U.S. Bancorp (USB) 8-K U.s. Bancorp Reports 9 Percent Increase In Earnings

U.S. Bancorp

1Q13 Earnings

Conference Call

U.S. Bancorp

1Q13 Earnings

Conference Call

April 16, 2013

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 recently enacted and future legislation and regulation.  U.S. Bancorp’s results could also be adversely affected by

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, 2012, 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.

3

1Q13 Earnings

Conference Call

1Q13 Highlights

Net income of $1.4 billion; $0.73 per diluted common share

Positive operating leverage on a linked quarter and year-over-year basis

Average loan growth of 5.8% vs. 1Q12 and average loan growth of 1.0%        

vs. 4Q12

Strong average deposit growth of 7.3% vs. 1Q12 and 0.5% vs. 4Q12

Net charge-offs declined 7.5% vs. 4Q12

Nonperforming assets declined 9.9% vs. 4Q12 (2.8% excluding covered assets)

Capital generation continues to reinforce capital position

Tier 1 common equity ratio of approximately 8.2% using proposed rules for Basel III

standardized approach released June 2012

Tier 1 common equity ratio of 9.1%; Tier 1 capital ratio of 11.0%

Repurchased 17 million shares of common stock during 1Q13

4

1Q13 Earnings

Conference Call

Performance Ratios

ROCE and ROA

Efficiency Ratio and

Net Interest Margin

Return on Avg Common Equity

Return on Avg Assets

Efficiency Ratio

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

Taxable-equivalent basis

Revenue Growth

Year-Over-Year Growth

9.1%

8.1%

8.0%

0.2%

(1.1%)

$ in millions

$4,929

$5,068

$5,179

$5,112

$4,874

3,500

4,000

4,500

5,000

5,500

1Q12

2Q12

3Q12

4Q12

1Q13

5

1Q13 Earnings

Conference Call

Loan and Deposit Growth

Average Balances

Year-Over-Year Growth

$ in billions

7.7%

$214.1

7.3%

$216.9

6.4%

$220.3

5.8%

$222.4

6.4%

$210.2

10.5%

$231.3

11.1%

$239.3

9.2%

$243.8

7.3%

$245.0

11.7%

$228.3

170.0

190.0

210.0

230.0

250.0

1Q12

2Q12

3Q12

4Q12

1Q13

1Q13 Earnings

Conference Call

6

Loans

Deposits

7

Credit Quality

* Excluding Covered Assets (assets subject to loss sharing agreements with FDIC)  ** Related to a regulatory clarification in the treatment of residential mortgage and other consumer

loans to borrowers who have exited bankruptcy but continue to make payments on their loans  *** Excluding $54 million of incremental charge-offs

Net Charge-offs

Nonperforming Assets*

$ in millions

Net Charge-offs (Left Scale)

NCOs to Avg Loans (Right Scale)

Nonperforming Assets (Left Scale)

NPAs to Loans plus ORE (Right Scale)

$433

$571

$520

$538

$468

$2,029

$2,423

$2,256

$2,188

$2,088

1Q13 Earnings

Conference Call

1.09%

0.98%

0.99%

0.85%

0.79%

0.89%***

0.00%

0.75%

1.50%

2.25%

3.00%

0

200

400

600

800

1Q12

2Q12

3Q12

4Q12

1Q13

1.22%

1.11%

1.06%

0.98%

0.95%

0.00%

0.75%

1.50%

2.25%

3.00%

0

800

1,600

2,400

3,200

1Q12

2Q12

3Q12

4Q12

1Q13

8

1Q13 Earnings

Conference Call

Earnings Summary

$ in millions, except per-share data

Taxable-equivalent basis

1Q13

4Q12

1Q12

vs 4Q12

vs 1Q12

Net Interest Income

2,709

$   

2,783

$   

2,690

$   

(2.7)

0.7

Noninterest Income

2,165

2,329

2,239

(7.0)

(3.3)

Total Revenue

4,874

5,112

4,929

(4.7)

(1.1)

Noninterest Expense

2,470

2,686

2,560

8.0

3.5

Operating Income

2,404

2,426

2,369

(0.9)

1.5

Net Charge-offs

433

468

571

7.5

24.2

Excess Provision

(30)

(25)

(90)

--

--

Income before Taxes

2,001

1,983

1,888

0.9

6.0

Applicable Income Taxes

614

608

583

(1.0)

(5.3)

Noncontrolling Interests

41

45

33

(8.9)

24.2

Net Income

1,428

1,420

1,338

0.6

6.7

Preferred Dividends/Other

70

71

53

1.4

(32.1)

NI to Common

1,358

$   

1,349

$   

1,285

$   

0.7

5.7

Diluted EPS

0.73

$     

0.72

$     

0.67

$     

1.4

9.0

Average Diluted Shares

1,867

1,880

1,910

0.7

2.3

% B/(W)

9

1Q13 Earnings

Conference Call

1Q13 Results -

Key Drivers

vs. 1Q12

Net Revenue decline of 1.1%

•

Net

interest

income

growth

of

0.7%;

net

interest

margin

of

3.48%

vs.

3.60%

in

1Q12

•

Noninterest income decline of 3.3%

Noninterest expense decline of 3.5%

Provision for credit losses lower by $78 million

•

Net charge-offs lower by $138 million

•

Provision lower than NCOs by $30 million vs. $90 million in 1Q12

vs. 4Q12

Net Revenue decline of 4.7%

•

Net interest income decline of 2.7%; net interest margin of 3.48% vs. 3.55% in 4Q12

•

Noninterest income decline of 7.0%

Noninterest expense decline of 8.0% (5.2% decline excluding notable items)

Provision for credit losses lower by $40 million

•

Net charge-offs lower by $35 million

•

Provision lower than NCOs by $30 million vs. $25 million in 4Q12

10

1Q13 Earnings

Conference Call

Capital Position

$ in billions

RWA = risk-weighted assets

1Q13

4Q12

3Q12

2Q12 

1Q12 

Shareholders' equity

39.5

$    

39.0

$    

38.7

$    

37.8

$    

35.9

$    

Tier 1 capital

31.8

31.2

30.8

30.0

30.0

Total risk-based capital

38.1

37.8

37.6

36.4

36.4

Tier 1 common equity ratio

9.1%

9.0%

9.0%

8.8%

8.7%

Tier 1 capital ratio

11.0%

10.8%

10.9%

10.7%

10.9%

Total risk-based capital ratio

13.2%

13.1%

13.3%

13.0%

13.3%

Leverage ratio

9.3%

9.2%

9.2%

9.1%

9.2%

Tangible common equity ratio

7.4%

7.2%

7.2%

6.9%

6.9%

Tangible common equity as a % of RWA

8.8%

8.6%

8.8%

8.5%

8.3%

Basel III

Tier 1 common equity ratio using Basel III

    proposals published prior to June 2012

-

-

-

-

8.4%

Tier 1 common equity ratio approximated

    using proposed rules for the Basel III

    standardized approach released June 2012

8.2%

8.1%

8.2%

7.9%

-

Capital Actions

Share repurchase authorization and expected dividend increase announced

March 14

th

Expect to increase annual dividend from $0.78 to $0.92, an 18% increase, effective 2Q13

One

year

authorization

to

repurchase

up

to

$2.25

billion

of

outstanding

stock

effective

4/1/13

Returned 69% of earnings to shareholders during 1Q13

Reinvest and

Acquisitions

Dividends

Share

Repurchases

20 -

40%

Targets:

30 -

40%

30 -

40%

31%

1Q13

Actual:

42%

27%

Earnings Distribution

1Q13 Earnings

Conference Call

11

12

1Q13 Earnings

Conference Call

Mortgage Repurchase

Mortgages Repurchased and Make-whole Payments

Mortgage Representation and Warranties Reserve

$ in millions

1Q13

4Q12

3Q12

2Q12

1Q12

Beginning Reserve

$240

$220

$216

$202

$160

Net Realized Losses

(23)

(32)

(32)

(31)

(25)

Additions to Reserve

16

52

36

45

67

Ending Reserve

$233

$240

$220

$216

$202

Mortgages

repurchased

and make-whole

payments

$79

$57

$58

$58

$55

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      

= $66 million

13

A Rich Heritage   A Strong Future

A Rich Heritage   A Strong Future

1863 -

2013

14

1Q13 Earnings

Conference Call

Appendix

15

1Q13 Earnings

Conference Call

Commercial

CRE

Res Mtg

Credit

Card

Retail

Average Loans

Average Loans

Key Points

$ in billions

vs. 1Q12

Average total loans grew over $12 billion, or 5.8%

Average total loans, excluding covered loans,

were higher by 8.0%

Average total commercial loans increased $8.2

billion, or 14.3%; average residential mortgage

loans increased $7.3 billion, or 19.2%

vs. 4Q12

Average total loans grew over $2 billion, or 1.0%

Average total loans, excluding covered loans,

were higher by 1.4%

Average total commercial loans increased $1.4

billion, or 2.1%; average residential mortgage

loans increased $2.0 billion, or 4.5%

Year-Over-Year Growth

6.4%

7.7%

7.3%

6.4%

5.8%

$220.3

$222.4

$210.2

$214.1

$216.9

Covered

Covered

Commercial

CRE

Res Mtg

Retail

Credit Card

16

1Q13 Earnings

Conference Call

Time

Money

Market

Checking

& Savings

Noninterest

-bearing

Average Deposits

Average Deposits

Key Points

$ in billions

vs. 1Q12

Average total deposits increased by $16.7

billion, or 7.3%

Average low cost deposits (NIB, interest

checking, money market and savings) 

increased by $13.5 billion, or 7.3%

vs. 4Q12

Average total deposits increased by $1.2

billion, or 0.5%

Average low cost deposits increased by $1.7

billion, or 0.9%

Year-Over-Year Growth

11.7%

10.5%

11.1%

9.2%

7.3%

$243.8

$245.0

$228.3

$231.3

$239.3

Time

Money Market

Checking and Savings

Noninterest-bearing

17

1Q13 Earnings

Conference Call

Net Interest Income

Net Interest Income

Key Points

$ in millions

Taxable-equivalent basis

vs. 1Q12

Average earning assets grew by $13.9 billion,

or 4.6%

Net interest margin lower by 12 bps (3.48%

vs. 3.60%) driven by:

•

Higher balances in lower yielding investment

securities and lower loan yields

•

Partially offset by lower rates on deposits and long-

term debt and a reduction in cash balances held at

the Federal Reserve

vs. 4Q12

Average earning assets grew by $1.8 billion,

or 0.6%

Net interest margin lower by 7 bps (3.48% vs.

3.55%) driven by:

•

Lower loan yields

•

Seasonally lower loan fees

Year-Over-Year Growth

7.3%

6.6%

6.1%

4.1%

0.7%

$2,690

$2,713

$2,783

$2,709

3.60%

3.58%

3.59%

3.55%

3.48%

8.0%

6.0%

4.0%

2.0%

0.0%

1Q12

2Q12

3Q12

4Q12

1Q13

Net Interest Income

Net Interest Margin

0

1,000

2,000

3,000

4,000

$2,783

18

1Q13 Earnings

Conference Call

Noninterest Income

Noninterest Income

Key Points

$ in millions

Payments = credit and debit card revenue, corporate payment products revenue and merchant processing;

Service charges = deposit service charges, treasury management fees and ATM processing services

vs. 1Q12

Noninterest income declined by $74 million, or 3.3%,

driven by:

•

Lower other income, mainly due to lower equity investment and

retail leasing revenue

•

Mortgage banking revenue decline of $51 million

•

Lower commercial products revenue (5.2% decline) due to lower

syndication

and

standby

letters

of

credit

fees,

partially

offset

by

higher bond underwriting fees

•

Higher trust and investment management fees (10.3% increase)

due to improved market conditions and business expansion

•

Higher credit and debit card revenue (5.9% increase) and higher

merchant processing (3.0% increase)

vs. 4Q12

Noninterest income declined by $164 million, or

7.0%, driven by:

•

Mortgage banking revenue decrease of $75 million

•

Lower commercial products revenue (11.5% decline) due to lower

commercial leasing revenue and lower syndication and standby

letter of credit fees

•

Lower deposit service charges (10.0% decline), principally due to

seasonally lower transaction volumes

•

Lower credit and debit card revenue (11.6% decline) due to

seasonally lower volumes, partially offset by business expansion,

lower merchant processing revenue (2.0% decline) due to

seasonally lower product fees, and lower corporate payment

revenue (3.4% decline), primarily due to lower government-related

transaction volumes

Year-Over-Year Growth

11.3%

9.7%

10.4%

(4.2%)

(3.3%)

$2,329

$2,165

$2,239

$2,355

$2,396

Trust and

Inv Mgmt

Service

Charges

All Other

Mortgage

Payments

All Other

Mortgage

Service Charges

Trust and Inv Mgmt

Payments

1Q12

2Q12

3Q12

4Q12

1Q13

Non-operating gains

-

$        

-

$        

-

$        

-

$        

-

$        

Total

-

$        

-

$        

-

$        

-

$        

-

$        

Notable Noninterest Income Items

$2,165

$2,329

$2,396

$2,355

$2,239

2.7%

10.3%

(1.3%)

(11.3%)

2,800

2,100

1,400

700

0

1Q12

2Q12

3Q12

4Q12

1Q13

(14.1%)

19

1Q13 Earnings

Conference Call

Noninterest Expense

Noninterest Expense

Key Points

$ in millions

vs. 1Q12

Noninterest expense was lower by $90 million, or

3.5%, driven by:

•

Lower other expense, mainly due to favorable variances in

litigation, regulatory and insurance-related expense

•

Lower marketing and business development expense (33.0%

decline), primarily reflecting the timing of charitable

contributions in 2012

•

Lower professional services expense (7.1% decline) due to

reduction in mortgage servicing review-related costs

•

Higher compensation (2.9% increase), primarily the result of

growth in staffing and employee benefits (19.2% increase),

mainly due to higher pension costs

vs. 4Q12

Noninterest expense was lower by $216 million, or

8.0%, driven by:

•

Lower other expense due to the $80 million mortgage

foreclosure-related regulatory settlement accrual in 4Q12,

lower litigation and insurance-related expense and lower costs

related to investments in affordable housing and other tax-

advantaged projects

•

Lower professional services expense (53.0% decrease) due to

lower mortgage servicing review-related projects and lower

marketing and business development expense (29.1%

decline) due to timing of marketing activities

•

Higher benefits expense (34.2% increase) due mainly to

higher pension costs and seasonally higher payroll taxes

Year-Over-Year Growth

10.6%

7.3%

5.4%

(0.4%)

(3.5%)

$2,686

$2,470

$2,560

$2,601

$2,609

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

1Q12

2Q12

3Q12

4Q12

1Q13

Mortgage servicing matters

-

$        

-

$        

-

$        

80

$      

-

$        

Total

-

$        

-

$        

-

$        

80

$      

-

$        

Notable Noninterest Expense Items

2,800

2,100

1,400

700

0

1Q12

2Q12

3Q12

4Q12

1Q13

6.1%

6.8%

(15.0%)

(27.7%)

5.0%

20

1Q13 Earnings

Conference Call

Credit Quality

-

Commercial Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Strong

new

lending

activity

resulted

in

2.3%

linked

quarter

loan

growth

and

16.8%

year-over-year

growth

even though utilization rates remained at historically low levels

Nonperforming loans and net charge-offs continued to improve year-over-year and on a linked quarter basis

Early stage delinquencies improved year-over-year and on a linked quarter basis

1Q12

4Q12

1Q13

Average Loans

$51,309

$58,552

$59,921

30-89 Delinquencies

0.30%

0.48%

0.20%

90+ Delinquencies

0.08%

0.10%

0.10%

Nonperforming Loans

0.53%

0.18%

0.14%

$ in millions

$51,309

$54,362

$56,655

$58,552

$59,921

80,000

60,000

40,000

20,000

0

1Q12

2Q12

3Q12

4Q12

1Q13

0.0%

1.0%

2.0%

3.0%

4.0%

Net Charge-offs Ratio

Average Loans

0.61%

0.41%

0.41%

0.32%

0.22%

20%

25%

30%

35%

40%

Revolving Line Utilization Trend

21

1Q13 Earnings

Conference Call

Credit Quality

-

Commercial Leases

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Net charge-offs continue to improve both on a year-over-year and a linked quarter basis

Nonperforming loans improved year-over-year, and are relatively stable on a linked quarter basis

Early stage delinquencies improved year-over-year and on a linked quarter basis

1Q12

4Q12

1Q13

Average Loans

$5,822

$5,377

$5,378

30-89 Delinquencies

0.89%

0.89%

0.82%

90+ Delinquencies

0.00%

0.00%

0.00%

Nonperforming Loans

0.54%

0.29%

0.30%

$ in millions

$5,822

$5,658

$5,537

$5,377

$5,378

0.55%

1.07%

0.50%

0.37%

0.23%

0.0%

1.0%

2.0%

3.0%

4.0%

0

2,000

4,000

6,000

8,000

1Q12

2Q12

3Q12

4Q12

1Q13

Average Loans

Net Charge

-offs Ratio

Small Ticket

$3,359

Equipment

Finance

$2,019

Commercial Leases

22

Credit Quality

-

Commercial Real Estate

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Average loans increased 1% on a linked quarter basis

Early stage delinquencies improved year-over-year and on a linked quarter basis

Nonperforming loans continued to decline, down from the peak of 5.36% in 1Q10

1Q12

4Q12

1Q13

Average Loans

$35,985

$36,851

$37,218

30-89 Delinquencies

0.45%

0.43%

0.22%

90+ Delinquencies

0.04%

0.02%

0.02%

Nonperforming Loans

2.10%

1.48%

1.36%

Performing TDRs*

630

531

526

$ in millions

Investor

$19,877

Owner

Occupied

$11,134

Multi-family

$2,046

Retail

$479

Residential

Construction

$985

Condo

Construction

$146

A&D

Construction

$717

Office

$775

Other

$1,059

* TDR = troubled debt restructuring

$35,985

$36,549

$36,630

$36,851

$37,218

0.79%

0.58%

0.27%

0.18%

0.21%

0.0%

1.0%

2.0%

3.0%

4.0%

1Q12

2Q12

3Q12

4Q12

1Q13

Net Charge-offs Ratio

0

15,000

30,000

45,000

60,000

CRE Mortgage

CRE Construction

1Q13 Earnings

Conference Call

Average Loans

23

Credit Quality

-

Residential Mortgage

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Strong growth in high quality originations (weighted average FICO 765, weighted average LTV 64%) as average

loans increased 4.5% over 4Q12, driven by demand for refinancing

Over 72% of the balances have been originated since the beginning of 2009, the origination quality metrics and

performance to date have significantly outperformed prior vintages with similar seasoning

Delinquencies and nonperforming loans continue to decline as housing values improve

1Q12

4Q12

1Q13

Average Loans

$37,831

$43,156

$45,109

30-89 Delinquencies

0.95%

0.79%

0.71%

90+ Delinquencies

0.79%

0.64%

0.54%

Nonperforming Loans

1.78%

1.50%

1.46%

$ in millions

** Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($1,909 million 1Q13)

$37,831

$39,166

$40,969

$43,156

$45,109

1.19%

1.12%

1.17%

0.88%

0.83%

0.96%*

0.0%

1.0%

2.0%

3.0%

4.0%

0

15,000

30,000

45,000

60,000

1Q12

2Q12

3Q12

4Q12

1Q13

Average Loans

Net Charge-offs Ratio

Adjusted NCO Ratio

$2,017

$2,011

$2,076

$2,087

$2,035

0

1,000

2,000

3,000

4,000

1Q12

2Q12

3Q12

4Q12

1Q13

Residential Mortgage Performing TDRs**

1Q13 Earnings

Conference Call

* Excluding $22 million related to a regulatory clarification in the treatment of loans to borrowers who have exited bankruptcy but continue to make payments on their loans

24

1Q13 Earnings

Conference Call

1Q12

4Q12

1Q13

Average Loans

$16,778

$16,588

$16,528

30-89 Delinquencies

1.26%

1.33%

1.24%

90+ Delinquencies

1.33%

1.27%

1.26%

Nonperforming Loans

1.25%

0.85%

0.78%

Credit Quality -

Credit Card

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Net charge-offs continue to remain low

Delinquencies remain at historically low levels

Nonperforming loans have decreased for seven consecutive quarters

$ in millions

* Excluding portfolio purchases where the acquired loans were recorded at fair value at the purchase date

Average Loans

Net Charge-offs Ratio

Net Charge-offs Ratio Excluding Acquired Portfolios*

25

1Q13 Earnings

Conference Call

Credit Quality -

Home Equity

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

High-quality originations (weighted average FICO 760, weighted average CLTV 72%) originated

primarily through the retail branch network to existing bank customers on their primary residence

Early and late stage delinquencies have improved year-over-year and on a linked quarter basis

1Q12

4Q12

1Q13

Average Loans

$17,933

$16,950

$16,434

30-89 Delinquencies

0.82%

0.76%

0.70%

90+ Delinquencies

0.68%

0.30%

0.27%

Nonperforming Loans

0.23%

1.13%

1.25%

Subprime: 2%

Wtd Avg LTV**: 91%

NCO: 8.02%

$ in millions

Prime: 95%

Wtd Avg LTV**: 72%

NCO: 1.61%

** LTV at origination

Other: 3%

Wtd Avg LTV**: 73%

NCO: 3.77%

* Excluding $26 million related to a regulatory clarification in the treatment of loans to borrowers who have exited bankruptcy but continue to make payments on their loans

26

1Q13 Earnings

Conference Call

Credit Quality -

Retail Leasing

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

High-quality originations (weighted average FICO 771)

Retail leasing delinquencies remain relatively stable at very low levels

Strong used auto values continued to contribute to historically low net charge-offs

1Q12

4Q12

1Q13

Average Loans

$5,095

$5,384

$5,448

30-89 Delinquencies

0.12%

0.22%

0.12%

90+ Delinquencies

0.02%

0.02%

0.02%

Nonperforming Loans

0.00%

0.02%

0.02%

$ in millions

* Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 = 100, quarter value = average monthly ending value

27

1Q13 Earnings

Conference Call

Credit Quality -

Other Retail

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Year-over-year

growth in Auto Loans (7.4%) more than offset declines in Student Lending

loan balances (see slide 28 for auto loan detail)

Delinquencies and nonperforming loans remain stable and at very low levels

1Q12

4Q12

1Q13

Average Loans

$24,902

$25,595

$25,364

30-89 Delinquencies

0.51%

0.59%

0.48%

90+ Delinquencies

0.17%

0.17%

0.16%

Nonperforming Loans

0.10%

0.11%

0.10%

Installment

$5,456

Auto Loans

$12,519

Revolving

Credit

$3,276

Student

Lending

$4,113

$ in millions

* Excluding $5 million related to a regulatory clarification in the treatment of loans to borrowers who have exited bankruptcy but continue to make payments on their loans

Other Retail

28

1Q13 Earnings

Conference Call

Credit Quality -

Auto Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

High-quality originations (Indirect channel weighted average FICO 772, Direct channel weighted

average FICO 749) and strong used vehicle values have led to a low loss portfolio

Overall year-over-year loan growth driven by Indirect channel

1Q12

4Q12

1Q13

Average Loans

$11,657

$12,540

$12,519

30-89 Delinquencies

0.43%

0.41%

0.30%

90+ Delinquencies

0.06%

0.06%

0.03%

Nonperforming Loans

0.00%

0.02%

0.02%

$ in millions

Auto Loans are included in Other Retail category

Direct: 9%

Wtd Avg FICO: 748

NCO: 0.04%

Indirect: 91%

Wtd Avg FICO: 770

NCO: 0.17%

29

1Q13 Earnings

Conference Call

Non-GAAP Financial Measures

$ in millions

1Q13 

4Q12 

3Q12 

2Q12 

1Q12 

Total equity

40,847

$

40,267

$

39,825

$

38,874

$

36,914

$ 

Preferred stock

(4,769)

(4,769)

(4,769)

(4,769)

(3,694)

Noncontrolling interests

(1,316)

(1,269)

(1,164)

(1,082)

(1,014)

Goodwill (net of deferred tax liability)

(8,333)

(8,351)

(8,194)

(8,205)

(8,233)

Intangible assets (exclude mortgage servicing rights)

(963)

(1,006)

(980)

(1,118)

(1,182)

Tangible common equity (a)

25,466

24,872

24,718

23,700

22,791

Tier 1 capital, determined in accordance with prescribed regulatory requirements using Basel I definition

31,774

31,203

30,766

30,044

29,976

Trust preferred securities

-

-

-

-

(1,800)

Preferred stock

(4,769)

(4,769)

(4,769)

(4,769)

(3,694)

Noncontrolling interests, less preferred stock not eligible for Tier I capital

(684)

(685)

(685)

(685)

(686)

Tier 1 common equity using Basel I definition (b)

26,321

25,749

25,312

24,590

23,796

Tangible common equity (as calculated above)

22,791

Adjustments¹

434

Tier 1 common equity using Basel III proposals published prior to June 2012 (c)

23,225

Tangible common equity (as calculated above)

25,466

24,872

24,718

23,700

81

126

157

153

Tier 1 common equity approximated using proposed rules for the Basel III standardized approach released June 2012 (d)

25,547

24,998

24,875

23,853

Total assets

355,447

353,855

352,253

353,136

340,762

Goodwill (net of deferred tax liability)

(8,333)

(8,351)

(8,194)

(8,205)

(8,233)

Intangible assets (exclude mortgage servicing rights)

(963)

(1,006)

(980)

(1,118)

(1,182)

Tangible assets (e)

346,151

344,498

343,079

343,813

331,347

Risk-weighted assets, determined in accordance with prescribed regulatory requirements using Basel I definition (f)

289,672

287,611

282,033

279,972

274,847

Risk-weighted assets using Basel III proposals published prior to June 2012 (g)

-

-

-

-

277,856

Risk-weighted assets, determined in accordance with prescribed regulatory requirements using Basel I definition

289,672

287,611

282,033

279,972

21,021

21,233

22,167

23,240

Risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012 (h)

310,693

308,844

304,200

303,212

Ratios

Tangible common equity to tangible assets (a)/(e)

7.4%

7.2%

7.2%

6.9%

6.9%

Tangible common equity to risk-weighted assets using Basel I definition (a)/(f)

8.8%

8.6%

8.8%

8.5%

8.3%

Tier 1 common equity to risk-weighted assets using Basel I definition (b)/(f)

9.1%

9.0%

9.0%

8.8%

8.7%

Tier 1 common equity to risk-weighted assets using Basel III proposals published prior to June 2012 (c)/(g)

-

-

-

-

8.4%

Tier 1 common equity to risk-weighted assets approximated using proposed rules for the

8.2%

8.1%

8.2%

7.9%

-

1Q13

risk-weighted

assets

are

preliminary

data,

subject

to

change

prior

to

filings

with

applicable

regulatory

agencies

1

Principally net losses on cash flow hedges included in accumulated other comprehensive income

2

Includes

net

losses

on

cash

flow

hedges

included

in

accumulated

other

comprehensive

income,

unrealized

losses

on

securities

transferred

from

available-for-sale

to

held-to-maturity

included

in

accumulated

other comprehensive income and disallowed mortgage servicing rights

3

Includes higher risk-weighting for residential mortgages, unfunded loan commitments, investment securities and purchased mortgage servicing rights, and other adjustments

Basel III standardized approach released June 2012 (d)/(h)

Adjustments²

Adjustments³

U.S. Bancorp

1Q13 Earnings

Conference Call

U.S. Bancorp

1Q13 Earnings

Conference Call

April 16, 2013