U.S. Bancorp (USB) Goldman Sachs 2024 U.S. Financial Services Conference summary

Economic and industry outlook

• Economic conditions are described as stable, with consumer spending and credit quality remaining solid and delinquency levels flat.

• Corporate sentiment is constructive, but loan growth and utilization remain flat, with optimism for improvement next year.

• Positive tone following the election, with expectations of potential regulatory easing benefiting banks and the broader economy.

Financial guidance and performance

• No changes to revenue, expense, or credit guidance for Q4 or the full year; net interest income expected to remain stable.

• Full-year expenses are projected at $16.8 billion, with fee income at the low end of the mid-single digit range.

• Mortgage softness is offset by strength in trust, investment management, and tax credit syndication fees.

• Prepaid card impacts will persist into the first quarter of next year.

Strategic priorities and growth

• Investment in digital capabilities and technology is flattening, leading to improved revenue opportunities and expense efficiencies.

• Focus on interconnectedness across retail, commercial, and payments businesses to deepen client relationships.

• Confident in achieving medium-term targets: industry-leading tangible return on common equity, positive operating leverage, and efficiency ratios in the high 50s.

• No constraints on loan growth; not expected to become a Category II bank until at least 2027.