Fifth Third Bancorp Announces 2011 Net Income Of $1.3 Billion

Net gains on investment securities were $5 million in the fourth quarter of 2011, compared with investment securities gains of $26 million in the previous quarter and $21 million in the fourth quarter of 2010.

Noninterest Expense

			For the Three Months Ended										% Change
			December		September		June		March		December
			2011		2011		2011		2011		2010		Seq			Yr/Yr
	Noninterest Expense ($ in millions)
	Salaries, wages and incentives		$393		$369		$365		$351		$385		7	%		2	%
	Employee benefits		84		70		79		97		73		21	%		16	%
	Net occupancy expense		79		75		75		77		76		5	%		4	%
	Technology and communications		48		48		48		45		52		-			(8	%)
	Equipment expense		27		28		28		29		32		(3	%)		(13	%)
	Card and processing expense		28		34		29		29		26		(17	%)		9	%
	Other noninterest expense		334		322		277		290		343		4	%		(3	%)
	Total noninterest expense		$993		$946		$901		$918		$987		5	%		1	%

Noninterest expense of $993 million increased 5 percent from the third quarter of 2011 and increased 1 percent from the fourth quarter of 2010. Fourth quarter 2011 expenses included a $14 million addition to litigation reserves related to bankcard association membership and $5 million in other litigation reserve additions. Third quarter 2011 expenses included $28 million of costs related to the termination of certain FHLB borrowings and hedging transactions. Fourth quarter 2010 included $17 million of expenses related to the termination of $1 billion in FHLB funding. Excluding these items, noninterest expense increased 6 percent from the third quarter of 2011 and was flat compared with the fourth quarter of 2010, driven by higher compensation and benefits expense, with the former driven by higher loan volume fulfillment costs and incentives, particularly mortgage, as well as the effect of a higher stock price on long term equity awards, and the latter driven by $6 million of annual pension settlement expense.

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