U.S. Bancorp reports first quarter 2020 results

April 15, 2020 | GET MORE : General Information

Share Article:

Share on Facebook Share on Twitter Share on LinkedIn
Highlights
  • Net income of $1,171 million and diluted earnings per common share of $0.72
  • Return on average assets of 0.95% and return on average common equity of 9.7%
  • Net revenue of $5,772 million, including $3,247 million of net interest income and $2,525 million of noninterest income
  • Noninterest income growth of 10.2% year-over-year
  • Average total loans grew 0.9% on a linked quarter basis and 4.0% year-over-year
  • Average total deposits grew 1.8% on a linked quarter basis and 8.2% year-over-year
  • Nonperforming assets decreased 5.9% year-over-year; but, increased 14.1% since December 31, 2019
  • Provision for credit losses of $993 million increasing allowance for credit losses by $600 million reflecting the current economic environment
Full financial details

Full financial details are available here.

CEO commentary

U.S. Bancorp Chairman, President and CEO Andy Cecere said, “I’d like to start off by thanking our employees across this company for their hard work and dedication during this difficult time. The economic fallout from the COVID-19 pandemic is causing financial hardship to many in this country. We are intently focused on doing what we can for our customers, communities and employees as they grapple with their unique situations. Our capital and liquidity positions are strong, and we stand ready to help businesses access programs like the Paycheck Protection Program and Main Street Lending Program. We’ve introduced several changes to allow impacted customers forbearance or other payment relief and pricing flexibility on our products and services to make them more affordable and accessible to customers who may be experiencing financial stress. We’ve announced a number of initiatives, including new investments, to help our communities to continue supporting individuals and families. We manage this company for the long term and our strong balance sheet, our diverse businesses and our culture will help us manage through this challenging time and I have no doubt we will emerge stronger on the other side of the pandemic, proving to be a reliable partner to customers in helping them achieve their financial goals.”

In the spotlight

Supporting employees: U.S. Bank announced a premium pay program providing a temporary 20% wage increase to more than 30,000 critical employees at branches, operations centers, and critical service locations. In addition, U.S. Bank is providing additional time off for employees affected by COVID-19. U.S. Bank is continuing to take steps to further protect the safety of employees and customers, such as temporarily adjusting branch operations, decreasing lobby usage, encouraging drive through use, and consolidating operations.

Supporting customers: U.S. Bank has been engaging with customers across all lines of business as the world continues to battle COVID-19. To date, nearly 102 thousand accounts and over $5.7 billion in loans have been modified in addition to draw downs of approximately $22 billion in support of our customers in these extreme economic times. U.S. Bank is also participating in programs such as the Paycheck Protection Program stemming from the CARES Act passed by Congress as a stimulus response to the potential economic impacts of COVID-19.

Investing in community recovery: U.S. Bank recently announced a $30 million commitment to support COVID-19 relief efforts in communities around the country, offering immediate relief to national organizations focused on small business recovery and long-term recovery efforts to local nonprofits that support individuals and families with financial education, affordable housing, and work assistance.

Strategic alliance with State Farm: U.S. Bank recently announced a strategic alliance with State Farm, America’s largest property and casualty insurance provider, whereby U.S. Bank will assume State Farm Bank’s existing deposit and credit card accounts and State Farm agents will have the unique opportunity and tools to introduce U.S. Bank deposit products and co-branded credit cards to State Farm customers, offering them new, easy ways to manage their banking needs.

Contact

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

David Palombi, U.S. Bank Public Affairs & Communications
612.303.3167; david.palombi@usbank.com