Fifth Third Bancorp (FITB) Bank of America Securities Financial Services Conference summary

Operating environment and outlook

• Entered 2024 with a more optimistic outlook, seeing green shoots and strong loan growth in Q4 and continued momentum into Q1.

• Investments in Southeast branch expansion, middle market sales, payments, and wealth management are driving broad-based growth.

• Expecting a productive environment in 2025, though uncertainty remains around fiscal policy and tariffs.

• Loan growth is strong across 13 of 15 regions, with notable performance in the Southeast and Midwest.

• Consumer loan growth is broad-based, with home equity and auto lending showing particular strength.

Interest rate and margin dynamics

• Yield curve steepening is viewed as positive, with a neutral stance on future rate moves.

• Deposit franchises are benefiting from higher rates, generating significant deposit margin.

• CD portfolio repricing in Q1 is expected to provide a tailwind, with ongoing discipline in deposit cost management.

• Industry focus remains on NII and NIM improvement, with rational competition expected.

Southeast expansion strategy

• Southeast strategy aims for sustainable growth by targeting high-growth regions, with a history of acquisitions and recent de novo branch buildout.

• Plan to open 200 branches over four years, reaching nearly 600 in the region and top five market positions.

• Branch performance is exceeding expectations, aided by analytics-driven location and staffing decisions.

• Client acquisition is driven by deposit and household growth in retail, and local market expertise in commercial banking.