US Bancorp : 2Q 2021 Slide Presentation

U.S. Bancorp

2Q21 Earnings Conference Call

July 15, 2021

U.S. BANCORP

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 hereof. 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. The COVID-19 pandemic is adversely affecting U.S. Bancorp, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect U.S. Bancorp's revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices could affect U.S. Bancorp in substantial and unpredictable ways. U.S. Bancorp's results could also be adversely affected by changes in interest rates; further increases in unemployment 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 its investment securities; legal and regulatory developments; litigation; increased competition from both banks and non-banks; civil unrest; changes in customer behavior and preferences; breaches in data security, including as a result of work-from-home arrangements; failures to safeguard personal information; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management's ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation 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, 2020, 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. In addition, factors other than these risks also could adversely affect U.S. Bancorp's results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Forward-looking statements speak only as of the date hereof, 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 calculations of these measures are provided in the Appendix. 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.

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2Q21 Highlights

Income Statement			change vs.
$ in millions, except EPS		2Q21	1Q21		2Q20
Net interest income*	$	3,164	2.4	%	(1.9) %
Noninterest income		2,619	10.0		0.2
Reported net income		1,982	(13.1)		nm
Diluted EPS	$	1.28	(11.7) %	nm
Balance Sheet			change vs.
$ in billions		2Q21	1Q21		2Q20
Average earning assets	$	500.8	0.6	%	1.3 %
Average total loans		294.3	0.1		(7.5)
Average total deposits		429.2	0.7		6.4

Credit Quality			change vs.
$ in millions	2Q21		1Q21		2Q20
Nonperforming assets	$1,059		(11.9)	%	(9.7)	%
NPA ratio	0.36	%	(5 bps)		(2 bps)
Net charge-off ratio	0.25	%	(6 bps)		(30 bps)

Capital			change vs.
2Q21		1Q21	2Q20
CET1 capital ratio**	9.9	%	0 bps	90 bps
Book value per share	$31.74		4.0 %	4.2 %
Earnings returned (millions)***	$1,512

• Taxable-equivalentbasis; see slide 26 for calculation
• Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology was 9.5% as of 6/30/21.

*** Earnings returned (millions) = total common dividends paid and aggregate value of common shares repurchased

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Performance Ratios

Return on	Return on	Return on	Efficiency Ratio* &
Average Assets	Average Common Equity	Tangible Common Equity*	Net Interest Margin**
		24.3%
1.69%	19.0%	20.9%		62.1%
1.44%	16.3%		57.6%	59.0%

0.51%	5.3%	7.1%

2.62% 2.50% 2.53%

2Q20

1Q21

2Q21

2Q20

1Q21

2Q21

2Q20

1Q21

2Q21

2Q20

1Q21

2Q21

• Non-GAAP;see slides 26 and 27 for calculations
• Net interest margin on a taxable-equivalent basis

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Digital Engagement Trends

Digital Active Customers

(% of Total Active Customers)*

80%		72%			77%	79%
60%		52%	55%	56%	60%
50%		47%
40%
20%
0%		5/31/19		5/31/20		5/31/21
		Mobile	Online	Total Digital

% of Loan Sales**

	Transactions (% of Total)
80%		76%	80%
67%
60%
40%	33%	24%
		20%
20%
0%	Three months ended
	5/31/19	5/31/20	5/31/21
	Total Digital	Branch, ATM, Phone and IVR

80%											62%			61%	62%	67%	70%	68%	66%	62%		65%
					58%	57%	59%	60%						61%
		55%	55%
60%		53%
		45%	45%	47%	42%	43%	41%	40%	38%	39%	38%					38%	39%
40%					33%	30%	32%	34%	35%
20%
0%
	Jan-20	Feb-20	Mar-20Apr-20	May-20	Jun-20	Jul-20Aug-20		Sep-20Oct-20Nov-20Dec-20	Jan-21	Feb-21Mar-21	Apr-21May-21
										Digital		Branch & Phone

• Represents core Consumer Banking customers active in at least one channel in the previous 90 days
• This chart reflects digital sales definitions aligned to Finalta

Total Digital includes both online and mobile platforms

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