Performance

Review our financial highlights and financial summary below

Financial highlights

Diluted Earnings per Common Share

Dividends Declared per Common Share

Return on Average Assets

Return on Average Common Equity

Dividend Payout Ratio

Net Interest Margin (a)

Efficiency Ratio (b)

Common Equity Tier 1 Capital (c)

Average Assets (in millions)

Shareholders’ Equity (in millions)

Total Risk-Based Capital (c)

Year Ended December 31 (Dollars and Shares in Millions, Except Per Share Data)
	2018	2017	2018 v 2017
Net interest income	$12,919	$12,380	4.4%
Taxable-equivalent adjustment ^(a)	116	205	(43.4)
Net interest income (taxable-equivalent basis) ^(b)	13,035	12,585	3.6
Noninterest income	9,602	9,317	3.1
Total net revenue	22,637	21,902	3.4
Noninterest expense	12,464	12,790	(2.5)
Provision for credit losses	1,379	1,390	(.8)
Income taxes and taxable-equivalent adjustment	1,670	1,469	13.7
Net income	7,124	6,253	13.9
Net (income) loss attributable to noncontrolling interests	(28)	(35)	20.0
Net income attributable to U.S. Bancorp	$7,096	$6,218	14.1
Net income applicable to U.S. Bancorp common shareholders	$6,784	$5,913	14.7

Per common share
	2018	2017	2018 v 2017
Earnings per share	$4.15	$3.53	17.6%
Diluted earnings per share	4.14	3.51	17.9
Dividends declared per share	1.34	1.16	15.5
Book value per share ^(c)	28.01	26.34	6.3
Market value per share	45.70	53.58	(14.7)
Average common shares outstanding	1,634	1,677	(2.6)
Average diluted common shares outstanding	1,638	1,683	(2.7)

Financial ratios
	2018	2017
Return on average assets	1.55%	1.39%
Return on average common equity	15.4	13.8
Net interest margin (taxable-equivalent basis) ^(a)	3.14	3.10
Efficiency ratio ^(b)	55.1	58.5

Average balances
	2018	2017	2018 v 2017
Loans	$280,701	$276,537	1.5%
Investment securities ^(d)	113,940	111,820	1.9
Earning assets	415,067	406,421	2.1
Assets	457,014	448,582	1.9
Deposits	333,462	333,514	—
Total U.S. Bancorp shareholders’ equity	49,763	48,466	2.7

Period end balances
	2018	2017	2018 v 2017
Loans	$286,810	$280,432	2.3%
Allowance for credit losses	4,441	4,417	.5
Investment securities	112,165	112,499	(.3)
Assets	467,374	462,040	1.2
Deposits	345,475	347,215	(.5)
Total U.S. Bancorp shareholders’ equity	51,029	49,040	4.1

Capital ratios
Basel III standardized approach:
	2018	2017
Common equity tier 1 capital	9.1%	9.3%
Tier 1 capital	10.7	10.8
Total risk-based capital	12.6	12.9
Leverage	9.0	8.9
Common equity tier 1 capital to risk-weighted assets for the Basel III advanced approaches	11.8	12.0
Tangible common equity to tangible assets ^(b)	7.8	7.6
Tangible common equity to risk-weighted assets ^(b)	9.4	9.4
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach ^(b)		9.1
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches ^(b)		11.6

(a) Based on federal income tax rates of 21 percent for 2018 and 35 percent for 2017 and 2016, for those assets and liabilities whose income or expense is not included for federal income tax purposes.
(b) See Non-GAAP Financial Measures beginning on page 66.
(c) Calculated as U.S. Bancorp common shareholders’ equity divided by common shares outstanding at end of the period.
(d) Excludes unrealized gains and losses on available-for-sale investment securities and any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.