U.s. Bancorp · NYSE:USB
U.s. Bancorp — Goldman Sachs U.S. Financial Services Conference 2017
18 slides from U.s. Bancorp's conference presentation, Dec 5, 2017
Slide 1: Goldman Sachs U.S. Financial Services Conference 2017
Goldman Sachs U.S. Financial Services Conference 2017 Andy Cecere President, CEO Terry Dolan Vice Chairman, CFO December 5, 2017 U.S. BANCORP
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 NYSE Traded USB Assets $459B Founded 1863 Deposits $343B Market Value $91B Loans $279B As of 9/30/17, except market value as of 10/24/17 U.S. BANCORP | 3
Slide 4: Our Position in the Industry
Our Position in the Industry 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 $2,563 1 J.P. Morgan $1,439 1 J.P. Morgan $355 2 Bank of America 2,284 2 Wells Fargo 1,307 2 Bank of America 292 3 Wells Fargo 1,935
Slide 5: Our Businesses
Our Businesses Consumer & Payment Small Business Services Banking 30% 39% Wealth Management Wholesale Banking & Securities Services 18% 13% CSBB: Payments: Branch banking, small business Retail Payment Solutions, banking, consumer lending, mortgage Global Merchant Acquiring and banking and omnichann
Slide 6: Our Financial Performance
Our Financial Performance Return on Average Return on Efficiency 13.4% Common Equity Average Assets Ratio* 1.37% 1.18% 64.6%65.2% 10.9%10.8% 1.12%1.10% 61.8%62.0%62.2%62.4%62.9% 60.0% 10.2% 1.06%1.05% 57.3% 9.7% 55.0% 1.00%1.00%1.00% 8.8% 8.7% 0.93% 8.0% 7.8% 7.4% USB Peer Peer Peer Peer Peer Peer P
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 U.S. BANCORP | 7
Slide 8: Our Approach to Technology and Innovation
Our Approach to Technology and Innovation We are investing in technology and innovation that will enhance the customer experience, create value and drive growth. Improve the Create value Drive growth customer experience for the customer for the bank U.S. BANCORP | 8
Slide 9: Innovation Across Our Businesses
Innovation Across Our Businesses Big Data and analytics The foundational capabilities that span Artificial intelligence and machine learning each of our businesses: Fintech engagement APIs and developer portals Consumer & Small Business Banking Payment Services Omnichannel delivery Real-time payment
Slide 10: The Evolution of Digital Payments
The Evolution of Digital Payments Digitization is re-shaping the banking industry, and there is significant opportunity in the digital payments space. In the U.S. alone, the B2B payments market represents an estimated $12 trillion 51% of those payments are still made by check Sources: Deloitte, 2016
Slide 11: Digital Payments: P2P
Digital Payments: P2P Digital payments adoption and usage continue to grow at a steady pace. USB’s total # of Zelle transactions up 104% in four months # of USB customers enrolled in Zelle up 50% in four months Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Receive transaction
Slide 12: Digital Payments: B2B
Digital Payments: B2B The B2B payments market is large and growing, representing revenue opportunities for players in this space. Delivering innovative payment solutions that best serve our clients: 80% of companies Virtual Pay plan to transition • Real-time payments; 24/7 to electronic payments • F
Slide 13: Digital Payments: B2B
Digital Payments: B2B The Clearing House® launch of RTP®, its real-time payments system, begins the next leg of the digital payments journey. RTP: • Features rich data capabilities • Lowers processing costs • Adds value for both the sender and receiver • Will enable future product development * Data
Slide 14: Wrap-up
Wrap-up • The way banking is delivered is fundamentally changing, led by the digital revolution and real-time payments • We are investing in those technologies and innovations that lay the foundation for the long-term • Data-rich payment streams offer opportunities to add value, enhance the customer
Slide 15: 4Q17 Guidance
4Q17 Guidance • Loan growth • Net interest margin • Fee income • Expenses • Credit quality U.S. BANCORP | 15
Slide 16: Appendix
Appendix = U.S. BANCORP | 16
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures (Dollars in Millions, Unaudited) Nine months ended September 30, 2017 Net interest income $9,097 Taxable-equivalent adjustment (1) 152 Net interest income, on a taxable-equivalent basis 9,249 Net interest income, on a taxable-equivalent basis (as calculated above) 9,249 N
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures ($ in millions) Net Revenue Line of Business Financial Performance 3Q17 YTD Wholesale Banking and Commercial Real Estate $ 2,500 Consumer and Small Business Banking 5,626 Wealth Management and Securities Services 1,780 Payment Services 4,339 Treasury and Corporate Support
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