IBOS member US Bank has announced its 2017 second quarter financial results, released in a report on 19 July 2017.
US Bank reported a net income of $1,500 million for the second quarter of 2017, or $0.85 per diluted common share. Notable items included a $180 million Visa gain in non-interest income and $150 million in non-interest expense related to litigation accruals and a charitable contribution.
The increase in net income on a linked quarter basis was principally due to an increase in total net revenue of 3.1%, reflecting higher net interest income of 2.4%, driven by loan growth, the impact of higher interest rates and an additional day in the current quarter, along with an increase in non-interest income of 3.9% primarily due to seasonally higher fee-based revenue.
Below are the highlights for the second quarter of 2017:
- Industry-leading return on average assets of 1.35% and return on average common equity of 13.4% and efficiency ratio of 55.2%
- Record revenue of $5,487 million and diluted earnings per common share of $0.85
- Net interest income (taxable-equivalent basis) grew 5.9% year-over-year and 2.4% on a linked quarter basis
- Net interest margin of 3.04% for Q2 2017 was two basis points higher than the Q2 2016 and one basis point higher than the Q2 2017, benefiting from rising interest rates partially offset by increasing average cash balances
- Average total loans grew 3.4% over the Q2 2016 and 0.9% on a linked quarter basis
- Credit and debit card revenue grew 7.8% on a year-over-year basis
- Trust and investment management fees increased 6.1% on a year-over-year basis
- Nonperforming assets decreased 19.3% on a year-over-year basis and 9.8% on a linked quarter basis
- Strong capital position. On 30 June 2017, the estimated common equity tier 1 capital to risk-weighted assets ratio was 9.3% using the Basel III fully implemented standardised, and was 11.7% using the Basel III fully implemented advanced approaches method
Access the full report, via US Bancorp, here.