26 slides from U.s. Bancorp's earnings presentation, Apr 20, 2016
Slide 1: U.S. Bancorp 1Q16 Earnings Conference Call
Exhibit 99.2 U.S. Bancorp 1Q16 Earnings Conference Call Richard K. Davis Chairman and CEO Kathy Rogers Vice Chairman and CFO April 20, 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: This presentation contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including st
Slide 3: 1Q16 Highlights
1Q16 Highlights • Net income of $1.4 billion; $0.76 per diluted common share. • Average loans grew 2.2% vs. 4Q15 (1.6% excluding the Fidelity card portfolio acquisition) and 5.8% vs 1Q15 (5.2% excluding the Fidelity card portfolio acquisition). • Average deposits grew 0.5% vs. 4Q15 and 6.3% vs. 1Q15
Slide 4: Performance Ratios
Performance Ratios Return on Average Common Equity Efficiency Ratio and and Return on Average Assets Net Interest Margin 20% 3.0% 64% 4.0% 17% 2.5% 60% 3.4% 3.08% 3.03% 3.04% 3.06% 3.06% 14.1% 14.3% 14.1% 13.7% 14% 13.0% 2.0% 56% 54.6% 2.8% 54.3% 53.9% 53.9% 53.2% 1.44% 1.46% 1.44% 1.41% 11% 1.32% 1
Slide 5: Revenue Growth
Revenue Growth $ in millions Year-Over-Year Change 1.9% (2.8%) 3.1% 0.8% 2.7% 5,500 $5,211 $5,147 $5,042 $5,037 5,000 $4,906 4,500 4,000 3,500 1Q15 2Q15 3Q15 4Q15 1Q16 Notable items: 3Q15 Visa gain $135 million, student loan market value adjustment ($58) million Taxable-equivalent basis U.S. BANCORP
Slide 6: Loan and Deposit Growth
Loan and Deposit Growth $ in billions Year-Over-Year Growth Average Balances 320 6.9% 6.3% 6.9% $294.5 $295.9 8.9% $289.7 290 8.1% $285.7 5.2% $278.5 adjusted* 3.8% 4.0% adjusted* adjusted* 5.8% 4.2% $262.3 260 5.1% 2.7% $256.7 2.5% $248.0 $250.5 $246.6 230 200 1Q15 2Q15 3Q15 4Q15 1Q16 Loans Deposit
Slide 7: Credit Quality
Credit Quality $ in millions Net Charge-offs Nonperforming Assets 520 3.00% 2,800 3.00% 390 2.25% 2,100 2.25% $315 $1,696 $1,719 $296 $305 $292 $1,577 $1,567 $1,523 $279 260 1.50% 1,400 1.50% 0.69% 0.65% 0.63% 0.61% 0.58% 130 0.75% 700 0.75% 0.46% 0.48% 0.46% 0.47% 0.48% 0 0.00% 0 0.00% 1Q15 2Q15 3Q
Slide 8: Energy Credit
Energy Credit Energy % Change % Change All Other % Change% Change 1Q16 4Q15 1Q15 vs. 4Q15 vs. 1Q15 1Q16 4Q15 1Q15 vs. 4Q15 vs. 1Q15 Loans $3,417 $3,183 $3,345 7% 2% $261,105 $257,666 $241,956 1% 8% Commitments 11,931 12,118 12,564 -2% -5% 544,426 536,286 496,328 2% 10% Nonperforming Assets $276 $19
Slide 9: Earnings Summary
Earnings Summary $ and shares in millions, except per-share data % B/(W) 1Q16 4Q15 1Q15 vs 4Q15 vs 1Q15 Net Interest Income $ 2,888 $ 2,871 $ 2,752 0.6 4.9 Noninterest Income 2,149 2,340 2,154 (8.2) (0.2) Net Revenue 5,037 5,211 4,906 (3.3) 2.7 Noninterest Expense 2,749 2,809 2,665 2.1 (3.2) Operati
Slide 10: Net Interest Income
Net Interest Income Net Interest Income Key Points $ in millions Year-Over-Year Change vs. 1Q15 1.7% 0.9% 2.7% 2.6% 4.9% • Average earning assets grew $17.4 billion, or 4.8% 4,000 8.0% • Net interest margin lower 2 bps (3.06% vs. 3.08%) Higher rates offset by a continued shift in loan portfolio mix,
Slide 11: Noninterest Income
Noninterest Income Noninterest Income Key Points $ in millions vs. 1Q15 Year-Over-Year Change • Noninterest income decreased $5 million, or 0.2% 2.2% (7.0%) 3.7% (1.3%) (0.2%) Higher credit and debit card revenue (10.4% increase) due to higher transaction volumes including acquired portfolios and hi
Slide 12: Noninterest Expense
Noninterest Expense Noninterest Expense Key Points $ in millions vs. 1Q15 Year-Over-Year Change • Noninterest expense increased $84 million, or 3.2% 4.8% (2.6%) 6.2% 0.2% 3.2% Higher compensation (5.9% increase) reflecting the impact of merit 3,200 increases and one additional day in the quarter $2,
Slide 13: Capital Position
Capital Position $ in billions 1Q16 4Q15 3Q15 2Q15 1Q15 Total U.S. Bancorp shareholders' equity 46.7 $ 46.1 $ 45.1 $ 44.5 $ 44.3 Standardized Approach Basel III transitional standardized approach Common equity tier 1 capital ratio 9.5% 9.6% 9.6% 9.5% 9.6% Tier 1 capital ratio 11.1% 11.3% 11.1% 11.0%
Slide 14: Appendix
Appendix U.S. BANCORP 14 |
Slide 15: Average Loans
Average Loans Average Loans Key Points $ in billions Year-Over-Year Growth vs. 1Q15 5.1% 2.5% 2.7% 4.2% 5.8% • Average total loans increased by $14.3 billion, 5.2%* 280 4.0%* 3.8%* or 5.8% (5.2% growth excluding the Fidelity $256.7 $262.3 $248.0 $246.6 $250.5 portfolio acquisition at end of 4Q15) (1
Slide 16: Average Deposits
Average Deposits Average Deposits Key Points $ in billions Year-Over-Year Growth vs. 1Q15 8.1% 8.9% 6.9% 6.9% 6.3% • Average total deposits increased by 320 $295.9 $17.4 billion, or 6.3% $289.7 $294.5 $278.5 $285.7 • Average low-cost deposits (NIB, interest 9.0% 5.4% 240 5.2% 7.7% 9.2% checking, mon
Slide 17: Credit Quality – Commercial Loans
Credit Quality – Commercial Loans $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 100,000 2.0% 1Q15 4Q15 1Q16 $89,820 $84,704 $86,803 Average Loans $81,508 $86,803 $89,820 $81,508 $83,253 30-89 Delinquencies 0.23% 0.36% 0.21% 75,000 1.5% 90+ Delinquencies 0.05% 0.05% 0.05% Nonp
Slide 18: Credit Quality – Commercial Real Estate
Credit Quality – Commercial Real Estate $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 60,000 1.5% 1Q15 4Q15 1Q16 Average Loans $42,671 $42,231 $42,401 $42,671 $42,446 $42,316 $42,231 $42,401 30-89 Delinquencies 0.24% 0.21% 0.19% 40,000 1.0% 90+ Delinquencies 0.07% 0.03% 0.04%
Slide 19: Credit Quality – Residential Mortgage
Credit Quality – Residential Mortgage $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 60,000 2.0% 1Q15 4Q15 1Q16 $52,970 $54,208 $51,426 $51,114 $51,831 Average Loans $51,426 $52,970 $54,208 30-89 Delinquencies 0.38% 0.32% 0.24% 45,000 1.5% 90+ Delinquencies 0.33% 0.33% 0.31% N
Slide 20: Credit Quality – Credit Card
Credit Quality – Credit Card $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 24,000 12.0% 1Q15 4Q15 1Q16 $20,244 Average Loans $17,823 $18,838 $20,244 $18,838 $17,823 $17,613 $17,944 30-89 Delinquencies 1.16% 1.15% 1.09% 18,000 9.0% 90+ Delinquencies 1.19% 1.09% 1.10% Nonperfor
Slide 21: Credit Quality – Home Equity
Credit Quality – Home Equity $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 20,000 4.0% 1Q15 4Q15 1Q16 Average Loans $15,897 $16,241 $16,368 $15,897 $15,958 $16,083 $16,241 $16,368 30-89 Delinquencies 0.41% 0.36% 0.39% 15,000 3.0% 90+ Delinquencies 0.25% 0.25% 0.26% Nonperform
Slide 22: Credit Quality – Retail Leasing
Credit Quality – Retail Leasing $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 8,000 0.8% 1Q15 4Q15 1Q16 Average Loans $5,819 $5,265 $5,179 $5,819 $5,696 30-89 Delinquencies 0.12% 0.21% 0.17% 6,000 $5,480 $5,265 0.6% $5,179 90+ Delinquencies 0.00% 0.02% 0.02% Nonperforming Loa
Slide 23: Credit Quality – Other Retail
Credit Quality – Other Retail $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 40,000 2.0% 1Q15 4Q15 1Q16 Average Loans $27,604 $29,556 $29,550 $29,556 $29,550 30-89 Delinquencies 0.44% 0.52% 0.42% 30,000 $27,604 $27,286 1.5% $25,415 90+ Delinquencies 0.11% 0.11% 0.10% Nonperfor
Slide 24: Credit Quality – Auto Loans
Credit Quality – Auto Loans $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 20,000 2.0% 1Q15 4Q15 1Q16 $16,551 $16,623 Average Loans $15,013 $16,551 $16,623 $16,220 $15,609 30-89 Delinquencies 0.30% 0.51% 0.39% $15,013 15,000 1.5% 90+ Delinquencies 0.01% 0.04% 0.02% Nonperformi
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures March 31, December 31, September 30, June 30, March 31, (Dollars in Millions, Unaudited) 2016 2015 2015 2015 2015 Total equity $47,393 $46,817 $45,767 $45,231 $44,965 Preferred stock (5,501) (5,501) (4,756) (4,756) (4,756) Noncontrolling interests (638) (686) (692) (694)
Slide 26: U.S. Bancorp 1Q16 Earnings Conference Call
U.S. Bancorp 1Q16 Earnings Conference Call April 20, 2016