Fifth Third Bank 2014 Annual Report Download - page 7

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2014 ANNUAL REPORT | 5
activities fell outside of our current risk parameters and
were willing to sacrice near-term earnings for long-
term growth and a less volatile, more consistent earnings
stream over time. For example, in March, we decided
to exit the broker mortgage business given regulatory
concerns and the prevailing market environment at the
time. is business generated a little more than 30 percent
of our mortgage originations in 2013; while it is dicult
to walk away from that kind of contribution, this decision
strengthens our controls and simplies our operations in
mortgage lending. Another decision we made was to end
enrollment of new customers and make changes to the
structure for existing customers in our deposit advance
product. We believe there is a need for a short-term, small-
dollar credit product within the banking industry and
we continue to proactively engage with key stakeholders
to review alternative solutions. We are also taking a
measured approach to lending. We are scaling back in
areas that we don’t believe have a compelling risk/return
prole, like certain segments of commercial lending, and
we have maintained our disciplined pricing methodology
in indirect auto lending.
Even as we scaled back, we increased portfolio loan
balances to $90.1 billion, up 2 percent from 2013, with 4
BRANCH BANKING
A strong Retail Bank is critical to our future. Consumer banking
continues to go through significant transformations. Some of our
changes thus far have been due to strategies we had planned and
executed, especially those geared toward providing consultative
and differentiated service. Others were driven by evolving consumer
behavior and our desire to offer our customers options in line with their
preferences. Amidst all of the changes, our affiliate model continues
to provide a competitive advantage for us. Our local teams are able to
connect with the unique and diverse areas of our footprint to create a
more personal banking experience.
While our banking centers represent the physical manifestation of our
brand in the community, our enhanced online and mobile presence is
becoming an increasingly valued tool for our customers. We will continue
to integrate our delivery channels to bring a consistent experience that
drives efficiencies and revenue opportunities for the Bank.
We are focused on reducing reliance on the aspects of consumer banking
that are exposed to regulation or which present return challenges. We
will benefit from the integrated, multi-channel delivery model that we
made enhancements to throughout this past year. Likewise, our focused
segmentation strategy is helping us to deliver new value propositions
with a fair-value exchange as we continue to emphasize the importance
of our relationship-banking orientation.
2014 HIGHLIGHTS
Total Revenue Average Loans
Average Core
Deposits
Banking Centers
ATMs Online
Banking
Customers
Mobile
Banking
Customers
$2.3
billion
$16.6
billion
$47.9
billion
$1.6
million
1,302
2,638
approximately
900,000