U.s. Bancorp · NYSE:USB
U.s. Bancorp — The CFA Society of Minnesota Investor Conference (August 2013)
30 slides from U.s. Bancorp's conference presentation, Aug 1, 2013
Slide 1: The CFA Society of Minnesota Investor Conference
The CFA Society of Minnesota Investor Conference John ElmoreVice Chairman Community Banking and Branch DeliveryKent StoneVice Chairman Consumer Banking Sales and Support August 1, 2013
Slide 2: Forward-looking Statements and Additional Information
Forward-looking Statements and Additional Information 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 st
Slide 3: U.S. Bancorp Overview, Capital Management, Consumer and Small Business Banking, Summary
U.S. Bancorp OverviewCapital ManagementConsumer and Small Business BankingSummary
Slide 4: U.S. Bancorp
U.S. Bancorp International ‘Consumer & Business Banking Wholesale Banking Payments and Corporate Trust, ‘and Wealth Management ‘nd Wealth Management & Securities Services bancorp
Slide 5: U.S. Bancorp Dimensions
U.S. Bancorp Dimensions * As of July 26, 2013 Asset Size $353 billionDeposits $252 billionLoans $228 billionCustomers 17.6 millionNYSE Traded USBMarket Capitalization* $69 billionFounded 1863Bank Branches 3,087ATMs 5,032 2Q13 Dimensions
Slide 6: U.S. Bancorp Dimensions
U.S. Bancorp Dimensions Source: company reports, SNL and FactSetAssets and deposits as of 2Q13, market value as of July 26, 2013
Slide 7: Diversification
Diversification 2012 full year, taxable-equivalent basisExcluding securities gains (losses) net Revenue MixBy Business Line (CHART) Consumer andSmall Business Banking47% Payment Services26% Wealth Mgmt and Securities Services8% Wholesale Banking and Commercial Real Estate19% Fee Income / Total Reven
Slide 8: Performance Metrics
Performance Metrics Return onAverage Assets Return on AverageCommon Equity Efficiency Ratio Full Year 2012 2Q13 YTD (CHART) (CHART) (CHART) (CHART) (CHART) (CHART) Source: SNL and company reportsPeer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC
Slide 9: Loan and Deposit Growth
Loan and Deposit Growth $ in billions (CHART) (CHART) 6% 7% 8% 6% 9% 5% 11% 11% 7% 4% 4% 11% 13% 12% 10% 15% 7% 12% 24% Loans Deposits Prior 5 YearsAverage BalancesYear-Over-Year Growth Prior 5 QuartersAverage BalancesYear-Over-Year Growth 7%
Slide 10: Revenue Growth
Revenue Growth $ in millions, taxable-equivalent basis (CHART) (CHART) Prior 5 YearsYear-Over-Year Growth 4.4% 13.6% 8.9% 5.3% 6.2% Prior 5 QuartersYear-Over-Year Growth 8.1% 8.0% 0.2% (1.1%) (2.4%) USB RecordRevenue 2012
Slide 11: Credit Quality
Credit Quality * Excluding Covered Assets (assets subject to loss sharing agreements with FDIC) ** Related to a regulatory clarification in the treatment of residential mortgage and other consumer loans to borrowers who have exited bankruptcy but continue to make payments on their loans *** Excludin
Slide 12: U.S. Bancorp Overview, Capital Management, Consumer and Small Business Banking, Summary
U.S. Bancorp OverviewCapital ManagementConsumer and Small Business BankingSummary
Slide 13: Capital Management
Capital Management $ in billions; SIFI = systemically important financial institutions* Estimated using final rules for Basel III standardized approach released July 2013 (CHART) 2Q13 Tier 1Common RatioBasel III:8.6%* Tier 1 Common RatioBasel III Target:Proposed Minimum 7.0%+ Estimated Domestic SIFI
Slide 14: Capital Distributions
Capital Distributions Dividend increase announced June 18thAnnual dividend increased from $0.78 to $0.92, an 18% increaseOne year authorization to repurchase up to $2.25 billion of outstanding stock effective April 1, 2013Returned 73% of earnings to shareholders during 2Q13 Reinvest andAcquisitions
Slide 15: Prudent Investment Strategy
Prudent Investment Strategy $ in billionsApproved by Capital Expenditure Committee Mortgage bankingIn-store and on-site branchesWholesale banking expansionAscent Private Capital ManagementInternational payments expansionInternet and mobile banking channelsTier 4 data centerCall center telephonyDistr
Slide 16: Prudent Investment Strategy
Prudent Investment Strategy PaymentsCollective Point of Sale Solutions LtdFSV Payment SystemsTransCard's heavy truck fuel card networkFinancial institutions credit card portfolio of FIA Card ServicesMerchant processing portfolio of Santander-MexicoMerchant processing portfolio of Citizens National B
Slide 17: Top of Class Debt Ratings
Holding company as of July 26, 2013 Top of Class Debt Ratings op=outlook positiveon=outlook negatives=outlook stablewn=watch negativewp=watch positive
Slide 18: U.S. Bancorp Overview, Capital Management, Consumer and Small Business Banking, Summary
U.S. Bancorp OverviewCapital ManagementConsumer and Small Business BankingSummary
Slide 19: Consumer and Small Business Banking
Full year 2012, excluding Treasury and Corporate Support Contribution to U.S. Bancorp Revenue Pre-provision Income Loans Deposits 47% 39% 56% 50% Revenue Mix In-store and On-site Banking6% MetropolitanBanking24% CommunityBanking25% MortgageBanking32% ConsumerLending13% Consumer and Small Business Ba
Slide 20: Scale and Market Share
Scale25 contiguous state distribution footprint#4 branch network in U.S#1 in-store and on-site branch network in U.S. #3 U.S. mortgage originator#3 Small Business Administration lenderLeading auto lender Source: SNL, Mortgagestats (full year 2012) and U.S. Small Business Administration Scale and Mar
Slide 21: 2Q13 Branches
2Q13 Branches Metro traditional offices Community traditional offices In-Store Offices On-Site Offices Branch Distribution 3,087 U.S. Bank branch offices5,032 U.S. Bank branded ATMs #4 branch network in U.S. with 25 contiguous state distribution footprint#1 in-store and on-site branch network
Slide 22: The Right Delivery Model
The Right Delivery Model Community Banking 1,108 Branches Full consumer and business banking services delivered through a relationship management model Metropolitan Banking 1,114 Branches Full consumer and small business banking services delivered through a relationship management model In-store/On-
Slide 23: Mortgage Banking
Mortgage Banking $ in billionsSource: Mortgagestats Source: Mortgagestats Source: Mortgagestats (CHART) Mortgage Originations Mortgages Servicedfor Others USB Rank#25 USB Rank#3 USB Rank#5 USB Rank#16 Continue to build a strong mortgage origination and servicing business through:Industry leading cli
Slide 24: Auto Lending
Auto Lending $ in millions Continued growth in auto loans and leases driven by high-quality originations (Indirect channel weighted average FICO 767, Direct channel weighted average FICO 750, Leases weighted average FICO 769)Low net charge-offs and delinquencies continue as used vehicle values remai
Slide 25: U.S. Bancorp Overview, Capital Management, Consumer and Small Business Banking, Summary
U.S. Bancorp OverviewCapital ManagementConsumer and Small Business BankingSummary
Slide 26: Summary
Summary Long-term GoalsOptimal business line mixInvestments generating positive returns Profitability:ROE 16-19%ROA 1.60-1.90%Efficiency Ratio low 50sCapital distributions:Earnings distribution 60-80% Current StatusFour simple and stable business linesMortgage, wealth management, corporate banking,
Slide 27: Appendix
Appendix The CFA Society of Minnesota Investor Conference
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 30: The CFA Society of Minnesota Investor Conference
The CFA Society of Minnesota Investor Conference
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