Fifth Third Bank 2007 Annual Report Download - page 8
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Please find page 8 of the 2007 Fifth Third Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Letter from the President & CEO
In2007,weaveraged24newcardopeningsperbranchper
monthcomparedto14perbranchpermonthin2006.Total
retailcardbalanceswereup52percentonayear-over-year
basis.Whilewehavefocusedongrowingthisproduct,we
alsohavebeencarefultoadheretostrictstandardsinorder
tomitigateourrisksinthisarea.
AsImentionedearlier,ourCustomerExperienceinitiative
hasbeenamajorfocusforourRetailBankingoperation.One
ofthecomponentsofthisefforthasbeentheapplicationof
consistentbrandingandsalesmanagementprocessesacross
allofourafliates.Acustomerconductingbusinessata
bankingcenterinChicagoshouldhavethesameexperience
asacustomerinOrlando,andwehavemadethisareality.
Weincreasedourvaluepropositiontocustomersthrough
ourcontinuedgeographicexpansion,andweintroduced
severalnewretailproductsthatwerefavorablyreceived.
OurnewFifthThirdGoal-SetterSavingsaccountallows
customerstotargetadollaramountandspecicdatefor
reachingtheirtarget,simplifyingtheirday-to-daymoney
management.Inaddition,wesold58,000storedvaluecards
afterintroducinggiftcardcentersintoourbranchnetwork
inlateNovember.
ConsumerLendinghadadifcultyear.Creditconcerns
ledtoasignicantslowdowninproductionratesdueto
decreasedapplicationsandatighterdecision-making
process.Wehaveestablishedregularcreditmeetingsto
assessourunderwritingstandardsandhaveavoidedmany
riskiermortgageproducts,notablysubprimemortgages.
TheInvestmentAdvisorsbusinessproducedasolidyear
underitsnewmanagementteam.FifthThirdPrivateBank–
whichfocusesonafuentclientswith$1millionormorein
investableassets–hadanotherstrongyear.During2007,the
PrivateBankcreatedanewandconsistentstrategyfocused
onbuildinganationalbrand.Thebrokerageplatform
realizedstrongrevenuegrowthandoutstandingbottom-line
resultsfromsuccessfultargetedrecruiting,particularlyinthe
secondhalfoftheyear,increasingthenumberofregistered
representativesfrom268in2006to300attheendof
2007.AndFifthThirdInstitutionalServicesre-engineeredits
internalprocesses,allowingrelationshipmanagerstofocus
moreintimatelyonclientneeds.
WeatFifthThirdaredeeplyawarethatyou,ourshare-
holders,owntheCompany,anditistoyouthatweare
accountable.Thus,weareproudtomaintainamongthe
veryhighestcorporategovernanceratingsintheindustry.
OurCorporateGovernanceQuotient,aspublishedby
InstitutionalShareholderServices,isinthetop10to15
percentofcompaniesintheS&P500andinthetop2
percentofallU.S.banks.
Amongthestepswe’vetakentocreateahigherstandardfor
corporategovernance:
•Wehavepubliclydisclosedgovernanceguidelines
•Independentoutsidedirectorsconstitute12
of15directors(80percent),withanamedlead
independentdirector
•Thenominating,compensationandauditcommittees
arecomprisedsolelyofindependentoutsidedirectors
•Outsidedirectorsmeetregularlywithout
theCEOpresent
•Directorsreceiveasignicantportionoftheir
compensationintheformofequity
•Directorsandexecutivesaresubjecttostock
ownershipguidelines,withmandatoryholding
periodsforrestrictedstockandstockacquired
throughtheexerciseofoptions
•Ourboardis“declassied”–alldirectorsare
electedannually
•Wehaveeliminatedthesuper-majorityvoting
provisioninourCodeofRegulations
•Wehaveno“poisonpill”
Asyouknow,myrstyearasCEOalsomarkstherstyear
forGeorgeA.Schaefer,Jr.–ourformerCEO–aschairman
ofFifthThird.George’swisecounsel–andthatoftherestof
ourboardofdirectors–isagreatsourceofsupportforour
newmanagementteamasweimplementimportantchanges
intheCompany.I’dalsoliketoexpresshowmuchwewill
missJoniHerschede,whoservedonourboardfor16years
andwhopassedawaylastDecember.Joni’scommitmentto
FifthThirdandtothemanycommunityeffortsinwhichshe
wasinvolvedwereatestamenttoherstrongleadershipand
goodheart.
MyrstyearasFifthThird’sCEOhasbeenachallenging
andeventfulone,butIknewitwouldnotbeaneasyyear.
Asweenterour150thyearofoperation,Iammoreexcited
todaythaneveraboutourCompany’sfutureanditsability
toweathersuchchallenges.Ourprogressonourthree-year
strategicplanmakesmecondentthatwewillbeastronger,
morecompetitive,andamoreprotablecompanyaswe
emergefromthiscreditcycle.
President and Chief Executive Ofcer
February2008
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