Fifth Third Announces 2012 Earnings Per Share of $1.66, Up 41 Percent from 2011

  Fifth Third Announces 2012 Earnings Per Share of $1.66, Up 41 Percent from
  2011

  Fourth quarter earnings per share $0.43, up 30 percent from fourth quarter
                                     2011

  *4Q12 net income available to common shareholders of $390 million, or $0.43
    per diluted share, vs. $354 million, or $0.38 per diluted share, in 3Q12
    and $305 million, or $0.33 per diluted share, in 4Q11. 4Q12 results
    included:

       *$157 million pre-tax gain (~$102 million after-tax, or $0.11 per
         share) on the sale of Vantiv shares
       *$134 million pre-tax expense for debt extinguishment (~$87 million
         after-tax, or $0.09 per share) associated with the termination of
         FHLB debt
       *$19 million pre-tax negative adjustment (~$12 million after-tax, or
         $0.01 per share) on the valuation of the warrant Fifth Third holds in
         Vantiv
       *$15 million pre-tax charge ($10 million after-tax, or $0.01 per
         share) related to valuation of Visa total return swap
       *$29 million (~$19 million after-tax, or $0.02 per share) in charges
         related to an increase in the mortgage representation and warranty
         reserve due to new Freddie Mac guidance for potential 2004-06
         repurchase claims

  *4Q12 return on assets (ROA) of 1.33%; return on average common equity of
    11.5%; return on average tangible common equity** of 14.1%
  *Pre-provision net revenue (PPNR)** of $616 million in 4Q12

       *Net interest income (FTE) of $903 million, down $4 million from 3Q12;
         net interest margin 3.49%; end of period loans up $2.7 billion, or 3
         percent, sequentially
       *Noninterest income of $880 million included $157 million gain on
         Vantiv shares and $37 million charges above
       *Noninterest expense of $1.2 billion included $134 million of debt
         extinguishment costs associated with the termination of FHLB debt as
         well as $26 million in additional expenses resulting from an increase
         in mortgage representation and warranty reserve

  *4Q12 effective tax rate of 26.8% compared with 27.7% in 3Q12
  *Credit trends remain favorable

       *4Q12 net charge-offs of $147 million (0.70% of loans and leases) vs.
         3Q12 NCOs of $156 million and 4Q11 NCOs of $239 million; lowest NCO
         level since 3Q07; 4Q12 provision expense of $76 million compared with
         3Q12 provision of $65 million and 4Q11 provision of $55 million
       *Loan loss allowance declined $71 million sequentially reflecting
         continued improvement in credit trends; allowance to loan ratio of
         2.16%, 144% of nonperforming assets, 180% of nonperforming loans and
         leases, and 3.2 times 4Q12 annualized net charge-offs
       *Total nonperforming assets (NPAs) of $1.3 billion including loans
         held-for-sale (HFS) declined $174 million, or 12%, sequentially; NPAs
         excluding loans HFS of $1.3 billion declined $160 million, or 11%,
         lowest since 4Q07; NPA ratio of 1.49% down 24 bps from 3Q12, NPL
         ratio of 1.19% down 19 bps from 3Q12
       *Total delinquencies (includes loans 30-89 days past due and over 90
         days past due) down 4% sequentially, lowest levels since 2Q04

  *Strong capital ratios*

       *Tier 1 common ratio 9.51%**, down 16 bps sequentially (Basel III pro
         forma estimate of ~8.8%)
       *Tier 1 capital ratio 10.65%, Total capital ratio 14.42%, Leverage
         ratio 10.05%
       *Tangible common equity ratio** of 8.83% excluding unrealized
         gains/losses; 9.10% including them
       *Repurchased ~14 million common shares through share repurchase
         transactions expected to settle in 1Q13 (these transaction are
         expected to further reduce average share count in 1Q13 versus 4Q12 by
         ~5 million shares)

  *Book value per share of $15.10; tangible book value per share** of $12.33
    up 2% from 3Q12 and 10% from 4Q11

* Capital ratios estimated; presented under current U.S. capital regulations.
The pro forma Basel III Tier I common equity ratio is management’s estimate
based upon its current interpretation of the three draft Federal Register
notices proposing enhancements to regulatory capital requirements published in
June 2012. The actual impact to the Bancorp’s Tier I common equity ratio may
change significantly due to revisions to the agencies’ final rules. See pp.
15-16 in Exhibit 99.1 of 8-k filing dated 1/17/13 for more information.

** Non-GAAP measure; see Reg. G reconciliation on page 34 in Exhibit 99.1 of
8-k filing dated 1/17/13.

Business Wire

CINCINNATI -- January 17, 2013

Fifth Third Bancorp (Nasdaq: FITB) today reported full year 2012 net income of
$1.6 billion, up 22 percent from net income of $1.3 billion in 2011. After
preferred dividends, 2012 net income available to common shareholders was $1.5
billion, or $1.66 per diluted share, up 41 percent compared with 2011 net
income available to common shareholders of $1.1 billion, or $1.18 per diluted
share.

Fourth quarter 2012 net income was $399 million, an increase of 10 percent
from net income of $363 million in the third quarter of 2012 and 27 percent
from net income of $314 million in the fourth quarter of 2011. After preferred
dividends, net income available to common shareholders was $390 million, or
$0.43 per diluted share, in the fourth quarter of 2012, compared with $354
million, or $0.38 per diluted share, in the third quarter of 2012, and $305
million, or $0.33 per diluted share, in the fourth quarter of 2011. Earnings
per diluted share increased 13 percent from the third quarter of 2012 and 30
percent from the fourth quarter of 2011.

Fourth quarter 2012 noninterest income included a $157 million gain on the
sale of Vantiv shares; a $19 million negative valuation adjustment on the
Vantiv warrant; and a $15 million charge related to the valuation of the Visa
total return swap. Net gains on investment securities were $2 million. Fourth
quarter noninterest expense included $134 million of debt extinguishment costs
associated with the termination of Federal Home Loan Bank (FHLB) debt and $13
million in charges to increase litigation reserves. Results also included an
additional $29 million of charges to increase the mortgage representation and
warranty reserve due to new Freddie Mac guidance for potential 2004-2006
repurchase claims. Fourth quarter 2012 taxes were reduced by approximately $10
million due to the termination of certain leases.

Third quarter 2012 noninterest income included a $16 million negative
valuation adjustment on the Vantiv warrant; $13 million in gains recognized on
the sale of certain Fifth Third funds; and a $1 million reduction related to
the valuation of the Visa total return swap. Net gains on investment
securities were $2 million. Third quarter noninterest expense included $26
million of debt extinguishment costs associated with the redemption of Fifth
Third Capital Trust V and Fifth Third Capital Trust VI trust preferred
securities (TruPS), a $5 million benefit from the sale of affordable housing
investments, $5 million in charges to increase litigation reserves, and $2
million of expenses associated with the sale of certain Fifth Third funds.
Results also included an additional $24 million of charges associated with the
increase of the mortgage representation and warranty reserve. Fourth quarter
2011 results included a $54 million pre-tax charge to noninterest income
related to the valuation of the Visa total return swap and $10 million in
charges to increase litigation reserves, primarily reserves associated with
bankcard association membership. Fourth quarter 2011 results also included $10
million in positive valuation adjustments on Vantiv puts and warrants and
investment securities gains of $5 million.

Earnings Highlights

              For the Three Months Ended                           % Change
               December  September  June     March    December       
               2012      2012       2012     2012     2011      Seq   Yr/Yr
Earnings ($
in millions)
Net income
attributable   $399       $363        $385      $430      $314       10%    27%
to Bancorp
Net income
available to   $390       $354        $376      $421      $305       10%    28%
common
shareholders
                                                                            
Common Share
Data
Earnings per   0.44       0.39        0.41      0.46      0.33       13%    33%
share, basic
Earnings per
share,         0.43       0.38        0.40      0.45      0.33       13%    30%
diluted
Cash
dividends      0.10       0.10        0.08      0.08      0.08       -      25%
per common
share
                                                                            
Financial
Ratios
Return on
average        1.33%      1.23%       1.32%     1.49%     1.08%      8%     23%
assets
Return on
average        11.5       10.4        11.4      13.1      9.5        11%    21%
common
equity
Return on
average
tangible       14.1       12.8        14.1      16.2      11.9       10%    19%
common
equity
Tier I         10.65      10.85       12.31     12.20     11.91      (2%)   (11%)
capital
Tier I
common         9.51       9.67        9.77      9.64      9.35       (2%)   2%
equity
Net interest   3.49       3.56        3.56      3.61      3.67       (2%)   (5%)
margin (a)
Efficiency     65.2       63.7        59.4      58.3      67.5       2%     (3%)
(a)
                                                                            
Common
shares
outstanding    882,152    897,467     918,913   920,056   919,804    (2%)   (4%)
(in
thousands)
Average
common
shares
outstanding
(in
thousands):
Basic          884,676    904,475     913,541   915,226   914,997    (2%)   (3%)
Diluted        925,585    944,821     954,622   957,416   956,349    (2%)   (3%)
                                                                            

(a) Presented on a fully taxable equivalent basis
The percentages in all of the tables in this earning release are calculated on
actual dollar amounts rather than the rounded dollar amounts.

“Strong fourth quarter earnings of $399 million were highlighted by quality
loan production, fee income growth, and credit improvement,” said Kevin Kabat,
CEO of Fifth Third Bancorp. “Every caption in fee income was up for the
quarter, including mortgage banking revenue up 29 percent and corporate
banking revenue up 13 percent sequentially. Net interest income was consistent
with third quarter results and stronger than expected.

“These quarterly results capped a solidly profitable year in which Fifth Third
generated the second highest level of net income in our Company’s history and
pre-provision net revenue of $2.5 billion. Loans increased nearly $5 billion
on an end of period basis. We produced double-digit growth in commercial and
industrial loans and residential mortgage loan originations due to higher
demand and low interest rates. Average core deposits increased 5 percent with
a continued favorable mix shift to lower cost deposits.

“Credit trends continued to be favorable, with full year net charge-offs down
40 percent from 2011 and nonperforming assets declining 29 percent, both the
lowest levels reported since 2007. At year end, total delinquencies were at
their lowest level since the second quarter of 2004. The improvement in credit
trends resulted in a $400 million reduction in loan loss reserves during the
year, although reserve levels and coverage ratios remain strong at 2.16
percent of loans and 180 percent of nonperforming portfolio loans.

“Pursuant to our capital plan, we increased the return of capital to
shareholders in 2012, with our recent increase of the quarterly common stock
dividend to $0.10 per share and common stock repurchases of approximately $650
million during the year, including $175 million related to Vantiv gains.
Despite these actions, our strong common equity capital ratios increased for
the year. Our capital plan included the potential repurchase of an additional
$125 million in the first quarter of 2013. Given our capacity for internal
capital generation, we would expect to continue to return capital to
shareholders in a responsible manner, absent unforeseen developments.”

Income Statement Highlights

                For the Three Months Ended                       % Change
                 December  September  June   March  December      
                 2012      2012       2012   2012   2011      Seq  Yr/Yr
Condensed
Statements of
Income ($ in
millions)
Net interest
income           $903       $907        $899    $903    $920       -     (2%)
(taxable
equivalent)
Provision for
loan and lease   76         65          71      91      55         17%   38%
losses
Total
noninterest      880        671         678     769     550        31%   60%
income
Total
noninterest     1,163     1,006      937    973    993       16%  17%
expense
Income before
income taxes    544       507        569    608    422       7%   29%
(taxable
equivalent)
                                                                         
Taxable
equivalent       4          4           4       5       4          -     -
adjustment
Applicable      144       139        180    173    104       4%   38%
income taxes
Net income       396        364         385     430     314        9%    26%
Less: Net
income
attributable    (3)       1          -      -      -         NM   NM
to
noncontrolling
interest
Net income
attributable     399        363         385     430     314        10%   27%
to Bancorp
Dividends on
preferred       9         9          9      9      9         -    -
stock
Net income
available to    390       354        376    421    305       10%  28%
common
shareholders
Earnings per     $0.43      $0.38       $0.40   $0.45   $0.33      13%   30%
share, diluted
                                                           

Net Interest Income

                  For the Three Months Ended                           % Change
                   December  September  June     March    December       
                   2012      2012       2012     2012     2011      Seq   Yr/Yr
Interest Income
($ in millions)
Total interest
income (taxable    $1,020     $1,027      $1,031    $1,045    $1,061     (1%)   (4%)
equivalent)
Total interest    117       120        132      142      141       (3%)  (17%)
expense
Net interest
income (taxable   $903      $907       $899     $903     $920      -     (2%)
equivalent)
                                                                                
Average Yield
Yield on
interest-earning   3.94%      4.03%       4.08%     4.18%     4.23%      (2%)   (7%)
assets (taxable
equivalent)
Yield on
interest-bearing  0.65%     0.67%      0.73%    0.79%    0.79%     (3%)  (18%)
liabilities
Net interest
rate spread       3.29%     3.36%      3.35%    3.39%    3.44%     (2%)  (4%)
(taxable
equivalent)
Net interest
margin (taxable    3.49%      3.56%       3.56%     3.61%     3.67%      (2%)   (5%)
equivalent)
                                                                                
Average Balances
($ in millions)
Loans and
leases,            $86,180    $84,829     $84,508   $83,757   $82,278    2%     5%
including held
for sale
Total securities
and other          16,765     16,588      17,168    16,735    17,243     1%     (3%)
short-term
investments
Total
interest-earning   102,945    101,417     101,676   100,492   99,521     2%     3%
assets
Total
interest-bearing   71,420     72,026      73,162    72,219    71,467     (1%)   -
liabilities
Bancorp
shareholders'     13,855    13,887     13,628   13,366   13,147    -     5%
equity
                                                                                

Net interest income of $903 million on a fully taxable equivalent basis
decreased $4 million from the third quarter. The decline in net interest
income was driven by the effect of approximately $10 million in non-recurring
benefits recorded in the third quarter. Otherwise, net interest income
benefited from a decline in interest expense driven by higher demand deposit
balances and continued runoff in consumer CD balances; a $2 million reduction
in long-term debt expense due to the FHLB debt termination in December; and a
$5 million reduction in long-term debt expense due to the full quarter impact
of the TruPS redemption in the third quarter. The benefit of net loan growth
on interest income was offset by a decline in interest income attributable to
loan repricing, primarily in the C&I, auto, and residential mortgage
portfolios, as well as lower reinvestment rates on the securities portfolio.

The net interest margin was 3.49 percent, a decrease of 7 bps from 3.56
percent in the previous quarter. The decline in net interest margin was driven
by the 4 bps benefit in the third quarter from non-recurring items described
above as well as lower loan and securities yields. The margin otherwise
benefited by 2 bps from the full quarter impact of the TruPS redemption in the
third quarter and 1 bp from the FHLB debt termination in December.

Compared with the fourth quarter of 2011, net interest income decreased $17
million and the net interest margin decreased 18 bps, driven by lower asset
yields partially offset by higher average loan balances, run-off in
higher-priced CDs and mix shift to lower cost deposit products.

Securities

Average securities and other short-term investments were $16.8 billion in the
fourth quarter of 2012 compared with $16.6 billion in the previous quarter and
$17.2 billion in the fourth quarter of 2011. The sequential increase in
average balances was related to the pre-investment in the third quarter of
anticipated fourth quarter cash flows. The year-over-year decline was due to
the timing of reinvestment in portfolio cash flows during 2011 as well as
lower cash balances held at the Federal Reserve.

Loans

              For the Three Months Ended                           % Change
               December  September  June     March    December       
               2012      2012       2012     2012     2011      Seq   Yr/Yr
Average
Portfolio
Loans and
Leases ($ in
millions)
Commercial:
Commercial
and            $34,301    $33,111     $32,734   $31,371   $29,891    4%     15%
industrial
loans
Commercial     9,193      9,567       9,810     10,007    10,262     (4%)   (10%)
mortgage
Commercial     686        742         873       992       1,132      (8%)   (39%)
construction
Commercial    3,509     3,481      3,469    3,543    3,351     1%    5%
leases
Subtotal -
commercial    47,689    46,901     46,886   45,913   44,636    2%    7%
loans and
leases
Consumer:
Residential
mortgage       11,846     11,578      11,274    10,828    10,464     2%     13%
loans
Home equity    10,129     10,312      10,430    10,606    10,810     (2%)   (6%)
Automobile     11,944     11,812      11,755    11,882    11,696     1%     2%
loans
Credit card    2,029      1,971       1,915     1,926     1,906      3%     6%
Other
consumer      306       314        326      345      402       (3%)  (24%)
loans and
leases
Subtotal -
consumer      36,254    35,987     35,700   35,587   35,278    1%    3%
loans and
leases
Total
average
loans and
leases         $83,943    $82,888     $82,586   $81,500   $79,914    1%     5%
(excluding
held for
sale)
                                                                            
Average
loans held    2,237     1,941      1,920    2,257    2,364     15%   (5%)
for sale
                                                                            

Average loan and lease balances (excluding loans held-for-sale) increased $1.1
billion, or 1 percent, sequentially and increased $4.0 billion, or 5 percent,
from the fourth quarter of 2011. Period end loan and lease balances (excluding
loans held-for-sale) increased $2.7 billion, or 3 percent, sequentially and
$4.8 billion, or 6 percent, from a year ago.

Average commercial portfolio loan and lease balances were up $788 million, or
2 percent, sequentially and increased $3.1 billion, or 7 percent, from the
fourth quarter of 2011. Average C&I loans increased 4 percent sequentially and
15 percent compared with the fourth quarter of 2011. Average commercial
mortgage and commercial construction loan balances combined declined 4 percent
sequentially and 13 percent from the same period the previous year. 
Commercial line usage, on an end of period basis, was 31 percent of committed
lines in the fourth quarter of 2012 compared with 32 percent in the third
quarter of 2012 and 32 percent in the fourth quarter of 2011.

Average consumer portfolio loan and lease balances increased $267 million, or
1 percent, sequentially and $976 million, or 3 percent, from the fourth
quarter of 2011. Average residential mortgage loans increased 2 percent
sequentially, reflecting strong originations due to continued refinancing
activity associated with historically low interest rates  as well as the
continued retention of certain shorter term residential mortgage loans.
Compared with the fourth quarter of 2011, average residential mortgage loans
increased 13 percent and reflected the retention of these shorter term
residential mortgage loans. Home equity loan balances declined 2 percent
sequentially and 6 percent year-over-year due to lower demand and production.
Average auto loans increased 1 percent sequentially and increased 2 percent
year-over-year.

Average loans held-for-sale balance fluctuations were primarily driven by
changes in residential mortgage held-for-sale balances. Average loans
held-for-sale balances of $2.2 billion increased $296 million sequentially and
decreased $127 million compared with the fourth quarter of 2011, and period
end loans held-for-sale of $2.9 billion increased $1.1 billion from the
previous quarter and decreased $15 million from the fourth quarter of 2011.

Deposits

              For the Three Months Ended                           % Change
               December  September  June     March    December        
               2012      2012       2012     2012     2011      Seq    Yr/Yr
Average
Deposits ($
in millions)
Demand         $29,223    $27,127     $26,351   $26,063   $26,069    8%      12%
deposits
Interest       23,556     22,967      23,548    22,308    19,263     3%      22%
checking
Savings        20,216     21,283      22,143    21,944    21,715     (5%)    (7%)
Money market   6,026      4,776       4,258     4,543     5,255      26%     15%
Foreign       1,174     1,345      1,321    2,277    3,325     (13%)  (65%)
office (a)
Subtotal -
Transaction    80,195     77,498      77,621    77,135    75,627     3%      6%
deposits
Other time    4,094     4,224      4,359    4,551    4,960     (3%)   (17%)
Subtotal -
Core           84,289     81,722      81,980    81,686    80,587     3%      5%
deposits
Certificates
- $100,000     3,084      3,016       3,130     3,178     3,085      2%      -
and over
Other         32        32         23       19       16        (2%)   94%
Total         $87,405   $84,770    $85,133  $84,883  $83,688   3%     4%
deposits
(a) Includes commercial customer Eurodollar sweep balances for which the Bancorp
pays rates comparable to other commercial deposit accounts.


Average core deposits increased $2.6 billion, or 3 percent, sequentially and
increased $3.7 billion, or 5 percent, from the fourth quarter of 2011. Average
transaction deposits, which are included in core deposits, increased $2.7
billion, or 3 percent, from the third quarter of 2012 primarily driven by
higher demand deposits, money market, and interest checking balances,
partially offset by lower savings balances. Year-over-year transaction
deposits increased $4.6 billion, or 6 percent, driven by higher interest
checking, demand deposits, and money market balances, partially offset by
lower foreign office and savings balances. Other time deposits, primarily CDs,
decreased 3 percent sequentially and 17 percent compared with the fourth
quarter of 2011.

Commercial average transaction deposits increased 5 percent sequentially and 8
percent from the previous year. Sequential performance reflected higher demand
deposits and money market balances. Year-over-year growth was primarily driven
by higher inflows to interest checking and demand deposit account balances,
partially offset by lower foreign office balances. Average public funds
balances were $5.0 billion compared with $5.1 billion in the third quarter of
2012 and $5.6 billion in the fourth quarter of 2011.

Consumer average transaction deposits increased 2 percent sequentially and
increased 4 percent from the fourth quarter of 2011. The sequential increase
reflected higher money market, demand deposits, and interest checking
balances, which were partially offset by lower savings balances.
Year-over-year growth was primarily driven by increased interest checking and
demand deposit balances partially offset by lower savings balances. Consumer
CDs included in core deposits declined 3 percent sequentially, driven by
customer reluctance to purchase CDs given the current low rate environment,
and declined 17 percent year-over-year driven by maturities of higher-rate
CDs.

Noninterest Income

                 For the Three Months Ended                      % Change
                  December  September  June  March  December      
                  2012      2012       2012  2012   2011      Seq  Yr/Yr
Noninterest
Income ($ in
millions)
Service charges   $134       $128        $130   $129    $136       5%    (1%)
on deposits
Corporate         114        101         102    97      82         13%   38%
banking revenue
Mortgage
banking net       258        200         183    204     156        29%   65%
revenue
Investment
advisory          93         92          93     96      90         1%    3%
revenue
Card and
processing        66         65          64     59      60         2%    10%
revenue
Other
noninterest       215        78          103    175     24         NM    NM
income
Securities        2          2           3      9       5          -     (60%)
gains, net
Securities
gains (losses),
net -
non-qualifying   (2)       5          -     -      (3)       NM   NM
hedges on
mortgage
servicing
rights
Total
noninterest       $880       $671        $678   $769    $550       31%   60%
income
                                                                         
NM: Not                                                     
Meaningful
                                                                         

Noninterest income of $880 million increased $209 million sequentially, or 31
percent, and increased $330 million, or 60 percent, compared with prior year
results. The sequential and year-over-year increases were both driven by a
$157 million gain from the sale of Vantiv shares and higher mortgage banking
and corporate banking revenue.

Fourth quarter 2012 noninterest income results included a $19 million negative
valuation adjustment on the Vantiv warrant, compared with a $16 million
negative valuation adjustment in the third quarter of 2012 and a $10 million
positive valuation adjustment on the Vantiv warrant and put instruments in the
fourth quarter of 2011. Current quarter’s results also included a $15 million
charge related to the valuation of the total return swap entered into as part
of the 2009 sale of Visa, Inc. Class B shares. Negative valuation adjustments
on this swap were $1 million in the third quarter of 2012 and $54 million in
the fourth quarter of 2011. Third quarter 2012 results also included $13
million in gains recognized on the sale of certain Fifth Third funds.
Excluding these items, the gain from the sale of Vantiv shares, and investment
securities gains in all periods, noninterest income of $755 million increased
$82 million, or 12 percent, from the previous quarter and increased $166
million, or 28 percent, from the fourth quarter of 2011.

Service charges on deposits of $134 million increased 5 percent from the third
quarter and decreased 1 percent compared with the same quarter last year.
Retail service charges grew 10 percent sequentially largely due to a seasonal
increase in consumer overdrafts as well as the initial benefit of the
transition to our new and simplified deposit product offerings. Compared with
the fourth quarter of 2011, retail service charges decreased 11 percent
primarily due to changes in our overdraft policies during 2012. Commercial
service charges increased 2 percent sequentially and 6 percent from a year ago
primarily as a result of higher treasury management fees.

Corporate banking revenue of $114 million increased 13 percent from the third
quarter of 2012 driven by higher syndication fees, business lending fees, and
derivative fees, which benefited from higher activity in anticipation of
changes to tax rules. Corporate banking revenue increased 38 percent from the
same period last year driven by increased syndication fees and business
lending fees as a result our investments in our capital markets and treasury
management capabilities, which are creating more lead opportunities and
increased production.

Mortgage banking net revenue was $258 million in the fourth quarter of 2012, a
29 percent increase from the third quarter of 2012 and a 65 percent increase
from the fourth quarter of 2011. Fourth quarter 2012 originations were $7.0
billion, compared with $5.8 billion in the previous quarter and $7.1 billion
in the fourth quarter of 2011. Fourth quarter 2012 originations resulted in
gains of $239 million on mortgages sold, reflecting higher mortgage sales
revenue partially offset by lower gain on sale margins. This compares with
gains of $226 million during the previous quarter and $152 million during the
fourth quarter of 2011. Mortgage servicing fees this quarter were $64 million,
compared with $62 million in the previous quarter and $58 million in the
fourth quarter of 2011. Mortgage banking net revenue is also affected by net
servicing asset value adjustments, which include mortgage servicing rights
(MSR) amortization and MSR valuation adjustments (including mark-to-market
adjustments on free-standing derivatives used to economically hedge the MSR
portfolio). These net servicing asset valuation adjustments were negative $45
million in the fourth quarter of 2012 (reflecting MSR amortization of $52
million and MSR valuation adjustments of positive $7 million); negative $88
million in the third quarter of 2012 (MSR amortization of $48 million and MSR
valuation adjustments of negative $40 million); and negative $54 million in
the fourth quarter of 2011 (MSR amortization of $47 million and MSR valuation
adjustments of negative $7 million). The mortgage servicing asset, net of the
valuation reserve, was $697 million at quarter end on a servicing portfolio of
$62 billion.

Net losses on securities held as non-qualifying hedges for the MSR portfolio
were $2 million in the fourth quarter of 2012, compared with net gains of $5
million in the third quarter of 2012 and net losses of $3 million in the
fourth quarter of 2011.

Investment advisory revenue of $93 million increased 1 percent sequentially
and increased 3 percent year–over-year, reflecting higher private client
services and institutional trust fees, which benefited from improvement in
equity and bond market values, partially offset by lower mutual fund fees
largely due to the sale of certain Fifth Third funds in the third quarter of
2012.

Card and processing revenue was $66 million in the fourth quarter of 2012, an
increase of 2 percent sequentially and 10 percent from the fourth quarter of
2011, reflecting higher transaction volumes, higher levels of consumer
spending, and new products.

Other noninterest income totaled $215 million in the fourth quarter of 2012,
compared with $78 million in the previous quarter and $24 million in the
fourth quarter of 2011. The growth sequentially and from the fourth quarter of
2011 was primarily driven by the $157 million gain on the sale of Vantiv
shares. Other noninterest income includes effects of the valuation of the
Vantiv warrant and changes in income related to the valuation of the Visa
total return swap. For quarters ending December 31, 2012, September 30, 2012,
and December 31, 2011, the impact of warrant and put option valuation
adjustments were negative $19 million, negative $16 million, and positive $10
million, respectively, and reductions in income related to the Visa total
return swap were $15 million, $1 million, and $54 million, respectively. Third
quarter 2012 results also included $13 million in gains recognized on the sale
of certain Fifth Third funds. Excluding the items detailed above, other
noninterest income of $92 million increased approximately $10 million from the
previous quarter and increased approximately $24 million from the fourth
quarter of 2011.

Net credit-related costs recognized in other noninterest income were $13
million in the fourth quarter of 2012 versus $14 million last quarter and $33
million in the fourth quarter of 2011. Fourth quarter 2012 results included $4
million of net gains on sales of commercial loans held-for-sale and $3 million
of fair value charges on commercial loans held-for-sale, as well as $10
million of losses on other real estate owned (OREO). Third quarter 2012
results included $2 million of net gains on sales of commercial loans
held-for-sale and $3 million of fair value charges on commercial loans
held-for-sale, as well as $11 million of losses on OREO. Fourth quarter 2011
results included $9 million of net gains on sales of commercial loans
held-for-sale, $18 million of fair value charges on commercial loans
held-for-sale, and $22 million of losses on OREO.

Net gains on investment securities were $2 million in the fourth quarter of
2012, compared with investment securities gains of $2 million in the previous
quarter and $5 million in the fourth quarter of 2011.

Noninterest Expense

                For the Three Months Ended                      % Change
                 December  September  June  March  December       
                 2012      2012       2012  2012   2011      Seq   Yr/Yr
Noninterest
Expense ($ in
millions)
Salaries,
wages and        $416       $399        $393   $399    $393       4%     6%
incentives
Employee         96         79          84     112     84         22%    15%
benefits
Net occupancy    76         76          74     77      79         -      (3%)
expense
Technology and   52         49          48     47      48         6%     10%
communications
Equipment        27         28          27     27      27         (2%)   (1%)
expense
Card and
processing       31         30          30     30      28         5%     10%
expense
Other
noninterest     465       345        281   281    334       35%   39%
expense
Total
noninterest     $1,163    $1,006     $937  $973   $993      16%   17%
expense
                                                                         

Noninterest expense of $1.2 billion increased 16 percent from the third
quarter of 2012 and increased 17 percent from the fourth quarter of 2011.
Fourth quarter 2012 expenses included $134 million of debt extinguishment
costs associated with the termination of $1 billion of FHLB debt; $26 million
of additional expenses associated with the increase in the representation and
warranty reserve; and $13 million in charges to increase litigation reserves.
Third quarter 2012 expenses included $26 million of debt extinguishment costs
associated with the redemption of Capital Trust V and Capital Trust VI TruPS;
$22 million of additional expenses associated with the increase in the
mortgage representation and warranty reserve; $5 million in charges to
increase litigation reserves; a $5 million benefit from the sale of affordable
housing investments; and $2 million of costs associated with the sale of
certain Fifth Third funds. Fourth quarter 2011 expenses included $10 million
in charges to increase litigation reserves, primarily related to bankcard
association membership. Excluding these items, noninterest expense of $990
million increased $34 million, or 4 percent, compared with the third quarter
of 2012 and increased $7 million, or 1 percent, compared with the fourth
quarter of 2011. The increase in both periods was largely due to higher
compensation-related expenses, primarily performance incentives, driven by
strong mortgage originations and commercial and corporate banking results. In
addition, the sequential comparison was affected by $6 million of annual
pension settlement expense in the fourth quarter.

Credit costs related to problem assets recorded as noninterest expense totaled
$68 million in the fourth quarter of 2012, compared with $59 million in the
third quarter of 2012 and $44 million in the fourth quarter of 2011. Fourth
quarter credit-related expenses included provisioning for mortgage repurchases
of $44 million, compared with $36 million in the third quarter and $18 million
a year ago. (Realized mortgage repurchase losses were $15 million in the
fourth quarter of 2012, compared with $15 million last quarter and $17 million
in the fourth quarter of 2011.) The increase in mortgage representation and
warranty expense was primarily due to an increase in the reserve as a result
of additional information obtained from Freddie Mac regarding changes to their
selection criteria for future mortgage repurchases and file requests, which
now includes 2004 through 2006 vintages. As such, we were able to better
estimate the losses that are probable on loans sold to Freddie Mac with
representation and warranty provisions. (Freddie Mac loans represent
approximately 56 percent of Fifth Third’s mortgage servicing portfolio.)
Provision for unfunded commitments was an expense of $3 million in the current
quarter, compared with a benefit of $2 million last quarter and a benefit of
$6 million a year ago. Derivative valuation adjustments related to customer
credit risk were positive $2 million, $2 million, and $5 million for this
quarter, last quarter and the year ago quarter, respectively. OREO expense was
$5 million this quarter, compared with $6 million last quarter and $8 million
a year ago. Other problem asset-related expenses were $19 million in the
fourth quarter, compared with $21 million the previous quarter and $28 million
in the same period last year.

Credit Quality

                            For the Three Months Ended
                             December  September  June    March   December
                             2012      2012       2012    2012    2011
Total net losses charged
off ($ in millions)
Commercial and industrial    ($36)      ($29)       ($46)    ($54)    ($62)
loans
Commercial mortgage loans    (17)       (28)        (25)     (30)     (47)
Commercial construction      (4)        (4)         -        (18)     (4)
loans
Commercial leases            1          (1)         (7)      -        -
Residential mortgage loans   (23)       (26)        (36)     (37)     (36)
Home equity                  (34)       (37)        (39)     (46)     (50)
Automobile loans             (9)        (7)         (7)      (9)      (13)
Credit card                  (19)       (18)        (18)     (20)     (21)
Other consumer loans and    (6)       (6)        (3)     (6)     (6)
leases
Total net losses charged     (147)      (156)       (181)    (220)    (239)
off
                                                                      
Total losses                 (177)      (188)       (219)    (253)    (280)
Total recoveries            30        32         38      33      41
Total net losses charged     ($147)     ($156)      ($181)   ($220)   ($239)
off
Ratios (annualized)
Net losses charged off as
a percent of average loans   0.70%      0.75%       0.88%    1.08%    1.19%
and leases (excluding held
for sale)
Commercial                   0.46%      0.53%       0.67%    0.89%    1.00%
Consumer                    1.01%     1.04%      1.15%   1.34%   1.43%
                                                                      

Net charge-offs were $147 million in the fourth quarter of 2012, or 70 bps of
average loans on an annualized basis, the lowest level since the third quarter
of 2007. Net charge-offs declined 6 percent compared with third quarter 2012
net charge-offs of $156 million, and declined 38 percent versus fourth quarter
2011 net charge-offs of $239 million.

Commercial net charge-offs were $56 million, or 46 bps, down $6 million
compared with $62 million, or 53 bps, in the third quarter driven by declines
in commercial mortgage net charge-offs. Commercial net charge-offs were at the
lowest level since the third quarter of 2007. Commercial mortgage net
charge-offs were $17 million, down $11 million from $28 million in the
previous quarter. C&I net charge-offs totaled $36 million, compared with net
losses of $29 million in the previous quarter. Commercial construction net
charge-offs were $4 million in the fourth quarter, or flat compared with the
prior quarter. The homebuilder / developer portfolio now totals $318 million,
down from a peak of $3.3 billion in the second quarter of 2008. We recorded no
material net charge-offs on these loans in the fourth quarter of 2012. This
lending was suspended in 2007 and originations remain extremely limited.

Consumer net charge-offs were $91 million, or 101 bps, down $3 million
sequentially. Net charge-offs on residential mortgage loans in the portfolio
were $23 million, down $3 million from the previous quarter. Home equity net
charge-offs were $34 million, down $3 million from the third quarter. Net
charge-offs on brokered home equity loans represented 35 percent of fourth
quarter home equity losses; such loans are 14 percent of the total home equity
portfolio. The home equity portfolio included $1.3 billion of brokered loans,
down from a peak of $2.6 billion in 2007; originations of these loans were
discontinued in 2007. Net charge-offs in the auto portfolio of $9 million
increased $2 million compared with the prior quarter. Net charge-offs on
consumer credit card loans were $19 million, up $1 million from third quarter.
Net charge-offs in other consumer loans were $6 million, or flat compared with
the previous quarter.

                            For the Three Months Ended
                             December  September  June    March   December
                             2012      2012       2012    2012    2011
Allowance for Credit
Losses ($ in millions)
Allowance for loan and       $1,925     $2,016      $2,126   $2,255   $2,439
lease losses, beginning
Total net losses charged     (147)      (156)       (181)    (220)    (239)
off
Provision for loan and      76        65         71      91      55
lease losses
Allowance for loan and       1,854      1,925       2,016    2,126    2,255
lease losses, ending
                                                                      
Reserve for unfunded         176        178         179      181      187
commitments, beginning
Provision for unfunded      3         (2)        (1)     (2)     (6)
commitments
Reserve for unfunded         179        176         178      179      181
commitments, ending
                                                                      
Components of allowance
for credit losses:
Allowance for loan and       1,854      1,925       2,016    2,126    2,255
lease losses
Reserve for unfunded        179       176        178     179     181
commitments
Total allowance for credit   $2,033     $2,101      $2,194   $2,305   $2,436
losses
Allowance for loan and
lease losses ratio
As a percent of loans and    2.16%      2.32%       2.45%    2.59%    2.78%
leases
As a percent of
nonperforming loans and      180%       167%        150%     157%     157%
leases (a)
As a percent of              144%       133%        125%     127%     124%
nonperforming assets (a)
                                                                      
(a) Excludes non accrual
loans and leases in loans
held for sale
                                                            

Provision for loan and lease losses totaled $76 million in the fourth quarter
of 2012, up $11 million from the third quarter of 2012 and up $21 million from
the fourth quarter of 2011. The allowance for loan and lease losses declined
$71 million sequentially reflecting continued improvement in credit trends.
This allowance represented 2.16 percent of total loans and leases outstanding
as of quarter end, compared with 2.32 percent last quarter, and represented
180 percent of nonperforming loans and leases, 144 percent of nonperforming
assets, and 317 percent of fourth quarter annualized net charge-offs.

                                                 As of          
                             December   September   June     March    December
Nonperforming Assets and
Delinquent Loans ($ in       2012      2012       2012    2012    2011
millions)
Nonaccrual portfolio loans
and leases:
Commercial and industrial    $234       $309        $377     $358     $408
loans
Commercial mortgage loans    215        263         357      347      358
Commercial construction      70         76          99       118      123
loans
Commercial leases            1          5           3        8        9
Residential mortgage loans   114        126         135      135      134
Home equity                  30         29          30       26       25
Automobile loans             -          -           1        1        -
Other consumer loans and    1         -          -       1       1
leases
Total nonaccrual loans and   $665       $808        $1,002   $994     $1,058
leases
Restructured loans and
leases - commercial          177        153         147      157      160
(nonaccrual)
Restructured loans and
leases - consumer           187       192        193     201     220
(nonaccrual)
Total nonperforming loans    $1,029     $1,153      $1,342   $1,352   $1,438
and leases
Repossessed personal         8          10          9        8        14
property
Other real estate owned     249       283        268     313     364
(a)
Total nonperforming assets   $1,286     $1,446      $1,619   $1,673   $1,816
(b)
Nonaccrual loans held for    25         38          55       110      131
sale
Restructured loans -
commercial (nonaccrual)     4         5          5       7       7
held for sale
Total nonperforming assets
including loans held for    $1,315    $1,489     $1,679  $1,790  $1,954
sale
                                                                      
Restructured Consumer        $1,655     $1,641      $1,634   $1,624   $1,612
loans and leases (accrual)
Restructured Commercial      $431       $442        $455     $481     $390
loans and leases (accrual)
                                                                      
Total loans and leases 90    $195       $201        $203     $216     $200
days past due
Nonperforming loans and
leases as a percent of
portfolio loans, leases      1.19%      1.38%       1.62%    1.64%    1.76%
and other assets,
including other real
estate owned (b)
Nonperforming assets as a
percent of portfolio
loans, leases and other      1.49%      1.73%       1.96%    2.03%    2.23%
assets, including other
real estate owned (b)
                                                                      
(a) Excludes government
insured advances.
(b) Does not include
nonaccrual loans                                             
held-for-sale.

Total nonperforming assets, including loans held-for-sale, were $1.3 billion,
a decline of $174 million, or 12 percent, from the previous quarter.
Nonperforming assets held-for-investment (NPAs) were $1.3 billion or 1.49
percent of total loans, leases and OREO, and decreased $160 million, or 11
percent, from the previous quarter. Nonperforming loans held-for-investment
(NPLs) at quarter end were $1.0 billion or 1.19 percent of total loans, leases
and OREO, and decreased $124 million, or 11 percent, from the previous
quarter.

Commercial portfolio NPAs were $883 million, or 1.78 percent of commercial
loans, leases and OREO, and decreased $134 million, or 13 percent, from the
third quarter. Commercial portfolio NPLs were $697 million, or 1.41 percent of
commercial loans and leases, and decreased $109 million from last quarter
driven by declines in C&I and commercial mortgage NPLs. C&I portfolio NPAs of
$352 million decreased $55 million from the previous quarter. Commercial
mortgage portfolio NPAs were $434 million, down $55 million from the prior
quarter. Commercial construction portfolio NPAs were $88 million, a decline of
$23 million from the previous quarter. Commercial real estate loans in
Michigan and Florida represented 46 percent of commercial real estate NPAs and
37 percent of our total commercial real estate portfolio. Within the overall
commercial loan portfolio, residential real estate builder and developer
portfolio NPAs of $88 million declined $16 million from the third quarter, of
which $26 million were commercial construction assets, $51 million were
commercial mortgage assets and $11 million were C&I assets. Commercial
portfolio NPAs included $177 million of nonaccrual troubled debt
restructurings (TDRs), compared with $153 million last quarter.

Consumer portfolio NPAs of $403 million, or 1.10 percent of consumer loans,
leases and OREO, decreased $26 million from the third quarter. Consumer
portfolio NPLs were $332 million, or 0.91 percent of consumer loans and leases
and decreased $15 million from last quarter. Of consumer NPAs, $352 million
were in residential real estate portfolios. Residential mortgage NPAs were
$290 million, $28 million lower than last quarter, with Florida representing
47 percent of residential mortgage NPAs and 14 percent of total residential
mortgage loans. Home equity NPAs of $62 million were flat compared with last
quarter. Credit card NPAs were also flat compared to the previous quarter at
$39 million. Consumer nonaccrual TDRs were $187 million in the fourth quarter
of 2012, compared with $192 million in the third quarter 2012.

Fourth quarter OREO balances included in portfolio NPA balances described
above were $249 million, down $34 million from the third quarter, and included
$186 million in commercial OREO and $63 million in consumer OREO. Repossessed
personal property of $8 million consisted largely of autos.

Loans still accruing over 90 days past due were $195 million, down $6 million,
or 3 percent, from the third quarter of 2012. Commercial balances 90 days past
due of $24 million were up $1 million sequentially. Consumer balances 90 days
past due of $171 million were down $7 million from the previous quarter. Loans
30-89 days past due of $330 million decreased $15 million, or 4 percent, from
the previous quarter. Commercial balances 30-89 days past due of $17 million
were down $7 million sequentially driven by increased payoffs, paydowns, and
renewals and consumer balances 30-89 days past due of $313 million decreased
$8 million from the third quarter, reflecting declines in mortgage.

Commercial nonaccrual loans held-for-sale were $29 million, compared with $43
million at the end of the third quarter. During the quarter, $11 million of
nonaccrual held-for-sale loans were sold; no nonaccrual commercial loans from
the portfolio were transferred to loans held-for-sale, and $1 million of loans
from loans held-for-sale were transferred to OREO. Negative valuation
adjustments of $3 million were recorded on held-for-sale loans and net gains
of $4 million were recorded on loans that were sold or settled during the
quarter.

Capital Position

                            For the Three Months Ended
                             December  September  June    March   December
                             2012      2012       2012    2012    2011
Capital Position
Average shareholders'        11.65%     11.82%      11.58%   11.49%   11.41%
equity to average assets
Tangible equity (a)          9.17%      9.45%       9.50%    9.37%    9.03%
Tangible common equity
(excluding unrealized        8.83%      9.10%       9.15%    9.02%    8.68%
gains/losses) (a)
Tangible common equity
(including unrealized        9.10%      9.45%       9.49%    9.37%    9.04%
gains/losses) (a)
Tangible common equity as
a percent of risk-weighted
assets (excluding            9.57%      9.74%       9.84%    9.71%    9.41%
unrealized gains/losses)
(a) (b)
Regulatory capital ratios:
(c)
Tier I capital               10.65%     10.85%      12.31%   12.20%   11.91%
Total risk-based capital     14.42%     14.76%      16.24%   16.07%   16.09%
Tier I leverage              10.05%     10.09%      11.39%   11.31%   11.10%
Tier I common equity (a)     9.51%      9.67%       9.77%    9.64%    9.35%
Book value per share         15.10      14.84       14.56    14.30    13.92
Tangible book value per      12.33      12.12       11.89    11.64    11.25
share (a)
                                                                      

(a) The tangible equity, tangible common equity, tier I common equity and
tangible book value per share ratios, while not required by accounting
principles generally accepted in the United States of America (U.S. GAAP), are
considered to be critical metrics with which to analyze banks. The ratios have
been included herein to facilitate a greater understanding of the Bancorp's
capital structure and financial condition. See the Regulation G Non-GAAP
Reconciliation table for a reconciliation of these ratios to U.S. GAAP.

(b) Under the banking agencies risk-based capital guidelines, assets and
credit equivalent amounts of derivatives and off-balance sheet exposures are
assigned to broad risk categories. The aggregate dollar amount in each risk
category is multiplied by the associated risk weight of the category. The
resulting weighted values are added together resulting in the Bancorp's total
risk weighted assets.

(c) Current period regulatory capital data ratios are estimated.


Capital ratios remained strong, reflecting growth in retained earnings and
included the impact of share repurchase activity during the quarter. Compared
with the prior quarter, the Tier 1 common equity ratio* decreased 16 bps to
9.51 percent. The tangible common equity to tangible assets ratio* was 8.83
percent (excluding unrealized gains/losses) and 9.10 percent (including
unrealized gains/losses). The Tier 1 capital ratio decreased 20 bps to 10.65
percent. The Total capital ratio decreased 34 bps to 14.42 percent and the
Leverage ratio decreased 4 bps to 10.05 percent. The Tier 1 common capital
ratio was reduced during the quarter by approximately 20 bps due to the
repurchase of $225 million in common shares.

Book value per share at December 31, 2012 was $15.10 and tangible book value
per share* was $12.33, compared with September 30, 2012 book value per share
of $14.84 and tangible book value per share of $12.12.

As previously announced, Fifth Third entered into a share repurchase agreement
with a counterparty on November 6, 2012, whereby Fifth Third would purchase
approximately $125 million of its outstanding common stock. For the quarter,
this transaction reduced Fifth Third’s share count by 7.7 million shares on
the initial transaction date, which had a 4 million impact on average share
count. Fifth Third expects the settlement of the forward contract to occur on
or before February 7, 2013.

In addition, Fifth Third entered into another share repurchase agreement with
a counterparty on December 14, 2012, whereby Fifth Third would purchase
approximately $100 million of its outstanding common stock. For the quarter,
this transaction reduced Fifth Third’s share count by 6.3 million shares on
the initial transaction date, which had a 1 million impact on average share
count. Fifth Third expects the settlement of the forward contract to occur on
or before March 14, 2013. Our annual capital plan included a remaining $125
million in additional potential repurchases through March 31, 2013.

U.S. banking regulators recently proposed new capital rules for U.S. banks as
well as changes to risk-weightings for assets, which implement portions of
rules proposed by international banking regulators known as Basel III and
Basel II. Fifth Third would be subject to the proposed “standardized approach”
for risk-weightings of assets and would be subject to the Market Risk Rule for
trading assets and liabilities. These proposals were presented for public
comment, which regulators are currently studying. We continue to evaluate
these proposals and their potential impact. Our current estimate of the
pro-forma fully phased in Tier I common equity ratio at December 31, 2012
under the proposed capital rules is approximately 8.8%** compared with 9.5%*
as calculated under the existing Basel I capital framework. The primary
drivers of the change from the existing Basel I capital framework to the Basel
III proposal are an increase in Tier I common equity of approximately 40 bps
(primarily from the inclusion of AOCI) which would be more than offset by the
impact of increases in risk-weighted assets (primarily from 1-4 family senior
and junior lien residential mortgages and commitments with an original
maturity of one year or less). The pro forma Tier I common equity ratio
exceeds the proposed minimum Tier I common equity ratio of 7% comprised of a
minimum of 4.5% plus a capital conservation buffer of 2.5%. The pro forma Tier
I common equity ratio does not include the effect of any mitigating actions
the Bancorp may undertake to offset the impact of any final capital rules. As
noted, the proposed rules remain subject to public comment, interpretation,
and change.

Under the Dodd-Frank Act financial reform legislation, TruPS were to be phased
out of Tier 1 capital over three years beginning in 2013. The new regulations
proposed by U.S. banking regulators also propose to cease Tier 1 capital
treatment for outstanding TruPS, with a similar phasing period. Fifth Third’s
Tier 1 and Total capital levels at December 31, 2012 included $810 million of
TruPS, or 0.8 percent of risk weighted assets. We will continue to evaluate
the role of these types of securities in our capital structure, based on
regulatory developments. To the extent these types of securities remain
outstanding during and after the phase-in period they would be expected to
continue to be included in Total capital, subject to final rule-making for
U.S. capital standards. We expect to manage our capital structure over time –
including the components represented by common equity and non-common equity –
to adapt to and reflect the effect of legislation, changes in U.S. bank
capital regulations that reflect international capital rules developments,
regulatory expectations, and our goals for capital levels and capital
composition as appropriate given any changes in rules.

Fifth Third is one of 31 large U.S. Bank Holding Companies (BHCs) subject to
the Federal Reserve’s (FRB) Capital Plans Rule which was issued November 9,
2012. Under this rule, we are required to submit our annual capital plan to
the Federal Reserve, for its objection or non-objection. Fifth Third submitted
its 2013 capital plan on January 7, 2013, as required. The plan included those
capital actions Fifth Third intends to pursue or contemplate during the period
covered by the FRB’s response, which is the second quarter of 2013 through the
first quarter of 2014. Our plan for the covered period included the
possibility that we would increase our common dividend, consistent with the
FRB’s 30 percent payout ratio guidance and conduct common share repurchases at
levels consistent with the pace of recent activity, which would be expected to
maintain common equity capital levels in the current range. Any such actions
would be based on the FRB’s non-objection, environmental conditions, earnings
results, our capital position, and other factors, as well as approval by the
Fifth Third Board of Directors, at the time. The Federal Reserve has indicated
to the BHCs that it will issue its response on or before March 31, 2013.

* Non-GAAP measure; see Reg. G reconciliation on page 34 in Exhibit 99.1 of
8-k filing dated 1/17/13.

** The pro forma Tier I common equity ratio is management’s estimate based
upon its current interpretation of the three draft Federal Register notices
proposing enhancements to regulatory capital requirements published in June
2012. The actual impact to the Bancorp’s Tier I common equity ratio may change
significantly due to further clarification of the agencies proposals or
revisions to the agencies final rules, which remain subject to public comment.

Tax Rate

The effective tax rate was 26.8 percent this quarter compared with 27.7
percent in the third quarter, due to a benefit of approximately $10 million
related to the termination of certain leases.

Other

Fifth Third Bank owns 70.2 million units representing a 33 percent interest in
Vantiv Holding, LLC. Based upon Vantiv’s closing price of $20.42 on December
31, 2012, our interest in Vantiv was valued at approximately $1.4 billion.
Next month in our 10-K, we will update our disclosure of the carrying value of
our interest in Vantiv stock which was approximately $651 million as of
September 30, 2012. The difference between the market value and our book value
is not recognized in Fifth Third’s equity or capital. Additionally, Fifth
Third has a warrant to purchase additional shares in Vantiv which is carried
as a derivative asset at a fair value of $177 million.

Conference Call

Fifth Third will host a conference call to discuss these financial results at
9:30 a.m. (Eastern Time) today. This conference call will be webcast live by
Thomson Financial and may be accessed through the Fifth Third Investor
Relations website at www.53.com (click on “About Fifth Third” then “Investor
Relations”). The webcast also is being distributed over Thomson Financial’s
Investor Distribution Network to both institutional and individual investors.
Individual investors can listen to the call through Thomson Financial’s
individual investor center at www.earnings.com or by visiting any of the
investor sites in Thomson Financial’s Individual Investor Network.
Institutional investors can access the call via Thomson Financial’s
password-protected event management site, StreetEvents (www.streetevents.com).

Those unable to listen to the live webcast may access a webcast replay through
the Fifth Third Investor Relations website at the same web address.
Additionally, a telephone replay of the conference call will be available
beginning approximately two hours after the conference call until Thursday,
January 31 by dialing 800-585-8367 for domestic access and 404-537-3406 for
international access (passcode 79425141#).

Corporate Profile

Fifth Third Bancorp is a diversified financial services company headquartered
in Cincinnati, Ohio. As of December 31, 2012, the Company had $122 billion in
assets and operated 15 affiliates with 1,325 full-service Banking Centers,
including 106 Bank Mart® locations open seven days a week inside select
grocery stores and 2,415 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois,
Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North
Carolina. Fifth Third operates four main businesses: Commercial Banking,
Branch Banking, Consumer Lending, and Investment Advisors. Fifth Third also
has a 33% interest in Vantiv Holding, LLC. Fifth Third is among the largest
money managers in the Midwest and, as of December 31, 2012, had $308 billion
in assets under care, of which it managed $27 billion for individuals,
corporations and not-for-profit organizations. Investor information and press
releases can be viewed at www.53.com. Fifth Third’s common stock is traded on
the NASDAQ® National Global Select Market under the symbol “FITB.”

Forward-Looking Statements

This news release contains statements that we believe are “forward-looking
statements” within the meaning of Section27A of the Securities Act of 1933,
as amended, and Rule 175 promulgated thereunder, and Section21E of the
Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated
thereunder. These statements relate to our financial condition, results of
operations, plans, objectives, future performance or business. They usually
can be identified by the use of forward-looking language such as “will likely
result,” “may,” “are expected to,” “is anticipated,” “estimate,” “forecast,”
“projected,” “intends to,” or may include other similar words or phrases such
as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar
expressions, or future or conditional verbs such as “will,” “would,” “should,”
“could,” “might,” “can,” or similar verbs. You should not place undue reliance
on these statements, as they are subject to risks and uncertainties, including
but not limited to the risk factors set forth in our most recent Annual Report
on Form 10-K. When considering these forward-looking statements, you should
keep in mind these risks and uncertainties, as well as any cautionary
statements we may make. Moreover, you should treat these statements as
speaking only as of the date they are made and based only on information then
actually known to us.

There are a number of important factors that could cause future results to
differ materially from historical performance and these forward-looking
statements. Factors that might cause such a difference include, but are not
limited to: (1)general economic conditions and weakening in the economy,
specifically the real estate market, either nationally or in the states in
which Fifth Third, one or more acquired entities and/or the combined company
do business, are less favorable than expected; (2)deteriorating credit
quality; (3)political developments, wars or other hostilities may disrupt or
increase volatility in securities markets or other economic conditions;
(4)changes in the interest rate environment reduce interest margins;
(5)prepayment speeds, loan origination and sale volumes, charge-offs and loan
loss provisions; (6)Fifth Third’s ability to maintain required capital levels
and adequate sources of funding and liquidity; (7)maintaining capital
requirements may limit Fifth Third’s operations and potential growth;
(8)changes and trends in capital markets; (9)problems encountered by larger
or similar financial institutions may adversely affect the banking industry
and/or Fifth Third; (10)competitive pressures among depository institutions
increase significantly; (11)effects of critical accounting policies and
judgments; (12)changes in accounting policies or procedures as may be
required by the Financial Accounting Standards Board (FASB) or other
regulatory agencies; (13)legislative or regulatory changes or actions, or
significant litigation, adversely affect Fifth Third, one or more acquired
entities and/or the combined company or the businesses in which Fifth Third,
one or more acquired entities and/or the combined company are engaged,
including the Dodd-Frank Wall Street Reform and Consumer Protection Act;
(14)ability to maintain favorable ratings from rating agencies;
(15)fluctuation of Fifth Third’s stock price; (16)ability to attract and
retain key personnel; (17)ability to receive dividends from its subsidiaries;
(18)potentially dilutive effect of future acquisitions on current
shareholders’ ownership of Fifth Third; (19)effects of accounting or
financial results of one or more acquired entities; (20) difficulties from the
separation of or the results of operations of Vantiv, LLC from Fifth Third;
(21)loss of income from any sale or potential sale of businesses that could
have an adverse effect on Fifth Third’s earnings and future growth;
(22)ability to secure confidential information and deliver products and
services through the use of computer systems and telecommunications networks;
and (23)the impact of reputational risk created by these developments on such
matters as business generation and retention, funding and liquidity.

You should refer to our periodic and current reports filed with the Securities
and Exchange Commission, or “SEC,” for further information on other factors,
which could cause actual results to be significantly different from those
expressed or implied by these forward-looking statements.

Contact:

Fifth Third Bancorp
Jim Eglseder (Investors), 513-534-8424
or
Laura Wehby (Investors), 513-534-7407
or
Debra DeCourcy, APR (Media), 513-534-4153
 
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