U.s. Bancorp · NYSE:USB
U.s. Bancorp — BancAnalysts Association of Boston Conference 2011
31 slides from U.s. Bancorp's conference presentation, Nov 4, 2011
Slide 1: Andy Cecere, Vice Chairman and CFO – BancAnalysts Association of Boston Conference
Andy CecereVice Chairman and CFONovember 4, 2011 BancAnalysts Association of Boston Conference
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: Overview, Performance, Capital Management, Positioned to Win
U.S. Bancorp OverviewPerformanceCapital ManagementPositioned to Win
Slide 4: U.S. Bancorp Businesses
U.S. Bancorp Businesses 3Q11 Dimensions Asset Size $330 billionDeposits $223 billionLoans $205 billionCustomers 17 millionNYSE Traded USBMarket Capitalization* $50 billionFounded 1863Bank Branches 3,089ATMs 5,092 * As of October 28, 2011 Overview
Slide 5: Diversified Business Model
Consumer Wholesale PCTAM Payments Treas & Corp Support Revenue 44 20 8 28 0 Diversified Business Model 3Q11 YTD, taxable-equivalent basisExcluding securities gains (losses) net Revenue MixBy Business Line Fee Income /Total Revenue Consumer andSmall Business Banking44% Payment Services28% Wealth Mgmt
Slide 6: Performance
U.S. Bancorp OverviewPerformanceCapital ManagementPositioned to Win
Slide 7: Loan and Deposit Growth
3Q10 4Q10 1Q11 2Q11 3Q11 Loans 192.5 195.5 197.6 198.8 202.2 Deposits 182.7 190.3 204.3 209.4 215.4 Loan and Deposit Growth Average BalancesYear-Over-Year Growth 3Q11 Acquisition AdjustedLoan Growth = 4.5%Deposit Growth = 13.2% 2.4%$197.6 4.0%$198.8 5.0%$202.2 5.8%$192.5 2.0%$195.5 11.9%$204.3 14.2%
Slide 8: Loan Growth vs. Peers
Loan Growth vs. Peers Average balances; USB loan growth above adjusted for FCB acquisitionUSB reported loan growth 3Q11 vs. 2Q11 = 1.7%, 3Q11 vs. 3Q10 = 5.0%Source: company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8
Slide 9: Loan and Deposit Growth vs. Peers
2007 Noninterest Bearing 33334 Savings 58298 Time 39813 Loan and Deposit Growth vs. Peers 3Q11 Noninterest Bearning 64228 Savings 115163 Time 43241 3Q11 Commercial 53832 Commercial Real Estate 35603 Residential Mortgage and Home Equity 53534 Credit Card 16332 Other Retail 30069 Covered 15398 2007 Co
Slide 10: Revenue Growth
Revenue Growth Total RevenueYear-Over-Year Growth 7.9% 7.9% 4.6% 3.8% 4.5% 3Q10 4Q10 1Q11 2Q11 3Q11 Reported 4587 4721 4519 4690 4795 Performance NII Pay DSC Trust Mtg Comml Other East 55 17 9 5 5 4.5 4.5 Fee Income45% Net InterestIncome55% Service Charges Trust & Inv Mgmt Mortgage Comm'l Products A
Slide 11: Pre-provision Income Growth
3Q10 4Q10 1Q11 2Q11 3Q11 Reported 2211 2147 2164 2273 2328 Adjusted 0 103 46 0 0 Pre-provision Income Growth 2011 Consumer 34 Wholesale 27 Wealth Management 5 Payments 35 2007 Consumer 40 Wholesale 22 Wealth Management 13 Payments 25 Pre-provision Income3Q07 YTD$5.6 billion Pre-provision Income3Q11
Slide 12: Performance Ratios
Performance Ratios 3Q10 4Q10 1Q11 2Q11 3Q11 Return on Avg Common Equity 0.128 0.137 0.145 0.159 0.161 Return on Avg Common Equity 0.128 0.137 0.145 0.159 0.161 Return on Avg Assets 0.0126 0.0131 0.0138 0.0154 0.0157 3Q10 4Q10 1Q11 2Q11 3Q11 Efficiency Ratio 0.519 0.525 0.511 0.516 0.515 Net Interest
Slide 13: Performance Metrics vs. Peers
Performance Metrics vs. Peers Performance Source: SNL and company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROA 0.0116 0.0106 0.0097 0.0073 0.0066 0.0009 0.0008 0 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer
Slide 14: Credit Quality
Credit Quality 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 NPA $ Change 76 49 155 290 357 489 727 626 386 184 91 -261 -171 -212 -159 -217 -226 NPA % Change 0.13 0.08 0.22 0.34 0.31 0.33 0.37 0.23 0.12 0.05 0.02 -0.07 -0.05 -0.06 -0.05 -0.06 -0.07 3Q07 4Q07 1Q
Slide 15: Credit Quality vs. Peers
Credit Quality vs. Peers Source: company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFCNPA ratio equals nonperforming assets as a % of the sum of gross loans and foreclosed assetsUSB NPA ratio excludes Covered Assets (subject to loss sharing agreements with FDIC) 3Q09 4Q09 3Q10
Slide 16: Capital Position
Capital Position 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 TARP 0 0 0 0 24.4 25.3 0 0 0 0 0 0 0 0 0 0 Tier 1 Capital Ratio 0.083 0.086 0.085 0.085 0.106 0.109 0.094 0.095 0.096 0.099 0.101 0.103 0.105 0.108 0.11 0.108 Tier 1 Common Ratio 0.056 0.057 0.056 0.057
Slide 17: Capital Management
U.S. Bancorp OverviewPerformanceCapital ManagementPositioned to Win
Slide 18: Capital Management
Capital Management CapitalManagement Strong capital generation and historically high payout ratioGoal to resume normal capital management Reinvest Acquisitions Dividends ShareRepurchases 20 - 40% Targets: Investment criteria:Strategic fitReturn > cost of capital (10-11%)
Slide 19: Investing in Organic Growth
Investing in Organic Growth Technology InvestmentsTier 4 Data CenterBranch Hardware and SoftwareInternet ChannelHome Mtg Origination PlatformMobile Banking ChannelCall Center TelephonyDistribution Channel Integration 2005 2006 2007 2008 2009 2010 2011 Fcst CapX 301 540 484 519 772 856 650 Capital Ex
Slide 20: Investing in Acquisitions
Investing in Acquisitions PaymentsMerchant processing portfolio of Santander-MexicoMerchant processing portfolio of Citizens National Bank Credit card portfolios from CitiMerchant processing portfolio of MB Financial BankCredit card portfolio of Town North BankSouthern DataCommAIMS LogisticsNumerous
Slide 21: Capital Management
Capital Management Strong capital generation and historically high payout ratioGoal to resume normal capital management Reinvest Acquisitions Dividends ShareRepurchases 20 - 40% Targets: 30 - 40% 30 - 40% Investment criteria:Strategic fitReturn > cost of capital (10-11%) 2003 2004 2005 2006 2007 200
Slide 22: Positioned to Win
U.S. Bancorp OverviewPerformanceCapital ManagementPositioned to Win
Slide 23: Investing in Innovation
Investing in Innovation Best-in-Class Rewards Best Online Customer Experience Environmental Sustainability Prepaid Card Innovation Mobile Merchant Acquiring VITAband Desktop and Mobile Remote Check Deposit Positionedto Win
Slide 24: Growing Market Share
Positionedto Win Growing Market Share Middle Market Loan 19th 6th Book RunnerInvestment Grade Loan 11th 5th Book RunnerInvestment Grade Bond NA 13th Lead / Co-leadSource: Thomson Reuters, middle market comprised of North Central and West regions 2010 2007 USB Market Rank MarketShareChange Core Depos
Slide 25: Long-term Growth Drivers
Long-term Growth Drivers Return on recent and on-going investments in technology, corporate banking, wealth management, corporate trust, payments and M&APositive leverage to economic recovery, particularly payments and trustMarket share gains, including growth in loans and deposits as "flight to qua
Slide 26: Long-term Growth Expectations
Long-term Growth Expectations Long-term Growth ExpectationsNet Interest Income 5-7%Noninterest Income 8-10% Total Revenue 7-8%Noninterest Expense 4-5%Provision for Credit Losses 6-8% Net Income 8-9%EPS 8-10% Positionedto Win
Slide 27: Positioned to Win
Positioned to Win Proven performance Building momentum < Positioned Mig (Sbancorp.
Slide 28: Andy Cecere, Vice Chairman and CFO
Andy CecereVice Chairman and CFONovember 4, 2011 BancAnalysts Association of Boston Conference
Slide 29: Appendix
Appendix (Sbancorp.
Slide 30: Non-Regulatory Capital Ratios
Non-Regulatory Capital Ratios Appendix
Slide 31: Andy Cecere, Vice Chairman and CFO
Andy CecereVice Chairman and CFONovember 4, 2011 BancAnalysts Association of Boston Conference
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