U.S. Bancorp
01/16/2025 | Press release | Distributed by Public on 01/17/2025 00:14
U.S. Bancorp reports fourth quarter 2024 results
Highlights
- Net income of $1,745 million and diluted earnings per common share of $1.07. Results included notable items of $109 million ($82 million net-of-tax) related to lease impairments and operational efficiency actions
- Return on tangible common equity of 18.3%, return on average assets of 1.03%, and efficiency ratio of 59.9%, as adjusted for notable items
- Positive operating leverage of 190 basis points, as adjusted for notable items
- Net revenue of $7,009 million, including $4,176 million of net interest income on a taxable-equivalent basis
- Noninterest expense decreased slightly year-over-year and on a linked quarter basis, as adjusted for notable items
- CET1 capital ratio of 10.6% at December 31, 2024
- Full financial details available here.
CEO commentary
U.S. Bancorp Chairman and CEO Andy Cecere said, "In the fourth quarter we posted diluted earnings per share of $1.07 and delivered a return on tangible common equity of 18.3%, both as adjusted for notable items. Year-over-year top line revenue growth and continued expense discipline resulted in 190 basis points of positive operating leverage on an adjusted basis.
Both full year and linked quarter results showcased the benefits of effective balance sheet management, earning asset repricing and mix, as well as our diversified business model. Noninterest income benefited from strong year-over-year growth in commercial products as well as trust and investment management fees as we're seeing the results of greater "interconnectedness" play out in the form of deeper relationships, an enhanced product set, and broader distribution across the franchise.
Credit quality remains stable, and our CET1 capital ratio ended the year at 10.6% as we balanced continued capital accretion with a modest initial share buyback this quarter. As we move into 2025, we are well positioned to deliver industry-leading returns on tangible common equity and remain confident in our strategy for future growth and our ability to deliver meaningful positive operating leverage.
In closing, I would like to extend our sincerest thoughts to those impacted by the devastating wildfires in California. We are closely monitoring this situation and stand ready to assist our many employees, clients, and communities in their time of need."
Business and other highlights
Global Fund Services team wins multiple awards: The U.S. Bank Global Fund Services team was recently named "Best Administrator - Overall" at the Hedgeweek EU Emerging Manager Summit and "Best ETF Custodian" at the ETF Express U.S. ETF Awards. U.S. Bank Global Fund Services provides clients with strategic insights, technology solutions, best-in-class services and financial strength.
U.S. Bank SBA lending increases 74% from fiscal 2023: U.S. Bank showed remarkable growth in U.S. Small Business Administration (SBA) lending in fiscal year 2024, as the bank helped thousands of small business clients expand their businesses. U.S. Bank approved more than 3,100 loans tallying $708.2 million in SBA 7(a) loans. U.S. Bank's 2024 SBA loan volume was 5th-most among SBA lenders and up from 13th-most in fiscal 2023.
In-store and online payments streamlined with new Elavon payment gateway: Elavon, a wholly owned subsidiary of U.S. Bank, announced the launch of its unified cloud-based Elavon Payment Gateway technology, enhancing payment experiences for both merchants and consumers. This new technology allows merchants to accept payments in-store, online and via mobile devices, all on the same global platform. It also integrates with digital wallets including Paze, Apple Pay and Google Pay while including the latest fraud management tools, giving consumers both choice and security.
Contacts
Investors:
George Andersen, director of investor relations, U.S. Bancorp Investor Relations, [email protected]
Media:
Jeff Shelman, senior vice president, U.S. Bank Enterprise External Communications, [email protected]