U.S. Bancorp (USB) investor relations material

Strategic priorities and organizational changes

• Focused on expense management, organic growth, and payments transformation, with significant resource reallocation and talent refresh; nearly a quarter of top roles are new or newly assigned.

• Achieved four quarters within medium-term financial guidance, closing the valuation gap with peers and elevating revenue-facing roles.

• Expense management and fee growth have outperformed expectations, with over 5 points improvement in efficiency ratio over two years.

• Mortgage and auto businesses underperformed due to muted demand, representing about 10% of the company.

• Year two priorities include NII growth, leveraging AI and stablecoins, and sustaining high-performance culture.

Revenue, fee complex, and growth outlook

• Fee-based businesses account for nearly 45% of revenue, providing diversification and stability; payments and capital markets are key growth engines.

• Capital markets targeted to grow from 7-8% to 10-11% of revenue, with BTIG acquisition as a catalyst.

• Payments growth is accelerating, though it requires patience due to contract cycles and marketing spend.

• Commercial client sentiment is vibrant, with strong and diversified loan pipelines; consumer trends remain stable.

• NII expected at the high end of 4-6% YoY growth, fee revenues at the high end of 12-14%, and loan growth projected at 6-7% for the year.

Deposit and loan strategies

• Record consumer deposits driven by integrated product offerings, granular deposit pricing, and ongoing branch investments, including new formats and AI-enabled tools.

• Expansion into high-growth markets like Florida, Georgia, and Texas via client centers, with retail branch network expected to follow over time.

• Organic growth prioritized over acquisitions, with high bars for strategic fit and execution risk.

• Loan demand remains strong, with a focus on return hurdles and disciplined growth in C&I and credit cards.