18 | 22 | 44 | 40
Commercial construction loans | 1 | — | — | 5 | 8
Commercial leases | 1 | 1 | 1 | 5 | —
Residential mortgage loans | 124 | 127 | 137 | 129 | 124
Home equity | 57 | 58 | 61 | 68 | 67
Indirect secured consumer loans | 36 | 31 | 23 | 27 | 29
Credit card | 34 | 32 | 30 | 29 | 27
Other consumer loans | 72 | 41 | 33 | 6 | 5
Total nonaccrual portfolio loans and leases | 649 | 570 | 629 | 593 | 515
Repossessed property | 10 | 11 | 8 | 8 | 6
OREO | 29 | 31 | 24 | 22 | 18
Total nonperforming portfolio loans and leases and OREO | 688 | 612 | 661 | 623 | 539
Nonaccrual loans held for sale | 1 | 6 | 2 | — | —
Total nonperforming assets | $689 | $618 | $663 | $623 | $539
Loans and leases 90 days past due (accrual): |  |  |  |  |
Commercial and industrial loans | $8 | $3 | $6 | $17 | $11
Commercial mortgage loans | — | — | 20 | — | —
Commercial leases | — | — | — | — | 2
Total commercial loans and leases | 8 | 3 | 26 | 17 | 13
Residential mortgage loans(c) | 7 | 6 | 7 | 9 | 7
Home equity | — | — | 1 | 1 | 1
Credit card | 21 | 20 | 17 | 18 | 18
Other consumer loans | — | — | — | 1 | 1
Total consumer loans | 28 | 26 | 25 | 29 | 27
Total loans and leases 90 days past due (accrual)(b) | $36 | $29 | $51 | $46 | $40
Ratios |  |  |  |  |
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.32 | % | 0.41 | % | 0.29 | % | 0.26 | % | 0.22 | %
Allowance for credit losses: |  |  |  |  |
As a percent of portfolio loans and leases | 2.12 | % | 2.11 | % | 2.08 | % | 1.99 | % | 1.98 | %
As a percent of nonperforming portfolio loans and leases(a) | 383 | % | 443 | % | 403 | % | 413 | % | 468 | %
As a percent of nonperforming portfolio assets(a) | 362 | % | 413 | % | 383 | % | 393 | % | 447 | %
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases(a) | 0.55 | % | 0.47 | % | 0.52 | % | 0.48 | % | 0.42 | %
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a) | 0.59 | % | 0.51 | % | 0.54 | % | 0.51 | % | 0.44 | %
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property | 0.59 | % | 0.51 | % | 0.54 | % | 0.50 | % | 0.44 | %
(a) Excludes nonaccrual loans held for sale.
(b) Excludes loans held for sale.
(c) Excludes government guaranteed residential mortgage loans.

26

Use of Non-GAAP Financial Measures
In addition to GAAP measures, management considers various non-GAAP measures when evaluating the performance of the business, including: “net interest income (FTE),” “interest income (FTE),” “net interest margin (FTE),” “net interest rate spread (FTE),” “income before income taxes (FTE),” “tangible net income available to common shareholders,” “average tangible common equity,” “return on average tangible common equity,” “tangible common equity (excluding AOCI),” “tangible common equity (including AOCI),” “tangible equity,” “tangible book value per share,” “tangible book value per share (excluding AOCI),” “adjusted noninterest income,” “noninterest income excluding certain items,” “adjusted noninterest expense,” “noninterest expense excluding certain items,” “pre-provision net revenue,” “adjusted efficiency ratio,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” “adjusted return on average tangible common equity, excluding accumulated other comprehensive income", “adjusted pre-provision net revenue,” “adjusted return on average assets,” “efficiency ratio (FTE),” “total revenue (FTE),” “noninterest income as a percent of total revenue”, and certain ratios derived from these measures. The Bancorp believes these non-GAAP measures provide useful information to investors because these are among the measures used by the Fifth Third management team to evaluate operating performance and to make day-to-day operating decisions.
The FTE basis adjusts for the tax-favored status of income from certain loans and securities held by the Bancorp that are not taxable for federal income tax purposes. The Bancorp believes this presentation to be the preferred industry measurement of net interest income and net interest margin as it provides a relevant comparison between taxable and non-taxable amounts.
The Bancorp believes tangible net income available to common shareholders, average tangible common equity, tangible common equity (excluding AOCI), tangible common equity (including AOCI), tangible equity, tangible book value per share and return on average tangible common equity are important measures for evaluating the performance of the business without the impacts of intangible items, whether acquired or created internally, in a manner comparable to other companies in the industry who present similar measures.
The Bancorp believes noninterest income, noninterest expense, net interest income, net interest margin, pre-provision net revenue, efficiency ratio, noninterest income as a percent of total revenue, return on average common equity, return on average tangible common equity, and return on average assets are important measures that adjust for significant, unusual, or large transactions that may occur in a reporting period which management does not consider indicative of ongoing financial performance and enhances comparability of results with prior periods.
The Bancorp believes noninterest income excluding certain items and noninterest expense excluding certain items are important measures that adjust for certain components that are prone to significant period-to-period changes in order to facilitate the explanation of variances in the noninterest income and noninterest expense line items.
Management considers various measures when evaluating capital utilization and adequacy, including the tangible equity and tangible common equity (including and excluding AOCI), in addition to capital ratios defined by U.S. banking agencies. These calculations are intended to complement the capital ratios defined by U.S. banking agencies for both absolute and comparative purposes. These ratios are not formally defined by U.S. GAAP or codified in the federal banking regulations and, therefore, are considered to be non-GAAP financial measures. Management believes that providing the tangible common equity ratio excluding AOCI on certain assets and liabilities enables investors and others to assess the Bancorp’s use of equity without the effects of changes in AOCI, some of which are uncertain; providing the tangible common equity ratio including AOCI enables investors and others to assess the Bancorp’s use of equity if components of AOCI, such as unrealized gains or losses, were to be monetized.
Please note that although non-GAAP financial measures provide useful insight, they should not be considered in isolation or relied upon as a substitute for analysis using GAAP measures.
Please see reconciliations of all historical non-GAAP measures used in this release to the most directly comparable GAAP measures, beginning on the following page.
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| Fifth Third Bancorp and Subsidiaries |  |  |  |  |
| Non-GAAP Reconciliation |  |  |  |  |
| $ and shares in millions | As of and For the Three Months Ended
| (unaudited) | December | September | June | March | December
|  |  | 2023 | 2023 | 2023 | 2023 | 2022
| Net interest income | $1,416 | $1,438 | $1,457 | $1,517 | $1,577
| Add: Taxable equivalent adjustment | 7 | 7 | 6 | 5 | 5
| Net interest income (FTE) (a) | 1,423 | 1,445 | 1,463 | 1,522 | 1,582
| Net interest income (annualized) (b) | 5,618 | 5,705 | 5,844 | 6,152 | 6,257
| Net interest income (FTE) (annualized) (c) | 5,646 | 5,733 | 5,868 | 6,173 | 6,276
| Interest income | 2,648 | 2,529 | 2,370 | 2,213 | 2,075
| Add: Taxable equivalent adjustment | 7 | 7 | 6 | 5 | 5
| Interest income (FTE) | 2,655 | 2,536 | 2,376 | 2,218 | 2,080
| Interest income (FTE) (annualized) (d) | 10,533 | 10,061 | 9,530 | 8,995 | 8,252
| Interest expense (annualized) (e) | 4,888 | 4,328 | 3,662 | 2,823 | 1,976
| Average interest-earning assets (f) | 198,166 | 192,216 | 189,060 | 187,407 | 187,640
| Average interest-bearing liabilities (g) | 146,507 | 139,779 | 134,590 | 129,280 | 126,390
| Net interest margin (b) / (f) | 2.83 | % | 2.97 | % | 3.09 | % | 3.28 | % | 3.33 | %
| Net interest margin (FTE) (c) / (f) | 2.85 | % | 2.98 | % | 3.10 | % | 3.29 | % | 3.35 | %
| Net interest rate spread (FTE) (d) / (f) - (e) / (g) | 1.97 | % | 2.13 | % | 2.32 | % | 2.62 | % | 2.84 | %
| Income before income taxes | $650 | $846 | $775 | $718 | $914
| Add: Taxable equivalent adjustment | 7 | 7 | 6 | 5 | 5
| Income before income taxes (FTE) | 657 | 853 | 781 | 723 | 919
| Net income available to common shareholders | 492 | 623 | 562 | 535 | 699
| Add: Intangible amortization, net of tax | 8 | 8 | 8 | 9 | 10
| Tangible net income available to common shareholders (h) | 500 | 631 | 570 | 544 | 709
| Tangible net income available to common shareholders (annualized) (i) | 1,984 | 2,503 | 2,286 | 2,206 | 2,813
| Average Bancorp shareholders’ equity | 17,201 | 17,305 | 18,344 | 17,977 | 16,857
| Less: | Average preferred stock | (2,116) | (2,116) | (2,116) | (2,116) | (2,116)
|  | Average goodwill | (4,919) | (4,919) | (4,919) | (4,915) | (4,925)
|  | Average intangible assets | (130) | (141) | (152) | (163) | (176)
| Average tangible common equity, including AOCI (j) | 10,036 | 10,129 | 11,157 | 10,783 | 9,640
| Less: | Average AOCI | 6,244 | 5,835 | 4,480 | 4,442 | 5,386
| Average tangible common equity, excluding AOCI (k) | 16,280 | 15,964 | 15,637 | 15,225 | 15,026
| Total Bancorp shareholders’ equity | 19,172 | 16,544 | 17,809 | 18,364 | 17,327
| Less: | Preferred stock | (2,116) | (2,116) | (2,116) | (2,116) | (2,116)
|  | Goodwill | (4,919) | (4,919) | (4,919) | (4,915) | (4,915)
|  | Intangible assets | (125) | (136) | (146) | (157) | (169)
| Tangible common equity, including AOCI (l) | 12,012 | 9,373 | 10,628 | 11,176 | 10,127
| Less: | AOCI | 4,487 | 6,839 | 5,166 | 4,245 | 5,110
| Tangible common equity, excluding AOCI (m) | 16,499 | 16,212 | 15,794 | 15,421 | 15,237
| Add: | Preferred stock | 2,116 | 2,116 | 2,116 | 2,116 | 2,116
| Tangible equity (n) | 18,615 | 18,328 | 17,910 | 17,537 | 17,353
| Total assets | 214,574 | 212,967 | 207,276 | 208,657 | 207,452
| Less: | Goodwill | (4,919) | (4,919) | (4,919) | (4,915) | (4,915)
|  | Intangible assets | (125) | (136) | (146) | (157) | (169)
| Tangible assets, including AOCI (o) | 209,530 | 207,912 | 202,211 | 203,585 | 202,368
| Less: | AOCI, before tax | 5,680 | 8,657 | 6,539 | 5,373 | 6,468
| Tangible assets, excluding AOCI (p) | $215,210 | $216,569 | $208,750 | $208,958 | $208,836
| Common shares outstanding (q) | 681 | 681 | 681 | 681 | 683
| Tangible equity (n) / (p) | 8.65 | % | 8.46 | % | 8.58 | % | 8.39 | % | 8.31 | %
| Tangible common equity (excluding AOCI) (m) / (p) | 7.67 | % | 7.49 | % | 7.57 | % | 7.38 | % | 7.30 | %
| Tangible common equity (including AOCI) (l) / (o) | 5.73 | % | 4.51 | % | 5.26 | % | 5.49 | % | 5.00 | %
| Tangible book value per share (including AOCI) (l) / (q) | $17.64 | $13.76 | $15.61 | $16.41 | $14.83
| Tangible book value per share (excluding AOCI) (m) / (q) | $24.23 | $23.81 | $23.19 | $22.64 | $22.31

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| Fifth Third Bancorp and Subsidiaries |  |  |  |  |
| Non-GAAP Reconciliation |  |  |  |  |
| $ in millions | For the Three Months Ended
| (unaudited) | December |  | September |  | December
|  |  | 2023 |  | 2023 |  | 2022
| Net income (r) | $530 |  | $660 |  | $737
| Net income (annualized) (s) | 2,103 |  | 2,618 |  | 2,924
| Adjustments (pre-tax items) |  |  |  |  |
|  | FDIC special assessment | 224 |  | — |  | —
|  | Valuation of Visa total return swap | 22 |  | 10 |  | 38
|  | Fifth Third Foundation contribution | 15 |  | — |  | —
|  | Restructuring severance expense | 5 |  | — |  | —
|  | Branch impairment charges | — |  | — |  | 6
| Adjustments, after-tax (t)(a) | 205 |  | 8 |  | 34
| Adjustments (tax related items) |  |  |  |  |
|  | Tax benefit associated with resolution of certain acquisition related tax matters | (17) |  | — |  | (15)
| Adjustments (tax related items) (u) | (17) |  | — |  | (15)
| Noninterest income (v) | 744 |  | 715 |  | 735
|  | Valuation of Visa total return swap | 22 |  | 10 |  | 38
|  | Branch impairment charges | — |  | — |  | 6
| Adjusted noninterest income (w) | 766 |  | 725 |  | 779
| Noninterest expense (x) | 1,455 |  | 1,188 |  | 1,218
|  | FDIC special assessment | (224) |  | — |  | —
|  | Fifth Third Foundation contribution | (15) |  | — |  | —
|  | Restructuring severance expense | (5) |  | — |  | —
| Adjusted noninterest expense (y) | 1,211 |  | 1,188 |  | 1,218
| Adjusted net income (r) + (t) + (u) | 718 |  | 668 |  | 756
| Adjusted net income (annualized) (z) | 2,849 |  | 2,650 |  | 2,999
| Adjusted tangible net income available to common shareholders (h) + (t) + (u) | 688 |  | 639 |  | 728
| Adjusted tangible net income available to common shareholders (annualized) (aa) | 2,730 |  | 2,535 |  | 2,888
| Average assets (ab) | $214,057 |  | $208,385 |  | $206,017
| Return on average tangible common equity (i) / (j) | 19.8 | % |  | 24.7 | % |  | 29.2 | %
| Return on average tangible common equity excluding AOCI (i) / (k) | 12.2 | % |  | 15.7 | % |  | 18.7 | %
| Adjusted return on average tangible common equity, including AOCI (aa) / (j) | 27.2 | % |  | 25.0 | % |  | 30.0 | %
| Adjusted return on average tangible common equity, excluding AOCI (aa) / (k) | 16.8 | % |  | 15.9 | % |  | 19.2 | %
| Return on average assets (s) / (ab) | 0.98 | % |  | 1.26 | % |  | 1.42 | %
| Adjusted return on average assets (z) / (ab) | 1.33 | % |  | 1.27 | % |  | 1.46 | %
| Efficiency ratio (FTE) (x) / [(a) + (v)] | 67.2 | % |  | 55.0 | % |  | 52.6 | %
| Adjusted efficiency ratio (y) / [(a) + (w)] | 55.3 | % |  | 54.7 | % |  | 51.6 | %
| Total revenue (FTE) (a) + (v) | $2,167 |  | $2,160 |  | $2,317
| Adjusted total revenue (FTE) (a) + (w) | $2,189 |  | $2,170 |  | $2,361
| Pre-provision net revenue (PPNR) (a) + (v) - (x) | $712 |  | $972 |  | $1,099
| Adjusted pre-provision net revenue (PPNR) (a) + (w) - (y) | $978 |  | $982 |  | $1,143
| Totals may not foot due to rounding; (a) Assumes a 23% tax rate

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Fifth Third Bancorp and Subsidiaries |  |  |  |  |  |
Segment Presentation |  |  |  |  |  |
$ in millions |  |  |  |  |  |
(unaudited) |  |  |  |  |  |
For the three months ended December 31, 2023 | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | Other/ Eliminations | Total |
Net interest income (FTE)(a) | $812 | $1,190 | $66 | $(645) | $1,423 |
(Provision for) benefit from credit losses | 25 | (81) | — | 1 | (55) |
Net interest income after (provision for) benefit from credit losses | 837 | 1,109 | 66 | (644) | 1,368 |
Noninterest income | 332 | 284 | 140 | (12) | 744 |
Noninterest expense | (488) | (614) | (139) | (214) | (1,455) |
Income (loss) before income taxes | 681 | 779 | 67 | (870) | 657 |
Applicable income tax (expense) benefit(a) | (129) | (164) | (15) | 181 | (127) |
Net income (loss) | $552 | $615 | $52 | $(689) | $530 |
For the three months ended September 30, 2023 | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | Other/ Eliminations | Total |
Net interest income (FTE)(a) | $1,012 | $1,390 | $98 | $(1,055) | $1,445 |
Provision for credit losses | — | (105) | (1) | (13) | (119) |
Net interest income after provision for credit losses | 1,012 | 1,285 | 97 | (1,068) | 1,326 |
Noninterest income | 353 | 274 | 139 | (51) | 715 |
Noninterest expense | (478) | (624) | (135) | 49 | (1,188) |
Income (loss) before income taxes | 887 | 935 | 101 | (1,070) | 853 |
Applicable income tax (expense) benefit(a) | (169) | (196) | (22) | 194 | (193) |
Net income (loss) | $718 | $739 | $79 | $(876) | $660 |
For the three months ended June 30, 2023 | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | Other/ Eliminations | Total |
Net interest income (FTE)(a) | $1,025 | $1,370 | $95 | $(1,027) | $1,463 |
(Provision for) benefit from credit losses | 9 | (65) | — | (121) | (177) |
Net interest income after (provision for) benefit from credit losses | 1,034 | 1,305 | 95 | (1,148) | 1,286 |
Noninterest income | 336 | 271 | 137 | (18) | 726 |
Noninterest expense | (486) | (632) | (139) | 26 | (1,231) |
Income (loss) before income taxes | 884 | 944 | 93 | (1,140) | 781 |
Applicable income tax (expense) benefit(a) | (173) | (198) | (20) | 211 | (180) |
Net income (loss) | $711 | $746 | $73 | $(929) | $601 |
For the three months ended March 31, 2023 | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | Other/ Eliminations | Total |
Net interest income (FTE)(a) | $980 | $1,257 | $101 | $(816) | $1,522 |
Provision for credit losses | (46) | (51) | — | (67) | (164) |
Net interest income after provision for credit losses | 934 | 1,206 | 101 | (883) | 1,358 |
Noninterest income | 336 | 273 | 138 | (51) | 696 |
Noninterest expense | (551) | (645) | (146) | 11 | (1,331) |
Income (loss) before income taxes | 719 | 834 | 93 | (923) | 723 |
Applicable income tax (expense) benefit(a) | (139) | (175) | (19) | 168 | (165) |
Net income (loss) | $580 | $659 | $74 | $(755) | $558 |
For the three months ended December 31, 2022 | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | Other/ Eliminations | Total |
Net interest income (FTE)(a) | $876 | $1,151 | $94 | $(539) | $1,582 |
(Provision for) benefit from credit losses | 11 | (46) | — | (145) | (180) |
Net interest income after (provision for) benefit from credit losses | 887 | 1,105 | 94 | (684) | 1,402 |
Noninterest income | 349 | 268 | 133 | (15) | 735 |
Noninterest expense | (464) | (602) | (134) | (18) | (1,218) |
Income (loss) before income taxes | 772 | 771 | 93 | (717) | 919 |
Applicable income tax (expense) benefit(a) | (150) | (162) | (19) | 149 | (182) |
Net income (loss) | $622 | $609 | $74 | $(568) | $737 |
(a) Includes taxable equivalent adjustments of $7 million for the three months ended December 31, 2023 and September 30, 2023, $6 million for the three months ended June 30, 2023 and $5 million for the three months ended March 31, 2023 and December 31, 2022. |

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