U.s. Bancorp · NYSE:USB
U.s. Bancorp — Goldman Sachs U.S. Financial Services Conference 2016
18 slides from U.s. Bancorp's conference presentation, Dec 7, 2016
Slide 1: Goldman Sachs U.S. Financial Services Conference 2016
Goldman Sachs U.S. Financial Services Conference 2016 Andy Cecere, President and COO Terry Dolan, Vice Chairman and CFO December 7, 2016
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: Core Banking Businesses
Core Banking Businesses Advantages and differentiators Consumer & Small Business Banking • Differentiated delivery model: onsite branches, metro branches, community banking and virtual • Moving beyond demographics to segmentation • Right-sizing the branch network provides expense and Consumer revenu
Slide 4: Fee Businesses
Fee Businesses Advantages and differentiators Payment Services Payment • Focus on profitable growth Services • Building on strengths of existing partners and capabilities 31% to widen our footprint • Extending our competitive advantage by cultivating Consumer distribution networks & Small Business •
Slide 5: Customer-centered Insights
Customer-centered Insights Shifting data efforts from what has or is happening to what will happen 2015 2016 More effectively integrate 2017 Optimize customer and insights and analytics to Predict customer behavior employee relationships drive business value Operational reporting Predictive analytic
Slide 6: Summarizing Our Foundational Efforts
Summarizing Our Foundational Efforts Our unified customer experience efforts impact how we work, think and mobilize around the customer at U.S. Bancorp FROM TO Product-focused Customer-centric Several approaches to segment and Bank-wide segmentation model target customers Fragmented initiatives, foc
Slide 7: Bank-wide Culture of Innovation
Bank-wide Culture of Innovation Engaging the FinTech community We are actively staying at the forefront of innovation and security. Our partnership with We have informal Bank Innovation and Plug and Play, a relationships with VC FiServ launched the Silicon Valley innovation firms, such as INV FinTec
Slide 8: Our Next Generation Banking Initiative
Our Next Generation Banking Initiative Next Generation Banking aspiration: Define and deliver a brandable, differentiated consumer experience that delivers personalization and strengthens relationships through all touch points • Efforts are channel-agnostic and focus initially on consumer banking (r
Slide 9: Innovation: Customer Experience
Innovation: Customer Experience Pivot: The Future Is Now Smart analytics and trade processing make Institutional clients use Pivot to replace existing client interactions more efficient and secure. platforms and processes. Trading CLIENTS capabilities available today can cut 30 minutes or more off o
Slide 10: Geolocation – New Service Feature
Geolocation – New Service Feature • When cardholders transact in-store with their enrolled card, Visa compares cardholder’s mobile device to the merchant location in the authorization • Service works in the background; cardholders can continue to travel and use their card more confidently • Now avai
Slide 11: Elavon + Poynt
Elavon + Poynt The latest in payment acceptance technology for small businesses • Allows payment and security options for small businesses typically offered only at large retailers • Terminals come equipped with Elavon’s Safe-T technology and a broad range of mobile capabilities • Offers multi-payme
Slide 12: Corporate Payments: AP Optimizer
Corporate Payments: AP Optimizer “New Product of the Year” – Business Intelligence Group • Built-in partnership with Sage, a cloud accounting leader and MasterCard • Enables corporate finance managers to compare performance to peers, manage cash flow, and optimize payments and cash flow U.S. BANCORP
Slide 13: Distributed Ledger Pilots
Distributed Ledger Pilots Research and development focused on streamlining customer experience, improving transparency and increasing efficiency • Several successful pilots completed as part of the R3/Distributed Ledger Group Consortium – Capital Markets Loan Syndications • 17 banks, custodians and
Slide 14: Hackathons: External Innovation Engagement
Hackathons: External Innovation Engagement 100 developers and designers on 24 teams U.S. BANCORP | 14
Slide 15: Internal Idea Campaigns
Internal Idea Campaigns 12 countries 254 ideas >10k votes and comments 9 projects funded 4 commercialized to-date U.S. BANCORP | 15
Slide 16: Fourth Quarter Update
Fourth Quarter Update • Loan growth: 1.0% to 1.5% growth • Credit quality: Stable to prior quarters • Net Interest Margin: Stable to 3Q16 margin given rate environment • Net Interest Income: Growth driven by average earning assets • Mortgage revenues: Lower on linked basis by 25% to 30% • Noninteres
Slide 17: Appendix
Appendix U.S. BANCORP | 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures $ in millions Revenue Line of Business Financial Performance 3Q16 YTD Wholesale Banking and Commercial Real Estate $ 2,314 Consumer and Small Business Banking 5,432 Wealth Management and Securities Services 1,557 Payment Services 4,229 Treasury and Corporate Support 2,341
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