U.S. Bancorp (NYSE:USB) Bernstein's 40th Annual Strategic Decisions Conference May 30, 2024 9:00 AM ET Company Participants Andy Cecere - Chairman and Chief Executive John Stern - Senior Executive Vice President and Chief Financial Conference Call Participants John McDonald - Bernstein John McDonald Okay, good morning. Thanks everyone. We're very happy to start today off with U.S. Bancorp joining us again. From the company we have CEO Andy Cecere and CFO John Stern. Thank you both for coming. Andy Cecere Th ...

U.S. Bancorp (NYSE:USB) Barclays Americas Select Franchise Conference 2024 May 7, 2024 5:00 AM ET Company Participants Terry Dolan - Vice Chair and Chief Administration Officer John Stern - Senior Executive Vice President and Chief Financial Officer Conference Call Participants Jason Goldberg - Barclays Jason Goldberg Welcome. I'm Jason Goldberg, and I cover the U.S. large cap bank stocks here at Barclays. Welcome to our Annual Americas Select Franchise Conference. This started well over 20 years ago with f ...

U.S. Bancorp (NYSE:USB) Barclays Americas Select Franchise Conference 2024 May 7, 2024 5:00 AM ET Company Participants Terry Dolan - Vice Chair and Chief Administration Officer John Stern - Senior Executive Vice President and Chief Financial Officer Conference Call Participants Jason Goldberg - Barclays Jason Goldberg Welcome. I'm Jason Goldberg, and I cover the U.S. large cap bank stocks here at Barclays. Welcome to our Annual Americas Select Franchise Conference. This started well over 20 years ago with f ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from (not applicable) Commission file number 1-6880 U.S. BANCORP (Exact name of registrant as specified in its charter) Delaware 41-0255900 (State or other jurisdiction of in ...

LONDON, April 24, 2024 (GLOBE NEWSWIRE) -- Elavon, a leading global payments provider, today announces its expanded collaboration in Europe with FreedomPay, a global leader in Next Level Commerce™ technologies. The partnership aims to deliver cutting-edge integrated commerce solutions and omni-channel payments technology to large enterprise merchants across Retail and Hospitality. The agreement pairs Elavon acquiring with FreedomPay commerce technologies to benefit Elavon merchants across Europe, empowering ...

U.S. Bancorp said in its latest earnings report that consumers are continuing to boost their credit card loans – and though charge-offs have increased, credit quality has remained strong.Credit card loans in the quarter were $28 billion, adding more than 9% year over year, the parent company of U.S. Bank said Wednesday (April 17).“Credit quality metrics continue to develop in line with our expectations,” CEO Andrew Cecere said, adding that “loan and deposit growth remains under pressure for the industry.”De ...

U.S. Bancorp is forecasting a decline in net interest income for this year. In announcing its earnings Wednesday (April 17), the lender said it anticipates net interest income (NII) of $16.1 billion to $16.4 billion, down from earlier projection of at least $16.6 billion for the year.The bank’s NII for the quarter came to $3.9 billion, down 3.1% for the fourth quarter of 2023, and 14% year over year. This was “due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher ...

U.S. Bancorp’s (USB) first-quarter 2024 adjusted earnings per share (excluding the impact of notable items) of 90 cents beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 22.4% from the prior-year quarter's level.Shares of USB have declined 3.90% in the pre-market trading despite better-than-anticipated earnings. A full day’s trading will depict a better picture.Results have benefited from higher fee income. Moreover, lower expenses during the quarter were commendable. However, ...

Key TakeawaysU.S. Bancorp's stock dipped Wednesday as the regional bank posted lower first-quarter revenue, increased its provision for credit losses, and cut its guidance.Net interest income declined 14% year-over-year, while its provision for credit losses went up 30%.The U.S. Bank parent reduced its full-year net interest income outlook by at least $200 million from its previous estimate. U.S. Bancorp (USB) shares dipped Wednesday as the regional bank posted lower first-quarter revenue, increased its pro ...

Financial Data and Key Metrics - Q1 2024 earnings per share (EPS) was $0 78, including $0 12 per share of notable items Excluding notables, EPS was $0 90 [6] - CET1 ratio ended the quarter at 10 0%, up 10 basis points from year-end, and return on tangible common equity (ROTCE) was 17 4% on an adjusted basis [6] - Net interest income (NII) on a taxable equivalent basis was approximately $4 billion, down 3 1% linked-quarter, and net interest margin (NIM) declined 8 basis points to 2 70% [13] - Non-interest income increased 7 7% year-over-year, driven by higher payments revenue, capital markets activity, and mortgage banking fees [14] - Non-interest expense for the quarter totaled $4 5 billion, including $265 million of notable items Adjusted non-interest expense decreased 0 2% linked-quarter and 2 7% year-over-year [14] - Non-performing assets increased 20% linked-quarter, primarily due to stress in the commercial real estate office portfolio and one idiosyncratic commercial loan [15] - Net charge-off ratio was 0 53%, up 4 basis points from Q4 2023 and higher compared to Q1 2023 [15] Business Line Performance - Fee income represents about 40% of total net revenue, positioning the company well in a lower interest rate environment [9] - Payments ecosystem showed strong progress, with small business relationships growing 15%-20% and related revenue growing 25%-30% over the past few years [9] - Loan growth was impacted by slow industry demand, with total average loans down 0 5% linked-quarter to $371 billion [11] - Consumer deposit growth remained strong despite industry-wide pressure, with total average deposits stable at $503 billion [11] Market Performance - Deposit mix and pricing pressure were driven by a higher-for-longer interest rate environment, impacting NII expectations for the full year [8] - Corporate and mid-market clients shifted from low-cost deposits to higher-cost deposits, slowing the pace of deposit mix shift [22] - Seasonal deposit inflows at the end of Q1 were higher than usual, with $15 billion to $20 billion in temporary deposits, primarily due to holiday timing and tax season [57] Strategy and Industry Competition - The company is focusing on operational efficiencies and cost management to mitigate the impact of lower-than-expected NII on profitability [8][23] - Investments in digital capabilities, technology modernization, and the payments ecosystem are driving fee growth and client penetration [18] - The company is prioritizing capital-efficient growth and optimizing its funding mix, limiting reliance on short-term borrowings [12] Management Commentary on Operating Environment and Outlook - Management expects NII to stabilize in Q2 and grow in the second half of 2024, driven by loan repricing, deposit stabilization, and securities portfolio churn [51][62] - Full-year 2024 NII guidance was revised to $16 1 billion to $16 4 billion, reflecting changes in client deposit behavior and competitive dynamics [16] - Non-interest income is expected to grow at a mid-single-digit rate for the full year, supported by strong capital markets activity and payments revenue [16] - Credit quality metrics are developing in line with expectations, with non-performing assets expected to moderate after Q2 [32] Other Important Information - The company completed the integration of Union Bank, achieving $900 million in cost synergies [23] - The company is pausing share repurchases to build capital levels, focusing on dividends and investments in the business [72] - The company is actively managing its asset sensitivity to remain neutral in a volatile rate environment [43][65] Q&A Session Summary Question: NII Guidance and Deposit Behavior [21] - The company revised its NII guidance due to slower-than-expected stabilization in deposit mix shifts, particularly in corporate and mid-market segments [22] - Management expects NII to stabilize in Q2 and grow in the second half of 2024, driven by loan repricing and deposit stabilization [22][62] Question: Securities Yield and Deposit Mix [26] - Securities yield was down 1 basis point due to temporary hedging actions, with $3 billion in securities rolling off each quarter at lower yields [27] - Non-interest-bearing deposits (NIB) are expected to continue trending down, potentially reaching the mid-70s as a percentage of total deposits [27][85] Question: Fee Revenue Outlook [28] - Fee revenue growth is expected to be driven by strong capital markets activity, mortgage banking, and payments business, with mid-single-digit growth anticipated for the full year [29] Question: Credit Trends and Charge-offs [31] - Non-performing assets are expected to increase in Q2, primarily due to commercial real estate office stress, but charge-offs are expected to moderate later in the year [32][34] Question: Expense Management [36] - The company is focusing on operational efficiencies, including procurement, third-party spend, and workplace management, to offset NII pressure [23][36] Question: Corporate Deposit Behavior [37] - Corporate clients are shifting from NIB to interest-bearing deposits, with the pace of rotation slowing but expected to continue [38] Question: Asset Sensitivity and Rate Environment [42] - The company is managing its asset sensitivity to remain neutral, with actions taken to hedge against rate volatility [43][65] Question: Payments Business Performance [45] - Payments revenue growth was 4% year-over-year, with strong momentum in card services and merchant payments, offset by temporary declines in travel-related revenue [46] Question: CET1 Ratio and Capital Return [71] - The CET1 ratio increased to 10 0%, with the company pausing share repurchases to build capital levels ahead of Basel III endgame implementation [72] Question: Deposit Surge and NIB Trends [56][82] - The $15 billion to $20 billion deposit surge at the end of Q1 was primarily seasonal, with $10 billion above typical levels, and is expected to normalize in Q2 [57][88] Question: NII Drivers and Medium-Term Outlook [77] - The company expects NII growth in the second half of 2024, driven by loan repricing, deposit stabilization, and securities portfolio churn [62][78] Question: Deposit Beta and NIB Migration [82] - Deposit beta has slowed, with non-interest-bearing deposits expected to decline further, potentially reaching the mid-70s as a percentage of total deposits [83][85] Question: NII Guidance Conservatism [101] - The NII guidance range reflects uncertainty in client behavior and market dynamics, with no significant conservatism or aggressiveness assumed [102]