News

Results include net income of $1,881 million and diluted earnings per common share of $1.16 as adjusted for merger and integration-related charges associated with the acquisition of MUFG Union Bank 

Highlights:

• Net income of $1,881 million and diluted earnings per common share of $1.16 as adjusted for merger and integration-related charges associated with the acquisition of MUFG Union Bank (“MUB”)
• Net revenue of $7,175 million including $4,668 million of net interest income and $2,507 million of noninterest income
• Net interest margin of 3.10%, an increase of 9 basis points on a linked quarter basis, driven by the impact of earning asset mix and related yields
• ·Merger and integration-related charges of $244 million ($183 million net-of-tax or $(0.12) per diluted common share)
• ·Return on average assets of 1.15% and return on average common equity of 15.7%, as adjusted for merger and integration-related charges related to the acquisition of MUB
• ·On a taxable-equivalent basis, net interest income increased 45.9 percent year-over-year and 7.9 percent linked quarter due to the impact of the acquisition of MUB and rising interest rates on earning assets, partially offset by deposit pricing
• ·Average total loan growth of 23.6% year-over-year and 7.5% on a linked quarter basis
• ·Average total deposit growth of 12.4% year-over-year and 5.9% on a linked quarter basis
• ·CET1 capital ratio of 8.5% at March 31, 2023, compared with 8.4% at December 31, 2022 

Full financial details

Full financial details available here

CEO commentary

U.S. Bancorp Chairman, President and CEO Andy Cecere said,  “Our financial performance this quarter demonstrates how our scale, differentiated business mix, and through-the-cycle approach to risk management converge to drive industry-leading returns to shareholders anchored by a strong balance sheet. Our first quarter diluted earnings per common share, as adjusted, totaled $1.16, revenues exceeded $7 billion for the first time in our Company’s history, and we delivered a reported return on tangible common equity of 22.0%. The strength and stability of our balance sheet is foundational to the Company, and our commitment to managing the business with a long-term view is unwavering. Our strong liquidity position is enhanced by a well-diversified deposit profile and access to ample alternative funding sources. Our common equity tier 1 capital ratio ended the quarter at our target level of 8.5%, and we expect that ratio to expand over the next several quarters as we realize the accretive benefit of recently-acquired Union Bank. The integration is proceeding as planned, and we continue to target conversion over the upcoming Memorial Day weekend. I’d like to thank our employees for their commitment to doing the right thing for customers and communities every day.” 

Contact

George Andersen, U.S. Bancorp Investor Relations
george.andersen@usbank.com, 612.303.3620

Jeff Shelman, U.S. Bank Public Affairs and Communications
jeffrey.shelman@usbank.com, 612.303.9933