U.s. Bancorp · NYSE:USB
U.s. Bancorp — Citi 2011 Financial Services Conference
38 slides from U.s. Bancorp's conference presentation, Mar 9, 2011
Slide 1: Citi 2011 Financial Services Conference
Richard K. Davis Chairman, President and CEO March 9, 2011 Citi 2011 Financial Services Conference
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: Strong Foundation, Relevant Scale, Investing for Growth, Current Topics
U.S. Bancorp Strong Foundation Relevant Scale Investing for Growth Current Topics
Slide 4: U.S. Bancorp Businesses 4Q10 Dimensions
*As of March 4, 2011 U.S. Bancorp Businesses 4Q10 Dimensions Asset Size $308 billion Deposits $204 billion Loans $197 billion Customers 17 million NYSE Traded USB Market Capitalization* $52 billion Founded 1863 Bank Branches* 3,069 ATMs 5,310
Slide 5: Total Assets and Market Value
U.S. Rank Company $Billions 1 Bank of America $2,265 2 J.P. Morgan 2,118 3 Citigroup 1,915 4 Wells Fargo 1,258 5 U.S. Bancorp 308 6 PNC 264 7 SunTrust 173 8 BB&T 157 9 Regions 132 10 Fifth Third 111 U.S. Rank Company $Billions 1 J.P. Morgan $178 2 Wells Fargo 168 3 Bank of America 142 4 Citigroup 13
Slide 6: 2010 Results
2010 Results Full Year Full Year 2010 2009 % Change Net Income ($ in millions) $3,317 $2,205 + 50.4% Diluted EPS $1.73 $0.97 + 78.4% Return on Avg Assets 1.16% 0.82% Return on Avg Common Equity 12.7% 8.2% Record-setting net revenue of $18.1 billion Provision for credit losses declined 22% Average de
Slide 7: Performance Metrics
Performance Metrics Source: company reports Peer Banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI, USB and WFC 2006 2007 2008 2009 2010 1Q10 2Q10 3Q10 4Q10 USB 0.235 0.213 0.139 0.082 0.127 0.105 0.134 0.128 0.137 Peer Median 0.135 0.116 0.038 0.019 0.05 0.051 0.052 0.073 2006 2007 2008 2009 2010 2Q10
Slide 8: Performance Metrics vs. Peers
Performance Metrics Source: SNL, 1Q08 through 4Q10 Peer Banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI, USB and WFC Since 1/1/08 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROA 0.0106 0.0099 0.0088 0.0073 0.0059 0.0012 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8
Slide 9: Revenue Growth
Revenue Growth 4Q09 1Q10 2Q10 3Q10 4Q10 Reported 4376 4321 4519 4587 4721 2006 2007 2008 2009 2010 Reported 13742 14060 14677 16668 18148 $ in millions Taxable-equivalent basis Prior 5 Quarters Year-Over-Year Growth 20.8% 11.3% 8.7% 7.9% 7.9% Prior 5 Years Year-Over-Year Growth 3.8% 2.3% 4.4% 13.6%
Slide 10: Loan and Deposit Growth
Loan and Deposit Growth 4Q09 1Q10 2Q10 3Q10 4Q10 Loans 191.6 192.9 191.2 192.5 195.5 Deposits 180.9 182.5 183.3 182.7 190.3 2006 2007 2008 2009 2010 Loans 144 154 185 195 197 Deposits 125 131 159 183 204 $ in billions 2.0% $195.5 8.2% $191.6 3.9% $192.9 4.0% $191.2 5.8% $192.5 5.2% $190.3 25.2% $180
Slide 11: Loan Growth vs. Peers
Loan Growth vs. Peers Average loans; loan growth 4Q10 vs. 4Q09 adjusted for acquisitions Acquisition adjustments: USB - FBOP acquisition, BAC & JPM - credit card securitizations USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Loan Growth 0.015 0.014 0.006 0 -0.005 -0.007 -0.008 -0
Slide 12: Deposit Growth vs. Peers
Deposit Growth vs. Peers Average deposits; deposit growth 4Q10 vs. 4Q09 adjusted for acquisitions Acquisition adjustments: USB - FBOP acquisition USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Deposit Growth 0.042 0.035 0.027 0.026 0.021 0.02 0.006 0.002 0 -0.005 USB Peer 1 Peer
Slide 13: Capital Position
Capital Position $ in billions 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 TARP 0 0 0 0 24.4 25.3 0 0 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 0.103 0.105 Tier 1 Common Ratio 0.056 0.057 0.056 0.057 0.051 0.054 0.067 0.068
Slide 14: Credit Quality
Credit Quality 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 NPA $ Change 76 49 155 290 357 489 727 626 386 184 91 -261 -171 -212 NPA % Change 0.13 0.08 0.22 0.34 0.31 0.33 0.37 0.23 0.12 0.05 0.02 -0.07 -0.05 -0.06 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
Slide 15: Credit Quality - Reserves
Credit Quality - Reserves 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Allowance 2260 2435 2648 2898 3639 4105 4571 4986 5264 5439 5536 5540 5531 Provision/NCO's 1 1.66 1.51 1.5 2 1.67 1.5 1.4 1.25 1.15 1.02 1 0.97 Allowance for Credit Losses Allowance for Credit Losses Provision
Slide 16: Strong Foundation, Relevant Scale, Investing for Growth, Current Topics
U.S. Bancorp Strong Foundation Relevant Scale Investing for Growth Current Topics
Slide 17: Mix of Businesses
Mix of Businesses Payment Services Retail Payment Solutions Corporate Payment Systems Global Merchant Acquiring Wealth Management and Securities Services Wealth Management Corporate Trust Services Fund Services U.S. Bancorp Asset Management Institutional Trust & Custody Consumer and Small Business B
Slide 18: Wholesale Banking and Commercial Real Estate
Consumer Wholesale WM Payments Mix 0.55 0.28 0.17 0 Consumer Wholesale WM Payments Mix 0.54 0.32 0.02 0.12 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 20% 25% 32% 28% Wholesale Banking and Commercial Real Estate Full year 2010, excludi
Slide 19: Wholesale Banking and Commercial Real Estate Scale and Market Share
Wholesale Banking and Commercial Real Estate Source: SNL, Thomson Reuters Scale Leading provider of banking services to federal government Leading treasury management services provider #4 small business administration lender Market Share 1Q07 4Q10 2.8% 3.0% C&I Loans 1Q07 4Q10 1.6% 2.4% CRE Loans 20
Slide 20: Consumer and Small Business Banking
Consumer Wholesale WM Payments Mix 0.55 0.28 0.17 0 Consumer Wholesale WM Payments Mix 0.54 0.32 0.02 0.12 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 and Small Business Banking 43% 36% 54% 55% Metro Comm ISON HM CL Mix 0.26 0
Slide 21: Consumer and Small Business Banking Scale
Consumer and Small Business Banking Scale #4 Branch network #1 In-store branch network Market Share 1Q07 4Q10 2.0% 2.7% Core Deposits 1Q07 3Q10 0.7% 3.7% Home Mortgage Origination 1Q07 4Q10 1.9% 2.5% Home Equity Loans / Lines 1Q07 4Q10 2.8% 3.2% Consumer (non- mortgage) Loans #6 Non-captive auto fin
Slide 22: Wealth Management and Securities Services
Consumer Wholesale WM Payments Mix 0.34 0.14 0.13 0.39 Consumer Wholesale WM Payments Mix 0.55 0.28 0.17 0 17% 13% WM CT FS ITC FAF Mix 0.38 0.31 0.13 0.1 0.08 Wealth Management 38% Corporate Trust 31% IT&C 10% Fund Services 13% Asset Mgmt 8% Wealth Management and Securities Services Full year 2010,
Slide 23: Wealth Management and Securities Services Scale
Scale #2 Municipal trustee #3 Corporate trustee #3 Structured trustee Market Share +9% Wealth Management and Securities Services Sources: Securities Data Corp (corporate trust), Investment Company Institute (fund services) and Call Reports (institutional trust) #3 Third-party provider of fund servic
Slide 24: Payment Services
Consumer Wholesale WM Payments Mix 0.34 0.14 0.13 0.39 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 0.32 0.02 0.12 Payment Services Full year 2010, excluding Treasury and Corporate Support Revenue
Slide 25: Payment Services Scale
Payment Services Scale Top 5: Fleet card issuer and 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 Card General Purpose Vol
Slide 26: Strong Foundation, Relevant Scale, Investing for Growth, Current Topics
U.S. Bancorp Strong Foundation Relevant Scale Investing for Growth Current Topics
Slide 27: Investing for Growth - Capital Expenditures
Investing for Growth - Capital Expenditures 2005 2006 2007 2008 2009 2010 CapX 301 540 484 519 772 856 $ in millions, approved by Capital Expenditure Committee Technology Investments Tier 4 Data Center Branch Hardware & Software Internet Channel Home Mortgage Origination Platform Mobile Banking Chan
Slide 28: Investing for Growth - Acquisitions
Investing for Growth - Acquisitions Investing in the franchise Payments Merchant processing portfolio of Santander-Mexico Merchant processing portfolio of Citizens National Bank Credit card portfolios from Citi Merchant processing portfolio of MB Financial Bank Credit card portfolio of Town North Ba
Slide 29: New Mexico Acquisition
New Mexico Acquisition Source: SNL; market share as of 6/30/2010 U.S. Bank First Community Bank FDIC assisted whole bank purchase and assumption transaction U.S. Bank received substantially all assets and liabilities of First Community Bank, a subsidiary of First State Bancorporation of Albuquerque,
Slide 30: U.S. Bancorp - Current Branch Footprint
U.S. Bancorp - Current Branch Footprint
Slide 31: Strong Foundation, Relevant Scale, Investing for Growth, Current Topics
U.S. Bancorp Strong Foundation Relevant Scale Investing for Growth Current Topics
Slide 32: Regulatory Environment
Regulatory Environment Existing regulatory oversight actions Future regulatory oversight actions Dodd-Frank Wall Street Reform and Consumer Protection Act Consumer Financial Protection Bureau Residential mortgage foreclosure policy & procedures FY 2010 Annual Actual Run Rate Overdraft Legislation ^
Slide 33: Capital and Liquidity
Capital Capital Tier 1 common ratio 7.3% under Basel III Liquidity Liquidity Coverage Ratio (LCR) requires replacing off-balance sheet liquidity with on-balance sheet liquidity Expect transition to on-balance sheet liquidity to result in increase in average investment portfolio in 2011 No impact to
Slide 34: Positioned to Win
Positioned to Win Proven performance Building momentum @ Positioned Mig (Sbancorp.
Slide 35: Citi 2011 Financial Services Conference
Richard K. Davis Chairman, President and CEO March 9, 2011 Citi 2011 Financial Services Conference
Slide 36: Appendix
Appendix (Sbancorp.
Slide 37: Non-Regulatory Capital Ratios
Non-Regulatory Capital Ratios $ in millions
Slide 38: Citi 2011 Financial Services Conference
Richard K. Davis Chairman, President and CEO March 9, 2011 Citi 2011 Financial Services Conference
US Bancorp \de\ — Citi 2011 Financial Services Conference on 6ix