U.s. Bancorp · NYSE:USB
U.s. Bancorp — Barclays Americas Select Franchise Conference 2013
33 slides from U.s. Bancorp's conference presentation, May 21, 2013
Slide 1: Barclays Americas Select Franchise Conference 2013
Barclays Americas Select Franchise Conference 2013 Andy Cecere Vice Chairman and CFO May 22, 2013
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: U.S. Bancorp Overview, Capital Management, Business Lines, 2Q13 Update, Summary
U.S. Bancorp Overview Capital Management Business Lines 2Q13 Update Summary
Slide 4: U.S. Bancorp
U.S. Bancorp International Consumer & Business Banking ‘Wholesale Bankin Payments and Corporate Trust ‘and Wealth Management and Wealth Management & Securities Services & 4 bancorp.
Slide 5: U.S. Bancorp European Presence
U.S. Bancorp European Presence European Offices Elavon Corporate Trust London Dublin Diegem Frankfurt Arklow Loughlinstown Oslo Poznan Warsaw Madrid Watford Overview
Slide 6: U.S. Bancorp Dimensions
U.S. Bancorp Dimensions * As of May 10, 2013 Asset Size $355 billion Deposits $248 billion Loans $223 billion Customers 17.6 million NYSE Traded USB Market Capitalization* $62 billion Founded 1863 Bank Branches 3,080 ATMs 5,056 1Q13 Dimensions Overview
Slide 7: U.S. Bancorp Dimensions
U.S. Bancorp Dimensions Source: company reports, SNL and FactSet Assets and deposits as of 1Q13, market value as of May 10, 2013 Overview
Slide 8: Peer Bank Ticker Symbols
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 Peer Banks Overview
Slide 9: Diversification
Diversification 2012 full year, taxable-equivalent basis Excluding securities gains (losses) net Revenue Mix By Business Line (CHART) Consumer and Small Business Banking 47% Payment Services 26% Wealth Mgmt and Securities Services 8% Wholesale Banking and Commercial Real Estate 19% Fee Income / Tota
Slide 10: Diversification
Diversification Source: FR Y-9C and company reports, 2012 full year Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC U.S. Bancorp Revenue Mix (CHART) (CHART) Peer Bank Average Revenue Mix Net Interest Income Payments Fee Revenue Fiduciary Activities Service Charges Mortgage Fees Trading, B
Slide 11: Performance Metrics
Performance Metrics Source: SNL and company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Return on Average Assets Return on Average Common Equity Efficiency Ratio Since 1Q08 1Q13 (CHART) (CHART) (CHART) (CHART) (CHART) (CHART) Overview
Slide 12: Revenue Growth
Revenue Growth $ in millions, taxable-equivalent basis (CHART) (CHART) Prior 5 Years Year-Over-Year Growth 4.4% 13.6% 8.9% 5.3% 6.2% Prior 5 Quarters Year-Over-Year Growth 9.1% 8.1% 8.0% 0.2% (1.1%) USB Record Revenue 2012 Overview
Slide 13: Loan and Deposit Growth
Loan and Deposit Growth $ in billions (CHART) (CHART) 6% 12% 8% 6% 9% 6% 11% 11% 7% 4% 4% 11% 13% 12% 10% 15% 7% 12% 24% Loans Deposits Prior 5 Years Average Balances Year-Over-Year Growth Prior 5 Quarters Average Balances Year-Over-Year Growth 7% Overview
Slide 14: Credit Quality
Credit Quality * Excluding Covered Assets (assets subject to loss sharing agreements with FDIC) ** Related to a regulatory clarification in the treatment of residential mortgage and other consumer loans to borrowers who have exited bankruptcy but continue to make payments on their loans *** Excludin
Slide 15: U.S. Bancorp Overview, Capital Management, Business Lines, 2Q13 Update, Summary
U.S. Bancorp Overview Capital Management Business Lines 2Q13 Update Summary
Slide 16: Capital Position
Capital Position $ in billions; SIFI = systemically important financial institutions * Approximated using proposed rules for Basel III standardized approach released June 2012 (CHART) TARP Equity Tier 1 Capital Tier 1 Capital Ratio Tier 1 Common Ratio 1Q13 Tier 1 Common Ratio Basel III: 8.2%* Capita
Slide 17: Stress Test Results
Stress Test Results Dodd-Frank Act Stress Test results and USB internal stress test results and methodologies released 3/7/13 Comprehensive Capital Analysis and Review results released 3/14/13 The Federal Reserve did not object to USB's capital plan (CHART) (CHART) PPNR = Pre-Provision Net Revenue S
Slide 18: Capital Actions
Capital Actions Share repurchase authorization and expected dividend increase announced March 14th Expect to increase annual dividend from $0.78 to $0.92, an 18% increase, effective 2Q13 One year authorization to repurchase up to $2.25 billion of outstanding stock effective April 1, 2013 Returned 62
Slide 19: Capital Expenditures and Technology Investments
Capital Expenditures Technology Investments Mortgage banking In-store and on-site branches Wholesale banking expansion Ascent Private Capital Management International payments expansion Internet and mobile banking channels Tier 4 data center Call center telephony Distribution channel integration (CH
Slide 20: Acquisitions
Acquisitions 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 Citizens National Bank Credi
Slide 21: Debt Ratings
Holding company as of May 10, 2013 Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Debt Ratings op=outlook positive on=outlook negative s=outlook stable wn=watch negative wp=watch positive Capital Management
Slide 22: U.S. Bancorp Overview, Capital Management, Business Lines, 2Q13 Update, Summary
U.S. Bancorp Overview Capital Management Business Lines 2Q13 Update Summary
Slide 23: Mix of Businesses
Mix of Businesses Payment Services Retail Payment Solutions Corporate Payment Systems Global Merchant Acquiring Wealth Management and Securities Services Wealth Management Asset Management Corporate Trust Fund Services Institutional Trust & Custody Consumer and Small Business Banking Metropolitan Ba
Slide 24: Growing Market Share
Growing Market Share Middle Market Loan 19th 6th Bookrunner Investment Grade Loan 11th 5th Bookrunner Investment Grade Bond NA 8th Lead / Co-lead Source: Thomson Reuters based on number of issues 2012 2007 USB Market Rank Market Share Change Core Deposits 2.0% 2.6% Consumer Loans 1.8% 3.2% Mortgage
Slide 25: Corporate Trust Business Lines
Corporate Trust Business Lines (CHART) Escrow 20% Municipal 21% Structured 42% Corporate 8% Document Custody 5% Default 4% Services Trustee Paying Agent Escrow Agent Document Custody Key Statistics 48 U.S. Offices 3 International Offices $3.5 Trillion AUA 124,800 Issuances Revenue Mix (CHART) (CHART
Slide 26: Payment Services
Payment Services Source: Nilson (Visa and MasterCard issuers); Revenue contribution and mix full year 2012 (CHART) Business Line Summary Provides a full suite of payment processing services to consumers, small businesses, corporations and merchants Expanding internationally in merchant acquiring thr
Slide 27: U.S. Bancorp Overview, Capital Management, Business Lines, 2Q13 Update, Summary
U.S. Bancorp Overview Capital Management Business Lines 2Q13 Update Summary
Slide 28: 2Q13 Update
2Q13 Update Business Climate Mortgage Activity Loan Growth Net Interest Margin 2Q13 Update
Slide 29: U.S. Bancorp Overview, Capital Management, Business Lines, 2Q13 Update, Summary
U.S. Bancorp Overview Capital Management Business Lines 2Q13 Update Summary
Slide 30: Summary
Summary 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, corporate
Slide 31: Appendix
Appendix Barclays Americas Select Franchise Conference
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures Appendix
Slide 33: Barclays Americas Select Franchise Conference 2013
Barclays Americas Select Franchise Conference 2013
US Bancorp \de\ — Barclays Americas Select Franchise Conference 2013 on 6ix