U.s. Bancorp · NYSE:USB
U.s. Bancorp — Investor Day (September 2016)
25 slides from U.s. Bancorp's investor day presentation, September 2016
Slide 1: A lot can change in three years.
Video A lot can change in three years. U.S. BANCORP | 1
Slide 2: U.S. Bancorp: A Growth Story
U.S. Bancorp: A Growth Story Investor Day 2016
Slide 3: September 2013
September 2013 U.S. U.S. BANCORP BANCORP || 3 3
Slide 4: Environment, Industry, Customer
• Environment • Industry • Customer U.S. U.S. BANCORP BANCORP || 4 4
Slide 5: Environment: low rates, slow recovery, global instability
ENVIRONMENT Persistently low rates and flat yield curve Slowly recovering economy Global instability 5 | U.S. Bank Confidential U.S. BANCORP | 5
Slide 6: Industry: reputation recovery, regulation, market disruptors
INDUSTRY Slow reputation recovery Higher regulatory expectations and costs New market disruptors 6 | U.S. Bank Confidential U.S. BANCORP | 6
Slide 7: Customer: confidence, demographic shifts, digital life
CUSTOMER Slowly improving consumer confidence Generational and demographic shifts Life becomes digital 7 | U.S. Bank Confidential U.S. BANCORP | 7
Slide 8: September 2013 - September 2016
September 2013 - September 2016 U.S. BANCORP | 8
Slide 9: U.S. Bancorp
U.S. Bancorp NYSE Traded USB Branches 3,122 Assets $438B Founded 1863 ATMs 4,923 Deposits $318B Market Value $75B Customers 18.6M Loans $269B Market value as of September 8, 2016 U.S. BANCORP | 9
Slide 10: Optimal Business Mix
Optimal Business Mix Revenue Mix by Business Line Payment Services 31% • Balanced mix of fee revenue and balance sheet businesses Wealth Mgmt and Securities Services • High return/capital efficient businesses 11% Consumer and (Payments, Wealth Management) Wholesale Small Business Banking and Banking
Slide 11: The Perfect Position
The Perfect Position Assets Deposits Market Value U.S. U.S. U.S. Rank Company $ Billions Rank Company $ Billions Rank Company $ Billions 1 J.P. Morgan 2,466 1 J.P. Morgan 1,331 1 Wells Fargo 252 2 Bank of America 2,187 2 Wells Fargo 1,245 2 J.P. Morgan 243 3 Wells Fargo 1,889 3 Bank of America 1,216
Slide 12: Industry-leading Results
Industry-leading Results ROCE ROA Efficiency ratio USB Rank #1 USB Rank #1 USB Rank #1 13.8% 1.43% 63.0% 11.7% 1.20% 1.01% 54.9% 55.3% 8.3% USB Peer Bank Peer Bank USB Peer Bank Peer Bank USB Peer Bank Peer Bank #2 Median #2 Median #2 Median Q2 2016 results; peer banks: BAC, BBT, FITB, JPM, KEY, PNC
Slide 13: Recognized and Awarded
Recognized and Awarded • AA Long-term Debt Rating (highest-rated bank globally) – Fitch Ratings, October 2015 • Top 10 World’s Most Admired Companies – Fortune, February 2016 – Quality of Management – Value as Long-Term Investment – Soundness of Financial Position – Wise Use of Corporate Assets • Mo
Slide 14: Innovation
The past three years have informed the future Next Generation Banking Risk management Market expansion Strategy Innovation Compliance Employee engagement Leadership Digital payments Growth Brand Revenue Omnichannel Predictive analytics and insights U.S. BANCORP | 14
Slide 15: Strategy
Strategy U.S. U.S. BANCORP BANCORP || 15 15
Slide 16: We invest our hearts and minds to power human potential.
We invest our hearts and minds to power human potential. U.S. BANCORP | 16
Slide 17: Platform for Growth
Platform for Growth Our strategic plan is multi-faceted and challenging, and consistent with our purpose, core values and the discipline that brought us to a position of strength today. U.S. BANCORP | 17
Slide 18: Investor Day Themes: 2013 and 2016
Investor Day 2013 Investor Day Themes 2016 Investor Day Themes Most Trusted Choice Building on our competitive advantage • Governance • Reputation • Culture Unified Customer Experience Putting our customers at the center • Growing our business strategically • Leveraging data and insights Better Ever
Slide 19: September 2016 - September 2019
September 2016 - September 2019 U.S. BANCORP | 19
Slide 20: Environment: rates moderate, economy grows
ENVIRONMENT Interest rates moderate Economy grows Global instability remains 20 | U.S. Bank Confidential U.S. BANCORP | 20
Slide 21: Industry: reputation, regulation, disruption
INDUSTRY Reputation continues slow rebound Regulatory bar is set Disruption accelerates 21 | U.S. Bank Confidential U.S. BANCORP | 21
Slide 22: Customer: cautious optimism, demographic shifts
CUSTOMER Emergence of cautious optimism Demographic shifts become mainstream Pace of change grows exponentially 22 | U.S. Bank Confidential U.S. BANCORP | 22
Slide 23: Long-term Strategy: performance since 2013 Investor Day
Long-term Strategy Performance since 2013 Investor Day What we said in 2013 How we’ve performed since 2013 Optimal business line mix Preferred business mix with acquired portfolios in payments and securities services, exited student loan and HSA businesses Investments generating positive returns
Slide 24: Long-term Strategy: profitability expectations
Long-term Strategy Long-term profitability expectations 2013 Revised 16.5% Long-term Long-term 14.0% Expectations Expectations 13.5% 12.6% Industry Leading Returns 11.3% 10.4% 9.5% 8.6% 8.6% 8.3% Return on Assets 1.60%-1.90% 1.35%-1.65% 6.3% 6.3% Return on Equity 16.0%-19.0% 13.5%-16.5% Return on Ta
Slide 25: September 2019 Headlines
September 2019 Headlines • What made us great has made us greater • Our customers experience “one bank” • Technology and innovation drive profitability U.S. U.S. BANCORP BANCORP| | 25 25