U.S. Bancorp reports third quarter 2018 results

October 17, 2018 | GET MORE : General Information

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3Q18 highlights
  • Net income of $1,815 million and diluted earnings per common share of $1.06
  • Industry leading return on average assets of 1.58% and return on average common equity of 15.5%
  • Return on tangible common equity of 19.9%
  • Returned 78% of 3Q earnings to shareholders through dividends and share buybacks
  • Year-over-year positive operating leverage with net revenue increase of 2.4% and noninterest expense increase of 1.5%
  • Net interest income grew 2.4% year-over-year (1.7% on a taxable-equivalent basis) and 1.7% linked quarter on both a reported and tax-equivalent basis
  • Total noninterest income grew 3.3% year-over year
  • Nonperforming assets decreased 19.7% on a year-over-year basis and 8.0% on a linked quarter basis
Full financial details

Full financial details are available here.

CEO commentary

Chairman, President and CEO Andy Cecere said, “Strong underlying momentum in each of our business lines drove record revenue, net income and EPS this quarter. We remain vigilant in our expense discipline while continuing to prudently invest in our core businesses as well as in our digital and payments capabilities. In the third quarter, we expanded our commercial banking presence, launched a new digital platform to serve our small business customers and acquired new capabilities in our payments business. At the same time, our focus on optimization allowed us to deliver positive operating leverage and a best-in-class efficiency ratio, while growing our industry leading return on tangible common equity ratio to 19.9%. I am thankful for our U.S. Bank team members who work every day to put the customer in the center with the goal of delivering outstanding results for each of our stakeholders.”

In the spotlight

Most Powerful Women in Banking and Finance: Three Vice Chairmen, Leslie Godridge, Corporate & Commercial Banking, Gunjan Kedia, Wealth Management and Investment Services and Kate Quinn, chief administrative officer at U.S. Bank, were honored by American Banker magazine among the "Most Powerful Women in Banking and Finance" for 2018.

Launch of digital small business lending: U.S. Bank has created a new, fully digital option for small businesses to apply for and receive a loan or line of credit. The entire process, from application to funding, can be completed same day, often within an hour or less, dramatically improving the experience for busy entrepreneurs.

Expansion of Commercial Banking team: U.S. Bank has built a strong presence in the greater New York metropolitan area over the past 10 years, and has recently announced the expansion of its Commercial Banking team into this market, focusing on serving middle market clients in New York, New Jersey and Connecticut.

Meeting customers’ short-term cash needs: U.S. Bank recently launched a new small-dollar loan product called Simple Loan, designed to help customers deal with unexpected or short-term cash needs with a transparent, easy-to-understand installment loan. U.S. Bank worked closely with its regulators when developing this product and is the first national bank to offer this type of short-term loan solution.


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

Stacey Wempen, U.S. Bank Public Affairs & Communications
612.303.7620; stacey.wempen@usbank.com