U.s. Bancorp · NYSE:USB
U.s. Bancorp — Investor Day (September 2010)
175 slides from U.s. Bancorp's investor day presentation, Sep 15, 2010
Slide 1: U.S. Bancorp Investor Conference September 15, 2010
U.S. Bancorp Investor Conference September 15, 2010
Slide 2: Agenda
Agenda Time Topic Presenter 9:00-11:30 "Building the Foundation" Richard Davis, Andy Cecere, Bill Parker, Rich Hidy and Mac McCullough 11:30-12:00 Morning Q&A Morning Presenters 12:00-1:00 Lunch 1:00-3:30 "Executing the Plan" Joe Hoesley, Joseph Otting, Dick Payne, Rick Hartnack, Terry Dolan and Pam
Slide 3: 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 4: Strategic Overview
U.S. Bancorp Strategic Overview September 15, 2010 U.S. Bancorp Investor Conference Richard K. Davis Chairman, President and CEO
Slide 5: U.S. Bancorp Overview
U.S. Bancorp Overview Regional Consumer & Business Banking & Wealth Management International Payments National Wholesale Banking & Trust Services
Slide 6: U.S. Bancorp Overview: 2Q10 Dimensions
U.S. Bancorp Overview 2Q10 Dimensions Asset Size $283 billion Deposits $183 billion Loans $192 billion Customers 17.2 million NYSE Traded USB Market Capitalization* $43 billion Founded 1863 Bank Branches 3,002 ATMs 5,309 * As of 9/10/10 International Payments Regional Consumer & Business Banking & W
Slide 7: U.S. Bancorp Overview: Asset and Market Value Rank
U.S. Bancorp Overview Source: company reports & FactSet Assets as of 2Q10, Market Value as of 9/10/10 U.S. Rank Company $Billions 1 Bank of America $2,364 2 J.P. Morgan 2,014 3 Citigroup 1,938 4 Wells Fargo 1,226 5 U.S. Bancorp 283 6 PNC 262 7 SunTrust 171 8 BB&T 155 9 Regions 135 10 Fifth Third 112
Slide 8: Mix of Businesses
Mix of Businesses Consumer Wholesale PCTAM Payments Revenue 43 20 9 28 Consumer & Small Business Banking 43% WM&SS 9% Wholesale 20% Payments 28% Payment Services Retail Payment Solutions Corporate Payment Systems Global Merchant Acquiring Wealth Management & Securities Services Wealth Management Cor
Slide 9: Goals
Goals Minimum 20% ROE Reducing credit and earnings volatility Targeting 80% return of earnings to shareholders Providing high-quality customer service Investing for future growth 10% long-term EPS growth 2007 2010 Normalized ROE 17-19% Reducing credit and earnings volatility Targeting return of the
Slide 10: Building on our Strengths
Building on our Strengths... Expense Driven Conservative Credit Culture Efficient Operating Model Strong Capital Generation Fortress Balance Sheet Diversification of Risk Low Revenue Volatility Strong Defense (2001 - 2006)
Slide 11: Continuing to Invest
Continuing to Invest... Flight-to-Quality Expense Driven Conservative Credit Culture Efficient Operating Model Strong Capital Generation Fortress Balance Sheet Diversification of Risk Low Revenue Volatility Conservative Credit Culture Efficient Operating Model Strong Capital Generation Fortress Bala
Slide 12: Positioned to Win
Positioned to Win Flight-to-Quality Expense Driven Organic Market Share Gain Conservative Credit Culture Efficient Operating Model Strong Capital Generation Fortress Balance Sheet Diversification of Risk Low Revenue Volatility Conservative Credit Culture Efficient Operating Model Strong Capital Gene
Slide 13: What You Will Hear Today
What You Will Hear Today Strong Defense will continue... Investing for Profitable Growth will continue... Positioned to Win by focusing on: Relevant scale Customer experience Leveraging technology Employee engagement
Slide 14: Employee Engagement
Employee Engagement Highly engaged and satisfied employees Enhance performance driven culture Maintain and increase superior customer service and loyalty Improve company performance and shareholder value Source: Kenexa WorkTrends normative database 2008 2009 2010 USB 66 71 72 Banking / Financial Ser
Slide 15: What You Will Hear Today
What You Will Hear Today Strong Defense will continue... Investing for Profitable Growth will continue... Positioned to Win by focusing on: Relevant scale Customer experience Leveraging technology Employee engagement Winning leads to:
Slide 16: Shareholder Value Creation
Shareholder Value Creation Shareholder Value Industry Leading Growth & Profitability Gains in Market Share
Slide 17: What you said about USB in 2007
What you said about USB in 2007 Diverse and robust business model Disciplined cost management Effective capital management Prudent credit management Consistent performance above peers Shareholder Value Expense Driven Conservative Credit Culture Efficient Operating Model Strong Capital Generation For
Slide 18: What you are saying about USB today
What you are saying about USB today "...well positioned given strong capital ratios and conservative risk management practices." "Franchise investments are starting to deliver solid benefits..." "...the company is well positioned to benefit from economic recovery..." "Given its diversified business
Slide 19: How we would like you to think about USB going forward
How we would like you to think about USB going forward Fundamentals remain in place - strong balance sheet, prudent capital management, attractive business model, excellent performance, and focus on shareholder value Management has delivered on its recent investments, therefore expect new investment
Slide 20: Strategic Overview: Positioned to Win
Bancorp Investor Conference - Strategic Overview Positioned to Win Strong Defense Investing for Growth Positioned to Win Relevant Sale Customer Experience Leveraging Teennooay Enterprise Revenue Office atonal Corporate Banking atonal Mrgage Banking ‘epost Pring Peny Brand Development Selective MBA V
Slide 21: Strategic Overview
Strategic Overview September 15, 2010 U.S. Bancorp Investor Conference Richard K. Davis Chairman, President and CEO
Slide 22: Financial Management
Financial Management September 15, 2010 U.S. Bancorp Investor Conference Andy Cecere Vice Chairman and CFO
Slide 23: 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 24: Financial Management Agenda
Advantaged Position Investing for Growth Regulatory Environment Long-term Growth Expectations Positioned to Win Financial Management
Slide 25: Advantaged Position: Leading profitability throughout the cycle
Advantaged Position Maintained leading profitability throughout the cycle USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROA 0.0101 0.0087 0.0083 0.0077 0.0053 0.003 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROCE 0.112 0.085 0.084 0.073 0.059 0.013 USB Pe
Slide 26: Advantaged Position: Mix of fee-based businesses
Advantaged Position Advantageous mix of fee-based businesses Trailing 4 quarters as of 2Q10; Source: SNL and company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Net Interest Income Payments Fiduciary Service Charges Mortgage Trading, Brokerage, Inv Banking, Private Equity Othe
Slide 27: Advantaged Position: Growing the business
Advantaged Position Peer Median - -1% Growing the business 2009 Noninterest Bearning 41673 Savings 96554 Time 44896 2007 Noninterest Bearing 33334 Savings 58298 Time 39813 2007 Ending Deposits $131 billion 2Q10 Ending Deposits $183 billion 2009 Commercial 46766 Commercial Real Estate 33944 Residenti
Slide 28: Advantaged Position: Growing the business
Growing the business Advantaged Position 2009 Consumer 36 Wholesale 25 Wealth Management 5 Payments 34 2007 Consumer 41 Wholesale 23 Wealth Management 12 Payments 24 2Q07 YTD Pre-provision Income $3.7 billion 2Q10 YTD Pre-provision Income $4.4 billion 2Q10 2007 Employees 61101 54243 Number of Employ
Slide 29: Advantaged Position: Capital position and generation
Advantaged Position Solid capital position and leading capital generation 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 TARP 0 0 0 0 24.4 25.3 0 0 0 0 0 Tier 1 Capital Ratio 0.083 0.086 0.085 0.085 0.106 0.109 0.094 0.095 0.096 0.099 0.101 Tier 1 Common Ratio 0.056 0.057 0.056 0.057 0.051 0
Slide 30: Advantaged Position: Minimal dilution during crisis
Advantaged Position Minimal dilution during financial crisis Peer 1 USB Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Dilution 0.04 0.09 0.15 0.16 0.21 0.55 0.38 0.4 0.73 0.71 TARP 0 0 0 0 0 0 0.19 0.21 0.18 0.22 Share Dilution (Due to SCAP Results and TARP Redemption) Assumes 50% common s
Slide 31: Advantaged Position: Strong liquidity position
Advantaged Position Strong liquidity position Parent company cash position 12 months forward under severe stress scenario has grown 4x since 2007 On and off-balance sheet stored asset liquidity is strong and continues to increase, including borrowing capacity at the FRB discount window, borrowing ca
Slide 32: Advantaged Position: Balance sheet management
Advantaged Position Balance sheet management 2009 Deposits 183123 Short-term 33797 Long-term 29137 Other 8246 Equity 28940 2007 Deposits 131445 Short-term borrowings 32370 Long-term borrowings 43440 Other liabilities 9314 Equiy 21046 2007 Ending Liabilities & Equity $238 billion 2Q10 Ending Liabilit
Slide 33: Advantaged Position: Interest rate risk management
Advantaged Position 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Up 50 bp Immediate -0.0143 -0.0202 -0.0182 -0.0106 -0.0101 -0.0094 -0.0053 -0.0048 0.0037 0.0063 0.0036 0.0042 0.0043 0.0068 0.01 Down 50 bp Immediate 0.0042 0.0027 0.015 0.0064 0.0054 0.0092 0.0061 0.005
Slide 34: Advantaged Position: Debt ratings
Advantaged Position External validation - debt ratings Holding company as of 9/10/10
Slide 35: Investing for Growth: Investing in the franchise
Investing for Growth Investing in the franchise Acquisitions since 2007 Consumer Wholesale PCTAM Payments Revenue 43 20 9 28 Payments Merchant processing portfolio of Santander-Mexico Merchant processing portfolio of Citizens National Bank Credit card portfolios from Citi Merchant processing portfol
Slide 36: Investing for Growth: Capital expenditures
Investing for Growth 2005 2006 2007 2008 2009 2010 Fcst CapX 301 540 484 519 772 875 $ in millions, approved by Capital Expenditure Committee Investing in the franchise Capital expenditures Technology Investments Tier 4 Data Center Branch Hardware & Software Internet Channel Home Mortgage Originatio
Slide 37: Investing for Growth: Acquisition decision-making approach
Investing for Growth Disciplined decision-making approach to acquisitions and organic growth initiatives Centrally managed review process, which includes data gathering, business line "expert" review and valuation analysis Acquisitions and investments sponsored by business line Vice Chairman Investm
Slide 38: Regulatory Environment
Regulatory Environment Existing Regulatory / Legislative oversight actions Card Act (2010 ^ $170 - $190 million pre-tax, ^ $250 million annual run rate before mitigating actions) Overdraft Legislation (2010 ^ $230 - $280 million pre-tax, ^ $500 million annual run rate before mitigating actions) Dodd
Slide 39: Regulatory Environment: Basel III
Regulatory Environment Basel III Capital Impact of limits for mortgage servicing rights, deferred tax assets and investments in financial institutions = $0 Impact of pension liability, purchased credit card relationship intangibles and all other = 39 bp Impact of non-core capital elements net of rep
Slide 40: Long-term Growth Expectations: Growth Drivers
Long-term Growth Expectations Long-term Growth Drivers Return on recent and on-going investments in technology, corporate banking, wealth management, corporate trust, payments and M&A Positive leverage to economic recovery, particularly payments and trust Market share gains, including growth in loan
Slide 41: Long-term Growth Expectations: Normalized EPS
Long-term Growth Expectations Core 2009 adjustments: $451 million securities losses, $123 million FDIC special assessment and $154 million deemed dividend Provision expected to normalize at 100 bp of total average loans Taxes expected to normalize at 31.5% based on higher pretax earnings Known regul
Slide 42: Long-term Growth Expectations: Capital Management
Long-term Growth Expectations USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROA 0.22 0.18 0.15 0.14 0.1 0.04 0 0 0 0 Capital Management Strong capital generation and less shareholder dilution over the current cycle Historically enjoyed high payout ratio Goal to resume normal cap
Slide 43: Long-term Growth Expectations: Capital Management
Long-term Growth Expectations Capital Management Capital ratios continue to grow under a scenario that includes normalized earnings and normal capital management Tier 1 common accretion attributable to retained earnings 2009 Actual 2009 Normalized $0.97 $2.12 Dividend Tier 1 Common Accretion = 61 bp
Slide 44: Long-term Growth Expectations
Long-term Growth Expectations Net Interest Income 5-7% Noninterest Income 8-10% Total Revenue 7-8% Noninterest Expense 4-5% Provision for Credit Losses 6-8% Net Income 8-9% EPS 8-10% Long-term Growth Expectations 2007 Long-term Growth Expectations Net Interest Income 5-7% Noninterest Income 9-11% To
Slide 45: Financial Management: Positioned to Win
Bancorp Investor Conference - Financial Management Positioned to Win Strong Defense Investing for Growth Positioned to Win Relevant Sale Customer Experience Leveraging Teennooay Employee Engagement Entortise Revenue Ot Enterprise Revenue Office a Corporate Barking atonal Corporate Banking atonal Mrg
Slide 46: Financial Management
Financial Management September 15, 2010 U.S. Bancorp Investor Conference Andy Cecere Vice Chairman & CFO
Slide 47: Appendix
Bancorp Investor Conference - Financial Management U Appendix USbancorp.
Slide 48: Non-Regulatory Capital Ratios
Non-Regulatory Capital Ratios $ in millions
Slide 49: Financial Management
Financial Management September 15, 2010 U.S. Bancorp Investor Conference Andy Cecere Vice Chairman & CFO
Slide 50: Risk Management: Credit Administration
Risk Management Credit Administration September 15, 2010 U.S. Bancorp Investor Conference P.W. (Bill) Parker EVP and Chief Credit Officer
Slide 51: 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 52: Credit Administration Agenda
Advantaged Position Strong Credit Process Credit Outlook Positioned to Win Credit Administration
Slide 53: Advantaged Position: Prudent credit underwriting
Advantaged Position Prudent approach to credit underwriting has positioned us to win Consistency in our underwriting standards and credit process Primarily prime-based residential mortgage and home equity portfolios Limited concentration of higher risk portfolios (subprime/Alt-A) No negative amortiz
Slide 54: Advantaged Position: Credit performance better than peers
Advantaged Position 2007 2008 2009 1Q10 2Q10 USB 0.0054 0.011 0.0208 0.0239 0.0234 Peer Mean 0.0058 0.0159 0.0263 0.0304 0.0276 Peer Banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI, USB and WFC USB NPA ratio excludes Covered Assets (loans subject to loss sharing agreements with FDIC) Credit performanc
Slide 55: Advantaged Position: Allowance for Credit Losses
Advantaged Position Allowance for Credit Losses $ in millions 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Allowance 2260 2243 2448 2648 3004 3575 4105 4571 4986 5264 5511 Provision Exceeding NCO's 0 192 200 250 635 530 466 415 278 175 25 Provision/NCO's 1 1.66 1.51 1.5 2 1.67 1.5 1.4 1.25
Slide 56: Strong Credit Process
Strong Credit Process Credit culture established at the top Focus on credit quality at all levels in the organization Weekly meetings since 2001 with Chief Executive Officer, Chief Financial Officer, Chief Credit Officer and all Vice Chairs to review credit performance and approve: Loan policies and
Slide 57: Strong Credit Process: Lending
Strong Credit Process Wholesale Lending Individual lender and business line accountability: lenders are assigned lending authority based on their level of experience Credit officers reporting to Credit Administration have higher levels of lending authority and support the Business Lines in their cre
Slide 58: Strong Credit Process: Reserve Methodology
Strong Credit Process Reserve Methodology Wholesale Portfolio - a function of current risk ratings and net inherent loss rates Retail / Small Business - a function of a forward looking estimate of losses Impaired loans - specific reserves for non-accrual and restructured loans Reserve methodology al
Slide 59: Credit Outlook: Improving Asset Quality
Credit Outlook Improving Overall Asset Quality Reached inflection point on credit losses and NPAs driven by declines in delinquencies and criticized assets 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 30 to 89 % 0.010601156 0.0103876 0.011833483 0.016222915 0.017008547 0.014526577 0.014428656 0
Slide 60: Credit Outlook: Outlook by Portfolio
Credit Outlook Outlook by Portfolio Improving Steadily Commercial Credit Cards Auto Portfolios Home Equity Recovering Slowly Commercial Real Estate Residential Real Estate 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Case-Shiller Index 206 205.92 203.73 2
Slide 61: 1970 1971 1972 1973 1974 1975 1976 1977 1978 East 71176 71302 71453 71348
1970 1971 1972 1973 1974 1975 1976 1977 1978 East 71176 71302 71453 71348 71122 71028 71055 70932 70949 70519 70409 70790 70866 70805 70859 71037 71247 71253 71316 71368 71620 71642 71844 72108 72445 72652 72945 73163 73467 73760 73709 74137 74268 74672 74965 75270 75620 76017 76286 76456 76646 7688
Slide 62: Credit Outlook: Net Charge-offs
Credit Outlook Net Charge-offs Returning to normalization after recession; timing uncertain due to current economic conditions Normalization Estimate 1.00%
Slide 63: Originations
Originations Originations of new accounts continue to maintain high level of credit quality Commercial Commercial Real Estate Residential Mortgages Home Equity Credit Cards Auto Loans/Leases Other Retail Strong lending activity of $46.3 billion during the second quarter $11.4 billion of new commerci
Slide 64: Investor Conference: Positioned to Win
Bancorp Investor Conference Positioned to Win Relevant Sale Customer Experience Leveraging Teennooay Enterprise Revenue Office atonal Corporate Banking atonal Mrigage Banking ‘epost Pring Paty Brand Development Selective MBA Ve rave Credt Cutie ‘Conservative Crest Culture Conservative Cred Culture E
Slide 65: Risk Management: Corporate Risk Management
Risk Management Corporate Risk Management September 15, 2010 U.S. Bancorp Investor Conference Rich Hidy EVP and Chief Risk Officer
Slide 66: Corporate Risk Management Agenda
Corporate Risk Management Risk Management Governance Key Attributes Current Environment Positioned to Win
Slide 67: Risk Management Governance
Risk Management Governance Risk is our business Credit risk Market risk Operational risk Reputation risk Board of Directors BOD Risk Management Committee BOD Audit Committee Executive Risk Committee Chief Risk Officer Chief Financial Officer Chief Credit Officer Chief Legal Officer Chief Executive O
Slide 68: Key Attributes
Key Attributes ....and must be effectively managed Governance and internal controls Audit Credit risk assessment Independent Enterprise Risk Management Framework and assessment Identification and trends Solid core processes Attention to key potential risks Business and legislative changes Fraud Priv
Slide 69: Current Environment
Current Environment Significantly expanded laws, rules and regulations Dodd-Frank Wall Street Reform Consumer Protection Act Basel II, Basel III Creation of Regulatory Reform Program Office Heightened regulatory scrutiny
Slide 70: Investor Conference: Positioned to Win
Bancorp Investor Conference Positioned to Win Strong Defense Investing for Growth Positioned to Win Relevant Sale Customer Experience Leveraging Teemnooay Enterprise Revenue Office atonal Corporate Banking atonal Mortgage Banking ‘epost Pring Pay Brand Development Selective MBA Ve ret Cutie CConserv
Slide 71: Risk Management: Corporate Risk Management
Risk Management Corporate Risk Management September 15, 2010 U.S. Bancorp Investor Conference Rich Hidy EVP and Chief Risk Officer
Slide 72: Appendix
Bancorp Investor Conferens k Management U Appendix USbancorp.
Slide 73: Credit Quality - Commercial Loans
Credit Quality - Commercial Loans 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 47362 44655 43490 40837 40095 Net Charge-offs Ratio 0.015 0.0178 0.0228 0.0241 0.0223 Average Loans and Net Charge-offs Ratios Key Statistics Comments Commercial utilization declined slightly resulting in a $500 million decreas
Slide 74: Credit Quality - Commercial Leases
Credit Quality - Commercial Leases 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 6697 6567 6489 6445 6245 Net Charge-offs Ratio 0.0329 0.0266 0.0202 0.0214 0.0141 Average Loans and Net Charge-offs Ratios Key Statistics Comments Overall delinquencies continued to improve along with a significant reduction i
Slide 75: Credit Quality - Commercial Real Estate
Multi-Family Retail Res Construction Condo Construction A&D Commercial Office Other Mix 2147 1249 1372 456 1052 943 1339 Investor Owner Mix 14539 11067 Credit Quality - Commercial Real Estate 2Q09 3Q09 4Q09 1Q10 2Q10 Avg Loans 33727 33829 34044 34151 34164 NCO Ratio 0.0144 0.0222 0.0203 0.0228 0.026
Slide 76: Credit Quality - Residential Mortgage
2Q09 3Q09 4Q09 1Q10 2Q10 Restructured 1289 1338 1354 1560 1672 Credit Quality - Residential Mortgage 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 23964 24405 25621 26408 26821 Net Charge-offs Ratio 0.0194 0.021 0.0237 0.0223 0.0206 Average Loans and Net Charge-offs Ratios Key Statistics Comments Successfu
Slide 77: Credit Quality - Home Equity
Credit Quality - Home Equity 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 19314 19368 19444 19402 19332 Net Charge-offs Ratio 0.0172 0.0182 0.0196 0.0188 0.0164 Average Loans and Net Charge-offs Ratios Key Statistics Comments Strong credit quality portfolio (weighted average FICO 746, CLTV 73%) originated
Slide 78: Credit Quality - Credit Card
2Q09 1Q10 2Q10 Average Loans 14,329 16,368 16,329 30-89 Delinquencies 2.38% 2.35% 1.86% 90+ Delinquencies 2.37% 2.57% 2.38% Nonperforming Loans 0.72% 1.02% 1.04% Credit Quality - Credit Card 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 14329 15387 16399 16368 16329 Net Charge-offs Ratio 0.0736 0.0699 0.06
Slide 79: Credit Quality - Retail Leasing
Credit Quality - Retail Leasing 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 5031 4822 4620 4509 4364 Net Charge-offs Ratio 0.008 0.0066 0.0043 0.0045 0.0037 Average Loans and Net Charge-offs Ratios Key Statistics Comments Retail leasing net charge-offs and delinquency rates continue to improve Strong use
Slide 80: Credit Quality - Other Retail
Credit Quality - Other Retail 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 22753 22647 23037 23343 23357 Net Charge-offs Ratio 0.018 0.0194 0.0191 0.0193 0.017 Average Loans and Net Charge-offs Ratios Key Statistics Comments Net charge-offs and delinquencies declined on a linked quarter basis Auto loan po
Slide 81: Risk Management
Risk Management September 15, 2010 U.S. Bancorp Investor Conference
Slide 82: Enterprise Revenue Office
Enterprise Revenue Office Mac McCullough EVP and Chief Strategy Officer U.S. Bancorp Investor Conference September 15, 2010
Slide 83: 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 84: Enterprise Revenue Office Agenda
ERO Launch Building Deeper Relationships Enterprise Customer Segmentation Distribution Channel Strategy Investing for Growth Positioned to Win Enterprise Revenue Office
Slide 85: Enterprise Revenue Office introduced at 2007 Investor Day
The Enterprise Revenue Office (ERO) was introduced at the 2007 Investor Day Enterprise Revenue Office
Slide 86: Enterprise Revenue Office
Enterprise Revenue Office Created in late-2007 to drive distinctive organic revenue growth 2007 - 2010 Created focus on customers Built organizational bridges Developed Mobile Banking Channel Refocused Internet Channel to facilitate future growth Brought leadership and incremental resources to Enter
Slide 87: Building Deeper Relationships
Building Deeper Relationships Building Deeper Relationships (BDR) was the first Enterprise Revenue initiative for the ERO
Slide 88: Building Deeper Relationships: Customer Behavior
Building Deeper Relationships Percent change from base (11/06), excludes acquisitions BDR has Influenced Customer Behavior New Consumer Product Penetration (Products per Customer in First 90 Days) 11/06 5/07 11/07 5/08 11/08 5/09 11/09 5/10 Launch of Consumer Packages Base +0.7% - -2.1% 0.0% +2.9% +
Slide 89: Building Deeper Relationships: Relationship Review Impact
Building Deeper Relationships 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 813 805 737 392 353 280 203 144 118 86 82 61 2 1.5 West 30.6 38.6 34.6 13.9 North 45.9 46.9 45 43.9 Relationship Review Impact on Wholesale Product Penetration How many more times it is likely for customers that go through Relationsh
Slide 90: Building Deeper Relationships: 2011 Revenue Goal
Building Deeper Relationships On Track to Exceed 2011 Revenue Goal Total $900 $850 Original BDR Revenue Goal for 2011 Current 2011 Forecast Total Consumer Small Business Wholesale $450 $325 $200 $125 $100 $50 $750 $500 High Estimate Low Estimate MM$ Current forecast normalized for interest rates
Slide 91: Enterprise Revenue Office 2011
Enterprise Revenue Office 2011 ? Enterprise Customer Segmentation Distribution channel strategy Enabling innovation and collaboration Business and product incubation Internet and Mobile Banking Channels Created in late-2007 to drive distinctive organic revenue growth
Slide 92: Enterprise Customer Segmentation
Attitudinal Depth of Relationship Life Events Special Demographic Behavioral Enterprise Customer Segmentation Planning a wedding Change of employer Child entered college "Un-tethered lifestyle" "Simply getting by" "Financial master" Pays off credit card every month Accelerated growth in savings acco
Slide 93: Enterprise Customer Segmentation
Enterprise Customer Segmentation How can we improve customer experience? How can we build deeper relationships with customers? How can we improve customer retention? How can we improve customer profitability? How can we acquire new customers?
Slide 94: Enterprise Customer Segmentation: Key Levers
Enterprise Customer Segmentation High revenue impact Moderate revenue impact Low revenue impact Lead Generation / Cross-LOB Offers Differentiated Service Key Levers Relationship Pricing Improve Customer Profitability Improve Customer Retention Build Deeper Relationships Acquire New Customers Product
Slide 95: Distribution Channel Strategy
Distribution Channel Strategy Mobile Call Center Internet ATM Branch Offer Research Buy Service Customer Interactions Over a three month period, 52% of our DDA customers use 2 or more channels Channels
Slide 96: Distribution Channel Strategy: Emerging channels
Distribution Channel Strategy Emerging channels are layering on transactions, increasing the importance of channel integration 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014 2019 Forecast 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 0 1 2 3 4 5 6 7
Slide 97: Distribution Channel Strategy
Distribution Channel Strategy Customer chooses how to interact with the bank Customer is recognized in every channel based on relationship and preferences Customer interactions are simple and efficient Customer Value New opportunities for customer acquisition Multiple opportunities to deepen custome
Slide 98: Investing for Growth: Incremental Annual Revenue
Investing for Growth Annual Revenue Incremental to 2011 Goal Full run-rate achieved 2013 to 2014 Total Build Deeper Relationships Improve Customer Retention Improve Customer Profitability Acquire New Customers $500 $400 $100 $50 $350 $275 $300 $150 $1,250 $875 High Estimate Low Estimate MM$
Slide 99: Enterprise Revenue Office: Positioned to Win
Bancorp Investor Conference - Enterprise Revenue Office Positioned to Win Relevant Sale Customer Experience Leveraging Teennooay Enterprise Revenue Office atonal Corporate Banking atonal Mrigage Banking ‘epost Pring Paty Brand Development Selective MBA Ve rave Credt Cutie CConservave Crest Culture C
Slide 100: Enterprise Revenue Office
Mac McCullough EVP and Chief Strategy Officer U.S. Bancorp Investor Conference September 15, 2010 Enterprise Revenue Office
Slide 101: Wholesale Banking
Wholesale Banking September 15, 2010 U.S. Bancorp Investor Conference Joe Hoesley Joseph Otting Dick Payne Vice Chairman
Slide 102: 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 103: Wholesale Banking Agenda
Profile Growth Drivers Investing for Growth Long-term Growth Expectations Positioned to Win Wholesale Banking
Slide 104: Profile: Revenue Mix
Consumer Wholesale WM Payments Mix 0.36 0.25 0.05 0.34 Consumer Wholesale WM Payments Mix 0.43 0.2 0.09 0.28 Consumer Wholesale WM Payments Mix 0.54 0.31 0.02 0.13 Consumer Wholesale WM Payments Mix 0.52 0.3 0.18 0 20% 25% 31% 30% Profile 2Q10 YTD, excluding Treasury and Corporate Support Revenue Mi
Slide 105: Profile - Scale and Market Share
Profile - Scale and Market Share Source: SNL Scale #3 small business administration lender Leading provider of banking services to federal government Leading treasury management services provider Market Share 1Q07 2Q10 2.8% 2.9% C&I Loans 1Q07 2Q10 1.6% 2.3% CRE Loans 1Q07 2Q10 0.0% 5.1% Middle Mark
Slide 106: Profile - Financial Performance
2008 2009 2Q09 YTD 2Q10 YTD Preprovision Income 1858 1863 911 944 Revenue 2916 2987 1463 1549 YTD Growth Rates 2009 2Q10 Revenue 2.4% 5.9% Pre-provision Income 0.3% 3.6% Profile - Financial Performance Pre-provision Income Revenue Designations, assignments and allocations change from time to time as
Slide 107: Profile - Credit Metrics
Profile - Credit Metrics $ in millions, loan mix 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 62717 59917 58617 56943 55685 Net Charge-offs Ratio 0.0162 0.0207 0.0239 0.0263 0.0259 Average Loans and Net Charge-offs Ratios Key Statistics 2Q09 1Q10 2Q10 Average Loans 62,717 56,943 55,685 30-89 Delinque
Slide 108: Growth Drivers
Growth Drivers Loan Volume Deposit Volume Treasury management sales Commercial product sales including capital markets and letter of credit Revenue Drivers Building scale through expanded distribution Expanding relationship managers and offices out-of-footprint Adding relationship managers in-market
Slide 109: Investing for Growth: Wholesale Expansion
Investing for Growth Wholesale Expansion Continuing to expand beyond our 24-state retail branch footprint in new high-potential markets Corporate Banking recent expansion includes New York, Charlotte and Dallas (4Q10) Commercial Real Estate new offices in Charlotte and Pittsburgh Commercial Banking
Slide 110: Investing for Growth: Wholesale Expansion
Investing for Growth Drive organic growth and increase market share by Leveraging brand awareness campaign Taking advantage of our strong reputation Capitalizing on "flight to quality" and competitor weakness Goal to add 300 new relationships and over $80 million in revenue Wholesale Expansion New C
Slide 111: Investing for Growth: Relationship Review
Investing for Growth Relationship Review Relationship Review Highlights Launched October 2008 Over 12,000 customers will be reviewed in 2010 Nearly 19,000 new sales closed through August 2010 increasing share of wallet On-track to deliver > $300 million in incremental annual revenue in 2011 Relation
Slide 112: Investing for Growth: Capital Markets Expansion
Investing for Growth 2007 2008 2009 2Q10 YTD Annualized Fees 433 492 615 732 Expand low-risk capital markets activities in order to improve our ability to meet the needs of our clients and prospects, build deeper relationships, and increase scale Expanded loan capital markets and derivatives in 2008
Slide 113: Long-term Growth Expectations
Long-term Growth Expectations Revenue mix 2Q10 YTD, excluding Treasury and Corporate Support Revenue Expense Pre-provision Income Growth 0.09 0.05 0.1 Revenue Expense Pre-provision Income Growth 0.07 0.05 0.08 Long-term Growth Expectations 2007 Long-term Growth Expectations
Slide 114: Wholesale Banking: Positioned to Win
U.S. Bancorp Investor Conference - Wholesale Banking Positioned to Win Strong Defense Investing for Growth Positioned to Win Relevant Sale Customer Experience Leveraging Technology Enterprise Revenue Office atonal Corporate Banking atonal Mrgage Banking ‘epost Pring Paty Brand Development Selective
Slide 115: Wholesale Banking
Wholesale Banking September 15, 2010 U.S. Bancorp Investor Conference Joe Hoesley Joseph Otting Dick Payne Vice Chairman
Slide 116: Consumer & Small Business Banking
Consumer & Small Business Banking September 15, 2010 U.S. Bancorp Investor Conference Rick Hartnack Vice Chairman Consumer Banking
Slide 117: 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 118: Consumer & Small Business Banking Agenda
Profile Growth Drivers Investing for Growth Long-term Growth Expectations Positioned to Win Consumer & Small Business Banking
Slide 119: Profile: Revenue Mix
Profile Consumer Wholesale WM Payments Mix 0.36 0.25 0.05 0.34 Consumer Wholesale WM Payments Mix 0.43 0.2 0.09 0.28 Consumer Wholesale WM Payments Mix 0.54 0.31 0.02 0.13 Consumer Wholesale WM Payments Mix 0.52 0.3 0.18 0 43% 36% 54% 52% Metro Comm ISON HM CL Mix 0.27 0.28 0.06 0.25 0.14 Community
Slide 120: Profile - Scale and Market Share
Profile - Scale and Market Share Scale #4 Branch network #1 In-store branch network #1 On-site branch network Market Share 1Q07 2Q10 2.0% 2.5% Core Deposits 1Q07 2Q10 0.7% 2.8% Home Mortgage Origination 1Q07 2Q10 1.9% 2.5% Home Equity Loans / Lines 1Q07 2Q10 2.8% 3.0% Consumer (non- mortgage) Loans
Slide 121: Profile - Financial Performance
YTD Growth Rates 2009 2Q10 Revenue 16.4% (1.6%) Pre-provision Income 19.5% (13.5%) 2008 2009 2Q09 YTD 2Q10 YTD Preprovision Income 2718 3248 1595 1380 Revenue 5946 6921 3417 3362 Pre-provision Income Revenue Profile - Financial Performance $ in millions Designations, assignments and allocations chan
Slide 122: Profile - Credit Metrics
Profile - Credit Metrics $ in millions, loan mix 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 95596 94991 95881 96116 95914 Net Charge-offs Ratio 0.0146 0.0161 0.0166 0.0162 0.0155 Average Loans and Net Charge-offs Ratios Key Statistics 2Q09 1Q10 2Q10 Average Loans 95,596 96,116 95,914 30-89 Delinque
Slide 123: Growth Drivers
Growth Drivers Loan volume Deposit volume Net new checking accounts Fees on deposit products Mortgage originations Treasury management Assets under management Revenue Drivers Building scale through expanded distribution In-market expansion: traditional, in-store & on-site Selective acquisitions Non-
Slide 124: Investing for Growth: Expanding Distribution
Investing for Growth Expanding Distribution Objective Build and/or maintain scale by increasing our market share of distribution points in attractive markets, with the goal of achieving and/or maintaining a top-3 market share position over time Progress FDIC deals moved us to 4th place in branch mar
Slide 125: Investing for Growth: Branch Market Share
Investing for Growth Source: SNL as of 8/24/10, branch counts for 2008/09 as of June 30th Acquisitions: Downey/PFF 11/21/08 and FBOP 11/2/09
Slide 126: Investing for Growth
Investing for Growth Source: SNL as of 8/24/10
Slide 127: Investing for Growth: Expanding Distribution - In-Store/On-Site
Investing for Growth Objective Build strong alternative to traditional branches that provides direct, face-to- face contact with prospects and convenient service for customers Provide a convenient branch network at a fraction of the capital investment required for traditional branches Progress Expan
Slide 128: Investing for Growth: Mortgage Banking
Objective Continue to build a strong mortgage originations/servicing business through: Progress Investing for Growth Mortgage Banking Source: American Banker Industry leading client experience scores Best in class operating ratios Growth consistent with our risk management values Penetration of core
Slide 129: Investing for Growth: Mortgage Banking
Investing for Growth Mortgage Banking Annual Originations Servicing Portfolio 2006 2007 2008 2009 2Q10 YTD 99.799 117.505 139.258 187.048 199.59 2006 2007 2008 2009 2Q10 YTD 22.293 27.231 34.122 55.572 19.565 Regional Offices Loan Officers 2006 2007 2008 2009 2Q10 YTD 578 644 651 708 869 2006 2007 2
Slide 130: Investing for Growth: Affluent Customers
Investing for Growth Objective Identify and deliver a differentiated client experience and a consistent approach for our best consumer clients via partnership between the Private Client Group (PCG), financial advisors, metro branches, mortgage and other key partners Progress Identified 170 key metro
Slide 131: Investing for Growth: Affluent Growth Strategy
Investing for Growth Affluent Growth Strategy A new platform to serve our best clients People Partnership Platform Strategic Partners Home Mortgage Small Business Wholesale Banking The Private Client Reserve Consumer Banking USBI 1st Qtr 2nd Qtr 3rd Qtr 0.33 0.33 0.33 Client People Expertise ? Teams
Slide 132: Investing for Growth: Small Business
Investing for Growth Objective Provide clients with a best in class service experience built on the foundation of a strong product line and full support across all channels Leverage branch managers into an efficient, effective sales and relationship management force of banking professionals, all sup
Slide 133: Long-term Growth Expectations
Long-term Growth Expectations Revenue mix 2Q10 YTD, excluding Treasury and Corporate Support Revenue Expense Pre-provision Income Growth 0.07 0.04 0.1 Revenue Expense Pre-provision Income Growth 0.06 0.03 0.08 Long-term Growth Expectations 2007 Long-term Growth Expectations
Slide 134: Positioned to Win
Positioned to Win Relevant Sale Customer Experience Leveraging Teemnooay Enterprise Revenue Office atonal Corporate Banking atonal Mrgage Banking ‘epost Pring Panty Brand Development Selective MBA Ve rave Credt Cutie CConservave Crest Culture Conservative Credt Culture lent Operating Mode Eticent Op
Slide 135: Consumer & Small Business Banking
Consumer & Small Business Banking September 15, 2010 U.S. Bancorp Investor Conference Rick Hartnack Vice Chairman Consumer Banking
Slide 136: Wealth Management & Securities Services
Wealth Management & Securities Services September 15, 2010 U.S. Bancorp Investor Conference Terry Dolan Vice Chairman Wealth Management & Securities Services
Slide 137: 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 138: Wealth Management & Securities Services Agenda
Profile Growth Drivers Investing for Growth Long-term Growth Expectations Positioned to Win Wealth Management & Securities Services
Slide 139: Profile: Revenue Mix
Consumer Wholesale WM Payments Mix 0.36 0.25 0.05 0.34 Consumer Wholesale WM Payments Mix 0.43 0.2 0.09 0.28 Consumer Wholesale WM Payments Mix 0.52 0.3 0.18 0 Consumer Wholesale WM Payments Mix 0.34 0.14 0.14 0.38 9% 5% 18% 14% WM CT FS ITC FAF Mix 0.39 0.31 0.13 0.1 0.07 Wealth Management 39% Corp
Slide 140: Profile - Scale and Market Share
+2% Profile - Scale and Market Share Sources: Securities Data Corp (corporate trust), Investment Company Institute (fund services), Call Reports (institutional trust) and Barron's (wealth manager) Scale #2 Municipal trustee #2 Corporate trustee #3 Structured trustee Market Share #3 Third-party provi
Slide 141: Profile - Financial Performance
YTD Growth Rates 2009 2Q10 Revenue (14.5%) (9.5%) Pre-provision Income (27.4%) (37.9%) Profile - Financial Performance 2008 2009 2Q09 YTD 2Q10 YTD Preprovision Income 767 557 298 185 Revenue 1766 1510 780 706 Pre-provision Income Revenue $ in millions Designations, assignments and allocations change
Slide 142: Profile - Credit Metrics
Profile - Credit Metrics $ in millions, loan mix 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 3715 3577 3664 3591 3704 Net Charge-offs Ratio 0.0022 0.0044 0.0022 0.0023 0.0011 Average Loans and Net Charge-offs Ratios Key Statistics 2Q09 1Q10 2Q10 Average Loans 3,715 3,591 3,704 30-89 Delinquencies 1.
Slide 143: Growth Drivers: Corporate Trust
2007 2008 2009 YTD 2010 US Bank 164 22 34 16 Total Industry Trusteed Proceeds 854 223 175 71 Growth Drivers 2007 2008 2009 YTD 2010 US Bank 1335 1011 864 455 Total Industry Trusteed Issues 3565 2849 2240 1129 2007 2008 2009 YTD 2010 US Bank 40 60 82 45 Total Industry Trusteed Proceeds 611 430 521 25
Slide 144: Growth Drivers
Growth Drivers Assets under management Assets under administration Mutual fund clients Loan volume Deposit volume Revenue Drivers Customer segmentation and alignment of service model Building deeper relationships Global Securities Services AllianceTM Federal Government initiative Strategic acquisiti
Slide 145: Investing for Growth: Securities Services Initiatives
Investing for Growth Securities Services Initiatives Alternative Investment Expansion Exchange Traded Funds Capabilities Building Deeper Relationships / Corporate Banking Strategy Federal Government Initiatives Global Expansion/Alliances Opportunistic Acquisitions Source: ETF projections - Cerulli A
Slide 146: Investing for Growth: Wealth Management
Investing for Growth Wealth Management Progress Organizational structure and market alignment Customer segmentation Talent assessment and management Building brand awareness Enhancing technology capabilities Investment and product expansion Objective Improve customer experience through refined segme
Slide 147: Customer Experience Strategy
Customer Experience Strategy % Completed Execution % Completed new veterans 3rd Qtr 4th Qtr East 1 0 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 new veterans 3rd Qtr 4th Qtr East 0.75 0.25 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 new veterans 3rd Qtr 4th Qtr East 1 0 90
Slide 148: Affluent Growth
Affluent Growth High Net-Worth Focus: Attributes: "Bring the whole bank to the client" Partnering teams Tailored solutions Trusted advisors Capturing Opportunity: Leverage our retail distribution Market segmentation rollout Provide comprehensive capabilities with highly individualized solutions Weal
Slide 149: Leveraging Technology: Technology Initiatives
Process Improvements & Control Systems Expanded Services Relationship Management Client Experience Leveraging Technology Technology Initiatives Enhancing WMSS systems to support client growth/experience Developing exchange traded fund servicing capabilities Expanding alternative investment fund syst
Slide 150: Long-term Growth Expectations
Long-term Growth Expectations Revenue mix 2Q10 YTD, excluding Treasury and Corporate Support Revenue Expense Pre-provision Income Growth 0.08 0.05 0.11 Revenue Expense Pre-provision Income Growth 0.09 0.05 0.12 Long-term Growth Expectations 2007 Long-term Growth Expectations
Slide 151: Positioned to Win
Positioned to Win Relevant Sale Customer Experience Leveraging Teennooay Enterprise Revenue Office atonal Corporate Banking atonal Mrigage Banking ‘epost Pring Paty Brand Development Selective MBA Ve rave Credt Cutie CConservave Crest Culture Conservative Cred Culture lent Operating Mode Eticent Ope
Slide 152: Wealth Management & Securities Services
Wealth Management & Securities Services September 15, 2010 U.S. Bancorp Investor Conference Terry Dolan Vice Chairman Wealth Management & Securities Services
Slide 153: Payment Services
Payment Services September 15, 2010 U.S. Bancorp Investor Conference Pamela Joseph Vice Chairman Payment Services
Slide 154: 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 155: Payment Services Agenda
Profile Growth Drivers Investing for Growth Long-term Growth Expectations Positioned to Win Payment Services
Slide 156: Profile: Revenue Mix
Profile 2Q10 YTD, excluding Treasury and Corporate Support Revenue Mix RPS CPS Elavon Mix 0.61 0.1 0.29 Retail Payment 61% Corporate Payment 10% Merchant Acquiring 29% Contribution to U.S. Bancorp Consumer Wholesale WM Payments Mix 0.36 0.25 0.05 0.34 Consumer Wholesale WM Payments Mix 0.43 0.2 0.09
Slide 157: Profile - Scale and Market Share
Profile - Scale and Market Share Scale Top 5: Fleet card issuer and largest freight payment network U.S. merchant acquirer Corporate card issuer Debit Card Issuer Top 10: Global merchant acquirer General purpose retail credit card issuer Market Share 2009 2007 2009 2007 3.0% 3.6% 10.0% 11.6% Retail
Slide 158: Profile - Financial Performance
Profile - Financial Performance 2008 2009 2Q09 YTD 2Q10 YTD Preprovision Income 2383 2455 1187 1310 Revenue 3941 4161 1960 2206 Pre-provision Income Revenue YTD Growth Rates 2009 2Q10 Revenue 5.6% 12.6% Pre-provision Income 3.0% 10.4% $ in millions Designations, assignments and allocations change fr
Slide 159: Profile - Credit Metrics
Profile - Credit Metrics $ in millions, loan mix 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Average Loans 19914 21317 22538 22295 22500 Net Charge-offs Ratio 0.0655 0.0631 0.0616 0.0682 0.0672 Average Loans and Net Charge-offs Ratios Key Statistics 2Q09 1Q10 2Q10 Average Loans 19,914 22,295 22,500 30-89 Delinque
Slide 160: Growth Drivers: Leveraged to Economic Recovery
Growth Drivers 2008 2009 2010 Long-term Expectation Consumer and Small Business Spend 0.049 -0.02 0.051 0.08 2008 2009 2010 Long-term Expectation Elavon Same Store Sales -0.02 -0.081 0.043 0.03 Leveraged to Economic Recovery 2008 2009 2010 Long-term Expectation Corporate Card Spend -0.029 -0.19 0.1
Slide 161: Growth Drivers
Growth Drivers Retail loan growth Credit, debit and pre- paid card transaction volume Corporate card transaction volume Merchant transaction volume Merchant and corporate card services Revenue Drivers International expansion Agent bank issuing & acquiring FlexPerks rewards program Payments innovatio
Slide 162: Investing for Growth: International Expansion
Investing for Growth International Expansion Objective Build global scale by leveraging technology and proven business model through expansion into high-potential international markets Progress Executed joint venture with Santander for Mexican acquiring marketplace Elavon currently negotiating merch
Slide 163: Payment Services: Investing for Growth
U.S. Bancorp Investor Conference - Payment Services Investing for Growth ao Ld Puerto Rico (Sbancorp.
Slide 164: Payment Services: Investing for Growth
U.S. Bancorp Investor Conference - Payment Services Investing for Growth Puerto Rico USbancorp.
Slide 165: Investing for Growth: Agent Bank Issuing
Investing for Growth Objective Build national scale by white-labeling credit and debit card issuing and processing capabilities to banks and credit unions Agent Bank Issuing Progress Elan Financial Services is a leading agent credit card issuer in the market 39% portfolio (average net receivable) gr
Slide 166: Elan Portfolio Acquisition and Business Model
Proven history in successfully acquiring and growing financial institution portfolios: Over 300 portfolio acquisitions in last 5 years with average growth rate of 11% post conversion For acquired active accounts, average sales grow 45% while balances grow 30% The Elan business model provides FI's se
Slide 167: Investing for Growth: FlexPerks Rewards Program
Investing for Growth Objective Build industry-leading suite of rewards cards with superior customer value, leveraging success of FlexPerks Travel Rewards transition FlexPerks Rewards Program Progress Introduced premier FlexPerks rewards program and full suite of FlexPerks card products Gives custome
Slide 168: FlexPerks Extraordinary Success
Extraordinary Success $3 billion portfolio Unprecedented retention of legacy portfolio Early success in organic growth of new product through both USB enterprise and direct marketing Strategic plan in place for expanded growth both in and out of U.S. Bank footprint FlexPerks Rewards Program Accounts
Slide 169: Investing for Growth: Payments Innovation
Investing for Growth Objective Elevate U.S. Bank's reputation as a leading player in payments innovation and emerging technologies Progress Issue Dual Payment/Access Contactless Visa card Pilot Visa Money Transfer person-to-person mobile payment Contactless stickers & microtags Instant issued Visa C
Slide 170: Long-term Growth Expectations
Long-term Growth Expectations Revenue mix 2Q10 YTD, excluding Treasury and Corporate Support Revenue Expense Pre-provision Income Growth 0.1 0.05 0.12 Revenue Expense Pre-provision Income Growth 0.12 0.06 0.16 Long-term Growth Expectations 2007 Long-term Growth Expectations
Slide 171: Payment Services: Positioned to Win
Bancorp Investor Conference - Payment Services Positioned to Win Strong Defense Investing for Growth Positioned to Win Relevant Sale Customer Experience Leveraging Teennooay Entortise Revenue Ot Enterprise Revenue Office atonal Corporate Banking atonal Mortgage Banking epost Pring Paty Brand Develop
Slide 172: Payment Services
Payment Services September 15, 2010 U.S. Bancorp Investor Conference Pamela Joseph Vice Chairman Payment Services
Slide 173: Closing Remarks
U.S. Bancorp Closing Remarks September 15, 2010 U.S. Bancorp Investor Conference Richard K. Davis Chairman, President and CEO
Slide 174: Closing Remarks: Positioned to Win
U.S. Bancorp Investor Conference - Closing Remarks Positioned to Win Strong Defense Investing for Growth Positioned to Win Relevant Sale Customer Experience Leveraging Technology Enterprise Revenue Office atonal Corporate Banking atonal Mrgage Banking epost Pring Paty Brand Development Selective MBA
Slide 175: USB is well-positioned to produce industry-leading performance
USB is well-positioned to produce industry-leading performance with... a strong foundation, including excellent credit and risk management, a diversified business mix and prudent capital management a proven track record initiatives to build relevant, profitable scale in each of our business lines in