Attached files
| file | filename |
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| 8-K - FORM 8-K - US BANCORP \DE\ | d380678d8k.htm |
| EX-99.1 - PRESS RELEASE ISSUED BY U.S. BANCORP - US BANCORP \DE\ | d380678dex991.htm |
 U.S.
Bancorp 2Q12 Earnings
Conference Call
U.S. Bancorp
2Q12 Earnings
Conference Call
July 18, 2012
Richard K. Davis
Chairman, President and CEO
Andy Cecere
Vice Chairman and CFO
Exhibit 99.2 |
 2
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, 2011, 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. |
 2Q12 Highlights
Record net income of $1.4 billion; $0.71 per diluted common share
Total net revenue of $5.1 billion, up 8.1% vs. 2Q11
•
Net interest income growth of 6.6% vs. 2Q11
•
Noninterest income growth of 9.7% vs. 2Q11
Positive operating leverage on both a year-over-year and a linked quarter
basis Average loan growth of 7.7% vs. 2Q11 and average loan growth of 1.9%
vs. 1Q12 Strong average deposit growth of 10.5% vs. 2Q11 and average deposit
growth of 1.3% vs. 1Q12
Net charge-offs declined 8.9% vs. 1Q12
Nonperforming assets declined 6.9% vs. 1Q12 (12.3% including covered assets)
Capital generation continues to fortify capital position
•
Tier 1 common equity ratio of 8.8%
•
Tier 1 capital ratio of 10.7%
•
Repurchased 13 million shares of common stock during 2Q12
2Q12 Earnings
Conference Call
3 |
 Performance Ratios
ROCE and ROA
Efficiency Ratio and
Net Interest Margin
Efficiency ratio computed as noninterest expense divided by the sum of net interest
income on a taxable-equivalent basis
and
noninterest
income
excluding
securities
gains
(losses)
net
Return on Avg Common Equity
Return on Avg Assets
Efficiency Ratio
Net Interest Margin
4
2Q12 Earnings
Conference Call |
 *
Gain on merchant processing agreement settlement Taxable-equivalent
basis Revenue Growth
Year-Over-Year Growth
3.8%
4.5%
8.1%
9.1%
8.1%
$ in millions
$5,068
$5,104
$4,795
$4,690
$4,929
5
2Q12 Earnings
Conference Call |
 Loan and Deposit Growth
Average Balances
Year-Over-Year Growth
$ in billions
7.7%
$214.1
4.0%
$198.8
5.0%
$202.2
5.9%
$207.0
6.4%
$210.2
10.5%
$231.3
14.2%
$209.4
17.9%
$215.4
17.3%
$223.3
11.7%
$228.3
2Q12 Earnings
Conference Call
6 |
 Credit Quality
* Excluding Covered Assets (assets subject to loss sharing agreements with FDIC), 1Q11
change in NPAs excludes FCB acquisition ($287 million) Linked quarter change
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)
-11%
-2%
-14%
-6%
-10%
-7%
-8%
-7%
35%
30%
27%
26%
18%
25%
7%
12%
2%
-5%
-7%
-5%
-6%
-7%
-6%
-6%
-15%
34%
22%
33%
31%
23%
37%
5%
12%
2%
$ in millions
-9%
-7%
2Q12 Earnings
Conference Call
7 |
 Credit Quality Outlook
The Company expects the level of Net Charge-offs and Nonperforming
Assets to trend modestly lower during 3Q12
Delinquencies*
Changes in Criticized Assets*
* Excluding Covered Assets (assets subject to loss sharing agreements with
FDIC) 1Q11 change in criticized assets excludes FCB acquisition
30 to 89 days
90+ days
8
2Q12 Earnings
Conference Call |
 YTD
YTD
2Q12
1Q12
2Q11
vs 1Q12
vs 2Q11
2Q12
2Q11
% B/(W)
Net Interest Income
2,713
$
2,690
$
2,544
$
0.9
6.6
5,403
$
5,051
$
7.0
Noninterest Income
2,355
2,239
2,146
5.2
9.7
4,594
4,158
10.5
Total Revenue
5,068
4,929
4,690
2.8
8.1
9,997
9,209
8.6
Noninterest Expense
2,601
2,560
2,425
(1.6)
(7.3)
5,161
4,739
(8.9)
Operating Income
2,467
2,369
2,265
4.1
8.9
4,836
4,470
8.2
Net Charge-offs
520
571
747
8.9
30.4
1,091
1,552
29.7
Excess Provision
(50)
(90)
(175)
--
--
(140)
(225)
--
Income before Taxes
1,997
1,888
1,693
5.8
18.0
3,885
3,143
23.6
Applicable Income Taxes
619
583
514
(6.2)
(20.4)
1,202
935
(28.6)
Noncontrolling Interests
37
33
24
12.1
54.2
70
41
70.7
Net Income
1,415
1,338
1,203
5.8
17.6
2,753
2,249
22.4
Preferred Dividends/Other
70
53
36
(32.1)
(94.4)
123
79
(55.7)
NI to Common
1,345
$
1,285
$
1,167
$
4.7
15.3
2,630
$
2,170
$
21.2
Diluted EPS
0.71
$
0.67
$
0.60
$
6.0
18.3
1.38
$
1.12
$
23.2
Average Diluted Shares
1,898
1,910
1,929
0.6
1.6
1,904
1,929
1.3
% B/(W)
Earnings Summary
$ in millions, except per-share data
Taxable-equivalent basis
9
2Q12 Earnings
Conference Call |
 2Q12 Results -
Key Drivers
vs. 2Q11
Net Revenue growth of 8.1%
•
Net
interest
income
growth
of
6.6%;
net
interest
margin
of
3.58%
vs.
3.67%
•
Noninterest income growth of 9.7%
Noninterest expense growth of 7.3%
Provision for credit losses lower by $102 million
•
Net charge-offs lower by $227 million
•
Provision lower than NCOs by $50 million vs. $175 million in 2Q11
vs. 1Q12
Net Revenue growth of 2.8%
•
Net
interest
income
growth
of
0.9%;
net
interest
margin
of
3.58%
vs.
3.60%
•
Noninterest income growth of 5.2%
Noninterest expense growth of 1.6%
Provision for credit losses lower by $11 million
•
Net charge-offs lower by $51 million
•
Provision lower than NCOs by $50 million vs. $90 million in 1Q12
10
2Q12 Earnings
Conference Call |
 Capital Position
$ in billions
RWA = risk-weighted assets
11
2Q12 Earnings
Conference Call
2Q12
1Q12
4Q11
3Q11
2Q11
Shareholders' equity
37.8
$
35.9
$
34.0
$
33.2
$
32.5
$
Tier 1 capital
30.0
30.0
29.2
28.1
27.8
Total risk-based capital
36.4
36.4
36.1
35.4
35.1
Tier 1 common equity ratio
8.8%
8.7%
8.6%
8.5%
8.4%
Tier 1 capital ratio
10.7%
10.9%
10.8%
10.8%
11.0%
Total risk-based capital ratio
13.0%
13.3%
13.3%
13.5%
13.9%
Leverage ratio
9.1%
9.2%
9.1%
9.0%
9.2%
Tangible common equity ratio
6.9%
6.9%
6.6%
6.6%
6.5%
Tangible common equity % of RWA
8.5%
8.3%
8.1%
8.1%
8.0%
Basel III
Tier 1 common equity ratio using Basel III
proposals published prior to June 2012
-
8.4%
8.2%
8.2%
8.1%
Tier 1 common equity ratio approximated
using proposed rules for the Basel III
standardized approach released June 2012
7.9%
-
-
-
-
|
 Mortgage Repurchase
Mortgages Repurchased and Make-whole Payments
Mortgage Representation and Warranties Reserve
$ in millions
2Q12
1Q12
4Q11
3Q11
2Q11
Beginning Reserve
$202
$160
$162
$173
$181
Net Realized Losses
(31)
(25)
(31)
(31)
(43)
Additions to Reserve
45
67
29
20
35
Ending Reserve
$216
$202
$160
$162
$173
Mortgages
repurchased
and make-whole
payments
$58
$55
$61
$57
$72
Repurchase activity lower than
peers due to:
•
Conservative credit and
underwriting culture
•
Disciplined origination process -
primarily conforming loans
(˜
95% sold to GSEs)
Do not participate in private
placement securitization market
Outstanding repurchase and
make-whole requests balance
= $164 million
Repurchase requests expected to
remain relatively stable over next
few quarters
2Q12 Earnings
Conference Call
12
~
~ |
 Momentum
Momentum
continues
continues |
 Appendix
2Q12 Earnings
Conference Call
14 |
 Average Loans
Average Loans
Key Points
$ in billions
vs. 2Q11
Average total loans grew by $15.3 billion, or 7.7%
Average total loans, excluding covered loans,
were higher by 10.0%
Average total commercial loans increased $10.0
billion, or 19.9%
vs. 1Q12
Average total loans grew by $3.9 billion, or 1.9%
Average total loans, excluding covered loans,
were higher by 2.4%
Average total commercial loans increased $2.9
billion, or 5.1%
Year-Over-Year Growth
4.0%
5.0%
5.9%
6.4%
7.7%
Covered
Commercial
CRE
Res Mtg
Retail
Credit Card
2Q12 Earnings
Conference Call
15
Commercial
CRE
Res Mtg
Credit
Card
Retail
$214.1
Covered
$198.8
$202.2
$207.0
$210.2 |
 Average Deposits
Average Deposits
Key Points
$ in billions
vs. 2Q11
Average total deposits increased by $21.9
billion, or 10.5%
Average low cost deposits (NIB, interest
checking, money market and savings)
increased by $20.9 billion, or 12.8%
vs. 1Q12
Average total deposits increased by $3.0
billion, or 1.3%
Average low cost deposits decreased by $1.3
billion, or 0.7%
Year-Over-Year Growth
14.2%
17.9%
17.3%
11.7%
10.5%
Time
Money Market
Checking and Savings
Noninterest-bearing
Noninterest
-bearing
2Q12 Earnings
Conference Call
16
$231.3
Checking
& Savings
Money
Market
Time
$209.4
$215.4
$223.3
$228.3 |
 Net Interest Income
Net Interest Income
Key Points
$ in millions
Taxable-equivalent basis
Year-Over-Year Growth
5.6%
5.9%
7.0%
7.3%
6.6%
2Q12 Earnings
Conference Call
3,000
2,500
2,000
1,500
1,000
$2,544
$2,624
$2,673
$2,690
$2,713
Net Interest Income
Net Interest Margin
3.67%
3.65%
3.60%
3.60%
3.58%
6.0%
5.0%
4.0%
3.0%
2.0%
2Q11
3Q11
4Q11
1Q12
2Q12
17
vs. 2Q11
Average earning assets grew by $26.2 billion,
or 9.4%
Net interest margin lower by 9 bp (3.58% vs.
3.67%) driven by:
•
Higher balances in lower yielding investment
securities and a decline in loan yields
•
Partially offset by lower deposit rates, a reduction in
the average cash position at the Federal Reserve,
and the classification change of credit card balance
transfer fees from noninterest income to interest
income beginning 1Q12
vs. 1Q12
Average earning assets grew by $3.7 billion,
or 1.2%
Net interest margin lower by 2 bp (3.58% vs.
3.60%) driven by:
•
Continued growth in lower yielding investment
securities and lower loan yields
•
Partially offset by lower rates on long-term debt and
a reduction in the average cash position at the
Federal Reserve |
 2Q12 Earnings
Conference Call
2Q11
3Q11
4Q11
1Q12
2Q12
Non-operating gains
-
$
-
$
263
$
-
$
-
$
Total
-
$
-
$
263
$
-
$
-
$
Notable Noninterest Income Items
Noninterest Income
Noninterest Income
Key Points
$ in millions
Payments = 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 vs. 2Q11
Noninterest income grew by $209 million, or 9.7%,
driven by:
•
Mortgage banking revenue increase of $251 million
•
Merchant processing (6.2% growth)
•
Lower credit and debit card revenue (17.8% decline)
due to the impact of legislative changes to debit
interchange fees and the classification change of credit
card balance transfer fees from noninterest income to
interest income beginning 1Q12, partially offset by
higher transaction volumes and a credit related to the
final expiration of debit card customer rewards
•
Lower ATM processing services revenue (21.9%
decline) due to classifying surcharge revenue passed
through to others as a reduction of revenue beginning
1Q12 rather than occupancy expense as in previous
periods
vs. 1Q12
Noninterest income grew by $116 million, or 5.2%,
driven by:
•
Mortgage banking revenue increase of $38 million
•
Higher payments revenue (9.8% increase) primarily due
to higher volumes
Year-Over-Year Growth
1.7%
2.9%
9.4%
11.3%
9.7%
$2,171
$2,431
$2,239
$2,355
$2,146
Trust and
Inv Mgmt
Service
Charges
All Other
Mortgage
Payments
All Other
Mortgage
Service Charges
Trust and Inv Mgmt
Payments
2Q12
1Q12
4Q11
3Q11
2Q11
2,800
2,100
1,400
700
0
18
(3.1%)
1.6%
(7.9%)
105%
2.9%
2Q12 Earnings
Conference Call |
 19
2Q12 Earnings
Conference Call
2Q11
3Q11
4Q11
1Q12
2Q12
Mortgage servicing matters
-
$
-
$
130
$
-
$
-
$
Total
-
$
-
$
130
$
-
$
-
$
Notable Noninterest Expense Items
Noninterest Expense
Noninterest Expense
Key Points
$ in millions
vs. 2Q11
Noninterest expense was higher by $176 million,
or 7.3%, driven by:
•
Increased compensation (7.2%) and employee
benefits (9.0%)
•
Increase in professional services (65.9%) principally due
to mortgage servicing review-related project
•
Increase in other expense driven by accrual related to
indemnification obligations associated with Visa Inc.
•
Lower net occupancy and equipment (7.6%) principally
reflecting the change in classification of ATM surcharge
revenue passed through to others
•
Lower marketing (11.1%) due to the timing of
advertising campaigns
vs. 1Q12
Noninterest expense was higher by $41 million, or
1.6%, driven by:
•
Higher professional services (61.9%) due to mortgage
servicing review-related project
•
Higher other expense primarily due to Visa accrual and
costs related to investments in affordable housing and
other tax-advantaged projects, partially offset by lower
regulatory and insurance-related costs
•
Lower marketing (26.6%) due to the timing of charitable
contributions and payments-related initiatives
Year-Over-Year Growth
2.0%
3.8%
8.5%
10.6%
7.3%
$2,476
$2,696
$2,560
$2,601
$2,425
Occupancy
and Equipment
Prof Services,
Marketing
and PPS
All Other
Tech and Comm
Compensation
and Benefits
All Other
Tech and Communications
Prof Svcs, Marketing and PPS
Occupancy and Equipment
Compensation and Benefits
2,800
2,100
1,400
700
0
2Q11
3Q11
4Q11
1Q12
2Q12
2Q12 Earnings
Conference Call
7.5%
(7.6%)
18.1%
6.3%
9.0% |
 Credit Quality
Commercial Loans
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Nonperforming loans and delinquencies continued to improve year-over-year
and on a linked quarter basis Net charge-offs improved on a linked
quarter and year-over-year basis Strong new lending activity of both
loans and commitments resulted in 6% linked quarter average loan growth;
utilization rates remained historically low
2Q11
1Q12
2Q12
Average Loans
$44,135
$51,309
$54,362
30-89 Delinquencies
0.46%
0.30%
0.26%
90+ Delinquencies
0.09%
0.08%
0.07%
Nonperforming Loans
0.78%
0.53%
0.31%
$ in millions
Revolving Line Utilization Trend
2Q12 Earnings
Conference Call
20
Average Loans
Net Charge-offs Ratio |
 Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Net charge-offs increased this quarter primarily due to a single
transaction Overall credit quality continued to improve as nonperforming
loans and delinquencies declined on a linked quarter and
year-over-year basis $ in millions
2Q12 Earnings
Conference Call
Commercial Leases
2Q11
1Q12
2Q12
Average Loans
$5,919
$5,822
$5,658
30-89 Delinquencies
1.00%
0.89%
0.83%
90+ Delinquencies
0.02%
0.00%
0.00%
Nonperforming Loans
0.73%
0.54%
0.40%
Credit Quality
Commercial Leases
21
Average Loans
Net Charge-offs Ratio
Small Ticket
$3,341
Equipment
Finance
$2,317 |
 Credit Quality
Commercial Real Estate
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Nonperforming
loans
continue
to
decline
as
the
Company
continues
to
resolve
and
reduce
exposures
in
this
portfolio
Net charge-offs continue to trend lower primarily driven by improvement in the credit quality of
the construction portfolio Delinquencies improved significantly on a linked quarter basis
2Q11
1Q12
2Q12
Average Loans
$35,499
$35,985
$36,549
30-89 Delinquencies
0.45%
0.45%
0.24%
90+ Delinquencies
0.01%
0.04%
0.03%
Nonperforming Loans
3.84%
2.10%
1.89%
Performing TDRs*
225
630
596
$ in millions
*
TDR = troubled debt restructuring, new accounting guidance adopted 3Q11 (FASB Accounting Standards
Update No. 2011-02) 2Q12 Earnings
Conference Call
22
Owner
Occupied
$11,294
Investor
$19,330
Other
$888
Office
$701
A&D
Construction
$808
Condo
Construction
$206
Residential
Construction
$988
Retail
$687
Multi-family
$1,647
Average Loans
NCO
Ratio
-
Comm
Mtg
Net Charge-offs Ratio
NCO
Ratio
-
Construction
CRE Mortgage
CRE Construction |
 Credit Quality
-
Residential Mortgage
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Strong growth in high quality originations (weighted average FICO 761, weighted
average LTV 68%) as average loans increased 3.5% over 1Q12, driven by demand
for refinancing Continued to help home owners by successfully modifying 2,874
loans (owned and serviced) in 2Q12, representing $495 million in
balances Delinquencies, nonperforming loans, and net charge-offs improved
on a year-over-year basis 2Q11
1Q12
2Q12
Average Loans
$32,734
$37,831
$39,166
30-89 Delinquencies
1.11%
0.95%
0.86%
90+ Delinquencies
1.13%
0.79%
0.80%
Nonperforming Loans
2.03%
1.78%
1.65%
$ in millions
* Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the
Department of VA ($1,352 million 2Q12) $32,734
$34,026
$36,256
$37,831
$39,166
6.0%
4.5%
3.0%
1.5%
0.0%
Average Loans
Net Charge-offs Ratio
40,000
30,000
20,000
10,000
0
1.46%
1.42%
1.30%
1.19%
1.12%
2Q11
3Q11
4Q11
1Q12
2Q12
Residential Mortgage Performing TDRs*
4,000
3,000
2,000
1,000
$1,939
$1,938
$2,002
$2,017
$2,011
2Q11
3Q11
4Q11
1Q12
2Q12
23
0
2Q12 Earnings
Conference Call |
 Credit Quality -
Credit Card
$ in millions
* Excluding portfolio purchases where the acquired loans were recorded at fair
value at the purchase date Average Loans and Net Charge-offs Ratios
Key Statistics
20,000
15,000
10,000
5,000
0
$15,884
$16,057
$16,271
$16,778
$16,696
5.62%
5.45%
4.54%
4.40%
4.88%
4.71%
4.21%
4.05%
4.25%
4.10%
Average Loans
30-89 Delinquencies
90+ Delinquencies
Nonperforming Loans
2Q11
$15,884
1.34%
1.32%
1.59%
1Q12
$16,778
1.26%
1.33%
1.25%
2Q12
$16,696
1.20%
1.17%
1.12%
Credit Card
Core
Portfolio
$16,093
Portfolios
Acquired at
Fair Value
$603
12.0%
9.0%
6.0%
3.0%
0.0%
Average Loans
Net Charge-offs Ratio Excluding Acquired Portfolios*
Comments
Net charge-offs continue to remain low
Overall delinquencies and nonperforming loans declined on a linked quarter and
year-over-year basis 2Q11
3Q11
4Q11
1Q12
2Q12
Net Charge-offs Ratio
2Q12 Earnings
Conference Call
24 |
 Credit Quality -
Home Equity
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
High-quality originations (weighted average FICO 772, weighted average CLTV 69%) originated
primarily through the retail branch network to existing bank customers on their primary
residence Nonperforming loans increased in the quarter as the Company included junior lien loans
and lines greater than 120 days past due, as well as junior lien loans and lines behind a first
lien greater than 180 days past due or in nonaccrual status, as nonperforming loans
2Q11
1Q12
2Q12
Average Loans
$18,634
$17,933
$17,598
30-89 Delinquencies
0.78%
0.82%
0.71%
90+ Delinquencies
0.65%
0.68%
0.30%
Nonperforming Loans
0.22%
0.23%
0.91%
Consumer Finance: 13%
Wtd Avg LTV*: 82%
NCO: 3.66%
$ in millions
Traditional: 87%
Wtd Avg LTV*: 71%
NCO: 1.10%
* LTV at origination
2Q12 Earnings
Conference Call
25
24,000
18,000
12,000
6,000
0
$18,634
$18,510
$18,281
$17,933
$17,598
1.64%
1.59%
1.67%
1.66%
1.44%
2Q11
3Q11
4Q11
1Q12
2Q12
Average Loans
Net Charge-offs Ratio
6.0%
4.5%
3.0%
1.5%
0.0%
Home Equity |
 Credit Quality -
Retail Leasing
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
High-quality originations (weighted average FICO 772)
Retail leasing delinquencies have stabilized at very low levels
Strong used auto values continued to contribute to historically low net
charge-offs 2Q11
1Q12
2Q12
Average Loans
$4,808
$5,095
$5,151
30-89 Delinquencies
0.20%
0.12%
0.13%
90+ Delinquencies
0.02%
0.02%
0.00%
Nonperforming Loans
--%
--%
--%
$ in millions
*
Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 =
100, quarter value = average monthly ending value 26
6,000
4,000
2,000
0
0
$4,808
$5,097
$5,150
$5,095
$5,151
3.0%
2.0%
1.0%
0.0%
-1.0%
Manheim Used Vehicle Index*
130
120
110
100
90
2Q11
3Q11
4Q11
1Q12
2Q12
2Q12 Earnings
Conference Call
0.00%
-0.08%
0.00%
0.08%
0.00%
Average Loans
Net Charge-offs Ratio |
 Credit Quality -
Other Retail
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Average balances grew modestly during the quarter as auto loan demand remained
strong Delinquencies and nonperforming loans remained stable
Net charge-offs continued to improve
2Q11
1Q12
2Q12
Average Loans
$24,498
$24,902
$25,151
30-89 Delinquencies
0.62%
0.51%
0.51%
90+ Delinquencies
0.20%
0.17%
0.16%
Nonperforming Loans
0.13%
0.10%
0.09%
Installment
$5,381
Auto Loans
$11,974
Revolving
Credit
$3,274
Student
Lending
$4,522
$ in millions
27
2Q12 Earnings
Conference Call
28,000
21,000
14,000
7,000
0
$24,498
$24,773
$24,901
$24,902
$25,151
1.16%
1.11%
1.19%
0.92%
0.86%
2Q11
3Q11
4Q11
1Q12
2Q12
6.0%
4.5%
0.0%
3.0%
1.5%
Other Retail
Average Loans
Net Charge-offs Ratio |
 Non-GAAP Financial Measures
2Q12 Earnings
Conference Call
28 |
 U.S.
Bancorp 2Q12 Earnings
Conference Call
U.S. Bancorp
2Q12 Earnings
Conference Call
July 18, 2012 |