Exhibit 99.1
| Richard K. DavisChairman, President and CEOSeptember 14, 2011 Barclays Capital 2011 Global Financial Services Conference |
| 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 statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date made. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of U.S. Bancorp. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. Global and domestic economies could fail to recover from the recent economic downturn or could experience another severe contraction, which could adversely affect U.S. Bancorp's revenues and the values of its assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Continued stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential real estate markets, could cause additional credit losses and deterioration in asset values. In addition, U.S. Bancorp's business and financial performance is likely to be negatively impacted by effects of recently enacted and future legislation and regulation. U.S. Bancorp's results could also be adversely affected by continued deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in its investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management's ability to effectively manage credit risk, residual value risk, market risk, operational risk, interest rate risk and liquidity risk. For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorp's Annual Report on Form 10-K for the year ended December 31, 2010, on file with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Corporate Risk Profile" contained in Exhibit 13, and all subsequent filings with the Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. Forward-looking statements speak only as of the date they are made, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.This presentation includes non-GAAP financial measures to describe U.S. Bancorp's performance. The reconciliations of those measures to GAAP measures are provided within or in the appendix of the presentation. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. |
| U.S. Bancorp OverviewPerformanceCurrent EnvironmentInvesting for Growth |
| U.S. Bancorp Businesses 2Q11 Dimensions Asset Size $321 billionDeposits $215 billionLoans $200 billionCustomers 17 millionNYSE Traded USBMarket Capitalization* $42 billionFounded 1863Bank Branches 3,086ATMs 5,086 * As of September 9, 2011 Overview |
| Mix of Businesses Payment ServicesRetail Payment SolutionsCorporate Payment SystemsGlobal Merchant Acquiring Wealth Managementand Securities ServicesWealth ManagementCorporate Trust ServicesFund ServicesU.S. Bancorp Asset ManagementInstitutional Trust and Custody Consumer and SmallBusiness BankingMetropolitan BankingCommunity BankingConsumer LendingMortgage BankingSmall Business Banking Wholesale Banking andCommercial Real EstateCorporate BankingCommercial BankingCommercial Real Estate 2Q11 YTD, excluding Treasury and Corporate Support Revenue MixBy Business Line Consumer Wholesale PCTAM Payments Revenue 43 20 9 28 Consumer and Small BusinessBanking43% PaymentServices28% WM&SS9% Wholesale Bankingand CommercialReal Estate20% Overview |
| U.S. Bancorp OverviewPerformanceCurrent EnvironmentInvesting for Growth |
| U.S. Bancorp Performance Date 6/30/2011 7/1/2011 7/4/2011 7/5/2011 7/6/2011 7/7/2011 7/8/2011 7/11/2011 7/12/2011 7/13/2011 7/14/2011 7/15/2011 7/18/2011 7/19/2011 7/20/2011 7/21/2011 7/22/2011 7/25/2011 7/26/2011 7/27/2011 7/28/2011 7/29/2011 8/1/2011 8/2/2011 8/3/2011 8/4/2011 8/5/2011 8/8/2011 8/9/2011 8/10/2011 8/11/2011 8/12/2011 8/15/2011 8/16/2011 8/17/2011 8/18/2011 8/19/2011 8/22/2011 8/23/2011 8/24/2011 8/25/2011 8/26/2011 8/29/2011 8/30/2011 8/31/2011 9/1/2011 9/2/2011 9/5/2011 9/6/2011 9/7/2011 9/8/2011 9/9/2011 USB 100 102.2 102.2 100.3 99.2 100.4 99.4 97.5 97.8 98.5 96.8 97 95.8 98.1 102.5 105.9 105.5 105.7 104.8 102.8 102.3 102.2 101.8 98.6 98.9 94.7 93 84.6 91.6 84 88 85.9 89.1 86.9 87.9 82.6 80.6 79.6 84.3 87.2 87.6 87.9 90.8 90.3 91 88.8 84.7 84.7 83.4 88.9 89.6 86.2 S&P 500 Index 100 101.4 101.4 101.3 101.4 102.5 101.8 99.9 99.5 99.8 99.1 99.7 98.8 100.5 100.4 101.8 101.8 101.3 100.9 98.8 98.5 97.9 97.4 95 95.4 90.9 90.8 84.8 88.8 84.9 88.8 89.3 91.2 90.3 90.4 86.4 85.1 85.1 88 89.2 87.8 89.1 91.6 91.8 92.3 91.2 88.9 88.9 88.2 90.8 89.8 87.4 BKX Index 100 101.9 101.9 100.7 100 101.7 100 97.2 97 97.3 96.1 95.8 94.4 95.7 97.1 99.4 99 98.4 98.1 95.8 95.6 95.2 95 92 92.5 87.6 85.7 76.6 81.9 75.2 79.8 78.1 81.3 79.6 80.2 75.7 73.4 72.6 75.6 78.1 77.9 78.9 82.5 81.7 82.7 80.2 76.6 76.6 75.3 79.7 77.6 75 USB86.2 SPX87.4 BKX75.0 Source: FactSet; 6/30/11 to 9/9/11, 6/30/11 = 100 Stock Market Performance Solid growth in:LoansDepositsRevenueIndustry-leadingEfficiencyProfitabilityImproving credit qualityStrong capital USB Performance |
| 2Q10 3Q10 4Q10 1Q11 2Q11 Loans 191.2 192.5 195.5 197.6 198.8 Deposits 183.3 182.7 190.3 204.3 209.4 Loan and Deposit Growth Average BalancesYear-Over-Year Growth 2Q11 Acquisition AdjustedLoan Growth = 3.5%Deposit Growth = 9.6% 2.4%$197.6 4.0%$198.8 4.0%$191.2 5.8%$192.5 2.0%$195.5 11.9%$204.3 14.2%$209.4 12.3%$183.3 9.8%$182.7 5.2%$190.3 Performance |
| Loan and Commitment Growth Performance Average balances; total loan growth above adjusted for acquisitionsReported loan growth linked quarter: 2Q10 = -0.9%, 3Q10 = 0.7%, 4Q10 = 1.5%, 1Q11 = 1.1%, 2Q11 = 0.6%Reported loan growth prior year quarter : 2Q10 = 4.0%, 3Q10 = 5.8%, 4Q10 = 2.0%, 1Q11 = 2.4%, 2Q11 = 4.0%Commitments = revolving commercial and commercial real estate only Loan and Commitment GrowthLinked Quarter Loan and Commitment GrowthPrior Year Quarter 2Q10 3Q10 4Q10 1Q11 2Q11 Total Loans -0.009 0.007 0.015 0.007 0.005 Commercial & CRE -0.011 0.006 0.016 0.019 0.02 Commitments 0.005 0.031 0.034 0.023 0.044 2Q10 3Q10 4Q10 1Q11 2Q11 Total Loans -0.027 -0.004 0.009 0.021 0.035 Commercial & CRE -0.083 -0.048 -0.021 0.03 0.063 Commitments -0.024 0.02 0.06 0.096 0.138 |
| Peer Banks Bank of America SunTrust Wells Fargo KeyCorp BBT Fifth Third Regions PNC U.S. Bancorp J.P.Morgan Peer Bank Ticker SymbolsBAC Bank of America PNC PNCBBT BB&T RF RegionsFITB Fifth Third STI SunTrustJPM J.P. Morgan USB U.S. BancorpKEY KeyCorp WFC Wells Fargo Performance |
| Loan Growth vs. Peers Average balances; USB loan growth above adjusted for acquisitions (FCB)Reported loan growth 2Q11 vs. 1Q11 = 0.6%, 2Q11 vs. 2Q10 = 4.0%Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Loan Growth 0.005 0.004 0.001 0 0 -0.001 -0.002 -0.004 -0.016 -0.017 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Deposit Growth 0.035 0.017 0.013 0.005 -0.027 -0.027 -0.03 -0.032 -0.071 -0.118 Loan Growth2Q11 vs. 1Q11 Loan Growth2Q11 vs. 2Q10 Performance |
| Deposit Growth vs. Peers Average balances; USB deposit growth above adjusted for acquisitions (FCB and BAC securitization trust business)Reported deposit growth 2Q11 vs. 1Q11 = 2.5%, 2Q11 vs. 2Q10 = 14.2%Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Peer 1 USB Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Loan Growth 0.053 0.023 0.013 0.012 0.009 0.008 0.007 0.006 0 -0.025 Peer 1 USB Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Deposit Growth 0.115 0.096 0.047 0.045 0.043 -0.006 -0.008 -0.012 -0.02 -0.091 Deposit Growth2Q11 vs. 1Q11 Deposit Growth2Q11 vs. 2Q10 Performance |
| 2007 Noninterest Bearing 33334 Savings 58298 Time 39813 Loan and Deposit Growth vs. Peers 1Q11 Noninterest Bearning 57310 Savings 112761 Time 44812 Ending Deposits4Q07$131 billion Ending Deposits2Q11$215 billion 1Q11 Commercial 50550 Commercial Real Estate 35490 Residential Mortgage and Home Equity 51707 Credit Card 16111 Other Retail 29623 Covered 16401 2007 Commercial 51074 Commercial Real Estate 29207 Residential Mortgage and Home Equity 39223 Credit Card 10956 Other Retail 23367 Covered 0 Ending Loans4Q07$154 billion Ending Loans2Q11$200 billion Commercial Commercial Real Estate Residential Mtg and Home Equity Credit Card Other Retail Covered Noninterest-bearing Savings Time 33% 19% 26% 7% 15% 25% 18% 26% 8% 8% 15% 25% 45% 30% 27% 52% 21% USB +30% USB +64% Peer Median +25% Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Peer Median +7% Performance |
| Revenue Growth Total RevenueYear-Over-Year Growth 8.7% 7.9% 7.9% 4.6% 3.8% 2Q10 3Q10 4Q10 1Q11 2Q11 Reported 4519 4587 4721 4519 4690 Performance NII Pay DSC Trust Mtg Comml Other East 54 17 9 6 5 5 4 Fee Income46% Net InterestIncome54% Service Charges Trust & Inv Mgmt Mortgage Comm'l Products All Other Payments 20% 12% 11% 10% 9% 38% Revenue Diversification2Q11 Taxable-equivalent basisPayments = credit and debit card revenue, corporate payment products revenue and merchant processing services;Service charges = deposit service charges, treasury management fees and ATM processing services |
| Prudent Expense Management Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI, USB and WFC Performance 2006 2007 2008 2009 2010 2Q10 3Q10 4Q10 1Q11 2Q11 USB 0.454 0.492 0.469 0.484 0.515 0.524 0.519 0.525 0.511 0.516 Peer Median 0.572 0.577 0.629 0.585 0.627 0.615 0.622 0.642 0.647 0.643 Efficiency Ratio |
| Pre-provision Income Growth Pre-provision income excludes securities gains (losses) netPeer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC 2010 Consumer 34 Wholesale 27 Wealth Management 5 Payments 35 2007 Consumer 40 Wholesale 23 Wealth Management 12 Payments 25 Pre-provision Income2Q07 YTD $3.7 billion Pre-provision Income2Q11 YTD$4.5 billion 23% 40% 12% 25% 27% 34% 4% 35% Consumer Wholesale WM&SS Payments USB +22% PeerMedian -8% Performance |
| Performance Metrics Performance Source: SNL and company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROA 0.0112 0.0104 0.0094 0.0072 0.0065 0.0002 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROCE 0.122 0.099 0.096 0.075 0.068 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ER 0.494 0.553 0.569 0.579 0.592 0.595 0.666 0.691 0.706 0.719 Return onAverage Assets Return on AverageCommon Equity Efficiency Ratio USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROA 0.0154 0.014 0.0127 0.0122 0.011 0.0099 0.0078 0.0042 0.0033 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROCE 0.159 0.119 0.117 0.115 0.11 0.101 0.072 0.036 0.016 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ER 0.516 0.593 0.603 0.607 0.64 0.646 0.665 0.712 0.735 Since 1Q08 2Q11 |
| Credit Quality Performance 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 NPA $ Change 76 49 155 290 357 489 727 626 386 184 91 -261 -171 -212 -159 -217 NPA % Change 0.13 0.08 0.22 0.34 0.31 0.33 0.37 0.23 0.12 0.05 0.02 -0.07 -0.05 -0.06 -0.05 -0.06 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 NCO $ Change 8 26 68 103 102 134 156 141 112 69 25 -21 -119 -58 -132 -58 NCO % Change 0.041884817 0.130653266 0.302222222 0.351535836 0.257575758 0.269076305 0.246835443 0.17893401 0.12056 0.07 0.02 -0.02 -0.11 -0.06 -0.14 -0.07 $ in millions, linked quarter change* Excluding Covered Assets (assets subject to loss sharing agreements with FDIC); 1Q11 change in NPAs excludes FCB acquisition ($287 million) Change in Net Charge-offs Change in Nonperforming Assets* NCO $ Change (Left Scale) NCO % Change (Right Scale) NPA $ Change (Left Scale) NPA % Change (Right Scale) 103 68 (21) 25 69 112 141 156 134 102 155 290 91 184 386 626 727 489 357 (261) (119) (171) (58) (212) (132) (159) (58) (217) The Company expects the level of Net Charge-offs and Nonperforming Assets to trend lower during 3Q11 |
| Capital Position 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 TARP 0 0 0 0 24.4 25.3 0 0 0 0 0 0 0 0 0 Tier 1 Capital Ratio 0.083 0.086 0.085 0.085 0.106 0.109 0.094 0.095 0.096 0.099 0.101 0.103 0.105 0.108 0.11 Tier 1 Common Ratio 0.056 0.057 0.056 0.057 0.051 0.054 0.067 0.068 0.068 0.071 0.074 0.076 0.078 0.082 0.084 Tier 1 Capital 17.5 18.5 18.6 18.9 18 18.9 21.7 22 22.6 23.3 24 24.9 25.9 26.8 27.8 TARP Equity Tier 1 Capital Tier 1 Capital Ratio Tier 1 Common Ratio Performance 6/30/11 Tier 1Common RatioBasel III:8.1% Anticipated Basel III definitions reflect adjustments to the related elements as proposed in December 2010 by regulatory agencies |
| Capital Management Strong capital generation and historically high payout ratioGoal to resume normal capital management Reinvest Acquisitions Dividends ShareRepurchases 20 - 40% Targets: 30 - 40% 30 - 40% Investment criteria:Strategic fitReturn > cost of capital (10-11%) 2003 2004 2005 2006 2007 2008 2009 2010 2Q11 YTD Dividends 0.44 0.46 0.5 0.53 0.66 1.06 0.21 0.12 0.22 Share Repurchase 0.11 0.63 0.4 0.59 0.45 0.02 0 0 0.03 Earnings Distributed to Shareholders 90% 55% 109% 112% 111% 108% 21% 12% Dividends ShareRepurchase 25% Performance |
| U.S. Bancorp OverviewPerformanceCurrent EnvironmentInvesting for Growth |
| Regulatory Environment Existing regulatory oversight actionsFuture regulatory oversight actionsDodd-Frank Wall Street Reform and Consumer Protection ActConsumer Financial Protection BureauResidential mortgage foreclosure policy and procedures $ in millions, estimated reduction to revenue* 4Q11 impact approximately $75 million ($0.24 per average transaction starting 4Q11) CurrentEnvironment FY 2010 Annual Actual Run RateOverdraft Legislation ^ $255 ^ $440 - $480 Pricing and Policy ChangesCard Act ^ $160 ^ $250 Net Interest Margin and Fee Income Durbin Amendment -- ^ $300* |
| Foreclosure Issues Mortgages repurchased and make-whole paymentsRepurchase activity lower than peers due to conservative credit and underwriting culture and disciplined origination process (primarily conforming loans, ^ 95% sold to GSEs)Outstanding repurchase and make-whole requests balance = $123 million as of 6/30/11 CurrentEnvironment Mortgage securitizationsDo not participate in private placement securitization marketU.S. Bank Corporate Trust is trustee - acts only on behalf of investorsForeclosure process - OCC/Fed consent ordersUSB is on schedule with implementation plan submitted to the regulators |
| Interest Rate Risk Management CurrentEnvironment The Company manages its exposure to changes in interest rates in order to minimize the volatility of net interest income and the market value of assets and liabilitiesUSB is currently slightly asset sensitivePrimary impact from lower rate environment is reinvestment riskOverall impact of lower rate environment is very manageable for USB 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Up 50 bp Immediate -0.0168 -0.0069 -0.0068 0.0105 0.011 0.0089 0.0092 0.01 0.0133 0.0165 0.0253 0.0314 0.0311 0.0327 Down 50 bp Immediate 0.0178 0.011 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Up 50 bp Immediate -0.0094 -0.0053 -0.0048 0.0037 0.0063 0.0036 0.0042 0.0043 0.0068 0.01 0.0147 0.0164 0.0157 0.0205 Down 50 bp Immediate 0.0092 0.0061 0.005 Net Interest Income Sensitivity 4% Policy Limit (4%) Policy Limit Up 50 bp Immediate Down 50 bp Immediate Up 200 bp Gradual Down 200 bp Gradual |
| U.S. Bancorp Overview Performance Current Environment Investing for Growth |
| Investing for Growth Investing for Growth Technology Investments Tier 4 Data Center Branch Hardware and Software Internet Channel Home Mtg Origination Platform Mobile Banking Channel Call Center Telephony Distribution Channel Integration 2005 2006 2007 2008 2009 2010 2011 Fcst CapX 301 540 484 519 772 856 650 Capital Expenditures Capital expenditures approved by Capital Expenditures Committee We continue to invest: Wholesale Banking and Commercial Real Estate Footprint expansion New products and services Consumer and Small Business Banking Branch technology Acquisitions Optimal denovo branch expansion Wealth Management and Securities Services Corporate Trust acquisitions Ascent Private Capital Management Payment Services International expansion Mobile payments Acquisitions Enterprise Revenue Office |
| Investing for Growth Investing forGrowth PaymentsMerchant processing portfolio of Santander-MexicoMerchant processing portfolio of Citizens National Bank Credit card portfolios from CitiMerchant processing portfolio of MB Financial BankCredit card portfolio of Town North BankSouthern DataCommAIMS LogisticsNumerous small portfoliosJoint ventures:Brazil merchant services companySyncada Consumer and WholesaleBanking operations of First Community Bank (NM)Banking subsidiaries of FBOP CorporationBB&T's Nevada banking operationsFirst Bank of IdahoDowney Savings & Loan AssociationPFF Bank & TrustMellon 1st Business Bank Trust BusinessesBank of America's securitization trust administration businessCorporate trust administration business of F.N.B. Corporation Corporate trust business of AmeriServ FinancialBond trustee business of First Citizens bankMutual fund servicing division of Fiduciary Management, Inc DivestituresDivestiture of FAF Advisors long- term asset management business Consumer Wholesale PCTAM Payments Revenue 43 20 9 28 Consumer and Small BusinessBanking PaymentServices WealthManagementand SecuritiesServices Wholesale Bankingand CommercialReal Estate Acquisitions |
| Investing in Innovation Easy Savings with Rewards Best-in-Class Rewards Best Online Customer Experience Environmental Sustainability Prepaid Card Innovation Mobile Merchant Acquiring VITAband Desktop and Mobile Remote Check Deposit Investing forGrowth |
| Long-term Growth Drivers Return on recent and on-going investments in technology, corporate banking, wealth management, corporate trust, payments and M&APositive leverage to economic recovery, particularly payments and trustMarket share gains, including growth in loans and deposits as "flight to quality" continuesEfficiency ratio in the low 50sCredit costs normalize at 100 bps of average loans over the cycleNormalized ROE 16-19%; normalized ROA 1.60-1.90%Unknown regulatory impact = negative biasNormalized capital management = positive biasSuperior execution Investing forGrowth |
| Long-term Growth Expectations Long-term Growth ExpectationsNet Interest Income 5-7%Noninterest Income 8-10% Total Revenue 7-8%Noninterest Expense 4-5%Provision for Credit Losses 6-8% Net Income 8-9%EPS 8-10% Investing forGrowth |
| Richard K. DavisChairman, President and CEOSeptember 14, 2011 Barclays Capital 2011 Global Financial Services Conference |
| Appendix |
| Non-Regulatory Capital Ratios Appendix |
| Richard K. DavisChairman, President and CEOSeptember 14, 2011 Barclays Capital 2011 Global Financial Services Conference |