U.s. Bancorp · NYSE:USB
U.s. Bancorp — BancAnalysts Association of Boston Conference 2023
21 slides from U.s. Bancorp's conference presentation, Nov 2, 2023
Slide 1: BancAnalysts Association of Boston Conference 2023
November 2, 2023 BancAnalysts Association of Boston Conference 2023 John Stern Senior Executive Vice President and Chief Financial Officer Gunjan Kedia Vice Chair, Wealth, Corporate, Commercial, and Institutional Banking U.S. Bank U.S. Bank 1
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: A trusted partner with a strong foundation
A trusted partner with a strong foundation NYSE Traded USB Assets $668B Assets Under Management $448B Founded 1863 Deposits $518B Assets Under Custody Market Cap $51B Loans $375B & Administration $10.3T Regional National International Branch footprint Mortgage, Wealth and Payment Services Business,
Slide 4: Well positioned for future growth
Well positioned for future growth Benefits of Cat II commitment relief... Well diversified business mix… Greater balance sheet flexibility Renewed focus on high margin / high growth business; Selective RWA Diversified fee revenues and prudent expense management will offset industry-wide pressure on
Slide 5: Our differentiated business mix supports consistent growth
Our differentiated business mix supports consistent growth Consumer & Payment Services - 25% Business Banking - 37% Wealth, Corporate, Commercial & Institutional Banking - 38% Consumer & Business Banking Wealth, Corporate, Commercial & Payment Services Institutional Banking Branch Banking, Small Bus
Slide 6: Evolution of Wealth, Corporate, Commercial, and Institutional Banking (WCIB)
Evolution of Wealth, Corporate, Commercial, and Institutional Banking (WCIB) • BofA Securitization • Union Bank Select Acquisitions Trust • PFM Asset WCIB Today • AIS Fund Admin Management • Union Bank 500k+ Institutional Trust Wealth Clients • Quintillion (Ireland) 8k+ Companies 1990s Early 2000s 2
Slide 7: Wealth, Corporate, Commercial, and Institutional Banking
Wealth, Corporate, Commercial, and Institutional Banking Traditional Loans and Wealth and Capital Markets Transaction Processing Deposits • Corporate Banking • Wealth Management • Global Corporate Trust • Commercial Banking • Capital Markets • Global Fund Services • Commercial Real Estate • Asset Ma
Slide 8: Market leading products across our footprint
Market leading products across our footprint 90% #5 #1 or #2 of Fortune 1000 companies Investment Grade Bond In Corporate Trust bank with us1 Lead and Co-Manager3 Markets we serve5 #5 #14 #6 U.S. Commercial Bank2 Money Market Fund Provider4 U.S. Custodian6 Traditional Loans and Wealth and Capital Tr
Slide 9: Track record of growth in our businesses
Track record of growth in our businesses Average Revenue1,2 ($Bn) • Strong, trusted brand WCIB combined 2018-2022 CAGR: 6.8% • Broad product set 8.3% CAGR WCIB Fee Revenue across banking and 5.8% CAGR WCIB Net Interest Income servicing capabilities $8.7 $7.0 $7.8 $7.2 $7.8 • Diversified client $6.7
Slide 10: Our breadth and scale provide robust opportunities to serve our clients
Our breadth and scale provide robust opportunities to serve our clients ✓ Full offering ✓ Partial offering Regional Products U.S. Bank Banking Peers1 WCIB Clients Institutional Banking ✓ ✓ Capital Markets ✓ ✓ Wealthy 1 Individuals ~500,000 Treasury Management ✓ ✓ Wealth Management ✓ ✓ Asset Manageme
Slide 11: Deepening client relationships, product innovation, and expanding into new markets will drive future success
Deepening client relationships, product innovation, and expanding into new markets will drive future success Deepen Client Bolster Product Expand to New Base Capabilities Markets U.S. Bank 11
Slide 12: Our holistic offering and extensive client base enable growth in Wealth Management
Wealthy Individuals 1 Our holistic offering and extensive client base enable growth in Wealth Management Today: Holistic Wealth Management Offering Transform • Team-based model of bankers & advisors Financial Pre-2018 • Shift to fee-based agency planning Credit card Private solutions banking Strengt
Slide 13: Our partnership and proactivity have enabled us to grow with our client for the last 15+ years
Companies 2 Our partnership and proactivity have enabled us to grow with our client for the last 15+ years Healthcare Technology Company Example ~15-20% Client Revenue 2019-2022 CAGR Initial Expand to core Solutions with Customized Serving our client’s Future relationship banking services dedicated
Slide 14: Private Capital: our product set is designed to complement a rapidly growing segment
Companies 2 Private Capital: our product set is designed to complement a rapidly growing segment Private Capital Segment Client Example: Private Capital Asset Manager • Private market AUM reached Banking Transaction Processing $11.7 trillion in 20221 • Redemption/Liquidity Global Fund Services Globa
Slide 15: Focused on delivering innovative products
Focused on delivering innovative products Next Generation Real-time Custody Foreign Exchange CLO1 Data Product Broker Dealer Platform Modernization Platform Data Strategies and Commodity Trading Luxembourg Office Impact Finance API2 Note(s): (1) CLO stands for Collateralized Loan Obligation; (2) API
Slide 16: We are expanding our national footprint
We are expanding our national footprint Expanded California Footprint with Union Bank Market Opportunities ME ● Acquired Locations ● U.S. Bank Locations WA MT ND VT NH MN • OR MA ID SD WI MI NY CT RI High household and WY IA PA NJ economic growth NE OH MD DE NV IL IN UT CO KS MO KY WV VA • Existing,
Slide 17: In closing
In closing • We have an enviable wealth, corporate and institutional franchise which has an increasingly national footprint. • We have a differentiated mix of fee-oriented products and solutions serving these segments; and we are investing to grow our capabilities. • Our strategy is to deepen our re
Slide 18: U.S. Bank
U.S. Bank 18
Slide 19: Appendix
Appendix U.S. Bank 19
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Nine Months Ended September 30, ($in millions) 2023 Line of Business Financial Performance Net Revenue Wealth, Corporate, Commercial and Institutional Banking $ 7,813 Consumer and Business Banking 7,669 Payment Services 5,018 Treasury and Corporate Support 882 Total Compa
Slide 21: WCIB Net Revenue Detail
WCIB Net Revenue Detail Three Months Ended September 30, June 30, September 30, ($ in millions) 2023 2023 2022 Net interest income (taxable-equivalent basis) $ 1,472 $ 1,559 $ 1,439 Noninterest income Trust and investment management fees1 Wealth management $ 157 $ 161 $ 136 U.S. Bancorp Asset Manage
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