Financial Data and Key Metrics Changes - The company reported earnings per share of $0.41, with return on assets surpassing 1% [3] - Pre-provision net revenue increased by $33 million quarter over quarter, marking a 5% rise and the sixth consecutive quarter of improvement [3] - Revenues, adjusting for last year's securities portfolio repositioning, grew by 17% [4] - Net interest income (NII) achieved a net interest margin (NIM) of 2.75%, reaching the year-end target one quarter ahead of schedule [5][10] - The company reported a common equity tier 1 (CET1) ratio approaching 12% at quarter-end, indicating strong capital ratios [5][24] Business Line Data and Key Metrics Changes - Fee income increased in the high single digits compared to 2024, contributing to overall revenue growth [4] - Commercial pipelines nearly doubled from the previous year, with investment banking pipelines also showing significant growth, particularly in M&A [7] - Assets under management in the wealth segment reached a record $68 billion, with strong sales production in the mass affluent segment [6][20] Market Data and Key Metrics Changes - Average loans increased by $5 billion sequentially, driven by a 2% increase in commercial and industrial (C&I) loans [14] - Average deposits grew by 2%, with period-end deposits increasing by 3% sequentially, primarily from commercial clients [15] - Non-performing assets (NPAs) and criticized loans declined, indicating improving asset quality [5][23] Company Strategy and Development Direction - The company aims to achieve a return on tangible common equity of 15% or better by 2027, focusing on improving NIM, compounding fee advantages, maintaining expense discipline, and share repurchases [10][11] - The company plans to repurchase approximately $100 million of common stock in the fourth quarter, indicating a cautious approach to capital management [11][24] - The strategic focus remains on organic growth opportunities, with bank M&A being a lower priority unless it aligns with strategic goals [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of outsized revenue and earnings growth in 2026, supported by strong pipelines and market conditions [12][26] - The company maintains a positive outlook on credit quality, with net charge-offs within the target range [23] - Management highlighted the importance of maintaining flexibility in capital allocation while navigating potential macroeconomic uncertainties [76][90] Other Important Information - The company received a one-notch upgrade to its long and short-term ratings from Fitch, with a positive outlook from Moody's [13][24] - Non-interest expenses increased by 2% from the prior quarter and 7% year over year, driven by higher personnel expenses and technology investments [22] Q&A Session Summary Question: Can you provide more detail on the drivers to achieve the 15% ROTCE target? - Management reiterated that the 15% target is a milestone, with NIM improvement and strong organic activity being key drivers [28][30] Question: How does the company view bank M&A given current stock valuation? - Management stated that bank M&A is a lower priority, focusing instead on organic growth and tuck-in deals that align with strategic goals [46][48] Question: What are the conditions for further balance sheet restructuring? - Management indicated that any restructuring would depend on favorable market conditions and the need to support client growth [88][90] Question: How does the recent Fitch upgrade impact capital distribution decisions? - Management noted that while the upgrade is important, it would not be the primary driver for capital distribution decisions [91][92]

A Partnership for Now and the Future Fifth Third Investor Presentation October 6, 2025 ibdroot\projects\IBD-NY\burger2025\973442_1\Presentations\05. Investor Presentation\PPT\Express_2.0_v2 - From FITB_v01.pptx 1 Disclaimer FORWARD-LOOKING STATEMENTS This communication contains statements that constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and ...

Core Viewpoint - Fifth Third Bancorp has agreed to merge with Comerica Incorporated in an all-stock deal valued at $10.9 billion, which is expected to create the ninth-largest bank in the U.S. with approximately $288 billion in assets [1][3]. Group 1: Merger Details - Comerica shareholders will receive 1.8663 Fifth Third shares for each Comerica share, translating to an offer price of $82.88 per share, representing a 20% premium to Comerica's 10-day volume-weighted average [1]. - The merger will result in Fifth Third investors holding about 73% of the combined entity, while Comerica shareholders will own roughly 27% [3]. - The transaction is anticipated to close by the end of the first quarter of 2026, subject to shareholder approvals and regulatory reviews [2]. Group 2: Market Position and Growth - The combined entity will operate in 17 of the 20 fastest-growing U.S. markets, enhancing its presence in key regions such as the Southeast, Texas, and California, while maintaining leadership in the Midwest [2]. - The merger is expected to be immediately accretive for shareholders, indicating potential for enhanced shareholder value [3]. Group 3: Strategic Benefits - The merger will create two recurring, high-return fee segments, Commercial Payments and Wealth and Asset Management, each valued at $1 billion, which will diversify earnings and support growth initiatives [4]. - Tim Spence, Chairman, CEO, and President of Fifth Third Bank, emphasized that the merger is a natural fit due to Comerica's strong middle market franchise and complementary footprint, positioning the new entity for long-term value delivery [5].

Core Insights - Fifth Third Bancorp (FITB) has acquired DTS Connex to enhance its capabilities in cash logistics, infrastructure, and risk management within its Commercial Payments business [1][9] - The acquisition aims to streamline cash operations and improve collaboration across the cash ecosystem through advanced data sharing, reinforcing FITB's strategy to leverage technology and innovation [2][3] Strategic Rationale - DTS Connex's technology addresses the need for efficient, transparent, and controlled cash logistics management for businesses [2] - The acquisition is expected to automate cash operations and deepen client collaboration, marking a significant milestone in FITB's commitment to client-centric innovation [3] Broader Strategy - The integration of DTS Connex is part of FITB's ongoing strategy to strengthen its leadership in the Commercial Payments sector, supported by targeted acquisitions and partnerships [4] - Previous acquisitions in 2023 include Big Data Healthcare LLC and Rize Money, Inc., aimed at enhancing healthcare payments and embedded finance, respectively [5] Growth Projections - FITB anticipates its Commercial Payments business to reach $1 billion in revenue by 2029, currently representing 21% of fee revenues as of June 30, 2025 [6][7] - The expansion of the Commercial Payments business is expected to accelerate fee income growth and support overall revenue momentum [7] Market Performance - Over the past year, FITB shares have gained 4.3%, while the industry has seen a growth of 17.2% [8]

Financial Performance - GAAP EPS was $0.34, including a $0.04 impact from a $58 million decrease in pre-tax earnings due to securities repositioning and Notable Items that decreased pre-tax earnings by $3 million[27] - ROTCE was 16.1%, or 17.6% on an adjusted basis[21] - Total revenue (FTE) grew by 8% YoY[29] - Pre-Provision Net Revenue (PPNR) grew by 8% YoY, or 15% on an adjusted basis[29] Loan and Deposit Growth - Average loans increased by $2.3 billion QoQ, representing a 1.8% increase[27] - Average loans increased by 7.9% YoY[20] - Average deposits increased by $1.8 billion QoQ, representing a 1.1% increase[27] - Average deposits increased by 6.4% YoY[20] Capital and Credit Quality - Tangible book value per share grew by 16% YoY[20] - Adjusted CET1 increased by 40bps over the last 4 quarters[21] - Net charge-offs were 0.20%[20] - Uninsured deposit coverage was 2x[20] Strategic Initiatives - Consumer primary bank relationship (PBR) grew by 4% YoY, and business PBR grew by 6% YoY[21] - Key Strategic Fee areas grew by 11% YoY[21] - The company announced the acquisition of Veritex in Texas[21]

Commercial Banking Performance - KeyCorp's Middle Market business boasts approximately 4,600 customers, with 98% of deposits linked to an operating account[3] - The Middle Market business demonstrates an average Return on Equity (ROE) of approximately 17-20%[3] - Commercial Payments revenue has experienced a Compound Annual Growth Rate (CAGR) of roughly 10% over the past 5 years[3] - Commercial deposits have grown from approximately $36 billion in 2019 to around $58 billion in 2024[11] - Middle Market revenue increased from approximately $800 million in 2019 to over $1 billion in 2024, representing a growth of +24%[11] - Commercial Payments revenue increased from approximately $290 million in 2019 to around $360 million in 2024, representing a growth of +24%[11] Commercial Payments & Fintech - KeyCorp's Commercial Payments business handled approximately $58 billion in 2024[3] - The company has seen a 325% growth in API clients[9] - Embedded Banking clients have grown by 71%[9] - The embedded banking industry is projected to grow from $32 billion in 2024 to $62 billion in 2030[9]