U.s. Bancorp · NYSE:USB
U.s. Bancorp — Credit Suisse 2016 Financial Services Forum
21 slides from U.s. Bancorp's conference presentation, Feb 9, 2016
Slide 1: Credit Suisse 2016 Financial Services Forum
Credit Suisse 2016 Financial Services Forum February 9, 2016 Kathy Rogers Vice Chairman and Chief Financial Officer P.W. (Bill) Parker Vice Chairman, Chief Risk Officer Exhibit 99.1
Slide 2: Agenda
Agenda Company Overview Value Creation Credit Update Interest Rates 1Q16 Update
Slide 3: U.S. Bancorp 4Q15 Dimensions
U.S. Bancorp 4Q15 Dimensions Market value as of 2/5/16 NYSE Traded USB Founded Market Value $70B Branches 3,133 ATMs 4,936 Customers 18.5M Assets $422B Deposits $300B Loans $261B
Slide 4: Industry Position
5 U.S. Bancorp 422 5 U.S. Bancorp 300 5 U.S. Bancorp 70 Industry Position Source: company reports, SNL and FactSet Assets and deposits as of 12/31/15, market value as of 2/5/16 Assets Market Value Deposits U.S. U.S. U.S. Rank Company $ Billions Rank Company $ Billions Rank Company $ Billions J.P. Mo
Slide 5: Agenda
Agenda Company Overview Value Creation Credit Update Interest Rates 1Q16 Update
Slide 6: Revenue Diversification
Consumer and Small Business Banking 41% Payment Services 31% Wealth Mgmt and Securities Services 11% Wholesale Banking and Commercial Real Estate 17% Revenue Diversification Revenue Mix By Business Line Fee Income / Total Revenue 46% 45% 45% 45% 35% 40% 45% 50% 55% FY2015 taxable-equivalent basis Bu
Slide 7: Best in Class Debt Rating
Best in Class Debt Rating Debt ratings: holding company as of 2/5/16 USB is highest rated peer bank across all rating agencies Funding advantage Competitive advantages Pricing Flight-to-quality Sales Force Confidence op=outlook positive on=outlook negative s=outlook stable wn=watch negative wp=watch
Slide 8: Achieving Growth
24% 18% 24% 15% 10% 9% 34% 17% 27% 13% 2% 7% 22% 54% 24% 28% 60% 12% 19% 9% 28% 44% 17% 11% 31% 41% Source: SNL; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Revenue contribution percentages exclude Treasury and Corporate Support (see slide 21) Achieving Growth Total Revenue 2010 Reven
Slide 9: Performance vs. Peers
Performance vs. Peers Return on Average Assets Return on Average Common Equity Efficiency Ratio Since 1Q08 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 taxab
Slide 10: Efficiency
Efficiency Single processing platforms Full consolidation of acquisitions Operating scale in all significant businesses Business line monthly review process Prudent expense management Source: SNL and company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Efficiency ratio compute
Slide 11: Capital Management
27% 29% 31% 32% Capital Management Earnings Distribution Target Annual dividend increased from $0.98 to $1.02 per share in 2Q15, a 4.1% increase Five-quarter authorization to repurchase up to $3.0 billion of outstanding stock effective April 1, 2015 CET1* at 9.1% in 4Q15, above target of 8.0% Capita
Slide 12: Agenda
Agenda Company Overview Value Creation Credit Update Interest Rates 1Q16 Update
Slide 13: Credit Quality
Credit Quality $ in millions Net Charge-offs Net Charge-offs (Left Scale) NCOs to Avg Loans (Right Scale) Nonperforming Assets Nonperforming Assets (Left Scale) NPAs to Loans plus ORE (Right Scale) $308 $279 $296 $292 $305 0.50% 0.46% 0.48% 0.46% 0.47% 0.00% 0.75% 1.50% 2.25% 3.00% 4Q14 1Q15 2Q15 3Q
Slide 14: Credit Update - Energy Overview
Credit Update - Energy Overview Wholesale energy loans of $3.2 billion; 1.2% of total loans Most directly impacted are the exploration and production loans which make up about half of the total energy portfolio • Largely secured by borrowing bases • Monitored and adjusted relative to market conditio
Slide 15: Agenda
Agenda Company Overview Value Creation Credit Update Interest Rates 1Q16 Update
Slide 16: Asset Sensitive Balance Sheet
Asset Sensitive Balance Sheet Tailwinds: ~50% of earning assets are rate sensitive of which the majority re-price in first 90 days Deposit growth remains strong Limited deposit re-pricing Headwinds: Lower long-term rates • Negative impact on new consumer loan rates • Lower reinvestment rate on secur
Slide 17: Agenda
Agenda Company Overview Value Creation Credit Update Interest Rates 1Q16 Update
Slide 18: 1Q16 Outlook
= Loan Growth: 1.0% to 1.5% growth = Credit Quality: NCOs relatively stable = Net Interest Margin: Relatively stable = Noninterest Income: Seasonally lower = Noninterest Expense: Relatively stable * Seasonally higher benefit expense + Higher costs related to the 4Q15 card acquisition + Higher variab
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Financial Measures
x Non-GAAP Financial Measures Line of Business Financial Performance Taxable-equivalent basis $ in millions Revenue Line of Business Financial Performance Wholesale Banking and Commercial Real Estate 2,924 $ Consumer and Small Business Banking 7,114 Wealth Management and Securities Services 1,852 Pa
Slide 21: Credit Suisse 2016 Financial Services Forum
Credit Suisse 2016 Financial Services Forum
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