Q4 2024 US Bancorp Earnings Call Transcript
Key Points
- U.S. Bancorp (USB) reported a strong fourth quarter with $1.07 earnings per share after adjusting for notable items.
- Net revenue for the quarter was $7 billion, contributing to a total of $27.5 billion for the year, driven by growth in net interest income and non-interest income.
- The company achieved 190 basis points of positive operating leverage on an adjusted basis year-over-year.
- U.S. Bancorp's CET1 capital ratio increased to 10.6%, reflecting strong capital management.
- The company delivered an 18.3% return on tangible common equity and improved its efficiency ratio to 59.9% in the fourth quarter.
- The quarter included $109 million of notable expense items, impacting earnings.
- There was a slight decline in the average yield across both the investment portfolio and loan book due to variable rates.
- Noninterest income growth was partially offset by lower mortgage banking and seasonally lower payments revenue.
- The merchant acquiring yield contracted by 70 basis points year-over-year, indicating potential competitive pressures.
- The company expects modest loan and deposit growth for 2025, indicating potential challenges in expanding its balance sheet.
Welcome to the U.S. Bancorp fourth quarter 2024 earnings conference call. (Operator Instructions) This call will be recorded and available for replay beginning today at approximately 11:00 AM Central Time. I will now turn the conference over to George Anderson, Senior Vice President and Director of Investor Relations for US Bancorp. Please go ahead.
Thank you, Audra, and good morning, everyone. Today, I'm joined by our Chairman and CEO, Andy Cecere; President, Gunjan Kedia; Vice Chair and CAO, Terry Dolan; and Senior Executive Vice President and CFO, John Stern. In a moment, Andy and John will be referencing a slide presentation together with their prepared remarks. A copy of the presentation, our press release, and all supplemental consolidated schedules can be found on our website at ir.usbank.com. Please note that any forward-looking statements made during today's call are subject to risks and uncertainty.
Factors that could materially change our current forward-looking assumptions are described on page 2
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