US Bancorp, IBOS member US Bank’s parent company, has today reported a net income of $1,682 million for Q4 2017, compared with $1,478 million in Q4 2016.
The net income in Q4 2017 was 13.8 per cent higher than the $1,478 million for Q4 2016, and 7.6 per cent higher than the $1,563 million for Q3 2017.
The increase in net income year-over-year is primarily due to total net revenue growth, including an increase in net interest income of 6.4 per cent, mainly a result of the impact of rising interest rates and loan growth.
Andy Cecere, US Bancorp President and Chief Executive Officer, commented:
“Our fourth quarter results were a strong end to what was a record year for US Bancorp on several measures: we delivered record net revenue, net income, and diluted earnings per common share. Excluding notable items, our fourth quarter performance metrics were highlighted by a return on average common equity of 13.4 per cent and a return on average assets of 1.33 per cent. In the fourth quarter, we returned 72 per cent of earnings to shareholders through dividends and share buybacks.
“The successes of 2017 were a direct result of the outstanding dedication and effort of our employees. I want to thank our amazing team members who work tirelessly to be our customers’ most trusted partner. We are operating from a position of strength as we enter 2018 and we will continue to work every day to create value for our investors, our customers, our communities, and our employees.”
Below are the financial highlights for Q4 2017:
- Record net revenue, both as reported and excluding notable items.
- Diluted earnings per common share of $0.88 in the Q4 2017, excluding notable items.
- Return on average assets of 1.46 per cent and return on average common equity of 14.7 per cent (1.33 per cent and 13.4 per cent, respectively, excluding notable items).
- Returned 72 per cent of Q4 2017 earnings to shareholders through dividends and share buybacks.
- Net interest income grew 6.4 per cent year-over-year and 0.3 per cent on a linked quarter basis.
- Net interest margin of 3.08 per cent for Q4 2017 was 10 basis points higher than Q4 2016, and two basis points lower than Q3 2017.
- Positive operating leverage in Q4 2017, on a year-over-year basis, excluding notable items.
- Nonperforming assets decreased 25.1 per cent on a year-over-year basis and 4.1 percent on a linked quarter basis.
- Average total loans grew 2.6 per cent over Q4 2016 and 0.8 per cent on a linked quarter basis.
- Average total commercial loans grew 4.0 per cent over Q4 2016 and 1.0 per cent on a linked quarter basis.
- Average total other retail loans grew 6.0 per cent over Q4 2016 and 1.9 per cent on a linked quarter basis.
- Strong capital position. At 31 December 2017, the estimated common equity tier 1 capital to risk-weighted assets ratio was 9.1 per cent using the Basel III fully implemented standardised approach and was 11.6 per cent using the Basel III fully implemented advanced approaches method.
Below are the financial highlights for the full year of 2017:
- Record diluted earnings per common share of $3.51, record net revenue of $22,057 million, and record net income of $6,218 million. Earnings to common shareholders were $3.42 per diluted common share for 2017, excluding notable items.
- Industry-leading return on average assets of 1.39 per cent and return on average common equity of 13.8 per cent (1.35 per cent and 13.4 per cent, respectively, excluding notable items).
- Returned 77 per cent of 2017 earnings to shareholders through dividends and share buybacks.
Read the full financial report via US Bank here.