U.s. Bancorp · NYSE:USB
U.s. Bancorp — Citi 2013 Financial Services Conference
28 slides from U.s. Bancorp's conference presentation, Mar 5, 2013
Slide 1: Citi 2013 Financial Services Conference
Citi 2013 Financial Services Conference Richard K. Davis Chairman, President and CEO March 5, 2013
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: U.S. Bancorp Overview, Capital Management, Business Lines, 1Q13 Update, Summary
U.S. Bancorp Overview Capital Management Business Lines 1Q13 Update Summary
Slide 4: U.S. Bancorp Businesses
U.S. Bancorp Businesses * As of March 1, 2013 Asset Size $354 billion Deposits $249 billion Loans $223 billion Customers 17.6 million NYSE Traded USB Market Capitalization* $63 billion Founded 1863 Bank Branches 3,084 ATMs 5,065 4Q12 Dimensions Overview
Slide 5: Diversification
Diversification 2012 full year, taxable-equivalent basis Excluding securities gains (losses) net Revenue Mix By Business Line (CHART) Consumer and Small Business Banking 47% Payment Services 26% Wealth Mgmt and Securities Services 8% Wholesale Banking and Commercial Real Estate 19% Fee Income / Tota
Slide 6: 2012 Results
2012 Results Net Income ($ in millions) $5,647 $4,872 + 15.9% Diluted EPS $2.84 $2.46 + 15.4% Return on Avg Assets 1.65% 1.53% Return on Avg Common Equity 16.2% 15.8% Record-setting net income of $5.6 billion and net revenue of $20.3 billion Positive operating leverage Average deposit growth of 10.6
Slide 7: Performance vs. Peers
Performance vs. Peers Source: SNL and company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Return on Average Assets Return on Average Common Equity Efficiency Ratio Since 1Q08 Full Year 2012 (CHART) (CHART) (CHART) (CHART) (CHART) (CHART) Overview
Slide 8: Revenue Growth
Revenue Growth * Gain on merchant processing agreement settlement $ in millions, taxable-equivalent basis (CHART) (CHART) Prior 5 Years Year-Over-Year Growth 4.4% 13.6% 8.9% 5.3% 6.2% Prior 5 Quarters Year-Over-Year Growth 8.1% 9.1% 8.1% 8.0% 0.2% USB Record Revenue 2012 5.6% excluding merchant sett
Slide 9: Loan and Deposit Growth
Loan and Deposit Growth $ in billions (CHART) (CHART) 6% 12% 8% 6% 9% 6% 11% 11% 17% 4% 4% 11% 13% 12% 10% 15% 7% 12% 24% Loans Deposits Prior 5 Years Average Balances Year-Over-Year Growth Prior 5 Quarters Average Balances Year-Over-Year Growth 7% Overview
Slide 10: Credit Quality
Credit Quality * Excluding Covered Assets (assets subject to loss sharing agreements with FDIC) ** Related to a regulatory clarification in the treatment of residential mortgage and other consumer loans to borrowers who have exited bankruptcy but continue to make payments on their loans *** Excludin
Slide 11: Acquisitions
Acquisitions Payments FSV Payment Systems TransCard's heavy truck fuel card network 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 pr
Slide 12: Growing Market Share
Growing Market Share Middle Market Loan 19th 6th Bookrunner Investment Grade Loan 11th 5th Bookrunner Investment Grade Bond NA 8th Lead / Co-lead Source: Thomson Reuters based on number of issues 2012 2007 USB Market Rank Market Share Change Core Deposits 2.0% 2.6% Consumer Loans 1.8% 3.2% Mortgage
Slide 13: U.S. Bancorp Overview, Capital Management, Business Lines, 1Q13 Update, Summary
U.S. Bancorp Overview Capital Management Business Lines 1Q13 Update Summary
Slide 14: Capital Position
Capital Position $ in billions * Approximated using proposed rules for Basel III standardized approach released June 2012 (CHART) TARP Equity Tier 1 Capital Tier 1 Capital Ratio Tier 1 Common Ratio 4Q12 Tier 1 Common Ratio Basel III: 8.1%* Capital Management
Slide 15: Capital Management
Capital Management Returned 62% of earnings to shareholders in 2012 Annual dividend $0.78 per share Repurchased 59 million shares during 2012 Reinvest and Acquisitions Dividends Share Repurchases 20 - 40% Targets: 30 - 40% 30 - 40% 38% 2012 Actual: 35% 27% Earnings Distribution Capital Management
Slide 16: CCAR Process
CCAR Process 1/7/13 - Capital plans were due 3/7/13 - Dodd-Frank Act Stress Test results will be released Assumes no changes to current dividend levels and no common stock repurchases Will include data such as capital ratios, revenue, and loss estimates under the severely adverse scenario Banks requ
Slide 17: U.S. Bancorp Overview, Capital Management, Business Lines, 1Q13 Update, Summary
U.S. Bancorp Overview Capital Management Business Lines 1Q13 Update Summary
Slide 18: Wholesale Banking and Commercial Real Estate
Wholesale Banking and Commercial Real Estate Business Line Summary Significantly expanded Wholesale Banking over the past five years by investing in new offices, technology platforms, talented staff and products including: Expanded loan capital markets and derivatives, enhanced foreign exchange capa
Slide 19: Consumer and Small Business Banking
Consumer and Small Business Banking Source: SNL and Inside Mortgage Finance (mortgage origination data as of 3Q12) (CHART) Business Line Summary Differentiating U.S. Bank from competitors through continued improvement in the client experience, investments in innovative products and deeper customer r
Slide 20: Wealth Management and Securities Services
Wealth Management and Securities Services Source: Securities Data Corp based on number of issues (CHART) Business Line Summary Provides full array of wealth management services through service delivery models tailored to meet the needs of clients efficiently and effectively Newly created Ascent Priv
Slide 21: Payment Services
Payment Services Source: Nilson (Visa and MasterCard issuers) (CHART) Business Line Summary Provides a full suite of payment processing services to consumers, small business, corporations and merchants - a unique position versus other banks Expanding internationally in merchant acquiring through con
Slide 22: U.S. Bancorp Overview, Capital Management, Business Lines, 1Q13 Update, Summary
U.S. Bancorp Overview Capital Management Business Lines 1Q13 Update Summary
Slide 23: 1Q13 Update
1Q13 Update Business Climate Mortgage Activity Loan Growth Net Interest Margin 1Q13 Update
Slide 24: U.S. Bancorp Overview, Capital Management, Business Lines, 1Q13 Update, Summary
U.S. Bancorp Overview Capital Management Business Lines 1Q13 Update Summary
Slide 25: Summary
Summary Long-term Goals Optimal business line mix Investments generating positive returns Profitability: ROE 16-19% ROA 1.60-1.90% Efficiency Ratio low 50s Capital distributions: Earnings distribution 60-80% Current Status Four simple and stable business lines Mortgage, wealth management, corporate
Slide 26: Appendix
Appendix Citi 2013 Financial Services Conference
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Appendix
Slide 28: Citi 2013 Financial Services Conference
Citi 2013 Financial Services Conference
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