28 slides from U.s. Bancorp's earnings presentation, Oct 17, 2012
Slide 1: U.S. Bancorp 3Q12 Earnings Conference Call
Exhibit 99.2 U.S. Bancorp 3Q12 Earnings Conference Call Richard K. Davis Chairman, President and CEO Andy Cecere October 17, 2012 Vice Chairman and CFO
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: 3Q12 Highlights
3Q12 Earnings 3Q12 Highlights Conference Call Record net income of $1.5 billion; $0.74 per diluted common share Record total net revenue of $5.2 billion, up 8.0% vs. 3Q11 • Net interest income growth of 6.1% vs. 3Q11; noninterest income growth of 10.4% vs. 3Q11 Positive operating leverage on both a
Slide 4: Performance Ratios
3Q12 Earnings Performance Ratios Conference Call Efficiency Ratio and ROCE and ROA Net Interest Margin Return on Avg Common Equity Return on Avg Assets Efficiency Ratio Net Interest Margin Efficiency ratio computed as noninterest expense divided by the sum of net interest income on a taxable-equival
Slide 5: Revenue Growth
3Q12 Earnings Revenue Growth Conference Call $ in millions Year-Over-Year Growth 4.5% 8.1% 9.1% 8.1% 8.0% * Gain on merchant processing agreement settlement 5 Taxable-equivalent basis
Slide 6: Loan and Deposit Growth
3Q12 Earnings Loan and Deposit Growth Conference Call $ in billions Average Balances Year-Over-Year Growth 11.1% 10.5% $239.3 11.7% 17.3% $231.3 $228.3 17.9% $223.3 7.3% 7.7% 6.4% $216.9 $215.4 $214.1 5.9% 5.0% $210.2 $207.0 $202.2 6
Slide 7: Credit Quality
3Q12 Earnings Credit Quality Conference Call $ in millions Net Charge-offs Nonperforming Assets* Net Charge-offs (Left Scale) Nonperforming Assets (Left Scale) NCOs to Avg Loans (Right Scale) NPAs to Loans plus ORE (Right Scale) * Excluding Covered Assets (assets subject to loss sharing agreements w
Slide 8: Earnings Summary
3Q12 Earnings Earnings Summary Conference Call $ in millions, except per-share data % B/(W) YTD YTD 3Q12 2Q12 3Q11 vs 2Q12 vs 3Q11 3Q12 3Q11 % B/(W) Net Interest Income $ 2,783 $ 2,713 $ 2,624 2.6 6.1 $ 8,186 $ 7,675 6.7 Noninterest Income 2,396 2,355 2,171 1.7 10.4 6,990 6,329 10.4 Total Revenue 5,
Slide 9: 3Q12 Results - Key Drivers
3Q12 Earnings 3Q12 Results - Key Drivers Conference Call vs. 3Q11 Net Revenue growth of 8.0% • Net interest income growth of 6.1%; net interest margin of 3.59% vs. 3.65% • Noninterest income growth of 10.4% Noninterest expense growth of 5.4% Provision for credit losses lower by $31 million • Net cha
Slide 10: Capital Position
3Q12 Earnings Capital Position Conference Call $ in billions 3Q12 2Q12 1Q12 4Q11 3Q11 Shareholders' equity $ 38.7 $ 37.8 $ 35.9 $ 34.0 $ 33.2 Tier 1 capital 30.8 30.0 30.0 29.2 28.1 Total risk-based capital 37.6 36.4 36.4 36.1 35.4 Tier 1 common equity ratio 9.0% 8.8% 8.7% 8.6% 8.5% Tier 1 capital r
Slide 11: Mortgage Repurchase
3Q12 Earnings Mortgage Repurchase Conference Call Mortgages Repurchased and Make-whole Payments Repurchase activity lower than Mortgage Representation and Warranties Reserve peers due to: $ in millions 3Q12 2Q12 1Q12 4Q11 3Q11 • Conservative credit and Beginning Reserve $216 $202 $160 $162 $173 unde
Slide 12: Momentum continues
Momentum y All of &$ serving you us bancorp
Slide 13: Appendix
3Q12 Earnings Conference Call Appendix 13
Slide 14: Average Loans
3Q12 Earnings Average Loans Conference Call $ in billions Average Loans Key Points Year-Over-Year Growth vs. 3Q11 5.0% 5.9% 6.4% 7.7% 7.3% Average total loans grew by $14.7 billion, or 7.3% Average total loans, excluding covered loans, $210.2 $214.1 $216.9 were higher by 9.6% $202.2 $207.0 Retail Av
Slide 15: Average Deposits
3Q12 Earnings Average Deposits Conference Call $ in billions Average Deposits Key Points Year-Over-Year Growth vs. 3Q11 17.9% 17.3% 11.7% 10.5% 11.1% Average total deposits increased by $23.9 billion, or 11.1% $231.3 $239.3 Average low cost deposits (NIB, interest $228.3 $215.4 $223.3 checking, mone
Slide 16: Net Interest Income
3Q12 Earnings Net Interest Income Conference Call $ in millions Net Interest Income Key Points Year-Over-Year Growth vs. 3Q11 5.9% 7.0% 7.3% 6.6% 6.1% Average earning assets grew by $22.7 billion, or 7.9% 3,000 6.0% $2,783 $2,673 $2,690 $2,713 Net interest margin lower by 6 bp (3.59% vs. $2,624 3.65
Slide 17: Noninterest Income
3Q12 Earnings Noninterest Income Conference Call $ in millions Noninterest Income Key Points vs. 3Q11 Year-Over-Year Growth Noninterest income grew by $225 million, or 10.4%, 2.9% 9.4% 11.3% 9.7% 10.4% driven by: • Mortgage banking revenue increase of $274 million $2,431 $2,396 $2,355 $2,239 • Trust
Slide 18: Noninterest Expense
3Q12 Earnings Noninterest Expense Conference Call $ in millions Noninterest Expense Key Points vs. 3Q11 Year-Over-Year Growth Noninterest expense was higher by $133 million, 3.8% 8.5% 10.6% 7.3% 5.4% or 5.4%, driven by: $2,696 $2,560 $2,601 $2,609 • Increase in professional services (44.0%) principa
Slide 19: Credit Quality - Commercial Loans
3Q12 Earnings Credit Quality - Commercial Loans Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 3Q11 2Q12 3Q12 Average Loans $46,484 $54,362 $56,655 30-89 Delinquencies 0.34% 0.26% 0.29% 90+ Delinquencies 0.09% 0.07% 0.07% Nonperforming Loans 0.71% 0.31% 0.23% C
Slide 20: Credit Quality - Commercial Leases
3Q12 Earnings Credit Quality - Commercial Leases Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 3Q11 2Q12 3Q12 8,000 6.0% Average Loans $5,860 $5,658 $5,537 30-89 Delinquencies 0.93% 0.83% 0.93% 6,000 $5,860 $5,834 $5,822 $5,658 $5,537 4.5% 90+ Delinquencies 0.
Slide 21: Credit Quality - Commercial Real Estate
3Q12 Earnings Credit Quality - Commercial Real Estate Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 3Q11 2Q12 3Q12 Average Loans $35,569 $36,549 $36,630 30-89 Delinquencies 0.44% 0.24% 0.18% 90+ Delinquencies 0.08% 0.03% 0.03% Nonperforming Loans 3.43% 1.89% 1
Slide 22: Credit Quality - Residential Mortgage
3Q12 Earnings Credit Quality - Residential Mortgage Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 3Q11 2Q12 3Q12 48,000 6.0% Average Loans $34,026 $39,166 $40,969 $40,969 $37,831 $39,166 30-89 Delinquencies 1.09% 0.86% 0.93% $36,256 36,000 $34,026 4.5% 90+ Del
Slide 23: Credit Quality - Credit Card
3Q12 Earnings Credit Quality - Credit Card Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 3Q11 2Q12 3Q12 20,000 12.0% Average Loans $16,057 $16,696 $16,551 $16,778 $16,696 $16,551 $16,057 $16,271 30-89 Delinquencies 1.38% 1.20% 1.41% 15,000 9.0% 90+ Delinquenci
Slide 24: Credit Quality - Home Equity
3Q12 Earnings Credit Quality - Home Equity Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 3Q11 2Q12 3Q12 Average Loans $18,510 $17,598 $17,329 30-89 Delinquencies 0.83% 0.71% 0.81% 90+ Delinquencies 0.67% 0.30% 0.32% Nonperforming Loans 0.19% 0.91% 1.05% Tradit
Slide 25: Credit Quality - Retail Leasing
3Q12 Earnings Credit Quality - Retail Leasing Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 3Q11 2Q12 3Q12 Average Loans $5,097 $5,151 $5,256 30-89 Delinquencies 0.19% 0.13% 0.17% 90+ Delinquencies 0.02% 0.00% 0.02% Nonperforming Loans 0.00% 0.00% 0.02% Commen
Slide 26: Credit Quality - Other Retail
3Q12 Earnings Credit Quality - Other Retail Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 3Q11 2Q12 3Q12 28,000 6.0% $24,773 $24,901 $24,902 $25,151 $25,406 Average Loans $24,773 $25,151 $25,406 30-89 Delinquencies 0.67% 0.51% 0.59% 21,000 4.5% 90+ Delinquenci
Slide 27: Non-GAAP Financial Measures
3Q12 Earnings Non-GAAP Financial Measures Conference Call $ in millions 3Q12 2Q12 1Q12 4Q11 3Q11 Total equity $ 39,825 $ 38,874 $ 36,914 $ 34,971 $ 34,210 Preferred stock (4,769) (4,769) (3,694) (2,606) (2,606) Noncontrolling interests (1,164) (1,082) (1,014) (993) (980) Goodwill (net of deferred ta
Slide 28: U.S. Bancorp 3Q12 Earnings Conference Call
U.S. Bancorp 3Q12 Earnings Conference Call October 17, 2012