U.s. Bancorp · NYSE:USB
U.s. Bancorp — BancAnalysts Association of Boston Conference 2025
30 slides from U.s. Bancorp's conference presentation, Nov 7, 2025
Slide 1: BancAnalysts Association of Boston Conference 2025
BancAnalysts Association of Boston Conference 2025 John Stern Vice Chair and Chief Financial Officer Mark Runkel Vice Chair and Head of Payments: Merchants and Institutional Courtney Kelso Senior Executive Vice President and Head of Payments: Consumer and Small Business N O V E M B E R 7 , 2 0 2 5
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: An Exceptional Banking Franchise
An Exceptional Banking Franchise Fee income represents ~42% of Balance sheet3 Clients4 U.S. Bancorp’s total net revenue1 $680B Assets ~13M Consumers 26% 32% As a % of $618B Earning Assets ~1.4M Businesses Total Revenue1,2 ■ Payment Services $512B Deposits ~500K Wealth clients 42% ■ Consumer & Busine
Slide 4: Committed to Achieving Our Financial Targets
Committed to Achieving Our Financial Targets Key strategic priorities Medium-term 3Q 2024 2Q 2025 3Q 2025 target5 1 Organic Growth Deepening relationships, interconnected Return on average assets 1.03% 1.08% 1.17% 1.15% to 1.35% product set, and broader reach Return on tangible common equity1 17.9%
Slide 5: Payment Services Overview
Card Merchant Issuing Processing Payment Services Overview A unique differentiator that has generated $5.5 billion of year-to-date revenue1 Comprised of: Today’s focus • Card Issuing 66% Credit and debit card for consumer Of payments 26% and small business revenue1 Of Total Revenue1,2 • Merchant Pro
Slide 6: Payments Transformation
PAYMENTS TRANSFORMATION Courtney Kelso Mark Runkel Senior Executive Vice President Vice Chair and Head of and Head of Payments: Consumer Payments: Merchants and and Small Business (PCS) Institutional (PMI) ©2025 U.S. Bancorp 6
Slide 7: U.S. Bancorp operates across the full payments value stream
Card Merchant Issuing Processing U.S. Bancorp operates across the full payments value stream Industry value-chain: How U.S. Bancorp and payment participants generate revenue Consumer Merchant Software Gateway Acquirer Network Issuer Charges $100 on a Sells good or Provides software Passes payment Ha
Slide 8: We deliver strong returns in a growing U.S. credit card market
Card Merchant Issuing Processing We deliver strong returns in a growing U.S. credit card market Competing in a large U.S. credit card market with disciplined pricing and risk management to drive strong returns Focused portfolio, prioritizing quality over size Strong yield with disciplined credit ris
Slide 9: U.S. Bancorp differentiates through multi-channel distribution
Card Merchant Issuing Processing U.S. Bancorp differentiates through multi-channel distribution Co-brand Create partnerships that offer unique Leverage USB’s economies of scale so Build market-leading products and and compelling products and that smaller financial institution experiences expertly ma
Slide 10: We focus on durable, high-quality cardmembers with balanced usage
Card Merchant Issuing Processing We focus on durable, high-quality cardmembers with balanced usage Over 70% of consumers are FICO 720+, Nearly 60% of spend is Balanced mix of transactors and 11 percentage points higher than industry1 nondiscretionary2 revolvers3 drive diversified income Dining Discr
Slide 11: Recent success from our interconnected franchise
Card Merchant Issuing Processing We have had recent success by recognizing the power of our interconnected franchise The Smartly Visa Signature® consumer % of consumer household clients % of business clients with a card accelerated with a credit card credit card deepening Banking + Payments penetrat
Slide 12: We have increased tech and digital investments to support growth
Card Merchant Issuing Processing We have increased tech and digital investments to support growth Recent investments driving competitiveness and position Credit Card Issuing for success in 2026 Key successes • Accelerated speed to launch innovative products • Enhanced application platforms to boost
Slide 13: Co-brand Partner Examples
Card Merchant Issuing Processing …and have revitalized our partnership platforms to drive growth Co-brand Partner Examples Full-service agent bank for 1,300+ financial institution partners Nationally leading brands in a diverse set of industries Awarded, not yet installed Elan Partner Examples ● # o
Slide 14: Three growth strategies are underway to transform the card business
Card Merchant Issuing Processing Three growth strategies are underway to transform the card business Product & marketing innovation Scaling through partnership Small business expansion • Increase acquisition marketing investment • Embed Elan into scaled banking platforms • Business Essentials • Mark
Slide 15: We are executing on a strategy to accelerate growth
Card Merchant Issuing Processing Credit Card New Accounts Year over year change 32.1% 2.0% 18.7% -13.5% -4.0% 3Q24 4Q24 1Q25 2Q25 3Q25 We are executing on a strategy Credit Card Fee Revenue to accelerate growth Year over year change 5.2% 4.7% Mid single digit growth in fees 4.5% 4.2% 4.4% Market
Slide 16: U.S. Bancorp operates across the full payments value stream
Card Merchant Issuing Processing U.S. Bancorp operates across the full payments value stream Industry value-chain: How U.S. Bancorp and payment participants generate revenue Consumer Merchant Software Gateway Acquirer Network Issuer Charges $100 on a Sells good or Provides software Passes payment Ha
Slide 17: Elavon is the 5th largest merchant acquirer in the United States
Card Merchant Issuing Processing Elavon is the 5th largest merchant acquirer in the United States1 Generated ~$1.8B of fee revenue over the last 12 months; ~15% of total fee income for the company2 Scale and Reach Clients3 Global Volume4 Global Transactions4 1,000+ partners and Operating across the
Slide 18: Elavon competes in a dynamic landscape
Card Merchant Issuing Processing Elavon competes in a dynamic landscape Differentiated payment capabilities that are embedded, secure, scalable, and backed by U.S. Bank High Elavon operates with higher margin and moderately lower growth than its peers1 Operating Margin Clients choose us for our: • O
Slide 19: Three key strategies to accelerate growth
Card Merchant Issuing Processing Three key strategies to accelerate growth Embedded 1 Invest in software and partnerships to better meet merchant needs with payments value added services (formerly tech-led) Increase share of direct sales (i.e., self sourced, branch, relationship Differentiated 2 man
Slide 20: Embedded payments (formerly tech-led)
Card Merchant Issuing Processing 1 Embedded payments (formerly tech-led) Embedded payments integrate payment capabilities into owned and partnered software; Grows at ~4x core acquiring Embedded Payments Revenue 5 Key Initiatives Percent of total Payments revenue 1. Modern omni-channel payment gatewa
Slide 21: Differentiated distribution
Card Merchant Issuing Processing 2 Differentiated distribution Increase our share of direct sales to capture additional economics and drive interconnected growth Elavon Distribution 3 Key Initiatives 1. Increase sales and marketing capacity, Direct 40% especially though U.S. Bank channels 50-60% Dir
Slide 22: Industry vertical prioritization
Card Merchant Issuing Processing 3 Industry vertical prioritization Targeted investment in 5 priority verticals where we win with banking + payments Small and Medium Business (SMB) Enterprise Retail Restaurants Services Healthcare Travel (Airline / Hotel) 30% 11% 19% 12% 15% of revenue1 of revenue1
Slide 23: Recent momentum gives us confidence in the path ahead
Card Merchant Issuing Processing Recent momentum gives us confidence in the path ahead We are executing on a strategy to accelerate growth Merchant Processing Fee Revenue and maintain attractive Year over year change 5.2% margins 4.4% Embedded payments 3.5% Differentiated distribution 3.0% Ind
Slide 24: Appendix
Appendix ©2025 U.S. Bancorp 24
Slide 25: Financial Targets
Financial Targets Medium-term1 Key assumptions2 Modest GDP growth ROA 1.15% to 1.35% Stable unemployment rate Moderating inflation ROTCE High teens Current tax policy Fee Income Growth Mid-single digits Fed Funds rate path consistent with market implied Upward sloping yield curve driven by rate cuts
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Nine Months Ended ($ in millions) September 30, 2025 Line of Business Financial Performance Net Revenue Wealth, Corporate, Commercial and Institutional Banking $ 8,983 Consumer and Business Banking 6,710 Payment Services 5,510 Treasury and Corporate Support 88 Total Compa
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended (Dollars in Millions, Unaudited) September 30, 2025 June 30, 2025 September 30, 2024 Net interest income $ 4,222 $ 4,051 $ 4,135 Taxable-equivalent adjustment (1) 29 29 31 Net interest income, on a taxable-equivalent basis 4,251 4,080 4,166 Net interest
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended September 30, September 30, June 30, June 30, September 30, September 30, (Dollars in Millions, Unaudited) 2025 2024 2025 2024 2024 2023 Noninterest income $ 3,078 $ 2,698 $ 2,924 $ 2,815 $ 2,698 $ 2,764 Less: Securities gains (losses), net (7) (119) (5
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended September 30, September 30, June 30, June 30, September 30, September 30, (Dollars in Millions, Unaudited) 2025 2024 2025 2024 2024 2023 Net interest income $ 4,222 $ 4,135 $ 4,051 $ 4,023 $ 4,135 $ 4,236 Taxable-equivalent adjustment (1) 29 31 29 29 31
Slide 30: Notes
Notes 1. 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. 2. Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements. 3.
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