Fifth Third Bank 2013 Annual Report Download - page 55

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
53 Fifth Third Bancorp
BALANCE SHEET ANALYSIS
Loans and Leases
The Bancorp classifies its loans and leases based upon the primary
purpose of the loan. Table 19 summarizes end of period loans and
leases, including loans held for sale and Table 20 summarizes
average total loans and leases, including loans held for sale.
TABLE 19: COMPONENTS OF TOTAL LOANS AND LEASES (INCLUDES HELD FOR SALE)
A
s of December 31 ($ in millions) 2013 2012 2011 2010 2009
Commercial:
Commercial and industrial loans $39,347 36,077 30,828 27,275 25,687
Commercial mortgage loans 8,069 9,116 10,214 10,992 11,936
Commercial construction loans 1,041 707 1,037 2,111 3,871
Commercial leases 3,626 3,549 3,531 3,378 3,535
Subtotal – commercial 52,083 49,449 45,610 43,756 45,029
Consumer:
Residential mortgage loans 13,570 14,873 13,474 10,857 9,846
Home equity 9,246 10,018 10,719 11,513 12,174
A
utomobile loans 11,984 11,972 11,827 10,983 8,995
Credit card 2,294 2,097 1,978 1,896 1,990
Other consumer loans and leases 381 312 364 702 812
Subtotal – consumer 37,475 39,272 38,362 35,951 33,817
Total loans and leases $89,558 88,721 83,972 79,707 78,846
Total portfolio loans and leases (excludes loans held for sale) $88,614 85,782 81,018 77,491 76,779
Loans and leases, including loans held for sale, increased $837
million, or one percent, from December 31, 2012. The increase in
loans and leases from December 31, 2012 was the result of a $2.6
billion, or five percent, increase in commercial loans and leases
partially offset by a $1.8 billion, or five percent, decrease in
consumer loans and leases.
The increase in commercial loans and leases from December
31, 2012 was primarily due to an increase in commercial and
industrial loans and commercial construction loans partially offset
by a decrease in commercial mortgage loans. Commercial and
industrial loans increased $3.3 billion, or nine percent, from
December 31, 2012 and commercial construction loans increased
$334 million, or 47%, from December 31, 2012 as a result of an
increase in new loan origination activity from an increase in demand
due to a strengthening economy and targeted marketing efforts.
Commercial mortgage loans decreased $1.0 billion, or 11%, from
December 31, 2012 due to continued runoff as the level of new
originations was less than the repayments on the current portfolio.
The decrease in consumer loans and leases from December 31,
2012 was primarily due to a decrease in residential mortgage and
home equity loans partially offset by an increase in credit card loans.
Residential mortgage loans decreased $1.3 billion, or nine percent,
from December 31, 2012 primarily due to a decline in loans held for
sale of $2.0 billion from reduced origination volumes driven by
higher mortgage rates. This decline was partially offset by an
increase in portfolio residential mortgage loans which increased
$663 million from December 31, 2012 due to the continued
retention of certain shorter term residential mortgage loans
originated through the Bancorp’s retail branches. Home equity loans
decreased $772 million, or eight percent, from December 31, 2012
as payoffs exceeded new loan production. Credit card loans
increased $197 million, or nine percent, from December 31, 2012
due to an increase in average balances per account and the volume
of new customer accounts.
TABLE 20: COMPONENTS OF AVERAGE TOTAL LOANS AND LEASES (INCLUDES HELD FOR SALE)
For the years ended December 31 ($ in millions) 2013 2012 2011 2010 2009
Commercial:
Commercial and industrial loans $37,770 32,911 28,546 26,334 27,556
Commercial mortgage loans 8,481 9,686 10,447 11,585 12,511
Commercial construction loans 793 835 1,740 3,066 4,638
Commercial leases 3,565 3,502 3,341 3,343 3,543
Subtotal – commercial 50,609 46,934 44,074 44,328 48,248
Consumer:
Residential mortgage loans 14,428 13,370 11,318 9,868 10,886
Home equity 9,554 10,369 11,077 11,996 12,534
A
utomobile loans 12,021 11,849 11,352 10,427 8,807
Credit card 2,121 1,960 1,864 1,870 1,907
Other consumer loans and leases 360 340 529 743 1,009
Subtotal – consumer 38,484 37,888 36,140 34,904 35,143
Total average loans and leases $89,093 84,822 80,214 79,232 83,391
Total average portfolio loans and leases (excludes loans held for sale) $86,950 82,733 78,533 77,045 80,681
Average loans and leases, including held for sale, increased $4.3
billion, or five percent, from December 31, 2012. The increase from
December 31, 2012 was comprised of an increase of $3.7 billion, or
eight percent, in average commercial loans and leases and an
increase of $596 million, or two percent, in average consumer loans
and leases.