Summary
U.S. Bancorp (USB) filed an 8-K on March 5, 2024, addressing two key areas. Firstly, it provided an update following a presentation at the RBC Capital Markets Global Financial Institutions Conference. During this presentation, CFO John C. Stern reaffirmed previously issued guidance for both the first quarter and full year 2024. Specifically, full-year net interest income is expected to be around $16.6 billion, with fee revenue projected to increase in the mid-single digits and core expenses remaining flat year-over-year. First-quarter net interest income guidance was reiterated to be between $4.0 billion and $4.1 billion. The second, and perhaps more significant, announcement concerns the resolution of a regulatory matter. U.S. Bank was notified by the Office of the Comptroller of the Currency (OCC) that the consent order related to technology and operational risk management deficiencies at MUFG Union Bank (MUB), which U.S. Bancorp acquired in December 2022, has been terminated. This consent order was a condition of the acquisition, and its successful resolution is a positive development for the company.
Key Highlights
- 1Reaffirmed 2024 full-year net interest income guidance of approximately $16.6 billion.
- 2Confirmed full-year fee revenue is expected to grow in the mid-single digits.
- 3Maintained expectation for core expenses to be flat year-over-year in 2024.
- 4Reiterated first-quarter net interest income guidance of $4.0 billion to $4.1 billion.
- 5The Office of the Comptroller of the Currency (OCC) terminated the consent order related to MUFG Union Bank's (MUB) operational deficiencies.
- 6The termination of the MUB Consent Order removes a regulatory overhang following the bank's acquisition in December 2022.