News

Highlights:

•Net revenue of $6,012 million including $3,464 million of net interest income and $2,548 million of noninterest income

•Net income of $1,531 million and diluted earnings per common share of $0.99, including merger and integration charges

•Merger and integration-related charges of $197 million ($153 million net of tax or $(0.10) per diluted common share) related to the planned acquisition of MUFG Union Bank

•Return on average assets of 1.06% and return on average common equity of 13.9%. Excluding merger and integration-related charges, net income of $1,684 million, return on average assets of 1.16% and return on average common equity of 15.3%

•Noninterest income growth of 6.3% linked quarter driven by payment services revenue and trust and investment management fees

•Average total loans growth of 10.2% year-over-year and 3.6% on a linked quarter basis

•Average total deposits growth of 6.4% year-over-year and 0.5% on a linked quarter basis

•Net charge-off ratio of 0.20% in 2Q22 compared with 0.21% in 1Q22 and 0.25% in 2Q21

•CET1 capital ratio of 9.7% at June 30, 2022, compared with 9.8% at March 31, 2022

Full financial details:

https://ir.usbank.com/investor-relations/financial-information

CEO commentary:

 “In the second quarter, we achieved record net revenue totaling $6.0 billion, supported by strong growth in both net interest income and fee revenue. We posted diluted earnings per share of $0.99 including merger and integration-related charges of $(0.10) related to the planned acquisition of MUFG Union Bank. Loan growth was robust, we saw good momentum in our payments businesses reflecting strong business activity and our expense growth was well managed. This quarter our return on tangible common equity was 20.5%, excluding merger and integration-related charges. Credit quality remains strong and our net charge-off ratio improved modestly in the quarter. Given strong loan growth and increased uncertainty surrounding the macro-economic outlook, we increased our loan loss reserve reflecting our through-the-cycle risk management approach. As we head into the second half of the year we face an uncertain economic environment. However, we are well positioned for the range of possible outcomes given strong liquidity and capital ratios, our diversified business mix, and our well-established risk management track record.”

In the spotlight:

 Community Benefits Plan

U.S. Bancorp announced a $100 billion, five-year community benefits plan (CBP) as part of the planned acquisition of MUFG Union Bank. The CBP, which will be effective once the acquisition closes, is intended to continue and expand the important work underway by both organizations to build and support equitable access to capital for the communities we serve. A majority of the commitments, 60% of the total, will support efforts in California, the state most impacted by the acquisition.

 U.S. Bank Collaborates to Simplify, Accelerate Supply-Chain Financing

U.S. Bank entered into a collaboration agreement with trade-finance fintech LiquidX® to help expedite and simplify supply-chain transactions between suppliers and buyers. Suppliers and buyers will be able to connect their supply-chain systems directly to U.S. Bank and transact through LiquidX’s easy-to-use platform which is expected to reduce supply-chain-finance friction and cash-flow challenges facing many companies. This collaboration will enable suppliers to be paid nearly immediately and buyers to receive extended payment terms.

 Managing Finances and Operations for Small Businesses

U.S. Bank recently launched Business Essentials, a unified platform that provides a one-stop shop in a seamless digital experience. It's a holistic banking, payments, and software offering for small businesses. Business Essentials is backed by expert human support from bankers who specialize in small business. The platform makes it easy for clients to take care of their financial needs today and provides insights and support to help them make smart decisions for tomorrow.

 Spanish-Language Voice Assistant

U.S. Bank is the first financial institution in the United States to offer a Spanish-speaking virtual voice assistant for banking. The Spanish-language version of our best-in-class Smart Assistant in the U.S. Bank Mobile App has the same features and functionality as the popular English-language version. This new technology demonstrates U.S. Bank’s continued emphasis on putting customer experience first, by creating new digital tools that enable them to bank however, whenever and wherever is best for them.

Contact

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

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