U.s. Bancorp · NYSE:USB
U.s. Bancorp — Citi 2012 Financial Services Conference
25 slides from U.s. Bancorp's conference presentation, Mar 8, 2012
Slide 1: Citi 2012 Financial Services Conference
Citi 2012 Financial Services Conference Richard K. Davis Chairman, President and CEO March 8, 2012
Slide 2: Forward-Looking Statements
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 statements about beliefs and expectations, are forward-l
Slide 3: The Momentum Continues
U.S. Bancorp The Momentum Continues Forward Focus Current Initiatives Long-term Growth Drivers
Slide 4: Momentum Continues: 2011 Annual Report
continues Momentum U.S. Bancorp 2011 Annual Report
Slide 5: Year End 2011 Dimensions
Year End 2011 Dimensions * As of March 2, 2012 Momentum Continues U.S. Bancorp Businesses Asset Size $340 billion Deposits $231 billion Loans $210 billion Customers 17 million NYSE Traded USB Market Capitalization* $56 billion Founded 1863 Bank Branches 3,085 ATMs 5,053
Slide 6: Diversification: Revenue Mix by Business Line
2011 full year, taxable-equivalent basis Excluding securities gains (losses) net Consumer Wholesale PCTAM Payments Treas & Corp Support Revenue 44 20 8 28 0 2007 2008 2009 2010 2011 Fee Income 0.52 0.5 0.49 0.46 0.46 Core 0 0 0 0 0 Revenue Mix By Business Line Fee Income / Total Revenue Consumer and
Slide 7: 2011 Results
Full Year Full Year 2011 2010 % Change Net Income ($ in millions) $4,872 $3,317 + 46.9% Diluted EPS $2.46 $1.73 + 42.2% Return on Avg Assets 1.53% 1.16% Return on Avg Common Equity 15.8% 12.7% 2011 Results Momentum Continues Record-setting net revenue of $19.1 billion Provision for credit losses dec
Slide 8: Return on Assets, Equity and Efficiency vs. Peers
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 0.0119 0.0103 0.0099 0.0074 0.0066 0.0015 0.0011 0.0001 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROCE 0.129 0.1
Slide 9: Revenue Growth
$ in millions, taxable-equivalent basis 4Q10 1Q11 2Q11 3Q11 4Q11 Reported 4721 4519 4690 4795 5104 2007 2008 2009 2010 2011 Reported 14060 14677 16668 18148 19108 Prior 5 Quarters Year-Over-Year Growth 7.9% 4.6% 3.8% 4.5% 8.1% Prior 5 Years Year-Over-Year Growth 2.3% 4.4% 13.6% 8.9% 5.3% Revenue Gro
Slide 10: Revenue Growth vs. Peers
Source: company reports USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Reported 0.053 -0.011 -0.049 -0.051 -0.052 -0.054 -0.054 -0.069 -0.087 -0.152 Full Year 2011 vs. 2010 Revenue Growth vs. Peers Momentum Continues
Slide 11: Loan and Deposit Growth
$ in billions 4Q10 1Q11 2Q11 3Q11 4Q11 Loans 195.5 197.6 198.8 202.2 207 Deposits 190.3 204.3 209.4 215.4 223.3 2007 2008 2009 2010 2011 Loans 154 185 195 197 210 Deposits 131 159 183 204 231 6% $207 2% $195 2% $198 4% $199 5% $202 17% $223 5% $190 12% $204 14% $209 18% $215 1% $197 7% $210 7% $154
Slide 12: Loan and Deposit Growth vs. Peers
Average balances Source: company reports USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Loan Growth 0.044 0.021 0.019 0.013 -0.011 -0.014 -0.017 -0.021 -0.069 -0.099 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Deposit Growth 0.154 0.149 0.066 0.052 0.048 0.
Slide 13: Change in Net Charge-offs and Nonperforming Assets
$ in millions, linked quarter change * Excluding Covered Assets (assets subject to loss sharing agreements with FDIC), 1Q11 change in NPAs excludes FCB acquisition ($287 million) 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 NPA $ Change 76 49 155 290 357
Slide 14: Capital Position
$ in billions 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 TARP 0 0 0 0 24.4 25.3 0 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 0.108 Tier 1 Common Ratio 0.056 0.057 0.
Slide 15: Managing Capital Effectively
Reinvest Acquisitions Dividends Share Repurchases 20 - 40% Targets: 30 - 40% 30 - 40% Investment criteria: Strategic fit Return > cost of capital (10-11%) 2003 2004 2005 2006 2007 2008 2009 2010 2011 Dividends 0.44 0.46 0.5 0.53 0.66 1.06 0.21 0.12 0.2 Share Repurchase 0.11 0.63 0.4 0.59 0.45 0.02 0
Slide 16: Acquisitions
Payments Financial institutions credit card portfolio of FIA Card Services Merchant processing portfolio of Santander-Mexico Merchant processing portfolio of Citizens National Bank Credit card portfolios from Citi Merchant processing portfolio of MB Financial Bank Credit card portfolio of Town North
Slide 17: Market Rank and Market Share
Middle Market Loan 19th 7th Bookrunner Investment Grade Loan 11th 6th Bookrunner Investment Grade Bond NA 10th Lead / Co-lead Source: Thomson Reuters based on number of issues 2011 2007 USB Market Rank Market Share Change Core Deposits 2.0% 2.7% Consumer Loans 1.8% 3.0% Mortgage Origination 0.7% 3.8
Slide 18: Total Shareholder Return 2011
Source: FactSet & Bloomberg USB S&P 500 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 KBW Bank Index Peer 7 Peer 8 Peer 9 TSR 0.023 0.021 -0.019 -0.031 -0.095 -0.113 -0.119 -0.2 -0.232 -0.381 -0.396 -0.581 Total Shareholder Return 2011 Momentum Continues
Slide 19: Forward Focus
U.S. Bancorp The Momentum Continues Forward Focus Current Initiatives Long-term Growth Drivers
Slide 20: Current Initiatives
Current Initiatives Forward Focus Distinctive Customer Experience International Expansion - Merchant Processing Ascent Private Capital Management Wholesale Banking - Continued Expansion Mobile Banking Innovation
Slide 21: Long-term Growth Drivers
Long-term Growth Drivers Forward Focus Return on recent and on-going investments in technology, corporate banking, wealth management, corporate trust, payments and M&A Positive leverage to economic recovery, particularly payments and trust Market share gains, including growth in loans and deposits a
Slide 22: Long-term Growth Expectations
Net 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% Long-term Growth Drivers Forward Focus Long-term Growth Expectations
Slide 23: Momentum Continues
Momentum continues Vy y Allof us serving your usbancorp
Slide 24: Appendix
Appendix TSbancorp
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Appendix
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