U.S. Bancorp’s (USB) second-quarter 2024 adjusted earnings per share (excluding the impact of notable items) of 98 cents beat the Zacks Consensus Estimate by 2%. However, the bottom line declined 12.5% from the prior-year quarter's level.Shares of USB have increased around 4.1% in the early market trading session on better-than-anticipated earnings. A full day’s trading will depict a better picture.Results have benefited from higher deposits and lower expenses. However, a decline in net interest income (NII ...

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.97, which included a notable item related to the FDIC special assessment, resulting in an adjusted earnings per share of $0.98 [6][9] - Return on tangible common equity increased to 18.6% on an adjusted basis [6] - Average total deposits increased by 2.2% to $514 billion, while average total loans rose by 1.0% to $375 billion [10][11] - The tangible book value per share increased to $23.15, reflecting a 2.8% increase from the previous quarter and a 10.1% increase year-over-year [7] - The common equity Tier-1 ratio improved to 10.3%, up 30 basis points from the prior quarter and 120 basis points from the previous year [18] Business Line Data and Key Metrics Changes - Fee income represented over 40% of total net revenue, benefiting from seasonal revenues across payment businesses and strong growth in trust and investment management fees [8] - Noninterest income increased by $115 million or 4.3% on a linked-quarter basis, driven by higher payments revenue and stronger mortgage banking fees [16] - Noninterest expense as adjusted decreased by $6 million or 0.1% on a linked-quarter basis, primarily due to lower compensation and employee benefit expenses [17] Market Data and Key Metrics Changes - Average noninterest-bearing deposits decreased by $1.4 billion or 1.6% on a linked-quarter basis, indicating a focus on relationship-based deposit generation [10] - The net charge-off ratio increased to 58 basis points, with expectations to approach 60 basis points in the second half of the year [14] Company Strategy and Development Direction - The company is focused on enhancing customer acquisition, improving client experiences, and deepening relationships to drive growth [20] - Management emphasized the importance of expense management and achieving positive operating leverage in the second half of the year [20] - The company aims to maintain a diversified revenue mix and strong risk management discipline to support future growth [20] Management's Comments on Operating Environment and Future Outlook - Management noted stabilization in credit quality metrics, with expectations for modest loan growth and cautious client behavior in the current economic environment [27][65] - The company anticipates stable net interest income for the third quarter, with potential growth in the fourth quarter depending on market conditions [19][29] - Management expressed confidence in capital levels and the ability to accrete capital, with plans for a potential increase in dividends [42] Other Important Information - The company is well-capitalized and prepared to manage potential industry stress resulting from macroeconomic downturns [18] - The Federal Reserve's stress test results indicated a need for increased capital buffers, which the company is addressing through prudent capital management [18] Q&A Session Summary Question: Discussion on NII trajectory - Management highlighted that net interest income growth is expected to stabilize in the third quarter, with potential growth in the fourth quarter depending on deposit rotation and market conditions [23][29] Question: Insights on commercial loan demand - Management noted pockets of loan growth in the corporate loan book, but overall loan growth remains tepid due to client caution [26][27] Question: Fee revenue growth outlook - Management expects mid-single-digit growth in fee revenue, driven by payments, trust investment management fees, and capital markets [31][34] Question: Credit outlook and charge-offs - Management anticipates charge-offs to approach 60 basis points in the second half of the year, with stabilization in delinquency rates [37][78] Question: Payment business growth - Management expects high single-digit growth in merchant and corporate payments, with mid-single-digit growth in credit and debit card areas [71]

Core Insights - U.S. Bancorp reported a revenue of $6.84 billion for the quarter ended June 2024, reflecting a decrease of 4.2% year-over-year, with EPS at $0.98 compared to $1.12 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 0.35%, while the EPS surpassed the consensus estimate by 2.08% [1] Financial Performance Metrics - Efficiency Ratio was reported at 61%, slightly better than the estimated 61.5% [2] - Total earning assets averaged $608.89 billion, exceeding the estimate of $598.46 billion [2] - Net interest margin (FTE) was 2.7%, matching the analyst estimate [2] - Net charge-off as a percentage of average loans was 0.6%, consistent with estimates [2] - Book value per common share was $31.80, slightly below the estimated $31.87 [2] - Total nonperforming assets amounted to $1.85 billion, higher than the estimated $1.80 billion [2] - Total nonperforming loans were reported at $1.81 billion, above the estimate of $1.76 billion [2] - Tier 1 Capital Ratio was 11.9%, exceeding the estimated 11.7% [2] - Leverage ratio was 8.1%, below the estimated 8.3% [2] - Commercial products revenue was $374 million, lower than the estimated $386.85 million [2] - Service charges reached $322 million, surpassing the estimate of $311.34 million [2] - Mortgage banking revenue was $190 million, exceeding the estimate of $166.60 million [2] Stock Performance - U.S. Bancorp shares have returned +10.2% over the past month, outperforming the Zacks S&P 500 composite's +4.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

U.S. Bank | Confidential 1 July 17, 2024 U.S. Bancorp 2Q24 Earnings Conference Call Forward-looking Statements and Additional Information The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assum ...

U.S. Bancorp (USB) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.08%. A quarter ago, it was expected that this company would post earnings of $0.89 per share when it actually produced earnings of $0.90, delivering a surprise of 1.12%.Over the last four quarters, the company has su ...

Supplemental Consolidated Schedules Second Quarter 2024 QUARTERLY CONSOLIDATED STATEMENT OF INCOME | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------|----------|-----------|--------------|---------------|----------| | (Dollars and Shares in Millions, Except Per Share Data) | June 30, | March 31, | December 31, | September 30, | June 30, | | (Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | | Interest Income | | | | | | | Loans | $5,761 | $5,712 | $5,742 | $5,7 ...

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Analysts on Wall Street project that U.S. Bancorp (USB) will announce quarterly earnings of $0.96 per share in its forthcoming report, representing a decline of 14.3% year over year. Revenues are projected to reach $6.81 billion, declining 4.6% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period ...

The market expects U.S. Bancorp (USB) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 17, 2024, might help the stock move higher if these key numbers are bette ...