U.s. Bancorp · NYSE:USB

U.s. Bancorp — Investor Day (September 2024)

104 slides from U.s. Bancorp's investor day presentation, Sep 12, 2024

Slide 2: Forward-looking statements
- i INVESTOR Forward-looking statements Day |{Sbancorp \ 8 anticipate,” Yargets” “expects,” “hopes,” “estimates, "“projects," “forecasts,” intends," “plans,” “goals,” “belies,” “continue” will” "may," "might,"“should,"“wouls” and “could.” * i 3. 9 or tgages, nd related to. ects of ‘operational risk,
Slide 3: Agenda
INVESTOR rox |Sbancorp. AGENDA Thursday, September 12 8:00 a.m. Welcome George Andersen, Senior Vice President, Director of Investor Relations Strategic overview Andy Cecere, Chairman and Chief Executive Officer Building on our strong foundation Gunjan Kedia, President Interconnectedness drives our
Slide 4: Agenda
AGENDA INVESTOR Thursday, September 12 DAY | (bancorp. 10:25 a.m. Investing in our future: A panel discussion Terry Dolan, Vice Chair, Chief Administration Officer Dominic Venturo, Senior Executive Vice President, Chief Digital Officer Dilip Venkatacher, rior Executive Vice President, Chief Informat
Slide 5: Strategic Overview
2024 Us bancorp. INVESTOR DAY Strategic Overview Andy Cecere Chairman and CEO
Slide 6: We have weathered five years of market volatility and uncertainty
We have weathered five years of market volatility and uncertainty —— Economy and interest rates Regulatory intensity Technology spend ih Ee Competitive landscape Potential for M&A Importance of scale
Slide 7: Evolving with the times
Evolving with the times Established in 1863; 2nd oldest banking charter We are committed to our strengths ... * Unique and balanced business mix Commitment to risk and financial discipline Efficient acquirer of scale and capabilities Culture of engagement and client centricity Deep management bench
Slide 9: Investments positioned us well for long-term growth and greater efficiency
Investments positioned us well for long-term growth and greater efficiency Digital capabilities Tech modernization @ TravelBank ® SALUCRO’ Invested in client and Initiated cloud migration employee technology to and multi-year effort to enhance the U.S. Bank modernize core platforms digital experienc
Slide 10: These strategic investments came at a cost
These strategic investments came at a cost + Our ramp up in overall CapEx spend recognized the importance of enhancing our digital and technological capabilities to drive growth objectives Capital expenditures (CapEx) ~2/3 defense ~2/3 offense + During the last five years, we shifted our CapEx spend
Slide 11: Non-GAAP. Adjusted for notable items. See appendix for calculation and description of notable items;
1 2 Non-GAAP. Adjusted for notable items. See appendix for calculation and description of notable items; Source: Visible Alpha, adjusted for certain non-GAAP items. See “Notes” slide in the appendix for information about the peer set ©U.S. Bancorp
Slide 12: Our recent optimization efforts have focused on simplicity and efficiency
Our recent optimization efforts have focused on simplicity and efficiency Branch network + Optimized the branch network, moving from ~3.1K locations in 2019 to ~2.2K in 2024 * Closed more than 60% of in-store branches; Acquired branches from Union Bank and traditional build |G Technology and operati
Slide 13: Average balances unless otherwise noted ©U.S. Bancorp Amounts reported for the three months ended
Average balances unless otherwise noted ©U.S. Bancorp 1 Amounts reported for the three months ended June 30, 2024 end of month balances reported on a one month lag
Slide 14: We are at an inflection point
We are at an inflection point a Revenue growth Expense management We expect revenue to grow Annual CapEx spend is now in more rapidly as investments . the run rate as we realize the mature and headwinds return on our investments and become tailwinds optimize our business Positive operating leverage
Slide 15: A true inflection requires reflection
Atrue inflection requires reflection Employ / on where we were, y where we are, and where we’re headed We are to the following for our shareholders: Industry-leading returns + Leveraging our scale advantage * Positive operating leverage + Increased capital levels and distribution * Continued investm
Slide 16: Today's agenda
Today’s agenda Building on our strong foundation: interconnectedness drives our growth + Deepen client relat + Enhance product innovation + Broaden reach Today’s presenters Gunjan Kedia Shailesh Kotw Stephen Phili Arijit Roy Investing in our future + Advance technology initiatives + Enhance digital
Slide 17: Building on Our Strong Foundation
2024 us bancorp. INVESTOR DAY Building on Our Strong Foundation Gunjan Kedia President
Slide 18: • • • • • • • • • • • ©U.S. Bancorp 1H
• • • • • • • • • • • 1 2 3 ©U.S. Bancorp 1H 2024 taxable-equivalent basis. Business line revenue percentages exclude Treasury and Corporate Support. Non-GAAP. See appendix for reconciliation; Includes a portion of Treasury Management; Client data as of March 31, 2024
Slide 19: • • • • • • • • • • • ©U.S. Bancorp 1H
• • • • • • • • • • • 1 ©U.S. Bancorp 1H 2024 taxable-equivalent basis. Business line product mix revenue percentages exclude Treasury and Corporate Support. Non-GAAP. See appendix for reconciliation
Slide 20: 1H 2024. Regional Peers and GSIBs sourced from Visible Alpha. See “Notes” slide in
1 2 1H 2024. Regional Peers and GSIBs sourced from Visible Alpha. See “Notes” slide in the appendix for information about the peer set; Non-GAAP. Total fee revenue, CAGR and percentages excludes notable items and securities gains/(losses). See 3 appendix for reconciliation and description of notable
Slide 21: Wealth and Capital Markets strategy
Wealth and Capital Markets strategy Sufficient scale to drive organic growth in our advice-based businesses Total assets under management Advice-based businesses are relatively new (~15 years) $4548 $1818 ee | + Opportunities to deepen client relationships: - Wealth penetration of consumer franchise
Slide 22: Examples show average line of business loan balances for Q 2024. Credit Card includes
1 Examples show average line of business loan balances for 2Q 2024. Credit Card includes Payments Services. Commercial includes WCIB global markets & specialized finance, middle market, and corporate banking and other ©U.S. Bancorp
Slide 23: • • • Client satisfaction scores based on U.S. Bank benchmarking programs as of
• • • 1 Client satisfaction scores based on U.S. Bank benchmarking programs as of June 30, 2024 for Consumer and Business and December 31, 2023 for Commercial. Investment Services and Wealth scores not included ©U.S. Bancorp 2 Reflects clients who are eligible for multi-product relationships as of M
Slide 24: • • • Data as of June 30, 2024 unless otherwise noted ©U.S. Bancorp
• • • Data as of June 30, 2024 unless otherwise noted ©U.S. Bancorp 1 Source: Ipsos Brand Health Tracking. General Market Consumers. Data collected from April 1, 2024 to June 30, 2024
Slide 25: Building a trusted, interconnected bank
Building a trusted, interconnected bank Strategy builds enduring, unique solutions to drive value for clients DEEPEN CLIENT RELATIONSHIPS From client experience to client depth Focused on multiservice client penetration ENHANCE PRODUCT CONNECTIVITY From digital excellence to embedded interconnectivi
Slide 26: Interconnectedness Drives Our Growth
2024 us bancorp. INVESTOR DAY Interconnectedness Drives Our Growth Arijit Roy Executive Vice President, Consumer and Business Banking
Slide 27: • • • • • • • • Client data as of March 31,
• • • • • • • • 1 2 3 4 Client data as of March 31, 2024; Number of branches as of June 30, 2024; Contribution to total U.S. Bancorp is calculated based on 1H 2024 financial results. Excludes Treasury and Corporate Support. Non-GAAP. See appendix for calculation; Based 5 6 7 on FDIC data as of June
Slide 28: ©U.S. Bancorp Reflects the most recent externally reported information
1 ©U.S. Bancorp Reflects the most recent externally reported information
Slide 29: • • • • • • • • • • ©U.S. Bancorp Javelin Strategy
• • • • • • • • • • 1 ©U.S. Bancorp Javelin Strategy & Research, 2024 based on scores across six evaluation categories
Slide 30: • • • • Data sourced from 2Q 2024 public earnings releases. Peer set
• • • • 1 Data sourced from 2Q 2024 public earnings releases. Peer set includes JPM, BAC, WFC, PNC, TFC, CFG, FITB, KEY, RF, C, HBAN and is based on a simple average across peer set; Percentage change is based on year-over-year growth (2Q 2024 vs. 2Q ©U.S. Bancorp 2 3 2023); Balance data is sourced
Slide 31: • • • • • • • • • • • • California percentage
• • • • • • • • • • • • 1 2 3 4 California percentage of deposits. Based on FDIC data as of June 30, 2023 (#4 rank) vs. June 30, 2022 (#10 rank); YoY data as of April 2024 year to date. Net new client growth excludes Union Bank; YoY data as of May 2024 year to date; J.D. Power ©U.S. Bancorp 2024 U.S
Slide 32: • • • • • • • • • Based on average deposits per
• • • • • • • • • 1 Based on average deposits per U.S. Bank branch as of June 30, 2023. ©U.S. Bancorp
Slide 33: Branch transformation is improving our distribution
Branch transformation is improving our distribution Delivering full breadth of products and quality client experiences Our People Our Products Our Spaces Client-focused and needs- Comprehensive in-branch Continuous innovation and based expertise offerings improvement Evolved model from transactional
Slide 34: Growth rates represent December 31, 2019 through June 30, 2024; Javelin Strategy & Research,
1 2 3 4 Growth rates represent December 31, 2019 through June 30, 2024; Javelin Strategy & Research, 2024; Core consumer clients active in at least one channel in the previous 90 days. Digital includes both online and mobile platforms; Growth rate ©U.S. Bancorp represents a multiple of total sales w
Slide 35: • • • • • • • • • As of December 31, 2023.
• • • • • • • • • As of December 31, 2023. As of June 30, 2024. ©U.S. Bancorp
Slide 36: In closing, we deliver for our clients, every day
In closing, we deliver for our clients, every day Propelling the delivery of a trusted, interconnected bank with relevant solutions for our clients Key differentiators ... ... propelling growth going forward @ Product connections * Deepening client relationships with analytics-driven approaches © Di
Slide 37: Interconnectedness Drives Our Growth
2024 us bancorp. INVESTOR DAY Interconnectedness Drives Our Growth Shailesh Kotwal Vice Chair, Payment Services
Slide 38: • • • • • • • • • Client data as of March
• • • • • • • • • 1 2 3 Client data as of March 31, 2024; Contribution to total U.S. Bancorp is calculated based on 1H 2024 financial results. Excludes Treasury and Corporate Support. Non-GAAP. See appendix for calculation; Volume per Nilson Report (Issue 1263, May 2024); 4 5 6 Rankings are based on
Slide 39: Reflects the most recent externally reported information; Excludes debit and prepaid ©U.S. Bancorp
1 2 Reflects the most recent externally reported information; Excludes debit and prepaid ©U.S. Bancorp
Slide 40: Our payments journey
Our payments journey Looking back... Significantly invested in tech-led and digital Established banking-payments ecosystem Extended core and adjacent money movement capabilities Expanded our reach Formed stronger risk capabilities (e.g., fraud, cybersecurity) Client depth Product excellence Reach Go
Slide 41: Our strategy for growth
Our strategy for growth Industry trends Highly competitive Digitizing payment activities Financial discipline emerging Evolving fraud and payments security threats Regulatory and legislative pre Interconnected Banking + Payments Strategy Embed seamless money movement capabilities and value-added ser
Slide 44: • • • • • • • As of July 31, 2024; As of
• • • • • • • 1 2 3 4 As of July 31, 2024; As of December 31, 2023; YTD as of July 31, 2024; As of May 31, 2024 ©U.S. Bancorp
Slide 45: In closing, Payments is an integrated business
In closing, Payments is an integrated business Positioned to win... both short- and long-term Key differentiators ... ... propelling growth going forward @ Deeply interconnected * Broad-based payment capabilities @ Broad product set * Strategic, tech-led investments paved the path to holistic Integr
Slide 46: Interconnectedness Drives Our Growth
2024 us bancorp INVESTOR DAY Interconnectedness Drives Our Growth Stephen Philipson Senior Executive Vice President, Wealth, Corporate, Commercial, and Institutional Banking
Slide 47: • • • • • • • • • • • • Client data
• • • • • • • • • • • • 1 2 3 Client data as of March 31, 2024; Contribution to total U.S. Bancorp is calculated based on 1H 2024 financial results. Excludes Treasury and Corporate Support. Non-GAAP. See appendix for calculation; Fortune and Fortune Media IP Limited are not 4 affiliated with, and do
Slide 48: ©U.S. Bancorp Reflects the most recent externally reported information
1 ©U.S. Bancorp Reflects the most recent externally reported information
Slide 49: Our institutional journey
Our institutional journey Looking back... Going forward... * Up-tier relationships Wealth connectivity with consumer bank Client depth Made digital and technology investments Pivoted towards capital efficient growth * Fixed income product expansion Corporate trust Product Expanded products across ca
Slide 50: Based on ~2,500 relationships. Relationships include all syndicated institutional relationships and does not represent
1 Based on ~2,500 relationships. Relationships include all syndicated institutional relationships and does not represent total institutional client base. As of May 2024 ©U.S. Bancorp
Slide 52: • • • • ©U.S. Bancorp US and Europe market share data sourced from
• • • • 1 ©U.S. Bancorp US and Europe market share data sourced from Greenstreet ABAlert for the ABS/MBS and CLO rankings and Refinitiv for the Corporate and Municipal rankings. Rankings based upon number of deals and volume in dollars. Data as of March 2024
Slide 53: Revenue for the year ended December 31, 2023; CAGR for growth from 2020 -
1 2 3 Revenue for the year ended December 31, 2023; CAGR for growth from 2020 - 2023; Trailing twelve month revenue as of June 30, 2024 ©U.S. Bancorp
Slide 54: ©U.S. Bancorp Includes the addition of Union Bank acquisition that occurred in December 2022
1 ©U.S. Bancorp Includes the addition of Union Bank acquisition that occurred in December 2022
Slide 55: Total new hires from January 1, 2023 to June 30, 2024 ©U.S. Bancorp
1 Total new hires from January 1, 2023 to June 30, 2024 ©U.S. Bancorp
Slide 56: In closing, we are proving out our growth strategy
In closing, we are proving out our growth strategy We have leveraged our strength to build and grow a prehensive wealth and institutional business Key differentiator ... ... propelling growth going forward @ Unique product mix * Relationship depth © Relationship focus * Product expansion (3) Scale +
Slide 57: Interconnectedness Drives Our Growth
2024 us bancorp. INVESTOR DAY Interconnectedness Drives Our Growth Gunjan Kedia President
Slide 58: In closing
In closing Building a Trusted, Interconnected Bank * Our investments have created strong points of differentiation in fee products, partnerships, and scale * These differentiators drive future growth through deeper client relationships, interconnected products, and national reach + We have focus and
Slide 59: Investing in Our Future: A Panel Discussion
2024 lus bancorp INVESTOR DAY Investing in Our Future: A Panel Discussion Terry Dolan (Moderator) Vice Chair, Chief Administration Officer Dominic Venturo Senior Executive Vice President, Chief Digital Officer Dilip Venkatachari Senior Executive Vice President, Chief Information and Technology Offic
Slide 60: Our digital approach
Our digital approach Driving growth, engagement, and loyalty across the businesses through products and services Strategic prioritization while delivering... oA [°) Across the Segments Customer Servicing Digital Maturity Customer Acquisition Consumer, Small Business, Do-It-Yourself, Do-It- Available
Slide 61: Corporate Insight Mobile Monitor Competitive Research Report: Mobile Virtual Assistants, 1Q 2024 Javelin Strategy
1 2 3 4 Corporate Insight Mobile Monitor Competitive Research Report: Mobile Virtual Assistants, 1Q 2024 Javelin Strategy & Research, 2024; Kiplinger Personal Finance Best Firms for Customer Service: Mortgage Lenders, October 2020; Keynova Group semi- 5 6 7 annual Mobile Banker Scorecard, March 2024
Slide 62: Modernizing our technology
Modernizing our technology Enhancing the client experience as we deliver compelling products, services, and partnerships faster ier a oo Enhance customer applications . and interfaces Modernize our core systems Migrate to a unified data platform Supporting industry leading experiences; Increasing ef
Slide 63: Tech modernization enables business growth and increased financial efficiency
Tech modernization enables business growth and increased financial efficiency ¢ Simpler API-based architecture with increased re-use * Increased release frequency * Reduced mainframe usage and reliance ¢ Accelerated skill adoption Improved performance and reliability Faster time to market Increased
Slide 64: Artificial Intelligence is focused on the highest-impact areas
Artificial Intelligence is focused on the highest-impact areas Solid foundational bilities in | Operations / Service Reduced call center time L:-] + Call center assistance + Process automation Better marketing performance OO al + Personalization at scale Real-time marketing testing R&D and Enterpris
Slide 65: Driving business priorities via digital and technology
Driving business priorities via digital and technology rst excellence supports a better client experience, improved product quality, and footprint expansion Digital Scalability National Reach Fee Growth Client Depth * Build on Consumer * Award-winning digital * Excellence in money * Multiservice cli
Slide 66: Risk Management
2024 us bancorp. INVESTOR DAY Risk Management Jodi Richard Vice Chair, Chief Risk Officer
Slide 67: Credit risk management is a core competency
Credit risk management is a core competency A strong credit culture is key to our through-the-cycle performance Proven track record of credit performance during economic downturns Consistent approach to underwriting: * Portfolio diversification and proactive credit risk management No i or business c
Slide 68: • • • • • • Data as of June 30, 2024. $ in
• • • • • • Data as of June 30, 2024. $ in millions. ©U.S. Bancorp 1 2 Source: Peer company reports. See “Notes” slide in the appendix for information about the peer set; Office reserves are a part of our total CRE reserves.
Slide 69: 5% 4% 3% 2% 1% 0% 2003 2004 2005 2006 2007 2008 2009 2010
5% 4% 3% 2% 1% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3 Source: S&P Global. See “Notes” slide in the appendix for information about the peer set; Non-GAAP financial measure for 4Q22, 1Q23, and 2Q23; see appendix for calcul
Slide 70: Non-GAAP. Adjusted for notable items. See appendix for calculation and description of notable items
1 Non-GAAP. Adjusted for notable items. See appendix for calculation and description of notable items ©U.S. Bancorp
Slide 71: Enterprise risk management is a foundational strength
Enterprise risk management is a foundational strength E d to meet i ing regulatory exp Enable Advance N Navigate Focus on business All risk regulatory R key and growth o management environment — emerging risks + Speed to market within + Automate, simplify and * Strong risk culture and risk reviews i
Slide 72: Strengthened resiliency around external threats
Strengthened resiliency around external threats Centralized functions and capabilities enhance our ability to navigate existing and emerging risks Centralized & Coordinated + Investment in technology and data improve customer experience Risk Management through targeted detection + Artificial intelli
Slide 73: BitSight is an independent data-driven organization that measures the security performance of an organization
1 BitSight is an independent data-driven organization that measures the security performance of an organization and its vendors. ©U.S. Bancorp
Slide 74: Effective risk management is foundational to U.S. Bancorp
Effective risk management is foundational to U.S. Bancorp * Proven track record through economic cycles * Strong governance and risk culture * Proactive identification and mitigation of emerging threats Comprehensive | Proactive Consistent
Slide 75: Financial Management
2024 us bancorp. INVESTOR DAY Financial Management John Stern Senior Executive Vice President, Chief Financial Officer
Slide 76: COVID-19 Union Bank acquisition Inflation and interest rate dynamics Regulatory environment ©U.S. Bancorp
COVID-19 Union Bank acquisition Inflation and interest rate dynamics Regulatory environment ©U.S. Bancorp
Slide 77: • • • • 1H 2024 taxable-equivalent basis. Business line revenue percentages exclude Treasury
• • • • 1 1H 2024 taxable-equivalent basis. Business line revenue percentages exclude Treasury and Corporate Support. Non-GAAP. See appendix for reconciliation 2 ROTCE: Return on Tangible Common Equity. Non-GAAP. Adjusted for notable items and intangibles amortization. See appendix for calculation a
Slide 78: Non-GAAP. Adjusted for notable items. See appendix for calculation and description of notable items
1 Non-GAAP. Adjusted for notable items. See appendix for calculation and description of notable items ©U.S. Bancorp 2 Source: Visible Alpha, adjusted for certain non-GAAP items. See “Notes” slide in the appendix for information about the peer set
Slide 79: We are at an inflection point
We are at an inflection point As headwinds become tailwinds, we’re focused on building on our strong foundation + Rising interest rates / inverted yield curve * Normalizing rate environment / yield curve * Proposed rule making (e.g., Basel Ill End Game) + More clarity on proposed rule changes + Step
Slide 80: Financial management overview
Financial management overview Executing on our growth strategy while maintaining our strong risk discipline Capital-efficient loan growth; Focus on relationship-based deposit and loan growth Balance sheet strength Improved on- and off-balance sheet liquidity Agility to rate risk under i ite scenario
Slide 81: • • Ending balances ©U.S. Bancorp Source: S&P Global, Ending Balances, RWA is Standardized
• • 1 Ending balances ©U.S. Bancorp 2 Source: S&P Global, Ending Balances, RWA is Standardized Risk Weighted Assets. See “Notes” slide in the appendix for information about the peer set
Slide 83: • • • IRR = Interest rate risk Loans as of June 30, 2024
• • • IRR = Interest rate risk 1 Loans as of June 30, 2024 including both active and forward starting hedges ©U.S. Bancorp 2 Source: Visible Alpha. See “Notes” slide in the appendix for information about the peer set
Slide 85: Multiple levers drive net interest income growth
Multiple levers drive net interest income growth Our guiding principles cut across various components of the balance sheet Asset Optimization Fixed Asset Repricing Liability janagement IRR Management Continue to opportunistically reposition lower yielding earning assets into higher yielding Discipli
Slide 86: • • • Total adjusted fee revenue excludes notable items and investment securities gains/
• • • 1 2 Total adjusted fee revenue excludes notable items and investment securities gains/ (losses). Non-GAAP. See appendix for calculation and description of notable items; Transaction Services fees include Retail Payment Solutions, Merchant Payment 3 Solutions, Corporate Payment and Treasury So
Slide 87: • • • • ©U.S. Bancorp Non-GAAP. Adjusted for notable items. See appendix for
• • • • 1 ©U.S. Bancorp Non-GAAP. Adjusted for notable items. See appendix for calculation and description of notable items
Slide 88: • • • Source: Company disclosures. See “Notes” slide in the appendix for information
• • • 1 Source: Company disclosures. See “Notes” slide in the appendix for information about the peer set ©U.S. Bancorp
Slide 89: • • • • • • • Common equity tier capital to risk-weighted assets,
• • • • • • • 1 Common equity tier 1 capital to risk-weighted assets, reflecting Basel III standardized with 5 year CECL transition ©U.S. Bancorp
Slide 90: Capital distributions and targets
Capital distributions and targets Payout Ratio Earnings Distribution Targets 2022 2023 1H 2024 Reinvest and Acquisitions HM Dividend Ml Share Repurchases Hypothetical Earnings Distribution Example Dividend 40% Reinvestment Share repurchase 35% Assumed ROTCE Discretionary distributions 75% Balance sh
Slide 91: ROA ROTCE Fee Income Growth Efficiency Ratio Medium-term represents 2026 & 2027; FY2025 guidance
ROA ROTCE Fee Income Growth Efficiency Ratio 1 Medium-term represents 2026 & 2027; FY2025 guidance will be provided on our fourth quarter earnings call in January ©U.S. Bancorp
Slide 92: Taxable-equivalent basis ©U.S. Bancorp Non-GAAP. See appendix for calculations and descriptions of notable items
1 Taxable-equivalent basis ©U.S. Bancorp 2 Non-GAAP. See appendix for calculations and descriptions of notable items
Slide 93: Closing Remarks
2024 lus bancorp. INVESTOR DAY Closing Remarks Andy Cecere Chairman and CEO
Slide 94: A true inflection requires reflection
Atrue inflection requires reflection Employ / on where we were, y where we are, and where we’re headed We are to the following for our shareholders: Industry-leading returns Leveraging our scale advantage Positive operating leverage Increased capital levels and distribution Continued investment in o
Slide 95: Three final thoughts
Three final thoughts Interconnected, growth-oriented Capitalizing on inflection point Confident, outcome-focused We are operating as an interconnected, We will do the right things to capitalize We are confident in our ability to proactive and strategic organization on this moment to drive returns de
Slide 97: (1), (2) – See final page in appendix for corresponding notes ©U.S. Bancorp
(1), (2) – See final page in appendix for corresponding notes ©U.S. Bancorp
Slide 98: Non-GAAP Financial Measures
Non-GAAP Financial Measures (Dollars in Millions, Ui Line of Business Financial Perform: ‘Six Months Ended June 30, 2024 June June 30, 2024 26 i Net Revenue, Noninterest Income ‘Average Loans, ‘Average Deposits Wealth, Corporate, Commercial and neToVoraT Banking 6054 § 2,248 3a S 270,007 Consumer an
Slide 99: Non-GAAP Financial Measures
Non-GAAP Financial Measures Six Months Ended in Traditional loans and deposits Transaction services Wealth and capital markets Treoaur/an and 9 Cerperat Support Total Com; Less: Treasury and Corporate Support ‘Total Company excluding Treasur Percent of Total Company Traditional loans and deposits 51
Slide 100: (1) – See final page in appendix for corresponding notes ©U.S. Bancorp
(1) – See final page in appendix for corresponding notes ©U.S. Bancorp
Slide 101: (1) – See final page in appendix for corresponding notes ©U.S. Bancorp
(1) – See final page in appendix for corresponding notes ©U.S. Bancorp
Slide 102: (1), (2) – See final page in appendix for corresponding notes ©U.S. Bancorp
(1), (2) – See final page in appendix for corresponding notes ©U.S. Bancorp
Slide 103: Notes
Notes w Notable items for 31, 2023 of i i 4 . q 4 ay ome relat a0 rail : be ‘fiom of provision management actions. Notable items for the year-ended December 31, 2022 of $1.5 billion ($1.1 ic | ‘ene § provi Union Bank and balance sheet optimization activities. > Visa shares. June 30, 2024 $ June 30,

US Bancorp \de\ — Investor Day (September 2024) on 6ix

U.s. Bancorp — Investor Day (September 2024)

Slide 1: U.S. Bancorp

Slide 2: Forward-looking statements

Slide 3: Agenda

Slide 4: Agenda

Slide 5: Strategic Overview

Slide 6: We have weathered five years of market volatility and uncertainty

Slide 7: Evolving with the times

Slide 8: ©U.S. Bancorp

Slide 9: Investments positioned us well for long-term growth and greater efficiency

Slide 10: These strategic investments came at a cost

Slide 11: Non-GAAP. Adjusted for notable items. See appendix for calculation and description of notable items;

Slide 12: Our recent optimization efforts have focused on simplicity and efficiency

Slide 13: Average balances unless otherwise noted ©U.S. Bancorp Amounts reported for the three months ended

Slide 14: We are at an inflection point

Slide 15: A true inflection requires reflection

Slide 16: Today's agenda

Slide 17: Building on Our Strong Foundation

Slide 18: • • • • • • • • • • • ©U.S. Bancorp 1H

Slide 19: • • • • • • • • • • • ©U.S. Bancorp 1H

Slide 20: 1H 2024. Regional Peers and GSIBs sourced from Visible Alpha. See “Notes” slide in

Slide 21: Wealth and Capital Markets strategy

Slide 22: Examples show average line of business loan balances for Q 2024. Credit Card includes

Slide 23: • • • Client satisfaction scores based on U.S. Bank benchmarking programs as of

Slide 24: • • • Data as of June 30, 2024 unless otherwise noted ©U.S. Bancorp

Slide 25: Building a trusted, interconnected bank

Slide 26: Interconnectedness Drives Our Growth

Slide 27: • • • • • • • • Client data as of March 31,

Slide 28: ©U.S. Bancorp Reflects the most recent externally reported information

Slide 29: • • • • • • • • • • ©U.S. Bancorp Javelin Strategy

Slide 30: • • • • Data sourced from 2Q 2024 public earnings releases. Peer set

Slide 31: • • • • • • • • • • • • California percentage

Slide 32: • • • • • • • • • Based on average deposits per

Slide 33: Branch transformation is improving our distribution

Slide 34: Growth rates represent December 31, 2019 through June 30, 2024; Javelin Strategy & Research,

Slide 35: • • • • • • • • • As of December 31, 2023.

Slide 36: In closing, we deliver for our clients, every day

Slide 37: Interconnectedness Drives Our Growth

Slide 38: • • • • • • • • • Client data as of March

Slide 39: Reflects the most recent externally reported information; Excludes debit and prepaid ©U.S. Bancorp

Slide 40: Our payments journey

Slide 41: Our strategy for growth

Slide 42: ~40% ~25% 29% 22% 13% 10% ©U.S. Bancorp

Slide 43: CAGR based on 2019-2023 ©U.S. Bancorp

Slide 44: • • • • • • • As of July 31, 2024; As of

Slide 45: In closing, Payments is an integrated business

Slide 46: Interconnectedness Drives Our Growth

Slide 47: • • • • • • • • • • • • Client data

Slide 48: ©U.S. Bancorp Reflects the most recent externally reported information

Slide 49: Our institutional journey

Slide 50: Based on ~2,500 relationships. Relationships include all syndicated institutional relationships and does not represent

Slide 51: • • • • • • • • • • • • • •

Slide 52: • • • • ©U.S. Bancorp US and Europe market share data sourced from

Slide 53: Revenue for the year ended December 31, 2023; CAGR for growth from 2020 -

Slide 54: ©U.S. Bancorp Includes the addition of Union Bank acquisition that occurred in December 2022

Slide 55: Total new hires from January 1, 2023 to June 30, 2024 ©U.S. Bancorp

Slide 56: In closing, we are proving out our growth strategy

Slide 57: Interconnectedness Drives Our Growth

Slide 58: In closing

Slide 59: Investing in Our Future: A Panel Discussion

Slide 60: Our digital approach

Slide 61: Corporate Insight Mobile Monitor Competitive Research Report: Mobile Virtual Assistants, 1Q 2024 Javelin Strategy

Slide 62: Modernizing our technology

Slide 63: Tech modernization enables business growth and increased financial efficiency

Slide 64: Artificial Intelligence is focused on the highest-impact areas

Slide 65: Driving business priorities via digital and technology

Slide 66: Risk Management

Slide 67: Credit risk management is a core competency

Slide 68: • • • • • • Data as of June 30, 2024. $ in

Slide 69: 5% 4% 3% 2% 1% 0% 2003 2004 2005 2006 2007 2008 2009 2010

Slide 70: Non-GAAP. Adjusted for notable items. See appendix for calculation and description of notable items

Slide 71: Enterprise risk management is a foundational strength

Slide 72: Strengthened resiliency around external threats

Slide 73: BitSight is an independent data-driven organization that measures the security performance of an organization

Slide 74: Effective risk management is foundational to U.S. Bancorp

Slide 75: Financial Management

Slide 76: COVID-19 Union Bank acquisition Inflation and interest rate dynamics Regulatory environment ©U.S. Bancorp

Slide 77: • • • • 1H 2024 taxable-equivalent basis. Business line revenue percentages exclude Treasury

Slide 78: Non-GAAP. Adjusted for notable items. See appendix for calculation and description of notable items

Slide 79: We are at an inflection point