27 slides from U.s. Bancorp's earnings presentation, Jul 15, 2015
Slide 1: U.S. Bancorp 2Q15 Earnings Conference Call
Exhibit 99.2 U.S. Bancorp 2Q15 Earnings Conference Call Richard K. Davis Chairman, President and CEO Kathy Rogers Vice Chairman and CFO July 15, 2015
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: 2Q15 Highlights
2Q15 Highlights Net income of $1.5 billion; $0.80 per diluted common share Average loan growth of 4.0% vs. 2Q14 and 0.7% vs. 1Q15 (excluding student loans, which were reclassified to held for sale at the end of 1Q15) Average deposit growth of 8.9% vs. 2Q14 and 2.6% vs. 1Q15 Improving trends in payme
Slide 4: Performance Ratios
Performance Ratios Return on Average Common Equity Efficiency Ratio and and Return on Average Assets Net Interest Margin 20% 3.0% 64% 4.0% 17% 2.5% 60% 3.27% 3.4% 3.16% 3.14% 15.1% 3.08% 3.03% 14.5% 14.4% 14.1% 14.3% 14% 2.0% 56% 2.8% 54.3% 54.3% 53.1% 53.2% 1.60% 52.4% 1.51% 1.50% 11% 1.44% 1.46% 1
Slide 5: Revenue Growth
Revenue Growth $ in millions Year-Over-Year Change 4.9% 2.0% 5.7% 1.9% (2.8%) 0.5% excluding 3.2% excluding 1.4% excluding 5,500 2Q14 notable 4Q14 notable 2Q14 notable $5,188 $5,169 $5,042 $214 $4,990 $124 5,000 $4,906 4,500 4,000 3,500 2Q14 3Q14 4Q14 1Q15 2Q15 Notable items: 2Q14 Visa gain $214 mil
Slide 6: Loan and Deposit Growth
Loan and Deposit Growth $ in billions Year-Over-Year Growth 2Q15 adjusted* Average Balances loan growth = 4.0% 8.9% 290 $285.7 8.1% 7.2% $278.5 7.4% $275.5 $271.0 270 6.0% $262.4 5.9% 5.1% 2.5% 250 6.3% $246.4 $248.0 $246.6 6.8% $243.9 $240.5 230 210 2Q14 3Q14 4Q14 1Q15 2Q15 Loans Deposits * Excludi
Slide 7: Credit Quality
Credit Quality $ in millions Net Charge-offs Nonperforming Assets 520 3.00% 2,800 3.00% 390 2.25% 2,100 $1,943 $1,923 2.25% $349 $336 $1,808 $308 $1,696 $296 $1,577 $279 260 1.50% 1,400 1.50% 0.80% 0.78% 0.73% 0.69% 0.63% 130 0.58% 0.55% 0.75% 700 0.75% 0.50% 0.46% 0.48% 0 0.00% 0 0.00% 2Q14 3Q14 4Q
Slide 8: Earnings Summary
Earnings Summary $ and shares in millions, except per-share data % B/(W) YTD YTD 2Q15 1Q15 2Q14 vs 1Q15 vs 2Q14 2015 2014 %B/(W) Net Interest Income $ 2,770 $ 2,752 $ 2,744 0.7 0.9 $ 5,522 $ 5,450 1.3 Noninterest Income 2,272 2,154 2,444 5.5 (7.0) 4,426 4,552 (2.8) Net Revenue 5,042 4,906 5,188 2.8
Slide 9: Net Interest Income
Net Interest Income Net Interest Income Key Points $ in millions Year-Over-Year Change vs. 2Q14 2.7% 1.3% 2.4% 1.7% 0.9% Average earning assets grew $30.4 billion, or 9.1% 4,000 8.0% Net interest margin lower 24 bps (3.03% vs. 3.27%) Growth in the investment portfolio at lower average rates as well
Slide 10: Noninterest Income
Noninterest Income Noninterest Income Key Points $ in millions Year-Over-Year Change vs. 2Q14 7.4% 3.0% 9.9% 2.2% (7.0%) Noninterest income decreased $172 million, or 7.0% (1.9% increase excluding notable item in 2Q14) 2,800 $2,444 • Higher trust and investment management fees (7.4% increase) $2,370
Slide 11: Noninterest Expense
Noninterest Expense Noninterest Expense Key Points $ in millions Year-Over-Year Change vs. 2Q14 7.7% 1.9% 4.5% 4.8% (2.6%) Noninterest expense decreased $71 million, or 2.6% (5.1% increase excluding notable item in 2Q14) 3,200 $2,753 $2,804 • Higher compensation (6.3% increase) reflecting the impact
Slide 12: Capital Position
Capital Position $ in billions 2Q15 1Q15 4Q14 3Q14 2Q14 Total U.S. Bancorp shareholders' equity $ 44.5 $ 44.3 $ 43.5 $ 43.1 $ 42.7 Standardized Approach Basel III transitional standardized approach Common equity tier 1 capital ratio 9.5% 9.6% 9.7% 9.7% 9.6% Tier 1 capital ratio 11.0% 11.1% 11.3% 11.
Slide 13: Capital Actions
Capital Actions Dividend increase announced June 16 • Annual dividend increased from $0.98 to $1.02 per share, a 4.1% increase One year authorization to repurchase up to $3.0 billion of outstanding common stock effective April 1, 2015 Returned 76% of earnings to shareholders during 2Q15 Payout Ratio
Slide 14: Appendix
Appendix (Sbancorp
Slide 15: Average Loans
Average Loans Average Loans Key Points $ in billions Year-Over-Year Growth 4.0%* vs. 2Q14 6.8% 6.3% 5.9% 5.1% 2.5% Average total loans increased by $6.1 billion, or 280 2.5% ($9.5 billion, or 4.0% increase excluding $243.9 $246.4 $248.0 $246.6 $240.5 student loans, which were reclassified to held fo
Slide 16: Average Deposits
Average Deposits Average Deposits Key Points $ in billions Year-Over-Year Growth vs. 2Q14 6.0% 7.4% 7.2% 8.1% 8.9% Average total deposits increased by $23.3 320 billion, or 8.9% $275.5 $278.5 $285.7 $271.0 $262.4 Average low-cost deposits (NIB, interest 240 3.3% 5.2% 7.7% checking, money market and
Slide 17: Credit Quality – Commercial Loans
Credit Quality – Commercial Loans $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 100,000 2.0% 2Q14 1Q15 2Q15 Average Loans $69,920 $76,183 $77,932 $76,183 $77,932 30-89 Delinquencies 0.23% 0.19% 0.19% $72,190 $74,333 75,000 $69,920 1.5% 90+ Delinquencies 0.06% 0.06% 0.05% Nonp
Slide 18: Credit Quality – Commercial Leases
Credit Quality – Commercial Leases $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 9,000 2.1% 2Q14 1Q15 2Q15 Average Loans $5,100 $5,325 $5,321 30-89 Delinquencies 0.75% 0.84% 0.81% 6,000 $5,100 $5,155 $5,292 $5,325 $5,321 1.4% 90+ Delinquencies 0.00% 0.00% 0.00% Nonperforming
Slide 19: Credit Quality – Commercial Real Estate (CRE)
Credit Quality – Commercial Real Estate (CRE) $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 60,000 1.5% 2Q14 1Q15 2Q15 Average Loans $40,497 $42,671 $42,446 $40,497 $40,839 $40,966 $42,671 $42,446 30-89 Delinquencies 0.14% 0.24% 0.12% 40,000 1.0% 90+ Delinquencies 0.06% 0.07%
Slide 20: Credit Quality – Residential Mortgage
Credit Quality – Residential Mortgage $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 60,000 2.0% 2Q14 1Q15 2Q15 $51,815 $51,994 $51,872 $51,426 $51,114 Average Loans $51,815 $51,426 $51,114 30-89 Delinquencies 0.48% 0.38% 0.38% 45,000 1.5% 90+ Delinquencies 0.49% 0.33% 0.30% N
Slide 21: Credit Quality – Credit Card
Credit Quality – Credit Card $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 24,000 12.0% 2Q14 1Q15 2Q15 Average Loans $17,384 $17,823 $17,613 $17,753 $17,990 $17,823 30-89 Delinquencies 1.13% 1.16% 1.16% $17,384 $17,613 18,000 9.0% 90+ Delinquencies 1.06% 1.19% 1.03% Nonperfor
Slide 22: Credit Quality – Home Equity
Credit Quality – Home Equity $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 20,000 4.0% 2Q14 1Q15 2Q15 Average Loans $15,327 $15,897 $15,958 $15,704 $15,853 $15,897 $15,958 $15,327 30-89 Delinquencies 0.50% 0.41% 0.36% 15,000 3.0% 90+ Delinquencies 0.26% 0.25% 0.25% Nonperform
Slide 23: Credit Quality – Retail Leasing
Credit Quality – Retail Leasing $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 8,000 0.8% 2Q14 1Q15 2Q15 Average Loans $6,014 $5,819 $5,696 $6,014 $5,991 $5,939 30-89 Delinquencies 0.16% 0.12% 0.17% $5,819 $5,696 6,000 0.6% 90+ Delinquencies 0.00% 0.00% 0.00% Nonperforming Loa
Slide 24: Credit Quality – Other Retail
Credit Quality – Other Retail $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 40,000 2.0% 2Q14 1Q15 2Q15 Average Loans $26,587 $27,604 $25,415 30-89 Delinquencies 0.47% 0.44% 0.48% 30,000 $27,003 $27,317 $27,604 1.5% $26,587 90+ Delinquencies 0.11% 0.11% 0.10% $25,415 Nonperfor
Slide 25: Credit Quality – Auto Loans
Credit Quality – Auto Loans $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 20,000 2.0% 2Q14 1Q15 2Q15 Average Loans $14,108 $15,013 $15,609 $15,609 $14,404 $14,644 $15,013 30-89 Delinquencies 0.38% 0.30% 0.35% 15,000 $14,108 1.5% 90+ Delinquencies 0.03% 0.01% 0.02% Nonperformi
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures June 30, March 31, December 31, September 30, June 30, (Dollars in Millions, Unaudited) 2015 2015 2014 2014 2014 Total equity $45,231 $44,965 $44,168 $43,829 $43,386 Preferred stock (4,756) (4,756) (4,756) (4,756) (4,756) Noncontrolling interests (694) (688) (689) (688) (
Slide 27: U.S. Bancorp 2Q15 Earnings Conference Call
U.S. Bancorp 2Q15 Earnings Conference Call July 15, 2015