Fifth Third Bank 2012 Annual Report Download - page 17

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
15 Fifth Third Bancorp
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) 2012 2011 2010 2009 2008
Income Statement Data
Net interest income(a) $ 3,613 3,575 3,622 3,373 3,536
Noninterest income 2,999 2,455 2,729 4,782 2,946
Total revenue(a) 6,612 6,030 6,351 8,155 6,482
Provision for loan and lease losses 303 423 1,538 3,543 4,560
Noninterest expense 4,081 3,758 3,855 3,826 4,564
Net income (loss) attributable to Bancorp 1,576 1,297 753 737 (2,113)
Net income (loss) available to common shareholders 1,541 1,094 503 511 (2,180)
Common Share Data
Earnings per share, basic $ 1.69 1.20 0.63 0.73 (3.91)
Earnings per share, diluted 1.66 1.18 0.63 0.67 (3.91)
Cash dividends per common share 0.36 0.28 0.04 0.04 0.75
Book value per share 15.10 13.92 13.06 12.44 13.57
Market value per share 15.20 12.72 14.68 9.75 8.26
Financial Ratios (%)
Return on assets 1.34 %1.15 0.67 0.64 (1.85)
Return on average common equity 11.6 9.0 5.0 5.6 (23.0)
Dividend payout ratio 21.3 23.3 6.3 5.5 NM
A
verage equity as a percent of average assets 11.65 11.41 12.22 11.36 8.78
Tangible common equity(b) 8.83 8.68 7.04 6.45 4.23
Net interest margin(a) 3.55 3.66 3.66 3.32 3.54
Efficiency(a) 61.7 62.3 60.7 46.9 70.4
Credit Quality
Net losses charged off $ 704 1,172 2,328 2,581 2,710
Net losses charged off as a percent of average loans and leases(d) 0.85 %1.49 3.02 3.20 3.23
A
LLL as a percent of portfolio loans and leases 2.16 2.78 3.88 4.88 3.31
A
llowance for credit losses as a percent of portfolio loans and leases(c) 2.37 3.01 4.17 5.27 3.54
Nonperforming assets as a percent of portfolio loans, leases and other
assets, including other real estate owned(d) (e) 1.49 2.23 2.79 4.22 2.38
A
verage Balances
Loans and leases, including held for sale $ 84,822 80,214 79,232 83,391 85,835
Total securities and other short-term investments 16,814 17,468 19,699 18,135 14,045
Total assets 117,614 112,666 112,434 114,856 114,296
Transaction deposits(f) 78,116 72,392 65,662 55,235 52,680
Core deposits(g) 82,422 78,652 76,188 69,338 63,815
W
holesale funding(h) 16,978 16,939 18,917 28,539 36,261
Bancorp shareholders’ equity 13,701 12,851 13,737 13,053 10,038
Regulatory Capital Ratios (%)
Tier I risk-based capital 10.65 %11.91 13.89 13.30 10.59
Total risk-based capital 14.42 16.09 18.08 17.48 14.78
Tier I leverage 10.05 11.10 12.79 12.34 10.27
Tier I common equity(b) 9.51 9.35 7.48 6.99 4.37
(a) Amounts presented on an FTE basis. The FTE adjustment for years ended December 31, 2012 , 2011, 2010, 2009, and 2008 were $18, $18, $18, $19 and $22, respectively.
(b) The 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, other short-term borrowings and long-term debt.