30 slides from U.s. Bancorp's earnings presentation, Apr 15, 2015
Slide 1: U.S. Bancorp 1Q15 Earnings Conference Call
Exhibit 99.2 U.S. Bancorp 1Q15 Earnings Conference Call Richard K. Davis Chairman, President and CEO Kathy Rogers April 15, 2015 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: 1Q15 Highlights
1Q15 Earnings 1Q15 Highlights Conference Call Net income of $1.4 billion; $0.76 per diluted common share Average loan growth of 5.1% vs. 1Q14 and 0.6% vs. 4Q14 (0.8% excluding the reclassification of certain municipal loans to securities) Average deposit growth of 8.1% vs. 1Q14 (6.4% excluding Chart
Slide 4: Performance Ratios
1Q15 Earnings Performance Ratios Conference Call Return on Average Common Equity Efficiency Ratio and and Return on Average Assets Net Interest Margin 20% 3.0% 64% 4.0% 3.35% 17% 2.5% 60% 3.27% 3.4% 3.16% 3.14% 15.1% 3.08% 14.6% 14.5% 14.4% 14.1% 14% 2.0% 56% 2.8% 54.3% 54.3% 1.60% 52.9% 53.1% 1.56%
Slide 5: Revenue Growth
1Q15 Earnings Revenue Growth Conference Call $ in millions Year-Over-Year Change (1.2%) 4.9% 2.0% 5.7% 1.9% 5,500 $5,188 $5,169 $214* $4,990 $124** 5,000 $4,906 $4,814 4,500 4,000 3,500 1Q14 2Q14 3Q14 4Q14 1Q15 * Gain on Visa Inc. Class B common stock sale ** Gain related to an equity interest in Nu
Slide 6: Loan and Deposit Growth
1Q15 Earnings Loan and Deposit Growth Conference Call $ in billions Year-Over-Year Growth Average Balances 290.0 8.1% 7.2% $278.5 7.4% $275.5 $271.0 270.0 6.0% 5.1% $262.4 $257.5 5.9% 5.1% 250.0 6.3% $248.0 6.8% $246.4 $243.9 6.0% $240.5 $235.9 230.0 210.0 1Q14 2Q14 3Q14 4Q14 1Q15 Loans Deposits 6
Slide 7: Credit Quality
1Q15 Earnings Credit Quality Conference Call $ in millions Net Charge-offs Nonperforming Assets 520 3.00% 2,800 3.00% 390 2.25% 2,100 $1,999 2.25% $1,943 $1,923 $341 $349 $336 $1,808 $308 $1,696 $279 260 1.50% 1,400 1.50% 0.84% 0.80% 0.78% 0.73% 0.69% 130 0.59% 0.58% 0.55% 0.75% 700 0.75% 0.50% 0.46
Slide 8: Earnings Summary
1Q15 Earnings Earnings Summary Conference Call $ and shares in millions, except per-share data % B/(W) 1Q15 4Q14 1Q14 vs 4Q14 vs 1Q14 Net Interest Income $ 2,752 $ 2,799 $ 2,706 (1.7) 1.7 Noninterest Income 2,154 2,370 2,108 (9.1) 2.2 Net Revenue 4,906 5,169 4,814 (5.1) 1.9 Noninterest Expense 2,665
Slide 9: 1Q15 Results - Key Drivers
1Q15 Earnings 1Q15 Results - Key Drivers Conference Call vs. 1Q14 Net Revenue increase of 1.9% • Net interest income increase of 1.7%; net interest margin of 3.08% vs. 3.35% in 1Q14 • Noninterest income increase of 2.2% Noninterest expense increase of 4.8% Provision for credit losses declined by $42
Slide 10: Capital Position
1Q15 Earnings Capital Position Conference Call $ in billions 1Q15 4Q14 3Q14 2Q14 1Q14 Total U.S. Bancorp shareholders' equity $ 44.3 $ 43.5 $ 43.1 $ 42.7 $ 42.1 Standardized Approach Basel III transitional standardized approach Common equity tier 1 capital 31.3 30.9 30.2 29.8 29.5 Tier 1 capital 36.
Slide 11: Capital Actions
1Q15 Earnings Capital Actions Conference Call Share repurchase authorization and expected dividend increase announced th March 11 • Expect to increase annual dividend from $0.98 to $1.02, a 4.1% increase, effective 2Q15 • Five-quarter authorization to repurchase up to $3.022 billion of outstanding c
Slide 12: 1Q15 Earnings Conference Call
1Q15 Earnings Conference Call 12
Slide 13: Appendix
1Q15 Earnings Conference Call Appendix 13
Slide 14: Average Loans
1Q15 Earnings Average Loans Conference Call $ in billions Average Loans Key Points Year-Over-Year Growth vs. 1Q14 6.0% 6.8% 6.3% 5.9% 5.1% Average total loans grew by $12.1 billion, or 5.1% (4.8% excluding Charter One acquisition) 280 $235.9 $240.5 $243.9 $246.4 $248.0 Average total commercial loans
Slide 15: Average Deposits
1Q15 Earnings Average Deposits Conference Call $ in billions Average Deposits Key Points Year-Over-Year Growth vs. 1Q14 5.1% 6.0% 7.4% 7.2% 8.1% Average total deposits increased by $21.0 billion, or 8.1% (6.4% excluding Charter One 320 acquisition) $271.0 $275.5 $278.5 $257.5 $262.4 Average low-cost
Slide 16: Net Interest Income
1Q15 Earnings Net Interest Income Conference Call $ in millions Net Interest Income Key Points vs. 1Q14 Year-Over-Year Change Average earning assets grew by $34.6 billion, (0.1%) 2.7% 1.3% 2.4% 1.7% or 10.6% 4,000 8.0% Net interest margin lower by 27 bps (3.08% vs. 3.35%) driven by: 3,000 $2,706 $2,
Slide 17: Noninterest Income
1Q15 Earnings Noninterest Income Conference Call $ in millions Noninterest Income Key Points vs. 1Q14 Year-Over-Year Change Noninterest income increased by $46 million, or (2.6%) 7.4% 3.0% 9.9% 2.2% 2.2%, driven by: • Higher trust and investment management fees (5.9% increase) 2,800 due to account g
Slide 18: Noninterest Expense
1Q15 Earnings Noninterest Expense Conference Call $ in millions Noninterest Expense Key Points vs. 1Q14 Year-Over-Year Change Noninterest expense was higher by $121 million, 3.0% 7.7% 1.9% 4.5% 4.8% or 4.8%, driven by: 3,200 • Higher compensation expense (5.7% increase) reflecting the $2,804 impact
Slide 19: Credit Quality - Commercial Loans
1Q15 Earnings Credit Quality - Commercial Loans Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q14 4Q14 1Q15 100,000 2.0% Average Loans $65,645 $74,333 $76,183 30-89 Delinquencies 0.25% 0.27% 0.19% $74,333 $76,183 75,000 $69,920 $72,190 1.5% 90+ Delinquencies
Slide 20: Credit Quality - Commercial Leases
1Q15 Earnings Credit Quality - Commercial Leases Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q14 4Q14 1Q15 9,000 2.1% Average Loans $5,189 $5,292 $5,325 30-89 Delinquencies 0.74% 0.78% 0.84% 6,000 $5,292 $5,325 1.4% 90+ Delinquencies 0.00% 0.00% 0.00% $5,18
Slide 21: Credit Quality - Commercial Real Estate
1Q15 Earnings Credit Quality - Commercial Real Estate Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q14 4Q14 1Q15 60,000 1.5% Average Loans $40,050 $40,966 $42,671 30-89 Delinquencies 0.14% 0.26% 0.24% $40,839 $40,966 $42,671 $40,050 $40,497 40,000 1.0% 90+ D
Slide 22: Credit Quality - Residential Mortgage
1Q15 Earnings Credit Quality - Residential Mortgage Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q14 4Q14 1Q15 60,000 2.0% Average Loans $51,584 $51,872 $51,426 $51,584 $51,815 $51,994 $51,872 $51,426 30-89 Delinquencies 0.59% 0.43% 0.38% 45,000 1.5% 90+ Del
Slide 23: Credit Quality - Credit Card
1Q15 Earnings Credit Quality - Credit Card Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q14 4Q14 1Q15 20,000 8.0% Average Loans $17,407 $17,990 $17,823 $17,753 $17,990 $17,823 $17,407 $17,384 30-89 Delinquencies 1.19% 1.24% 1.16% 15,000 6.0% 90+ Delinquencie
Slide 24: Credit Quality - Home Equity
1Q15 Earnings Credit Quality - Home Equity Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q14 4Q14 1Q15 20,000 4.0% Average Loans $15,366 $15,853 $15,897 $15,853 $15,897 30-89 Delinquencies 0.57% 0.54% 0.41% $15,366 $15,327 $15,704 15,000 3.0% 90+ Delinquencie
Slide 25: Credit Quality - Retail Leasing
1Q15 Earnings Credit Quality - Retail Leasing Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q14 4Q14 1Q15 8,000 0.8% Average Loans $5,979 $5,939 $5,819 30-89 Delinquencies 0.16% 0.18% 0.12% $5,979 $6,014 $5,991 $5,939 6,000 $5,819 0.6% 90+ Delinquencies 0.02%
Slide 26: Credit Quality - Other Retail
1Q15 Earnings Credit Quality - Other Retail Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q14 4Q14 1Q15 40,000 2.0% Average Loans $26,312 $27,317 $27,604 30-89 Delinquencies 0.40% 0.51% 0.44% 30,000 $27,317 $27,604 1.5% 90+ Delinquencies 0.13% 0.12% 0.11% $26
Slide 27: Credit Quality - Auto Loans
1Q15 Earnings Credit Quality - Auto Loans Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q14 4Q14 1Q15 16,000 $14,404 $14,644 $15,013 2.0% Average Loans $13,815 $14,644 $15,013 $13,815 $14,108 30-89 Delinquencies 0.26% 0.45% 0.30% 12,000 1.5% 90+ Delinquencies
Slide 28: Mortgage Repurchase
1Q15 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 1Q15 4Q14 3Q14 2Q14 1Q14 • Conservative credit and Beginning Reserve $46 $62 $69 $75 $83 underwrit
Slide 29: Non-GAAP Financial Measures
1Q15 Earnings Non-GAAP Financial Measures Conference Call March 31, December 31, September 30, June 30, March 31, (Dollars in Millions, Unaudited) 2015 2014 2014 2014 2014 Total equity $44,965 $44,168 $43,829 $43,386 $42,743 Preferred stock (4,756) (4,756) (4,756) (4,756) (4,756) Noncontrolling inte
Slide 30: U.S. Bancorp 1Q15 Earnings Conference Call
U.S. Bancorp 1Q15 Earnings Conference Call April 15, 2015