News

Results include net income of $1,736 million and diluted earnings per common share of $1.05 as adjusted for merger and integration-related charges associated with the acquisition of MUFG Union Bank

Highlights

• CET1 capital ratio of 9.7% at September 30, 2023, compared with 9.1% at June 30, 2023
• Net income of $1,736 million and diluted earnings per common share of $1.05 as adjusted for merger and integration-related charges associated with the acquisition of MUFG Union Bank (“MUB”)
• Net revenue of $7,032 million including $4,268 million of net interest income on a taxable-equivalent basis and $2,764 million of noninterest income
• Reported results include merger and integration-related charges of $213 million net-of-tax, or $(0.14) per diluted common share
• Return on average assets of 1.04%, return on average common equity of 13.7%, and efficiency ratio of 60.4% as adjusted for merger and integration-related charges
• Net interest income on a taxable-equivalent basis increased 10.7% year-over-year due to the impact of the acquisition of MUB and rising interest rates on earning assets and decreased 4.1% linked quarter due to deposit mix and pricing
• Noninterest income increased 11.9% year-over-year and 0.6% on a linked quarter basis, as adjusted for notable items
• Average total loan growth of 11.9% year-over-year and a decrease of 3.1% on a linked quarter basis (a decrease of 0.9% adjusted for balance sheet repositioning and capital management actions)
• Average total deposit growth of 12.2% year-over-year and 3.0% on a linked quarter basis

Full financial details

Full financial details available here.

CEO commentary

U.S. Bancorp Chairman, President and CEO Andy Cecere said,  “In the third quarter we delivered earnings per diluted share of $1.05 and a return on tangible common equity of 21%, both as adjusted for merger and integration-related charges. This quarter our common equity tier 1 ratio increased 60 basis points to 9.7%, as we continued to build capital through enhanced earnings generation and capital accretive initiatives. Notably, on October 16th, the Federal Reserve granted us full relief from certain Category II commitments made in connection with the Union Bank acquisition and we are now subject to the same capital rules as all other Category III banks. While the challenging interest rate environment continues to impact net interest income growth for us and the industry, average total deposits increased 3%, to $512 billion, and third quarter profitability benefited from strength across our diversified fee businesses and disciplined expense management. Third quarter credit quality trends were in line with expectations, and we continued to add to our reserve level reflecting prudent assessment of the evolving credit environment. I want to thank all of our employees for their dedication to helping our clients, communities and shareholders.”

Contact

George Andersen, U.S. Bancorp Investor Relations
george.andersen@usbank.com, 612.303.3620

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