U.s. Bancorp · NYSE:USB
U.s. Bancorp — Debt Investor Presentation (June 2019)
26 slides from U.s. Bancorp's debt investor presentation, Jun 17, 2019
Slide 1: U.S. Bancorp Fixed Income Investor Presentation June 2019
U.S. Bancorp Fixed Income Investor Presentation June 2019 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: Agenda
Agenda Overview Business Lines & Financial Management Balance Sheet & Capital Management Appendix
Slide 4: U.S. Bancorp at a glance
As of 3/31/19, except market value as of 6/11/19 NYSE Traded USB Founded 1863 Market Value $85B Assets $476B Deposits $348B Loans $288B U.S. Bancorp
Slide 5: Our Advantaged Position
Source: company reports and Bloomberg Assets and deposits as of 3/31/19, market value as of 6/11/19 Our Advantaged Position Assets Market Value Deposits
Slide 6: Agenda
Agenda Overview Business Lines & Financial Management Balance Sheet & Capital Management Appendix
Slide 7: Our Businesses
Consumer & Business Banking, 40% Branch banking, small business banking, consumer lending, mortgage banking and omnichannel delivery Payment Services, 29% Retail payment solutions, global merchant acquiring and corporate payment systems Corporate & Commercial Banking, 18% Corporate banking, commerci
Slide 8: Diversified Business Mix
Diversified Business Mix Revenue mix source for peer banks: FR Y-9C and company reports, Full year 2018 U.S. Bancorp Revenue Mix Peer Bank Average Revenue Mix Net Interest Income Payments Fee Revenue Fiduciary Activities Service Charges Mortgage Fees Trading, Brokerage, Investment Banking, Equity In
Slide 9: Our Financial Performance
Full year 2018 Source: company reports; peer banks include: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC * Non-GAAP, see slide 25 for USB calculation Our Financial Performance Return on Average Common Equity Return on Average Assets Efficiency Ratio
Slide 10: Driving Growth and Returns
Drivers of improving returns: Net interest income Noninterest income Positive operating leverage Capital management Driving Growth and Returns Industry-leading Returns 2018 ROACE vs Peers Source: company reports; peers include: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Capital conservation buff
Slide 11: Credit Quality
Credit Quality $ in millions NCO Ratio +3 bps QoQ +3 bps YoY NPAs +1.6% QoQ -16.5% YoY
Slide 12: Agenda
Agenda Overview Business Lines & Financial Management Balance Sheet & Capital Management Appendix
Slide 13: Best in Class Debt Rating
Best in Class Debt Rating Debt ratings: as of 5/31/2019 USB is the highest rated bank amongst its peers Funding advantage Competitive advantages include pricing, flight-to-quality and sales force confidence * Moody’s Baseline Credit Assessment (BCA) is the issuers’ standalone intrinsic strength, abs
Slide 14: Moody's Baseline Credit Assessment
Moody’s Baseline Credit Assessment Represents Moody’s opinion of an issuers’ standalone intrinsic strength U.S. Bank recognized as the highest rated bank globally Note: BCAs are as of April 28, 2019; includes all Moody’s-rated banks that have been assigned a BCA Source: Moody’s Investors Service U.S
Slide 15: Consistent Balance Sheet Composition
Consistent Balance Sheet Composition Assets Liabilities & Equity Sustained balance sheet growth with stable asset composition Strong deposit base predominant source of balance sheet funding Ending balances
Slide 16: USB Issuance History by Entity
USB Issuance History by Entity Strong deposit base results in less reliance on wholesale funding
Slide 17: USB Consolidated Issuance Distribution
USB Consolidated Issuance Distribution Diversified issuance program helps maintain competitive funding advantage
Slide 18: Debt Maturity Distribution
Debt Maturity Distribution U.S. Bancorp issuance activity principally supports dividend payments, share buybacks, acquisitions, and operating expenses Diversified maturity profile across U.S. Bancorp and U.S. Bank National Association
Slide 19: Asset Sensitivity and Liquidity
Asset Sensitivity and Liquidity Net Interest Income Sensitivity Reliable source of core deposits Diversified sources of liquidity Excess cash and liquid assets Wholesale funding sources Off-balance sheet capacity Optimized liquidity position supports balance sheet growth Total Available Liquidity ($
Slide 20: Investment Portfolio
Investment Portfolio High-quality portfolio with minimal credit risk Majority of portfolio invested in U.S. government securities Portfolio weighted average life of 4.6 years As of 3/31/19
Slide 21: Sustainability in Earnings and Capital
Competitive advantages Diversified business mix Operating scale Efficient platform Flight to quality Sustainability of dividends Sustainability in Earnings and Capital Source: Company filings and SNL Financial, Federal Reserve estimates under supervisory severely adverse scenario Peer banks: BAC, BB
Slide 22: Agenda
Agenda Overview Business Lines & Financial Management Balance Sheet & Capital Management Appendix
Slide 23: Capital Management
Earnings Distribution Target: Reinvest & Acquisitions Dividends Share Repurchases 20 - 40% 30 - 50% 30 - 40% Hypothetical Earnings Distribution Example Dividends 30% Reinvestment 30% Share Repurchases 40% Assumed ROTCE 20% Discretionary Distributions 70% Balance Sheet Growth 6% 2.5% 1.5% 9.3% 8.5% I
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 25: Non-GAAP Financial Measures
Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes. Non-GAAP Financial Measures
Slide 26: June 2019 U.S. Bancorp Fixed Income
June 2019 U.S. Bancorp Fixed Income Investor Presentation
US Bancorp \de\ — Debt Investor Presentation (June 2019) on 6ix