US Bancorp, the parent company of US Bank, has announced a net income of $1,473 million for Q1 2017, or $0.82 per diluted common share, compared with $1,386 million, or $0.76 per diluted common share, in Q1 2016.

Net income attributable to US Bancorp was $1,473 million for Q1 2017, 6.3% higher than the $1,386 million for Q1 2016. The increase in net income year-over-year was principally due to total net revenue growth, including an increase in net interest income of 3.7% on a taxable-equivalent basis (3.9% as reported on a GAAP basis), mainly as a result of loan growth, and an increase in noninterest income of 8.4%, driven by higher payment services revenue, trust and investment management fees and mortgage banking revenue.

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

“US Bancorp once again delivered industry-leading returns and profitability in the first quarter of 2017 as we leveraged our diverse business platform and our investments in innovation to deliver the entire bank to our customers in the ways they want to interact with us. We strive to continually improve upon our best-in-class performance, and we are well positioned to do so against the backdrop of an evolving economic and regulatory environment.

I am excited for the future and working with our employees who have a unique capability to help U.S. Bancorp deliver consistent growth while exploring innovations that create dynamic opportunities with our customers, and accomplishing it all with a commitment to being our customers’ most trusted partner. We are well positioned to create long-term value for our shareholders, customers, communities and employees.”

Average investment securities in Q1 2017 were $4.7 billion (4.5%) higher year-over-year, and $378 million (0.3%) higher than the prior quarter. These increases were primarily due to purchases of US Treasury securities, partially offset by a reduction in US government agency-backed securities, net of prepayments and maturities, in support of liquidity management.

Below are the highlights for US Bancorp’s first quarter of 2017:

Industry-leading return on average assets of 1.35% and return on average common equity of 13.3%

Net interest income (taxable-equivalent basis) grew 3.7% year-over-year and declined slightly on a linked quarter basis due to fewer days in the quarter
- Net interest margin of 3.03% for A1 2017 decreased three basis points from Q1 2016, due to loan mix and reinvestment yields, and grew five basis points over Q4 2016, due to the favourable impact of higher interest rates

Average total loans grew 4.1% over Q1 2016 and 0.2% linked quarter

Noninterest income increased 8.4% on a year-over-year basis
- Payment services revenue increased 4.9%, led by credit and debit card revenue growth of 9.8%
- Trust and investment management fees increased 8.6%
- Mortgage banking revenue increased 10.7%