U.S. Bancorp reports third quarter 2020 results

October 14, 2020 | GET MORE : General Information

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Highlights
  • Net income of $1,580 million and diluted earnings per common share of $0.99
  • Return on average assets of 1.17% and return on average common equity of 12.8%
  • Net revenue of $5,964 million, including $3,252 million of net interest income and $2,712 million of noninterest income
  • Noninterest income growth of 3.7% year-over-year
  • Average total loans grew 6.4% year-over-year
  • Average total deposits grew 15.9% year-over-year
  • Provision for credit losses of $635 million including a provision of $120 million related to an acquired loan portfolio
  • CET1 capital ratio increased to 9.4% at September 30, 2020 compared with 9.1% at December 31, 2019
Full financial details

Full financial details are available here.

CEO commentary

U.S. Bancorp Chairman, President and CEO Andy Cecere said, “In the third quarter, we reported earnings per share of $0.99 and delivered a return on average common equity of 12.8 percent. Our results, during this challenging economic environment, are a testament to our diverse business mix and consistent approach to credit risk management. Consumer loan growth was robust, and our fee-based businesses performed well. Our mortgage banking business was particularly strong in the third quarter as we continued to support customers’ home financing and re-financing needs, and our payments businesses benefited from improving consumer spending activity as state and local economies continued to open. Our capital and liquidity positions remain strong and although credit losses are increasing for the entire industry we are well positioned to navigate a more challenging credit environment. I want to thank our employees for all their hard work and dedication in serving our customers and communities as they deal with their individual challenges created by the COVID-19 environment.”

In the spotlight

Commitment to diversity and inclusion: U.S. Bank was recently named a top 10 percent performer on the 2020 Diversity Best Practices Inclusion Index for the third consecutive year. Diversity Best Practices compiles the ranking based on a variety of factors and the top 10 percent score reflects U.S. Bank’s efforts in three focus areas: recruitment, advancement and retention of people from underrepresented groups; creating an inclusive company culture through leadership, accountability, communications and employee engagement; and demographics/transparency.

Banking made easy: U.S. Bank recently introduced the new U.S. Bank Smart Assistant within the U.S. Bank Mobile App. U.S. Bank Smart Assistant was created with a unique “voice-first” design allowing users a similar experience to how they would interact with their banker when looking for information or help managing their accounts. The U.S. Bank Smart Assistant is just the latest in a string of impressive features added to the U.S. Bank Mobile App.

Providing business owners faster access to funds: To give business owners more flexibility and control of their money, U.S. Bank recently launched Everyday Funding, a service that makes funds available more quickly as merchants receive payments from their customers. Everyday Funding is an innovative cash payment service designed to provide the fastest free funding in the payments industry by making funds available within hours, seven days a week.

Most Powerful Women in Banking and Finance: American Banker magazine recently named Kate Quinn, U.S. Bank Vice Chair and Chief Administrative Officer, and Gunjan Kedia, U.S. Bank Vice Chair of Wealth Management and Investment Services, to its 2020 “Most Powerful Women in Banking and Finance” lists. U.S. Bancorp also earned a Top Team Award. The team award is a representation of the entire company, based on factors including: the presence and influence of women in senior ranks; the performance of women-led business units; commitment to and progress toward fostering diversity in key roles; and improvements in the representation of women in the pipeline.

Contact

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

Jeff Shelman, U.S. Bank Public Affairs & Communications
612.422.1423; jeffrey.shelman@usbank.com