U.s. Bancorp · NYSE:USB
U.s. Bancorp — BancAnalysts Association of Boston Conference 2013
30 slides from U.s. Bancorp's conference presentation, Nov 8, 2013
Slide 1: BancAnalysts Association of Boston Conference
BancAnalysts Association of Boston Conference Andy Cecere, Vice Chairman and CFO P.W. (Bill) Parker, EVP and Chief Credit Officer November 8, 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 Overview
U.S. Bancorp Overview Performance Capital Management Lending Environment 4Q13 Update Long-term Goals
Slide 4: U.S. Bancorp Dimensions
U.S. Bancorp Dimensions * As of November 1, 2013 Asset Size $361 billion Deposits $262 billion Loans $231 billion Customers 17.6 million NYSE Traded USB Market Capitalization* $68 billion Founded 1863 Bank Branches 3,088 ATMs 4,937 3Q13 Dimensions
Slide 5: Revenue Mix By Business Line
Revenue Mix By Business Line (CHART) Consumer and Small Business Banking 47% Payment Services 26% Wealth Mgmt and Securities Services 8% Wholesale Banking and Commercial Real Estate 19% Fee Income / Total Revenue (CHART) Full year 2012, taxable-equivalent basis Excluding securities gains (losses) ne
Slide 6: Growing Market Share
Growing Market Share Core Deposits 2.0% 2.6% Consumer Loans 1.8% 3.2% Mortgage Origination 0.7% 3.9% C&I Loans 3.2% 3.7% CRE Loans 1.6% 2.5% Source: SNL and Mortgagestats 2Q13 1Q07 USB Market Share Market Share Change Middle Market Loan 1.2% 7.0% Bookrunner Investment Grade Loan 0.3% 2.3% Bookrunner
Slide 7: Performance
U.S. Bancorp Overview Performance Capital Management Lending Environment 4Q13 Update Long-term Goals
Slide 8: 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
Slide 9: 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 10: Efficient Expense Platform
Efficient Expense Platform Single processing platforms Full consolidation of acquisitions Operating scale in all significant businesses Business line monthly review process If our efficiency ratio was peer median, our ROE would decrease to 9.9% 2012 Efficiency Ratio (CHART) Peer banks: BAC, BBT, FIT
Slide 11: Capital Management
U.S. Bancorp Overview Performance Capital Management Lending Environment 4Q13 Update Long-term Goals
Slide 12: Capital Management
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 13: Capital Management Earnings Distribution Target
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 14: Lending Environment
U.S. Bancorp Overview Performance Capital Management Lending Environment 4Q13 Update Long-term Goals
Slide 15: Loan Growth
Loan Growth $ in millions (CHART) (CHART) Linked Quarter Growth Average Balances Year-Over-Year Growth Average Balances 5.7% 1.9% 3.9% 4.4% 1.3% 1.5% 1.0% 1.2% 6.9% 12.2%
Slide 16: Loan Growth vs. Peers
Loan Growth vs. Peers Source: company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Average Loan Growth 3Q13 vs. 2Q13 (CHART) Average Loan Growth 3Q13 vs. 3Q12 (CHART)
Slide 17: Credit Quality
Credit Quality (CHART) $468 $ in millions * Excluding Covered Assets (assets subject to loss sharing agreements with FDIC) ** Related to a regulatory clarification in the treatment of residential mortgage and other consumer loans to borrowers who have exited bankruptcy but continue to make payments
Slide 18: Credit Quality - Reserves
Credit Quality - Reserves Strong credit culture resulted in #1 ranking among peers for the lowest net charge-off volatility from 1Q03 - 3Q13 Reserve build was less than our peers - now have modest releases Source: SNL and company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC 3Q1
Slide 19: Lending Environment
Lending Environment Source: The Federal Reserve Board, Senior Loan Officer Survey (CHART) (CHART) Leverage multiples near pre-recession levels; however, most funds come from institutional markets Multi-Family is the asset class seeing the most demand Banks have generally been easing wholesale underw
Slide 20: Lending Environment
Lending Environment (CHART) (CHART) Underwriting standards are beginning to ease with the improvement in the market value of homes U.S. Bank removed lower loan-to-value criteria for certain states that had been most severely impacted by the recession Auto loans have shown strong demand and some easi
Slide 21: Indirect Auto Lending
Indirect Auto Lending As of November 5, 2013 * Source: market share and pre-owned mix based on Experian Autocount for total auto financing market, market share based on loans and leases from all sources, ranking shown among banks only, pre-owned mix based on loans only ** Source: PIN (JD Power and A
Slide 22: 4Q13 Update
U.S. Bancorp Overview Performance Capital Management Lending Environment 4Q13 Update Long-term Goals
Slide 23: 4Q13 Update
4Q13 Update Liquidity Coverage Ratio (LCR) Net Interest Margin Mortgage Banking Noninterest Expense Loan Growth
Slide 24: Long-term Goals
U.S. Bancorp Overview Performance Capital Management Lending Environment 4Q13 Update Long-term Goals
Slide 25: 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 26: Appendix
EXTEND we ADVAI Appendix TSbancorp
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 29: 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 30: BancAnalysts Association of Boston Conference
BancAnalysts Association of Boston Conference
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