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FIFTH THIRD BANCORP

For the period ended Mar 31, 2024. Filed May 7, 2024.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed May 7, 2024

FITB$54.36+2.5%Stored close · as of Nov 9, 2026

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Non-GAAP Financial Measures

Table of Contents

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

NON-GAAP FINANCIAL MEASURES

The following are non-GAAP financial measures which provide useful insight to the reader of the Condensed Consolidated Financial Statements but should be supplemental to primary U.S. GAAP measures and should not be read in isolation or relied upon as a substitute for the primary U.S. GAAP measures. The Bancorp encourages readers to consider the Condensed Consolidated Financial Statements in their entirety and not to rely on any single financial measure.

The FTE basis adjusts for the tax-favored status of income from certain loans and leases and securities held by the Bancorp that are not taxable for federal income tax purposes. The Bancorp believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison between taxable and non-taxable amounts.

The following table reconciles the non-GAAP financial measures of net interest income on an FTE basis, interest income on an FTE basis, net interest margin, net interest rate spread and the efficiency ratio to U.S. GAAP:

TABLE 2: Non-GAAP Financial Measures - Financial Measures and Ratios on an FTE basis
For the three months endedMarch 31,
($ in millions)20242023
Net interest income (U.S. GAAP)$1,3841,517
Add: FTE adjustment65
Net interest income on an FTE basis (1)$1,3901,522
Net interest income on an FTE basis (annualized) (2)5,5916,173
Interest income (U.S. GAAP)$2,6082,213
Add: FTE adjustment65
Interest income on an FTE basis$2,6142,218
Interest income on an FTE basis (annualized) (3)10,5138,995
Interest expense (annualized) (4)$4,9232,823
Noninterest income (5)710696
Noninterest expense (6)1,3421,331
Average interest-earning assets (7)195,349187,407
Average interest-bearing liabilities (8)146,533129,280
Ratios:
Net interest margin on an FTE basis (2) / (7)2.86%3.29
Net interest rate spread on an FTE basis ((3) / (7)) - ((4) / (8))2.022.62
Efficiency ratio on an FTE basis (6) / ((1) + (5))63.960.0

The Bancorp believes return on average tangible common equity is an important measure for comparative purposes with other financial institutions, but is not defined under U.S. GAAP, and therefore is considered a non-GAAP financial measure. This measure is useful for evaluating the performance of a business as it calculates the return available to common shareholders without the impact of intangible assets and their related amortization.

Table of Contents

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

The following table reconciles the non-GAAP financial measure of return on average tangible common equity to U.S. GAAP:

TABLE 3: Non-GAAP Financial Measures - Return on Average Tangible Common Equity
For the three months endedMarch 31,
($ in millions)20242023
Net income available to common shareholders (U.S. GAAP)$480535
Add: Intangible amortization, net of tax89
Tangible net income available to common shareholders$488544
Tangible net income available to common shareholders (annualized) (1)1,9632,206
Average Bancorp shareholders’ equity (U.S. GAAP)$18,72717,977
Less: Average preferred stock2,1162,116
Average goodwill4,9184,915
Average intangible assets121163
Average tangible common equity (2)$11,57210,783
Return on average tangible common equity (1) / (2)17.0%20.5

The Bancorp considers various measures when evaluating capital utilization and adequacy, including the tangible equity ratio and tangible common equity ratio, in addition to capital ratios defined by the U.S. banking agencies. These calculations are intended to complement the capital ratios defined by the U.S. banking agencies for both absolute and comparative purposes. As U.S. GAAP does not include capital ratio measures, the Bancorp believes there are no comparable U.S. GAAP financial measures to these ratios. These ratios are not formally defined by U.S. GAAP or codified in the federal banking regulations and, therefore, are considered to be non-GAAP financial measures.

The following table reconciles non-GAAP capital ratios to U.S. GAAP:

TABLE 4: Non-GAAP Financial Measures - Capital Ratios
As of ($ in millions)March 31,2024December 31,2023
Total Bancorp Shareholders’ Equity (U.S. GAAP)$19,01819,172
Less: Preferred stock2,1162,116
Goodwill4,9184,919
Intangible assets115125
AOCI(4,888)(4,487)
Tangible common equity, excluding AOCI (1)$16,75716,499
Add: Preferred stock2,1162,116
Tangible equity (2)$18,87318,615
Total Assets (U.S. GAAP)$214,506214,574
Less: Goodwill4,9184,919
Intangible assets115125
AOCI, before tax(6,187)(5,680)
Tangible assets, excluding AOCI (3)$215,660215,210
Ratios:
Tangible equity as a percentage of tangible assets (2) / (3)8.75%8.65
Tangible common equity as a percentage of tangible assets (1) / (3)7.777.67
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