Fifth Third Bank 2014 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) 2014 2013 2012 2011 2010
Income Statement Data
Net interest income(a) $3,600 3,581 3,613 3,575 3,622
Noninterest income 2,473 3,227 2,999 2,455 2,729
Total revenue(a) 6,073 6,808 6,612 6,030 6,351
Provision for loan and lease losses 315 229 303 423 1,538
Noninterest expense 3,709 3,961 4,081 3,758 3,855
Net income attributable to Bancorp 1,481 1,836 1,576 1,297 753
Net income available to common shareholders 1,414 1,799 1,541 1,094 503
Common Share Data
Earnings per share, basic $1.68 2.05 1.69 1.20 0.63
Earnings per share, diluted 1.66 2.02 1.66 1.18 0.63
Cash dividends per common share 0.51 0.47 0.36 0.28 0.04
Book value per share 17.35 15.85 15.10 13.92 13.06
Market value per share 20.38 21.03 15.20 12.72 14.68
Financial Ratios (%)
Return on average assets 1.12 %1.48 1.34 1.15 0.67
Return on average common equity 10.0 13.1 11.6 9.0 5.0
Return on average tangible common equity(b) 12.2 16.0 14.3 11.4 7.0
Dividend payout ratio 30.3 22.9 21.3 23.3 6.3
A
verage Total Bancorp shareholders' equity as a percent of average assets 11.59 11.56 11.65 11.41 12.22
Tangible common equity(b) 8.43 8.63 8.83 8.68 7.04
Net interest margin(a) 3.10 3.32 3.55 3.66 3.66
Efficiency(a) 61.1 58.2 61.7 62.3 60.7
Credit Quality
Net losses charged-off $575 501 704 1,172 2,328
Net losses charged-off as a percent of average portfolio loans and leases 0.64 %0.58 0.85 1.49 3.02
A
LLL as a percent of portfolio loans and leases 1.47 1.79 2.16 2.78 3.88
A
llowance for credit losses as a percent of portfolio loans and leases(c) 1.62 1.97 2.37 3.01 4.17
Nonperforming assets as a percent of portfolio loans, leases and other
assets, including other real estate owned(d) 0.82 1.10 1.49 2.23 2.79
A
verage Balances
Loans and leases, including held for sale $ 91,127 89,093 84,822 80,214 79,232
Total securities and other short-term investments 24,866 18,861 16,814 17,468 19,699
Total assets 131,943 123,732 117,614 112,666 112,434
Transaction deposits(e) 89,715 82,915 78,116 72,392 65,662
Core deposits(f) 93,477 86,675 82,422 78,652 76,188
W
holesale funding(g) 19,188 17,797 16,978 16,939 18,917
Bancorp shareholders’ equity 15,290 14,302 13,701 12,851 13,737
Regulatory Capital Ratios (%)
Tier I risk-based capital 10.83 %10.43 10.69 12.00 13.89
Total risk-based capital 14.33 14.17 14.47 16.19 18.08
Tier I leverage 9.66 9.73 10.15 11.25 12.79
Tier I common equity(b) 9.65 9.45 9.54 9.41 7.48
(a) Amounts presented on a FTE basis. The FTE adjustment for the years ended December 31, 2014 , 2013, 2012, 2011 and 2010 was $21, $20, $18, $18 and $18, 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, refer to the Non-GAAP Financial
Measures section of 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) Includes demand, interest checking, savings, money market and foreign office deposits.
(f) Includes transaction deposits plus other time deposits.
(g) Includes certificates $100,000 and over, other deposits, federal funds purchased, other short-term borrowings and long-term debt.