U.s. Bancorp · NYSE:USB
U.s. Bancorp — Barclays Americas Select Franchise Conference 2016
35 slides from U.s. Bancorp's conference presentation, May 16, 2016
Slide 1: Barclays Americas Select Franchise Conference 2016
Barclays Americas Select Franchise Conference 2016 Andy Cecere President and COO May 17, 2016 Kathy Rogers Vice Chairman and CFO Exhibit 99.1
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: Agenda
Agenda Overview Business Lines Innovation Financial Management Capital Management 2Q16 Update
Slide 4: U.S. Bancorp 1Q16 Dimensions
U.S. Bancorp 1Q16 Dimensions Market value as of May 6, 2016 NYSE TradedUSB Founded1863 Market Value$72B Branches3,129 ATMs4,954 Customers18.6M Assets$429B Deposits$306B Loans$265B
Slide 5: Industry Position
Industry Position Source: company reports, SNL and FactSet Assets and deposits as of March 31, 2016, market value as of May 6, 2016 Assets Market Value Deposits
Slide 6: U.S. Bancorp European Presence
U.S. Bancorp European Presence European Offices Elavon Corporate Trust/Fund Services Cherrywood Dublin Arklow London Diegem Frankfurt Oslo Warsaw Madrid Watford
Slide 7: European Merchant Customers
European Merchant Customers
Slide 8: Agenda
Agenda Overview Business Lines Innovation Financial Management Capital Management 2Q16 Update
Slide 9: Our Business Mix and Product Delivery
Our Business Mix and Product Delivery Payment Services Wealth Management & Securities Services Retail Payment Solutions, Global Merchant Acquiring and Corporate Payment Solutions Provides a full suite of payment processing services to consumers, small businesses, corporations, government and merchan
Slide 10: Payment Services
Payment Services Competitive Advantages Highly capital and operationally efficient Proprietary scalable, flexible platforms Financial institution/partner distribution Successful innovation program Scale #6 U.S. credit card issuer$68 billion #5 U.S. debit card issuer$62 billion #3 U.S. corporate card
Slide 11: Wealth Management and Securities Services
Wealth Management and Securities Services Scale $128 billion in assets under management and $5.4 trillion in assets under administration #2 U.S. corporate trustee #1 U.S. municipal trustee #1 U.S. structured trustee #3 third party mutual fund servicer Wealth Management 40% Fund Services 19% Corporat
Slide 12: Consumer and Small Business Banking
Consumer and Small Business Banking Competitive Advantages Community banking model supported by scale Robust branch-based small business strategy Omnichannel approach enhancing customer experience Real time payment capabilities Scale #4 branch network across 25 contiguous state footprint #3 SBA lend
Slide 13: Wholesale Banking and Commercial Real Estate
Wholesale Banking and Commercial Real Estate Corporate Banking 63% Commercial Real Estate 20% Commercial Banking 17% Wholesale Banking and Commercial RE Revenue Mix Sources: E&Y, Thomson Reuters based on deal count Revenue contribution and mix FY2015; Revenue contribution percentages exclude Treasur
Slide 14: Agenda
Agenda Overview Business Lines Innovation Financial Management Capital Management 2Q16 Update
Slide 15: Innovation: Real Time P2P Payments
Innovation: Real Time P2P Payments Innovation is key to winning marquee business Bank Innovation called U.S. Bank “arguably the most forward-thinking major financial institution in the United States” Corporate Insights named U.S. Bank a “Mobile Leader” in March 2016
Slide 16: Innovation: New Branch Formats
Innovation: New Branch Formats Advice center External customer development Branch manager spends 50% of time in the community Central point of contact for retail, business banking, and wealth management
Slide 17: Innovation: Aviation Fuel Payments
Innovation: Aviation Fuel Payments MSA Pay is the first mobile app in the general aviation space Simple, secure and efficient cardless payments for fueling, catering and other services Enables paperless approval and invoicing Awarded for uniqueness, value, “stickiness,” ease of use and “wow” factor
Slide 18: Agenda
Agenda Overview Business Lines Innovation Financial Management Capital Management 2Q16 Update
Slide 19: Revenue Diversification
Revenue Diversification Revenue Mix By Business Line Consumer and Small Business Banking 41% Payment Services 31% Wealth Mgmt and Securities Services 11% Wholesale Banking and Commercial Real Estate 17% FY2015 taxable-equivalent basis Business line revenue percentages exclude Treasury and Corporate
Slide 20: Performance vs. Peers
Performance vs. Peers Return on Average Assets Return on Average Common Equity Efficiency Ratio 1Q08 – 1Q16 2015 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
Slide 21: Efficient Platform
Efficient Platform Single processing platforms Full consolidation of acquisitions Operating scale in all significant businesses Business line monthly review process Ongoing efficiency efforts Source of Competitive Advantage Source: SNL and company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC,
Slide 22: Long-term Growth: Loans, Deposits and Revenue vs. Peers
Source: SNL; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Revenue contribution percentages exclude Treasury and Corporate Support (see slide 34) *TTM = trailing twelve months Commercial Commercial Real Estate Res Mtg and Home Equity Credit Card Other Retail Covered 2010 Avg Loans $193
Slide 23: Deliberate Loan Growth
Deliberate Loan Growth – 1Q16 YoY Growth 1Q16 Avg Bal: $89.8B Yield: 2.79% 1Q16 Avg Bal: $42.4B Yield: 3.94% 1Q16 Avg Bal: $54.2B Yield: 3.76% 1Q16 Avg Bal: $20.2B Yield: 10.91% 1Q16 Avg Bal: $51.1B Yield: 4.09% Includes USB’s $1.6 billion credit card portfolio acquisition at the end of 4Q15
Slide 24: Net Interest Income & Margin
Net Interest Income & Margin Net Interest Income increase driven by: Earning assets increase of 1.4% Higher income from increase in short-term rates Partially offset by fewer days than the previous quarter Flat Net Interest Margin reflects: Higher short-term rates: +2 basis points Other: -2 basis po
Slide 25: Credit Quality
Credit Quality Net Charge-offs Nonperforming Assets Net Charge-offs (Left Scale) NCOs to Avg Loans (Right Scale) Nonperforming Assets (Left Scale) NPAs to Loans plus ORE (Right Scale) $ in millions
Slide 26: Energy Credit
Energy Credit Loans by Segment $ in millions, ending balances
Slide 27: Best in Class Debt Rating
Best in Class Debt Rating Debt ratings: holding company as of May 6, 2016 USB is the highest rated peer bank in the U.S. across all rating agencies and is recognized by S&P and Fitch as the highest rated bank globally Funding advantage Competitive advantages include pricing, flight-to-quality and sa
Slide 28: Agenda
Agenda Overview Business Lines Innovation Financial Management Capital Management 2Q16 Update
Slide 29: Capital Management
Capital Management Based on the Basel III fully implemented standardized approach Earnings Distribution Target Reinvest and Acquisitions Dividends Share Repurchases 20 - 40% 30 - 40% 30 - 40% Common Equity Tier 1 Basel III target increased 50 bps from 8.0% to 8.5%
Slide 30: Agenda
Agenda Overview Business Lines Innovation Financial Management Capital Management 2Q16 Update
Slide 31: 2Q16 Linked Quarter Update
2Q16 Linked Quarter Update Loan Growth: Approximately 1.5% growth Net Interest Margin: Relatively stable Net Interest Income: Modest growth Credit Quality: NCOs and provision expense relatively stable Mortgage Fees: Increase 10 – 20% (seasonally higher volumes) Noninterest Expense: Increase approxim
Slide 32: Appendix
Appendix —_— Uo U.S. BANCORP | 32
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures (1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements. (2) Includes net losses on cash flow hedges included in accumulated other comprehensive income (loss) and other adjustments. (3) Includes
Slide 34: Non-GAAP Financial Measures: Line of Business Financial Performance
Non-GAAP Financial Measures Line of Business Financial Performance Taxable-equivalent basis, excluding securities gains (losses) net $ in millions Revenue Revenue Revenue Line of Business Financial Performance 1Q16 TTM 2015 x 2010 x Wholesale Banking and Commercial Real Estate 2,880 $ 2,924 $ 3,131
Slide 35: Barclays Americas Select Franchise Conference 2016
Barclays Americas Select Franchise Conference 2016 May 17, 2016
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