Summary: Fifth Third Bancorp

Strong market position in the Midwest and select Southeastern metropolitan areas Solid earnings platform, reflecting the bank's good business diversity Significant unrecognized value from partial ownership of Vantiv Holding LLC Historically weak asset quality, which has led to elevated restructured loans Relatively large portfolio of shared national credits Below-average earnings quality The stable outlook on Fifth Third Bancorp reflects S&P Global Ratings' expectation that the institution's diverse business activities will continue to generate solid pretax preprovision (PTPP) earnings. In addition, we expect that Fifth Third's asset quality will remain good, with slowly declining adjusted nonperforming assets (NPAs; including restructured loans and loans 90 days past due and still accruing) and net charge-offs (NCOs) of less than 60 basis points (bps)

...Outlook: Stable The stable outlook on Fifth Third Bancorp reflects S&P Global Ratings' expectation that the institution's diverse business activities will continue to generate solid pretax preprovision (PTPP) earnings. In addition, we expect that Fifth Third's asset quality will remain good, with slowly declining adjusted nonperforming assets (NPAs; including restructured loans and loans 90 days past due and still accruing) and net charge-offs (NCOs) of less than 60 basis points (bps) of loans, on average, per quarter. Lastly, we expect that Fifth Third will sustain an S&P Global Ratings' risk-adjusted capital (RAC) ratio of approximately 8.50%-9% over the next 18-24 months, comfortably within the range we consider adequate (7%-10%). We could lower the ratings if asset quality worsens. For example, we could lower the rating if Fifth Third's adjusted NPA ratio were to increase significantly. We could also lower the rating if the growth of commercial and industrial (C&I) loans leads to a...

Summary