U.s. Bancorp · NYSE:USB
U.s. Bancorp — Shareholder Meeting (April 2017)
64 slides from U.s. Bancorp's shareholder meeting presentation, Apr 18, 2017
Slide 1: U.S. Bancorp Annual Shareholders Meeting
U.S. Bancorp Annual Nashville, Tennessee Shareholders Meeting Nashville, Tennessee Richard Davis Executive Chairman Andy Cecere 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: Pledge of Allegiance and National Anthem
Pledge of Allegiance National Anthem Kimberly England Senior Branch Manager U.S. BANK | 3
Slide 4: Agenda
Agenda • Call to Order • Voting and Collection of Ballots • Management Report • Question and Answer Session • Meeting Ends Promptly at Noon
Slide 5: Voting and Collection of Ballots
Voting and Collection of Ballots Laura Bednarski Corporate Secretary U.S. BANK | 5
Slide 6: Voting and collection of ballots
Voting and collection of ballots • Election of directors • Ratification of independent auditor • Advisory vote to approve executive compensation • Advisory vote on the frequency of future advisory votes on executive compensation • Shareholder proposal U.S. BANK | 6
Slide 7: U.S. BANK | 7
U.S. BANK | 7
Slide 8: Management Report
Management Report Andy Cecere President and Chief Executive Officer
Slide 9: U.S. BANK | 9
U.S. BANK | 9
Slide 10: U.S. Bank's presence in Nashville
U.S. Bank’s presence in Nashville • 465 employees • Notable customers and partnerships Source: Company reports U.S. BANK | 10
Slide 11: U.S. Bank's Nashville Advisory Board
U.S. Bank’s Nashville Advisory Board Hiram Cox Anne L. Russell EVP and CFO, SMS Holdings Special Counsel, Transactions and Corporate CEO, PrimeFlight Aviation Services Advisory Services Nashville Danny J. Herron David Ward President and CEO, Habitat for Humanity Retired Owner, David Ward & Associate
Slide 12: Nashville Market President Ward Wilson
Nashville Market President Ward Wilson Market President since 2005 Board involvement includes: • Boys & Girls Clubs of Middle Tennessee • Habitat for Humanity of Greater Nashville • Boy Scouts of America, Middle Tennessee Council • Tennessee Banker’s Association U.S. BANK | 12
Slide 13: U.S. Bank's volunteerism in Tennessee
U.S. Bank’s volunteerism in Tennessee More than 6,700 service hours in 2016 U.S. BANK | 13
Slide 14: Honoring those who serve
Honoring those who serve U.S. BANK | 14
Slide 15: Honoring those who serve
Honoring those who serve United States Army United States Army Reserve Allen Kaas Kerry Whitaker Brett Barker Tiffany Bright Andrew Turner Sean White Brian Hinsley William Thompson Angela Collins Stephen Bellofatto Christopher Chandler Brian Hinsley Tammy Metzger Christopher Rochelle Tammy Ingle CJ
Slide 16: Honoring those who serve
Honoring those who serve United States Air Force United States Air Force Reserve Bob Morris James Gray Gregory Jordan Brian Boyden Joseph Strzykalski Charles Headlee Mark Becker Christopher Lawrence Marketta Humphrey United States Air National Guard Clayton Johnson Randy Richardson Allen Kaas David
Slide 17: Honoring those who serve
Honoring those who serve United States Navy United States Marine Corps Adam McCall Matthew Alexander Brian Hackley Cynthia Orick Neal Long Christopher Chandler Donna Kinnan Pamela Foster Christopher Keliikoa James Mynatt Quintin Higgins Eduardo Diaz James Jarvis Richard Mongold Ernest Casteel Jason
Slide 18: Honoring years of service
Honoring years of service U.S. BANK | 18
Slide 19: Long-term employees
Long-term employees 25 years Bonnie Reavis Karen Champagne Tammy Hess Debra Nash Lisa Ragland Tiffany Bright Dexter Stewart Marcy Wilkins Tiffany Rolen Diane Johnson Mark Clarke Trent Heitz Elizabeth Rose Paige Rhodes Vadeene Sisk Emmy Phillips Pamela Foster Wendy Caylor Holly Justus Rickey Kimbroug
Slide 20: Long-term employees
Long-term employees 30 years 35 years 40 years Cynthia Gonzalez Karen Jones Cheryl Hintz Ann Balch David Tipton Kathy Sullivan Deborah Mackey Betty Grigsby Debra Harris Linda McGee Diane Bishop Elizabeth Wooten Edna Derry Patti Mook Kimberly MacNicol Melba Wyatt Ginny Robertson Sandra Shepherd Maria
Slide 21: Long-term employees
Long-term employees 45 years 63 years Mary Baggett Gwyn Holland Branch Manager Teller U.S. BANK | 21
Slide 22: U.S. BANK | 22
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Slide 23: Diverse leadership
Diverse leadership U.S. Bancorp recognized as one of 29 Fortune 500 companies with the broadest diversity on its Board of Directors U.S. BANK | 23
Slide 24: U.S. Bancorp Board of Directors
U.S. Bancorp Board of Directors David O’Maley Andy Cecere Richard Davis Retired Chairman, President and CEO President and CEO Executive Chairman Ohio National Financial Services, Inc. U.S. Bancorp U.S. Bancorp Lead Director New Director U.S. BANK | 24
Slide 25: U.S. Bancorp Board of Directors
U.S. Bancorp Board of Directors Karen Lynch Warner Baxter Olivia Kirtley President Chairman, President and CEO Business Aetna Inc. Ameren Corporation Consultant U.S. BANK | 25
Slide 26: U.S. Bancorp Board of Directors
U.S. Bancorp Board of Directors Douglas Baker, Jr. Roland Hernandez O’dell Owens Chairman and CEO Founding Principal and CEO M.D., M.P.H. Ecolab Inc. Hernandez Media Ventures President and CEO Interact for Health U.S. BANK | 26
Slide 27: U.S. Bancorp Board of Directors
U.S. Bancorp Board of Directors Arthur Collins, Jr. Scott Wine Kimberly Harris Retired Chairman and CEO Chairman and CEO President and CEO Medtronic, Inc. Polaris Industries Inc. Puget Energy, Inc. & Puget Sound Energy, Inc. U.S. BANK | 27
Slide 28: U.S. Bancorp Board of Directors
U.S. Bancorp Board of Directors Doreen Woo Ho Craig Schnuck Marc Casper Commissioner Former Chairman and CEO President and CEO San Francisco Schnuck Markets, Inc. Thermo Fisher Scientific Inc. Port Commission U.S. BANK | 28
Slide 29: Managing Committee
Managing Committee Andy Cecere Jennie Carlson James Chosy Terrance Dolan John Elmore Leslie Godridge Gunjan Kedia President and Executive Vice President, Executive Vice President Vice Chairman and Vice Chairman, Vice Chairman, Vice Chairman, Chief Executive Officer Human Resources and General Counci
Slide 30: Industry-leading results: 2016 highlights
Industry-leading results 2016 highlights U.S. BANK | 30
Slide 31: $5.9 billion record net income
$5.9 billion 79% earnings returned to record net income shareholders through dividends and share $3.24 record per buybacks diluted common share U.S. BANK | 31 Source: Company reports
Slide 32: 2016 performance metrics
2016 performance metrics USB maintains industry-leading position #1 in ROCE #1 in ROA #1 in Efficiency Ratio 13.4% 1.36% 11.5% 1.16% 61.7% 1.05% 57.7% 54.9%* 8.8% USB Peer Bank Peer Bank USB Peer Bank Peer Bank USB Peer Bank Peer Bank #2 Median #2 Median #2 Median Source: Company reports; Peer banks
Slide 33: Debt ratings
Debt ratings Holding Moody’s S&P Fitch DBRS Company USB A1 (s) A+ (s) AA (s) AA (s) WFC A2 (s) A (on) AA- (on) AA (on) BBT A2 (s) A- (s) A+ (s) A(H) (s) JPM A3 (s) A- (s) A+ (s) AA(L) (s) PNC A3 (s) A- (s) A+ (s) A(H) (s) BAC Baa1 (op) BBB+ (s) A (s) A (s) FITB Baa1 (s) BBB+ (s) A (on) A(L) (s) STI
Slide 34: #1 Most Admired Superregional Bank
U.S. Bank also featured on named U.S. Bancorp the Fortune #1 Most Admired magazine’s Superregional Bank annual “40 Best for the 7th year in a row Companies to Work in Financial Services” list. U.S. BANK | 34
Slide 35: Key attributes
Key attributes Management Quality Value as a Long-term Use of Corporate Financial Soundness Investment Assets 1. Walt Disney 1. Walt Disney 1. Walt Disney 1. Walt Disney 2. TJX 2. U.S. Bancorp 2. U.S. Bancorp 2. Microsoft 3. U.S. Bancorp 3. Starbucks 3. Starbucks 3. Alphabet 3. Starbucks 4. TJX 4. J
Slide 36: U.S. Bancorp's strategy
U.S. Bancorp’s strategy U.S. BANK | 36
Slide 37: We are U.S. Bank: The most trusted choice
We are U.S. Bank The most trusted choice. U.S. BANK | 37
Slide 38: 2017 World's Most Ethical Company
U.S. Bank named a 2017 World’s Most Ethical Company for the third consecutive year, and the largest U.S.-based bank to ever make the list. U.S. BANK | 38
Slide 39: $4.7 billion invested in community development
UPDATE WITH 2016 # $4.7 billion invested in community development projects in 2016 U.S. BANK | 39
Slide 40: Community Possible Relay
Community Possible Relay “477,081 Individuals Served © 96 Partners iit tw = = 2 Driver
Slide 41: Community Possible Relay 2.0
Community Possible Relay 2.0 Making PLAY Possible U.S. BANK | 41
Slide 42: Serving all customers
Serving all customers U.S. BANK | 42
Slide 43: We are U.S. Bank: Getting better every day
We are U.S. Bank Getting better every day. U.S. BANK | 43
Slide 44: Socially responsible
Socially responsible U.S. BANK | 44
Slide 45: $2.6 billion in environmentally beneficial business opportunities
$2.6 billion in environmentally beneficial business opportunities U.S. BANK | 45
Slide 46: U.S. Bank and the Dakota Access Pipeline
U.S. Bank and the Dakota Access Pipeline We do not finance the project We do provide a line of credit for general corporate purposes to Energy Transfer Partners We are obligated to fulfill our contract with ETP We serve diverse industries and take a balanced approach to environmental and socia
Slide 47: Community Possible CSR report
Corporate Social Responsibility report Community Possible U.S. BANK | 47
Slide 48: Employee engagement
Employee engagement U.S. BANK | 48
Slide 49: What's driving our engagement?
What’s driving our engagement? • Engagement remains at high-performing levels • Employees are motivated by our vision and believe U.S. Bank has an outstanding future • Ethics and trust show heightened importance in engagement I believe this This This company shows The behavior of our senior In this
Slide 50: We continue to listen and make changes
We continue to listen and make changes Benefits Compensation Technology • New and enhanced • Simplified incentive • Technological upgrades policies plans • Improved infrastructure • New wellness • Elimination of stack • Leadership resources programs ranking • Engagement opportunities • Split merit p
Slide 51: Diversity and inclusion
Diversity and inclusion U.S. BANK | 51
Slide 52: Business Resource Groups
Business Resource Groups • African American • Asian Heritage • Nosotros Latino • Proud to Serve • Spectrum (LGBT) • U.S. Bank Women • NEW! Native American U.S. BANK | 52
Slide 53: We are U.S. Bank: Delivering a unified customer experience
We are U.S. Bank Delivering a unified customer experience. U.S. BANK | 53
Slide 54: Contact Centers, Next Generation Banking, Relationship Management
Contact Centers Next Generation Banking Relationship Management U.S. BANK | 54
Slide 55: Zelle
Zelle THIS IS HOW MONEY MOVES- (Sbancorp. U.S BANK 55
Slide 56: New opt-in card technology
•New opt-in technology •Reduces card declines •Adds security for Visa cardmembers U.S. BANK | 56
Slide 57: Anything is possible
Anything is possible U.S. BANK | 57
Slide 58: Nashville, Tennessee
Nashville, Tennessee
Slide 59: Question and Answer Session
Question and Answer Session (Sbancorp.
Slide 60: Rules of conduct
Rules of conduct • In order to give other shareholders an opportunity to speak, each speaker will be permitted two minutes to address the meeting. • Once a subject has been addressed, no additional questions related to that subject will be taken in order to address as many subjects as possible. • Pl
Slide 61: Nashville, Tennessee
Nashville, Tennessee U.S. BANK | 61
Slide 62: Appendix
Appendix (Sbancorp.
Slide 63: Non-GAAP Financial Measures
Non-GAAP Financial Measures (Dollars in Millions, Unaudited) Three Months Ended Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, 2016 2016 2016 2016 2015 2016 2015 Net interest income $2,955 $2,893 $2,845 $2,835 $2,819 $11,528 $11,001 Taxable-equivalent
Slide 64: Non-GAAP Financial Measures
Non-GAAP Financial Measures ($ in millions) Net Revenue Line of Business Financial Performance 2011 Full Year 2016 Full Year Wholesale Banking and Commercial Real Estate $ 3,347 $ 3,139 Consumer and Small Business Banking 7,360 7,279 Wealth Management and Securities Services 1,408 2,126 Payment Serv