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0000950123-10-008663.txt : 201002040000950123-10-008663.hdr.sgml
: 2010020420100204132317ACCESSION
NUMBER:0000950123-10-008663CONFORMED SUBMISSION TYPE:8-KPUBLIC
DOCUMENT COUNT:34CONFORMED PERIOD OF REPORT:20100202ITEM
INFORMATION:Other EventsITEM INFORMATION:Financial Statements and
ExhibitsFILED AS OF DATE:20100204DATE AS OF CHANGE:20100204
FILER:
COMPANY DATA:COMPANY CONFORMED NAME:US BANCORP \DE\CENTRAL INDEX
KEY:0000036104STANDARD INDUSTRIAL CLASSIFICATION:NATIONAL
COMMERCIAL BANKS [6021]IRS NUMBER:410255900STATE OF
INCORPORATION:DEFISCAL YEAR END:1231
FILING VALUES:FORM TYPE:8-KSEC ACT:1934 ActSEC FILE
NUMBER:001-06880FILM NUMBER:10573455
BUSINESS ADDRESS:STREET 1:U.S.BANCORPSTREET 2:800 NICOLLET
MALLCITY:MINNEAPOLISSTATE:MNZIP:55402BUSINESS
PHONE:(651)466-3000
MAIL ADDRESS:STREET 1:U.S.BANCORPSTREET 2:800 NICOLLET
MALLCITY:MINNEAPOLISSTATE:MNZIP:55402
FORMER COMPANY:FORMER CONFORMED NAME:FIRST BANK SYSTEM INCDATE
OF NAME CHANGE:19920703
FORMER COMPANY:FORMER CONFORMED NAME:FIRST BANK STOCK CORPDATE
OF NAME CHANGE:19720317
8-K1c95649e8vk.htmFORM 8-K
Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report (Date of earliest event reported): February 2,
2010
U.S. BANCORP
(Exact name of registrant as specified
in its charter)
Delaware 1-6880 41-0255900
(State or other Jurisdiction of Incorporation) (Commission File
Number) (IRS Employer Identification No.)
800 Nicollet Mall
Minneapolis, Minnesota
55402
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code: (651)
466-3000
Not Applicable
(Former name or former address if changed since last
report.)
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the
registrantunder any of the following provisions:
o Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
1
Item8.01. Other Events.
As previously announced, Richard K. Davis, U.S. Bancorps
Chairman, President and Chief Executive Officer, made apresentation
at the Morgan Stanley U.S. Financials 2010 Conference, on Tuesday,
February2, 2010, at the New YorkPalace Hotel in New York City. A
copy of the presentation slides discussed during the presentation
is attached heretoas Exhibit99.1 and is incorporated herein by
reference.
Item9.01 Financial Statements and Exhibits.
(d)Exhibits.
99.1 Morgan Stanley U.S. Financials 2010 Conference Presentation
Slides
2
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report tobe signed on its
behalf by the undersigned hereunto duly authorized.
U.S. BANCORP
By:/s/ Lee R. Mitau
Lee R. Mitau
Executive Vice President, General Counsel and
Corporate Secretary
Date: February4, 2010
3
3
EXHIBIT INDEX
Exhibit
Number Description
99.1
Morgan Stanley U.S. Financials 2010 Conference Presentation
Slides
4
4
EX-99.12c95649exv99w1.htmEXHIBIT 99.1
Exhibit 99.1
Exhibit99.1
Richard K. Davis
Chairman, President and CEO
February 2, 2010
Morgan Stanley
U.S. Financials
2010 Conference
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,
includingstatements about beliefs and expectations, are
forward-looking statements and are based on the information
available to, andassumptions 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
involveinherent risks and uncertainties, and important factors
could cause actual results to differ materially from those
anticipated. Global anddomestic economies could fail to recover
from the recent economic downturn or could experience another
severe contraction, whichcould adversely affect our revenues and
the values of our assets and liabilities. Global financial markets
could experience a recurrenceof significant turbulence, which could
reduce the availability of funding to certain financial
institutions and lead to a tightening of credit, areduction of
business activity, and increased market volatility. Stress in the
commercial real estate markets, as well as a delay or failureof
recovery in the residential real estate markets, could cause
additional credit losses and deterioration in asset values. In
addition, ourbusiness and financial performance could be impacted
as the financial industry restructures in the current environment,
by increasedregulation of financial institutions or other effects
of recently enacted legislation, and by changes in the competitive
landscape. Ourresults could also be adversely affected by continued
deterioration in general business and economic conditions; changes
in interestrates; deterioration in the credit quality of our loan
portfolios or in the value of the collateral securing those loans;
deterioration in thevalue of securities held in our investment
securities portfolio; legal and regulatory developments; increased
competition from both banksand non-banks; changes in customer
behavior and preferences; effects of mergers and acquisitions and
related integration; effects ofcritical accounting policies and
judgments; and management's ability to effectively manage credit
risk, market risk, operational risk, legalrisk, and regulatory and
compliance risk.
For discussion of these and other risks that may cause actual
results to differ from expectations, refer to U.S. Bancorp's Annual
Reporton Form 10-K for the year ended December 31, 2008, on file
with the Securities and Exchange Commission, including the
sectionsentitled "Risk Factors" and "Corporate Risk Profile"
contained in Exhibit 13, and all subsequent filings with the
Securities and ExchangeCommission under Sections 13(a), 13(c), 14
or 15(d) of the Securities Exchange Act of 1934. Forward-looking
statements speak only asof the date they are made, and the Company
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
thosemeasures to GAAP measures are provided within or in the
appendix of the presentation. These disclosures should not be
viewed as asubstitute for operating results determined in
accordance with GAAP, nor are they necessarily comparable to
non-GAAP performancemeasures that may be presented by other
companies.
4Q09 Dimensions
Regional
Consumer and Business Banking
Wealth Management
National
Wholesale Banking
Trust Services
Global
Payments
*As of January 29, 2010
U.S. Bancorp Businesses
Asset Size $281 billion
Deposits $183 billion
Loans $195 billion
Customers 15.8 million
NYSE Traded USB
Market Capitalization* $48 billion
Founded 1863
Bank Branches* 3,015
ATMs 5,148
U.S.
Rank Company $Billions
1 Bank of America $2,223
2 J.P. Morgan 2,032
3 Citigroup 1,856
4 Wells Fargo 1,244
5 U.S. Bancorp 281
6 PNC 270
7 SunTrust 174
8 BB&T 166
9 Regions 142
10 Fifth Third 113
U.S.
Rank Company $Billions
1 J.P. Morgan $154
2 Wells Fargo 147
3 Bank of America 131
4 Citigroup 95
5 U.S. Bancorp 48
6 PNC 26
7 BB&T 19
8 SunTrust 12
9 Fifth Third 10
10 M&T 9
Total Assets and Market Value
Source: company reports & FactSet
Assets as of 12/31/09, Market Value as of 1/29/10
Assets
Market Value
Performance vs Peers
Source: SNL, 1Q08 through 4Q09
Peer Banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI, USB and
WFC
Since 1/1/08 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer
7 Peer 8 Peer 9 ROA 0.0102 0.0082 0.0082 0.0079 0.0045 0.0024
USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer
9 ROE 0.104 0.09 0.081 0.072 0.057 0.025
USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer
9 EF 0.477 0.514 0.544 0.549 0.564 0.591 0.597 0.679 0.685 0.75
Return on Avg Assets
Return on Avg Equity
Efficiency Ratio
Consumer Wholesale PCTAM Payments Treas & Corp Support
Revenue 44 20 10 26 0
Diversification
Full year 2009, taxable-equivalent basis
Excluding securities gains (losses) net 2004 2005 2006 2007 2008
2009 Fee Income 0.445 0.469 0.505 0.518 0.498 0.491 Core 0 0 0 0 0
0
Revenue Mix
By Business Line
Fee Income / Total Revenue
Consumer
44%
Payments
26%
Wealth
Mgmt
10%
Wholesale
20%
Revenue Growth 4Q08 1Q09 2Q09 3Q09 4Q09 Reported 3624 3883 4159
4250 4376 Core 3839 3989 4178 4287 4534
2005 2006 2007 2008 2009 Reported 13239 13742 14060 14677
16668
$ in millions
Taxable-equivalent basis
Prior 5 Quarters
Year-Over-Year Core Growth
4.4% 8.0% 8.2% 12.0% 18.1%
Prior 5 Years
Year-Over-Year Growth
3.8% 3.8% 2.3% 4.4% 13.6%
USB Record
Revenue 2009
Reported
Core
Loan and Deposit Growth 4Q08 1Q09 2Q09 3Q09 4Q09 Loans 177.2
185.7 183.9 182 191.6 Deposits 144.5 160.5 163.2 166.4 180.9
2005 2006 2007 2008 2009 Loans 136.5 143.6 153.8 185.2 195.4
Deposits 124.7 124.9 131.4 159.4 183.2
$ in billions
8.2%
$191.6
17.0%
$177.2
19.6%
$185.7
12.8%
$183.9
9.3%
$182.0
25.2%
$180.9
15.2%
$144.5
22.7%
$160.5
20.2%
$163.2
24.6%
$166.4
5.5%
$195.4
9.3%
$136.5
5.2%
$143.6
7.1%
$153.8
20.4%
$185.2
14.9%
$183.2
3.3%
$124.7
0.2%
$124.9
5.2%
$131.4
21.3%
$159.4
Loans
Deposits
Prior 5 Quarters
Average Balances
Year-Over-Year Growth
Prior 5 Years
Ending Balances
Year-Over-Year Growth
Capital Position
$ in billions
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 NPA $ Change
76 49 155 290 357 489 727 626 386 184 NPA % Change 0.13 0.08 0.22
0.34 0.31 0.33 0.37 0.23 0.12 0.05
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 NCO $ Change 8
26 68 103 102 134 156 141 112 69 NCO % Change 0.041884817
0.130653266 0.302222222 0.351535836 0.257575758 0.269076305
0.246835443 0.17893401 0.12056 0.07
Credit Quality
$ in millions, linked quarter change
* Excluding Covered Assets (assets subject to loss sharing
agreements with FDIC)
Change in Net Charge-offs
Change in Nonperforming Assets*
The Company continues to expect Net Charge-offs andNonperforming
Assets, excluding nonperforming acquired coveredassets, to increase
at a decreasing rate
NCO $ Change (Left Scale)
NCO % Change (Right Scale)
NPA $ Change (Left Scale)
NPA % Change (Right Scale)
Credit Quality - Reserves 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
3Q09 4Q09 Allowance 2260 2243 2448 2648 3004 3575 4105 4571 4986
Provision Exceeding NCO's 0 192 200 250 635 530 466 415 278
Provision/NCO's 1 1.66 1.51 1.5 2 1.67 1.5 1.4 1.25
Allowance for Credit Losses
Allowance
Provision Exceeding NCO's
Provision/NCO's
$ in millions
Credit Quality - Provision Expense
Net Charge-offs and Provision
$ in millions 4Q08 1Q09 2Q09 3Q09 4Q09 Net Charge-offs 632 788
929 1041 1110 Reserve Build 1267 1318 1395 1456 1388
100%
67%
50%
40%
25%
Net Charge-offs
Provision Exceeding NCO's
Credit Quality - Total Loans 4Q08 1Q09 2Q09 3Q09 4Q09 Average
Loans 177.2 185.7 183.9 182 191.6 Net Charge-offs Ratio 0.0142
0.0172 0.0203 0.0227 0.023
Average Loans and Net Charge-offs Ratios
4Q08 3Q09 4Q09
Allowance for credit losses as % of:
Period-end loans 2.09% 2.88% 3.04%
Nonperforming loans 206% 150% 153%
Nonperforming assets 184% 134% 135%
Nonperforming assets to loans
plus ORE 1.14% 2.14% 2.25% Commercial CRE Res Mtg & Home
Equity Credit Card Other Retail Covered Mix 49979 34044 45065 16399
27657 18504
Commercial
$50.0
Covered
$18.5
Retail Leasing
& Other Retail
$27.6
Credit Card
$16.4
Commercial
Real Estate
$34.0
Residential Mortgage
& Home Equity
$45.1
$ in billions
Key Statistics*
* Excluding Covered Assets (assets subject to loss sharing
agreements with FDIC)
Average Loans by Type
Current Environment
Potential
Regulatory / Legislative Changes 2010 $ Impact
Proprietary Trading N/A
Hedge Fund Ownership N/A
Private Equity Investments Immaterial
Card Act ^ $80 - $100 million
Overdraft Legislation ^ $200 - $300 million
Financial Crisis Responsibility Fee ^ $125 - $150 million
15
Strategic Evolution
Conservative credit culture
Low-cost operating model
Efficient use of capital
Fortress balance sheet
Diversification of risk & revenue
Enterprise Revenue Office
PowerBank
National Corporate Banking expansion
Re-focused Wealth Management
National Mortgage Banking expansion
Brand Development / Advertising
Employee engagement
Deposit pricing parity
Selective M&A & Joint Ventures
(2001 - 2006)
Strong Defense
Investing for Growth
(2007 - 2009)
Good to Great
(2010 - 2012)
Conservative credit culture
Low-cost operating model
Efficient use of capital
Fortress balance sheet
Diversification of risk & revenue
Enterprise Revenue Office
PowerBank
National Corporate Banking expansion
Re-focused Wealth Management
National Mortgage Banking expansion
Brand Development / Advertising
Employee engagement
Deposit pricing parity
Selective M&A & Joint Ventures
Investing in infrastructure and talent
Achieving relevant scale
Differentiating on customer experience
Conservative credit culture
Low-cost operating model
Efficient use of capital
Fortress balance sheet
Diversification of risk & revenue
Expense Driven
Flight-to-Quality
Organic Market Share Gain
Acquisitions Since 2008 Consumer Wholesale PCTAM Payments
Revenue 44 20 10 26
Payments
Merchant processing portfolioof Citizens National Bank
Credit card portfolios from Citi
Merchant processing portfolioof MB Financial Bank
Credit card portfolio of TownNorth Bank
ATM-related services of PalmDesert National Bank
Merchant processingportfolio of CapitalCity Bank
Southern DataComm
Numerous smallportfolios
Integration
Bank / FDIC assisted Status
Banking subsidiaries On Schedule
of FBOP Corporation
BB&T's Nevada Completed
banking operations
First Bank of Idaho Completed
Downey Savings Competed
& Loan Association
PFF Bank & Trust Completed
Mellon 1st Business Bank Completed
Trust Businesses
Bond trustee businessof First Citizens bank
Mutual fund servicingdivision of FiduciaryManagement, Inc
Corporate Trustbusiness of AmeriServFinancial
Consumer
Wealth
Mgmt
Wholesale
Payments
Enterprise Revenue Office -Building Deeper Relationships
Wealth Management - High Net-Worth Focus/Market Segmentation
Corporate Banking Expansion
Payments
Customer Experience
S.T.A.R.T.
Innovation
.....and more
Business Line Growth Initiatives
18
Positioned for Growth
Opportunities
Core businesses continue to perform
Solid capital and liquidity position
Positioned to capitalize on economic recovery
"Flight to Quality"
Investing for growth - organic initiatives, M&A and joint
ventures
USB prepared to opportunistically acquire
Core businesses are scalable and can be leveraged as the economy
recovers
Challenges
Credit quality
Regulatory / legislative oversight and actions
19
U.S. Bancorp
Richard K. Davis
Chairman, President and CEO
February 2, 2010
Morgan Stanley
U.S. Financials
2010 Conference
Appendix
Credit Quality - Commercial Loans 4Q08 1Q09 2Q09 3Q09 4Q09
Average Loans 50328 49362 47362 44655 43490 Net Charge-offs Ratio
0.0085 0.0092 0.015 0.0178 0.0228
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Corporate loan demand remained weak as evidenced by the
declining utilization trend
Net charge-offs increased with losses coming mainly from
leveraged sectors, such ascorrespondent banking and gaming
4Q08 3Q09 4Q09
Average Loans 50,328 44,655 43,490
30-89 Delinquencies 1.32% 0.89% 1.02%
90+ Delinquencies 0.15% 0.19% 0.25%
Nonperforming 0.58% 2.06% 2.05% 1208 0109 0209 0309 0409 0509
0609 0709 0809 0909 1009 1109 1209 Utilization 0.3705 0.3757 0.374
0.3662 0.3602 0.3507 0.3382 0.3201 0.311 0.3095 0.3007 0.3043
0.2883
Revolving Line Utilization Trend
$ in millions
Credit Quality - Commercial Leases 4Q08 1Q09 2Q09 3Q09 4Q09
Average Loans 6608 6772 6697 6567 6489 Net Charge-offs Ratio 0.0187
0.0329 0.0329 0.0266 0.0202
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Delinquency levels and net charge-offs have declined due to
improvement in the small ticketleasing portfolio
4Q08 3Q09 4Q09
Average Loans 6,608 6,567 6,489
30-89 Delinquencies 2.61% 2.28% 2.07%
90+ Delinquencies --% --% --%
Nonperforming 1.49% 1.82% 1.91%
$ in millions EF ST Mix 2165 4324
Equipment
Finance
$2,165
Small Ticket
$4,324
Credit Quality - CRE Mortgages 4Q08 1Q09 2Q09 3Q09 4Q09 Average
Loans 22967 23553 23875 24296 24895 Net Charge-offs Ratio 0.0024
0.0022 0.0047 0.0049 0.0048
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Average loans increased 2.5% on a linked quarter basis and
increased 8.4% over 4Q08 due to thelack of permanent financing
previously available in the CMBS market
4Q08 3Q09 4Q09
Average Loans 22,967 24,296 24,895
30-89 Delinquencies 0.83% 0.95% 1.08%
90+ Delinquencies --% 0.01% --%
Nonperforming 1.25% 2.04% 2.30% Investor Owner Mix 13948
10947
Investor
$13,948
Owner Occupied
$10,947
$ in millions
Credit Quality - CRE Construction 4Q08 1Q09 2Q09 3Q09 4Q09
Average Loans 9691 9845 9852 9533 9149 Net Charge-offs Ratio 0.0259
0.0482 0.0379 0.0662 0.0624
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Residential construction has declined from $4.7 billion in 3Q07
to $2.3 billion in 4Q09, whichincludes $0.6 billion in condominium
exposure
Net charge-offs remain elevated at 6.24%, reflecting market
value declines in both commercial andresidential construction
properties
4Q08 3Q09 4Q09
Average Loans 9,691 9,533 9,149
30-89 Delinquencies 4.33% 2.30% 2.67%
90+ Delinquencies 0.36% 0.39% 0.07%
Nonperforming 7.98% 13.30% 13.57%
Multi-family
$2,126
Other
$1,255
Office
$986
A&D Construction
$1,077
Retail
$1,389
Condo Construction
$627
Residential Construction
$1,689
$ in millions Multi-Family Retial Res Construction Condo
Construction A&D Commercial Office Other Mix 2126 1389 1689 627
1077 986 1255
4Q08 1Q09 2Q09 3Q09 4Q09 Restructured 813 1129 1289 1338
1354
Credit Quality - Residential Mortgage 4Q08 1Q09 2Q09 3Q09 4Q09
Average Loans 23430 23915 23964 24405 25621 Net Charge-offs Ratio
0.0143 0.0154 0.0194 0.021 0.0237
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Continue to actively work with customers to modify loans for
borrowers who are having financialdifficulties
Began participating in HAMP program in September 2009, now at
26% of active trial modificationsas a percent of eligible
modifications
4Q08 3Q09 4Q09
Average Loans 23,430 24,405 25,621
30-89 Delinquencies 2.27% 2.39% 2.36%
90+ Delinquencies 1.55% 2.32% 2.80%
Nonperforming 0.89% 1.54% 1.79%
Residential Mortgage
Restructured Loans
$ in millions
Credit Quality - Home Equity 4Q08 1Q09 2Q09 3Q09 4Q09 Average
Loans 18691 19215 19314 19368 19444 Net Charge-offs Ratio 0.0111
0.0148 0.0172 0.0182 0.0196
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Demand is weak for home equity products
High quality traditional portfolio (branch and private client
originated) has performed well indeclining home value
environment
4Q08 3Q09 4Q09
Average Loans 18,691 19,368 19,444
30-89 Delinquencies 0.89% 1.00% 0.93%
90+ Delinquencies 0.55% 0.78% 0.78%
Nonperforming 0.07% 0.13% 0.17% Traditional Consumer Finance Mix
87 13
Traditional: 87%
Wtd Avg LTV: 71%
NCO: 1.29%
Consumer Finance: 13%
Wtd Avg LTV: 83%
NCO: 6.56%
$ in millions
4Q08 3Q09 4Q09
Average Loans 12,976 15,387 16,399
30-89 Delinquencies 2.73% 2.58% 2.38%
90+ Delinquencies 2.20% 2.41% 2.59%
Nonperforming 0.50% 0.77% 0.84%
Credit Quality - Credit Card 4Q08 1Q09 2Q09 3Q09 4Q09 Average
Loans 12976 13597 14329 15387 16399 Net Charge-offs Ratio 0.0518
0.0632 0.0736 0.0699 0.0689
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Excluding acquired portfolios, net charge-offs of 7.46%
increased modestly from 7.30% in priorquarter
Average loans have grown 6.6% on a linked quarter basis and
26.4% over 4Q08 due to newaccounts, balance growth initiatives and
portfolio acquisitions
$ in millions
Impact of Acquired Portfolios
Net Charge-off Ratio
4Q08 3Q09 4Q09
As Reported 5.18% 6.99% 6.89%
Excluding Acquired* 5.18% 7.30% 7.46%
* Excluding portfolio purchases where the acquired loans were
recorded at fair value at the purchase date
Credit Quality - Retail Leasing 4Q08 1Q09 2Q09 3Q09 4Q09 Average
Loans 5062 5115 5031 4822 4620 Net Charge-offs Ratio 0.0086 0.0103
0.008 0.0066 0.0043
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
30+ delinquency rates continue to improve
Improvement in used car prices has significantly reduced end of
term and credit losses
4Q08 3Q09 4Q09
Average Loans 5,062 4,822 4,620
30-89 Delinquencies 0.96% 0.79% 0.74%
90+ Delinquencies 0.16% 0.11% 0.11%
Nonperforming --% --% --%
$ in millions 1208 0109 0209 0309 0409 0509 0609 0709 0809 0909
1009 1109 1209 Index 98 101.7 105.5 106.1 106.6 109.1 114.1 115.4
116.4 118.5 117.4 117.4 117.5
Manheim Used Vehicle Value Index
Credit Quality - Other Retail 4Q08 1Q09 2Q09 3Q09 4Q09 Average
Loans 22247 22987 22753 22647 23037 Net Charge-offs Ratio 0.017
0.0175 0.018 0.0194 0.0191
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Average loans have grown 1.7% linked quarter basis and 3.6% over
4Q08 on strong growth inrevolving credit and student lending
portfolios
Auto loan portfolio loss rate declined to 1.17% in 4Q09, down
from 1.28% in 3Q09 and 1.47% in4Q08
4Q08 3Q09 4Q09
Average Loans 22,247 22,647 23,037
30-89 Delinquencies 1.13% 1.13% 1.10%
90+ Delinquencies 0.36% 0.37% 0.40%
Nonperforming 0.05% 0.10% 0.13% Auto Install Studend Revolving
Mix 9476 5506 4580 3475
Installment
$5,506
Auto Loans
$9,476
Revolving
Credit
$3,475
Student
Lending
$4,580
$ in millions
Non-Regulatory Capital Ratios
$ in millions
Richard K. Davis
Chairman, President and CEO
February 2, 2010
Morgan Stanley
U.S. Financials
2010 Conference
GRAPHIC3c95649c95649z0001.gifGRAPHIC
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