“Change can be challenging, but how a company deals with change determines its success and  ultimately its return to shareholders.” 

markets throughout 2010. As a result of market performance and continued investment in our sales force, investment advisory revenue increased more than $30 million compared with 2009. Additionally, assets under care were up 46 percent on a year-over-year basis, reflecting inflows from new business won in 2010. In terms of year-over- year revenue growth, Fifth Third’s retail brokerage segment outperformed its peers throughout 2010 as it has shifted its focus from a single product approach to a full-service advisory model. We believe this business is well-positioned for future market growth. 

Looking to 2011 and beyond, we expect to continue our organic growth strategy, with the ultimate goal of developing or maintaining a market leading position in a majority of our markets. We have found that in markets where we have a top three market share we consistently have higher deposits per branch, as well as more products per customer. Fifth Third is currently in the top three in just under half of our markets and we are targeting being in the top three in about two-thirds of our markets over the next several years. This strategy, coupled with our customer experience initiatives, should strengthen our position in the future. 

## Economic overview and outlook 

As we entered 2010 we started to see some improvement in economic trends and signs 

pointing to an economic recovery - although we expect it will take some time before we see meaningful, sustained economic growth. The U.S. Gross Domestic Product (GDP) has seen positive growth throughout the year. There has been some stabilization in home prices although values continue to decline in some markets and there has not been any substantial growth in most others. The unemployment rate also appears to have stabilized although it remains at elevated levels. All of this has contributed to uncertainty in the markets, yet despite this uncertainty we’ve demonstrated continued improvement through our profitability. 

Despite the challenging operating environment, we have continued to lend and have extended more than $86 billion of credit in 2010, an increase of 15 percent from the previous year. Our mortgage originations have outperformed the Mortgage Bankers Association (MBA) forecast each quarter in 2010. 

Commercial loan demand has started to pick up and credit line utilization appears to have stabilized. Customers remain cautious, although we continue to have optimistic conversations with our customers about business expansion and investment. We remain focused on developing and maintaining relationships with our customers so that as they are ready to invest in business expansion we are there to assist them with their plans. 

