MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Comparison of 2009 with 2008  Comparison of 2010 with 2009  General Corporate and Other  40 Fifth Third Bancorp The results for 2010 were impacted by $789 million in income due  to a reduction in the ALLL during 2010 compared to $967 million  of provision expense recorded in excess of net charge-offs during  2009. The decrease in provision expense was due to a decrease in  nonperforming assets and improvement in credit trends as general  economic conditions began to show signs of moderation. The  2010 results were also impacted by $152 million of noninterest  income recognized from the settlement of litigation associated  with one of the Bancorp’s BOLI policies and $25 million of  noninterest expense from related legal fees associated with the  settlement. The results for 2009 were primarily impacted by a $1.8  billion pre-tax gain ($1.1 billion after tax) resulting from the  Processing Business Sale in the second quarter of 2009. Results  for 2009 also included a $244 million gain on the sale of the  Bancorp’s Visa Inc., Class B shares and a $73 million benefit from  the reversal of the Visa litigation reserve, an $18 million benefit in  noninterest income due to mark-to-market adjustments on  warrants and put options related to the Processing Business Sale  The results for 2009 were primarily impacted by the previously  mentioned Processing Business Sale, gain on the sale of the  Bancorp’s Visa Inc., Class B shares and benefit from the reversal  of the Visa litigation reserve, mark-to-market adjustments on  warrants and put options related to the Processing Business Sale,  and the tax benefit as a result of the Bancorp’s decision to  surrender one of its BOLI policies, partially offset by charges  reflecting reserves recorded in the connection with the intent to  surrender the policy. The results for 2008 were impacted by $273  million in income related to the redemption of a portion of Fifth  Third’s ownership interest in Visa, $99 million in net reductions to  noninterest expense to reflect the reversal of a portion of the  litigation reserve related to the Bancorp’s indemnification of Visa,  $229 million after-tax impact of charges relating to certain  leveraged leases, and $215 million in charges related to reduction  in the cash surrender value of one of the Bancorp’s BOLI policies.  Provision expense in excess of net charge-offs decreased from  $1.9 billion in 2008 to $967 million in 2009. Dividends on  preferred stock increased from $67 million in 2008 to $226 million  in 2009.  and a $106 million tax benefit as a result of the Bancorp’s decision  to surrender one of its BOLI policies. These benefits were  partially offset by a $54 million BOLI charge reflecting reserves  recorded in the connection with the intent to surrender the policy.  Additionally, the Bancorp recorded dividends on preferred stock  of $226 million during 2009 compared to $250 million during  2010.  General Corporate and Other includes the unallocated portion of  the investment securities portfolio, securities gains and losses,  certain non-core deposit funding, unassigned equity, provision  expense in excess of net charge-offs or income from the reduction  of ALLL, the payment of preferred stock dividends, historical  financial information for the merchant acquiring and financial  institutions processing businesses and certain support activities  and other items not attributed to the business segments. 