U.s. Bancorp · NYSE:USB
U.s. Bancorp — Barclays Americas Select Franchise Conference 2015
34 slides from U.s. Bancorp's conference presentation, May 18, 2015
Slide 1: Barclays Americas Select Franchise Conference 2015
Exhibit 99.1 Barclays Americas Select Franchise Conference 2015 Andy Cecere Vice Chairman and COO Kathy Rogers Vice Chairman and CFO May 19, 2015
Slide 2: Forward-looking Statement and Additional Information
Forward-looking Statement 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 sta
Slide 3: Agenda
Agenda Overview Business Lines Financial Management Capital Management Long-term Goals 2Q15 Update
Slide 4: National international
National international Regional Consumer & Business Banking Wholesale Bani Payments and Secu and Wealth Management and Wealth Management & Securities Services i + Wealth Management offices in New York ity, Wiimington, Delaware, and Naples and jp Paim Beach, Ie Florida :
Slide 5: U.S. Bancorp European Presence
U.S. Bancorp European Presence European Offices Elavon Corporate Trust/Fund Services Cherrywood Dublin Arklow London Diegem Frankfurt Oslo Warsaw Madrid Watford
Slide 6: U.S. Bancorp Dimensions
U.S. Bancorp Dimensions Assets $410 billion Deposits $287 billion Loans $245 billion Customers 18.5 million NYSE Traded USB Market Capitalization $78 billion Founded Bank Branches 3,172 ATMs 5,016 1Q15 Dimensions As of 3/31/15, market capitalization as of 5/8/15
Slide 7: Industry Position
5 U.S. Bancorp 410 5 U.S. Bancorp 287 5 U.S. Bancorp 78 Industry Position Source: company reports, SNL and FactSet Assets and deposits as of 3/31/15, market value as of 5/8/15 U.S. U.S. U.S. Rank Company $ Billions Rank Company $ Billions Rank Company $ Billions J.P. Morgan $2,577 J.P. Morgan $1,368
Slide 8: Agenda
Agenda Overview Business Lines Financial Management Capital Management Long-term Goals 2Q15 Update
Slide 9: Business Mix
Business Mix Payment Services Retail Payment Solutions Corporate Payment Systems Global Merchant Acquiring Wealth Management and Securities Services Wealth Management Asset Management Corporate Trust Services Fund Services Institutional Trust & Custody Consumer and Small Business Banking Branch Bank
Slide 10: Payment Services
Global Merchant Acquiring 30% Payment Services Business Line Summary Provides a full suite of payment processing services to consumers, small businesses, corporations and merchants – a unique position versus other banks Expanding internationally in merchant acquiring through continued investment in
Slide 11: Wealth Management and Securities Services
Fund Services 19% Wealth Management and Securities Services Business Line Summary Delivers a full array of wealth management services through differentiated service delivery models to address the needs of a broad range of clients Leading provider of corporate trust services in the U.S. with a growin
Slide 12: Consumer and Small Business Banking
Consumer and Small Business Banking Business Line Summary Provides a full suite of banking products and services to consumer and small business customers across 25-state branch footprint Differentiating U.S. Bank from competitors through continued improvement in the customer experience, investments
Slide 13: Wholesale Banking and Commercial Real Estate
Commercial Real Estate 20% Wholesale Banking and Commercial Real Estate Business Line Summary Provides products and services to 90% of the Fortune 500 and 87% of the Fortune 1,000 Expanded loan capital markets and derivatives, enhanced foreign exchange capabilities, added high- grade fixed income an
Slide 14: Agenda
Agenda Overview Business Lines Financial Management Capital Management Long-term Goals 2Q15 Update
Slide 15: Strong Diversification
Consumer and Small Business Banking 41% Payment Services 30% Wealth Mgmt and Securities Services 11% Wholesale Banking and Commercial Real Estate 18% Strong Diversification Revenue Mix By Business Line Fee Income / Total Revenue Full year 2014, taxable-equivalent basis Business line revenue percenta
Slide 16: Peer Banks
Peer Banks Peer Bank Ticker Symbols BAC Bank of America PNC PNC BBT BB&T RF Regions FITB Fifth Third STI SunTrust JPM J.P. Morgan USB U.S. Bancorp KEY KeyCorp WFC Wells Fargo Bank of America SunTrust Wells Fargo KeyCorp BBT Fifth Third Regions PNC J.P. Morgan U.S. Bancorp
Slide 17: Industry Leading Returns
Industry Leading Returns Source: SNL and company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Efficiency ratio computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent basis and noninterest income excluding net securities gains (losses)
Slide 18: Efficient Expense Platform
Efficient Expense Platform Single processing platforms Full consolidation of acquisitions Operating scale in all significant businesses Business line monthly review process Source of Competitive Advantage Source: SNL and company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Eff
Slide 19: Loan and Deposit Growth
Loan and Deposit Growth $ in billions Prior 5 Years Average Balances Year-Over-Year Growth Prior 5 Quarters Average Balances Year-Over-Year Growth Loans Deposits 5% 5% 7% 6% 7% 6% 6% 7% 8% 4% 7% 6% 6% 4% 15% 11% 6% 7% 10% 6%
Slide 20: Credit Quality
Credit Quality $ in millions Net Charge-offs Net Charge-offs (Left Scale) NCOs to Avg Loans (Right Scale) Nonperforming Assets Nonperforming Assets (Left Scale) NPAs to Loans plus ORE (Right Scale)
Slide 21: Credit Quality
Credit Quality $ in millions Reserve release is calculated as net charge-offs less provision for credit losses over the five-quarter period Allowance to Loans Reserve Release / Net Income (Prior 5 quarters) Total Allowance for Credit Losses (Left Scale) Allowance % of period-end loans (Right Scale)
Slide 22: Top of Class Debt Ratings
Top of Class Debt Ratings Debt ratings: holding company as of 5/8/15 Flight to quality Funding advantage Advantages Peer Debt Ratings op=outlook positive / on=outlook negative / s=outlook stable / wn=watch negative / wp=watch positive Holding Company Rating Outlook Rating Outlook Rating Outlook Rati
Slide 23: Agenda
Agenda Overview Business Lines Financial Management Capital Management Long-term Goals 2Q15 Update
Slide 24: Capital Management
2.5% 4.5% Capital Management Capital Requirement * Based on the Basel III fully implemented standardized approach Earnings Distribution Target 8.0% Internal Buffer 1.0% Capital Conservation Buffer Minimum Capital Requirement 9.2%* Common Equity Tier 1 Basel III Target USB 1Q15 Reported Reinvest and
Slide 25: Stress Test Results
Stress Test Results Dodd-Frank Act Stress Test results and USB internal stress test results and methodologies released March 5, 2015 Comprehensive Capital Analysis and Review results released March 11, 2015 • The Federal Reserve did not object to USB’s capital plan PPNR = Pre-Provision Net Revenue S
Slide 26: Capital Actions
Capital Actions 62% 11% 32% Payout Ratio 71% 72% Share repurchase authorization and expected dividend increase announced March 11 • Expect to increase annual dividend from $0.98 to $1.02, a 4.1% increase, effective 2Q15 • One-year authorization to repurchase up to $3.0 billion of outstanding stock e
Slide 27: Agenda
Agenda Overview Business Lines Financial Management Capital Management Long-term Goals 2Q15 Update
Slide 28: Long-term Goals
Long-term Goals Long-term Goals • ROE 16-19% • ROA 1.60-1.90% • Efficiency Ratio low 50s • Earnings distribution 60-80% Current Status 2014 Profitability: • ROE 14.7% • ROA 1.54% • Efficiency Ratio 53.2% 2014 Capital distributions: • Distributed 72% of earnings (dividends 31%, share repurchases 41%)
Slide 29: Agenda
Agenda Overview Business Lines Financial Management Capital Management Long-term Goals 2Q15 Update
Slide 30: 2Q15 Update
2Q15 Update Business Climate Loan Growth Net Interest Margin Credit Quality Noninterest Income / Expense
Slide 31: (Sbancorp.
(Sbancorp.
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures March 31, December 31, September 30, June 30, March 31, (Dollars in Millions, Unaudited) Total equity $44,965 $44,168 $43,829 $43,386 $42,743 Preferred stock (4,756) (4,756) (4,756) (4,756) (4,756) Noncontrolling interests (688) (689) (688) (686) (689) Goodwill (net of de
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures Line of Business Financial Performance Taxable-equivalent basis, excluding securities gains (losses) net $ in millions Revenue Line of Business Financial Performance FY 2014 Wholesale Banking and Commercial Real Estate 3,037 $ Consumer and Small Business Banking 6,915 Wea
Slide 34: Barclays Americas Select Franchise Conference 2015
Barclays Americas Select Franchise Conference 2015 May 19, 2015
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