U.S. Bancorp (USB) investor relations material

Leadership and Business Overview

• Senior leaders with deep experience in finance and payments lead the session, highlighting a focus on payment businesses and recent leadership changes.

• The organization manages $680 billion in assets, with 42% of revenues from fee-based sources and nearly $1 trillion in annual payment volume.

• Medium-term financial targets include ROA of 1.15%-1.35% and ROTCE in the high teens for 2026-2027, with ongoing improvement and consistency.

• Positive operating leverage achieved, with 530 bps YoY in 3Q25, and an efficiency ratio of 57.2%.

• Assumptions include modest GDP growth, stable unemployment, and moderating inflation.

Key Strategic Priorities and Financial Targets

• Focus on organic growth, expense management, and payments transformation to drive financial performance.

• Fee income growth targeted at mid-single digits, with an efficiency ratio in the mid-to-high 50s.

• Return on tangible common equity reached 18.6% in 3Q25, and CET1 capital ratio improved to 10.9%.

• Forward-looking statements highlight risks from economic, regulatory, and competitive factors.

Payments Business Strategy and Investments

• Payments represent 26% of total revenue, with over 90% of this stream discussed in detail.

• Payment services generated $5.5B YTD revenue, and embedded payments now comprise 34% of payments revenue, up from 20% in 2019.

• Three-pronged growth strategy: embedded payments, differentiated distribution, and industry vertical prioritization.

• Cost base has remained flat while investments in payment systems, marketing, and sales have increased.

• Management targets mid-single-digit growth for payments, with potential upside as strategies mature.