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IBOS member US Bank reports its 2017 third quarter financial results

IBOS member US Bank’s parent company, US Bancorp, has announced its 2017 third quarter financial results.

US Bancorp reported a net income of $1,563 million for Q3 2017, or $0.88 per diluted common share, compared with $1,502 million, or $0.84 per diluted common share, in Q3 2016.

Net income attributable to US Bancorp was $1,563 million for Q3 2017, 4.1 percent higher than the $1,502 million for Q3 2016, and 4.2 per cent higher than the $1,500 million for Q2 2017. Diluted earnings per common share of $0.88 in Q3 2017 were $0.04 higher than Q3 2016 and $0.03 higher than Q2 2017.

The increase in net income year-over-year was principally due to a 4.1 per cent increase in total net revenue driven by higher net interest income, partially offset by a 3.7 per cent increase in non-interest expense.

Andy Cecere, US Bancorp President and Chief Executive Officer, commented:

“In the third quarter, US Bancorp delivered industry leading results, supported by record revenue, net income and earnings per diluted share. We produced best-in-class performance metrics, including return on average assets of 1.38 per cent, return on average common equity of 13.6 per cent and an improving efficiency ratio of 54.3 per cent.

“We remain deeply committed to value creation for our shareholders, and in the third quarter, our dividend increased by 7.1 per cent. Overall, we returned 79 per cent of our earnings to shareholders through dividends and share buybacks. As we move into the fourth quarter, we plan to build on the momentum we have established.

“Our Company is strong and we are well positioned for growth. We continue to be focused on delivering a great customer experience through our One Bank initiatives, optimisation of our businesses, data analytics, process improvements and product delivery. We are investing in innovation and technology to drive growth and improve efficiencies in the future. Our strong revenue base and financial discipline positions us for growth heading into the next year. I’m proud of our employees and the effort they make every day to help us deliver consistently strong financial returns and to become our stakeholders’ most trusted choice.”

Below are the highlights for the third quarter of 2017:

  • Record diluted earnings per share of $0.88, record net revenue of $5,608 million, record net income of $1,563 million and positive operating leverage
  • Industry-leading return on average assets of 1.38 per cent and return on average common equity of 13.6 per cent and efficiency ratio of 54.3 per cent
  • Returned 79 per cent of third quarter earnings to shareholders through dividends and share buybacks
  • Net interest income (taxable-equivalent basis) grew 8.3 per cent year-over-year and 3.8 per cent on a linked quarter basis
    • Net interest margin of 3.10 per cent for Q3 2017 was 12 basis points higher than Q3 2016, and six basis points higher than Q2 2017
  • Nonperforming assets decreased 24.8 per cent on a year-over-year basis and 7.3 per cent on a linked quarter basis
  • Average total loans grew 3.0 per cent over Q3 2016 and 0.8 per cent on a linked quarter basis
    • Average total commercial loans grew 4.6 per cent over Q3 2016 and 1.0 percent on a linked quarter basis
      • Average total other retail loans grew 6.1 per cent over the Q3 2016 and 2.6 per cent on a linked quarter basis
  • Strong capital position. On 30 September 2017, the estimated common equity tier 1 capital to risk-weighted assets ratio was 9.4 per cent using the Basel III fully implemented standardised approach and was 11.8 per cent using the Basel III fully implemented advanced approaches method.

Access the full report, via US Bancorp, here.