U.s. Bancorp · NYSE:USB
U.s. Bancorp — Barclays Global Financial Services Conference 2017
29 slides from U.s. Bancorp's conference presentation, Sep 13, 2017
Slide 1: Barclays Global Financial Services Conference 2017
Barclays Global Financial Services Conference 2017 September 13, 2017 Andy Cecere President and CEO Exhibit 99.1
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
U.S. Bancorp As of 6/30/17, except market value as of 7/21/17 NYSE TradedUSB Founded 1863 Market Value $88B Assets $464B Deposits $347B Loans $277B
Slide 4: Advantaged Position
Advantaged Position Source: Company reports and Bloomberg Assets and deposits as of 6/30/17, market value as of 7/21/17 Assets Market Value Deposits
Slide 5: Setting Expectations
Setting Expectations Some things won’t change… Our business mix Our risk management philosophy Our culture
Slide 6: Our Business Mix
Our Business Mix Payment Services Wealth Management & Securities Services Retail Payment Solutions, Global Merchant Acquiring and Corporate Payment Systems Provides a full suite of payment services to consumers, merchants, corporations and governments – a unique position versus other banks Wealth Ma
Slide 7: Our Risk Management Philosophy
Our Risk Management Philosophy Financial Crisis-Related Settlement Outlays since 2010* * Data from published analysis by SNL Financial, The Wall Street Journal, and other external sources, and includes banks’ 2010-January of 2016 settlements with GSEs; the national mortgage settlements; settlements
Slide 8: Our Culture
Our Culture 1. Walt Disney 1. Walt Disney 1. Walt Disney 1. Walt Disney 2. TJX 2. U.S. Bancorp 2. U.S. Bancorp 2. Microsoft 3. U.S. Bancorp 3. Starbucks 3. Starbucks 3. Alphabet 4. Starbucks 4. TJX 4. Johnson & Johnson 4. Starbucks 5. Nike 5. Johnson & Johnson 5. NextEra Energy 5. United Health 6. J
Slide 9: Consistent Growth and Returns
Return on Average Assets Return on Average Common Equity Efficiency Ratio Since 1Q08 2016 Source: Company reports and SNL; peer banks include BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC * Non-GAAP, see slide 29 for calculation Peer 9 Peer 9 Consistent Growth and Returns Our Track Record:
Slide 10: Sustainability in Earnings and Capital
Sustainability in Earnings and Capital Competitive advantages: Diversified business mix Operating scale Efficient platform Flight-to-quality Sustainability of dividends Source: The Federal Reserve Board’s DFAST 2017 supervisory stress test results; estimates are under the supervisory severely advers
Slide 11: World Class Debt Ratings
World Class Debt Ratings Debt ratings: Holding company as of 8/28/17 * Moody’s Baseline Credit Assessment (BCA) is the issuers’ standalone intrinsic strength, absent any extraordinary support from an affiliate or a government; BCA for U.S. entities is bank level entity rating We are the highest rate
Slide 12: Our Top Priorities
Our Top 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
Slide 13: 1) One U.S. Bank: Customer-centric Approach to Banking
1) One U.S. Bank: Product-focused Several approaches to segment customers Initiatives focused within business lines Data transactions Customer-centric Bank-wide segmentation model Company-wide, integrated initiatives & investments Information transactions Moving from… …to: Wealth Management & Securi
Slide 14: Bringing 'One U.S. Bank' to Life
Bringing ‘One U.S. Bank’ to Life Taking advantage of our efficient operating platforms Fostering a culture that puts the customer first Leveraging advancements in technology Holistic customer views provide opportunities to build deeper relationships and collaborate across business lines Streamlined
Slide 15: 2) Leveraging Technology and Innovation to Drive Growth and Efficiency
2) Leveraging Technology and Innovation to Drive Growth and Efficiency Fintech engagement CRM AI & machine learning Digital Analytics Offense Defense Cybersecurity USB’s Cyber Defense Fusion Center Our information security staff operate in 34 cities around the globe to detect, monitor and respond to
Slide 16: Innovation in Consumer Banking
Innovation in Consumer Banking Innovation allows us to meet our customers when, where and how they want to be met Using analytics to optimize our branch footprint Digital sales are climbing +18% +24% +35% +37% +29% +4%
Slide 17: Innovation in Wholesale Banking
Innovation in Wholesale Banking Virtual Pay What is a virtual payment solution? Unique single-use 16-digit account number Generated at time of payment Assigned to specific payment or supplier Real-time payments; 24/7 Fastest growing Corporate Payment Systems product Growing ~20% year-over-year Volum
Slide 18: Innovation in Payment Services
Innovation in Payment Services Fintech Fintech Fintech Fintech Fintech Fintech Biometrics & security Blockchain Real-time rewards Artificial intelligence & machine learning Distributed ledger Payments, ecommerce & mobile commerce Financial transaction Data Information The evolution of merchant acqui
Slide 19: Innovation in Securities Services
Innovation in Securities Services Smart analytics and trade processing make client interactions more efficient and secure Pivot: The Future Is Now CLIENTS Institutional clients use Pivot to replace existing platforms and processes. Trading capabilities available today can cut 30 minutes or more off
Slide 20: 3) A Relentless Focus on Optimization
3) A Relentless Focus on Optimization Operating in the ‘sweet spot’ will drive returns with greater efficiency Input Output Productive returns Diminishing returns Negative returns
Slide 21: Optimization in Consumer Banking
Optimization in Consumer Banking Metro Community In-store & On-site Omnichannel delivery Three branch types Right-sizing branches and staff Optimizing the customer experience Our digital loan application portal: Streamlines the application process Reduces time to closing and origination costs Result
Slide 22: Optimization in Wholesale Banking
Optimization in Wholesale Banking Up-tiering client relationships Building out national middle market Fee opportunities complement lending relationships USB serves 90% of Fortune 500 companies and 88% of the Fortune 1,000 We lead with credit, then quickly shift focus to deeper, more profitable relat
Slide 23: Optimization in Payment Services
Optimization in Payment Services Focused on merchant acquiring verticals where we can add value Top 5 provider for hospitality and healthcare #1 provider for airlines Optimizing the growth equation and our product offerings Our newly introduced high-end consumer travel rewards card: Rounds out our p
Slide 24: Optimization in Wealth Management
Optimization in Wealth Management Home mortgage Small business Payment solutions Retirement & wealth planning Wealth Management teams engage clients holistically Optimizing the way we deliver services We’re rolling out auto-investing in 2017 3 distinct service models Family offices are strategically
Slide 25: Bringing it All Together
Bringing it All Together Technology & innovation Optimization Increased revenue Greater efficiency Higher profits Higher returns
Slide 26: The End Result: Superior Returns
The End Result: Superior Returns * Non-GAAP, see slide 29 for calculation Source: Company reports, SNL and Bloomberg Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC; Large European banks: BARC, HSBA, ACA, BNP, SAN Long-term Expectations Return on Assets 1.35-1.65% Return on Equity 13.5-16
Slide 27: Third Quarter Update
Third Quarter Update Loan growth Net interest margin Fee revenue Operating leverage Tax rate
Slide 28: Appendix
| Appendix U.S. BANCORP | 28
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures (1) Utilizes a tax rate of 35 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes
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