Fifth Third Bancorp (FITB) Barclays 23rd Annual Global Financial Services Conference summary

Strategic priorities and market positioning

• Focus remains on stability, profitability, and growth, supported by a strong core deposit-funded balance sheet and disciplined credit management.

• Multi-year investments target Southeast market expansion, technology-driven differentiation in payments, and leveraging federal industrial policy trends.

• Commercial payments and fee revenue diversification are key growth drivers, with commercial payments expected to become a $1 billion business within five years, driven by managed services and embedded solutions like Newline.

• Consistent investment in select strategies and technology innovation is seen as essential for sustainable long-term growth.

• The company operates a diversified business portfolio across commercial, consumer, and wealth management, with a significant presence in the Midwest and Southeast.

Commercial payments and technology innovation

• Commercial payments revenue exceeds $700 million, growing over 10% annually, with $17 trillion in payments volume projected for 2024.

• Managed services platforms automate B2B payment workflows, driving 16% annual revenue growth over eight years and delivering efficiency gains for clients.

• Embedded payments business, Newline, enables third-party developers to integrate payment solutions via APIs, enhanced by the Rize Money acquisition, and is expected to grow at a 20%+ CAGR.

• Partnerships, such as with Stripe, support banking-as-a-service models, providing cash management infrastructure for fintech clients.

• Fifth Third has a history of payments innovation, including early adoption of shared ATM networks, Zelle, and embedded payments, and continues to expand offerings through acquisitions and technology integration.

Financial performance and guidance

• Top quartile financial performance includes strong returns on tangible common equity and assets, with leading total shareholder returns over multiple timeframes.

• Loan growth guidance is up 1% to stable, with some pullback in middle market utilization impacting expectations.

• Net interest income and noninterest income are both projected to rise by up to 4% in 3Q24 compared to 2Q24.

• Fee income guidance increased for Q3, driven by strong capital markets, commercial payments, and wealth management performance.

• Expense discipline and productivity improvements are prioritized, with positive operating leverage targeted for 2025.