US Bancorp : Q1 2025 U.S. Bancorp Earnings Conference Call Presentation
USB
April 16, 2025
U.S. Bancorp
1Q25 Earnings Conference Call
1Q25 Highlights
$1.03
Earnings per share
17.5%
Return on Tangible Common Equity1
270 bps
YoY Adjusted Positive Operating Leverage1
5.0%
1Q25 Noninterest Income Growth (YoY)
10.8% 20 bps vs 4Q24
CET1 Ratio2
U.S. Bancorp
1 Non-GAAP; See appendix for calculations and description of notable items
2 Common equity tier 1 capital to risk-weighted assets; 4Q24 reflects Basel III standardized approach with 5 year current expected credit losses (CECL)
3
transition; 1Q25 fully reflects implementation related to the CECL methodology
An Exceptional Banking Franchise
Fee income represents 41% of
U.S. Bancorp's total net revenue1
As a % of
26%
32%
Total Revenue1,2
■ Payment Services
42%
■ Consumer & Business Banking
Key statistics
$925B Total purchase volume5
$524B Assets under management4
Balance sheet3
$669B Assets
$610B Earning Assets $507B Deposits
$379B Loans
Clients4
~13M Consumers
~1.4M Businesses ~500K Wealth clients
~45K Corporate and Institutional
~$11T Assets under custody and administration6
107 Fortune Global Company ranked by revenue7
Client centers
Branch network
Map does not include our European locations
month basis for Retail Payment Solutions (Payments: Consumer and Small Business), Corporate Payment Solutions and Merchant Acquiring for 1Q25.
4
6 Amount reported as of March 31, 2025. 7 Source: Fortune Global 500 Ranking (2024)
Committed to Achieving Our Financial Targets
Key strategic priorities
Capacity to deliver positive operating leverage and fund organic growth
Deepening relationships, interconnected product set, and broader reach
Execution-focused and targeted strategy; Embedded money movement
Medium-termTargets1
ROA
1.15% to 1.35%
ROTCE
High teens
Fee Income
Mid-single digits
Growth
Efficiency Ratio
Mid-to-high 50s
Strong foundation built on financial and risk management discipline
1 Medium-term represents 2026 & 2027; subject to economic assumptions outlined in the appendix
5
1 Expense Management
Delivering Positive Operating Leverage and Funding Organic Growth
Efficiency and productivity momentum supported by four cost-save initiatives
6 consecutive quarters of expense discipline;
Positive operating leverage for 3 straight quarters3
Year-over-year change
23.1%1
20.8%1
18.1%1
6.3%1
(2.7)%
(1.7)%
(1.0)%
0.0%
0.9%
$4,311 $4,259 $4,246
2
Noninterest expense ($M)
YoY operating leverage
as adjusted3
as adjusted3
Four "in-flight"
expense initiatives:
1
Impacted by the December 2022 Union Bank acquisition
6
2
3Q24 operating leverage adjusted for securities gains (losses) related to investment portfolio repositioning
2 Organic Growth
Prioritizing Organic Growth Opportunities
Diversified fee businesses support our mid-single digit growth target
Fee Revenue Growth1
Year over year growth (FY2024 vs. FY2023)
+$87M
+16.1%
+2.9%
-8.2%
+9.8%
4.1%
$10,762M
$11,200M
2023
Trust & Inv Payments Mortgage
Other2
2024
Fee income
Mgmt.,
Fee income
Capital
Markets /
Investment
Products
Our growth target
is supported by:
Select key initiatives:
Capital Markets product expansion
Bank Smartly® interconnected solutions
Treasury Management scale up
Edward Jones partnership
Expansion Markets
1 Total noninterest income, less securities gains (losses)
7
2 Other includes services charges and all other fee revenue
3 Payments Transformation
Committed to Our Payments Franchise
Strategy focused on accelerating growth
Trailing 12-months total purchase volume1
$ in Billions
4.0%
CAGR
$856$893$925
1Q23
1Q24
1Q25
Target
growth
inline
Total Payments average loans
with the
market
$ in Billions
6.1%
CAGR
$42
$37
$40
1Q23
1Q24
1Q25
Our "execution-focused" payments
transformation entails:
1 Total purchase volume shown on a trailing 12-month basis for Retail Payment Solutions (Payments: Consumer and Small Business), Corporate Payment
8
Solutions and Merchant Acquiring
Streamlining Our Execution
Consumer and
Business Banking (CBB)
Branch and
CBB Small Business
Products Banking
(BSBB)
Payment
Services
Payments:
Payments:
Consumer and
Merchant and
Small Business
Institutional
(PCS)
(PMI)
Wealth, Corporate,
Commercial and Institutional
Banking (WCIB)
WCIB Institutional
Products Client Group
(ICG)
Operations
Technology
Corporate Functions
Revised management structure supports our execution priorities
9
1Q25 Results Summary
Income Statement
Change vs. Prior Period
Adjusted
$ in millions, except EPS
1Q25
4Q241
1Q241
Net interest income2
$4,122
(1.3) %
2.7
%
Noninterest income
2,836
0.1
5.0
Noninterest expense
4,232
0.7
0.9
Net income to Company
1,709
(2.1)
12.6
Diluted EPS
$1.03
(3.7)
14.4
Balance Sheet
Ending balance
Avg balance
Average Period Balance
change vs.
$ in billions
1Q25
1Q25
4Q24
1Q24
Total assets
$676.5
$669.4
(0.4)
%
2.4
%
Earning assets
613.8
610.2
(0.7)
2.4
Total loans
381.8
379.0
0.9
2.1
Total deposits
512.5
506.5
(1.1)
0.7
Credit Quality
Change vs.
$ in millions
1Q25
4Q24
1Q24
Nonperforming assets
$1,727
(5.7)
%
(3.3)
%
NPA ratio
0.45 %
(3) bps
(3) bps
Net charge-off ratio
0.59 %
(1) bps
6 bps
90+ Day Delinquency
0.21 %
- bps
2 bps
Capital
Change vs.
1Q25
4Q24
1Q24
CET1 capital ratio3,4
10.8 %
20 bps
80 bps
Total risk-based capital ratio4
14.4 %
10 bps
70 bps
Book value per share
$34.16
2.9
%
9.3
%
Tangible book value per share1
$25.64
4.1
%
13.8
%
Earnings returned (millions)5
$946
tier 1 capital to risk-weighted assets. 4 1Q24 and 4Q24 reflect Basel III standardized approach with 5 year CECL transition; 1Q25 fully reflects
U.S. Bancorp implementation related to the CECL methodology. 5 Earnings returned (millions) = total common dividends paid and aggregate value of common shares 10 repurchased inclusive of treasury shares repurchased in connection with stock compensation plans
Disclaimer
U.S. Bancorp published this content on April 16, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 16, 2025 at 10:48 UTC.