Wealth Management & Securities Services

Wealth Management & Securities ServicesWealth Management

& Securities Services

Diane ThormodsgardVice ChairmanWealth Management & Securities ServicesSeptember 5, 2007

U.S. Bancorp Investor ConferenceU.S. Bancorp Investor Conference

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Forward-looking StatementsThis presentation contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These statements often include the words “may,” “could,” “would,” “should,”“believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “potentially,”“probably,” “projects,” “outlook” or similar expressions. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of the Company. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including changes in general business and economic conditions, changes in interest rates, legal and regulatory developments, increased competition from both banks and non-banks, changes in customer behavior and preferences, effects of mergers and acquisitions and related integration, effects of critical accounting policies and judgments, and management’s ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk. For discussion of these and other risks that may cause actual results to differ from expectations, refer to our Annual Report on Form 10-K for the year ended December 31, 2006, on file with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Corporate Risk Profile.”Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.

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Wealth Management & Securities Services

Investing for Growth

DeepeningCustomer

Relationships

ProductInnovation

ExpandingProduct andDistribution

MaximizeShareholder Value

Strong Core Financial Institution

Core Products & Services Distinctive Capabilities

Profile

Capabilities


Long-term Growth Expectations

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Business Units

Wealth Management• Private Client Group

• Investments & Insurance

Securities Services• Asset Management (FAF Advisors)

• Corporate Trust

• Fund Services

• Institutional Trust & Custody (IT&C)

Contribution to U.S. Bancorp

Revenue Net Income

LoansDeposits

14% 4%

15% 14%

2Q07 YTD

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Business Line Scale

Top 2 municipal finance trustee

Top 3 ABS/MBS trustee

Top 5 bank-affiliated U.S. mutual fund family

Top 5 full-service, third-party provider of mutual fund services

$162 billion in assets under management

$4 trillion in assets under administration

Revenue Mix

2Q07 YTD

FAF Advisors9%

7%

CorporateTrust27%

InstitutionalTrust &Custody

FundServices

10%

Wealth Management47%

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322286

593484412

1,018

1,534 1,645

1,951

972

0

750

1,500

2,250

3,000

2004 2005 2006 YTD 2006 YTD 2007

Net Income Revenue


Financial Performance

$ in millions

Wealth Management & Securities Services YTDGrowth Rate 2005 2006 2007Revenue 7.2% 18.6% 4.7%

Pre-Provision Income 16.3% 22.1% 11.7%

Net Income 17.5% 22.5% 12.6%

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0

500

1,000

1,500

2,000

2004 2005 2006 2Q07YTD

Growth DriversCorporate Trust

FAF Advisors Wholesale Distribution

Fund Services Expertise

Wealth Management Initiative

Fee Income

3.5%

19.4%

8.1%

$ in millions, Y/Y growth

1Q 2Q 3Q 4Q

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DeepeningCustomer

Relationships

ProductInnovation





Profile

Capabilities



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Core Products and Services

Wealth Management

Corporate Trust

FAF Advisors

Fund Services

Institutional Trust & Custody

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ClientClient

Wealth Management

Private BankingPersonal TrustInvestment ManagementFinancial PlanningTrusted AdviceMutual FundsVariable/Fixed AnnuitiesStocks, Bonds, OptionsDiscount BrokerageLife / Long-term Care Insurance

Planning Services

Brokerage

Insurance

Business Banking Investment

Management

Mortgage

Personal Trust

Private Banking

Outside Advisors

Team Leader

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Wealth Management

Financial ConsultantFinancial SpecialistPrivate Client Relationship Manager

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Wealth Management

Capabilities:

Broad array of world class products and services

Local service delivery by trusted advisors

Robust credit process

Strong internal partnerships

Considerable untapped potential

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Corporate Trust

Trustee

Paying Agent

Escrow Agent

Document Custody

Revenue by Business Segment

Municipal,Corporate& Escrow

64%

Structured27%

Top 2 municipal finance trustee

Top 3 ABS/MBS trustee

DocumentCustodyServices

6%Default

3%

2006 Revenue

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Corporate TrustNational Business with Local Presence

46 Offices118,000 Customers786,000 Bondholders$2.9 Trillion AUA

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Corporate Trust

Capabilities:Size that provides sound performance and scale efficiencies Experienced trust professionals with long-term relationshipsSpecialization that affords focus and risk managementLarge internal referral networkCommitted industry leader (80+ years)

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FAF Advisors

AUM - $109 billion

Assets Under Management

Equity17%

Money Market57%

Fixed Income26%

Advisor to First American Funds

Customized Portfolio Management

Securities Lending

Top 5 bank-affiliated U.S. mutual fund family

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FAF AdvisorsCapabilities:

Award winning performance• 2006 & 2005 Lipper Awards• “Best Fund Managers” by BusinessWeek

Scalable infrastructure is in place• Realigned investment team & compensation• Enhanced compliance & legal teams• Developed an integrated product and marketing

team focused on salesInternal and third party distributionProven process-driven investment culture

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FundDistribution &

Marketing Support

Fund Services

Administration& Compliance

FundAccounting

ProspectServices

Custody, LendingServices

Fund CCOSupport

Transfer Agent & Shareholder

Services

Fund Sponsor

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Fund Services

Capabilities:Focus is on small to mid-sized fund groups that require:• Higher levels of service than larger competitors are

willing to provide• Commitments to technology that smaller competitors

are unable to provideTenured personnelAward winning services

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Corporations38%

9%

9%

9%4%

20%

11%

Securities transaction processingAccounting & reportingSecurities lendingInvestment managementRetirement plan trusteePerformance measurementBenefits payments

2006 Revenue by Customer Segment

Government

Insurance

Advisors/brokersOther Financial

Institutions

Foundations/Endowments

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Capabilities:

Middle market focus

Tenured staff delivering local services

Recent acquisition of Wachovia book of business expands geographical presence and increases sales

Quality core custodial processing capabilities

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Distinctive Capabilities

Core Products and Services

Excellent trust capabilities

Established footprint-wide broker/dealer

Broad private banking and advisory services

Proprietary investment manufacturing

Distinctive Capabilities

Corporate Trust scale

First American Funds performance

Fund Services expertise

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DeepeningCustomer

Relationships

ProductInnovation





Profile

Capabilities



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Corporate Trust

FAF Advisors

Fund Services


Building Deeper Relationships

Innovation


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Corporate Trust

Recent DealsLaSalle Corporate Trust (12/06)SunTrust Corporate Trust (9/06)Wachovia Corporate Trust (12/05)National City Corp Trust (6/04)State Street Corp Trust (12/02)

9 Deals prior to 2002

Growth Through Acquisition

Market Share %Municipal Structured

2000 12.1 7.32001 14.2 8.02002 18.7 6.82003 17.3 11.32004 19.9 10.42005 26.7 22.42006 26.8 21.2

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Corporate Trust

Strategic benefits of recent acquisitions:• Complement U.S. Bank’s existing business• Significant cost savings opportunities• Expand and/or strengthen geographic presence• Acquire deposits and mutual fund balances for First

American Funds• Enhance referral opportunities• Solidify U.S. Bank as top tier corporate trust provider

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61%

44%

37%40%

20%

30%

40%

50%

60%

70%

Corporate Trust

Power of a Scale Business

2002 2006Pre-acquisition Year FollowingAcquisition

U.S. BankCorporate Trust

TypicalAcquisition

Operating Efficiency Ratio

Acquisition efficiency ratio for illustrative purposes, excludes intangible amortizationCorporate Trust efficiency ratio based on internal managerial reporting

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Corporate Trust

Growth Drivers:

Acquisitions

Increased market share of key products

Diversify product offerings

Leverage internal referral network

Increase deal flow from influencers

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FAF Advisors

Successfully CommencedThird-Party Execution

Key Stages of Development

2002 2003 2004 2005 2006

Performance

Infrastructure

Distribution

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FAF AdvisorsBuilding a Quality National Team

National DistributionComprehensive Coverage1st Quarter 2005

National DistributionComprehensive Coverage1st Quarter 2007

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FAF Advisors

2001

10% Third-Party 42%

90% Proprietary 58%

2007 YTD

Source: FAF Advisors, Inc.2001 Estimated

Revenue Source

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Fund ServicesGrowth in Services for

Mutual Fund Clients

2.0

2.63.1

3.6

4.2

0.0

1.5

3.0

4.5

6.0

2003 2004 2005 2006 2Q07

Number of Shareholder Accounts(millions)

Growth Opportunities:

Industry consolidation

Regulatory changes

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Fund ServicesGrowth in Services for

Alternative Product Clients

4

9

16

25

37

0

10

20

30

40

2003 2004 2005 2006 2Q07

Assets ($ in Billions)

Growth Opportunities:

Fund Services reputation

Product demand

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Objective:Transform the Wealth Management group into a more integrated and coordinated group to fully capture the significant opportunity created by the impending retirement of the baby boomers

Dimensions:686 FINRA / Insurance Licensed Representatives730 Insurance Licensed Representatives1,543 Personal Trust / Banking Representatives

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Objectives:

Collaborate seamlessly around the client

Motivate our vast referral network

Attract younger and more affluent clients by ensuring that product, branding, and talent are aligned

Invest thoughtfully in the business, while optimizing existing resources

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Building Deeper Relationships

Deepen consumer wealth management penetration with existing high potential retail customers

Review Corporate Trust clients for Wholesale Banking and Fund Services opportunities

Increase frequency of referrals from Wholesale Banking to Wealth Management

Leverage additional opportunities with new clients from recent acquisitions

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Innovation

Retirement Planning Center – Edina, MN Branch

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Profile

Capabilities




DeepeningCustomer

Relationships

ProductInnovation





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12.8%

7.7%

19.1%

Revenue Expense Pre-ProvisionIncome


9.0%

5.0%

12.0%

Revenue Expense Pre-ProvisionIncome

Long-term GrowthExpectations

2004 – 2006 CAGR

Wealth Management & Securities ServicesWealth Management

& Securities Services

Diane ThormodsgardVice ChairmanWealth Management & Securities ServicesSeptember 5, 2007

U.S. Bancorp Investor ConferenceU.S. Bancorp Investor Conference

Appendix

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2004 YTD 2006$ $ %B/(W) $ %B/(W) $ $ %B/(W)

Net Interest Income 365 435 19.2% 506 16.3% 253 241 (4.7%)Noninterest Income 1,169 1,210 3.5% 1,445 19.4% 719 777 8.1% Total Revenue 1,534 1,645 7.2% 1,951 18.6% 972 1,018 4.7%

Expense 876 880 (0.5%) 1,017 (15.6%) 519 512 1.3%

Pre-ProvisionContribution 658 765 16.3% 934 22.1% 453 506 11.7%

Net Charge-offs 10 4 60.0% 3 25.0% 2 0 NA

Pre-TaxContribution 648 761 17.4% 931 22.3% 451 506 12.2%

Net Income 412 484 17.5% 593 22.5% 286 322 12.6%

Efficiency Ratio 57.1% 53.5% 3.6% 52.1% 1.4% 53.4% 50.3% 3.1%Average Loans 4,818 4,980 3.4% 5,360 7.6% 5,086 5,454 7.2%Average Deposits 12,006 13,098 9.1% 14,908 13.8% 14,047 16,324 16.2%

2005 2006 YTD 2007


Financial Performance

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Designations, assignments and allocations change from time to time as management systems are enhanced, methods evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2007, certain organization and methodology changes were made and, accordingly, historical results were restated and presented on a comparable basis.

$ in millions

Wealth Management & Securities Services

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