Early Access

10-QPeriod: Q1 FY2024

US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 1, 2024For Securities:USBUSB-PHUSB-PPUSB-PRUSB-PQUSB-PSUSB-PA

Summary

U.S. Bancorp (USB) reported a net income of $1.32 billion for the first quarter of 2024, a decrease of 22.2% compared to $1.70 billion in the prior year. This decline was primarily driven by a 14.0% decrease in net interest income, largely due to higher interest rates impacting deposit pricing, partially offset by higher yields on earning assets. While noninterest income saw a modest 7.7% increase, driven by higher fee revenues across various categories, the provision for credit losses rose by 29.5% year-over-year, reflecting a normalization in the credit environment. Despite the year-over-year profit decline, the company demonstrated solid operational performance and capital strength. Total net revenue saw a decrease of 6.4%, but noninterest expense was down 2.1% due to expense management and MUB acquisition synergies. The company's capital ratios remained robust, exceeding regulatory "well-capitalized" requirements, with Common Equity Tier 1 capital at 10.0% under the Basel III standardized approach. Deposits also saw a slight increase, and the company maintained a strong liquidity position, with its Liquidity Coverage Ratio (LCR) at 109.4%.

Financial Highlights

35 data points
Beta

Revenue

$6.71B

Net Income

$1.32B

0.2% Net Margin

EPS (Diluted)

$0.78

Total Assets

$683.61B

Cash & Equivalents

$76.98B

Free Cash Flow

$2.66B

Financial Statements
Beta
Revenue$6.71B
Interest Expense$3.78B
Net Income$1.32B
EPS (Basic)$0.78
EPS (Diluted)$0.78
Shares Outstanding (Basic)1.56B
Shares Outstanding (Diluted)1.56B

Key Highlights

  • 1Net income decreased by 22.2% to $1.32 billion year-over-year, primarily due to a 14.0% drop in net interest income.
  • 2Noninterest income increased by 7.7% to $2.70 billion, driven by higher fee revenues.
  • 3Noninterest expense decreased by 2.1% to $4.46 billion, benefiting from expense management and MUB acquisition synergies.
  • 4The provision for credit losses increased by 29.5% to $553 million, indicating a normalization of credit conditions.
  • 5Total deposits increased by 3.1% to $528.1 billion, with a notable shift from noninterest-bearing to interest-bearing deposits.
  • 6Capital ratios remained strong, with Common Equity Tier 1 capital at 10.0% and the company exceeding all regulatory "well-capitalized" requirements.
  • 7Liquidity remains robust, with an LCR of 109.4% and total available liquidity of $299.1 billion.

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