U.s. Bancorp · NYSE:USB
U.s. Bancorp — The CFA Society of Minnesota InvestMNt 2014
32 slides from U.s. Bancorp's conference presentation, Aug 6, 2014
Slide 1: The CFA Society of Minnesota InvestMNt 2014
John Elmore Vice Chairman, Community Banking and Branch Delivery Kent Stone Vice Chairman, Consumer Banking Sales and Support August 6, 2014 The CFA Society of Minnesota InvestMNt 2014
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, Consumer and Small Business Banking, Summary
U.S. Bancorp Overview Capital Management Consumer and Small Business Banking Summary
Slide 4: Extending the Advantage
EXTENDING THe apvantace U.S. Bancorp International Consumer & 8 Bani Payments and Secur ath Management Bank mew ‘Wealth Manager urities Services x
Slide 5: U.S. Bancorp Dimensions
U.S. Bancorp Dimensions Asset Size $389 billion Deposits $276 billion Loans $244 billion Customers 17.9 million NYSE Traded USB Market Capitalization* $75 billion Founded 1863 Bank Branches 3,174 ATMs 5,005 * As of August 1, 2014 2Q14 Dimensions
Slide 6: Industry Position
Industry Position Source: company reports, SNL and FactSet Assets and deposits as of 6/30/14, market value as of 8/1/14
Slide 7: Diversification
Diversification 2Q14 YTD, taxable-equivalent basis, excluding securities gains (losses) net; 2Q14 fee income excludes $214 million Visa gain Revenue percentages exclude Treasury and Corporate Support, see slide 31 for calculation Revenue Mix By Business Line (CHART) Consumer and Small Business Banki
Slide 8: Peer Banks
Peer Banks Bank of America SunTrust Wells Fargo KeyCorp BBT Fifth Third Regions PNC J.P. Morgan U.S. Bancorp 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
Slide 9: Performance vs. Peers
Performance vs. Peers 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 basis and noninterest income excluding securities gains (losses) net Re
Slide 10: Loan and Deposit Growth
$ in billions Prior 5 Years Average Balances Year-Over-Year Growth Prior 5 Quarters Average Balances Year-Over-Year Growth (CHART) (CHART) 5% 5% 6% 7% 6% 6% 5% 5% 7% 4% 7% 6% 12% 4% 15% 11% 6% 23% 10% 6% Loan and Deposit Growth Loans Deposits
Slide 11: Credit Quality
(CHART) 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) (CHART)
Slide 12: Top of Class Debt Ratings
Holding company as of August 1, 2014 Top of Class Debt Ratings op=outlook positive on=outlook negative s=outlook stable wn=watch negative wp=watch positive
Slide 13: U.S. Bancorp Overview, Capital Management, Consumer and Small Business Banking, Summary
U.S. Bancorp Overview Capital Management Consumer and Small Business Banking Summary
Slide 14: Capital Management
Capital Management Capital Requirement 0.5% Potential D-SIFI Buffer 2.5% Capital Conservation Buffer 4.5% Minimum Capital Requirement 8.9%* Common Equity Tier 1 Basel III Target USB 2Q14 Reported Reinvest and Acquisitions Dividends Share Repurchases 20 - 40% 30 - 40% 30 - 40% * Based on the final ru
Slide 15: Capital Distributions
Capital Distributions Dividend increase announced June 17th Annual dividend increased from $0.92 to $0.98, a 6.5% increase One year authorization to repurchase up to $2.3 billion of outstanding stock effective April 1, 2014 Returned 75% of earnings to shareholders during 2Q14 (CHART) 62% 11% 32% Pay
Slide 16: Prudent Acquisition Strategy
Prudent Acquisition Strategy (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 Citi
Slide 17: Acquisition - Chicago Branches
Acquisition - Chicago Branches Acquired the Chicago-area branch banking franchise of RBS Citizens (branded as Charter One Bank) Approximately $4.8 billion of deposits and $969 million of loans Nearly doubles Chicago deposit base Consistent with our strategy - branch deals in market where we can deep
Slide 18: U.S. Bancorp Overview, Capital Management, Consumer and Small Business Banking, Summary
U.S. Bancorp Overview Capital Management Consumer and Small Business Banking Summary
Slide 19: Consumer and Small Business Banking Profile
Consumer and Small Business Banking Profile 2Q14 YTD, taxable-equivalent basis, excluding securities gains (losses) net Revenue percentages exclude Treasury and Corporate Support, see slide 31 for calculation USB Revenue Mix By Business Line (CHART) Consumer and Small Business Banking 42% Consumer a
Slide 20: Competitive Advantages
Competitive Advantages USB Relative Position Versus Larger Competitors Versus Smaller Competitors Community Banking Business Model In-store and On-site Branch Delivery Models Customer Experience - Retail Customer Experience - Small Business Small Business Franchise Breadth and Depth of Capabilities
Slide 21: Scale: Market Position and Share
1Q07 1Q14 Scale Consumer Banking Sales and Support #2 SBA Lender Market Share Business Unit Market Rank #5 Core Deposits 2.0% 2.6% Community Banking and Branch Delivery Source: SNL, Mortgagestats and Experian, U.S. Small Business Administration #7 Home Equity Loans and Lines 1.9% 2.7% #6 Home Mortga
Slide 22: Branch Distribution
Branch Distribution 3,174 U.S. Bank branch offices 5,005 U.S. Bank branded ATMs #4 branch network in U.S. with 25 contiguous state distribution footprint #1 in-store and on-site branch network 2Q14 Branches Metro traditional offices Community traditional offices In-Store and On-Site Offices
Slide 23: The Right Delivery Model
The Right Delivery Model 3,174 Branch Locations Metropolitan Branches 1,190 Branches Providing a full array of consumer and small business banking products and services in larger markets In-store/On-site Branches 881 Branches Small footprint branches in highly convenient locations Includes all in-st
Slide 24: Branch of the Future
Branch of the Future Optimized Network (Illustrative) Video ATM Anchor Branch Online Banking On-Site Branch Drive Thru Branch In-Store Branch Mobile Banking " "Drop In" Branch
Slide 25: National Consumer Lending Expansion
National Consumer Lending Expansion $ in millions (CHART) (CHART) Auto Lending Expand non-captive lending position - new auto, new leasing Expand / establish new manufacturer relationships and strategic partnerships Leverage current dealer relationship for pre-owned vehicle financing Continue new pr
Slide 26: U.S. Bancorp Overview, Capital Management, Consumer and Small Business Banking, Summary
U.S. Bancorp Overview Capital Management Consumer and Small Business Banking Summary
Slide 27: 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 28: Appendix
Appendix The CFA Society of Minnesota InvestMNt
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 31: Non-GAAP Financial Measures: 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 32: The CFA Society of Minnesota InvestMNt 2014
August 6, 2014 The CFA Society of Minnesota InvestMNt 2014
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