Fifth Third Bancorp

Strong market position in the Midwest, particularly in Ohio, Michigan, and Indiana Substantial loan and business line diversification Relatively high proportion of revenue from fee-based businesses, which aids revenue stability A recent, significant increase in classified and criticized loans Some exposure, though declining, to industries affected by COVID-19 shutdowns Steeper-than-peers decline in the net interest margin from low rates and balance sheet liquidity The stable outlook on Fifth Third Bancorp reflects S&P Global Ratings' expectation that over the next two years Fifth Third will remain resilient to the economic risks posed by the COVID-19 pandemic, given the bank's diversified loan portfolio, improved risk management since the last crisis, and solid allowance, capital, and liquidity positions. We could lower the ratings

...Steeper-than-peers decline in the net interest margin from low rates and balance sheet liquidity Outlook: Stable The stable outlook on Fifth Third Bancorp reflects S&P Global Ratings' expectation that over the next two years Fifth Third will remain resilient to the economic risks posed by the COVID-19 pandemic, given the bank's diversified loan portfolio, improved risk management since the last crisis, and solid allowance, capital, and liquidity positions. We could lower the ratings on Fifth Third if asset credit quality or capital ratios decline substantially. An upgrade is unlikely in the next two years, given the uncertain and distressed economic conditions. However, over time, we could raise the ratings if we believe that the institution's franchise strength, financial results, and risk profile become commensurate with higher-rated peers....

Full Report