U.S. Bancorp reports third quarter 2024 results

Highlights:

• Net income of $1,714 million and diluted earnings per common share of $1.03. Results included an $89 million after-tax net securities loss largely offset by lower income tax expense
• Net interest income on a taxable-equivalent basis increased 2.8% on a linked quarter basis
• Net revenue of $6,864 million, including $4,166 million of net interest income on a taxable-equivalent basis
• Noninterest income of $2,817 million, which excludes net securities losses, driven by year-over-year increases in:
  •   Commercial products revenue of 12.1%
  •   Trust and investment management fees of 6.4%
  •   Payment services revenue of 3.1%
  •   Mortgage banking revenue of 7.6%
• Noninterest expense decreased 1.0% year-over-year and increased 0.4% on a linked quarter basis, as adjusted for notable items in the prior quarters
• ·Return on tangible common equity of 17.9%, return on average assets of 1.03%, and efficiency ratio of 60.2%
• ·CET1 capital ratio of 10.5% at September 30, 2024, compared with 10.3% at June 30, 2024

Full financial details available here. 

CEO commentary

U.S. Bancorp Chairman and CEO Andy Cecere said, “In the third quarter, we reported diluted earnings per share of $1.03 and a return on tangible common equity of 17.9%. Our expense levels decreased year-over-year which supported modest positive operating leverage, excluding net securities losses and prior year notable items.

We expect positive operating leverage to expand in the fourth quarter and into 2025. Net interest income and margin increased on a linked quarter basis benefiting from loan mix, continued repricing of fixed rate earning assets and disciplined liability management. Primary fees categories including commercial products, trust and investment management, payment services and mortgage banking all increased year-over-year as we continue to focus on our diverse and unique business mix. Credit quality results were in line with expectations, and we continue to increase our capital position, ending the quarter with a CET1 capital ratio of 10.5%. We are committed to balancing capital growth through earnings accretion with capital distributions and expect to resume share buybacks in the near term.

Finally, I would like to thank our dedicated employees for all they do to support our clients, communities, and shareholders.”

Business and other highlights

U.S. Bank announced Edward Jones partnership: U.S. Bank entered a strategic partnership to serve Edward Jones' clients' banking needs with leading U.S. Bank deposit and credit card solutions. Through the alliance, Edward Jones financial advisors will have the opportunity and tools to introduce co-branded U.S. Bank deposit and credit card products to the firm's U.S. clients beginning in late 2025.

U.S. Bank unveiled industry-leading card, savings combination: U.S. Bank launched two new U.S. Bank Smartly® products designed to maximize credit card rewards while also helping clients earn more on their savings balances. When paired with a Bank Smartly Savings account and average daily combined balances in U.S. Bank deposit, trust or investment accounts, clients can increase their earning opportunities up to as much as 4% cash back on all purchases.

U.S. Bank acquired healthcare payments platform: U.S. Bank acquired Salucro Healthcare Solutions LLC, which provides healthcare financial technology, focused on patient payments and billing. Salucro is a market leader in online billing and payments offerings for healthcare providers across the United States. Salucro had previously been a partner of Elavon, the merchant acquiring unit within U.S. Bank. Salucro's platform will be sold through Elavon as MedEpay.

U.S. Bank leaders named "Most Powerful Women in Banking:” American Banker recognized two U.S. Bank leaders for its 2024 Most Powerful Women in Banking awards, naming President Gunjan Kedia and Vice Chair and Chief Risk Officer Jodi Richard among individual honorees. Kedia, who was named president in May 2024, leads all of the revenue business lines. Richard oversees the Company's Risk Management and Compliance organization.

Contact

George Andersen, U.S. Bancorp Investor Relations
george.andersen@usbank.com

Jeff Shelman, U.S. Bank Public Affairs and Communications
jeffrey.shelman@usbank.com