31 slides from U.s. Bancorp's earnings presentation, Jan 22, 2014
Slide 1: U.S. Bancorp 4Q13 Earnings Conference Call
Exhibit 99.2 U.S. Bancorp 4Q13 Earnings Conference Call Richard K. Davis Chairman, President and CEO Andy Cecere January 22, 2014 Vice Chairman and CFO
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: 2013 Full Year Highlights
4Q13 Earnings 2013 Full Year Highlights Conference Call Record net income of $5.8 billion; $3.00 per diluted common share Industry-leading profitability measures, including ROA of 1.65%, ROCE of 15.8% and efficiency ratio of 52.4% Average loan growth of 5.6% vs. 2012 and average deposit growth of 6.
Slide 4: 4Q13 Highlights
4Q13 Earnings 4Q13 Highlights Conference Call Net income of $1.5 billion; $0.76 per diluted common share Average loan growth of 5.7% vs. 4Q12 and average loan growth of 1.5% vs. 3Q13 Strong average deposit growth of 5.4% vs. 4Q12 and 1.8% vs. 3Q13 Net charge-offs declined 4.9% vs. 3Q13 Nonperforming
Slide 5: Performance Ratios
4Q13 Earnings Performance Ratios Conference Call Return on Average Common Equity Efficiency Ratio and and Return on Average Assets Net Interest Margin 20% 3.0% 65% 4.0% 3.55% 3.48% 17% 2.5% 3.43% 3.43% 3.40% 16.0% 16.1% 60% 3.5% 15.6% 15.8% 15.4% 14% 2.0% 55% 3.0% 1.70% 54.9% 1.62% 1.65% 1.65% 1.62%
Slide 6: Revenue Growth
4Q13 Earnings Revenue Growth Conference Call $ in millions Year-Over-Year Growth 0.2% (1.1%) (2.4%) (5.6%) (4.4%) 5,500 $5,112 5,000 $4,948 $4,874 $4,891 $4,889 4,500 4,000 3,500 4Q12 1Q13 2Q13 3Q13 4Q13 6 Taxable-equivalent basis
Slide 7: Loan and Deposit Growth
4Q13 Earnings Loan and Deposit Growth Conference Call $ in billions Average Balances Year-Over-Year Growth 5.4% 5.5% $256.9 260.0 7.0% $252.4 9.2% 7.3% $247.4 $243.8 $245.0 5.7% 240.0 5.7% 5.2% $232.8 5.8% $229.4 6.4% $225.2 $222.4 $220.3 220.0 200.0 180.0 4Q12 1Q13 2Q13 3Q13 4Q13 Loans Deposits 7
Slide 8: Credit Quality
4Q13 Earnings Credit Quality Conference Call $ in millions Net Charge-offs Nonperforming Assets* 800 3.00% 3,200 3.00% 600 2.25% 2,400 2.25% $2,088 $2,029 $468 $1,921 $1,880 $1,813 $433 $392 400 1.50% 1,600 1.50% $328 $312 0.98% 0.95% 0.85% 0.88% 0.85% 0.79% 0.80% 0.70% 200 0.57% 0.53% 0.75% 800 0.7
Slide 9: Earnings Summary
4Q13 Earnings Earnings Summary Conference Call $ in millions, except per-share data % B/(W) Full Year Full Year 4Q13 3Q13 4Q12 vs 3Q13 vs 4Q12 2013 2012 % B/(W) Net Interest Income $ 2,733 $ 2,714 $ 2,783 0.7 (1.8) $ 10,828 $ 10,969 (1.3) Noninterest Income 2,156 2,177 2,329 (1.0) (7.4) 8,774 9,319
Slide 10: 4Q13 Results - Key Drivers
4Q13 Earnings 4Q13 Results - Key Drivers Conference Call vs. 4Q12 Impact of Accounting Presentation Changes Related Net Revenue decline of 4.4% to Investments in Tax-Advantaged Projects ($ in millions) 4Q13 4Q13 • Net interest income decline of 1.8%; B/(W) vs. 3Q13 vs. 4Q12 net interest margin of 3.
Slide 11: Capital Position
4Q13 Earnings Capital Position Conference Call $ in billions 4Q13 3Q13 2Q13 1Q13 4Q12 Shareholders' equity $ 41.1 $ 40.1 $ 39.7 $ 39.5 $ 39.0 Tier 1 capital 33.4 32.7 32.2 31.8 31.2 Total risk-based capital 39.3 38.9 38.4 38.1 37.8 Tier 1 common equity ratio 9.4% 9.3% 9.2% 9.1% 9.0% Tier 1 capital r
Slide 12: Mortgage Repurchase
4Q13 Earnings Mortgage Repurchase Conference Call Mortgages Repurchased and Make-whole Payments Repurchase activity lower than Mortgage Representation and Warranties Reserve peers due to: $ in millions 4Q13 3Q13 2Q13 1Q13 4Q12 • Conservative credit and Beginning Reserve $176 $190 $233 $240 $220 unde
Slide 13: 4Q13 Earnings Conference Call
4Q13 Earnings Conference Call 13
Slide 14: Appendix
4Q13 Earnings Conference Call Appendix 14
Slide 15: Average Loans
4Q13 Earnings Average Loans Conference Call $ in billions Average Loans Key Points Year-Over-Year Growth vs. 4Q12 6.4% 5.8% 5.2% 5.7% 5.7% Average total loans grew by $12.5 billion, or 5.7% 280 Average total loans, excluding covered loans, $229.4 $232.8 were higher by 7.3% $220.3 $222.4 $225.2 Avera
Slide 16: Average Deposits
4Q13 Earnings Average Deposits Conference Call $ in billions Average Deposits Key Points Year-Over-Year Growth vs. 4Q12 9.2% 7.3% 7.0% 5.5% 5.4% Average total deposits increased by $13.1 billion, or 5.4% 320 Average low cost deposits (NIB, interest $256.9 $243.8 $245.0 $247.4 $252.4 checking, money
Slide 17: Net Interest Income
4Q13 Earnings Net Interest Income Conference Call $ in millions Net Interest Income Key Points Year-Over-Year Growth vs. 4Q12 4.1% 0.7% (1.5%) (2.5%) (1.8%) Average earning assets grew by $7.3 billion, or 2.3% 4,000 8.0% Net interest margin lower by 15 bps (3.40% vs. 3.55%) driven by: 3,000 $2,783 $
Slide 18: Noninterest Income
4Q13 Earnings Noninterest Income Conference Call $ in millions Noninterest Income Key Points vs. 4Q12 Year-Over-Year Growth Noninterest income declined by $173 million, or (4.2%) (3.3%) (3.4%) (9.1%) (7.4%) 7.4%, driven by: • Mortgage banking revenue decline of $245 million 2,800 • Higher credit and
Slide 19: Noninterest Expense
4Q13 Earnings Noninterest Expense Conference Call $ in millions Noninterest Expense Key Points vs. 4Q12 Year-Over-Year Growth Noninterest expense was lower by $4 million, or (0.4%) (3.5%) (1.7%) (1.7%) (0.1%) 0.1%, driven by: 3,200 • Lower professional services expense (28.9% decline) due to a reduc
Slide 20: Credit Quality - Commercial Loans
4Q13 Earnings Credit Quality - Commercial Loans Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q12 3Q13 4Q13 80,000 4.0% Average Loans $58,552 $62,856 $63,714 $62,856 $63,714 30-89 Delinquencies 0.48% 0.28% 0.33% $59,921 $61,507 60,000 $58,552 3.0% 90+ Delinqu
Slide 21: Credit Quality - Commercial Leases
4Q13 Earnings Credit Quality - Commercial Leases Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q12 3Q13 4Q13 9,000 3.0% Average Loans $5,377 $5,208 $5,210 30-89 Delinquencies 0.89% 0.76% 0.85% 6,000 $5,377 $5,378 $5,255 $5,208 $5,210 2.0% 90+ Delinquencies 0.
Slide 22: Credit Quality - Commercial Real Estate
4Q13 Earnings Credit Quality - Commercial Real Estate Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q12 3Q13 4Q13 60,000 1.5% Average Loans $36,851 $38,501 $39,318 30-89 Delinquencies 0.43% 0.16% 0.24% $37,884 $38,501 $39,318 90+ Delinquencies 0.02% 0.02% 0.0
Slide 23: Credit Quality - Residential Mortgage
4Q13 Earnings Credit Quality - Residential Mortgage Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q12 3Q13 4Q13 60,000 4.0% Average Loans $43,156 $49,139 $50,732 $50,732 $46,873 $49,139 30-89 Delinquencies 0.79% 0.70% 0.70% $45,109 45,000 $43,156 3.0% 90+ Del
Slide 24: Credit Quality - Credit Card
4Q13 Earnings Credit Quality - Credit Card Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q12 3Q13 4Q13 20,000 10.0% Average Loans $16,588 $16,931 $17,366 $16,931 $17,366 $16,588 $16,528 $16,416 30-89 Delinquencies 1.33% 1.25% 1.25% 15,000 7.5% 90+ Delinquenci
Slide 25: Credit Quality - Home Equity
4Q13 Earnings Credit Quality - Home Equity Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q12 3Q13 4Q13 24,000 6.0% Average Loans $16,950 $15,648 $15,488 30-89 Delinquencies 0.76% 0.65% 0.66% 18,000 $16,950 $16,434 4.5% 90+ Delinquencies 0.30% 0.25% 0.32% $15,
Slide 26: Credit Quality - Retail Leasing
4Q13 Earnings Credit Quality - Retail Leasing Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q12 3Q13 4Q13 9,000 1.5% Average Loans $5,384 $5,664 $5,847 30-89 Delinquencies 0.22% 0.15% 0.18% $5,653 $5,664 $5,847 90+ Delinquencies 0.02% 0.02% 0.00% 6,000 $5,384
Slide 27: Credit Quality - Other Retail
4Q13 Earnings Credit Quality - Other Retail Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q12 3Q13 4Q13 40,000 4.0% Average Loans $25,595 $25,682 $26,059 30-89 Delinquencies 0.59% 0.48% 0.50% 30,000 3.0% 90+ Delinquencies 0.17% 0.14% 0.14% $25,682 $26,059 $25
Slide 28: Credit Quality - Auto Loans
4Q13 Earnings Credit Quality - Auto Loans Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q12 3Q13 4Q13 16,000 0.8% Average Loans $12,540 $12,946 $13,409 $13,409 30-89 Delinquencies 0.41% 0.30% 0.34% $12,575 $12,946 $12,540 $12,519 12,000 0.6% 90+ Delinquencies
Slide 29: Non-GAAP Financial Measures
4Q13 Earnings Non-GAAP Financial Measures Conference Call $ in millions 4Q13 3Q13 2Q13 1Q13 4Q12 Total equity $ 41,807 $ 41,552 $ 41,050 $ 40,847 $ 40,267 Preferred stock (4,756) (4,756) (4,756) (4,769) (4,769) Noncontrolling interests (694) (1,420) (1,367) (1,316) (1,269) Goodwill (net of deferred
Slide 30: Non-GAAP Financial Measures
4Q13 Earnings Non-GAAP Financial Measures Conference Call $ in millions 4Q13 3Q13 2Q13 1Q13 4Q12 Total assets $ 364,021 $ 360,681 $ 353,415 $ 355,447 $ 353,855 Goodwill (net of deferred tax liability) (8,343) (8,319) (8,317) (8,333) (8,351) Intangible assets, other than mortgage servicing rights (84
Slide 31: U.S. Bancorp 4Q13 Earnings Conference Call
U.S. Bancorp 4Q13 Earnings Conference Call January 22, 2014