U.S. Bancorp (USB) BancAnalysts Association of Boston Conference 2024 summary

Business Model and Strategic Positioning

• Operates a diversified business model with retail, national, and international product sets, serving 13 million consumer and 1.5 million business clients, and a client base including ~500K wealth clients and ~45K corporate/institutional clients as of June 2024.

• Leverages scale and unique product offerings, including a robust payments ecosystem and institutional services, distributed efficiently through branches, digital channels, and strategic partnerships.

• Revenue is driven by a mix of traditional balance sheet activities, transaction-related businesses (notably payments), and advice-driven wealth and capital markets, with transactional and wealth businesses generating over 60% of revenue from fees.

• Diversified business mix: 43% of revenue from Wealth, Corporate, Commercial, and Institutional Banking (WCIB), 33% from Consumer and Business Banking, and 24% from Payment Services for the nine months ended September 30, 2024.

• Traditional loans and deposits accounted for 49% of revenue, transaction services 38%, and wealth and capital markets 13% for the nine months ended September 30, 2024.

Growth Initiatives and Business Integration

• WCIB business was formed by integrating legacy corporate, commercial, and wealth management units to deliver interconnected services and drive revenue growth, achieving a 10.3% revenue CAGR from 2019–2023 and $9.1B revenue YTD Q3 2024.

• Institutional businesses bank 90% of the Fortune 1000 and hold top market positions in investment services and corporate trust.

• Wealth management has expanded nationally, leveraging client centers and digital tools to grow beyond the traditional branch footprint.

• Wealth revenue grew at a 16% CAGR from 2019–2023, supported by market expansion, new client relationships, and increased connectivity across business lines.

• Integrated solutions across capital markets, payments, and trust services have driven significant revenue growth for key clients.

Capital Markets and Product Expansion

• Capital markets business has grown at a 15% CAGR, with a strategy to up-tier client relationships and expand product offerings such as commodities and structured credit.

• Lead bank roles in syndicated relationships have increased from 23% to 44% over ten years, with further up-tiering opportunities identified.

• Capital Markets revenue saw a -15% CAGR from 2019–2023 but is targeting a 12–15% medium-term growth opportunity through enhanced client solutions and product expansion.

• New product launches in commodities and ABS have quickly contributed to fee income, and foreign exchange business is being integrated into the payments ecosystem for further growth.

• Emphasis on expanding global transaction services, with over $1T in cross-border payments facilitated and further opportunities to deepen client relationships.