News

Results include net income of $1,793 million and diluted earnings per common share of $1.12 as adjusted for notable items related to merger and integration-related charges associated with the acquisition of MUFG Union Bank 

Highlights

• CET1 capital ratio of 9.1% at June 30, 2023, compared with 8.5% at March 31, 2023
• Net income of $1,793 million and diluted earnings per common share of $1.12 as adjusted for notable items related to merger and integration-related charges associated with the acquisition of MUFG Union Bank (“MUB”) and balance sheet optimization activities
• Net revenue of $7,197 million as adjusted for notable items including $4,449 million of net interest income on a taxable-equivalent basis and $2,748 million of noninterest income
• Reported results included notable items related to merger and integration-related charges of $310 million and balance sheet optimization costs of $265 million, with a total impact, net of tax, of $(0.28) on diluted earnings per common share
• Return on average assets of 1.07%, return on average common equity of 14.6%, and efficiency ratio of 59.2% as adjusted for notable items
• Net interest income on a taxable-equivalent basis increased 28.4% year-over-year due to the impact of the acquisition of MUB and rising interest rates on earning assets and decreased 4.7% linked quarter due to deposit pricing
• Average total loan growth of 19.9% year-over-year and 0.5% on a linked quarter basis
• Average total deposit growth of 8.9% year-over-year and a decrease of 2.6% on a linked quarter basis

Full financial details

Full financial details available here.

CEO commentary

U.S. Bancorp Chairman, President and CEO Andy Cecere said,  “In the second quarter, we successfully completed our conversion of Union Bank and further accelerated our accretion of capital, ending the quarter with a common equity tier 1 ratio of 9.1%. We posted diluted earnings per common share of $1.12, as adjusted, driven by continued momentum across our businesses supplemented by positive operating leverage on a linked quarter basis. We ended the quarter with $522 billion in total deposits, an increase of 3.2% versus the prior quarter. Our lower net interest margin this quarter reflects both higher levels of cash given debt ceiling concerns as well as higher deposit costs due to the rate environment. Credit quality remains strong, however we continued to strengthen our balance sheet by increasing our loan loss reserve reflecting prudent credit risk management.

Entering the second half of this year, we are well-positioned as a national bank with greater scale and the opportunity to capture significant cost synergies from Union Bank and to execute on revenue growth strategies that leverage our digital offerings, payment services capabilities and broad product set. I want to thank all our employees for their continued focus on best serving our clients, communities and shareholders.”

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