Fifth Third Bank 2011 Annual Report Download - page 17

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Fifth Third Bancorp 15
The following is MD&A of certain significant factors that have affected Fifth Third Bancorp’s (the “Bancorp” or “Fifth Third”) financial
condition and results of operations during the periods included in the Consolidated Financial Statements, which are a part of this filing. Reference
to the Bancorp incorporates the parent holding company and all consolidated subsidiaries.
TABLE 1: SELECTED FINANCIAL DATA
For the years ended December 31 ($ in millions, except for per share data) 2011 2010 2009 2008 2007
Income Statement Data
Net interest income(a) $ 3,575 3,622 3,373 3,536 3,033
Noninterest income 2,455 2,729 4,782 2,946 2,467
Total revenue(a) 6,030 6,351 8,155 6,482 5,500
Provision for loan and lease losses 423 1,538 3,543 4,560 628
Noninterest expense 3,758 3,855 3,826 4,564 3,311
Net income (loss) attributable to Bancorp 1,297 753 737 (2,113) 1,076
Net income (loss) available to common shareholders 1,094 503 511 (2,180) 1,075
Common Share Data
Earnings per share, basic $ 1.20 0.63 0.73 (3.91) 1.99
Earnings per share, diluted 1.18 0.63 0.67 (3.91) 1.98
Cash dividends per common share 0.28 0.04 0.04 0.75 1.70
Book value per share 13.92 13.06 12.44 13.57 17.18
Market value per share 12.72 14.68 9.75 8.26 25.13
Financial Ratios (%)
Return on assets 1.15 %0.67 0.64 (1.85) 1.05
Return on average common equity 9.0 5.0 5.6 (23.0) 11.2
Dividend payout ratio 23.3 6.3 5.5 NM 85.4
A
verage equity as a percent of average assets 11.41 12.22 11.36 8.78 9.35
Tangible common equity(b) 8.68 7.04 6.45 4.23 6.14
Net interest margin(a) 3.66 3.66 3.32 3.54 3.36
Efficiency(a) 62.3 60.7 46.9 70.4 60.2
Credit Quality
Net losses charged off $ 1,172 2,328 2,581 2,710 462
Net losses charged off as a percent of average loans and leases 1.49 %3.02 3.20 3.23 0.61
A
LLL as a percent of loans and leases 2.78 3.88 4.88 3.31 1.17
A
llowance for credit losses as a percent of loans and leases(c) 3.01 4.17 5.27 3.54 1.29
Nonperforming assets as a percent of loans, leases and other
assets, including other real estate owned(d) (e) 2.23 2.79 4.22 2.38 1.25
A
verage Balances
Loans and leases, including held for sale $ 80,214 79,232 83,391 85,835 78,348
Total securities and other short-term investments 17,468 19,699 18,135 14,045 12,034
Total assets 112,666 112,434 114,856 114,296 102,477
Transaction deposits(f) 72,392 65,662 55,235 52,680 50,987
Core deposits(g) 78,652 76,188 69,338 63,815 61,765
W
holesale funding(h) 16,939 18,917 28,539 36,261 27,254
Bancorp shareholders’ equity 12,851 13,737 13,053 10,038 9,583
Regulatory Capital Ratios (%)
Tier I capital 11.91 %13.89 13.30 10.59 7.72
Total risk-based capital 16.09 18.08 17.48 14.78 10.16
Tier I leverage 11.10 12.79 12.34 10.27 8.50
Tier I common equity(b) 9.35 7.48 6.99 4.37 5.72
(a) Amounts presented on an FTE basis. The FTE adjustment for years ended December 31, 2011 , 2010, 2009, 2008, and 2007 were $18, $18, $19, $22 and $24, respectively.
(b) The return on average tangible common equity, tangible common equity and Tier I common equity ratios are non-GAAP measures. For further information, see the Non-GAAP Financial
Measures section of the MD&A.
(c) The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.
(d) Excludes nonaccrual loans held for sale.
(e) The Bancorp modified its nonaccrual policy in 2009 to exclude consumer TDR loans less than 90 days past due as they were performing in accordance with restructuring terms. For comparability
purposes, prior periods were adjusted to reflect this reclassification.
(f) Includes demand, interest checking, savings, money market and foreign office deposits.
(g) Includes transaction deposits plus other time deposits.
(h) Includes certificates $100,000 and over, other deposits, federal funds purchased, short-term borrowings and long-term debt.