Fifth Third Bank 2010 Annual Report Download - page 8

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FIFTH THIRD BANCORP6
Fifth Third is also committed to helping our
customers stay in their homes, and we continue
to oer many options to help achieve this. We
recognize that finding mutually beneficial solutions
is the best way to operate. We continue to outpace
the industry in permanent modification conversions
in the government’s Home Aordable Modification
Program (HAMP). Of Fifth Third’s portfolio eligible
for HAMP consideration, more than 78 percent
of those trial plans have been converted to
permanent modifications, which is nearly double
the national average. Additionally, Fifth Third has
been providing its “You Have Options” program for
bank-owned mortgages, which oers various loan
modifications based on each customer’s specific
financial situation. We started this program in early
2007, well ahead of the government’s mortgage
modification program, and have seen great success.
We have modified $2.3 billion of these loans since
the inception of the program.
We anticipate steady, modest growth in 2011.
We’re not expecting a double dip recession but
economic activity is not at full capacity. We will
continue to execute on our core growth strategies
that we expect to build value for our shareholders,
particularly as the economy improves.
Looking forward
We have made a number of positive strides over the
course of the year – a return to profitability, proactive
management of our credit portfolio, significant
improvement in our risk management capabilities,
and improved customer satisfaction scores. Many
of these positive outcomes are attributable to
the hard work and dedication of our employees
in a challenging operating environment. We have
maintained the advantages of our strong sales
culture while significantly increasing our focus on
customer satisfaction and employee engagement.
There will likely still be headwinds in 2011, in part
due to the regulatory changes that will continue to
evolve. However, our traditional banking model is
consistent with the objectives of financial reform,
and it is this traditional banking focus that we
expect will position us well for the future. We’ve
endured one of the most trying economic and
banking periods in history and we have made many
dicult decisions that we believe were in the best
long-term interests of our shareholders. We have
made the appropriate investments over time,
without indiscriminate expense cuts, in order to
preserve and increase future revenue opportunities.
Our actions and investments have positioned us
well, and we will continue to focus on enhancing
our performance in the future to enable us to
deliver results and returns that create value to you
as shareholders.
Thank you for your continued support of Fifth Third.
I appreciate your loyalty, especially throughout
the dicult times, and I look forward to taking
advantage of the positive momentum we have
going into 2011.
Sincerely,
Kevin T. Kabat
President and Chief Executive Ocer
February 2011