Q3 2024 US Bancorp Earnings Call Transcript
Key Points
- U.S. Bancorp (USB) reported strong growth in net interest income, driven by improved spread income and favorable loan mix.
- The company achieved year-over-year double-digit growth in commercial and investment products revenue.
- Return on tangible common equity was 17.9% for the quarter, showcasing strong profitability.
- The efficiency ratio improved to 60.2%, indicating better cost management.
- USB's tangible book value per share increased by 6.7% linked quarter and 18.5% year-over-year, reflecting strong financial health.
- Total average deposits decreased by 1.0% on a linked quarter basis, indicating potential challenges in deposit growth.
- Average loans saw a modest decrease of 0.2% on a linked-quarter basis, reflecting muted industry loan growth.
- The net charge-off ratio increased slightly to 0.60%, indicating a rise in credit losses.
- Noninterest income included $119 million of net security losses related to rebalancing activity within the investment portfolio.
- Service charges decreased by 6.2% linked quarter, partly due to the exit from the ATM cash provisioning business.
(Operator Instructions) This call will be recorded and be available for replay beginning today at approximately 10:00 AM Central Time. I will now turn the conference call over to George Andersen, Senior Vice President and Director of Investor Relations for U.S. Bancorp.
Thank you, Eli, and good morning, everyone. Today, I'm joined by our Chairman and CEO, Andy Cecere; CIO Terry Dolan; President Gunjan Kedia; and CFO John Stern. Together with their prepared remarks, Andy and John will be referencing a slide presentation. A copy of the presentation, our earnings release and supplemental analyst schedules can be found on our website at usbank.com.
Please note that any forward-looking statements made during today's (technical difficulty) assumptions are described on page 2 of today's presentation, our press release and in reports on file with the SEC. Following our initial prepared remarks, Andy, Terry, Gunjan, and John will take any questions that you have.
I will now turn the call
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