U.S. Bancorp reports second quarter 2019 results

July 17, 2019 | GET MORE : News Release

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2Q19 highlights
  • Net income of $1,821 million and diluted earnings per common share of $1.09 
  • Industry leading return on average assets of 1.55% and return on average common equity of 15.0% 
  • Return on tangible common equity of 19.2% 
  • Returned 79% of 2Q earnings to shareholders through dividends and share buybacks 
  • Net interest income grew 3.4% year-over-year (3.3% on a taxable-equivalent basis) 
  • Total net revenue grew 3.2% year-over-year with positive operating leverage of 1.0% on a year-over-year basis 
  • Average total loans grew 1.1% on a linked quarter basis and 3.8% (4.5% excluding the impact of loan sales) year-over-year
Full financial details

Full financial details are available here.

CEO commentary

U.S. Bancorp Chairman, President and CEO Andy Cecere said, “We delivered strong results this quarter and we feel good about underlying momentum heading into the second half of the year. In the second quarter, we delivered a return on tangible common equity of 19.2% and returned 79% of our earnings through dividends and share buybacks. Despite a more challenging interest rate environment, our loan and deposit trends were healthy and drove good growth in net interest income. Fee income growth was supported by solid results across our payments services, trust, wealth management, and commercial products businesses. Expense growth was well controlled even as we continued to invest in our digital initiatives, and credit quality was stable. We remain focused on creating value for our customers, communities and shareholders and appreciate the efforts of our employees who make it possible.”

In the spotlight

2019 Annual Stress Test and Capital Plan: Based on the 2019 stress test results, which reflect U.S. Bancorp’s strong financial profile and ability to withstand adverse economic conditions, the Company’s board of directors approved an increase in the Company’s quarterly dividend of 13.5% to $0.42 per common share beginning in the third quarter of 2019, as well as a new share repurchase program effective July 1, 2019.

U.S. Bank Begins Market Expansion in Charlotte, NC: Expanding our already strong presence in Charlotte, with nearly 800 employees and tens of thousands of customers, the Company began its “digital-first, branch-lite” customer strategy to deepen existing relationships and build a new generation of customers. This represents a part of our Physical Asset Optimization program which includes retail banking expansion in new markets, reinvestment in our existing core retail banking markets, as well as optimizing existing branches in connection with ongoing transformation to digital financial services. 

Recognized for Advancing Gender Parity: The Women’s Forum of New York recently announced that U.S. Bancorp will be recognized at its 2019 Breakfast of Corporate Champions for its 35% female board of directors representation, raising the bar and accelerating toward the goal of achieving 50/50 gender parity across all boardrooms by 2025.

U.S. Bank Leader Named Digital Banker of the Year: American Banker recently named Ankit Bhatt of U.S. Bank its Digital Banker of the Year for his leadership traits and ability to successfully lead teams which build products that put customers first, including the recent complete rebuild and overhaul of the U.S. Bank mobile app.

Contact

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

Rebekah Fawcett, U.S. Bank Public Affairs & Communications
612.303.9986; rebekah.fawcett@usbank.com