U.s. Bancorp · NYSE:USB
U.s. Bancorp — Goldman Sachs U.S. Financial Services Conference 2015
27 slides from U.s. Bancorp's conference presentation, Dec 9, 2015
Slide 1: Goldman Sachs U.S. Financial Services Conference
Exhibit 99.1 Goldman Sachs U.S. Financial Services Conference Andy Cecere Vice Chairman and COO Kathy Rogers Vice Chairman and CFO December 9, 2015 U.S. BANCORP | 1
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: Agenda
Agenda • Overview • Business Lines • Value Creation • Capital Management • 4Q15 Update U.S. BANCORP | 3
Slide 4: U.S. Bancorp 3Q15 Dimensions
U.S. Bancorp 3Q15 Dimensions NYSE Traded USB Branches 3,151 Assets $416B Founded 1863 ATMs 5,001 Deposits $295B Market Value $77B Customers 18.5M Loans $255B Market value as of 12/2/15 U.S. BANCORP | 4
Slide 5: Industry Position
Industry Position Assets Deposits Market Value U.S. U.S. U.S. Rank Company $ Billions Rank Company $ Billions Rank Company $ Billions 1 J.P. Morgan 2,417 1 J.P. Morgan 1,273 1 Wells Fargo 281 2 Bank of America 2,153 2 Wells Fargo 1,202 2 J.P. Morgan 245 3 Citigroup 1,808 3 Bank of America 1,162 3 Ba
Slide 6: Agenda
Agenda • Overview • Business Lines • Value Creation • Capital Management • 4Q15 Update U.S. BANCORP | 6
Slide 7: Business Mix
Business Mix Revenue Mix Payment Services By Business Line Consumer and Small • Retail Payment Solutions Business Banking • Corporate Payment Systems • Branch Banking • Global Merchant Acquiring • Small Business Banking Payment Services • Consumer Lending • Mortgage Banking • Omnichannel Wealth Mana
Slide 8: Payment Services
Payment Services Revenue Contribution Business Line Summary to USB • Provides a full suite of payment processing services to Payment Services consumers, small businesses, corporations and merchants – a unique position versus other banks 30% Wealth Mgmt and Securities Services • Expanding internation
Slide 9: Consumer and Small Business Banking
Consumer and Small Business Banking Revenue Contribution Business Line Summary to USB • Provides a full suite of banking products and services to Payment Services consumer and small business customers across 25-state branch footprint Wealth Mgmt and Securities Services • Differentiating U.S. Bank fr
Slide 10: Wholesale Banking and Commercial Real Estate
Wholesale Banking and Commercial Real Estate Revenue Contribution Business Line Summary to USB • Provides products and services to 90% of the Fortune Payment Services 500 and 87% of the Fortune 1,000 • Expanded loan capital markets and derivatives, Wealth Mgmt and Securities Services enhanced foreig
Slide 11: Wealth Management and Securities Services
Wealth Management and Securities Services Revenue Contribution Business Line Summary to USB • Delivers a full array of wealth management services Payment Services through differentiated service delivery models to address the needs of a broad range of clients Wealth Mgmt and • Leading provider of cor
Slide 12: Agenda
Agenda • Overview • Business Lines • Value Creation • Capital Management • 4Q15 Update U.S. BANCORP | 12
Slide 13: Diversified Revenue
Diversified Revenue Revenue Mix Fee Income / Total Revenue By Business Line 55% 50% Payment Services 46% 30% 45% 45% 45% 45% 40% Wealth Mgmt and Securities Services 11% 35% 2012 2013 2014 3Q15 YTD Consumer and Wholesale Small Business Banking and Banking Commercial Real Estate 42% 17% 55% 45% 3Q15 Y
Slide 14: Low Risk Balance Sheet
Low Risk Balance Sheet Sensitivity of Net Interest Income Key Points 4.00% • The Company uses net interest income simulation analysis for measuring and analyzing 3.00% consolidated interest rate risk, 2.19% 2.37% 2.39% running 28 interest rate risk 2.00% 1.75% scenarios 1.68% 1.71% 1.72% • Projectio
Slide 15: Best in Class Debt Rating
Best in Class Debt Rating USB is highest rated peer bank across all rating agencies • Funding advantage • Competitive advantages Moody's S&P Fitch DBRS – Pricing Rating Outlook Rating Outlook Rating Outlook Rating Outlook – Flight-to-quality USB A1 s A+ s AA s AA s WFC A2 s A s AA- s AA s – Sales Fo
Slide 16: Achieving Growth
Achieving Growth Ending Loans Ending Deposits Total Revenue 3Q10 Loans 3Q15 Loans 3Q10 Deposits 3Q15 Deposits 3Q10 YTD Revenue 3Q15 YTD Revenue $195 billion $255 billion $187 billion $295 billion $13.4 billion $15.1 billion 2% 10% 12% 30% 14% 23% 28% 24% 22% 28% 15% 7% 33% 8% 11% 8% 20% 44% 18% 55%
Slide 17: Strong Credit Quality
Strong Credit Quality Net Charge-offs Nonperforming Assets 520 3.00% 2,800 3.00% 390 2.25% 2,100 2.25% $1,923 $336 $1,808 $308 $1,696 $296 $292 $1,577 $1,567 $279 260 1.50% 1,400 1.50% 0.78% 0.73% 0.69% 130 0.75% 700 0.63% 0.61% 0.75% 0.55% 0.50% 0.46% 0.48% 0.46% 0 0.00% 0 0.00% 3Q14 4Q14 1Q15 2Q15
Slide 18: Industry Leading Returns 3Q15
Industry Leading Returns 3Q15 Return on Average Assets Return on Average Common Equity 1.44% 14.1% 1.32% 12.7% 1.17% 1.13% 1.11% 11.5% 1.07% 1.03% 10.0% 9.6% 0.92% 9.3% 0.83% 0.82% 8.2% 8.1% 7.0% 6.0% USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 USB Peer 1 Peer 2 Peer 3 Peer 4
Slide 19: High Returns on Capital
High Returns on Capital Return on Tangible Common Equity 3Q15 YTD High return / capital efficient businesses 19.4% • Corporate Trust 16.0% • Merchant Processing 14.1% 13.3% 12.7% 12.1% • Fund Services 11.1% 10.8% 10.1% 8.9% • Treasury Management • Corporate Payments Efficient expense platform Discip
Slide 20: Agenda
Agenda • Overview • Business Lines • Value Creation • Capital Management • 4Q15 Update U.S. BANCORP | 20
Slide 21: Capital Management
Capital Management Earnings Distribution Target Capital Actions Reinvest and Share Acquisitions Dividends Repurchases • Annual dividend increased from $0.98 to $1.02 per share in 2Q15, 20 - 40% 30 - 40% 30 - 40% a 4.1% increase • Five-quarter authorization to Payout Ratio repurchase up to $3.0 billi
Slide 22: Agenda
Agenda • Overview • Business Lines • Value Creation • Capital Management • 4Q15 Update U.S. BANCORP | 22
Slide 23: 4Q15 Linked Quarter Update
4Q15 Linked Quarter Update • Loan Growth: 1-1.5% growth • Credit Quality: Modest increase in NCOs • Net Interest Margin: Relatively stable • Mortgage Fees: Lower 5-15% due to seasonality • Noninterest Expense: Seasonally higher • Tax Rate: Moderately higher U.S. BANCORP | 23
Slide 24: Appendix
Appendix U.S. BANCORP | 24
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Line of Business Financial Performance $ in millions Revenue Line of Business Financial Performance 3Q15 YTD Wholesale Banking and Commercial Real Estate $ 2,187 Consumer and Small Business Banking 5,334 Wealth Management and Securities Services 1,370 Payment Services 3,9
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures September 30, June 30, March 31, December 31, September 30, (Dollars in Millions, Unaudited) 2015 2015 2015 2014 2014 Total equity $45,767 $45,231 $44,965 $44,168 $43,829 Preferred stock (4,756) (4,756) (4,756) (4,756) (4,756) Noncontrolling interests (692) (694) (688) (6
Slide 27: Goldman Sachs U.S. Financial Services Conference
Goldman Sachs U.S. Financial Services Conference U.S. BANCORP | 27
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