U.s. Bancorp · NYSE:USB
U.s. Bancorp — Barclays 2014 Global Financial Services Conference
30 slides from U.s. Bancorp's conference presentation, Sep 9, 2014
Slide 1: Barclays 2014 Global Financial Services Conference
Barclays 2014 Global Financial Services Conference September 9, 2014 Richard K. Davis Chairman, President and Chief Executive Officer
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 Financial Management Capital Management 3Q14 Update Long-term Goals
Slide 4: Extending the Advantage
EXTENDING THe apvantace U.S. Bancorp
Slide 5: U.S. Bancorp Dimensions
U.S. Bancorp Dimensions 2Q14 Dimensions Asset Size $389 billion Deposits $276 billion Loans $244 billion Customers 17.9 million NYSE Traded USB Market Capitalization* $76 billion Founded 1863 Bank Branches 3,174 ATMs 5,005 * As of September 3, 2014
Slide 6: Industry Positions
Industry Positions Source: company reports, SNL and FactSet Assets and deposits as of 6/30/14, market value as of 9/3/14
Slide 7: Agenda
Agenda Overview Financial Management Capital Management 3Q14 Update Long-term Goals
Slide 8: Diversified Business Mix
Diversified Business Mix 2Q14 YTD, taxable-equivalent basis, excluding securities gains (losses) net; 2Q14 fee income excludes $214 million gain on sale of Visa Class B common stock Revenue percentages in revenue mix exclude Treasury and Corporate Support, see Appendix for calculation Revenue Mix By
Slide 9: 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 10: Industry Leading Returns
Industry Leading Returns 2Q14 Full Year 2013 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 securitie
Slide 11: Efficient Expense Platform
Efficient Expense Platform 2013 Efficiency Ratio Source of Competitive Advantage Single processing platforms Full consolidation of acquisitions Operating scale in all significant businesses Business line monthly review process Source: SNL and company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PN
Slide 12: Loan and Deposit Growth
Loan and Deposit Growth Prior 5 Years Average Balances (Year-Over-Year Growth) Prior 5 Quarters Average Balances (Year-Over-Year Growth) $ in billions Loans Deposits (CHART) (CHART) 7% 7% 6% 6% 5% 5% 5% 5% 6% 4% 7% 6% 12% 4% 15% 11% 6% 23% 10% 6%
Slide 13: Revenue Growth
(CHART) Prior 5 Years (Year-Over-Year Change) Prior 5 Quarters (Year-Over-Year Change) $ in millions, taxable equivalent basis * Gain on sale of Visa Inc. Class B common stock (CHART) (2.4%) (5.6%) (4.4%) (1.2%) 4.9% 13.6% 8.9% 5.3% 6.2% (3.4%) Excluding Visa Gain: 0.5% Revenue Growth 4,974
Slide 14: Credit Quality
Credit Quality Net Charge-offs Reserve Release / Net Income (Prior 5 quarters) $ in millions Reserve release is calculated as net charge-offs less provision for credit losses over the five quarter period, Source: company reports Net Charge-offs (Left Scale) NCOs to Avg Loans (Right Scale) (CHART) (C
Slide 15: Top of Class Debt Ratings
Top of Class Debt Ratings Peer Debt Ratings Advantages Flight to quality Funding advantage Debt ratings: holding company as of September 3, 2014 op=outlook positive on=outlook negative s=outlook stable wn=watch negative wp=watch positive
Slide 16: Growing Market Share
Growing Market Share Market nor p 2a | me, Core Deposits [20% 28% Consumer Loans 6 TGS A Mortgage Origination [OMSSNNNSAN 4 C8I Loans 32% 39% ‘CRE Loans 10% 24m Midle Maret Loan Booknunner lavestment Grade Loan 03% «22% Booknunner lavestment Grade Bond NA 4.3% Bookrunner a Market orp as | oe, Credit
Slide 17: Agenda
Agenda Overview Financial Management Capital Management 3Q14 Update Long-term Goals
Slide 18: Capital Management
Capital Management Capital Requirement Earnings Distribution Target * Based on the final rules for the Basel III fully implemented standardized approach 0.5% Potential D-SIFI Buffer 2.5% Capital Conservation Buffer 4.5% Minimum Capital Requirement 8.9%* Common Equity Tier 1 Basel III Target USB 2Q14
Slide 19: Capital Distributions
Capital Distributions Dividend increase announced June 17th Annual dividend increased from $0.92 to $0.98, a 6.5% increase One-year authorization to repurchase up to $2.3 billion of outstanding stock effective April 1, 2014 Returned 75% of earnings to shareholders during 2Q14 (CHART) 62% 11% 32% Pay
Slide 20: Prudent Acquisition Strategy
Prudent Acquisition Strategy (CHART) Payments Collective Point of Sale Solutions Ltd FSV Payment Systems 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 Citi
Slide 21: Acquisitions - Chicago Branches
Acquisitions - Chicago Branches Acquired the Chicago-area branch banking franchise of RBS Citizens (branded as Charter One Bank) Approximately $4.8 billion of deposits and $969 million of loans Nearly doubles Chicago deposit base Consistent with our strategy - in-market branch acquisitions where we
Slide 22: Agenda
Agenda Overview Financial Management Capital Management 3Q14 Update Long-term Goals
Slide 23: 3Q14 Update
3Q14 Update Business Climate Loan Growth Net Interest Margin Credit Quality Mortgage Activity Noninterest Income / Expense Liquidity Coverage Ratio
Slide 24: Agenda
Agenda Overview Financial Management Capital Management 3Q14 Update Long-term Goals
Slide 25: Long-term Goals
Long-term Goals 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% Current Status Four simple and stable business lines Mortgage, wealth management, co
Slide 26: Appendix
Appendix Barclays 2014 Global Financial Services Conference
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 29: Non-GAAP Financial Measures: Line of Business Financial Performance
Non-GAAP Financial Measures Line of Business Financial Performance $ in millions, taxable-equivalent basis, excluding securities gains (losses) net
Slide 30: Barclays 2014 Global Financial Services Conference
Barclays 2014 Global Financial Services Conference
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