Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Citigroup Financial Services Conference 2007
17 slides from Fifth Third Bancorp's conference presentation, Jan 30, 2007
Slide 1: Citigroup Financial Services Conference
EXHIBIT 99.1 Citigroup Financial Services Conference Kevin Kabat, President Fifth Third Bank | All Rights Reserved | Citigroup | January 30, 2007
Slide 2: Agenda
Agenda Strategic focus Growth opportunities — De novos — Business banking — Middle market — Credit cards Enhancing the customer experience — Sales management — Customer service and satisfaction Summary 2 Fifth Third Bank | All Rights Reserved | Citigroup | January 30, 2007
Slide 3: Strategic focus: 2007–2009
Strategic focus: 2007–2009 1. Deliver growth company performance 2. Enhance the customer experience 3. Increase employee engagement 4. Institutionalize enterprise operational excellence 3 Fifth Third Bank | All Rights Reserved | Citigroup | January 30, 2007
Slide 4: Growth opportunities
Growth opportunities Retail bank • De novo – accelerate new branch openings • Small business banking – leverage existing distribution channels Commercial bank • Middle market expansion – expand products, services, and sales • Healthcare – enhance product offerings, specialized channel • Commercial n
Slide 5: De novos: value creation
De novos: value creation Core competency: — Market segmentation analysis and predictive modeling techniques have allowed for repeatable success over the last three years De novos versus acquisitions: — Estimated industry IRRs*: – acquisitions = 12-15% – de novos = 18-20% — FITB: – de novos = 20%+ (e
Slide 6: 2005–2006 de novo growth performance (full-service branches)
2005–2006 de novo growth performance (full-service branches) Top 10 banks by average deposit growth per new branch, within markets where Fifth Third opened branches between 6/04 and 6/05 Avg. Branch Deposit 6/06 Total 6/05 Total Number of Growth Holding Company Deposits Deposits Branches 05-06 Rank
Slide 7: Performance threshold: achieving critical mass
Performance threshold: achieving critical mass Relationship: location share to deposit share Fifth Third critical mass curve, 2006 Critical Mass Threshold = 12% Evansville 35.0% 30.0% Cincinnati Naples Dayton Kalamazoo 25.0% Toledo Gr Rapids 20.0% Lexington Columbus 15.0% Ft Myers Louisville Chicago
Slide 8: Deposit gathering: overall success
Deposit gathering: overall success #3 among large cap banks 15.4% 10.1% 7.5% 7.4% 6.2% 5.8% 5.5% 5.4% 4.9% 4.3% 2.9% 2.3% 0.6% -0.7% -1.4% -2.0% -5.2% June 2005 to June 2006 (FDIC data) Additionally: 20 of 21* Fifth Third affiliate banks grew deposits (all 21 excluding >$1B branches) 17 of 21* affil
Slide 9: Business banking: focus on the customer
Business banking: focus on the customer Business banking customers Business banking accounts 350 1200 300 1000 …could Assigning 80% 250 represent a of existing 800 200 customers… 60% increase 600 in accounts 150 100 400 50 unassigned to banker 200 assigned to banker 0 0 2006 2009 2006 2009 Deploy mo
Slide 10: Middle market: full-service orientation
Middle market: full-service orientation # of Businesses with Sales of: $10mm to $100mm to $250mm to Affiliate $100mm $250mm $500mm Total Chicago 5,085 405 148 5,638 5/3 Middle Market Eastern Michigan 2,164 187 60 2,411 South Florida 1,662 110 35 1,807 Share Northeastern Ohio 1,532 98 33 1,663 lendin
Slide 11: Credit cards: capturing our fair share
Credit cards: capturing our fair share 11th largest bank, 24th largest credit card issuer We’ve underinvested in the credit card business relative to competitors Significant opportunity in high risk adjusted return business — Improve retail production by deploying sales technologies to enhance ease
Slide 12: Reengineering retail sales management
Reengineering retail sales management PERFORMANCE THEME MANAGEMENT FOCUS Elimination of non-value added activities to increase FTE capacity for sales Reduction of non- Re-engineer or automate for maximum sales effectiveness sales activities in banking centers Consolidate in areas outside of the Fina
Slide 13: Example: automated individual reporting
Example: automated individual reporting Phase I (Jan ‘07) report style Report Highlights •Present Key Performance Metrics (KPI’s) with daily, WTD, MTD, QTD, YTD views •Collect data supporting the KPI’s at employee level plus rollups to bank center, affiliate, region and Bancorp levels •Enable stack
Slide 14: Fifth Third: relative service performance
Fifth Third: relative service performance 100% th Goal: 75 percentile 2005-2006 Key Actions Implemented 80% 67% 68% Improvements to collection process 58% 60% 54% 51% Reduced daily overdraft fees 43% Fee waiver guidelines 51% 40% 29% 2005 Recently implemented: 45% 36% 21% 2006 20% Call center transf
Slide 15: Customer experience opportunity
Customer experience opportunity One percent improvement in customer retention represents $7 million net income improvement $63MM Current Customer Experience 5% Current retail DDA attrition 16% Advice level satisfaction 50% Ineffective problem management $28MM 4% Fully Satisfied Customers Are 1.7x mo
Slide 16: Fifth Third: building a better tomorrow
Fifth Third: building a better tomorrow Balancing growth and profitability Capitalizing on strengths and developing plans to address areas of weakness Communicating clearly with investors Delivering on promises Returning to above-par performance and shareholder returns 16 Fifth Third Bank | All Righ
Slide 17: Cautionary statement
Cautionary statement This report may contain forward-looking statements about the Registrant and/or the company as combined with acquired entities within the meaning of Sections 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated the reunder, and 21E of the Securities Exchange Ac
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