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Fellow Shareholders:

At a time of dynamic and customer-driven change for the banking industry, one thing remains unchanged: U.S. Bancorp continues to deliver industry-leading financial performance, while also investing for an even
stronger future.

We are proud of the value U.S. Bancorp created for its shareholders in 2018 and grateful for our hardworking and dedicated employees who embrace our culture of ethics and integrity while diligently serving customers, communities, shareholders and each other. With our core values guiding us, we firmly believe that “doing the right thing” is our formula for success.

Andy Cecere, Chairman, President and Chief Executive Officer

As we reflect on all we accomplished in 2018, we also have sights set on maintaining our industry leadership in 2019 and beyond. Our long-term success requires balancing a best-in-class financial performance for shareholders with the right, forward-looking investments in our businesses. We are confident in our ability to meet this challenge because we manage the company both for today and for the future.

Andy Cecere photo
Andy Cecere, Chairman, President and Chief Executive Officer

Our confidence in our future performance is built on the four pillars of our strategic platform:

  • Striving for Simplicity
  • Creating the Future Now
  • Driving One U.S. Bank
  • Being the Most Trusted Choice

U.S. Bancorp’s value creation for our shareholders is centered on this strategic platform as we leverage culture, customer passion, efficiency, innovation, financial and risk discipline, and delivering the entirety of the bank’s value proposition to drive our future performance.

Creating the future now for our shareholders

The exceptional execution of our strategy allowed us to deliver record net income and earnings per share in 2018 for the eighth consecutive year.

In a year marked by intensifying competitive pressures, evolving customer expectations, political friction, regulatory changes, lending headwinds and a wide variety of other macro-factors, U.S. Bancorp navigated through it all to achieve record net income, revenue and earnings per diluted share.

In addition, we maintained our number one position in our key performance metrics of:

  • 1.55% ROA
  • 15.4% ROE
  • 55.1% efficiency ratio

Our financial discipline and risk profile allowed us to retain the best credit ratings among the world’s banking institutions, including being the best rated bank by Moody’s.

Ultimately, our financial performance allowed us to return

74% of our earnings to shareholders through dividends and our share repurchase program
U.S. Bancorp Board of Directors

One of U.S. Bancorp’s hallmarks for its steady financial performance is the leadership of our Board of Directors, and their commitment to governance of the bank. In 2018, we were fortunate to add three new board members. Dorothy Bridges, Elizabeth Buse and Yusuf Mehdi joined our board and brought with them fresh and diverse perspectives to blend with the existing board members, whose experience provides our organization with steady and reliable leadership and guidance.

Our commitment to governance is one of the primary reasons U.S. Bancorp has been honored as a 2019 World’s Most Ethical Company® by the Ethisphere Institute, an independent center of research promoting best practices in corporate
ethics and governance.

Most Ethical Companies logo

2019 is our fifth consecutive year on the list. “World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC.

Creating the future now for our employees

At U.S. Bancorp, our people and culture are our most important and valuable assets. Our future success is — and always will be — the direct result of our talented people. Their character, their commitment to service, their compassion and their unwavering resolve all help us to be the most trusted choice in banking.

Branch Manager Taylor Gilmore assists a customer at the U.S. Bank mobile unit after she lost everything in the 2018 fire in Paradise, CA.

Taylor Gilmore is a perfect example of the spirit of
U.S. Bancorp’s people.

In November 2018, wildfires swept through Northern California, with the city of Paradise being one of the hardest hit areas. Taylor is the Branch Manager for our Paradise branch, and while his home was spared destruction, he had five employees who lost their homes. Without hesitation, Taylor opened his home to all of them. At the same time, despite his branch being closed because of its location in the evacuation zone, he stayed in contact with his customers who needed emergency financial assistance.

He provided physical safety for his employees and financial safety for his customers. It was a remarkable demonstration of going above and beyond to serve our employees, customers and community.

Neal Richardson, Financial Education Strategy Manager,
at a Dream Builders 4 Equity site.

Neal Richardson is another great example.

Motivated by his own financial struggles growing up and his frustrations of seeing generational poverty perpetuated in his own community, Neal co-founded Dream Builders 4 Equity. His organization teaches at-risk youth about financial literacy and empowerment through real estate development and investment in low-income communities.

This was — again — above and beyond his day-to-day responsibilities at the bank. Neal’s program was so successful and his passion and vision for financial education so vivid, we asked him to run financial education for all of U.S. Bank.

Bankers at their best. Banking at its best.

Creating the future now for our customers

Digital banking. Moving money. Real-time payments. Instant approvals.
Automated-advising. E-commerce.

We live in a fast-paced and ever-changing world with lots of tech-oriented lexicon. In this environment, it is clear to U.S. Bancorp that helping our customers access the bank how, when and where they want, is all about operating with more agility in a dynamic digital age.

We ask ourselves every day: How can we make banking with us easier?

In 2018, we introduced several new digital lending products.

All three products are leading edge for the banking industry, because they are completely digital,
and approved funds are available fast.

Simple Loan
(Opens new window)

An easy-to-use solution for retail customers who need emergency funds fast.
Small business loan portal
(Opens new window)

A service for owners to gain access to capital in less than 24 hours.
Digital mortgage portal

Provides instant borrower credit approval for digital mortgage loans.

Throughout 2019, we will invest more capital than ever in digital initiatives that will create more value for our customers — individuals, small businesses, merchants and large corporations — and we will do it from a one U.S. Bank perspective so that they can benefit from the full value proposition of the bank.

It’s banking made easier.

Creating the future now for our communities

U.S. Bancorp’s social contract with its communities is a central component of being the most trusted choice and a central part of our future success. The world around us is different today than it was generations ago. Expectations for how we operate as a corporate citizen have never been higher.

Andy Cecere at a Special Olympics event.

As one of the largest financial institutions in the country, we understand our responsibility to revitalize neighborhoods, provide financial education, create employment opportunities, support small business development and affordable housing, embrace diversity and inclusion, and so much more.

One of our showcase community investments is the Pullman neighborhood in Chicago. Since 2010, our investment has enabled $113 million of new capital to revitalize this neighborhood. The numbers speak for themselves — 1,300 new jobs, 135 affordable housing units, a new community center and more. We are proud of what we have accomplished in the Pullman neighborhood and look to replicate this success in other communities around the country.

We also demonstrate our corporate citizenship through our Community Possible platform, which focuses on programs that create stable jobs, better homes and vibrant communities.

In 2018, U.S. Bank and our employees:
Invested $57M in programs and organizations
Volunteered 209,000 employee volunteer hours

We are creating the future now in our communities by investing in our future leaders and entrepreneurs studying in our schools and playing in our parks.

Most Trusted Choice

As Chairman, President and CEO of U.S. Bancorp, it is my privilege to be the steward of our trust-based relationships with our shareholders, customers, communities and employees. I view it as one of my highest priorities.

I am proud of the financial performance we delivered in 2018. Most importantly, I am proud of the 74,000 employees who carry our banner of trust every day.

Thank you for the trust you have placed with U.S. Bancorp. It is well placed today and in the future.

Sincerely,