FIFTH THIRD BANCORP

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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 24 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 and nine months ended September 30, 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 nine months ended September 30, 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:

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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 $5 for the three months ended September 30, 2024 and 2023, respectively, and $11 for both the nine months ended September 30, 2024 and 2023.

(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 $393 million and $1.1 billion for the three and nine months ended September 30, 2024, respectively, compared to $718 million and $2.0 billion for the same periods in the prior year. The decreases for both periods were primarily driven by decreases in net interest income on an FTE basis and increases in provision for credit losses. The decrease for the nine months ended September 30, 2024 was also impacted by a decrease in noninterest income, partially offset by a decrease in noninterest expense.

Net interest income on an FTE basis decreased $339 million and $994 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by increases in average balances of and rates paid on interest checking deposits and money market deposits, decreases in FTP credits on deposits and decreases in average balances of commercial and industrial loans, partially offset by increases in yields on average commercial loans. Net interest income for the three months ended September 30, 2024 was positively impacted by a decrease in FTP charges on commercial loans and leases, which was primarily attributable to lower average balances. Net interest income for the nine months ended September 30, 2024 was negatively impacted by an increase in FTP charges, which was primarily attributable to higher FTP charge rates, partially offset by lower average balances.

Provision for credit losses increased $76 million and $247 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by increases in the allocated provision for credit losses related to commercial criticized assets as well as increases in net charge-offs on commercial and industrial loans. Annualized net charge-offs as a percent of average portfolio loans and leases increased to 39 bps and 34 bps for the three and nine months ended September 30, 2024, respectively, compared to 12 bps and 13 bps for the same periods in the prior year.

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

Noninterest income increased $4 million and decreased $22 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year. The increase for the three months ended September 30, 2024 was primarily driven by increases in service charges on deposits and commercial banking revenue, partially offset by a decrease in leasing business revenue. The decrease for the nine months ended September 30, 2024 was primarily driven by decreases in leasing business revenue and commercial banking revenue, partially offset by an increase in service charges on deposits. Leasing business revenue decreased $15 millionand $42 millionfor the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by decreases in operating lease income, lease remarketing fees and lease syndication fees. Commercial banking revenue increased $8 million anddecreased$13 millionfor thethree and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year. The increase for the three months ended September 30, 2024 compared to the same period in the prior year was primarily driven by an increase in corporate bond fees, partially offset by a decrease in foreign exchange fees. The decrease for the nine months ended September 30, 2024 compared to the same period in the prior year was primarily driven by decreases in revenue from commercial customer derivatives, foreign exchange fees and loan syndication revenue, partially offset by an increase in corporate bond fees. Service charges on deposits increased $9 million and $32 million for thethree and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily due to increases in revenue from commercial payments activities, which include traditional treasury management and embedded payments.

Noninterest expense decreased $8 million and $88 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year. The decrease for the three months ended September 30, 2024 was primarily driven by a decrease in leasing business expense, partially offset by an increase in other noninterest expense. The decrease for the nine months ended September 30, 2024 was driven by decreases in other noninterest expense and leasing business expense. Other noninterest expense increased $5 million for the three months ended September 30, 2024 compared to the same period in the prior year primarily due to an increase in credit valuation adjustments on derivatives associated with customer accommodation contracts. Other noninterest expense decreased$60 million for thenine months ended September 30, 2024 compared to the same period in the prior year primarily driven by a decrease in allocated expenses. Leasing business expense decreased $8 million and $25 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by decreases in depreciation expense associated with operating lease equipment.

Average commercial loans and leases decreased $5.2 billion and $5.7 billion for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily due to decreases in average commercial and industrial loans. Average commercial and industrial loans decreased for the three and nine months ended September 30, 2024 compared to the same periods in the prior year primarily as a result of a planned reduction in balances in the second half of 2023.

Average deposits increased $3.3 billion and $4.1 billion for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily due to increases in average interest checking deposits and average money market deposits, partially offset by decreases in average demand deposits. In response to the higher interest rate environment, deposit balances have generally migrated from noninterest-bearing products or lower interest-bearing products into higher interest-bearing products. This migration contributed to increases in average interest checking deposits of$6.4 billion and $9.2 billion for the three and nine months ended September 30, 2024, respectively, and increases in average money market deposits of $512 million and $548 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in theprior year, along with a decrease in average demand deposits of $3.6 billion and $5.5 billion for the three and nine months ended September 30, 2024, respectively.

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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 $497 million and $1.5 billion for the three and nine months ended September 30, 2024, respectively, compared to $739 million and $2.1 billion for the same periods in the prior year. The decrease for three months ended September 30, 2024 was primarily driven by a decrease in net interest income, partially offset by decreases in provision for credit losses and noninterest expense. The decrease for the nine months ended September 30, 2024 was primarily driven by a decrease in net interest income and an increase in provision for credit losses, partially offset by a decrease in noninterest expense.

Net interest income decreased $359 million and $806 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily due to increases in rates paid on and average balances of interest-bearing deposits, decreases in FTP credits on deposits and increases in FTP charge rates on loans. These negative impacts were partially offset by increases in yields on loans and leases.

Provision for credit losses decreased $27 million and increased $11 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year. The decrease for the three months ended September 30, 2024 compared to the same period in the prior year was primarily due to a decrease in net charge-offs on commercial and industrial loans, partially offset by an increase in net charge-offs on solar energy installation loans. The increase for the nine months ended September 30, 2024 compared to the same period in the prior year was primarily due to increases in net charge-offs on solar energy installation loans and indirect secured consumer loans, partially offset by a decrease in net charge-offs on commercial and industrial loans. Annualized net charge-offs as a percent

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

of average portfolio loans and leases were 66 bps for both the three and nine months ended September 30, 2024 compared to 90 bps and 65 bps for the same periods in the prior year.

Noninterest income increased $6 million and remained flat for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year, primarily driven by increases in wealth and asset management revenue, partially offset by decreases in mortgage banking net revenue. Wealth and asset management revenue increased $11 million and $26 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily due to increases in broker income and personal 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.

Noninterest expense decreased $20 million and $32 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by decreases in other noninterest expense, partially offset by increases in net occupancy and equipment expense. The decrease for the three months ended September 30, 2024 was also impacted by a decrease in compensation and benefits expense. Other noninterest expense decreased $12 million and $44 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily due to decreases in allocated expenses. The decrease for the three months ended September 30, 2024 wasalso impacted by a decrease in losses and adjustments. Net occupancy and equipment expense increased $2 million and $9 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by the Bancorp’s expansion into Southeast markets. Compensation and benefits expense decreased $11 million for the three months ended September 30, 2024 compared to the same period in the prior year primarily driven by a decrease in base compensation.

Average consumer loans decreased $105 million and $717 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods 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 decreased for the three and nine months ended September 30, 2024 compared to the same periods in the prior year primarily driven by paydowns exceeding loan originations and a planned reduction in balances in the second half of 2023. Average residential mortgage loans decreased for the three and nine months ended September 30, 2024 compared to the same periods in the prior year primarily as a result of a planned reduction in balances in the second half of 2023 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 and nine months ended September 30, 2024 compared to the same periods 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 and nine months ended September 30, 2024 compared to the same periods in the prior year primarily due to increased loan originations. Average commercial loans increased $534 million and $619 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by increases in average commercial mortgage loans and average commercial construction loans as loan originations exceeded payoffs. The increase for the for the nine months ended September 30, 2024 was also impacted by an increase in average commercial and industrial loans as loan originations exceeded payoffs.

Average deposits increased $1.9 billion and $3.0 billion for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by increases in average money market deposits and average certificates of deposit, partially offset by decreases in average savings deposits, average interest checking deposits and average demand deposits. Average money market deposits increased $4.7 billion and $5.6 billion for the three and nine months ended September 30, 2024, respectively, and average certificates of deposit increased $960 million and $3.2 billion for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily due to higher offering rates and higher average balances per customer account as well as balance migration from demand deposits, interest checking deposits and savings deposits. Average savings deposits decreased $2.1 billion and $3.0 billion, average interest checking deposits decreased $1.1 billion and $1.7 billion anda verage demand deposits decreased $528 million and $1.1 billion for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily as a result of lower average balances per customer account as well as balance migration into certificates of deposit and money market accounts.

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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 $42 million and $136 million for the three and nine months ended September 30, 2024, respectively, compared to $79 million and $226 million for the same periods in the prior year. The decreases for both periods were primarily driven by decreases in net interest income, partially offset by increases in noninterest income.

Net interest income decreased $48 million and $132 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by decreases in FTP credits on deposits and increases in rates paid on average deposits.

Noninterest income increased $5 million and $24 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily due to increases in wealth and asset management revenue, which increased $6 million and $23 million for the three and nine months ended September 30, 2024, respectively, driven by increases in personal asset management revenue.

Average loans and leases decreased $260 million and $314 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by decreases in average commercial and industrial loans, average residential mortgage loans, average other consumer loans and average home equity loansas payoffs exceeded loan production.

Average deposits decreased $121 million and $668 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year, primarily driven by decreases in average interest checking deposits, average demand deposits and average money market deposits as a result of lower average balances per customer account, partially offset by increases in average savings deposits and 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.

Net interest income on an FTE basis increased $728 million and $1.7 billion for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by increases in interest income on other short-term investments and increases in FTP charges on loans and leases allocated to the business segments as well as decreases in FTP credits on deposits allocated to the business segments. These positive impacts were partially offset by increases in interest expense on long-term debt. The increases in FTP charges allocated to the business segments were driven by increases in market interest rates, primarily across the fixed-rate asset portfolios. The decreases in FTP credits allocated to the business segments were driven by lower assumed liquidity premiums from deposit portfolios. Under the Bancorp’s internal reporting methodology, the Bancorp insulates the business segments from interest rate risk associated

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

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 generally increases or decreases at a faster pace than the amount of allocated FTP charges on loans and leases.

The provision for credit losses was $6 million and the benefit from credit losses was $165 million for the three and nine months ended September 30, 2024, respectively, compared to provision for credit losses of $13 million and $201 million for the same periods in the prior year. The benefit from credit losses for the nine months ended September 30, 2024 was primarily driven by increases in allocations to the business segments.

Noninterest income decreased $19 million and $22 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by increases in the loss recognized on the swap associated with the sale of Visa, Inc. Class B Shares. The decrease for the nine months ended September 30, 2024 also included a decrease in equity method investment income, primarily due to a gain on the partial disposition of an equity method investment during the second quarter of 2023.

Noninterest expense increased $79 million and $171 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year, driven by increases in compensation and benefits expense, which were primarily attributable to increases in performance-based compensation, base compensation and employee benefits expense. The increase for the nine months ended September 30, 2024 compared to the same period in the prior year was also impacted by an increase in other noninterest expense, which was primarily attributable to a decrease in corporate overhead allocations from General Corporate and Other to the other business segments, as well as the incremental expenses associated with the Bancorp’s updated estimate of its allocated share of the FDIC’s special assessment.