U.s. Bancorp · NYSE:USB
U.s. Bancorp — Morgan Stanley Financials Conference 2012
23 slides from U.s. Bancorp's conference presentation, Jun 12, 2012
Slide 1: Morgan Stanley Financials Conference 2012
Morgan Stanley Financials Conference 2012 Richard K. Davis Chairman, President and CEO June 12, 2012
Slide 2: Forward-looking statements
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 statements about beliefs and expectations, are forward-l
Slide 3: U.S. Bancorp Overview, Capital Management, Investing for Growth
U.S. Bancorp Overview Capital Management Investing for Growth
Slide 4: 1Q12 Dimensions
1Q12 Dimensions * As of June 1, 2012 Overview U.S. Bancorp Businesses Asset Size $341 billion Deposits $234 billion Loans $212 billion Customers 17.4 million NYSE Traded USB Market Capitalization* $56 billion Founded 1863 Bank Branches 3,080 ATMs 5,061
Slide 5: Revenue Mix By Business Line
2011 full year, taxable-equivalent basis Excluding securities gains (losses) net Revenue Mix By Business Line Fee Income / Total Revenue Diversification Consumer and Small Business Banking 44% Payment Services 28% Wealth Mgmt and Securities Services 8% Wholesale Banking and Commercial Real Estate 20
Slide 6: U.S. Bancorp Revenue Mix Diversification
Source: FRY-9C and company reports, 2011 full year, USB excludes $46 million FCB gain and $263 million merchant processing settlement Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC U.S. Bancorp Revenue Mix Diversification Overview Peer Bank Average Revenue Mix Net Interest Income Payment
Slide 7: Performance Metrics
Source: SNL and company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Return on Average Assets Return on Average Common Equity Efficiency Ratio Since 1Q08 1Q12 Performance Metrics Overview
Slide 8: Record Revenue Growth
* Gain on merchant processing agreement settlement $ in millions, taxable-equivalent basis Prior 5 Quarters Year-Over-Year Growth 4.6% 3.8% 4.5% 8.1% 9.1% Prior 5 Years Year-Over-Year Growth 2.3% 4.4% 13.6% 8.9% 5.3% Revenue Growth USB Record Revenue 2011 Overview
Slide 9: Loan and Deposit Growth
$ in billions 6% 12% 2% 4% 5% 17% 6% 12% 14% 18% 1% 7% 7% 20% 5% 11% 13% 5% 21% 15% Loans Deposits Prior 5 Quarters Average Balances Year-Over-Year Growth Prior 5 Years Ending Balances Year-Over-Year Growth Loan and Deposit Growth Overview
Slide 10: Credit Quality
Change in Net Charge-offs Change in Nonperforming Assets* NCO $ Change (Left Scale) NCO % Change (Right Scale) NPA $ Change (Left Scale) NPA % Change (Right Scale) -11% -2% -14% -6% -10% -7% -8% -7% 35% 30% 27% 26% 18% 25% 7% 12% 2% -5% -7% -5% -6% -7% -6% -6% -15% 34% 22% 33% 31% 23% 37% 5% 12% 2%
Slide 11: Capital Management
U.S. Bancorp Overview Capital Management Investing for Growth
Slide 12: Capital Position
* Not adjusted for the June 7th notices of proposed rulemaking (NPRs) $ in billions TARP Equity Tier 1 Capital Tier 1 Capital Ratio Tier 1 Common Ratio 1Q12 Tier 1 Common Ratio Basel III: 8.4%* Capital Position Capital Management
Slide 13: 2012 Stress Test
2012 Stress Test PPNR = Pre-Provision Net Revenue Source: Federal Reserve, Supervisory Stress Scenario, March 13, 2012 The company's Stress Test results confirmed, once again, the fundamental strength of U.S. Bancorp's business model and capital position, even when viewed under a remarkably stressed
Slide 14: Capital Actions
Capital Actions Dividend increase and share repurchase authorization announced March 13th Annual dividend raised from $0.50 to $0.78, a 56% increase One year share repurchase authorization of 100 million shares Dividends Share Repurchases 20 - 40% Targets: 30 - 40% 30 - 40% 34% 1Q12 Actual: 37% 29%
Slide 15: Investing for Growth
U.S. Bancorp Overview Capital Management Investing for Growth
Slide 16: Investing for Growth
Capital Expenditures Investments Mortgage banking In-store and on-site branches Wholesale banking expansion Ascent Private Capital Management International payments expansion Internet and mobile banking channels Tier 4 data center Call center telephony Distribution channel integration 2002 - 2006 To
Slide 17: Acquisitions
Payments Financial institutions credit card portfolio of FIA Card Services 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
Slide 18: Market Rank and Market Share
Middle Market Loan 19th 7th Bookrunner Investment Grade Loan 11th 6th Bookrunner Investment Grade Bond NA 10th Lead / Co-lead Source: Thomson Reuters based on number of issues 2011 2007 USB Market Rank Market Share Change Core Deposits 2.0% 2.7% Consumer Loans 1.8% 3.0% Mortgage Origination 0.7% 4.4
Slide 19: Summary: Long-term Goals and Current Status
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% Summary Current Status Four simple and stable business lines Mortgage, wealth management, corporate
Slide 20: Momentum continues
Momentum continues y y y Allof us serving your usbancorp
Slide 21: Appendix
Appendix (Sbancorp.
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Appendix
Slide 23: Morgan Stanley Financials Conference 2012
Morgan Stanley Financials Conference 2012
US Bancorp \de\ — Morgan Stanley Financials Conference 2012 on 6ix