July 19, 2023 U.S. Bancorp 2Q23 Earnings Conference Call ...

Summary of U.S. Bancorp Conference Call Company Overview - **Company**: U.S. Bancorp (NYSE: USB) - **Date**: June 13, 2023 - **Participants**: Andrew Cecere (Chairman, President, and CEO), Terry Dolan (Vice Chair and CFO), Betsy Graseck (Morgan Stanley) Macro Environment and Trends - **Consumer Spending**: Increased spending on travel and entertainment, but a slowdown in retail discretionary items noted [4][5] - **Deposit Balances**: Starting to revert to pre-COVID levels, with expectations to reach these levels by Q3 [4] - **Loan Demand**: Decreased compared to the previous year, with flat utilization rates [5] - **Economic Outlook**: Anticipation of one more rate increase in summer, followed by flat rates; projection of a soft, moderate recession [5] Financial Guidance - **Net Interest Margin (NIM)**: Expected to be lower due to elevated cash balances; guidance for full year remains at 3% to 3.05% [7][8] - **Net Charge-Offs**: Expected to increase to about 50 basis points by mid-2024 [8] - **Tax Rate**: Anticipated to be around 24% for Q2 and full year, slightly up due to capital optimization activities [9] Strategic Priorities 1. **Union Bank Integration**: Successful integration completed, with significant digital enablement and cost takeouts projected at $900 million by 2024 [11][12] 2. **Digital Capabilities**: Continued investment in digital platforms and customer engagement [13] 3. **Payments Ecosystem**: Focus on enhancing payment capabilities, particularly for small and mid-sized businesses [14][15] Revenue Opportunities - **Union Bank Customer Base**: Potential to increase penetration in payments and card services, with expectations of 20% new customers and 25%-30% new revenue [16] - **Investment in Technology**: $2.5 billion annual spend on technology, with a focus on operational efficiency and cloud migration [18][23] - **AI Integration**: Active exploration of AI use cases across various business lines, with a more significant impact expected in 2-3 years [24][26] Capital Management - **CET1 Ratio**: Targeting 10.5% by year-end 2024, with a comfortable position of 9% by the end of this year [31][32] - **Risk Weighted Asset Optimization**: Identified actions to achieve 50 basis points of capital accretion without significant operational impact [35][36] - **TLAC Requirements**: Anticipated need to issue $10 billion to $20 billion in debt to meet new TLAC rules [45][46] Deposit and Loan Insights - **Deposit Mix**: Expectation of non-interest bearing deposits to decrease to low 20s percentage [53] - **Loan Growth**: Modest growth anticipated due to cautious business sentiment; focus on credit card growth and limited commercial real estate growth [77] Credit Quality - **Commercial Real Estate Exposure**: Represents 14% of the portfolio, with office space being a focus area due to pandemic impacts; manageable risk with 2% of loans in office space [80][81] Conclusion - U.S. Bancorp is navigating a complex macroeconomic environment with strategic initiatives focused on integration, digital capabilities, and payment ecosystems. The company is preparing for potential economic challenges while maintaining a strong capital position and exploring growth opportunities in its customer base and technology investments.

U.S. Bancorp (NYSE:USB) Bernstein's 39th Annual Strategic Decisions Conference 2023 June 2, 2023 9:00 AM ET Company Participants Andy Cecere - Chairman, President and Chief Executive Officer Terry Dolan - Vice Chair and CFO Conference Call Participants John McDonald - Bernstein John McDonald Good morning. Next up is U.S. Bancorp. We have CEO, Andy Cecere; CFO, Terry Dolan. Thank you, guys, for joining us. I appreciate you being here. Question-and-Answer Session Q - John McDonald And we'll kick off talking a ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from (not applicable) Commission file number 1-6880 U.S. BANCORP (Exact name of registrant as specified in its charter) Delaware 41-0255900 (State or other ...

U.S. Bancorp (NYSE:USB) Q1 2023 Earnings Conference Call April 19, 2023 10:00 AM ET Company Participants George Anderson - Senior Vice President & Director, Investor Relations Andy Cecere - Chairman, President & Chief Executive Officer Terry Dolan - Vice Chair & Chief Financial Officer Conference Call Participants Scott Siefers - Piper Sandler Erika Najarian - UBS Mike Mayo - Wells Fargo Securities John McDonald - Autonomous Research John Pancari - Evercore Gerard Cassidy - RBC Ebrahim Poonawala - Bank of A ...

April 19, 2023 U.S. Bancorp 1Q23 Earnings Conference Call ...

Summary of U.S. Bancorp Conference Call Company Overview - **Company**: U.S. Bancorp, Inc. (NYSE:USB) - **Recent Acquisition**: Completed the acquisition of Union Bank - **Current Assets**: Approximately $675 billion - **Market Capitalization**: Over $72 billion - **Valuation Metrics**: - Price to adjusted book value: ~1.3x - Price to tangible book value: ~1.9x - Forward P/E ratio: 9.4x [2][2][2] Macro Economic Insights - **Inflation**: Moderating but remains stubborn; Fed expected to maintain a restrictive policy [4][4] - **Interest Rates**: Anticipated to rise to around 5.50% and remain stable before potentially decreasing [4][5] - **Recession Outlook**: Likely a mild to moderate recession expected late 2023 to early 2024; consumer spending remains healthy but is expected to moderate [5][6] Financial Guidance for 2023 - **First Quarter Guidance**: - Earning assets: $605 billion to $610 billion - Margin expansion: 5 to 10 basis points - Revenue: $7.1 billion to $7.3 billion - Core expenses: $43 billion to $44 billion - Merger and integration costs: $200 million to $250 million [8][8][8] Union Bank Acquisition Update - **Integration Progress**: On track with no surprises; employee systems integrated, branch consolidations in process [10][10][11] - **Regulatory Approval**: Process elongated due to regulatory environment; challenges with capital management due to rising rates [13][13] - **Credit Mark**: Lower than initially estimated; $819 million reserve built, representing over 1.9% of nonperforming assets [15][16][16] Payments Business Overview - **Revenue Contribution**: Payments account for about 30% of annual revenue [20][20] - **Business Segments**: - **Issuing Business (RPS)**: 65% of payments revenue, includes debit and credit card issuing [21][21] - **Merchant-Acquiring Business**: 25% of payments revenue, offers holistic payment solutions [22][22] - **Corporate Payments**: 10% of revenue, largest provider of commercial cards to the federal government [23][23] - **Market Share**: 5-6% in main product categories; 1 provider of commercial cards for the federal government [24][24] Competitive Advantages - **Customer Retention**: Payments are embedded in customer operations, making it difficult for competitors to dislodge [26][26] - **Investment in Technology**: Continuous investment in technology to maintain competitive edge [29][29] - **Ecosystem Approach**: Combining payment capabilities with banking services to provide holistic solutions [32][32] Future Opportunities - **Union Bank Integration**: Potential to increase penetration in credit card offerings and corporate payment products due to existing relationships [37][38] - **Technology Integration**: Focus on tech-led payments and e-commerce capabilities to enhance customer experience [42][43] Credit Quality Insights - **Charge-Off Rates**: Historically low charge-offs; core charge-offs at 23 basis points in Q4 [51][51] - **Delinquencies**: Expected to rise, particularly in credit cards; no significant hotspots identified in portfolios [51][51] - **Commercial Real Estate Concerns**: Limited exposure (3% of overall commitment); structural stress anticipated but manageable over time [52][52] This summary encapsulates the key points discussed during the U.S. Bancorp conference call, highlighting the company's financial outlook, macroeconomic context, integration of Union Bank, and the strategic positioning of its payments business.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from (not applicable) Commission file number: 1-6880 U.S. Bancorp (Exact name of registrant as specified in its charter) Delaware 41-0255900 (State or other jurisdiction of (I.R.S ...

U.S. Bancorp (NYSE:USB) Q4 2022 Earnings Conference Call January 25, 2023 9:00 AM ET Company Participants George Andersen - Senior Vice President & Director, Investor Relations Andy Cecere - Chairman, President & Chief Executive Officer Terry Dolan - Vice Chair & Chief Financial Officer Conference Call Participants Scott Siefers - Piper Sandler Erika Najran - UBS Mike Mayo - Wells Fargo Securities John Pancari - Evercore ISI Ebrahim Poonawala - Bank of America Gerard Cassidy - RBC Betsy Graseck - Morgan Sta ...

U.S. Bancorp (NYSE:USB) Goldman Sachs U.S. Financial Services Conference December 7, 2022 10:40 AM ET Company Participants Andy Cecere - Chairman, President and Chief Executive Officer Terry Dolan - Chief Financial Officer Conference Call Participants Richard Ramsden - Goldman Sachs & Co. Richard Ramsden Okay, if everybody could take their seats, we're going to get started. Okay. So I'm delighted to introduce our next speakers, who is Chairman and CEO of USB, Andy Cecere. Andy is in his [indiscernible] 63 e ...