A letter to our shareholders

For the past eight years, I have had the privilege to wake up every day and lead what I consider to be one of the best companies in the financial services industry. It has been the honor of a lifetime, and it carried important responsibilities: build on the foundation our predecessors started, take advantage of the moments that will define our present, and ensure our company’s strength and stability for years to come.

I look back with gratitude – recognizing the progress we made on our goals, the dynamic years we experienced together, and the milestones that are yet to be reached that someone else will now lead the company through.

As I prepare to transition the CEO title to Gunjan Kedia this spring, I am both reflective and optimistic. I have spent nearly 40 years working for this wonderful company, and you placed considerable trust in me. Thank you. Along with our Managing Committee and our entire team of more than 70,000 employees, we have worked hard to position the company for the best possible success. Although some of those choices and investments came at a  short-term cost, they have built a runway for long-term gains. I am confident in Gunjan and the entire Managing Committee and their ability to grow and lead U.S. Bancorp into a bright future.

U.S. Bancorp is a strong and respected company, as it has been for decades. Our stock has traded on the New York Stock Exchange for 40 years, and we continue to extend our reach far beyond what our institutional forerunners could have dreamed at our founding in 1863. We are proud of our ability to consistently deliver solid financial results no matter the economic climate, and we will continue to improve our performance. We invested in the business, rebuilt capital following the MUFG Union Bank acquisition, managed expenses to improve our efficiency, and returned to delivering positive operating leverage in the second half of 2024; we will continue to focus on actions to create value even in the most challenging of times. That will position us well for growth in 2025 and beyond.

We talked about our strategy to do so in September, when we hosted our first Investor Day in five years. Our usual triennial schedule was preempted first by COVID-19 and then by our Union Bank acquisition, but getting back to New York City and telling the U.S. Bank story to our investors and analysts was a priority for our team. We have invested billions of dollars in digital capabilities and technology. We have built scale through acquisitions and innovative partnerships like those we have with State Farm and Edward Jones. We have enhanced products and services like the recent launches of U.S. Bank Smartly® and our Business Access advisors. We also have spent considerable time simplifying and optimizing our organization – aligning business lines under Gunjan, centralizing our operations, and enhancing our technology experiences for employees and clients.

All these things came at a cost, whether in terms of resources, capital or reprioritization. They were, however, the right actions for our company. We took these steps without ever losing sight of our foundational strengths in risk and financial discipline or of our dedication to a culture of engagement and putting our clients first. Which is why, now, we find ourselves at an inflection point. It is incumbent upon us to leverage all we have done to maintain a leadership role in the industry. The investments we have made over the past seven years are now fully loaded into our run rate and revenue growth will come through our unique, interconnected businesses.

We have talked about being “one U.S. Bank” for many years. That means we bring the best of our products, services and relationships to our employees, clients and communities every day. Interconnectedness is the manifestation of the one U.S. Bank approach, and it is a focus Gunjan is bringing to the organization as we head into the future.

Our intent is to think as one team, and more importantly, to deliver for our clients based on their needs, leveraging our unique set of diverse businesses to help them achieve their financial objectives.

This focus will help us deepen relationships, and it will allow us to continue to offer a robust set of innovative solutions to customers. It will enable us to strengthen partnerships – both inside our physical branch footprint and beyond with digital offerings that are some of the best in financial services. We aim to always be nimble and relevant, so we can help clients of all types. That is true whether it is an individual or family applying for their first home mortgage or a multinational company seeking to make its next big move.

Interconnectedness feeds our universal strategy that is enabled by a unifying purpose and set of core values. It also extends to our community and corporate responsibility initiatives. You will be able to read more about this and all our community investment and efforts in our next corporate responsibility report, which will be released later this year.

These achievements are possible only through the incredible dedication and commitment of our employees. They believe in serving our customers better than anyone else could serve them. They do so the right way, and they treat each relationship like it is with a family member or friend. Taking care of our employees’ needs is equally important to me and our entire Managing Committee, and we have made significant investments in training and development, employee technology, and similar experiences to make it easier for them to do their jobs and feel enriched while doing so.

The combination of their talent and expertise, along with the investments we have made, the strategy we have laid out, and our outstanding leadership team gives me great confidence in our future. We are focused on capitalizing on our scale advantages and business optimization efforts to drive growth, efficiency and solid financial results and returns. We are committed to creating value for you.

The economic, regulatory and political environment around us will continue to evolve. The industry and market challenges affecting our operations will not abate – they may shift from headwinds to tailwinds and back again, but that just means it is imperative for us to be ready to perform in any environment. 

Our growth strategies and goals are clear and achievable. Our commitments to our employees, clients and communities are as strong as ever.

And we remain firmly dedicated to delivering strong financial performance for our shareholders.

Thank you for choosing to invest in U.S. Bancorp. On behalf of our team of more than 70,000 employees, we appreciate you and your trust. I am confident in the company’s future as I step aside, and I am eager to see the success the company will achieve with Gunjan as CEO.

With deep appreciation and gratitude,

Sincerely,

Andy Cecere
Chairman and Chief Executive Officer
U.S. Bancorp
February 2025