U.s. Bancorp · NYSE:USB
U.s. Bancorp — Debt Investor Presentation (September 2018)
23 slides from U.s. Bancorp's debt investor presentation, Sep 13, 2018
Slide 1: U.S. Bancorp Fixed Income Investor Presentation September 2018
U.S. Bancorp Fixed Income Investor Presentation September 2018 Exhibit 99.2
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: Today’s presentation contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including
Slide 3: Agenda
Agenda Overview Business Lines & Financial Management Balance Sheet & Capital Management Appendix
Slide 4: U.S. Bancorp Overview
U.S. Bancorp Overview NYSE TradedUSB Founded1863 Market Value$88B Branches3,045 ATMs4,725 Customers18.7M Assets$461B Deposits$340B Loans$280B As of 6/30/18, except market capitalization as of 9/7/18 Payment Services and Investment Services
Slide 5: Our Position in the Industry
Our Position in the Industry Source: company reports and Bloomberg Assets and deposits as of 6/30/18; market value as of 9/7/18 Assets Market Value Deposits
Slide 6: Agenda
Agenda Overview Business Lines & Financial Management Balance Sheet & Capital Management Appendix
Slide 7: Our Businesses
Our Businesses Payment Services 28% Wealth Management & Investment Services 14% Corporate & Commercial Banking 18% Consumer & Business Banking 40% Consumer & Business Banking: Branch banking, small business banking, consumer lending, mortgage banking and omnichannel delivery Payment Services: Retail
Slide 8: Diversified Business Mix
Diversified Business Mix Revenue mix source: FR Y-9C and company reports, FY17 U.S. Bancorp Revenue Mix Peer Bank Average Revenue Mix Net Interest Income Payments Fee Revenue Fiduciary Activities Service Charges Mortgage Fees Trading, Brokerage, Investment Banking, Equity Investments All Other Fee I
Slide 9: Our Business Mix and Product Delivery
Our Business Mix and Product Delivery Payment Services Wealth Management & Securities Services Retail Payment Solutions, Global Merchant Acquiring and Corporate Payment Systems Provides a full suite of payment processing services to consumers, small businesses, corporations, government and merchants
Slide 10: Profitability
Profitability Return on Average Assets Return on Average Common Equity Efficiency Ratio 2Q18 Source: Company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC *Non-GAAP, see slide 22 for calculation
Slide 11: Credit Quality
Credit Quality $ in millions NCO Ratio -1 bp QoQ -1 bp YoY NPAs -9.4% QoQ -19.1% YoY
Slide 12: Agenda
Agenda Overview Business Lines & Financial Management Balance Sheet & Capital Management Appendix
Slide 13: Best in Class Debt Rating
Best in Class Debt Rating Debt ratings: as of 9/10/2018 USB is the highest rated bank amongst its U.S. peers and is recognized by Moody’s as the highest rated bank globally Funding advantage Competitive advantages include pricing, flight-to-quality and sales force confidence * Moody’s Baseline Credi
Slide 14: Wholesale Funding Issuance History
Wholesale Funding Issuance History Strong deposit base results in less reliance on wholesale funding
Slide 15: Debt Maturity Distribution
Debt Maturity Distribution U.S. Bancorp issuance activity principally supports dividend payments, share buybacks, acquisitions, and operating expenses Diversified maturity profile across U.S. Bancorp and U.S. Bank National Association
Slide 16: Asset Sensitivity and Liquidity
Asset Sensitivity and Liquidity Net Interest Income Sensitivity Reliable source of core deposits Diversified sources of liquidity Excess cash and liquid assets Wholesale funding sources Off-balance sheet capacity Optimized liquidity position Total Available Liquidity ($bn) Well-Balanced Liquidity Po
Slide 17: Investment Portfolio
Investment Portfolio High-quality portfolio with minimal credit risk Majority of portfolio invested in U.S. government securities Portfolio Weighted Average Life of 5.4 years As of 6/30/18, at amortized cost
Slide 18: Capital Management
Capital Management Based on the Basel III fully implemented standardized approach Earnings Distribution Target: Reinvest & Acquisitions Dividends Share Repurchases 20 - 40% 30 - 40% 30 - 40% Hypothetical Earnings Distribution Example Dividends 30% Reinvestment 30% Share Repurchases 40% Assumed ROTCE
Slide 19: Competitive advantages
Competitive advantages Diversified business mix Operating scale Efficient platform Flight to quality Sustainability of dividends Sustainability in Earnings and Capital Source: Company filings and SNL Financial, Federal Reserve estimates under supervisory severely adverse scenario Peer banks: BAC, BB
Slide 20: Agenda
Agenda Overview Business Lines & Financial Management Balance Sheet & Capital Management Appendix
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures * *Includes net interest income on a taxable-equivalent basis
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures (1) Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent
Slide 23: September 2018 U.S. Bancorp Fixed Income
September 2018 U.S. Bancorp Fixed Income Investor Presentation
US Bancorp \de\ — Debt Investor Presentation (September 2018) on 6ix