Q - 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 has three reportable segments: Commercial Banking, Consumer and Small Business Banking and Wealth and Asset Management. Additional information on each segment is included in Note 19 of the Notes to Condensed Consolidated Financial Statements. Results of the Bancorp’s segments are presented based on its management structure and management accounting practices, which are specific to the Bancorp. Therefore, the financial results of the Bancorp’s 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.

The Bancorp manages interest rate risk centrally at the corporate level. By employing an FTP methodology, the 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.

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. In general, the charge rates on assets decreased since December 31, 2024 as they were affected by the prevailing level of interest rates and repricing characteristics of the portfolio. The credit rates for deposit products have also generally decreased since December 31, 2024 due to reduced liquidity premium assumptions and decreasing short-term interest rates.

For more information about the Bancorp’s FTP process and other allocation methodologies, refer to the Business Segment Review section included in MD&A of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024.

In January 2025, the Bancorp realigned its reporting structure and moved certain business banking customer relationships and relationship management personnel to the Consumer and Small Business Banking segment from the Commercial Banking segment to improve alignment of customer acquisition and servicing resources with customer product and service demand. In conjunction with this change, the loans, deposits and operating results associated with the affected business banking customer relationships were reclassified from the Commercial Banking segment to the Consumer and Small Business Banking segment effective January 1, 2025. This change was applied retrospectively to all prior periods presented.

The following table summarizes income (loss) before income taxes on an FTE basis by segment:

(a)General Corporate and Other is not a reportable segment and is presented for reconciliation purposes.

(b)Includes FTE adjustments of $5 and $6 for the three months ended June 30, 2025 and 2024, respectively, and $10 and $12 for the six months ended June 30, 2025 and 2024, respectively.

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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$3 and$4 for the three months ended June 30, 2025 and 2024, respectively, and$6 and$8 for the six months ended June 30, 2025 and 2024, respectively.

Income before income taxes on an FTE basis was $384 million and $646 million for the three and six months ended June 30, 2025, respectively, compared to $372 million and $796 million for the same periods in the prior year. The increase for the three months ended June 30, 2025 was primarily driven by a decrease in provision for credit losses, partially offset by a decrease in net interest income on an FTE basis and an increase in noninterest expense. The decrease for the six months ended June 30, 2025 was driven by a decrease in net interest income on an FTE basis, an increase in noninterest expense and a decrease in noninterest income, partially offset by a decrease in provision for credit losses.

Net interest income on an FTE basis decreased $39 million and $151 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by decreases in yields on average commercial loans and leases and decreases in FTP credits on deposits. These negative impacts were partially offset by decreases in FTP charges on commercial loans and leases, decreases in rates paid on average interest-bearing deposits and increases in the average balances of commercial loans and leases.

Provision for credit losses decreased $58 million and $49 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by decreases in the allocated provision for credit losses related to commercial criticized assets and the impact of net charge-offs on commercial loans and leases which decreased for the three months ended June 30, 2025 and increased for the six months ended June 30, 2025. Annualized net charge-offs as a percent of average portfolio loans and leases decreased to 35 bps for the three months ended June 30, 2025 compared to 45 bps for the same period in the prior year and increased to 33 bps for the six months ended June 30, 2025 compared to 31 bps for the same period in the prior year.

Noninterest income increased $1 million and decreased $20 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year. The increase for the three months ended June 30, 2025 was primarily driven by an increase in other noninterest income, partially offset by a decrease in commercial banking revenue. Other noninterest income increased $14 million for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to the recognition of an immaterial amount of net securities gains for the three months ended June 30, 2025 compared to net securities losses of $7 million for the same period in the prior

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

year as well as an increase in equity method investment income. The decrease for the six months ended June 30, 2025 was primarily driven by decreases in commercial banking revenue and capital markets fees, partially offset by an increase in commercial payments revenue. Refer to the Noninterest Income subsection of the Statement of Income Analysis section of MD&A for additional information on the fluctuations in commercial banking revenue, capital markets fees and commercial payments revenue.

Noninterest expense increased $8 million and $28 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by increases in other noninterest expense. Other noninterest expense increased $8 million and $36 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to increases in allocated expenses and credit valuation adjustments on derivatives associated with customer accommodation contracts, partially offset by decreases in leasing business expense. The increase for the six months ended June 30, 2025 compared to the same period in the prior year was partially offset by a decrease in compensation and benefits expense. Compensation and benefits expense decreased $10 million for the six months ended June 30, 2025 compared to the same period in the prior year primarily due to a decrease in performance-based compensation.

Average commercial loans and leases increased $2.0 billion and $1.5 billion for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to increases in average commercial mortgage loans, average commercial leases and average commercial and industrial loans. Refer to the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A for additional information on these fluctuations.

Average deposits decreased $390 million and $826 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to decreases in average demand deposits, partially offset by increases in average interest checking deposits. Average demand deposits decreased $422 million and $1.1 billion for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily as a result of lower average balances per customer account. Average interest checking deposits increased $122 million and $229 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by increases in balances associated with embedded payments products.

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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:

Income before income taxes was $648 million and $1.2 billion for the three and six months ended June 30, 2025, respectively, compared to $648 million and $1.3 billion for the same periods in the prior year. Income before income taxes was flat for the three months ended June 30, 2025 compared to the same period in the prior year as increases in noninterest income and net interest income were offset by increases in provision for credit losses and noninterest expense. The decrease for the six months ended June 30, 2025 was driven by a decrease in net interest income and increases in provision for credit losses and noninterest expense, partially offset by an increase in noninterest income.

Net interest income decreased $172 million for the six months ended June 30, 2025 compared to the same period in the prior year primarily driven by a decrease in FTP credits on deposits and an increase in FTP charges on loans and leases. These negative impacts were partially offset by increases in the average balances of and yields on loans and leases as well as a decrease in rates paid on average interest-bearing deposits.

Provision for credit losses increased $14 million for both the three and six months ended June 30, 2025 compared to the same periods in the prior year primarily driven by increases in net charge-offs on average commercial and industrial loans. Annualized net charge-offs as a percent of average portfolio loans and leases increased to 64 bps and 67 bps for the three and six months ended June 30, 2025, respectively, compared to 61 bps and 66 bps for the same periods in the prior year.

Noninterest income increased $18 million and $27 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by increases in wealth and asset management revenue, mortgage banking net revenue and

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

consumer banking revenue. Wealth and asset management revenue increased $4 million and $11 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to increases in personal asset management revenue and brokerage income. Refer to the Noninterest Income subsection of the Statement of Income Analysis section of MD&A for additional information on the fluctuations in mortgage banking net revenue and consumer banking revenue.

Noninterest expense increased $8 million and $6 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by increases in marketing expense. Marketing expense increased $12 million and $8 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to increased spend on customer acquisition activities.

Average consumer loans increased $2.9 billion and $2.5 billion for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to increases in average indirect secured consumer loans, average residential mortgage loans, average solar energy installation loans and average home equity, partially offset by decreases in average other consumer loans. Refer to the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A for additional information on the fluctuations in average indirect secured consumer loans, average residential mortgage loans, average solar energy installation loans, average home equity and average other consumer loans. Average commercial loans increased $960 million and $910 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by loan originations exceeding payoffs.

Average deposits increased $477 million and $798 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by increases in average money market deposits and average demand deposits, partially offset by decreases in average savings deposits. Average money market deposits increased $829 million and $1.3 billion for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily as a result of higher average balances per customer account due to higher offering rates. Average demand deposits increased $631 million and $666 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily as a result of an increase in customer accounts and average balances per customer account. Average savings deposits decreased $619 million and $799 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to lower average balances per customer account partially driven by the impact of consumer preferences for products with higher offering rates.

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:

Income before income taxes was $65 million and $116 million for the three and six months ended June 30, 2025, respectively, compared to $59 million and $117 million for the same periods in the prior year. The increase for the three months ended June 30, 2025 was primarily driven by increases in net interest income and noninterest income, partially offset by an increase in noninterest expense. The decrease for the six months ended June 30, 2025 was primarily driven by an increase in noninterest expense and a decrease in net interest income, partially offset by an increase in noninterest income.

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

Net interest income increased $3 million and decreased $6 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year. The increase for the three months ended June 30, 2025 was primarily driven by a decrease in rates paid on average deposits, partially offset by a decrease in FTP credits on deposits. The decrease for the six months ended June 30, 2025 was primarily driven by a decrease in FTP credits on deposits, partially offset by a decrease in rates paid on average deposits.

Noninterest income increased $3 million and $11 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to increases in wealth and asset management revenue, which increased $4 million and $8 million for the three and six months ended June 30, 2025, respectively, primarily driven by increases in personal asset management revenue.

Noninterest expense increased $2 million and $8 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily due to increases in compensation and benefits expense, which increased $3 million for both the three and six months ended June 30, 2025 compared to the same periods in the prior year primarily driven by increases in base compensation. The increase for the six months ended June 30, 2025 also included an increase in other noninterest expense, which increased $5 million compared to the same period in the prior year and included an increase in allocated expenses.

Average loans and leases increased $501 million and $337 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by increases in average commercial and industrial loans, average other consumer loans and average commercial mortgage loans as loan production exceeded payoffs.

Average deposits decreased $464 million and $191 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by decreases in average interest checking deposits and average savings deposits as a result of lower average balances per customer account, partially offset by increases in average CDs and average demand deposits.

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

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 its segments.

Net interest income on an FTE basis increased $139 million and $488 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by decreases in FTP credits on deposits allocated to the segments and decreases in interest expense on retail brokered CDs and long-term debt, partially offset by decreases in interest income on other short-term investments and decreases in FTP charges on loans and leases allocated to the segments. The decrease in FTP charges allocated to the segments was driven by decreases in market interest rates, primarily affecting the variable-rate asset portfolios. The decrease in FTP credits allocated to the segments was driven by lower FTP credit rates paid on deposits as a result of lower market interest rates and reduced liquidity premium assumptions. Under the Bancorp’s internal reporting methodology, the Bancorp insulates the 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 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 $12 million and $22 million for the three and six months ended June 30, 2025, respectively, compared to a benefit from credit losses of $110 million and $171 million for the same periods in the prior year. The provision for credit losses for the three and six months ended June 30, 2025 was primarily driven by decreases in allocations to the segments.

Noninterest income increased $33 million and $20 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year primarily driven by decreases in the loss on the swap associated with the sale of Visa, Inc. Class B Shares and included the impact of net securities gains which increased for the three months ended June 30, 2025 and decreased for the six months ended June 30, 2025.

Noninterest expense increased $25 million and decreased $36 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year. The increase for the three months ended June 30, 2025 was primarily driven by increases in compensation and benefits expense and technology and communications expense, partially offset by the expense recognized in 2024 associated with an FDIC special assessment and an increase in corporate overhead allocations from General Corporate and Other to the other segments. The decrease for the six months ended June 30, 2025 was primarily driven by an increase in corporate overhead allocations from General Corporate and Other to the other segments and the expense recognized in 2024 associated with an FDIC special assessment, partially offset by increases in compensation and benefits expense and technology and communications expense.