U.s. Bancorp · NYSE:USB
U.s. Bancorp — BancAnalysts Association of Boston Conference 2017
24 slides from U.s. Bancorp's conference presentation, Nov 3, 2017
Slide 1: BancAnalysts Association of Boston Conference 2017
BancAnalysts Association of Boston Conference 2017 November 3, 2017 Terry Dolan Vice Chairman, CFO Gunjan Kedia Vice Chairman, Wealth Management & Securities Services Exhibit 99.1
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: U.S. Bancorp Overview
U.S. Bancorp Overview As of 9/30/17, except market value as of 10/24/17 NYSE TradedUSB Founded 1863 Market Value $91B Assets $459B Deposits $343B Loans $279B
Slide 4: Our Position in the Industry
Our Position in the Industry Source: Company reports and Bloomberg Assets and deposits as of 9/30/17, market value as of 10/24/17 Assets Market Value Deposits
Slide 5: Our Financial Performance
Our Financial Performance Return on Average Common Equity Return on Average Assets Efficiency Ratio* 3Q17 YTD Source: company reports; peers include: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC * Non-GAAP, see slide 23 for calculation
Slide 6: Our Businesses
Our Businesses Payment Services 30% Wealth Management & Securities Services 13% Wholesale Banking 18% Consumer & Small Business Banking 39% CSBB: Branch banking, small business banking, consumer lending, mortgage banking and omnichannel delivery Payments: Retail Payment Solutions, Global Merchant Ac
Slide 7: Our Strategic Priorities
Our Strategic Priorities 1) One U.S. Bank initiative: putting the customer in the center 2) Leveraging technology and innovation to drive growth and efficiency 3) A relentless focus on optimization one U.S. Bank
Slide 8: Wealth Management and Securities Services
Wealth Management and Securities Services $ in millions, unless otherwise noted Revenue breakdown 3Q17 YTD taxable-equivalent basis 3Q17 YTD Net interest income $558 Noninterest income $1,222 Total revenue $1,780 Noninterest expense $1,209 Net income $363 Fee income ratio 68.7% Efficiency ratio 67.9
Slide 9: Securities Services
Securities Services Corporate Trust Services provided in support of debt issuance Business built organically and through 21 acquisitions Clients include corporations, municipalities, credit asset managers and structured debt sponsors Significant deposit and money fund asset gathering Fund Services S
Slide 10: Securities Services: An Attractive Business
Securities Services: An Attractive Business The market Robust long-term secular growth trends Good economics Stable risk and competitive profile Our position High barriers to entry Scale efficiencies Segment focus Leader in service quality and reputation Advantage of U.S. Bank ownership Our strategy
Slide 11: The Market: Long-term Secular Growth Trends
The Market: Long-term Secular Growth Trends Demographics, technology and globalization will drive continued growth in capital markets that will fuel growth in the Securities Services industry. Global equity Global debt securities* 8.2% CAGR 7.3% CAGR Source: McKinsey global banking pools $ in trilli
Slide 12: The Market: Competitive Profile
The Market: Competitive Profile Source: Thomson Reuters, Bloomberg, ICI, Mergr.com, company websites BNY acquires RBS Trust Bank USB acquires Comerica Corp. Trust business State Street acquires IFS BNY acquires JPM Trust business BNY acquires Mellon BoA acquires U.S. Trust State Street acquires IBT
Slide 13: Our Position
Our Position Scale efficiencies in a market with few players and high barriers to entry Focus on micro-segments where we can add value Service quality and reputation Advantage of U.S. Bank ownership Customer base Product set Sales force Funding advantage Corporate Trust rankings source: Thomson Reut
Slide 14: Our Strategy: Delivering One U.S. Bank
Our Strategy: Delivering One U.S. Bank Wealth Management & Securities Services Wholesale Banking Payment Services Consumer & Small Business Banking one U.S. Bank We put our customers at the center of everything we do, and we work together across business lines to build deeper, more profitable relati
Slide 15: Our Strategy: Delivering One U.S. Bank Case 1: Registered Investment Advisor
Our Strategy: Delivering One U.S. Bank Case 1: Registered Investment Advisor 12x revenue growth New funds and portfolios launch IT&C selected to custody portfolios Fund Services administers a fund $ in millions Wealth Management provides loans to private clients
Slide 16: Our Strategy: Delivering One U.S. Bank Case 2: Global Asset Manager
Our Strategy: Delivering One U.S. Bank Case 2: Global Asset Manager 30x revenue growth Custody for private funds Corporate Trust inherits relationship via acquisition $ in millions Wholesale provides credit to parent company Credit to client- managed BDC
Slide 17: Our Strategy: Leveraging Technology & Innovation
Our Strategy: Leveraging Technology & Innovation Ingest documents Digitize document text Parse data Upload for processing Monitor system health Deploy for tech process automation (DevOps) Streamline doc review Replace human action Utilize “bots” to move data and execute user processes in systems OCR
Slide 18: Our Strategy: Leveraging Technology & Innovation (Pivot)
Our Strategy: Leveraging Technology & Innovation Smart analytics and trade processing make client interactions more efficient and secure Pivot: The Future Is Now CLIENTS Institutional clients use Pivot to replace existing platforms and processes. Trading capabilities available today can cut 30 minut
Slide 19: Our Strategy: Optimizing Our Client Approach
Our Strategy: Optimizing Our Client Approach Targeting segments where we can add value Corporate Trust Fund Services Custody Corporate, munis, structured, credit managers U.S.-based complex boutiques Mid-market clients Our sweet spot The business
Slide 20: Our Strategy: Optimizing the Economics
Our Strategy: Optimizing the Economics Holding Company Moody’s S&P Fitch DBRS Rating Outlook Rating Outlook Rating Outlook Rating Outlook U.S. Bancorp A1 s A+ s AA s AA s Bank of New York Mellon Corp. A1 s A s AA- s AAL s State Street Corp. A1 s A s AA- s AAL s Northern Trust Corp. A2 s A+ s AA- s A
Slide 21: Bringing it All Together
Bringing it All Together Technology & innovation Optimization Increased revenue Greater efficiency Higher profits Higher returns We are well-positioned in an attractive industry, and we are committed to a strategy that will deliver improving returns.
Slide 22: Appendix
endix p p A q
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures (1) Utilizes a tax rate of 35 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures
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