FIFTH THIRD BANCORP

Table of Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

BUSINESS SEGMENT REVIEW

The Bancorp reports on three business segments: Commercial Banking, Consumer and Small Business Banking and Wealth and Asset Management. Additional information on each business segment is included in Note 22 of the Notes to Condensed Consolidated Financial Statements. Results of the Bancorp’s business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp’s business segments are not necessarily comparable with similar information for other financial institutions. The Bancorp refines its methodologies from time to time as management’s accounting practices and businesses change.

During the first quarter of 2024, the Bancorp eliminated certain revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking. As a result, the results of operations for the Wealth and Asset Management segment for the three months ended March 31, 2023 were adjusted to reflect the impact of the elimination of these revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking.

The Bancorp manages interest rate risk centrally at the corporate level. By employing an FTP methodology, the business segments are insulated from most benchmark interest rate volatility, enabling them to focus on serving customers through the origination of loans and acceptance of deposits. The FTP methodology assigns charge and credit rates to classes of assets and liabilities, respectively, based on the estimated amount and timing of the cash flows for each transaction. Assigning the FTP rate based on matching the duration of cash flows allocates interest income and interest expense to each business segment so its resulting net interest income is insulated from future changes in benchmark interest rates. The Bancorp’s FTP methodology also allocates the contribution to net interest income of the asset-generating and deposit-providing businesses on a duration-adjusted basis to better attribute the driver of the performance. As the asset and liability durations are not perfectly matched, the residual impact of the FTP methodology is captured in General Corporate and Other. The charge and credit rates are determined using the FTP rate curve, which is based on an estimate of Fifth Third’s marginal borrowing cost in the wholesale funding markets. The FTP curve is constructed using the U.S. swap curve, brokered CD pricing and unsecured debt pricing.

The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of behavioral assumptions, such as prepayment rates on interest-earning assets and the estimated durations for indeterminate-lived deposits. Key assumptions, including the credit rates provided for deposit accounts, are reviewed annually. Credit rates for deposit products and charge rates for loan products may be reset more frequently in response to changes in market conditions. In general, the charge rates on assets increased since December 31, 2023 as they were affected by the prevailing level of interest rates and repricing characteristics of the portfolio. The credit rates for deposit products decreased modestly since December 31, 2023 due to modified assumptions and an inverted yield curve. As a result, net interest income for each segment was negatively impacted during the three months ended March 31, 2024 as a result of these updates to FTP charge and credit rates.

The Bancorp’s methodology for allocating provision for credit losses to the business segments includes charges or benefits associated with changes in criticized commercial loan levels in addition to actual net charge-offs experienced by the loans and leases owned by each business segment. Provision for credit losses attributable to loan and lease growth and changes in ALLL factors is captured in General Corporate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Additionally, the business segments form synergies by taking advantage of relationship depth opportunities and funding operations by accessing the capital markets as a collective unit.

The following table summarizes net income (loss) by business segment:

Table of Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Commercial Banking

Commercial Banking offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. In addition to the traditional lending and depository offerings, Commercial Banking products and services include global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance.

The following table contains selected financial data for the Commercial Banking segment:

(a)Includes FTE adjustments of $4 and $3 for the three months ended March 31, 2024 and 2023, respectively.

(b)Applicable income tax expense for all periods includes the tax benefit from tax-exempt income, tax-advantaged investments and tax credits partially offset by the effect of certain nondeductible expenses. Refer to the Applicable Income Taxes subsection of the Statements of Income Analysis section of MD&A for additional information.

Net income was $369 million for the three months ended March 31, 2024 compared to $580 million for the same period in the prior year. The decrease was primarily driven by a decrease in net interest income on an FTE basis, an increase in provision for credit losses and a decrease in noninterest income, partially offset by a decrease in noninterest expense.

Net interest income on an FTE basis decreased $290 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by increases in average balances of and rates paid on interest checking deposits and savings and money market deposits as well as increases in FTP charge rates on commercial loans and leases. These negative impacts were partially offset by increases in yields on average commercial loans and leases as well as increases in FTP credits on interest checking deposits.

Provision for credit losses increased $25 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by an increase in the allocated provision for credit losses related to commercial criticized assets as well as an increase in net charge-offs on commercial and industrial loans. Annualized net charge-offs as a percent of average portfolio loans and leases increased to 18 bps for the three months ended March 31, 2024, compared to 15 bps for the same period in the prior year.

Noninterest income decreased $10 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by decreases in commercial banking revenue and leasing business revenue, partially offset by increases in service charges on deposits and other noninterest income. Commercial banking revenue decreased $18 million for thethree months ended March 31, 2024 compared to the same period in the prior year primarily driven by decreases in revenue from commercial customer derivatives, merger and acquisition fees and loan syndication fees, partially offset by an increase in corporate bond fees. Leasing business revenue decreased $18 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by decreases in operating lease income and lease remarketing fees. Service charges on deposits increased $13 million for thethree months ended March 31, 2024

Table of Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

compared to the same period in the prior year primarily due to an increase in revenue from commercial payments activities, which include traditional treasury management and embedded payments. Other noninterest income increased $13 million for thethree months ended March 31, 2024 compared to the same period in the prior year primarily due to the recognition of net securities gains during the three months ended March 31, 2024 compared to net securities losses for the three months ended March 31, 2023 and an increase in card and processing revenue primarily driven by an increase in electronic funds transfer income.

Noninterest expense decreased $50 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by decreases in other noninterest expense and leasing business expense. Other noninterest expense decreased $40 million for thethree months ended March 31, 2024 compared to the same period in the prior year primarily driven by decreases in allocated expenses as well as a decline in credit valuation adjustments on customer accommodation derivatives. Leasing business expense decreased $9 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by a decrease in depreciation expense associated with operating lease equipment.

Average commercial loans and leases decreased $5.6 billion for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to decreases in average commercial and industrial loans, average commercial leases and average commercial mortgage loans, partially offset by an increase in average commercial construction loans. Average commercial and industrial loans decreased for the three months ended March 31, 2024 compared to the same period in the prior year primarily as a result of a planned reduction in balances in the second half of 2023. Average commercial leases decreased for the three months ended March 31, 2024 compared to the same period in the prior year primarily as a result of a planned reduction in indirect non-relationship based lease originations. Average commercial mortgage loans decreasedfor the three months ended March 31, 2024 compared to the same period in the prior year as payoffs exceeded loan originations. Average commercial construction loans increased for the three months ended March 31, 2024 compared to the same period in the prior year asloan originations exceeded payoffs.

Average deposits increased $5.1 billion for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to increases in average interest checking deposits and average savings and money market deposits, partially offset by a decrease in average demand deposits. Average interest checking deposits increased $12.5 billion for the three months ended March 31, 2024 compared to the same period in theprior year primarily as a result of balance migration from demand deposits as well as average balance growth. Average savings and money market deposits increased $428 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily as a result of higher average balances per customer account. Average demand deposits decreased $8.0 billion for the three months ended March 31, 2024 compared to the same period in the prior year primarily as a result of the aforementioned balance migration.

Table of Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Consumer and Small Business Banking

Consumer and Small Business Banking provides a full range of deposit and loan products to individuals and small businesses through a network of full-service banking centers and relationships with indirect and correspondent loan originators in addition to providing products designed to meet the specific needs of small businesses, including cash management services. Consumer and Small Business Banking includes the Bancorp’s residential mortgage, home equity loans and lines of credit, credit cards, automobile and other indirect lending, solar energy installation and other consumer lending activities. Residential mortgage activities include the origination, retention and servicing of residential mortgage loans, sales and securitizations of those loans and all associated hedging activities. Indirect lending activities include extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers and marine dealers. Solar energy installation loans and certain other consumer loans are originated through a network of contractors and installers.

The following table contains selected financial data for the Consumer and Small Business Banking segment:

Net income was $527 million for the three months ended March 31, 2024 compared to $659 million for the same period in the prior year. The decrease was primarily driven by a decrease in net interest income, an increase in provision for credit losses and a decrease in noninterest income, partially offset by a decrease in noninterest expense.

Net interest income decreased $132 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to increases in rates paid on deposits as well as increases in FTP charge rates on loans. These negative impacts were partially offset by increases in yields on loans and leases as well as increases in FTP credits on deposits.

Provision for credit losses increased $33 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to increases in net charge-offs on consumer loans. Annualized net charge-offs as a percent of average portfolio loans and leases increased to 71 bps for the three months ended March 31, 2024 compared to 46 bps for the same period in the prior year.

Noninterest income decreased $7 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by a decrease in mortgage banking net revenue, partially offset by an increase in wealth and asset management revenue. Refer to the Noninterest Income subsection of the Statements of Income Analysis section of MD&A for additional information on the fluctuations in mortgage banking net revenue. Wealth and asset management revenue increased $6 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to increases in broker income and personal asset management revenue.

Table of Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Noninterest expense decreased $6 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by a decrease in other noninterest expense, partially offset by an increase in compensation and benefits expense. Other noninterest expense decreased $19 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to decreases in allocated expenses, partially offset by an increase in marketing expense. Marketing expense increased $6 million for thethree months ended March 31, 2024 compared to the same period in the prior year primarily driven by direct mail campaigns. Compensation and benefits expense increased $10 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by increases in base compensation and performance-based compensation.

Average consumer loans decreased $1.1 billion for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to decreases in average indirect secured consumer loans, average residential mortgage loans and average other consumer loans, partially offset by an increase in average solar energy installation loans. Average indirect secured consumer loans decreasedfor the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by paydowns exceeding loan originations and a planned reduction in balances. Average residential mortgage loans decreased for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to lower origination volumes and a decrease in residential mortgage loans held for sale as the Bancorp sold government-guaranteed loans that were previously in forbearance programs. Average other consumer loans decreased for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by the paydowns of loans originated in connection with one third-party point-of-sale company with which the Bancorp discontinued the origination of new loans in September of 2022. Average solar energy installation loans increased for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to increased loan originations. Average commercial loans increased $737 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by increases in average commercial mortgage loans, average commercial and industrial loans and average commercial construction loans as loan originations exceeded payoffs.

Average deposits increased $3.3 billion for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by increases in average certificates of deposit and average savings and money market deposits, partially offset by decreases in average interest checking deposits and average demand deposits. Average certificates of deposit increased $5.6 billion and average savings and money market deposits increased $2.1 billion for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to higher offering rates and higher average balances per consumer customer account. Average interest checking deposits decreased $2.4 billion anda verage demand deposits decreased $2.0 billion for the three months ended March 31, 2024 compared to the same period in the prior year primarily as a result of lower average balances per customer account as well as balance migration into certificates of deposit.

Table of Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Wealth and Asset Management

Wealth and Asset Management provides a full range of wealth management solutions for individuals, companies and not-for-profit organizations, including wealth planning, investment management, banking, insurance, trust and estate services. These offerings include retail brokerage services for individual clients, advisory services for institutional clients including middle market businesses, non-profits, states and municipalities, and wealth management strategies and products for high net worth and ultra-high net worth clients.

The following table contains selected financial data for the Wealth and Asset Management segment:

Net income was $46 million for the three months ended March 31, 2024 compared to $74 million for the same period in the prior year. The decrease was primarily driven by a decrease in net interest income and an increase in noninterest expense, partially offset by an increase in noninterest income.

Net interest income decreased $42 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by an increase in rates paid on average deposits, a decrease in FTP credits on deposits and an increase in FTP charge rates on loans and leases. These negative impacts were partially offset by an increase in yields on loans and leases for the three months ended March 31, 2024 compared to the same period in the prior year.

Noninterest income increased $10 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily due to an increase in wealth and asset management revenue, which increased $9 million for the three months ended March 31, 2024 driven by an increase in personal asset management revenue.

Noninterest expense increased $3 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by an increase in other noninterest expense. Other noninterest expense increased $2 million for the three months ended March 31, 2024 primarily as the result of increases in allocated expenses.

Average loans and leases decreased $289 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by decreases in average residential mortgage loans, average other consumer loans and average commercial and industrial loans as payoffs exceeded loan production.

Average deposits decreased $1.6 billion for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by decreases in average interest checking deposits, average demand deposits and average savings and money market deposits as a result of lower average balances per customer account, partially offset by an increase in average certificates of deposit.

General Corporate and Other

General Corporate and Other includes the unallocated portion of the investment securities portfolio, securities gains and losses, certain non-core deposit funding, unassigned equity, unallocated provision for credit losses or a benefit from the reduction of the ACL, the payment of preferred stock dividends and certain support activities and other items not attributed to the business segments.

Table of Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Net interest income on an FTE basis increased $332 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by increases in FTP charge rates on loans and leases allocated to the business segments as well as an increase in interest income on other short-term investments. These positive impacts were partially offset by increases in FTP credits on deposits allocated to the business segments as well as an increase in interest expense on long-term debt. The increases in both FTP credits and FTP charges allocated to the business segments were driven by increases in market interest rates. Under the Bancorp’s internal reporting methodology, the Bancorp insulates the business segments from interest rate risk associated with fixed-rate lending by transferring this risk to General Corporate and Other through the FTP methodology. As a result, the amount of FTP credits on deposits earned by the business segments has increased at a faster pace than the amount of allocated FTP charges on loans and leases. If market interest rates remain at current levels, the FTP charges to the business segments for loans and leases will increase over time as fixed-rate loans mature and are replaced with new originations.

The benefit from credit losses was $61 million for the three months ended March 31, 2024 compared to a provision for credit losses of $67 million for the same period in the prior year. The increase in the benefit from credit losses was primarily driven by an increase in allocations to the business segments.

Noninterest income increased $21 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by a decrease in the loss on the swap associated with the sale of Visa, Inc. Class B shares.

Noninterest expense increased $64 million for the three months ended March 31, 2024 compared to the same period in the prior year primarily driven by a decrease in corporate overhead allocations from General Corporate and Other to the other business segments as well as the incremental expense associated with the Bancorp’s updated estimate of its allocated share of the FDIC’s special assessment. These impacts were partially offset by a decrease in compensation and benefits primarily driven by decreases in performance-based compensation and base compensation.