US Bancorp, the parent company of IBOS member US Bank, has reported a record net income of $1,856 million.
Net income attributable to US Bancorp was $1,856 million for Q4 2018, which was 10.3 per cent higher than the $1,682 million for Q4 2017, and 2.3 per cent higher than the $1,815 million for Q3 2018.
The increase in net income year-over-year was due to total net revenue growth of 4.1 per cent and a decrease in non-interest expense of 15.9 per cent. Net interest income increased 4.0 per cent (3.2 per cent on a taxable-equivalent basis), mainly a result of the impact of rising interest rates on assets, earning assets growth, and higher yields on reinvestment of securities, partially offset by higher rates on deposits and funding mix.
Below are the Q4 2018 and Full Year 2018 highlights:
- Net income of $1,856 million and diluted earnings per common share of $1.10 for Q4 2018, including $45 million of notable items, net of taxes, representing an increase of $0.03 per diluted common share
- Industry leading return on average assets of 1.59% and return on average common equity of 15.8% for Q4 2018
- Return on tangible common equity of 20.2% for Q4 2018
- Returned 80% of Q4 2018 earnings to shareholders through dividends and share buybacks
- Net interest income grew 4.0% year-over-year (3.2% on a taxable-equivalent basis)
- Average total loans increased 0.9% and 1.4% compared to Q3 2018 and Q4 2017, respectively (1.5% and 2.6% excluding the impact of loan sales)
- Total non-interest income grew 5.4% year-over year, driven by payments revenue and trust and investment management fees
- Full year net income of $7,096 million and diluted earnings per common share of $4.14
- Positive operating leverage for full year 2018 with net revenue increase of 3.4% and non-interest expense decrease of 2.5%. Excluding notable items, net revenue increase of 3.0% and non-interest expense increase of 2.7%.
Read the full Q4 2018 and Full Year report via US Bank here.