U.S. Bancorp reports second quarter 2018 results

July 18, 2018 | GET MORE : News Release

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2Q18 Highlights
  • Net income of $1,750 million and diluted earnings per common share of $1.02 in the second quarter of 2018
  • Industry leading return on average assets of 1.54% and return on average common equity of 15.3%
  • Return on tangible common equity of 19.8%
  • Returned 69% of 2Q earnings to shareholders through dividends and share buybacks
  • Year-over-year positive operating leverage
  • Net interest income grew 4.9% year-over-year (4.1% on a taxable-equivalent basis)
  • Total noninterest income grew 2.8% year-over year
  • Nonperforming assets decreased 19.1% on a year-over-year basis and 9.4% on a linked quarter basis
Full financial details

Full financial details are available here.

CEO Commentary

Chairman, President and CEO Andy Cecere said, “Our second quarter results were highlighted by record revenue, net income and diluted earnings per common share. We continue to deliver industry-leading profitability metrics, including a return on tangible common equity of 19.8%. This quarter, the Federal Reserve conducted its annual stress test and, as in prior years, the results confirmed our ability to withstand severely adverse economic conditions. Following this exercise, we announced a 23% increase in our quarterly dividend, as well as a 15% increase in our stock repurchase authorization, supporting our commitment to maximize shareholder value. In addition to these solid results, we are investing in our future by expanding our digital offerings, which will allow our customers to access us how, when and where they want and enhance their customer experiences. Each and every day our employees exemplify what being the most trusted choice in banking is all about and I want to thank our entire U.S. Bank team, whose commitment to serving all our customers is what ultimately drives our financial success.”

In the Spotlight

2018 Annual Stress Test: The results of the Federal Reserve Board's most recent annual stress test continued to demonstrate U.S. Bancorp's ability to withstand periods of economic stress while remaining profitable.

Automated Investor offering: Responding to customers’ desire for smart, easy-to-use and safe digital investment tools and strategies, the Company recently launched its new Automated Investor offering. Automated Investor provides an easy-to-use digital advice platform with the power of the Company's investment expertise through U.S. Bancorp Investments.

2018 Capital Plan: Based on the 2018 stress test results, the Company's board of directors approved an increase of the Company's quarterly dividend of 23% to $0.37 per common share beginning in the third quarter of 2018, as well as a new share repurchase program for the year.

New U.S. Bancorp directors: U.S. Bancorp's Board of Directors recently elected Elizabeth L. Buse, Yusuf I. Mehdi, and Dorothy J. Bridges as directors of the Company. Each new director brings unique insight that is extremely useful to the board and will help further guide the Company's future success.

Contact

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

Dana Ripley, U.S. Bank Corporate Communications
612.303.3167; dana.ripley@usbank.com