Earnings Release

Fifth Third Reports Fourth Quarter 2022 Diluted Earnings Per Share of $1.01

Compared to the year-ago quarter, reported revenue increased 16% while expenses increased only 1%

NIM^(a)expanded 13 basis points, and key credit quality metrics remained stable sequentially

Reported results included a negative $0.03 impact from certain items on page 2 of the 4Q22 earnings release

CINCINNATI--(BUSINESS WIRE)--Fifth Third Bank (NASDAQ: FITB):


Key Financial Data										Key Highlights

$ millions for all balance sheet and income statement items										(fourth quarter 2022 except where noted)
	4Q22			3Q22			4Q21			Select Business Highlights: Generated consumer household growth of 2.5% compared to 4Q21 Repurchased shares totaling $100 million Named to Top 25 of America's Most JUST Companies by JUST Capital and CNBC Launched Fifth Third Wealth Advisors, an independent registered investment advisor Select Financial Highlights: ROTCE^(a)of 29.2%; adjusted ROTCE^(a) of 19.2% excl. AOCI PPNR^(a)increased 40% compared to 4Q21 Efficiency ratio^(a)of 52.6%; adjusted efficiency ratio^(a)of 51.6% improved approximately 8 points compared to 4Q21 Net interest income^(a)increased 32% compared to 4Q21 ACL of 1.98%, an increase of 7 bps from 3Q22 (flat excluding Dividend Finance); NPA ratio of 0.44% improved 2 bps compared to 3Q22

Income Statement Data
Net income available to common shareholders	$	699		$	631		$	627
Net interest income (U.S. GAAP)		1,577			1,498			1,197
Net interest income (FTE)^(a)		1,582			1,502			1,200
Noninterest income		735			672			791
Noninterest expense		1,218			1,167			1,206

Per Share Data
Earnings per share, basic	$	1.01		$	0.91		$	0.91
Earnings per share, diluted		1.01			0.91			0.90
Book value per share		22.26			21.30			29.43
Tangible book value per share^(a)		14.83			13.87			22.58

Balance Sheet & Credit Quality
Average portfolio loans and leases	$	121,371		$	119,644		$	109,487
Average deposits		161,061			159,469			167,541
Net charge-off ratio^(b)		0.22	%		0.21	%		0.14	%
Nonperforming asset ratio^(c)		0.44			0.46			0.47

Financial Ratios
Return on average assets		1.42	%		1.25	%		1.25	%
Return on average common equity		18.8			14.9			12.2
Return on average tangible common equity^(a)		29.2			21.9			16.1
CET1 capital^(d)(e)		9.27			9.14			9.54
Net interest margin^(a)		3.35			3.22			2.55
Efficiency^(a)		52.6			53.7			60.6
Other than the Quarterly Financial Review tables beginning on page 14 of the 4Q22 earnings release, 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.

CEO Commentary

Fifth Third delivered record operating results in 2022. We generated record revenue and prudently managed expenses throughout the year while continuing to invest in our businesses, which resulted in approximately seven hundred basis points of positive operating leverage for the year.

Our results continue to reflect our disciplined and thoughtful approach throughout the bank. For instance, our key credit quality metrics in both commercial and consumer portfolios remain resilient, reflecting our focus on high-quality relationships and our approach to client selection. Furthermore, strong revenue for the quarter reflects both our balance sheet management discipline as well as the benefits of our fee income diversification.

While economic visibility remains limited, Fifth Third has spent nearly a decade focused on generating sustainable financial results. As we navigate the environment, we will follow our guiding principles of stability, profitability, and growth – in that order.

We were honored to be named to the top 25 among America’s Most Just Companies by JUST Capital and CNBC. This is the only comprehensive ranking that recognizes companies doing right by all stakeholders as defined by the American public. The recognition reflects our longstanding commitment to employees, customers, communities, and shareholders.

-Tim Spence, President and CEO

Income Statement Highlights
($ in millions, except per share data)	For the Three Months Ended							% Change
	December		September		December
	2022		2022		2021			Seq		Yr/Yr
Condensed Statements of Income
Net interest income (NII)^(a)	$	1,582	$	1,502	$	1,200		5	%	32	%
Provision for (benefit from) credit losses		180		158		(47	)	14	%	NM
Noninterest income		735		672		791		9	%	(7	)%
Noninterest expense		1,218		1,167		1,206		4	%	1	%
Income before income taxes^(a)	$	919	$	849	$	832		8	%	10	%

Taxable equivalent adjustment	$	5	$	4	$	3		25	%	67	%
Applicable income tax expense		177		192		167		(8	)	6	%
Net income	$	737	$	653	$	662		13	%	11	%
Dividends on preferred stock		38		22		35		73	%	9	%
Net income available to common shareholders	$	699	$	631	$	627		11	%	11	%
Earnings per share, diluted	$	1.01	$	0.91	$	0.90		11	%	12	%

Fifth Third Bancorp (NASDAQ^®: FITB) today reported fourth quarter 2022 net income of $737 million compared to net income of $653 million in the prior quarter and $662 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $699 million, or $1.01 per diluted share, compared to $631 million, or $0.91 per diluted share, in the prior quarter and $627 million, or $0.90 per diluted share, in the year-ago quarter.


		Diluted earnings per share impact of certain item(s) - 4Q22

		(after-tax impact^(f); $ in millions, except per share data)

		Valuation of Visa total return swap (noninterest income)	$(29)
		Branch impairment charges (noninterest income)	(5)
		Tax benefit associated with resolution of certain acquisition related tax matters	15
		After-tax impact^(f)of certain items	$(19)

		Diluted earnings per share impact of certain item(s)¹	$(0.03)

		¹Diluted earnings per share impact reflects 694.195 million average diluted shares outstanding

Reported full year 2022 net income was $2.4 billion compared to full year 2021 net income of $2.8 billion. Full year 2022 net income available to common shareholders was $2.3 billion, or $3.35 per diluted share, compared to 2021 full year net income available to common shareholders of $2.7 billion, or $3.73 per diluted share.

Net Interest Income
(FTE; $ in millions)^(a)	For the Three Months Ended									% Change
	December			September			December
	2022			2022			2021			Seq		Yr/Yr
Interest Income
Interest income	$	2,080		$	1,764		$	1,297		18	%	60	%
Interest expense		498			262			97		90	%	413	%
Net interest income (NII)	$	1,582		$	1,502		$	1,200		5	%	32	%

Average Yield/Rate Analysis										bps Change
Yield on interest-earning assets		4.40	%		3.78	%		2.75	%	62		165
Rate paid on interest-bearing liabilities		1.56	%		0.87	%		0.33	%	69		123

Ratios
Net interest rate spread		2.84	%		2.91	%		2.42	%	(7	)	42
Net interest margin (NIM)		3.35	%		3.22	%		2.55	%	13		80

Compared to the prior quarter, NII increased $80 million, or 5%, primarily reflecting the net benefit of higher market rates, improved yields on fixed rate consumer loans, and loan growth in commercial and consumer portfolios, partially offset by the deposit mix shift from demand to interest-bearing accounts. Compared to the prior quarter, NIM increased 13 bps, primarily reflecting the net benefit of higher market rates as well as improved yields on fixed rate consumer loans, partially offset by the aforementioned deposit mix shift from demand to interest-bearing accounts.

Compared to the year-ago quarter, NII increased $382 million, or 32%, reflecting the net benefit of higher market rates, as well as growth in C&I loan balances and investment portfolio balances, partially offset by deposit mix shift from demand to interest-bearing accounts and lower PPP-related income. Compared to the year-ago quarter, NIM increased 80 bps, reflecting the net benefit of higher market rates as well as growth in C&I loan balances and investment portfolio balances, partially offset by aforementioned deposit mix shift from demand to interest-bearing accounts.

Noninterest Income
($ in millions)	For the Three Months Ended								% Change
	December		September			December
	2022			2022			2021		Seq		Yr/Yr
Noninterest Income
Service charges on deposits	$	140	$	143		$	156		(2	)%	(10	)%
Commercial banking revenue		158		134			171		18	%	(8	)%
Mortgage banking net revenue		63		69			35		(9	)%	80	%
Wealth and asset management revenue		139		141			150		(1	)%	(7	)%
Card and processing revenue		103		105			104		(2	)%	(1	)%
Leasing business revenue		58		60			74		(3	)%	(22	)%
Other noninterest income		72		59			120		22	%	(40	)%
Securities gains (losses), net		2		(38	)		(19	)	NM		NM
Securities losses, net - non-qualifying hedges
on mortgage servicing rights		—		(1	)		—		(100	)%	NM
Total noninterest income	$	735	$	672		$	791		9	%	(7	)%

Reported noninterest income increased $63 million, or 9%, from the prior quarter, and decreased $56 million, or 7%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including securities gains and losses and impairment charges related to planned branch optimization efforts that will result in approximately 25 closures in the first half of 2023.

Noninterest Income excluding certain items
($ in millions)	For the Three Months Ended
	December			September		December
	2022			2022		2021
Noninterest Income excluding certain items
Noninterest income (U.S. GAAP)	$	735		$	672	$	791
Valuation of Visa total return swap		38			17		19
Branch impairment charges		6			—		—
Securities (gains)/losses, net		(2	)		38		19
Noninterest income excluding certain items^(a)	$	777		$	727	$	829

Compared to the prior quarter, noninterest income excluding certain items increased $50 million, or 7%. Compared to the year-ago quarter, noninterest income excluding certain items decreased $52 million, or 6%.

Compared to the prior quarter, service charges on deposits decreased $3 million, or 2%, reflecting the market related impact of higher earnings credits. Commercial banking revenue increased $24 million, or 18%, reflecting higher M&A advisory revenue, client financial risk management revenue, and fixed income sales and trading revenue. Mortgage banking net revenue decreased $6 million, or 9%, primarily reflecting a $6 million decrease in origination fees and gain on loan sales. Wealth and asset management revenue decreased $2 million, or 1%, primarily driven by decreased brokerage fee revenue. Card and processing revenue decreased 2% driven by higher rewards. Leasing business revenue decreased $2 million, or 3%, primarily reflecting lower lease remarketing revenue. Other noninterest income results were driven by the recognition of tax receivable agreement revenue of $46 million in the current quarter. Private equity income of approximately $14 million was stable compared to the prior quarter.

Compared to the year-ago quarter, service charges on deposits decreased $16 million, or 10%, reflecting the market related impact of higher earnings credits and the elimination of consumer non-sufficient funds fees in July 2022. Commercial banking revenue decreased $13 million, or 8%, primarily driven by decreases in M&A advisory revenue, loan syndication revenue, and corporate bond fees, partially offset by an increase in client financial risk management revenue. Mortgage banking net revenue increased $28 million, or 80%, reflecting a $27 million decrease in MSR asset decay, a $12 million increase in mortgage servicing revenue, and an $8 million increase from MSR net valuation adjustments, partially offset by a $19 million decrease in origination fees and gains on loan sales. Wealth and asset management revenue decreased $11 million, or 7%, primarily reflecting lower personal asset management revenue impacted by market valuations. Card and processing revenue decreased $1 million, or 1%, driven by higher rewards partially offset by higher spend volumes. Leasing business revenue decreased $16 million, or 22%, reflecting the disposition of LaSalle Solutions in early 2022 and a decrease in lease remarketing revenue. The decrease in other noninterest income was primarily attributable to lower private equity income.

Noninterest Expense
($ in millions)	For the Three Months Ended						% Change
	December		September		December
	2022		2022		2021		Seq		Yr/Yr
Noninterest Expense
Compensation and benefits	$	655	$	605	$	655	8	%	—
Net occupancy expense		82		74		77	11	%	6	%
Technology and communications		111		106		103	5	%	8	%
Equipment expense		37		36		36	3	%	3	%
Card and processing expense		21		21		19	—		11	%
Leasing business expense		36		33		36	9	%	—
Marketing expense		31		35		35	(11	)%	(11	)%
Other noninterest expense		245		257		245	(5	)%	—
Total noninterest expense	$	1,218	$	1,167	$	1,206	4	%	1	%

Compared to the prior quarter, noninterest expense increased $51 million, or 4%, reflecting higher performance-based compensation expense, net occupancy expense, and technology and communications expense related to continued modernization investments, partially offset by a decrease in marketing expense and other expenses. Noninterest expense in the current quarter included a $6 million expense related to the impact of non-qualified deferred compensation mark-to-market (compared to a $7 million benefit in the prior quarter).

Compared to the year-ago quarter, noninterest expense increased $12 million, or 1%, primarily reflecting an increase in technology and communications expense, net occupancy expense, and expenses associated with Dividend Finance and Provide. This was partially offset by a decrease in marketing expense. Compensation and benefits expense in the fourth quarter of 2021 includes $10 million related to a special COVID staffing bonus to front-line employees.

Average Interest-Earning Assets
($ in millions)	For the Three Months Ended						% Change
	December		September		December
	2022		2022		2021		Seq		Yr/Yr
Average Portfolio Loans and Leases
Commercial loans and leases:
Commercial and industrial loans	$	57,646	$	56,646	$	49,566	2	%	16	%
Commercial mortgage loans		10,898		10,751		10,247	1	%	6	%
Commercial construction loans		5,544		5,557		5,329	—		4	%
Commercial leases		2,736		2,792		3,057	(2	)%	(11	)%
Total commercial loans and leases	$	76,824	$	75,746	$	68,199	1	%	13	%
Consumer loans:
Residential mortgage loans	$	17,577	$	17,617	$	16,188	—		9	%
Home equity		4,024		3,956		4,179	2	%	(4	)%
Indirect secured consumer loans		16,536		16,750		16,345	(1	)%	1	%
Credit card		1,795		1,756		1,739	2	%	3	%
Other consumer loans		4,615		3,819		2,837	21	%	63	%
Total consumer loans	$	44,547	$	43,898	$	41,288	1	%	8	%
Total average portfolio loans and leases	$	121,371	$	119,644	$	109,487	1	%	11	%

Memo:
Average PPP loans	$	158	$	283	$	1,756	(44	)%	(91	)%
Average portfolio commercial and industrial loans - excl. PPP loans	$	57,488	$	56,363	$	47,810	2	%	20	%

Average Loans and Leases Held for Sale
Commercial loans and leases held for sale	$	84	$	3	$	5	NM		NM
Consumer loans held for sale		1,411		2,253		5,298	(37	)%	(73	)%
Total average loans and leases held for sale	$	1,495	$	2,256	$	5,303	(34	)%	(72	)%

Total average loans and leases	$	122,866	$	121,900	$	114,790	1	%	7	%

Securities (taxable and tax-exempt)	$	58,489	$	57,713	$	37,631	1	%	55	%
Other short-term investments		6,285		5,765		34,624	9	%	(82	)%
Total average interest-earning assets	$	187,640	$	185,378	$	187,045	1	%	—

Compared to the prior quarter, total average portfolio loans and leases increased 1%, reflecting an increase in both commercial and consumer portfolios. Average commercial portfolio loans and leases increased 1%, primarily reflecting an increase in commercial and industrial (C&I) and commercial mortgage loan balances. Average consumer portfolio loans increased 1%, reflecting an increase in other consumer loan balances (primarily Dividend Finance) and home equity balances, partially offset by a decrease in indirect secured consumer loan balances.

Compared to the year-ago quarter, total average portfolio loans and leases increased 11%, reflecting an increase in both commercial and consumer portfolios. Average commercial portfolio loans and leases increased 13%, primarily reflecting an increase in C&I loan balances, partially offset by a decrease in commercial lease balances. Average consumer portfolio loans increased 8%, as increases in both other consumer and residential mortgage loan balances were partially offset by a decrease in home equity balances.

Average loans and leases held for sale were $1 billion in the current quarter compared to $2 billion in the prior quarter and $5 billion in the year-ago quarter. Current quarter average loans and leases held for sale were impacted by a decline in residential mortgage balances (primarily from a continued decline in government guaranteed mortgage buyouts).

Average securities (taxable and tax-exempt; amortized cost) of $58 billion in the current quarter increased $1 billion, or 1%, compared to the prior quarter and increased $21 billion, or 55%, compared to the year-ago quarter. Average other short-term investments (including interest-bearing cash) of $6 billion in the current quarter increased $1 billion, or 9%, compared to the prior quarter and decreased $28 billion, or 82%, compared to the year-ago quarter.

Total period-end commercial portfolio loans and leases of $76 billion increased 1% compared to the prior quarter, primarily reflecting an increase in C&I balances. Compared to the year-ago quarter, total period-end commercial portfolio loans increased 9%, primarily reflecting an increase in C&I balances, partially offset by a decrease in commercial lease balances. Period-end commercial revolving line utilization was 37%, compared to 37% in the prior quarter and 33% in the year-ago quarter.

Period-end consumer portfolio loans of $45 billion increased 2% compared to the prior quarter, primarily reflecting an increase in other consumer loan balances (primarily Dividend Finance) and credit card balances, partially offset by a decrease in indirect secured consumer loan balances. Compared to the year-ago quarter, total period-end consumer portfolio loans increased 8%, reflecting an increase in other consumer loan balances and residential mortgage loan balances, partially offset by a decrease in indirect secured consumer loans.

Total period-end securities (taxable and tax-exempt; amortized cost) of $58 billion in the current quarter was stable compared to the prior quarter and increased $20 billion, or 53%, compared to the year-ago quarter. Period-end other short-term investments of $8 billion increased $2 billion, or 27%, compared to the prior quarter and decreased $26 billion, or 76%, compared to the year-ago quarter.

Average Deposits
	($ in millions)	For the Three Months Ended						% Change
		December		September		December
		2022		2022		2021		Seq		Yr/Yr
	Average Deposits
	Demand	$	54,550	$	59,535	$	64,828	(8	)%	(16	)%
	Interest checking		47,801		42,574		47,384	12	%	1	%
	Savings		23,474		23,814		21,702	(1	)%	8	%
	Money market		28,713		29,066		30,566	(1	)%	(6	)%
	Foreign office^(g)		209		206		193	1	%	8	%
	Total transaction deposits	$	154,747	$	155,195	$	164,673	—		(6	)%
	CDs $250,000 or less		2,748		2,048		2,604	34	%	6	%
	Total core deposits	$	157,495	$	157,243	$	167,277	—		(6	)%
	CDs over $250,000		3,566		2,226		264	60	%	NM
	Total average deposits	$	161,061	$	159,469	$	167,541	1	%	(4	)%

Compared to the prior quarter, average core deposits were stable (with balances increasing approximately $0.3 billion), as an increase in commercial deposits was mostly offset by a decline in consumer deposits. Average demand deposits represented 35% of total core deposits in the current quarter, down 3% compared to the prior quarter. Average commercial transaction deposits increased 2% and average consumer transaction deposits decreased 2% compared to the prior quarter. Period end core deposits increased 1% compared to the prior quarter.

Compared to the year-ago quarter, average core deposits decreased 6%, reflecting the deliberate commercial deposit runoff in mid-2022. Average commercial transaction deposits decreased 12% and average consumer transaction deposits were flat compared to the year-ago quarter. Period end core deposits decreased 5% compared to the year-ago quarter.

The period end portfolio loan-to-core deposit ratio was 76% in the current quarter, compared to 75% in the prior quarter and 66% in the year-ago quarter.

Average Wholesale Funding
	($ in millions)	For the Three Months Ended						% Change
		December		September		December
		2022		2022		2021		Seq		Yr/Yr
	Average Wholesale Funding
	CDs over $250,000	$	3,566	$	2,226	$	264	60	%	NM
	Federal funds purchased		264		607		315	(57	)%	(16	)%
	Other short-term borrowings		6,190		7,436		1,000	(17	)%	519	%
	Long-term debt		13,425		11,796		11,697	14	%	15	%
	Total average wholesale funding	$	23,445	$	22,065	$	13,276	6	%	77	%

Compared to the prior quarter, average wholesale funding increased 6%, primarily reflecting $2 billion in long-term debt issued and an increase in jumbo CD balances, partially offset by a decrease in other short-term borrowings (primarily lower FHLB advances).

Compared to the year-ago quarter, average wholesale funding increased 77%, as modest earning asset growth outpaced core deposit balances. The growth in wholesale funding was primarily attributed to increases in other short-term borrowings, jumbo CD balances, and from long-term debt issuances throughout 2022.

Credit Quality Summary
($ in millions)	As of and For the Three Months Ended
	December			September			June			March			December
	2022			2022			2022			2022			2021

Total nonaccrual portfolio loans and leases (NPLs)	$	515		$	522		$	539		$	534		$	498
Repossessed property		6			6			6			5			5
OREO		18			18			14			27			24
Total nonperforming portfolio loans and leases and OREO (NPAs)	$	539		$	546		$	559		$	566		$	527

NPL ratio^(h)		0.42	%		0.44	%		0.45	%		0.46	%		0.44	%
NPA ratio^(c)		0.44	%		0.46	%		0.47	%		0.49	%		0.47	%

Portfolio loans and leases 30-89 days past due (accrual)	$	364		$	335		$	294		$	288		$	254
Portfolio loans and leases 90 days past due (accrual)		40			59			39			50			117

Allowance for loan and lease losses (ALLL), beginning	$	2,099		$	2,014		$	1,908		$	1,892		$	1,954
Total net losses charged-off		(68	)		(62	)		(62	)		(34	)		(38	)
Provision for (benefit from) loan and lease losses		163			147			168			50			(24	)
ALLL, ending	$	2,194		$	2,099		$	2,014		$	1,908		$	1,892

Reserve for unfunded commitments, beginning	$	199		$	188		$	177		$	182		$	205
Provision for (benefit from) the reserve for unfunded commitments		17			11			11			(5	)		(23	)
Reserve for unfunded commitments, ending	$	216		$	199		$	188		$	177		$	182

Total allowance for credit losses (ACL)	$	2,410		$	2,298		$	2,202		$	2,085		$	2,074

ACL ratios:
As a % of portfolio loans and leases		1.98	%		1.91	%		1.85	%		1.80	%		1.85	%
As a % of nonperforming portfolio loans and leases		468	%		440	%		408	%		391	%		416	%
As a % of nonperforming portfolio assets		447	%		420	%		394	%		369	%		394	%

ALLL as a % of portfolio loans and leases		1.81	%		1.75	%		1.70	%		1.65	%		1.69	%

Total losses charged-off	$	(103	)	$	(104	)	$	(90	)	$	(64	)	$	(77	)
Total recoveries of losses previously charged-off		35			42			28			30			39
Total net losses charged-off	$	(68	)	$	(62	)	$	(62	)	$	(34	)	$	(38	)

Net charge-off ratio (NCO ratio)^(b)		0.22	%		0.21	%		0.21	%		0.12	%		0.14	%
Commercial NCO ratio		0.13	%		0.17	%		0.19	%		0.05	%		0.10	%
Consumer NCO ratio		0.38	%		0.28	%		0.24	%		0.25	%		0.21	%

Nonperforming portfolio loans and leases were $515 million in the current quarter, with the resulting NPL ratio of 0.42%. Compared to the prior quarter, NPLs decreased $7 million with the NPL ratio decreasing 2 bps. Compared to the year-ago quarter, NPLs increased $17 million with the NPL ratio decreasing 2 bps.

Nonperforming portfolio assets were $539 million in the current quarter, with the resulting NPA ratio of 0.44%. Compared to the prior quarter, NPAs decreased $7 million with the NPA ratio decreasing 2 bps. Compared to the year-ago quarter, NPAs increased $12 million with the NPA ratio decreasing 3 bps.

The provision for credit losses totaled $180 million in the current quarter. The allowance for credit loss ratio represented 1.98% of total portfolio loans and leases at quarter end, compared with 1.91% for the prior quarter end and 1.85% for the year-ago quarter end. In the current quarter, the allowance for credit losses represented 468% of nonperforming portfolio loans and leases and 447% of nonperforming portfolio assets.

Net charge-offs were $68 million in the current quarter, with the resulting NCO ratio of 0.22%. Compared to the prior quarter, net charge-offs increased $6 million and the NCO ratio increased 1 bp. Compared to the year-ago quarter, net charge-offs increased $30 million and the NCO ratio increased 8 bps, reflecting a normalization from near-historically low net charge-offs in the year-ago quarter.

Capital Position
	As of and For the Three Months Ended
	December		September		June		March		December
	2022		2022		2022		2022		2021
Capital Position
Average total Bancorp shareholders' equity as a % of average assets	8.18	%	9.13	%	9.35	%	10.23	%	10.71	%
Tangible equity^(a)	8.31	%	8.18	%	8.05	%	7.98	%	7.97	%
Tangible common equity (excluding AOCI)^(a)	7.30	%	7.16	%	7.01	%	6.96	%	6.94	%
Tangible common equity (including AOCI)^(a)	5.00	%	4.75	%	5.82	%	6.48	%	7.47	%

Regulatory Capital Ratios^(d)(e)
CET1 capital	9.27	%	9.14	%	8.95	%	9.31	%	9.54	%
Tier 1 risk-based capital	10.52	%	10.40	%	10.23	%	10.63	%	10.91	%
Total risk-based capital	12.78	%	12.64	%	12.47	%	12.93	%	13.42	%
Leverage	8.57	%	8.44	%	8.30	%	8.32	%	8.27	%

The CET1 capital ratio was 9.27%, the tangible common equity to tangible assets ratio was 7.30% excluding AOCI, and 5.00% including AOCI. The Tier 1 risk-based capital ratio was 10.52%, the Total risk-based capital ratio was 12.78%, and the Leverage ratio was 8.57%.

During the fourth quarter of 2022, Fifth Third repurchased approximately $100 million of its outstanding stock, which reduced common shares by approximately 3.1 million at quarter end.

Tax Rate

The effective tax rate for the quarter was 19.4% compared with 22.7% in the prior quarter and 20.1% in the year-ago quarter. The tax rate in the fourth quarter reflects a favorable adjustment of $15 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 of the 4Q22 earnings release.
(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.

FORWARD-LOOKING STATEMENTS

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

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

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

Category: Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20230119005190/en/

Ed Loyd
edgar.loyd@53.com
(513)534-6397

Source: Fifth Third Bank

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