Q - FIFTH THIRD BANCORP

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

BALANCE SHEET ANALYSIS

Loans and Leases

The Bancorp classifies its commercial loans and leases based upon primary purpose and consumer loans based upon product or collateral. Table 13 summarizes end of period loans and leases, including loans and leases held for sale, and Table 14 summarizes average total loans and leases, including average loans and leases held for sale.

Total loans and leases, including loans and leases held for sale, increased $2.6 billion, or 2%, from December 31, 2024 driven by increases in both consumer loans and commercial loans and leases.

Commercial loans and leases increased $867 million, or 1%, from December 31, 2024 primarily due to an increase in commercial and industrial loans. Commercial and industrial loans increased $1.1 billion, or 2%, from December 31, 2024 primarily as a result of loan originations exceeding payoffs.

Consumer loans increased $1.7 billion, or 4%, from December 31, 2024 primarily due to increases in indirect secured consumer loans and home equity. Indirect secured consumer loans increased $1.3 billion, or 8%, from December 31, 2024 primarily driven by higher loan production. Home equity increased $297 million, or 7%, from December 31, 2024 as loan originations and new advances exceeded payoffs, driven by increased marketing efforts.

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

Average loans and leases, including average loans and leases held for sale, increased $6.4 billion, or 5%, for the three months ended June 30, 2025 compared to the same period in the prior year driven by increases in both average commercial loans and leases and average consumer loans.

Average commercial loans and leases increased $3.2 billion, or 4%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to increases in average commercial and industrial loans, average commercial mortgage loans and average commercial leases. Average commercial and industrial loans increased $1.7 billion, or 3%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily as a result of an increase in loan originations at the end of 2024 driving growth in the first half of 2025 as well as lower demand in the first half of 2024. Average commercial mortgage loans increased $1.1 billion, or 9%, for the three months ended June 30, 2025 compared to the same period in the prior year and included the impact of commercial construction loans transitioning to commercial mortgage loans and increased originations. Average commercial leases increased $545 million, or 21%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily driven by an increase in lease originations as a result of a shift in business strategy in the second half of 2024 that has continued into 2025.

Average consumer loans increased $3.1 billion, or 7%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to increases in average indirect secured consumer loans, average residential mortgage loans, average home equity and average solar energy installation loans, partially offset by a decrease in average other consumer loans. Average indirect secured consumer loans increased $1.9 billion, or 12%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily driven by higher loan production during the second half of 2024 that has continued into 2025 following a planned reduction in balances in the second half of 2023. Average residential mortgage loans increased $793 million, or 5%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily driven by an increase in held-for-investment loan originations and loan purchase transactions completed in the second half of 2024. Average home equity loans increased $454 million, or 12%, for the three months ended June 30, 2025 compared to the same period in the prior year as loan originations and new advances exceeded payoffs, driven by increased marketing efforts. Average solar energy installation loans increased $352 million, or 9%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to loan originations exceeding payoffs. Average other consumer loans decreased $256 million, or 9%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily driven by paydowns of point-of-sale loans, including loans originated in connection with one third-party point-of-sale company with which the Bancorp discontinued the origination of new loans in September 2022.

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

Investment Securities

The Bancorp uses investment securities as a means of managing interest rate risk, providing collateral for pledging purposes and for liquidity risk management. Total investment securities, which consist of available-for-sale debt and other securities, held-to-maturity securities, trading debt securities and equity securities, were $51.6 billion and $52.4 billion at June 30, 2025 and December 31, 2024, respectively. The taxable available-for-sale debt and other securities portfolio had an effective duration of 3.9 and 3.8 at June 30, 2025 and December 31, 2024, respectively. The taxable held-to-maturity securities portfolio had an effective duration of 5.3 and 5.5 at June 30, 2025 and December 31, 2024, respectively.

Debt securities are classified as available-for-sale when, in management’s judgment, they may be sold in response to, or in anticipation of, changes in market conditions. Debt securities that management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Debt securities are classified as trading typically when bought and held principally for the purpose of selling them in the near term. At June 30, 2025, the Bancorp’s investment securities portfolio consisted primarily of U.S. Treasury and other government guaranteed securities. The Bancorp held an immaterial amount of below-investment grade available-for-sale debt securities and held-to-maturity securities at both June 30, 2025 and December 31, 2024.

At both June 30, 2025 and December 31, 2024, the Bancorp did not recognize an allowance for credit losses for its investment securities. The Bancorp also did not recognize provision for credit losses for investment securities during both the three and six months ended June 30, 2025 and 2024.

The Bancorp recognized an immaterial amount of impairment losses on its available-for-sale debt and other securities for both the three and six months ended June 30, 2025. The Bancorp recognized $5 million and $10 million of impairment losses on its available-for-sale debt and other securities during the three and six months ended June 30, 2024, respectively. These losses were included in securities gains, net, in the Condensed Consolidated Statements of Income and related to certain securities in unrealized loss positions where the Bancorp had determined that it no longer intended to hold the securities until the recovery of their amortized cost bases.

The following table summarizes the end of period components of investment securities:

(a)Other securities consist of FHLB, FRB and DTCC restricted stock hold ings that are carried at cost.

(b)Includes a discount of $805 and $865 at June 30, 2025 and December 31, 2024, respectively, pertaining to the remaining unamortized portion of unrealized losses on securities transferred to HTM.

In January 2024, the Bancorp transferred $12.6 billion (amortized cost basis) of investment securities from available-for-sale to held-to-maturity to reflect the Bancorp’s change in intent to hold these securities to maturity in order to reduce potential capital volatility associated

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

with investment security market price fluctuations. The transfer included U.S. Treasury and federal agencies securities, agency residential mortgage-backed securities and agency commercial mortgage-backed securities. On the date of the transfer, pre-tax unrealized losses of $994 million were included in AOCI related to these transferred securities. The unrealized losses that existed on the date of transfer will continue to be reported as a component of AOCI and will be amortized into income over the remaining life of the securities as an adjustment to yield, offsetting the amortization of the discount resulting from the transfer recorded at fair value.

The following table presents the estimated future amortization of unrealized losses related to investment securities transferred from available-for-sale to held-to-maturity. At June 30, 2025, these transferred securities had an estimated weighted-average life of 6.7 years.

On an amortized cost basis, available-for-sale debt and other securities and held-to-maturity securities comprised 28% of total interest-earning assets at both June 30, 2025 and December 31, 2024. The estimated weighted-average life of the debt securities in the available-for-sale debt and other securities portfolio was 5.1 years and 5.0 years at June 30, 2025 and December 31, 2024, respectively. In addition, the debt securities in the available-for-sale debt and other securities portfolio had a weighted-average yield of 3.09% and 3.08% at June 30, 2025 and December 31, 2024, respectively. The held-to-maturity securities portfolio had an estimated weighted-average life of 6.8 years and 6.9 years at June 30, 2025 and December 31, 2024, respectively. In addition, the held-to-maturity securities portfolio had a weighted-average yield of 3.51% and 3.41% at June 30, 2025 and December 31, 2024, respectively.

Information presented in Tables 17 and 18 is on a weighted-average life basis, anticipating future prepayments. Yield information is presented on an FTE basis and is computed using amortized cost balances and reflects the impact of prepayments. Maturity and yield calculations for the total available-for-sale debt and other securities portfolio exclude other securities that have no stated yield or maturity.

The fair values of investment securities are impacted by interest rates, credit spreads, market volatility and liquidity conditions. The fair value of the Bancorp’s investment securities portfolio generally decreases when interest rates increase or when credit spreads widen, and, conversely, increases when interest rates decrease or when credit spreads contract. Total net unrealized losses on the available-for-sale debt and other securities portfolio were$3.5 billion and $4.3 billion at June 30, 2025 and December 31, 2024, respectively.

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

(a)Taxable-equivalent yield adjustments included in the above table are 0.02%, 0.16% and 0.03% for securities with an average life between 5 and 10 years, average life greater than 10 years and in total, respectively.

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

(a)Taxable-equivalent yield adjustments included in the above table are 0.01%, 0.05%, 0.54% and 0.08% for securities with an average life between 1 and 5 years, average life between 5 and 10 years, average life greater than 10 years and in total, respectively.

(b)Includes a discount of $805 pertaining to the unamortized portion of unrealized losses on HTM securities.

Other Short-Term Investments

Other short-term investments have original maturities less than one year and primarily include interest-bearing balances that are funds on deposit at the FRB or other depository institutions. The Bancorp uses other short-term investments to manage liquidity risk. Other short-term investments were $13.0 billion at June 30, 2025, a decrease of $4.1 billion from December 31, 2024. This decrease was primarily due to deploying excess liquidity to fund loan growth and proactive liability management during the six months ended June 30, 2025.

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

Deposits

The Bancorp’s deposit balances represent an important source of funding and revenue growth opportunity. The Bancorp continues to focus on core deposit growth in its retail and commercial franchises by improving customer satisfaction, building full relationships and offering competitive rates and through its strategy of expanding retail presence in high-growth markets, such as in the Southeast. Average core deposits represented 77% and 76% of average total assets for the three months ended June 30, 2025 and 2024, respectively.

The following table presents the end of period components of deposits:

(a)Includes $1.2 billion and $1.3 billion of retail brokered CDs which are fully covered by FDIC insurance as of June 30, 2025 and December 31, 2024, respectively.

(b)Effective January 1, 2025, foreign office deposits are included in interest checking. Prior periods have been adjusted to conform to current period presentation.

Core deposits decreased $3.1 billion, or 2%, from December 31, 2024 primarily due to a decrease in transaction deposits. Transaction deposits decreased $3.2 billion, or 2%, from December 31, 2024 primarily driven by decreases in interest checking deposits and savings deposits, partially offset by an increase in demand deposits. Interest checking deposits decreased $3.8 billion, or 6%, from December 31, 2024 primarily as a result of lower balances per commercial customer account, a decrease in derivative collateral held as a result of lower interest rates as well as seasonal impacts which contributed to lower balances per consumer customer account. Savings deposits decreased $533 million, or 3%, from December 31, 2024 primarily due to lower average balances per consumer customer account partially driven by the impact of consumer preferences for products with higher offering rates. Demand deposits increased $1.1 billion, or 3%, from December 31, 2024 primarily due to higher balances per commercial customer account as well as growth in the number of accounts.

The following table presents the components of average deposits for the three months ended:

(a)Includes $1.1 billion and $3.8 billion of retail brokered CDs which are fully covered by FDIC insurance for the three months ended June 30, 2025 and 2024, respectively.

(b)Effective January 1, 2025, foreign office deposits are included in interest checking. Prior periods have been adjusted to conform to current period presentation.

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

On an average basis, core deposits decreased $1.1 billion, or 1%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to decreases in average transaction deposits and average CDs $250,000 or less. Average transaction deposits decreased $799 million, or 1%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily driven by decreases in average interest checking deposits and average savings deposits, partially offset by increases in average money market deposits and average demand deposits. Average interest checking deposits decreased $1.4 billion, or 2%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to lower average balances per commercial and consumer customer accounts and a decrease in derivative collateral held as a result of lower interest rates. Average savings deposits decreased $785 million, or 4%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to lower average balances per consumer customer account partially driven by the impact of consumer preferences for products with higher offering rates. Average money market deposits increased $785 million, or 2%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily as a result of higher average balances per consumer customer account due to higher offering rates. Average demand deposits increased $619 million, or 2%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily as a result of an increase in consumer customer accounts and average balances per consumer customer account. Average CDs $250,000 or less decreased $273 million, or 3%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to maturities which outpaced new issuances given current market conditions.

Average CDs over $250,000 decreased $2.5 billion, or 54%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to maturities of retail brokered CDs.

Contractual maturities

The contractual maturities of CDs as of June 30, 2025 are summarized in the following table:

(a)Includes CDs $250,000 or less and CDs over $250,000.

Deposit insurance

The FDIC generally provides a standard amount of insurance of $250,000 per depositor, per insured bank, for each account ownership category defined by the FDIC. As of June 30, 2025 and December 31, 2024, approximately $100.3 billion, or 61%, and $100.6 billion, or 60%, respectively, of the Bancorp’s domestic deposits were estimated to be insured. As of June 30, 2025 and December 31, 2024, approximately $63.8 billion and $66.5 billion, respectively, of the Bancorp’s domestic deposits were estimated to be uninsured. At June 30, 2025 and December 31, 2024, approximately $1.2 billion and $1.1 billion, respectively, of time deposits were estimated to be uninsured. Where information is not readily available to determine the amount of insured deposits, the amount of uninsured deposits is estimated, consistent with the methodologies and assumptions utilized in providing information to the Bank’s regulators.

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

Borrowings

The Bancorp accesses a variety of short-term and long-term funding sources. Borrowings with original maturities of one year or less are classified as short-term and include federal funds purchased and other short-term borrowings. Total average borrowings as a percent of average interest-bearing liabilities were 14% and 13% for the three months ended June 30, 2025 and 2024, respectively.

The following table summarizes the end of period components of borrowings:

Total borr owings decreased $928 million, or 5%, from December 31, 2024 primarily due to a decrease in other short-term borrowings. Other short-term borrowings decreased $1.1 billion from December 31, 2024 primarily due to proactive liability management resulting in lower other short-term investments. The level of other short-term borrowings can fluctuate significantly from period to period depending on funding needs and the sources that are used to satisfy those needs. For further information on the components of other short-term borrowings, refer to Note 10 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes components of average borrowings for the three months ended:

Total average borrowings increased $790 million, or 4%, for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to an increase in average other short-term borrowings partially offset by a decrease in average long-term debt. Average other short-term borrowings increased $1.8 billion for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to increased funding needs resulting from loan growth and a decrease in core deposits. Average long-term debt decreased $1.0 billion for the three months ended June 30, 2025 compared to the same period in the prior year primarily driven by redemptions or maturities of $1.8 billion of notes, a $1.5 billion reduction in long-term FHLB advances and $450 million of paydowns associated with loan securitizations since June 30, 2024. These decreases were partially offset by the issuance of $750 million of senior fixed-rate/floating-rate notes in September 2024, the issuance of $1.0 billion of senior fixed-rate/floating-rate notes in January 2025 and $154 million of fair value adjustments associated with hedged long-term debt since June 30, 2024. Information on the average rates paid on borrowings is discussed in the Net Interest Income subsection of the Statements of Income Analysis sectionof MD&A. In addition, refer to the Liquidity Risk Management subsection of the Risk Management section of MD&A for a discussion on the role of borrowings in the Bancorp’s liquidity management.