US Bank 2014 Annual Report Download - page 6

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4
The intersection
of strength and
potential
FELLOW SHAREHOLDERS
I am very proud of the exceptional
financial performance that
U.S.Bancorp delivered for its
shareholders in 2014 — one of the
strongest in the financial services
category. I also am proud to
announce that U.S.Bancorp has
been honored as a 2015 World’s
Most Ethical Company® by the
Ethisphere Institute, an independent
center of research promoting best
practices in corporate ethics and
governance — a distinct recognition
for a large U.S.banking company.
A strong financial performance
and a strong commitment to ethical
leadership and corporate behavior
are the cornerstone of the
U.S.Bancorp culture and purpose.
Our financial performance and
commitment to integrity are rooted
deeply in our core values:
– We do the right thing
– We power potential
– We stay a step ahead
– We draw strength from diversity
– We put people first
We are proud to be bankers and
to have the privilege to be trusted
partners for our customers and
communities.
Power of Potential: The Intersection
of People and Potential
At U.S.Bancorp, we stand at the
intersection of people and potential
every day. Potential for greatness
exists everywhere, in every business,
and in every person. As our
customers begin to look toward
the future with a more optimistic
lens, they expect their U.S.Bancorp
partners to provide trusted guidance
for their emerging opportunities.
U.S.Bancorp employees serve as
catalysts for our customers to reach
their full potential. In 2014, thanks to
the hard work and dedication of our
engaged 67,000 global employees,
U.S.Bancorp delivered record net
income, maintained a firm grip on
our industry-leading performance
measures, returned 72percent of
our earnings to shareholders and
preserved the best debt ratings in
the banking industry.
Throughout the year, U.S.Bancorp
stood at the intersection of people
and potential by helping individuals
build financially secure futures;
small business owners turn dreams
into neon OPEN signs; commercial
enterprises convert visions into
progress; merchants engage
in safe and secure commerce;
pre- and post-retirees achieve their
retirement goals and objectives;
and communities turn possibilities
into promises.
Power of Potential: Value Creation
Value creation for our customers
and shareholders is our highest
priority. U.S.Bancorp’s 2014 financial
highlights include record net income
of $5.9billion or $3.08 per diluted
common share. Our Return on
Average Assets (ROA) of 1.54percent,
our Return on Average Common
Equity (ROE) of 14.7percent and
our Efficiency Ratio of 53.2percent
were once again among the best in
the banking industry. In addition, we
returned a significantpercentage of
our earnings to our shareholders
through dividends and buybacks.
Our consistently solid financial
performance is the result of
adhering closely to our business
fundamentals: managing our
capital prudently — we increased our
dividend by 6.5percent; encouraging
innovation — we invested millions in
new secure payment technologies;
engaging employees — top quarter
engagement scores; investing in
initiatives that generate steady,
long-term growth — reinvested
28percent of earnings in growth