U.s. Bancorp · NYSE:USB
U.s. Bancorp — Shareholder Meeting (April 2016)
56 slides from U.s. Bancorp's shareholder meeting presentation, Apr 19, 2016
Slide 1: U.S. Bancorp Annual Meeting of Shareholders
U.S. Bancorp Annual Meeting of Shareholders Denver, Colorado Richard K. Davis Chairman and CEO
Slide 2: Disclaimer
Disclaimer 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 statements about beliefs and expectations, ar
Slide 3: Color Guard and National Anthem
Color Guard VFW John S. Stewart Post #1 National Anthem Mindy Hahn Community Development Corporation U.S. BANK | 3
Slide 4: Agenda
Agenda Call to Order Voting and Collection of Ballots • Election of Directors • Ratification of Independent Auditor • Advisory Vote to Approve Executive Compensation • Shareholder Proposals Management Report Question and Answer Session
Slide 5: Management Report
Management Report (Sbancorp.
Slide 6: Congratulations, Denver Broncos!
Congratulations, Denver Broncos! U.S. BANK | 6
Slide 7: Bank of the Broncos
Bank of the Broncos U.S. BANK | 7
Slide 8: U.S. Bank's Beginning in Denver
U.S. Bank’s Beginning in Denver Founded in 1862 U.S. BANK | 8
Slide 9: U.S. Bank's Presence in Denver
U.S. Bank’s Presence in Denver • 2,060 employees • 295,312 Consumer Banking customers • 49,710 Business Banking customers Source: Company reports U.S. BANK | 9
Slide 10: U.S. Bank's Denver Advisory Board
U.S. Bank’s Denver Advisory Board Luis Colon Mark Honnen Jeff Ross Managing Partner CEO CEO Xcelente Global Ltd. Honnen Equipment Company Ross Aviation Don Cook Jeff Jones Chuck Ward CEO Retired President and CEO Retired President DPC Companies Vail Resorts Qwest Communications Ed Haselden Donna Lyn
Slide 11: Denver Market President Hassan Salem
Denver Market President Hassan Salem Denver Center for the Performing Arts (Board Member) The Colorado Bankers Association (Board Member) Boy Scouts of America, Denver Area Council (Board of Trustees) Denver Metro Chamber of Commerce (Past Chairman of the Board) U.S. BANK | 11
Slide 12: U.S. Bank's Volunteerism in Denver
U.S. Bank’s Volunteerism in Denver More than 4,000 service hours in 2015 U.S. BANK | 12
Slide 13: Thanks, Will Nicholson!
Thanks, Will Nicholson! Former Chairman, Chief Executive Officer and President of Colorado National Bankshares, Inc. U.S. BANK | 13
Slide 14: Honoring Those Who Serve
Honoring Those Who Serve U.S. BANK | 14
Slide 15: Honoring Those Who Serve
Honoring Those Who Serve United States Army Aaron Kyle Gary Piotraschke Nicholas Giggey Brian Keefer Gladys Murcia Ralph Schreffler Clinton Gershenson Jedediah Remmey Robert Scott Deanna McIntyre Jim Bedson Shawn Feindel Engels Nunez Joshua Curry Stephen Kardatzke Flint Mulder Lea Gould Thomas Fedak
Slide 16: Honoring Those Who Serve
Honoring Those Who Serve United States Army & United States Army & United States Army Reserve United States Army National Guard Thomas Gibson Chris Burris Regina Bryant Erick Kidd Scott Macinnes United States Army & United States Army National Guard United States Navy Paul Tysinger Marcelino Rodrigu
Slide 17: Honoring Those Who Serve
Honoring Those Who Serve United States Air Force United States Marine Corps Dean Snow James Johnson Robert D'Attilo Joel Cervantes Christine Hernandez Robert Provencher Derek Womeldorff Dallas Chestine Ron Miller Jan Heidecker Scott Gajeski William Barrett Keith Evans Anessa Touzi David Miller Logan
Slide 18: Honoring Those Who Serve
Honoring Those Who Serve United States Navy United States Navy & Charles Glenn Vincent Renn United States Navy Reserve Russell Klein Russell Cleveland David Bruni Scott Phillips Cornelius Morris Lisa Lyon Richard Schromm George Jones Aaron Duran Carlos Hernandez Denise Gutierrez-Kraffert Mark Pickel
Slide 19: Honoring Years of Service
Honoring Years of Service U.S. BANK | 19
Slide 20: Long-Term Employees
Long-Term Employees 20 Years 25 Years 30 Years 35 Years 40 Years Della Whitt Barbara Madrid Jennifer Aro Mary Bixler Vic Harwood Alphonso Hawkins Michelle Baca Susan Benda Susan Hungerford Dori Clutter Michael Steidl Linda Mills Paul Brockmann Scott Karish Nancy Northrup Mark Thompson Gretchen Minto
Slide 21: U.S. Bancorp Board of Directors: Retiring Members
U.S. Bancorp Board of Directors Retiring Board Members Joel W. Johnson Patrick T. Stokes Retired Chairman and CEO Former Chairman and CEO Hormel Foods Corporation Anheuser-Busch Companies, Inc. U.S. BANK | 21
Slide 22: U.S. Bancorp Board of Directors: New Members
U.S. Bancorp Board of Directors New Board Members Warner L. Baxter Marc N. Casper Karen S. Lynch Chairman, President and CEO President and CEO President Ameren Corporation Thermo Fisher Scientific Inc. Aetna Inc. U.S. BANK | 22
Slide 23: U.S. Bancorp Board of Directors
U.S. Bancorp Board of Directors Richard K. Davis Arthur D. Collins, Jr. Chairman and CEO Retired Chairman and CEO U.S. Bancorp Medtronic, Inc. Lead Director U.S. BANK | 23
Slide 24: U.S. Bancorp Board of Directors
U.S. Bancorp Board of Directors Douglas M. Baker, Jr. Kimberly J. Harris Roland A. Hernandez Chairman and CEO President and CEO Founding Principal and CEO Ecolab Inc. Puget Energy, Inc. & Hernandez Media Ventures Puget Sound Energy, Inc. U.S. BANK | 24
Slide 25: U.S. Bancorp Board of Directors
U.S. Bancorp Board of Directors Doreen Woo Ho Olivia F. Kirtley David B. O’Maley Commissioner President Retired Chairman, President and CEO San Francisco International Federation of Ohio National Financial Port Commission Accountants Services Inc. U.S. BANK | 25
Slide 26: U.S. Bancorp Board of Directors
U.S. Bancorp Board of Directors O’dell M. Owens, Craig D. Schnuck Scott W. Wine M.D., M.P.H. Former Chairman and CEO Chairman and CEO Schnuck Markets, Inc. Polaris Industries Inc. Medical Director Cincinnati Health Department U.S. BANK | 26
Slide 27: Managing Committee
Managing Committee Richard K. Davis John R. Elmore Katherine B. Quinn Chairman Vice Chairman Executive Vice President Chief Executive Officer Community Banking Chief Strategy and Reputation and Branch Delivery Officer Andrew Cecere Leslie V. Godridge Kathleen A. Rogers President Vice Chairman Vice C
Slide 28: Scale
Scale Fifth largest commercial bank in the United States Assets: $422 billion Deposits: $300 billion Loans: $261 billion Customers: 18.5 million ATMs: 4,936 Founded: 1863 Branches: 3,133 As of 12/31/15 U.S. BANK | 28
Slide 29: Market Capitalization
Market Capitalization U.S. BANK | 29
Slide 30: Scope
National International Consumer & Business Banking Wholesale Banking Payments and Securities Services and Wealth Management and Wealth Management & Securities Services Pi. . (Sbancorp. U.S. BANK | 30
Slide 31: Peer Banks
Peer Banks J.P. Morgan KeyCorp PNC Wells Fargo Fifth Third BBT Bank of America Regions SunTrust U.S. BANK | 31
Slide 32: Growth: Average Loans and Deposits
Growth Average Loans Average Deposits 2010 Avg Loans 2015 Avg Loans 2010 Avg Deposits 2015 Avg Deposits $193 billion $250 billion $185 billion $287 billion 2% 10% 13% 12% 24% 24% 22% 15% 7% 34% 28% 9% 18% 27% 60% 54% 24% 17% Commercial Noninterest Bearing USB +30% Commercial Real Estate USB +55% Che
Slide 33: Growth: Total Revenue
Growth Total Revenue 2010 Revenue 2015 Revenue $18.1 billion $20.3 billion 28% 31% 9% 11% 19% 44% 41% 17% Payment Services USB +12% Consumer and Small Business Banking Wholesale Banking and Commercial Real Estate Peer -5% Wealth Management and Securities Services Source: SNL; Peer banks: BAC, BBT, M
Slide 34: Loans and Deposits Year-over-Year Growth
Year-over-Year Growth 300 8% 7% 6% 6% 267 4%* 287 250 11% 6% 250 7% 250 4% 15% 236 227 242 In billions 200 213 215 201 150 Loans Deposits 100 50 0 2011 2012 2013 2014 2015 * Loan growth excludes student loans, which were transferred to held for sale at the end of 1Q15 and returned to held for invest
Slide 35: 2015 Performance vs. Peers: Return on Average Assets
2015 Performance vs. Peers Return on Average Assets 1.44% 1.32% 1.22% 1.16% 1.06% 1.02% 0.99% 0.97% 0.87% 0.74% USB P1 P2 P3 P4 P5 P6 P7 P8 P9 Source: Company reports U.S. BANK | 35
Slide 36: 2015 Performance vs. Peers: Return on Average Common Equity
2015 Performance vs. Peers Return on Average Common Equity 14.0% 12.7% 11.3% 10.4% 9.5% 8.6% 8.5% 8.3% 6.3% 6.2% USB P1 P2 P3 P4 P5 P6 P7 P8 P9 Source: Company reports U.S. BANK | 36
Slide 37: 2015 Performance vs. Peers: Efficiency Ratio
2015 Performance vs. Peers Efficiency Ratio 69.5% 64.2% 66.5% 66.7% 61.5% 62.5% 63.3% 57.7% 57.7% 53.8% USB P1 P2 P3 P4 P5 P6 P7 P8 P9 Source: Company reports Efficiency ratio computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent basis and noninterest inco
Slide 38: Performance vs. Peers Since 1/1/08
Performance vs. Peers Since 1/1/08 Return on Average Assets 1.41% 1.24% 1.13% 0.92% 0.79% 0.75% 0.50% 0.26% 0.30% -0.28% USB P1 P2 P3 P4 P5 P6 P7 P8 P9 Return on Average Common Equity 14.2% 12.0% 9.6% 8.9% 8.2% 6.6% 4.0% 2.2% 1.7% -3.2% USB P1 P2 P3 P4 P5 P6 P7 P8 P9 Efficiency Ratio 68.1% 69.3% 69.
Slide 39: Debt Ratings
Debt Ratings Holding Moody’s S&P Fitch DBRS Company USB A1 (s) A+ (s) AA (s) AA (s) WFC A2 (s) A (s) AA- (s) AA (s) BBT A2 (s) A- (s) A+ (s) A(H) (s) JPM A3 (s) A- (s) A+ (s) A(H) (op) PNC A3 (s) A- (s) A+ (s) A(H) (s) BAC Baa1 (s) BBB+ (s) A (s) A(L) (op) FITB Baa1 (s) BBB+ (s) A (s) A(L) (s) STI B
Slide 40: Capital Management
Capital Management Earnings Distribution Target Payout Ratio Reinvest and Dividends Share 71% 72% 72% Acquisitions Repurchases 62% 42% 41% 40% 35% 20-40% 30-40% 30-40% 27% 29% 31% 32% Dividend increase Stock Buyback 2012 2013 2014 2015 +4.1% $3.0 billion $1.02 Annual per Five-quarter Dividends Share
Slide 41: Total Shareholder Return
Total Shareholder Return 1 Year 5 Year 10 Year U.S. Bancorp -2.8% 12.1% 6.6% KBW Bank Index 0.5% 9.1% -1.1% (BKX) S&P 500 Index 1.4% 12.6% 7.3% U.S. BANK | 41
Slide 42: U.S. Bancorp's Strategy
U.S. Bancorp’s Strategy U.S. BANK | 42
Slide 43: Most Trusted Choice
U.S. Bancorp’s Strategy Most Trusted Choice U.S. BANK | 43
Slide 44: Unified Customer Experience
U.S. Bancorp’s Strategy Unified Customer Experience U.S. BANK | 44
Slide 45: Better Every Day
U.S. Bancorp’s Strategy Better Every Day U.S. BANK | 45
Slide 46: Growth
U.S. Bancorp’s Strategy Growth U.S. BANK | 46
Slide 47: 2016 World's Most Ethical Company
U.S. Bank named a 2016 World’s Most Ethical Company for the second consecutive year, and the largest U.S.-based bank to ever make the list. U.S. BANK | 47
Slide 48: Most Admired Super-regional Bank
We scored in the Top 10 of the most admired companies in all industries in our management quality –outperforming some of the most well-known brands in the world: named U.S. Bancorp the 1. Apple 2. Starbucks #1 Most Admired 3. Walt Disney Super-regional Bank 4. Goldman Sachs Group 5. U.S. Bancorp for
Slide 49: The Power of Possible
USbank. the POWER of POSSIBLE... (Sbancorp. U.S. BANK a
Slide 50: Community Possible: Our communities. Our commitment.
Community Possible Our communities. Our commitment. U.S. BANK | 50
Slide 51: The Community Possible Relay
The Community Possible Relay will serve as the tangible and iconic beacon of U.S. Bank’s corporate giving relay. U.S. BANK | 51
Slide 52: Community Possible Relay
Community Possible Relay U.S. BANK | 52
Slide 53: Introducing the Power of Possible
Introducing the Power of Possible
Slide 54: U.S. BANK | 54
U.S. BANK | 54
Slide 55: Annual Meeting of Shareholders
Annual Meeting of Shareholders
Slide 56: USbank. The Power of Possible
USbank. the POWER of POSSIBLE... (Sbancorp.