US Bancorp To Host Investor Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Erika Najarian - UBS Equities - Analyst : Erika Najarian, UBS. First of all, I have to commend you, Andy, for not only look much younger than your proxy age, but for -- and to your Board for having the presence of mind to not just tell us that you're thinking about succession, but to show us. I think Gunjan did a great job, and there are some money centers that don't even let us know what's happening, right? So first, I have to commend you on that. I guess I have two questions. Number one, one of your biggest peers in transaction service is the number one player. Just had a huge Investor Day just focused on that business. And technology was one of the big themes and topics of that day. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2024 / 12:00PM, USB.N - US Bancorp To Host Investor Day And I'm wondering, it's really hard for us to take those bars and understand where those are distributed and allocated in terms of investment. So if you could tell us how you have invested in transaction services in terms of technology for the corporates as well as maybe the pipes globally, whether you're into Asia, not just Europe? So this is the first question. And the second question is that your non-blue-colored states, Stephen had shown in the map that you have corporate presence in Texas, Tennessee, North Carolina, Georgia and Florida, that's the right part of the smile. But what is the opportunity as you think about it? I mean the $5 billion buyback sounds great today. But if opportunities arise, and I'm not just talking about buying a bank, you had Huntington lift a bunch of teams organically over the past 12 months. Is that something that you'd be very forward thinking in terms of, okay, we promised this $5 billion buyback, but look at all these opportunities that may fall out of whatever happens next year?

Question: Erika Najarian - UBS Equities - Analyst : Since I still have the lines of business heads here, this is specifically to that. Two parts, one on card and one on WCIB. On card, the Smartly press release, the product reads similarly to the BofA card, where they were leaning into their wealth management clients, which is spectacular if you're a Merrill account holder. That being said, you do compete with giants and a giant getting even larger in consumer card. And from the outside, if you're not a BofA cardholder, they're kind of schmSh in card. And so I'm just wondering if deepening consumer card is still the right strategy. And on the business banking side, those are really compelling slides that you showed in terms of the opportunity. I'm wondering if you plan to be as robust on marketing as we hear about Ink and AMEX and all the other different products all the time. And for Stephen, wealth and capital markets are clearly very expensive in terms of building out. So how do you keep the top-of-the-house enterprise promise for positive operating leverage, especially in the 12% to 15% CAGR in banking, while delivering on that revenue push in both of those businesses?

Question: John Pancari - Evercore ISI - Analyst : John Pancari, Evercore ISI. Just a quick question on buybacks. I hear that regarding the $5 billion program and that you're likely to start off modest at first and accelerate. Can you maybe help us think about the pace as we look at 2025 and 2026 and how that could ramp? And then secondly, I just wanted to see if you could provide a little bit more color just around how we should think about balance sheet growth, the pace of balance sheet growth, under that medium-term target. I know you gave us some pretty good color around the profitability expectations. But how do you see the pace of balance sheet growth, particularly on the asset side in that medium-term view? Thanks.