US BANCORP -Managing Director Andy Cecere to retire, Gunjan Kedia appointed successor

Update: This story contains comments from Kedia and Cecere, reaction from analysts that cover the company and additional information about Kedia’s background.

US BANCORP has elected Gunjan Kedia to be his next CEO, who succeeded Andy Cecere, who retires as CEO in April, announced the Minneapolis-based company on Tuesday.

Kedia that has been Cecere’s heir since May when she was promoted to presidenttaking over as CEO after the company’s annual shareholder meeting on April 15, US BANCORP said in a press release. Cecere, who has also served as chairman of the board, will then switch to the role of executive chairman of a non -public period, the bank said.

Kedia, 54, will be the first woman to run the seventh largest US bank by asset size and one of only two female CEOs leading the country’s 50 largest banks. Jane Fraser has been CEO of Citigroup since 2021.

Kedia was Ranked No. 4 On American Bankers 2024 most powerful women on bank lists.

She wants to keep the president’s title, a company spokesman said in an E email.

In a joint interview Tuesday with Cecere, Kedia posted his biggest priorities as CEO-director-promoting the growth of the company $ 678 billion, transforming its payments business and increasing productivity. Much of the focus will be on elaborating client relationships, Kedia said.

“I have very strong confidence in our ability to perform these priorities,” Kedia told the American banker. “My role here will be to take advantage of this with a sense of urgent character.”

CEO transition plan caught some industry observers off-guard and seemed to influence US BANCORP’S Share price that fell by almost 3% in afternoon trade. It closed the day with approx. 2%.

Gerard Cassidy from RBC Capital Markets wrote in a research note that news about Cecere’s pension plan “comes as a surprise”, as in his opinion “was no apparent sign of (cecare) who wants September.

Others were more critical of US BANCORPThe parent company of the US Bank. Mike Mayo, an analyst at Wells Fargo Securities, wrote in his own research note that the company’s CEO’s transitional plan seems “rushed.” He said he is “disappointed with the timing,” and noted that Kedia has been president for less than a year.

Mayo previously suggested that Kedia has not yet gained sufficient experience to be CEO. After the company’s investor day, Mayo wrote that while he “got away with a favorable impression of (kedias) grabbed the numbers and key priorities … considering a challenge.”

The company refused to respond to Mayo’s comments. During the interview with the US banker, Cecere said the transition is the result of “a very thought -provoking order” that has been underway for years, culminating on Tuesday with the board’s decision to put kedia in the top seat.

“We’ve seen Gunjan grow in influence and experience with the company … and we are extremely confident in her ability to guide the business,” Cecere. “She understands the business and she is driven to help the organization perform best.”

Cecare, 64, have been working on US BANCORP For almost four decades. In addition to serving as chairman and CEO, he has previously had the titles of president, CEO and CFO.

During Cecer’s eight years as CEO, US BANCORP has grown using acquisitions – most recently It purchased MUFG Union Bank in California in 2022 – as well as organic. On last year’s investor day Cecere and other leaders said the company has reached a bending pointWhere its recent investments begin to pay off in the form of rising profits and recurring expenses.

On Investor Day, the company set new profitability goals. Over the next two to three years, US BANCORP Plans to achieve a return on assets of 1.15% to 1.35% and a return on tangible common equity in high teens. It set an efficiency relationship for the mid -50s.

The company has some room for improvement. For the entire year 2024, it reported a return on assets of 0.95% and a return on concrete joint equity of 17.2%. Its year -round efficiency conditions came at 62.3%.

Kedia, an engineer of education has been one of the highest ranked leaders at US BANCORP Since she joined the Super Regional Bank in 2016. Originally, she served as Vice President of Wealth Management and Investment Services. By 2023, her role was expanded to include management of the bank’s business and commercial banking department – Part of a number of management changes At that time.

As President, Kedia has monitored all three of the company’s core companies – Consumer and Business Bank; Payment Services; and wealth, business, commercial and institutional banking. Combined, companies employ 38,000 people in the US, Canada and Europe.

In everything, US BANCORP Has about 70,000 employees and operates a retail branch footprint that covers large parts of the midwest through the west coast. Several of its companies are national in scope, including wealth, commercial properties and capital markets, and its trade payment services and investment services are international.

Kedia grew up in India and earned an electrotechnical degree from Delhi College of Engineering. She later earned a master’s degree in business administration from Carnegie Mellon University in Pittsburgh. She had a job at PricewaterhouseCoopers, the consulting firm McKinsey and Bank of New York Mellon before coming to State Street, where she worked for almost eight years before joining US BANCORP.

Kedia is one of 16 people – and one of three women – onUS BANCORP’S Managing Committee. In connection with her promotion to CEO, she will also join the company’s board of directors.

“We are inspired by Gunjan’s vision for the company and we are sure of her ability to guide US BANCORP In a living and engaging future that honors the past while gaining new opportunities, “said Roland Hernandez, the board’s leading independent director, in the release.