U.S. Bancorp (USB) Reports Q2 Earnings: What Key Metrics Have to Say

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]