US Bancorp at Barclays Global Financial Services Conference Transcript

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

Question: Jason Goldberg - Barclays Services Corp - Analyst : We'll put up the first ARS question that we've been asking all the companies. But Gunjan, maybe start with you, five months on the job, certainly as CEO, maybe just start off by catching us up on what you've been up to since mid-April, key lessons learned so far in your new role.

Question: Jason Goldberg - Barclays Services Corp - Analyst : I guess as a follow-up to that, you talked about these three strategic priorities for the near term. Maybe you can just update us on those and the kind of the progress you've made? 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 09, 2025 / 1:45PM, USB.N - US Bancorp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. Maybe put up the next ARS question. I guess as a follow-up to what you just said, though, you mentioned organic growth and expense management, both strategic priorities. You mentioned seven straight quarters of stable expenses, which I guess, on one hand, is good. I guess on the other hand, I don't know, any kind of impact on revenue growth from kind of focusing on expenses? And just how do you balance the two?

Question: Jason Goldberg - Barclays Services Corp - Analyst : I guess one of the things that we learned at investor day was spending about $2.5 billion a year on investments. I mean, have we kind of reached a tipping point there? And just where is most of these investments going? Is it more offensive to drive growth, more defensive? And just how should we think about that? 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 09, 2025 / 1:45PM, USB.N - US Bancorp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Services Corp - Analyst : I guess maybe just talk to payments, it's like 1/4 of the revenue, so clearly a differentiator versus kind of other regional banks. Yes, we kind of, I guess, haven't seen kind of consistent year-over-year growth that we'd expect from some of those businesses. Maybe just kind of update us in terms of kind of your payment transformation progress and what we'd expect to see there.

Question: Jason Goldberg - Barclays Services Corp - Analyst : I guess maybe as an adjunct to that, stable coins has been coming up throughout the conference. Do you think this could be a disruptor to the overall payment ecosystem? Just how you think about using that? I'd just love to get your perspective given your kind of role in the payment space. 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 09, 2025 / 1:45PM, USB.N - US Bancorp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. So we're at the halfway point, so I'm obligated to ask. Two weeks left to go in the quarter. John, I guess this is you.

Question: Jason Goldberg - Barclays Services Corp - Analyst : Maybe provide us an update on kind of business loan growth trends. What are you hearing from customers regarding the operating environment?

Question: Jason Goldberg - Barclays Services Corp - Analyst : I guess maybe before we delve more further into the drivers, just you guys gave that earnings guidance slide in your deck that's kind of onto 2025 and topic. Maybe just -- I guess, as it all remain intact, you talked about revenue growth for the year growing at the lower end of up 3% to 5%. Is that still the right way to think about it? And just any update you want to provide.

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. So all right. Because, I guess, if 3Q NII fees and expenses all doing a little bit better than expected, any chance we can get that revenue towards the middle of that 3% to 5%?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. Maybe talk about deposits a little bit. Last quarter, you talked about some competitive pressures on the commercial front. Has that moderated? It kind of felt like -- it felt like that maybe US Banks saw that a bit more than peers and just, I guess, balances mix, kind of what we're seeing on that front. 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 09, 2025 / 1:45PM, USB.N - US Bancorp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Services Corp - Analyst : I guess you touched on this, but a I'm told it's going to cut next week, and maybe I would assume, again. I guess, on the way up, you had one of the higher betas, I guess, to cut, do you expect kind of the same beta as you laid out in investor day? Or just how you're all thinking about that? This cycle has been a little bit different like time on pause.

Question: Jason Goldberg - Barclays Services Corp - Analyst : Maybe put up the next ARS question. So right, no good details on, you pointed to the higher end of NII for the 3Q guide. I guess, to think about 2026, you talked about this 3% NIM at some point. It was $2.66 in the second quarter. Maybe just talk to just how you're thinking about next year that NIM improvement story and just how kind of rate cuts play into that?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And then maybe on the fee side, Gunjan, you talked a lot about the payments businesses, but maybe there's obviously other fee categories that have done that contribute capital markets. For example, you've talked about mid-single-digit growth. I guess, John, maybe alluded to a little bit better than that. Let me just kind of flesh out the fee story.

Question: Jason Goldberg - Barclays Services Corp - Analyst : So I guess you talked about $3 billion for the second quarter and kind of mid-single-digit growth target over time. Is that still the right way to think about it?

Question: Jason Goldberg - Barclays Services Corp - Analyst : And then just the other target you've talked about is kind of 200 basis points plus of positive operating leverage for this year. It feels like that's intact. But just how do we think about that number, maybe looking out to next year as you kind of imagine beginning the 2026 budget process?

Question: Jason Goldberg - Barclays Services Corp - Analyst : So I guess, we've seen John alluded to, we're going to see the eighth straight quarter of stable expenses. I mean, do we see 12 straight quarters of stable expenses? Or spend as long as the operating leverage is there?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Yes. Six minutes left, six questions. So we're going to go rapid fire. Only one of them, sorry. Credit quality been stable. I guess, any areas that we should be focused on?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Yes, we're good. I guess capital return. Share repurchase have been fairly modest, like in $100 million a quarter for the last several quarters, a modest amount of earnings. Historically, share rebuy back has been like 30%, 40% of earnings, now something like 5% of earnings. How do you kind of -- its 30% to 40%, still the right way to think about longer term? And then when do you think we can get back there?

Question: Jason Goldberg - Barclays Services Corp - Analyst : I guess, adjusted CET1 in the second quarter was 8.9%. Is there kind of a number you want to get to before you kind of ramp up the buyback? And you've actually taken a fair amount of actions to kind of improve capital position. Is there more we could do there?

Question: Jason Goldberg - Barclays Services Corp - Analyst : And then another use of capital is bank M&A. US Bank has a long history of doing bank deals, not recently, just how do you think about the acquisition landscape? How does that play into the growth strategy? 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 09, 2025 / 1:45PM, USB.N - US Bancorp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Services Corp - Analyst : Good to hear. And then one question we get asked a lot is just how you're preparing for the category two designation? You went to inspect the cross side? Any update there?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And just put up the last ARS question. But, Gunjan, maybe to wrap up, you've -- we've talked in the past about kind of restoring investors' confidence in US Bank's narrative, and execution is your top priority. Your view, kind of what aspects of USB story do you believe the market may be overlooking or underestimating? And what will you -- do think it will take to get the stock back to its premium valuation?