U.s. Bancorp · NYSE:USB
U.s. Bancorp — Barclays Capital 2012 Global Financial Services Conference
26 slides from U.s. Bancorp's conference presentation, Sep 11, 2012
Slide 1: Barclays Capital 2012 Global Financial Services Conference
Barclays Capital 2012 Global Financial Services Conference Richard K. Davis Chairman, President and CEO September 11, 2012
Slide 2: Forward-looking statements
The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-l
Slide 3: U.S. Bancorp Overview, Capital Management, Investing for Growth
U.S. Bancorp Overview Capital Management Investing for Growth
Slide 4: 2Q12 Dimensions
2Q12 Dimensions * As of September 7, 2012 Overview U.S. Bancorp Businesses Asset Size $353 billion Deposits $241 billion Loans $216 billion Customers 17.4 million NYSE Traded USB Market Capitalization* $64 billion Founded 1863 Bank Branches 3,080 ATMs 5,085
Slide 5: Revenue Mix By Business Line
2Q12 YTD, taxable-equivalent basis Excluding securities gains (losses) net Revenue Mix By Business Line Fee Income / Total Revenue Diversification Consumer and Small Business Banking 47% Payment Services 26% Wealth Mgmt and Securities Services 8% Wholesale Banking and Commercial Real Estate 19% Over
Slide 6: U.S. Bancorp Revenue Mix Diversification
Source: FRY-9C and company reports, 2011 full year, USB excludes $46 million FCB gain and $263 million merchant processing settlement Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC U.S. Bancorp Revenue Mix Diversification Overview Peer Bank Average Revenue Mix Net Interest Income Payment
Slide 7: Performance Metrics
Source: SNL and company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Return on Average Assets Return on Average Common Equity Efficiency Ratio 2Q12 Full Year 2011 Performance Metrics Overview
Slide 8: Revenue Growth
* Gain on merchant processing agreement settlement $ in millions, taxable-equivalent basis, peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI, USB and WFC Prior 5 Years Year-Over-Year Growth 2.3% 4.4% 13.6% 8.9% 5.3% Prior 5 Quarters Year-Over-Year Growth 3.8% 4.5% 8.1% 9.1% 8.1% Revenue Growth USB
Slide 9: Loan and Deposit Growth
$ in billions Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI, USB and WFC 6% 12% 8% 4% 5% 17% 6% 11% 14% 18% 1% 7% 7% 20% 5% 11% 13% 5% 21% 15% Loans Deposits Prior 5 Years Ending Balances Year-Over-Year Growth Prior 5 Quarters Average Balances Year-Over-Year Growth Loan and Deposit Growth Overv
Slide 10: Credit Quality
Change in Net Charge-offs Change in Nonperforming Assets* Credit Quality $ in millions, linked quarter change * Excluding Covered Assets (assets subject to loss sharing agreements with FDIC), 1Q11 change in NPAs excludes FCB acquisition ($287 million) Overview NCO $ Change (Left Scale) NCO % Change
Slide 11: 3Q12 Update
3Q12 Update Overview Loan Growth Business Activity Net Interest Margin Notable Items
Slide 12: Capital Management
U.S. Bancorp Overview Capital Management Investing for Growth
Slide 13: Capital Position
$ in billions * Tier 1 common equity to risk-weighted assets approximated using proposed rules for the Basel III standardized approach released in June 2012 TARP Equity Tier 1 Capital Tier 1 Capital Ratio Tier 1 Common Ratio 2Q12 Tier 1 Common Ratio Basel III: 7.9%* Capital Position Capital Manageme
Slide 14: Capital Actions
Capital Actions Dividend increase and share repurchase authorization announced March 13th Annual dividend raised from $0.50 to $0.78, a 56% increase One year share repurchase authorization of 100 million shares 2Q12 Basel III Tier 1 common equity ratio approximately 7.9% Capital Management Reinvest
Slide 15: Debt Ratings
Debt Ratings Capital Management Holding company as of September 7, 2012 op=outlook positive on=outlook negative s=outlook stable wn=watch negative wp=watch positive
Slide 16: Investing for Growth
U.S. Bancorp Overview Capital Management Investing for Growth
Slide 17: Capital Expenditures and Technology Investments
Capital Expenditures Technology Investments Include: Internet and mobile banking channels Home mortgage origination platform Tier 4 data center Branch hardware and software Call center telephony Distribution channel integration Payment processing portal New collection and servicing platforms Investi
Slide 18: Mobile Banking / Payments
Mobile Banking / Payments Mobile banking adoption is quickly growing and U.S. Bank has become an industry leader Mobile payments is evolving rapidly with many and varied participants We continue to invest, innovate and add market-leading capabilities Investing for Growth Source: American Banker 2012
Slide 19: Mortgage Banking
Mortgage Banking Investing for Growth $ in billions, Servicing = mortgages serviced for others Source: Inside Mortgage Finance Originations Servicing USB Rank #25 Continue to build a strong mortgage origination and servicing business Provide industry leading client experience Maintain best in class
Slide 20: Payments and acquisitions
Payments TransCard's heavy truck fuel card network Financial institutions credit card portfolio of FIA Card Services Merchant processing portfolio of Santander-Mexico Merchant processing portfolio of Citizens National Bank Credit card portfolios from Citi Merchant processing portfolio of MB Financia
Slide 21: Growing Market Share
Middle Market Loan 19th 7th Bookrunner Investment Grade Loan 11th 6th Bookrunner Investment Grade Bond NA 10th Lead / Co-lead Source: Thomson Reuters based on number of issues 2011 2007 USB Market Rank Market Share Change Core Deposits 2.0% 2.6% Consumer Loans 1.8% 3.1% Mortgage Origination 0.7% 5.6
Slide 22: Summary: Long-term Goals and Current Status
Long-term Goals Optimal business line mix Investments generating positive returns Profitability: ROE 16-19% ROA 1.60-1.90% Efficiency Ratio low 50s Capital distributions: Earnings distribution 60-80% Summary Current Status Four simple and stable business lines Mortgage, wealth management, corporate
Slide 23: Momentum continues
Momentum continues y y y Allof us serving your usbancorp
Slide 24: Appendix
Appendix (Sbancorp.
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Appendix
Slide 26: Barclays Capital 2012 Global Financial Services Conference
Barclays Capital 2012 Global Financial Services Conference
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