U.s. Bancorp · NYSE:USB
U.s. Bancorp — Goldman Sachs U.S. Financial Services Conference 2013
24 slides from U.s. Bancorp's conference presentation, Dec 11, 2013
Slide 1: Goldman Sachs U.S. Financial Services Conference 2013
Goldman Sachs U.S. Financial Services Conference 2013 Andy Cecere Vice Chairman and CFO December 11, 2013
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 Dimensions
U.S. Bancorp Dimensions * As of December 6, 2013 Asset Size $361 billion Deposits $262 billion Loans $231 billion Customers 17.6 million NYSE Traded USB Market Capitalization* $72 billion Founded 1863 Bank Branches 3,088 ATMs 4,937 3Q13 Dimensions
Slide 4: U.S. Bancorp Creating Shareholder Value
U.S. Bancorp Creating Shareholder Value Low Risk Above Market Growth Industry Leading Returns Capital Management Long-term Goals 4Q13 Update
Slide 5: Diversified Business Mix
Revenue Mix By Business Line (CHART) Consumer and Small Business Banking 44% Payment Services 28% Wealth Mgmt and Securities Services 9% Wholesale Banking and Commercial Real Estate 19% Fee Income / Total Revenue (CHART) 3Q13 YTD, taxable-equivalent basis, excluding securities gains (losses) net Rev
Slide 6: Low Risk Balance Sheet
$ in millions, ending balances Low Risk Balance Sheet Interest Rate Risk Management The Company uses net interest income simulation analysis for measuring and analyzing consolidated interest rate risk The Company is currently slightly asset sensitive Low Risk Used to manage interest rate risk, provi
Slide 7: Top of Class Debt Ratings
Debt ratings: holding company as of December 6, 2013 Top of Class Debt Ratings op=outlook positive on=outlook negative s=outlook stable wu = watch uncertain wn=watch negative wp=watch positive Flight to quality Funding advantage On November 4th USB issued: $1 billion of 5-year senior medium term not
Slide 8: Growing Market Share
Growing Market Share Core Deposits 2.0% 2.6% Consumer Loans 1.8% 3.2% Mortgage Origination 0.7% 4.1% C&I Loans 3.2% 3.7% CRE Loans 1.6% 2.4% Source: SNL and Mortgagestats 3Q13 1Q07 USB Market Share Market Share Change Middle Market Loan 1.2% 7.0% Bookrunner Investment Grade Loan 0.3% 2.3% Bookrunner
Slide 9: Achieving Growth
Source: SNL; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Revenue and pre-provision income exclude securities gains (losses) net; pre-provision income percentages exclude Treasury and Corporate Support, see slide 23 for calculation Achieving Growth Growth (CHART) Loans 2010 Average $19
Slide 10: Industry Leading Returns
Industry Leading Returns Return on Average Assets Return on Average Common Equity Efficiency Ratio Full Year 2012 3Q13 YTD (CHART) (CHART) (CHART) (CHART) (CHART) (CHART) Source: SNL and company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC High Return
Slide 11: High Returns on Capital
High Returns on Capital 2012 Return on Average Tangible Common Equity Source: SNL and company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC (CHART) High return / capital efficient businesses Corporate Trust Merchant Processing Fund Services Treasury Management Corporate Payments
Slide 12: U.S. Bancorp Creating Shareholder Value
U.S. Bancorp Creating Shareholder Value Capital Management Long-term Goals 4Q13 Update
Slide 13: Capital Management: Capital Requirement
Capital Management Capital Requirement Tangible book value (TBV) = book value per share excluding intangible assets other than mortgage servicing rights; return on tangible common equity (ROTCE) = net income, adjusted for after-tax amortization of intangibles, as a % of average tangible common equit
Slide 14: Capital Management: Earnings Distribution
Capital Management Earnings Distribution Target (CHART) 62% 69% 11% 32% 73% Reinvest and Acquisitions Dividends Share Repurchases 20 - 40% 30 - 40% 30 - 40% Payout Ratio 77%
Slide 15: U.S. Bancorp Creating Shareholder Value
U.S. Bancorp Creating Shareholder Value Capital Management Long-term Goals 4Q13 Update
Slide 16: Long-term Goals
Long-term Goals 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, co
Slide 17: U.S. Bancorp Creating Shareholder Value
U.S. Bancorp Creating Shareholder Value Capital Management Long-term Goals 4Q13 Update
Slide 18: 4Q13 Update
4Q13 Update Liquidity Coverage Ratio (LCR) Net Interest Margin Mortgage Banking Noninterest Expense Loan Growth
Slide 19: Appendix
EXTEND we ADVAI Appendix TSbancorp
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 22: Tangible Book Value and Return on Average Tangible Common Equity
Non-GAAP Financial Measures Tangible Book Value and Return on Average Tangible Common Equity
Slide 23: Line of Business Financial Performance
Non-GAAP Financial Measures Line of Business Financial Performance $ in millions, taxable-equivalent basis, excluding securities gains (losses) net
Slide 24: Goldman Sachs U.S. Financial Services Conference 2013
Goldman Sachs U.S. Financial Services Conference 2013
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