29 slides from U.s. Bancorp's earnings presentation, Jul 18, 2012
Slide 1: U.S. Bancorp 2Q12 Earnings Conference Call
Exhibit 99.2 U.S. Bancorp 2Q12 Earnings Conference Call Richard K. Davis Chairman, President and CEO Andy Cecere July 18, 2012 Vice Chairman and CFO
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: 2Q12 Highlights
2Q12 Earnings 2Q12 Highlights Conference Call Record net income of $1.4 billion; $0.71 per diluted common share Total net revenue of $5.1 billion, up 8.1% vs. 2Q11 • Net interest income growth of 6.6% vs. 2Q11 • Noninterest income growth of 9.7% vs. 2Q11 Positive operating leverage on both a year-ov
Slide 4: Performance Ratios
2Q12 Earnings Performance Ratios Conference Call Efficiency Ratio and ROCE and ROA Net Interest Margin Return on Avg Common Equity Return on Avg Assets Efficiency Ratio Net Interest Margin Efficiency ratio computed as noninterest expense divided by the sum of net interest income on a taxable-equival
Slide 5: Revenue Growth
2Q12 Earnings Revenue Growth Conference Call $ in millions Year-Over-Year Growth 3.8% 4.5% 8.1% 9.1% 8.1% $5,104 $5,068 $4,929 $4,795 $4,690 * Gain on merchant processing agreement settlement 5 Taxable-equivalent basis
Slide 6: Loan and Deposit Growth
2Q12 Earnings Loan and Deposit Growth Conference Call $ in billions Average Balances Year-Over-Year Growth 10.5% 11.7% 17.3% $231.3 $228.3 17.9% $223.3 7.7% 14.2% 6.4% $215.4 $214.1 5.9% $209.4 5.0% $210.2 4.0% $207.0 $202.2 $198.8 6
Slide 7: Credit Quality
2Q12 Earnings Credit Quality Conference Call $ in millions Change in Net Charge-offs Change in Nonperforming Assets* -2% -11% -6% -14% -7% -10% -7% -8% -9% -7% -5% -6% -5% -6% -7% -15% -6% -7% 30% 35% 26% 27% 25% 18% 12% 7% 2% 22% 34% 31% 33% 37% 23% 12% 5% 2% NCO $ Change (Left Scale) NPA $ Change
Slide 8: Credit Quality Outlook
2Q12 Earnings Credit Quality Outlook Conference Call The Company expects the level of Net Charge-offs and Nonperforming Assets to trend modestly lower during 3Q12 Delinquencies* Changes in Criticized Assets* 30 to 89 days 90+ days * Excluding Covered Assets (assets subject to loss sharing agreements
Slide 9: Earnings Summary
2Q12 Earnings Earnings Summary Conference Call $ in millions, except per-share data % B/(W) YTD YTD 2Q12 1Q12 2Q11 vs 1Q12 vs 2Q11 2Q12 2Q11 % B/(W) Net Interest Income $ 2,713 $ 2,690 $ 2,544 0.9 6.6 $ 5,403 $ 5,051 7.0 Noninterest Income 2,355 2,239 2,146 5.2 9.7 4,594 4,158 10.5 Total Revenue 5,0
Slide 10: 2Q12 Results - Key Drivers
2Q12 Earnings 2Q12 Results - Key Drivers Conference Call vs. 2Q11 Net Revenue growth of 8.1% • Net interest income growth of 6.6%; net interest margin of 3.58% vs. 3.67% • Noninterest income growth of 9.7% Noninterest expense growth of 7.3% Provision for credit losses lower by $102 million • Net cha
Slide 11: Capital Position
2Q12 Earnings Capital Position Conference Call $ in billions 2Q12 1Q12 4Q11 3Q11 2Q11 Shareholders' equity $ 37.8 $ 35.9 $ 34.0 $ 33.2 $ 32.5 Tier 1 capital 30.0 30.0 29.2 28.1 27.8 Total risk-based capital 36.4 36.4 36.1 35.4 35.1 Tier 1 common equity ratio 8.8% 8.7% 8.6% 8.5% 8.4% Tier 1 capital r
Slide 12: Mortgage Repurchase
2Q12 Earnings Mortgage Repurchase Conference Call Mortgages Repurchased and Make-whole Payments Repurchase activity lower than Mortgage Representation and Warranties Reserve peers due to: $ in millions 2Q12 1Q12 4Q11 3Q11 2Q11 • Conservative credit and underwriting culture Beginning Reserve $202 $16
Slide 13: Momentum continues
Momentum y All of @$ serving you us bancorp
Slide 14: Appendix
2Q12 Earnings Conference Call Appendix 14
Slide 15: Average Loans
2Q12 Earnings Average Loans Conference Call $ in billions Average Loans Key Points Year-Over-Year Growth vs. 2Q11 4.0% 5.0% 5.9% 6.4% 7.7% Average total loans grew by $15.3 billion, or 7.7% Average total loans, excluding covered loans, $210.2 $214.1 were higher by 10.0% $202.2 $207.0 $198.8 Retail A
Slide 16: Average Deposits
2Q12 Earnings Average Deposits Conference Call $ in billions Average Deposits Key Points Year-Over-Year Growth vs. 2Q11 14.2% 17.9% 17.3% 11.7% 10.5% Average total deposits increased by $21.9 $228.3 $231.3 billion, or 10.5% $223.3 $215.4 $209.4 Average low cost deposits (NIB, interest Noninterest ch
Slide 17: Net Interest Income
2Q12 Earnings Net Interest Income Conference Call $ in millions Net Interest Income Key Points Year-Over-Year Growth vs. 2Q11 5.6% 5.9% 7.0% 7.3% 6.6% Average earning assets grew by $26.2 billion, or 9.4% 3,000 6.0% $2,690 $2,713 Net interest margin lower by 9 bp (3.58% vs. $2,673 $2,544 $2,624 3.67
Slide 18: Noninterest Income
2Q12 Earnings Noninterest Income Conference Call $ in millions Noninterest Income Key Points vs. 2Q11 Year-Over-Year Growth Noninterest income grew by $209 million, or 9.7%, 1.7% 2.9% 9.4% 11.3% 9.7% driven by: 2,800 • Mortgage banking revenue increase of $251 million $2,431 $2,355 • Merchant proces
Slide 19: Noninterest Expense
2Q12 Earnings Noninterest Expense Conference Call $ in millions Noninterest Expense Key Points vs. 2Q11 Year-Over-Year Growth Noninterest expense was higher by $176 million, 2.0% 3.8% 8.5% 10.6% 7.3% or 7.3%, driven by: 2,800 $2,696 $2,601 • Increased compensation (7.2%) and employee $2,560 $2,425 $
Slide 20: Credit Quality Commercial Loans
2Q12 Earnings Credit Quality Commercial Loans Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 2Q11 1Q12 2Q12 Average Loans $44,135 $51,309 $54,362 30-89 Delinquencies 0.46% 0.30% 0.26% 90+ Delinquencies 0.09% 0.08% 0.07% Nonperforming Loans 0.78% 0.53% 0.31% Rev
Slide 21: Credit Quality Commercial Leases
2Q12 Earnings Credit Quality Commercial Leases Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 2Q11 1Q12 2Q12 Average Loans $5,919 $5,822 $5,658 30-89 Delinquencies 1.00% 0.89% 0.83% 90+ Delinquencies 0.02% 0.00% 0.00% Nonperforming Loans 0.73% 0.54% 0.40% Comme
Slide 22: Credit Quality Commercial Real Estate
2Q12 Earnings Credit Quality Commercial Real Estate Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 2Q11 1Q12 2Q12 Average Loans $35,499 $35,985 $36,549 30-89 Delinquencies 0.45% 0.45% 0.24% 90+ Delinquencies 0.01% 0.04% 0.03% Nonperforming Loans 3.84% 2.10% 1.8
Slide 23: Credit Quality - Residential Mortgage
2Q12 Earnings Credit Quality - Residential Mortgage Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 40,000 $37,831 $39,166 6.0% 2Q11 1Q12 2Q12 $36,256 $34,026 Average Loans $32,734 $37,831 $39,166 $32,734 30-89 Delinquencies 1.11% 0.95% 0.86% 30,000 4.5% 90+ Del
Slide 24: Credit Quality - Credit Card
2Q12 Earnings Credit Quality - Credit Card Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 2Q11 1Q12 2Q12 20,000 12.0% Average Loans $15,884 $16,778 $16,696 $16,778 $16,696 $15,884 $16,057 $16,271 30-89 Delinquencies 1.34% 1.26% 1.20% 15,000 9.0% 90+ Delinquenci
Slide 25: Credit Quality - Home Equity
2Q12 Earnings Credit Quality - Home Equity Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 2Q11 1Q12 2Q12 24,000 6.0% Average Loans $18,634 $17,933 $17,598 $18,634 $18,510 30-89 Delinquencies 0.78% 0.82% 0.71% $18,281 $17,933 $17,598 18,000 4.5% 90+ Delinquencie
Slide 26: Credit Quality - Retail Leasing
2Q12 Earnings Credit Quality - Retail Leasing Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 2Q11 1Q12 2Q12 6,000 3.0% Average Loans $4,808 $5,095 $5,151 $5,097 $5,150 $5,095 $5,151 $4,808 30-89 Delinquencies 0.20% 0.12% 0.13% 4,000 90+ Delinquencies 0.02% 0.02
Slide 27: Credit Quality - Other Retail
2Q12 Earnings Credit Quality - Other Retail Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 2Q11 1Q12 2Q12 28,000 6.0% $24,901 $24,902 $25,151 Average Loans $24,498 $24,902 $25,151 $24,498 $24,773 30-89 Delinquencies 0.62% 0.51% 0.51% 21,000 4.5% 90+ Delinquenci
Slide 28: Non-GAAP Financial Measures
2Q12 Earnings Non-GAAP Financial Measures Conference Call 28
Slide 29: U.S. Bancorp 2Q12 Earnings Conference Call
U.S. Bancorp 2Q12 Earnings Conference Call July 18, 2012