30 slides from U.s. Bancorp's earnings presentation, Jan 16, 2013
Slide 1: U.S. Bancorp 4Q12 Earnings Conference Call
Exhibit 99.2 U.S. Bancorp 4Q12 Earnings Conference Call Richard K. Davis Chairman, President and CEO Andy Cecere January 16, 2013 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: 2012 Full Year Highlights
4Q12 Earnings 2012 Full Year Highlights Conference Call Record net income of $5.6 billion; $2.84 per diluted common share Record total net revenue of $20.3 billion, up 6.2% vs. 2011 • Net interest income growth of 6.0% vs. 2011 • Noninterest income growth of 6.4% vs. 2011 Industry-leading profitabil
Slide 4: 4Q12 Highlights
4Q12 Earnings 4Q12 Highlights Conference Call Net income of $1.4 billion; $0.72 per diluted common share 4Q12 results included an $80 million expense accrual for a mortgage foreclosure-related regulatory settlement; reduced diluted EPS by $0.03 4Q11 results included a $263 million merchant settlemen
Slide 5: Performance Ratios
4Q12 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 incomeon a taxable-equivale
Slide 6: Revenue Growth
4Q12 Earnings Revenue Growth Conference Call $ in millions * Gain on merchant processing agreement settlement 6 Taxable-equivalent basis
Slide 7: Loan and Deposit Growth
4Q12 Earnings Loan and Deposit Growth Conference Call $ in billions Average Balances Year-Over-Year Growth 7
Slide 8: Credit Quality
4Q12 Earnings Credit Quality Conference Call $ in millions 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 agreementswith FDIC) ** Relatedto a regulatory cla
Slide 9: Earnings Summary
4Q12 Earnings Earnings Summary Conference Call $ in millions, except per-share data % B/(W) FY FY 4Q12 3Q12 4Q11 vs 3Q12 vs 4Q11 2012 2011 % B/(W) Net Interest Income $ 2,783 $ 2,783 $ 2,673 - 4.1 $ 10,969 $ 10,348 6.0 Noninterest Income 2,329 2,396 2,431 (2.8) (4.2) 9,319 8,760 6.4 Total Revenue 5,
Slide 10: Notable Items
4Q12 Earnings Notable Items Conference Call $ in millions 4Q12 4Q11 Revenue Items Merchant processing agreement settlement $ - $ 263 Expense Items Mortgage servicing matters 80 130 10
Slide 11: 4Q12 Results - Key Drivers
4Q12 Earnings 4Q12 Results - Key Drivers Conference Call vs. 4Q11 Net Revenue growth of 0.2% (5.6% excluding notable items) • Net interest income growth of 4.1%; net interest margin of 3.55% vs. 3.60% in 4Q11 • Noninterest income decline of 4.2% (7.4% increase excluding notable items) Noninterest ex
Slide 12: Capital Position
4Q12 Earnings Capital Position Conference Call $ in billions 4Q12 3Q12 2Q12 1Q12 4Q11 Shareholders' equity $ 39.0 $ 38.7 $ 37.8 $ 35.9 $ 34.0 Tier 1 capital 31.2 30.8 30.0 30.0 29.2 Total risk-based capital 37.8 37.6 36.4 36.4 36.1 Tier 1 common equity ratio 9.0% 9.0% 8.8% 8.7% 8.6% Tier 1 capital r
Slide 13: Mortgage Repurchase
4Q12 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 4Q12 3Q12 2Q12 1Q12 4Q11 • Conservative credit and underwriting culture Beginning Reserve $220 $21
Slide 14: Momentum continues
Momentum Allof us serving your us bancorp
Slide 15: Appendix
4Q12 Earnings Conference Call Appendix 15
Slide 16: Average Loans
4Q12 Earnings Average Loans Conference Call $ in billions Average Loans Key Points vs. 4Q11 Average total loans grew over $13 billion, or 6.4% Average total loans, excluding covered loans, were higher by 8.6% Average total commercial loans increased $8.7 billion, or 15.7%; average residential mortga
Slide 17: Average Deposits
4Q12 Earnings Average Deposits Conference Call $ in billions Average Deposits Key Points vs. 4Q11 Average total deposits increased by $20.5 billion, or 9.2% Average low cost deposits (NIB, interest checking, money market and savings) increased by $16.8 billion, or 9.3% vs. 3Q12 Average total deposit
Slide 18: Net Interest Income
4Q12 Earnings Net Interest Income Conference Call $ in millions Net Interest Income Key Points vs. 4Q11 Average earning assets grew by $17.1 billion, or 5.8% Net interest margin lower by 5 bp (3.55% vs. 3.60%) driven by: • Higher balances in lower yielding investment securities and lower loan rates
Slide 19: Noninterest Income
4Q12 Earnings Noninterest Income Conference Call $ in millions Noninterest Income Key Points vs. 4Q11 Noninterest income declined by $102 million, or 4.2%, driven by: • Lower other income due to the merchant settlement gain as well as a gain related to the Company’s investment in Visa, both of which
Slide 20: Noninterest Expense
4Q12 Earnings Noninterest Expense Conference Call $ in millions Noninterest Expense Key Points vs. 4Q11 Noninterest expense was lower by $10 million, or 0.4%, driven by: • Lower other expense due to the $130 million mortgage- servicing related expense accrual recorded in 4Q11 partially offset by the
Slide 21: Credit Quality - Commercial Loans
4Q12 Earnings Credit Quality - Commercial Loans Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q11 3Q12 4Q12 Average Loans $49,437 $56,655 $58,552 30-89 Delinquencies 0.48% 0.29% 0.48% 90+ Delinquencies 0.09% 0.07% 0.10% Nonperforming Loans 0.55% 0.23% 0.18% R
Slide 22: Credit Quality - Commercial Leases
4Q12 Earnings Credit Quality - Commercial Leases Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q11 3Q12 4Q12 Average Loans $5,834 $5,537 $5,377 30-89 Delinquencies 0.96% 0.93% 0.89% 90+ Delinquencies 0.00% 0.02% 0.00% Nonperforming Loans 0.54% 0.35% 0.29% Com
Slide 23: Credit Quality - Commercial Real Estate
4Q12 Earnings Credit Quality - Commercial Real Estate Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q11 3Q12 4Q12 Average Loans $35,802 $36,630 $36,851 30-89 Delinquencies 0.38% 0.18% 0.43% 90+ Delinquencies 0.04% 0.03% 0.02% Nonperforming Loans 2.51% 1.71% 1
Slide 24: Credit Quality - Residential Mortgage
4Q12 Earnings Credit Quality - Residential Mortgage Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q11 3Q12 4Q12 Average Loans $36,256 $40,969 $43,156 30-89 Delinquencies 1.09% 0.93% 0.79% 90+ Delinquencies 0.98% 0.72% 0.64% Nonperforming Loans 1.75% 1.81% 1.5
Slide 25: Credit Quality - Credit Card
4Q12 Earnings Credit Quality - Credit Card Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q11 3Q12 4Q12 Average Loans $16,271 $16,551 $16,588 30-89 Delinquencies 1.37% 1.41% 1.33% 90+ Delinquencies 1.36% 1.18% 1.27% Nonperforming Loans 1.29% 0.99% 0.85% Commen
Slide 26: Credit Quality - Home Equity
4Q12 Earnings Credit Quality - Home Equity Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q11 3Q12 4Q12 Average Loans $18,281 $17,329 $16,950 30-89 Delinquencies 0.90% 0.81% 0.76% 90+ Delinquencies 0.73% 0.32% 0.30% Nonperforming Loans 0.22% 1.05% 1.13% Commen
Slide 27: Credit Quality - Retail Leasing
4Q12 Earnings Credit Quality - Retail Leasing Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q11 3Q12 4Q12 Average Loans $5,150 $5,256 $5,384 30-89 Delinquencies 0.19% 0.17% 0.22% 90+ Delinquencies 0.02% 0.02% 0.02% Nonperforming Loans 0.00% 0.02% 0.02% Commen
Slide 28: Credit Quality - Other Retail
4Q12 Earnings Credit Quality - Other Retail Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 4Q11 3Q12 4Q12 Average Loans $24,901 $25,406 $25,595 30-89 Delinquencies 0.68% 0.59% 0.59% 90+ Delinquencies 0.20% 0.16% 0.17% Nonperforming Loans 0.11% 0.12% 0.11% Comme
Slide 29: Non-GAAP Financial Measures
4Q12 Earnings Non-GAAP Financial Measures Conference Call $ in millions 4Q12 3Q12 2Q12 1Q12 4Q11 Total equity $ 40,267 $ 39,825 $ 38,874 $ 36,914 $ 34,971 Preferred stock (4,769) (4,769) (4,769) (3,694) (2,606) Noncontrolling interests (1,269) (1,164) (1,082) (1,014) (993) Goodwill (net of deferred
Slide 30: U.S. Bancorp 4Q12 Earnings Conference Call
U.S. Bancorp 4Q12 Earnings Conference Call January 16, 2013