MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Investment Advisors  TABLE 17: INVESTMENT ADVISORS  Comparison of 2009 with 2008 Comparison of 2010 with 2009  Investment Advisors provides a full range of investment alternatives for individuals, companies and not-for-profit organizations. Investment Advisors is made up of four main  businesses: FTS, an indirect wholly-owned subsidiary of the  Bancorp; FTAM, an indirect wholly-owned subsidiary of the  Bancorp; Fifth Third Private Bank; and Fifth Third Institutional  Services. FTS offers full service retail brokerage services to  individual clients and broker dealer services to the institutional  marketplace. Fifth Third Asset Management, Inc. provides asset  management services and also advises the Bancorp’s proprietary  family of mutual funds. Fifth Third Private Banking offers holistic  strategies to affluent clients in wealth planning, investing,  insurance and wealth protection. Fifth Third Institutional Services  provide advisory services for institutional clients including states  and municipalities. The following table contains selected financial  data for the Investment Advisors segment.  compared to 2009 due to increases in securities and broker  income, private client service income and institutional income.  Securities and broker income increased $18 million, or 17%, from  2009 due to continued expansion of the sales force and effective  sales management, resulting in strong net asset and account  growth. Private client service income increased $11 million, or  eight percent, and institutional income increased $5 million, or  seven percent, from 2009 due to increases in the market value of  managed assets and an increase in transaction activity. Assets  under care increased from $182 billion at December 31, 2009 to  $266 billion at December 31, 2010 and managed assets increased  from $24 billion at December 31, 2009 to $25 billion at December  31, 2010. Noninterest expense increased $51 million, or 14%, compared to 2009 due to an increase in salaries, incentives and  benefits and other noninterest expense. Salaries, incentives and  benefits increased $16 million, or 11%, primarily due to the  expansion of the sales force and compensation related to  improved performance in investment advisory revenue related  fees. Other noninterest expense increased $35 million, or 16%,  primarily due to an increase in expenses associated with the  revenue sharing agreement between Investment Advisors and  Branch Banking. Average loans and leases decreased $538 million, or 17%,  from 2009 primarily due to a $418 million decrease in commercial  loans as a result of a decrease in demand and decrease in line  utilization rates among the Bancorp’s high net worth customers  due to excess liquidity. Average core deposits increased $958  million, or 19%, compared to 2009 primarily due to growth in  interest checking and foreign deposits as customers have opted to  maintain excess funds in liquid transaction accounts as rates  remained near historic lows.  Net income decreased $45 million in 2009, or 46%, compared to  2008 as decreases in net interest income and investment advisory  revenue were only partially offset by lower salaries and benefit  expenses.  Noninterest income decreased $50 million in 2009 compared  to 2008, as investment advisory revenue decreased $39 million,  with private client services income declining $14 million and  institutional income declining $13 million, driven by lower asset  values on assets managed compared to 2008. Also included within  investment advisory revenue is securities and brokerage income,  which declined $10 million, or nine percent, compared to 2008,  reflecting a decline in transaction-based revenue as well as the  continued shift in assets from equity products to lower yielding  money market funds due to market volatility through much of  2009.  Net income decreased $24 million, or 45%, compared to 2009 as a  decrease in net interest income and an increase in noninterest  expense were partially offset by a decrease in provision for loan  and lease losses and an increase in investment advisory revenue.  Net interest income decreased $19 million, or 12%, from 2009  due to a decrease in average loans and leases partially offset by an  increase in the yield on interest earning assets. Provision for loan and lease losses decreased $13 million, or  23%, from 2009. Net charge-offs as a percent of average loans  and leases decreased from 183 bp in 2009 to 171 bp in 2010  reflecting moderation of general economic conditions during  2010.  Noninterest income increased $20 million, or six percent,  compared to 2009 due to an increase in investment advisory  revenue partially offset by a decrease in other noninterest income.  Investment advisory revenue increased $31 million, or 10%,  Fifth Third Bancorp 39  For the years ended December 31 ($ in millions)  2010  2009 2008 Income Statement Data  Net interest income $138  157 191 Provision for loan and lease losses  44  57 49 Noninterest income:  Investment advisory revenue  346  315 354 Other noninterest income 10  21 32 Noninterest expense:  Salaries, incentives and benefits  156  140 159 Other noninterest expense  249  214 217 Income before taxes  45  82 152 Applicable income tax expense 16  29 54 Net income  $29  $53 98 Average Balance Sheet Data  Loans and leases  $2,574  3,112 3,527 Core deposits  5,897  4,939  4,666