Fifth Third Bank 2010 Annual Report Download - page 3

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2010 ANNUAL REPORT 1
Dear Shareholders,
Last year marked an important turning point for
Fifth Third, as many of the actions we’ve taken over
the past several years had a direct and positive
impact on our results. Fifth Third took aggressive
action early in the credit cycle and I’m pleased with
the progress we’ve shown through improved credit
trends, continued strong operating metrics and our
strong capital position. We returned to profitability
in early 2010 and have continued to generate
increasing levels of earnings through the remainder
of the year – over $750 million in net income for the
full year. Our return on assets was 0.7 percent in 2010
and 1.2 percent in the most recent quarter, which
demonstrates our progress to normalized levels.
In February 2011, we fully repaid the U.S. Department
of Treasury’s $3.4 billion investment in preferred
stock under its Troubled Asset Relief Program (TARP)
Capital Purchase Program. Since December 2008,
we’ve paid more than $350 million of dividends to
the American taxpayers, who will also benefit from
the disposition of the warrants issued in conjunction
with that investment. We are pleased to close this
chapter in our history and move forward into a
period that we believe will be marked by continued
improvement in results, enhanced shareholder value
and prudent management of our capital.
Getting to where we are today didn’t happen by
chance. We began taking aggressive actions to
position the Company for the coming storm back in
2007, and we have seen and will continue to see the
benefit of those actions. Our story is about more
than aggressively attacking credit issues - it’s about
improving the levels of customer satisfaction and
employee engagement, continuing to invest in our
already strong earnings capacity and deepening
customer relationships through new products and
services. These are part of a strategic plan that,
along with relentless focus on execution, allows us
to chart our future course with confidence.
Our strategic agenda as we move forward is
focused on opportunities in markets where
we are underpenetrated and on continuous
improvement of the customer experience, both of
which aim for deeper customer relationships and
improved retention. This focus contributes to our
overall goal of positioning Fifth Third as a unique
value proposition – a bank with the capabilities,
technology and products of the largest banks in
the country and with the service and local touch
A Message to Our Shareholders
Kevin T. Kabat
President and
Chief Executive Ocer