News

U.S. Bancorp reports third quarter 2021 results

October 14, 2021

Highlights

  • Net income of $2,028 million and diluted earnings per common share of $1.30
  • Return on average assets of 1.45% and return on average common equity of 15.9%
  • Net revenue of $5,890 million, including $3,197 million of net interest income and $2,693 million of noninterest income
  • Positive operating leverage on a linked quarter basis driven by 2.8% linked quarter noninterest income growth
    o    Payments revenue increased 3.6%
    o    Trust and investment management fees increased 2.9%
  • Average total earning assets growth of 3.5% year-over-year
  • Average total deposits growth of 6.4% year-over-year
  • Allowance for credit losses declined $310 million during the quarter given improving economic outlook and credit trends
  • CET1 capital ratio increased to 10.2% at September 30, 2021, compared with 9.4% at September 30, 2020

Full financial details

Full financial details are available here.

CEO commentary

U.S. Bancorp Chairman, President and CEO Andy Cecere said, “In the third quarter we generated net revenue of $5.9 billion, net income of $2.0 billion, and a return on tangible common equity of over 20%. Our results were supported by continued momentum across our fee businesses, a pick-up in loan growth, and improvement in our efficiency ratio. Credit quality was once again better than expected and for the third straight quarter our net charge-off ratio hit a record low level. We continue to supplement our organic growth by utilizing excess capital for strategically sound, financially attractive acquisitions. During the quarter we acquired Bento Technologies, which expands the capabilities of our payments ecosystem, and entered into a definitive agreement to acquire MUFG Union Bank’s core regional banking franchise. These acquisitions provide strategic and secular growth opportunities that will allow U.S. Bank to continue to deliver industry leading results for years to come. I want to thank all our employees for their continued hard work and dedication to serving all of our stakeholders.”

In the spotlight

U.S. Bancorp to acquire MUFG Union Bank: U.S. Bancorp has entered into a definitive agreement to acquire MUFG Union Bank’s core regional banking franchise for approximately $8 billion, including $5.5 billion in cash and approximately 44 million shares of U.S. Bancorp common stock. The acquisition would add more than 1 million consumer customers and about 190,000 small business customers on the West Coast in addition to approximately $58 billion in loans and $90 billion in deposits. The acquisition will provide benefits for both customers and the communities served by the combined organization through improved technology, expanded products and customer choice. The transaction is expected to close in the first half of 2022. 

Award-winning Mobile App: The U.S. Bank Mobile App was ranked first among banking apps by industry benchmarking firm Keynova in its 3Q 2021 scorecard. The firm evaluates the top 17 banks on more than 200 criteria across four main categories: functionality, ease of use, privacy and security, and quality and availability.

U.S. Bank to launch fleet industry Voyager Mastercard: U.S. Bank and Mastercard have partnered on a new card for fleet-related expenses. The new U.S. Bank Voyager Mastercard will build on U.S. Bank’s existing Voyager card, which allows customers to pay for fuel, fleet maintenance and other expenses at more than 320,000 merchant locations. Now customers can use a single card to pay for fleet-related expenses at any merchant that accepts Mastercard, providing unprecedented flexibility to support fleet operations and productivity on two major networks.

U.S. Bank Acquires Small Business Payments Software Company: In September, U.S. Bank acquired Bento Technologies, known as Bento for Business, a fintech company based in Chicago and San Francisco that provides payment and expense management services to small and mid-size businesses. The acquisition is part of U.S. Bank’s vision to bring payments and banking services together to simplify cash flow and money management for small businesses.

Contact

Jennifer Thompson, U.S. Bank Investor Relations
612.303.0778; jen.thompson@usbank.com

Jeff Shelman, U.S. Bank Public Affairs and Communications
612.303.9933; jeffrey.shelman@usbank.com

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