Fifth Third Bank 2012 Annual Report Download - page 5

2012 ANNUAL REPORT | 3
* Non-GAAP measure. For further information, see the Non-GAAP Financial Measures section of MD&A.
Customer feedback has been positive and adoption
rates of these services continue to increase. We are
competitive with others in the industry with our
mobile oerings and we will continue to expand and
dierentiate our distribution channels.
Although consumers increasingly select self-
service transactions, our physical presence via bank-
ing centers and employees is a critical component of
our ability to deliver value-added services. When we
talk about building trust and relationships with our
customers, the responsibility starts with management
and ultimately rests with our employees, the face of
our Company. We have the right people at Fih ird
to make it happen. Our workforce is energetic, smart,
curious and engaged. We demonstrated continued
improvement on our employee engagement scores
as measured by Gallup, which increased nearly 20
percent from 2005 when we started measuring en-
gagement, and are now in the top quartile of Gallup’s
employee engagement database. is is a signicant
increase and indicates that our eorts are having a
strong impact with employees.
As with employee engagement, our eorts to
simplify our deposit products in 2012 support a
number of changes we have made to become a
more customer-centric organization. In simplifying
product oerings to better serve our Retail customers,
we reduced nearly 40 types of checking and savings
accounts – mostly legacy products accumulated over
time and through acquisitions – to ve core check-
ing and three core savings products. We designed
relationship-based alternatives that t the way
customers prefer to do business with us, and we
simplied our service charges, eliminating certain
daily overdra and early account closure fees, among
others, to make our products even more attractive.
e products introduced and the policy chang-
es made as part of this reconguration were driven
by direct customer feedback. e new product set
streamlines work for our employees and simplies
choices for customers. is approach squarely puts
our customers rst, in concert with our aim to be
the rst choice and trusted advisor for all of our
customers. Early feedback has validated our expec-
tations – that engaging in conversations with our
customers leads to opportunities for deeper bank-
ing relationships. e value of these relationships is
not simply derived from a single product or line of
business, but represents the total opportunity across
the Bank. We have successfully converted customers
in six of our markets and we expect to complete the
roll-out in the rst half of 2013.
I look back on 2012 and see the benets of our
investments, starting with our strategic plan before
the nancial crisis and continuing through it. We
adopted new technologies. We developed strong
market positions and further invested in our broad
product oering. We are on a clear path forward, with
great momentum and the capacity and ability to
continue to improve market shares. We believe that
the dierentiating factors of Fih ird are now, and
in the future will be, recognized in the market. In
2012, Fih ird’s total shareholder return (stock
price plus dividends) increased 23 percent, which
outperformed the S&P Banks index, up 21 percent,
and the broader S&P 500 index, up 16 percent.
SUMMARY OF 2012 RESULTS
Fih ird’s 2012 nancial results reected our
strong competitive position and protable business
model. We reported full year net income available
to common shareholders of $1.5 billion, the highest
since 2005, and pre-provision net revenue* of $2.5
billion. Although the low interest rate environment
and other environmental costs present near-term
challenges, return on assets of 1.3 percent was just
within our long-term target range for a more normal-
ized environment, and return on average common
equity was 11.6 percent, compared with 9.0 percent
for 2011. Our eciency ratio (expenses as a percent-