31 slides from U.s. Bancorp's earnings presentation, Apr 17, 2012
Slide 1: U.S. Bancorp 1Q12 Earnings Conference Call
Exhibit 99.2 U.S. Bancorp 1Q12 Earnings Conference Call Richard K. Davis Chairman, President and CEO Andy Cecere April 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: 1Q12 Highlights
1Q12 Earnings 1Q12 Highlights Conference Call Net income of $1.3 billion; $0.67 per diluted common share Total net revenue of $4.9 billion, up 9.1% vs. 1Q11 • Net interest income growth of 7.3% vs. 1Q11 • Noninterest income growth of 11.3% vs. 1Q11 Average loan growth of 6.4% vs. 1Q11 and average lo
Slide 4: Performance Ratios
1Q12 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: Capital Position
1Q12 Earnings Capital Position Conference Call $ in billions 1Q12 4Q11 3Q11 2Q11 1Q11 Shareholders' equity $ 35.9 $ 34.0 $ 33.2 $ 32.5 $ 30.5 Tier 1 capital 30.0 29.2 28.1 27.8 26.8 Total risk-based capital 36.4 36.1 35.4 35.1 34.2 Tier 1 common equity ratio 8.7% 8.6% 8.5% 8.4% 8.2% Tier 1 capital r
Slide 6: Capital Actions
1Q12 Earnings Capital Actions Conference Call Dividend increase and share repurchase authorization th announced March 13 • Annual dividend raised from $0.50 to $0.78, a 56% increase • One year share repurchase authorization of 100 million shares Earnings Distribution 6
Slide 7: Loan and Deposit Growth
1Q12 Earnings Loan and Deposit Growth Conference Call $ in billions Average Balances Year-Over-Year Growth 1Q12 Acquisition Adjusted Loan Growth = 6.3% Deposit Growth = 11.6% 11.7% 17.3% $228.3 17.9% $223.3 14.2% $215.4 6.4% 11.9% 5.9% $209.4 5.0% $210.2 2.4% $204.3 4.0% $207.0 $202.2 $197.6 $198.8
Slide 8: Revenue Growth
1Q12 Earnings Revenue Growth Conference Call $ in millions Year-Over-Year Growth 4.6% 3.8% 4.5% 8.1% 9.1% $5,104 $4,929 $4,795 $4,690 $4,519 * Gain on merchant processing agreement settlement 8 Taxable-equivalent basis
Slide 9: Credit Quality
1Q12 Earnings Credit Quality Conference Call $ in millions Change in Net Charge-offs Change in Nonperforming Assets* -2% -11% -6% -14% -7% -10% -7% -8% -7% -5% -6% -5% -6% -7% -15%-6% 30% 35% 26% 27% 25% 18% 12% 7% 2% 22% 34% 31% 33% 37% 23% 12% 5% 2% NCO $ Change (Left Scale) NPA $ Change (Left Sca
Slide 10: Credit Quality - Outlook
1Q12 Earnings Credit Quality - Outlook Conference Call The Company expects the level of Net Charge-offs to trend modestly lower and Nonperforming Assets to trend lower during 2Q12 Delinquencies* Changes in Criticized Assets* 30 to 89 days 90+ days * Excluding Covered Assets (assets subject to loss s
Slide 11: Earnings Summary
1Q12 Earnings Earnings Summary Conference Call $ in millions, except per-share data % B/(W) 1Q12 4Q11 1Q11 vs 4Q11 vs 1Q11 Net Interest Income $ 2,690 $ 2,673 $ 2,507 0.6 7.3 Noninterest Income 2,239 2,431 2,012 (7.9) 11.3 Total Revenue 4,929 5,104 4,519 (3.4) 9.1 Noninterest Expense 2,560 2,696 2,3
Slide 12: 1Q12 Results - Key Drivers
1Q12 Earnings 1Q12 Results - Key Drivers Conference Call vs. 1Q11 Net Revenue growth of 9.1% (10.2% growth excluding notable items) • Net interest income growth of 7.3%; net interest margin of 3.60% vs. 3.69% • Noninterest income growth of 11.3% (13.9% growth excluding notable items) Noninterest exp
Slide 13: Notable Items
1Q12 Earnings Notable Items Conference Call $ in millions 1Q12 4Q11 1Q11 Revenue Items Merchant processing agreement settlement $ - $ 263 $ - Gain related to FCB acquisition - - 46 Expense Items Mortgage servicing matters - 130 - 1Q12 Accounting Classification Changes • Credit card balance transfer
Slide 14: Net Interest Income
1Q12 Earnings Net Interest Income Conference Call $ in millions Net Interest Income Key Points Year-Over-Year Growth vs. 1Q11 4.3% 5.6% 5.9% 7.0% 7.3% Average earning assets grew by $26.1 billion, or 9.5% Net interest margin lower by 9 bp (3.60% vs. 3.69%) driven by: • Higher balances in lower yield
Slide 15: Average Loans
1Q12 Earnings Average Loans Conference Call $ in billions Average Loans Key Points Year-Over-Year Growth vs. 1Q11 2.4% 4.0% 5.0% 5.9% 6.4% Average total loans grew by $12.6 billion, or 6.4% $202.2 $207.0 $210.2 Average total loans, excluding covered loans, $197.6 $198.8 were higher by 8.7% Retail Av
Slide 16: Average Deposits
1Q12 Earnings Average Deposits Conference Call $ in billions Average Deposits Key Points Year-Over-Year Growth vs. 1Q11 11.9% 14.2% 17.9% 17.3% 11.7% Average total deposits increased by $24.0 billion, or 11.7% $223.3 $228.3 $215.4 $204.3 $209.4 Average low cost deposits (NIB, interest Noninterest -b
Slide 17: Noninterest Income
1Q12 Earnings Noninterest Income Conference Call $ in millions Noninterest Income Key Points vs. 1Q11 Year-Over-Year Growth Noninterest income grew by $227 million, or 11.3%, driven by: 4.9% 1.7% 2.9% 9.4% 11.3% • Mortgage banking revenue increase of $253 million $2,431 • Merchant processing service
Slide 18: Noninterest Expense
1Q12 Earnings Noninterest Expense Conference Call $ in millions Noninterest Expense Key Points vs. 1Q11 Year-Over-Year Growth Noninterest expense was higher by $246 million, 8.3% 2.0% 3.8% 8.5% 10.6% or 10.6%, driven by: $2,696 • Increased compensation (9.7%) and employee $2,560 $2,425 $2,476 benefi
Slide 19: Mortgage Repurchase
1Q12 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 1Q12 4Q11 3Q11 2Q11 1Q11 • Conservative credit and underwriting culture Beginning Reserve $160 $16
Slide 20: Momentum continues
Momentum y All of a serving you us bancorp
Slide 21: Appendix
1Q12 Earnings Conference Call Appendix 21
Slide 22: Credit Quality - Commercial Loans
1Q12 Earnings Credit Quality - Commercial Loans Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q11 4Q11 1Q12 Average Loans $42,683 $49,437 $51,309 30-89 Delinquencies 0.58% 0.48% 0.30% 90+ Delinquencies 0.13% 0.09% 0.08% Nonperforming Loans 1.02% 0.55% 0.53% C
Slide 23: Credit Quality - Commercial Leases
1Q12 Earnings Credit Quality - Commercial Leases Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q11 4Q11 1Q12 Average Loans $6,030 $5,834 $5,822 30-89 Delinquencies 1.18% 0.96% 0.89% 90+ Delinquencies 0.03% 0.00% 0.00% Nonperforming Loans 0.90% 0.54% 0.54% Com
Slide 24: Credit Quality - Commercial Real Estate
1Q12 Earnings Credit Quality - Commercial Real Estate Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q11 4Q11 1Q12 Average Loans $35,179 $35,802 $35,985 30-89 Delinquencies 0.74% 0.38% 0.45% 90+ Delinquencies 0.02% 0.04% 0.04% Nonperforming Loans 4.15% 2.51% 2
Slide 25: Credit Quality - Residential Mortgage
1Q12 Earnings Credit Quality - Residential Mortgage Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q11 4Q11 1Q12 Average Loans $31,777 $36,256 $37,831 30-89 Delinquencies 1.22% 1.09% 0.95% 90+ Delinquencies 1.33% 0.98% 0.79% Nonperforming Loans 2.12% 1.75% 1.7
Slide 26: Credit Quality - Credit Card
1Q12 Earnings Credit Quality - Credit Card Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q11 4Q11 1Q12 Average Loans $16,124 $16,271 $16,778 30-89 Delinquencies 1.44% 1.37% 1.26% 90+ Delinquencies 1.62% 1.36% 1.33% Nonperforming Loans 1.61% 1.29% 1.25% Averag
Slide 27: Credit Quality - Home Equity
1Q12 Earnings Credit Quality - Home Equity Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q11 4Q11 1Q12 Average Loans $18,801 $18,281 $17,933 30-89 Delinquencies 0.81% 0.90% 0.82% 90+ Delinquencies 0.71% 0.73% 0.68% Nonperforming Loans 0.23% 0.22% 0.23% Tradit
Slide 28: Credit Quality - Retail Leasing
1Q12 Earnings Credit Quality - Retail Leasing Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q11 4Q11 1Q12 Average Loans $4,647 $5,150 $5,095 30-89 Delinquencies 0.26% 0.19% 0.12% 90+ Delinquencies 0.04% 0.02% 0.02% Nonperforming Loans --% --% --% Comments Ave
Slide 29: Credit Quality - Other Retail
1Q12 Earnings Credit Quality - Other Retail Conference Call $ in millions Average Loans and Net Charge-offs Ratios Key Statistics 1Q11 4Q11 1Q12 Average Loans $24,691 $24,901 $24,902 30-89 Delinquencies 0.63% 0.68% 0.51% 90+ Delinquencies 0.25% 0.20% 0.17% Nonperforming Loans 0.13% 0.11% 0.10% Auto
Slide 30: Non-GAAP Financial Measures
1Q12 Earnings Non-GAAP Financial Measures Conference Call $ in millions 1Q12 4Q11 3Q11 2Q11 1Q11 Total equity $ 36,914 $ 34,971 $ 34,210 $ 33,341 $ 31,335 Preferred stock (3,694) (2,606) (2,606) (2,606) (1,930) Noncontrolling interests (1,014) (993) (980) (889) (828) Goodwill (net of deferred tax li
Slide 31: U.S. Bancorp 1Q12 Earnings Conference Call
U.S. Bancorp 1Q12 Earnings Conference Call April 17, 2012