U.s. Bancorp · NYSE:USB
U.s. Bancorp — Barclays Global Financial Services Conference 2020
24 slides from U.s. Bancorp's conference presentation, Sep 15, 2020
Slide 1: Barclays Global Financial Services Conference 2020
Barclays Global Financial Services Conference 2020 September 15, 2020 Andy Cecere Chairman, President and Chief Executive Officer Terry Dolan Vice Chair and Chief Financial Officer Exhibit 99.1
Slide 2: Forward-looking statements
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 statements about beliefs and expectations, are forwar
Slide 3: U.S. Bancorp Overview
U.S. Bancorp Overview NYSE TradedUSB Founded1863 Market Value$55B Branches 2,729 ATMs 4,333 Assets $547B Deposits $413B Loans $310B As of 6/30/20, except market value as of 9/9/20
Slide 4: Our Position in the Industry
Our Position In the Industry Assets Deposits Market Value Source: company reports and Bloomberg Assets and deposits as of 6/30/20; market value as of 9/9/20 Assets Deposits Market Value U.S. U.S. U.S. Rank Company $ in billions Rank Company $ in billions Rank Company $ in billions 1 J.P. Morgan $3,2
Slide 5: Long History of Industry-leading Returns on Equity
Long History of Industry-leading Returns on Equity… Return on Average Equity (5-Year Average)* Source: S&P Global Market Intelligence; Peer banks include: BAC, CFG, FITB, JPM, KEY, PNC, RF, TFC and WFC * 5-Year average ranges from 2015-2019, 10-Year average ranges from 2010-2019, 15-Year average ran
Slide 6: Driven by superior PPNR and credit quality performance
Source: S&P Global Market Intelligence; Peer banks include: BAC, CFG, FITB, JPM, KEY, PNC, RF, TFC and WFC * PPNR defined by S&P Global Market Intelligence as: Net interest income, on a fully tax-equivalent basis, plus fees and other noninterest income minus non-credit-related expenses. Nonrecurring
Slide 7: Underpinning our best-in-class financial results
A differentiated business mix Through-the-cycle underwriting discipline A strong and nimble culture Underpinning our best-in-class financial results:
Slide 8: What differentiates U.S. Bank? Business mix
Business mix Traditional banking combined with differentiated high-return fee businesses Regional, national and international scope Through-the-cycle approach Proactive portfolio management Relationship-based, cash flow lender Culture of innovation Culture of optimization Culture of ‘doing the right
Slide 9: Our differentiated business mix supports consistent growth
Consumer & Business Banking Branch banking, small business banking, consumer lending, mortgage banking and omnichannel delivery Corporate & Commercial Banking Corporate Banking, Commercial Banking and Commercial Real Estate Payment Services Retail Payment Solutions, Global Merchant Acquiring and Cor
Slide 10: Payment Services: industry spend pressures are abating
Merchant Sales Volume Growth YoY**** Spend activity is down YoY but volume trends have improved as some economies have started to re-open CPS Sales Volume Growth YoY**** Payments sales volumes have rebounded since bottoming in April 2020 Travel & hospitality, airline, and travel & entertainment may
Slide 11: U.S. Bank Payments Ecosystem
U.S. Bank Payments Ecosystem Card issuing Merchant processing AR and AP solutions Omni-commerce capabilities Lending Deposits Capital solutions Cash management Investment services Banking services Payments services Opayo, formerly Sage Pay, expands our customer base in the UK and Ireland, particular
Slide 12: We are playing the long game in Mortgage Banking
* Source: Mortgage Bankers Association % Applications through portal 2Q17 2Q20 ~3x Operations Cost Per Loan 2Q17 2Q20 -22 % We are playing the long game in Mortgage Banking Our investments in technology and people – including a re-imagined digital application experience… Market Share* Over 90% of mo
Slide 13: We are a leader in Corporate Trust and Fund Services
We are a leader in Corporate Trust and Fund Services First Citizens Bank Municipal Trustee Mutual fund Servicing of Fiduciary Management Bank of America Securitization Trust AmeriServ Corporate Trustee AIS Fund Admin Union Bank Institutional Trust UMB Bank Indiana Corporate Trust Quintillion (Irelan
Slide 14: What differentiates U.S. Bank? Underwriting
Business mix Traditional banking combined with differentiated high-return fee businesses Regional, national and international scope Through-the-cycle approach Proactive portfolio management Relationship-based, cash flow lender Culture of innovation Culture of optimization Culture of ‘doing the right
Slide 15: Loan portfolio quality and stress test performance
Portfolio 2Q20 Wtd Avg FICO/Bond rating equivalent * 2Q20 Avg LTV * Residential mortgage 768 68% Home equity 791 65% Auto loan 792 98% Auto lease 783 91% Credit card 773 N/A Commercial Baa3/BBB- N/A Commercial real estate Ba1/BB+ 59% Prime-based lender for retail portfolios Investment grade equivale
Slide 16: Payment relief and commercial exposures
Segment Payment Relief ($B) % of Segment Loans Commercial $4.0 3.3% Commercial Real Estate $5.5 13.4% Residential Mortgages*** $6.6 9.2% Credit Cards $0.4 2.0% Other Retail $3.3 5.8% The loan portfolio remains well diversified, with the Retail sector representing the largest segment of commercial ex
Slide 17: What differentiates U.S. Bank? Culture
Business mix Traditional banking combined with differentiated high-return fee businesses Regional, national and international scope Through-the-cycle approach Proactive portfolio management Relationship-based, cash flow lender Culture of innovation Culture of optimization Culture of ‘doing the right
Slide 18: Culture of Innovation: The digital door is always open
05/20 >2x Growth in mobile interactions* The digital door is always open… Increasing interactions and Improving process We are increasing our mobile app DIY capabilities, recognizing the importance of being able to also serve our customers through ‘shared glass’ or ‘do-it-together’ experiences Using
Slide 19: Culture of Optimization: distribution network transformation
Closing branches where appropriate and optimizing square footage Relocating and redesigning branches in our existing markets Selectively entering new markets with a branch-lite physical presence Building alliances with those that share our values to serve customers and communities at greater scale O
Slide 20: Investing in our communities
Investing in our communities Supporting financial inclusion Creating an inclusive workplace We serve the underbanked market through products such as Safe Debit Account and Simple Loan In 2019 we doubled our American Dream loans, which serves lower/middle income (LMI) borrowers, in both applications
Slide 21: Managing for the long-term while delivering near-term results
We are managing for the long-term while delivering near-term results that support a pathway to the future.
Slide 22: 3Q20 Guidance Update
Net interest income Noninterest income Expenses Credit quality Tax rate 3Q20 Guidance Update
Slide 23: Appendix
Appendix =— U.S. BANCORP | 23
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures
US Bancorp \de\ — Barclays Global Financial Services Conference 2020 on 6ix