U.s. Bancorp · NYSE:USB
U.s. Bancorp — Barclays Americas Select Franchise Conference 2014
37 slides from U.s. Bancorp's conference presentation, May 12, 2014
Slide 1: Barclays Americas Select Franchise Conference 2014
Barclays Americas Select Franchise Conference 2014 May 13, 2014 Richard K. Davis Chairman, President and CEO
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 Business Lines Long-term Goals
Slide 4: Extending the Advantage
EXTENDING THe apvantace U.S. Bancorp Regional National International Consumer & Business Banking Payments and Secu and Wealth Management and Wealth Management & Securities Services, scoperte rust roe Soro
Slide 5: U.S. Bancorp European Presence
European Offices Elavon Corporate Trust/Fund Services Cherrywood Dublin Arklow London Diegem Frankfurt Oslo Warsaw Madrid Watford U.S. Bancorp European Presence
Slide 6: U.S. Bancorp Dimensions
U.S. Bancorp Dimensions Asset Size $371 billion Deposits $261 billion Loans $238 billion Customers 17.9 million NYSE Traded USB Market Capitalization* $74 billion Founded 1863 Bank Branches 3,083 ATMs 4,878 1Q14 Dimensions * As of May 1, 2014
Slide 7: Industry Positions
Industry Positions Source: company reports, SNL and FactSet Assets and deposits as of 3/31/14, market value as of 5/1/14
Slide 8: Agenda
Agenda Overview Financial Management Capital Management Business Lines Long-term Goals
Slide 9: Diversified Business Mix
Revenue Mix By Business Line (CHART) Consumer and Small Business Banking 44% Payment Services 28% Wealth Mgmt and Securities Services 9% Wholesale Banking and Commercial Real Estate 19% Fee Income / Total Revenue (CHART) Full year 2013, taxable-equivalent basis, excluding securities gains (losses) n
Slide 10: 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 11: Industry Leading Returns
Return on Average Assets Return on Average Common Equity Efficiency Ratio 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 basi
Slide 12: Efficient Expense Platform
Efficient Expense Platform Single processing platforms Full consolidation of acquisitions Operating scale in all significant businesses Business line monthly review process 2013 Efficiency Ratio (CHART) Source of Competitive Advantage Source: SNL and company reports; Peer banks: BAC, BBT, FITB, JPM,
Slide 13: Loan and Deposit Growth
$ in billions Loans Deposits Prior 5 Years Average Balances Year-Over-Year Growth Prior 5 Quarters Average Balances Year-Over-Year Growth (CHART) (CHART) 6% 7% 6% 6% 5% 5% 5% 5% 7% 4% 7% 6% 12% 4% 15% 11% 6% 23% 10% 6% Loan and Deposit Growth
Slide 14: Revenue Growth
Taxable-equivalent basis (CHART) Prior 5 Quarters Year-Over-Year Growth (CHART) Prior 5 Years Year-Over-Year Growth 5.3% 6.2% (3.4%) 13.6% (1.1%) (2.4%) (5.6%) (4.4%) (1.2%) $ in millions Revenue Growth 8.9%
Slide 15: Credit Quality
$ in millions * Excluding Covered Assets (assets subject to loss sharing agreements with FDIC) Net Charge-offs Nonperforming Assets* Net Charge-offs (Left Scale) NCOs to Avg Loans (Right Scale) Nonperforming Assets (Left Scale) NPAs to Loans plus ORE (Right Scale) Credit Quality (CHART) (CHART)
Slide 16: Credit Quality
$ in millions; Reserve release is calculated as net charge-offs less provision for credit losses over the five quarter period * Excluding Covered Loans (loans subject to loss sharing agreements with FDIC) Allowance to Loans* Reserve Release / Net Income (Prior 5 quarters) Total Allowance for Credit
Slide 17: Top of Class Debt Ratings
Debt ratings: holding company as of May 1, 2014 op=outlook positive on=outlook negative s=outlook stable wn=watch negative wp=watch positive Flight to quality Funding advantage On April 24th we issued: $1.25 billion of 5-year fixed rate medium term notes with a 2.20% coupon at a 50 bp spread over Tr
Slide 18: Agenda
Agenda Overview Financial Management Capital Management Business Lines Long-term Goals
Slide 19: Capital Management
Capital Requirement Tangible book value (TBV) = book value per share excluding intangible assets other than mortgage servicing rights Return on average tangible common equity (ROTCE) = net income, adjusted for after-tax amortization of intangibles, as a percent of average tangible common equity; see
Slide 20: Earnings Distribution Target
Earnings Distribution Target (CHART) 62% 11% 32% Reinvest and Acquisitions Dividends Share Repurchases 20 - 40% 30 - 40% 30 - 40% Payout Ratio 71% Capital Management
Slide 21: Stress Test Results
Dodd-Frank Act Stress Test results and USB internal stress test results and methodologies released March 20, 2014 Comprehensive Capital Analysis and Review results released March 26, 2014 The Federal Reserve did not object to USB's capital plan PPNR = Pre-Provision Net Revenue Source: Federal Reserv
Slide 22: Capital Actions
Share repurchase authorization and expected dividend increase announced March 26th Expect to increase annual dividend from $0.92 to $0.98, a 6.5% increase, effective 2Q14 One year authorization to repurchase up to $2.3 billion of outstanding stock effective April 1, 2014 Reinvest and Acquisitions Di
Slide 23: Acquisitions
(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 Citizens National Bank Credit car
Slide 24: Agenda
Agenda Overview Financial Management Capital Management Business Lines Long-term Goals
Slide 25: Business Mix
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 Branch Banking Small Business Ban
Slide 26: Growing Market Share
Core Deposits 2.0% 2.6% Consumer Loans 1.8% 3.3% Mortgage Origination 0.7% 3.5% C&I Loans 3.2% 3.7% CRE Loans 1.6% 2.4% Source: SNL and Mortgagestats 4Q13 1Q07 USB Share Market Share Change Middle Market Loan 1.2% 6.7% Bookrunner Investment Grade Loan 0.3% 2.2% Bookrunner Investment Grade Bond NA 4.
Slide 27: Corporate Trust
Corporate Trust (CHART) Escrow 10% Municipal 24% Structured 47% Corporate 10% Document Custody 6% Default 3% Services Trustee Paying Agent Escrow Agent Document Custody Key Statistics 49 U.S. Offices 3 International Offices $3.6 Trillion AUA ~122,000 Issuances Revenue Mix (CHART) (CHART) (CHART) Cor
Slide 28: Payment Services
Business Line Summary Provides a full suite of payment processing services to consumers, small businesses, corporations and merchants Expanding internationally in merchant acquiring through continued investment in partnerships and an international merchant payment platform; also launched internation
Slide 29: Merchant Acquiring - International Expansion
Merchant Acquiring - International Expansion 2000 2014 Corporate Trust and Fund Services offices in London and Dublin 2007
Slide 30: Agenda
Agenda Overview Financial Management Capital Management Business Lines Long-term Goals
Slide 31: 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, corporate banking,
Slide 32: Appendix
EXTENDING THe apvantace Appendix
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 34: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 35: Tangible Book Value and Return on Average Tangible Common Equity
Non-GAAP Financial Measures Tangible Book Value and Return on Average Tangible Common Equity
Slide 36: Line of Business Financial Performance
$ in millions, taxable-equivalent basis, excluding securities gains (losses) net Non-GAAP Financial Measures Line of Business Financial Performance
Slide 37: Barclays Americas Select Franchise Conference 2014
Barclays Americas Select Franchise Conference 2014
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