U.s. Bancorp · NYSE:USB
U.s. Bancorp — Credit Suisse Financial Services Forum 2014
31 slides from U.s. Bancorp's conference presentation, Feb 12, 2014
Slide 1: Credit Suisse Financial Services Forum 2014
Credit Suisse Financial Services Forum 2014 Andy Cecere Vice Chairman and CFO February 12, 2014
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, Customer Data Security, 1Q14 Update, Long-term Goals
U.S. Bancorp Overview Capital Management Customer Data Security 1Q14 Update Long-term Goals
Slide 4: U.S. Bancorp Dimensions
U.S. Bancorp Dimensions * As of February 7, 2014 Asset Size $364 billion Deposits $262 billion Loans $235 billion Customers 17.9 million NYSE Traded USB Market Capitalization* $73 billion Founded 1863 Bank Branches 3,081 ATMs 4,906 4Q13 Dimensions
Slide 5: Revenue Mix By Business Line
Revenue Mix By Business Line (CHART) Consumer and Small Business Banking 44% Payment Services 28% Wealth Mgmt and Securities Services 9% Wholesale Banking and Commercial Real Estate 19% Fee Income / Total Revenue (CHART) Full year 2013, taxable-equivalent basis, excluding securities gains (losses) n
Slide 6: 2013 Results
2013 Results Net Income ($ in millions) $5,836 $5,647 + 3.3% Diluted EPS $3.00 $2.84 + 5.6% Return on Avg Assets 1.65% 1.65% Return on Avg Common Equity 15.8% 16.2% Record net income of $5.8 billion Strong capital: Common equity tier 1 ratio of 8.8% estimated using final rules for the Basel III stan
Slide 7: Industry Leading Returns
Industry Leading Returns Return on Average Assets Return on Average Common Equity Efficiency Ratio Full Year 2013 4Q13 Source: SNL and company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC (CHART) (CHART) (CHART) (CHART) (CHART) (CHART)
Slide 8: High Returns on Capital
High Returns on Capital 2013 Return on Average Tangible Common Equity Source: SNL and company reports Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC (CHART) High return / capital efficient businesses Corporate Trust Merchant Processing Fund Services Treasury Management Corporate Payments
Slide 9: Loan and Deposit Growth
Loan and Deposit Growth $ in billions Loans Deposits Prior 5 Years Average Balances Year-Over-Year Growth Prior 5 Quarters Average Balances Year-Over-Year Growth (CHART) (CHART) 6% 7% 5% 6% 5% 6% 7% 5% 9% 4% 7% 6% 12% 4% 15% 11% 6% 23% 10% 6%
Slide 10: Credit Quality
Credit Quality $ in millions * Excluding Covered Assets (assets subject to loss sharing agreements with FDIC) Net Charge-offs Nonperforming Assets* Net Charge-offs (Left Scale) NCOs to Avg Loans (Right Scale) Nonperforming Assets (Left Scale) NPAs to Loans plus ORE (Right Scale) (CHART) (CHART)
Slide 11: Top of Class Debt Ratings
Debt ratings: holding company as of February 7, 2014 Top of Class Debt Ratings op=outlook positive on=outlook negative s=outlook stable wn=watch negative wp=watch positive Flight to quality Funding advantage On January 27th issued: $1.3 billion of 3-year fixed rate senior bank notes with a 1.10% cou
Slide 12: Acquisitions
Acquisitions Payments Collective Point of Sale Solutions Ltd 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 Credi
Slide 13: Acquisitions - Chicago Branches
Acquisitions - Chicago Branches Acquiring the Chicago branch banking franchise of RBS Citizens (branded as Charter One Bank) Approximately $5.3 billion of deposits, $1.1 billion of loans, 94 branches and 800 employees Doubles Chicago presence and is expected to meet all internal financial hurdles fo
Slide 14: Growing Market Share
Growing Market Share Core Deposits 2.0% 2.6% Consumer Loans 1.8% 3.2% Mortgage Origination 0.7% 4.1% C&I Loans 3.2% 3.7% CRE Loans 1.6% 2.4% Source: SNL and Mortgagestats 3Q13 1Q07 USB Market Share Market Share Change Middle Market Loan 1.2% 6.7% Bookrunner Investment Grade Loan 0.3% 2.2% Bookrunner
Slide 15: U.S. Bancorp Overview, Capital Management, Customer Data Security, 1Q14 Update, Long-term Goals
U.S. Bancorp Overview Capital Management Customer Data Security 1Q14 Update Long-term Goals
Slide 16: Capital Management: Capital Requirement
Capital Management Capital Requirement Tangible book value (TBV) = book value per share excluding intangible assets other than mortgage servicing rights Return on average tangible common equity (ROTCE) = net income, adjusted for after-tax amortization of intangibles, as a percent of average tangible
Slide 17: Capital Management: Earnings Distribution Target
Capital Management Earnings Distribution Target (CHART) 62% 11% 32% Reinvest and Acquisitions Dividends Share Repurchases 20 - 40% 30 - 40% 30 - 40% Payout Ratio 71%
Slide 18: Comprehensive Capital Analysis and Review
Capital Management Comprehensive Capital Analysis and Review 1/6/14 - Capital plans were due Between 3/15/14 and 3/31/14 - Dodd-Frank Act Stress Test and CCAR results will be released By 3/31/14 - Banks required to publish a summary of their own stress test results and methodologies By 3/31/14 - Ban
Slide 19: U.S. Bancorp Overview, Capital Management, Customer Data Security, 1Q14 Update, Long-term Goals
U.S. Bancorp Overview Capital Management Customer Data Security 1Q14 Update Long-term Goals
Slide 20: Customer Data Security: EMV
Visa, Inc. Key EMV Deadlines April 2013 Acquirer must support Chip Processing (Excluding ATM) October 2015 Fraud Liability Shift (Excluding ATM/Fuel) 2017 Fraud Liability Shift for Fuel Customer Data Security EMV is a chip card security standard published by EMVCo, originally developed by Europay, M
Slide 21: Customer Data Security: Tokenization
A process where current Payment Card Data that is stored in mobile and on-line wallets or websites is replaced with a Token that is more secure and also useless if compromised What is Tokenization? Why is it important? What is U.S. Bank doing? Customer Data Security Tokenization Online and Mobile so
Slide 22: U.S. Bancorp Overview, Capital Management, Customer Data Security, 1Q14 Update, Long-term Goals
U.S. Bancorp Overview Capital Management Customer Data Security 1Q14 Update Long-term Goals
Slide 23: 1Q14 Update
1Q14 Update Business Climate Mortgage Activity Loan Growth Net Interest Margin Credit Quality Noninterest Income/Expense
Slide 24: U.S. Bancorp Overview, Capital Management, Customer Data Security, 1Q14 Update, Long-term Goals
U.S. Bancorp Overview Capital Management Customer Data Security 1Q14 Update Long-term Goals
Slide 25: Long-term Goals
Long-term Goals 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, co
Slide 26: Appendix
EXTEND we ADVAI Appendix TSbancorp
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 29: Tangible Book Value and Return on Average Tangible Common Equity
Non-GAAP Financial Measures Tangible Book Value and Return on Average Tangible Common Equity
Slide 30: Line of Business Financial Performance
Non-GAAP Financial Measures Line of Business Financial Performance $ in millions, taxable-equivalent basis, excluding securities gains (losses) net
Slide 31: Credit Suisse Financial Services Forum 2014
Credit Suisse Financial Services Forum 2014
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