U.s. Bancorp · NYSE:USB
U.s. Bancorp — Goldman Sachs U.S. Financial Services Conference 2014
27 slides from U.s. Bancorp's conference presentation, Dec 10, 2014
Slide 1: Goldman Sachs U.S. Financial Services Conference
Goldman Sachs U.S. Financial Services Conference December 10, 2014 Andrew Cecere Vice Chairman, Chief Financial Officer EXTENDING THE ADVANTAGE Exhibit 99.1
Slide 2: Forward-looking Statements and Additional Information
EXTENDING THE ADVANTAGE 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 cur
Slide 3: Agenda
EXTENDING THE ADVANTAGE Agenda Overview Financial Management Capital Management 4Q14 Update Long-term Goals
Slide 4: U.S. Bancorp Dimensions
EXTENDING THE ADVANTAGE U.S. Bancorp Dimensions Asset Size $391 billion Deposits $273 billion Loans $246 billion Customers 17.9 million NYSE Traded USB Market Capitalization* $81 billion Founded Bank Branches 3,177 ATMs 5,026 3Q14 Dimensions * As of 12/5/14
Slide 5: Industry Positions
EXTENDING THE ADVANTAGE 5 U.S. Bancorp 391 5 U.S. Bancorp 273 5 U.S. Bancorp 81 Industry Positions Source: company reports, SNL and FactSet Assets and deposits as of 9/30/14, market value as of 12/5/14 U.S. U.S. U.S. Rank Company $ Billions Rank Company $ Billions Rank Company $ Billions J.P. Morgan
Slide 6: Agenda
EXTENDING THE ADVANTAGE Agenda Overview Financial Management Capital Management 4Q14 Update Long-term Goals
Slide 7: Diversified Business Mix
EXTENDING THE ADVANTAGE Consumer and Small Business Banking 42% Payment Services 30% Wealth Mgmt and Securities Services 10% Wholesale Banking and Commercial Real Estate 18% Revenue Mix By Business Line Fee Income / Total Revenue 3Q14 YTD, taxable-equivalent basis, excluding securities gains (losses
Slide 8: Peer Banks
EXTENDING THE ADVANTAGE Peer Banks Peer Bank Ticker Symbols BAC Bank of America PNC PNC BBT BB&T RF Regions FITB Fifth Third STI SunTrust JPM J.P. Morgan USB U.S. Bancorp KEY KeyCorp WFC Wells Fargo Bank of America SunTrust Wells Fargo KeyCorp BBT Fifth Third Regions PNC J.P. Morgan U.S. Bancorp
Slide 9: Industry Leading Returns
EXTENDING THE ADVANTAGE Source: SNL and company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Efficiency ratio computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent basis and noninterest income excluding securities gains (losses), net
Slide 10: Efficient Expense Platform
EXTENDING THE ADVANTAGE Efficient Expense Platform Single processing platforms Full consolidation of acquisitions Operating scale in all significant businesses Business line monthly review process 2013 Efficiency Ratio Source of Competitive Advantage Source: SNL and company reports; Peer banks: BAC,
Slide 11: Loan Growth
EXTENDING THE ADVANTAGE $ in millions Prior 5 Years Average Balances Year-Over-Year Growth 12.2% 3.9% 4.4% 6.9% 5.6% Prior 5 Quarters Average Balances Year-Over-Year Growth 5.7% 5.7% 6.0% 6.8% 6.3% Loan Growth
Slide 12: Deposit Growth
EXTENDING THE ADVANTAGE $ in millions Prior 5 Years Average Balances Year-Over-Year Growth 23.2% 10.1% 15.4% 10.6% 6.3% Prior 5 Quarters Average Balances Year-Over-Year Growth 5.5% 5.4% 5.1% 6.0% 7.4% Deposit Growth
Slide 13: Credit Quality
EXTENDING THE ADVANTAGE $ in millions Source: company reports; reserve release is calculated as net charge-offs less provision for credit losses over the five-quarter period Net Charge-offs Net Charge-offs (Left Scale) NCOs to Avg Loans (Right Scale) Credit Quality Reserve Release / Net Income (Prio
Slide 14: Peer Debt Ratings
EXTENDING THE ADVANTAGE Debt ratings: holding company as of December 5, 2014 op=outlook positive on=outlook negative s=outlook stable wn=watch negative wp=watch positive Flight to quality Funding advantage Advantages Peer Debt Ratings Top of Class Debt Ratings Rating Outlook Rating Outlook Rating Ou
Slide 15: Agenda
EXTENDING THE ADVANTAGE Agenda Overview Financial Management Capital Management 4Q14 Update Long-term Goals
Slide 16: Capital Management
EXTENDING THE ADVANTAGE 2.5% 4.5% Capital Requirement * Based on the final rules for the Basel III fully implemented standardized approach Earnings Distribution Target 8.0% 0.5% Volatility Buffer 0.5% Potential D-SIFI Buffer Capital Conservation Buffer Minimum Capital Requirement 9.0%* Common Equity
Slide 17: Payout Ratio and Capital Distributions
EXTENDING THE ADVANTAGE 62% 11% 32% Payout Ratio 71% Capital Distributions 74% Quarterly dividend increased 6.5% in 2Q14 to $0.245 per share One-year authorization to repurchase up to $2.3 billion of outstanding stock effective April 1, 2014 Returned 78% of earnings to shareholders during 3Q14
Slide 18: Acquisitions by Business Line
EXTENDING THE ADVANTAGE Consumer and Small Business Banking Payment Services Wealth Mgmt and Securities Services Wholesale Banking and Commercial Real Estate Payments Collective Point of Sale Solutions Ltd FSV Payment Systems TransCard’s heavy truck fuel card network Financial institutions credit ca
Slide 19: Agenda
EXTENDING THE ADVANTAGE Agenda Overview Financial Management Capital Management 4Q14 Update Long-term Goals
Slide 20: 4Q14 Update
EXTENDING THE ADVANTAGE 4Q14 Update Business Climate Loan Growth Net Interest Margin Credit Quality Noninterest Income / Expense
Slide 21: Agenda
EXTENDING THE ADVANTAGE Agenda Overview Financial Management Capital Management 4Q14 Update Long-term Goals
Slide 22: Long-term Goals
EXTENDING THE ADVANTAGE Long-term Goals Optimal business line mix Investments generating positive returns Profitability: Capital distributions: Current Status Four simple and stable business lines Mortgage, wealth management, corporate banking, international payments, branch technology, internet and
Slide 23: Appendix
EXTENDING THE ADVANTAGE Appendix
Slide 24: Non-GAAP Financial Measures
EXTENDING THE ADVANTAGE Non-GAAP Financial Measures (1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements beginning March 31, 2014. (2) Includes net losses on cash flow hedges included in accumulated other comprehensive i
Slide 25: Non-GAAP Financial Measures
EXTENDING THE ADVANTAGE Non-GAAP Financial Measures $ in millions 3Q14 2Q14 1Q14 4Q13 3Q13 Total assets 391,284 $ 389,065 $ 371,289 $ 364,021 $ 360,681 $ Goodwill (net of deferred tax liability) (1) (8,503) (8,548) (8,352) (8,343) (8,319) Intangible assets, other than mortgage servicing rights (877)
Slide 26: Line of Business Financial Performance
EXTENDING THE ADVANTAGE $ in millions, taxable-equivalent basis, excluding securities gains (losses) net Line of Business Financial Performance Non-GAAP Financial Measures
Slide 27: Goldman Sachs U.S. Financial Services Conference December 10, 2014
EXTENDING THE ADVANTAGE Goldman Sachs U.S. Financial Services Conference December 10, 2014
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