U.s. Bancorp · NYSE:USB
U.s. Bancorp — Q1 2013 Earnings Presentation
30 slides from U.s. Bancorp's earnings presentation, Apr 16, 2013
Slide 1: U.S. Bancorp 1Q13 Earnings Conference Call
Exhibit 99.2 U.S. Bancorp 1Q13 Earnings Conference Call Richard K. Davis Chairman, President and CEO Andy Cecere April 16, 2013 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: 1Q13 Highlights
1Q13 Earnings 1Q13 Highlights Conference Call Net income of $1.4 billion; $0.73 per diluted common share Positive operating leverage on a linked quarter and year-over-year basis Average loan growth of 5.8% vs. 1Q12 and average loan growth of 1.0% vs. 4Q12 Strong average deposit growth of 7.3% vs. 1Q
Slide 4: Performance Ratios
1Q13 Earnings Performance Ratios Conference Call Efficiency Ratio and ROCE and ROA Net Interest Margin Return on Avg Common Equity Return on Avg Assets Efficiency Ratio Net Interest Margin Efficiency ratio computed as noninterest expense divided by the sum of net interest income on a taxable-equival
Slide 5: Revenue Growth
1Q13 Earnings Revenue Growth Conference Call $ in millions Year-Over-Year Growth 9.1% 8.1% 8.0% 0.2% (1.1%) 5,500 $5,179 $5,112 $5,068 5,000 $4,929 $4,874 4,500 4,000 3,500 1Q12 2Q12 3Q12 4Q12 1Q13 5 Taxable-equivalent basis
Slide 6: Loan and Deposit Growth
1Q13 Earnings Loan and Deposit Growth Conference Call $ in billions Average Balances Year-Over-Year Growth 9.2% 7.3% 250.0 11.1% $245.0 $243.8 10.5% $239.3 11.7% $231.3 $228.3 6.4% 5.8% 230.0 7.3% 7.7% $220.3 $222.4 6.4% $216.9 $214.1 $210.2 210.0 190.0 170.0 1Q12 2Q12 3Q12 4Q12 1Q13 Loans Deposits
Slide 7: Credit Quality
1Q13 Earnings Credit Quality Conference Call $ in millions Net Charge-offs Nonperforming Assets* 800 3.00% 3,200 3.00% $2,423 600 $571 2.25% 2,400 $2,256 2.25% $538 $2,188 $520 $2,088 $2,029 $468 $433 400 1.50% 1,600 1.50% 1.22% 1.09% 1.11% 1.06% 0.98% 0.99% 0.98% 0.95% 0.85% 0.79% 200 0.89%*** 0.75
Slide 8: Earnings Summary
1Q13 Earnings Earnings Summary Conference Call $ in millions, except per-share data % B/(W) 1Q13 4Q12 1Q12 vs 4Q12 vs 1Q12 Net Interest Income $ 2,709 $ 2,783 $ 2,690 (2.7) 0.7 Noninterest Income 2,165 2,329 2,239 (7.0) (3.3) Total Revenue 4,874 5,112 4,929 (4.7) (1.1) Noninterest Expense 2,470 2,68
Slide 9: 1Q13 Results - Key Drivers
1Q13 Earnings 1Q13 Results - Key Drivers Conference Call vs. 1Q12 Net Revenue decline of 1.1% • Net interest income growth of 0.7%; net interest margin of 3.48% vs. 3.60% in 1Q12 • Noninterest income decline of 3.3% Noninterest expense decline of 3.5% Provision for credit losses lower by $78 million
Slide 10: Capital Position
1Q13 Earnings Capital Position Conference Call $ in billions 1Q13 4Q12 3Q12 2Q12 1Q12 Shareholders' equity $ 39.5 $ 39.0 $ 38.7 $ 37.8 $ 35.9 Tier 1 capital 31.8 31.2 30.8 30.0 30.0 Total risk-based capital 38.1 37.8 37.6 36.4 36.4 Tier 1 common equity ratio 9.1% 9.0% 9.0% 8.8% 8.7% Tier 1 capital r
Slide 11: Capital Actions
1Q13 Earnings Capital Actions Conference Call Share repurchase authorization and expected dividend increase announced th March 14 Expect to increase annual dividend from $0.78 to $0.92, an 18% increase, effective 2Q13 One year authorization to repurchase up to $2.25 billion of outstanding stock effe
Slide 12: Mortgage Repurchase
1Q13 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 1Q13 4Q12 3Q12 2Q12 1Q12 • Conservative credit and Beginning Reserve $240 $220 $216 $202 $160 unde
Slide 13: A Rich Heritage A Strong Future
A Rich Heritage A Strong Future 1863 - 2013 13
Slide 14: Appendix
1Q13 Earnings Conference Call Appendix 14
Slide 15: Average Loans
1Q13 Earnings Average Loans Conference Call $ in billions Average Loans Key Points Year-Over-Year Growth vs. 1Q12 6.4% 7.7% 7.3% 6.4% 5.8% Average total loans grew over $12 billion, or 5.8% $222.4 Average total loans, excluding covered loans, $216.9 $220.3 $210.2 $214.1 were higher by 8.0% Retail Av
Slide 16: Average Deposits
1Q13 Earnings Average Deposits Conference Call $ in billions Average Deposits Key Points Year-Over-Year Growth vs. 1Q12 11.7% 10.5% 11.1% 9.2% 7.3% Average total deposits increased by $16.7 billion, or 7.3% $243.8 $245.0 Average low cost deposits (NIB, interest $231.3 $239.3 $228.3 checking, money m
Slide 17: Net Interest Income
1Q13 Earnings Net Interest Income Conference Call $ in millions Net Interest Income Key Points Year-Over-Year Growth vs. 1Q12 7.3% 6.6% 6.1% 4.1% 0.7% Average earning assets grew by $13.9 billion, or 4.6% 4,000 8.0% Net interest margin lower by 12 bps (3.48% vs. 3.60%) driven by: 3,000 $2,690 $2,713
Slide 18: Noninterest Income
1Q13 Earnings Noninterest Income Conference Call $ in millions Noninterest Income Key Points vs. 1Q12 Year-Over-Year Growth Noninterest income declined by $74 million, or 3.3%, 11.3% 9.7% 10.4% (4.2%) (3.3%) driven by: 2,800 • Lower other income, mainly due to lower equity investment and $2,396 reta
Slide 19: Noninterest Expense
1Q13 Earnings Noninterest Expense Conference Call $ in millions Noninterest Expense Key Points vs. 1Q12 Year-Over-Year Growth Noninterest expense was lower by $90 million, or 10.6% 7.3% 5.4% (0.4%) (3.5%) 3.5%, driven by: 2,800 $2,601 $2,609 $2,686 • Lower other expense, mainly due to favorable vari
Slide 20: Credit Quality - Commercial Loans
1Q13 Earnings Credit Quality - Commercial Loans Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q12 4Q12 1Q13 80,000 4.0% Average Loans $51,309 $58,552 $59,921 30-89 Delinquencies 0.30% 0.48% 0.20% $59,921 60,000 $56,655 $58,552 3.0% 90+ Delinquencies 0.08% 0.1
Slide 21: Credit Quality - Commercial Leases
1Q13 Earnings Credit Quality - Commercial Leases Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 8,000 4.0% 1Q12 4Q12 1Q13 Average Loans $5,822 $5,377 $5,378 $5,822 30-89 Delinquencies 0.89% 0.89% 0.82% 6,000 $5,658 $5,537 3.0% $5,377 $5,378 90+ Delinquencies 0.
Slide 22: Credit Quality - Commercial Real Estate
1Q13 Earnings Credit Quality - Commercial Real Estate Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q12 4Q12 1Q13 60,000 4.0% Average Loans $35,985 $36,851 $37,218 30-89 Delinquencies 0.45% 0.43% 0.22% 45,000 3.0% 90+ Delinquencies 0.04% 0.02% 0.02% $35,985 $
Slide 23: Credit Quality - Residential Mortgage
1Q13 Earnings Credit Quality - Residential Mortgage Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q12 4Q12 1Q13 60,000 4.0% Average Loans $37,831 $43,156 $45,109 30-89 Delinquencies 0.95% 0.79% 0.71% $45,109 45,000 $40,969 $43,156 3.0% 90+ Delinquencies 0.79%
Slide 24: Credit Quality - Credit Card
1Q13 Earnings Credit Quality - Credit Card Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q12 4Q12 1Q13 Average Loans $16,778 $16,588 $16,528 30-89 Delinquencies 1.26% 1.33% 1.24% 90+ Delinquencies 1.33% 1.27% 1.26% Nonperforming Loans 1.25% 0.85% 0.78% Averag
Slide 25: Credit Quality - Home Equity
1Q13 Earnings Credit Quality - Home Equity Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q12 4Q12 1Q13 Average Loans $17,933 $16,950 $16,434 30-89 Delinquencies 0.82% 0.76% 0.70% 90+ Delinquencies 0.68% 0.30% 0.27% Nonperforming Loans 0.23% 1.13% 1.25% Subpri
Slide 26: Credit Quality - Retail Leasing
1Q13 Earnings Credit Quality - Retail Leasing Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q12 4Q12 1Q13 Average Loans $5,095 $5,384 $5,448 30-89 Delinquencies 0.12% 0.22% 0.12% 90+ Delinquencies 0.02% 0.02% 0.02% Nonperforming Loans 0.00% 0.02% 0.02% Commen
Slide 27: Credit Quality - Other Retail
1Q13 Earnings Credit Quality - Other Retail Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q12 4Q12 1Q13 Average Loans $24,902 $25,595 $25,364 30-89 Delinquencies 0.51% 0.59% 0.48% 90+ Delinquencies 0.17% 0.17% 0.16% Nonperforming Loans 0.10% 0.11% 0.10% Other
Slide 28: Credit Quality - Auto Loans
1Q13 Earnings Credit Quality - Auto Loans Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q12 4Q12 1Q13 Average Loans $11,657 $12,540 $12,519 30-89 Delinquencies 0.43% 0.41% 0.30% 90+ Delinquencies 0.06% 0.06% 0.03% Nonperforming Loans 0.00% 0.02% 0.02% Indirec
Slide 29: Non-GAAP Financial Measures
1Q13 Earnings Non-GAAP Financial Measures Conference Call $ in millions 1Q13 4Q12 3Q12 2Q12 1Q12 Total equity $ 40,847 $ 40,267 $ 39,825 $ 38,874 $ 36,914 Preferred stock (4,769) (4,769) (4,769) (4,769) (3,694) Noncontrolling interests (1,316) (1,269) (1,164) (1,082) (1,014) Goodwill (net of deferre
Slide 30: U.S. Bancorp 1Q13 Earnings Conference Call
U.S. Bancorp 1Q13 Earnings Conference Call April 16, 2013