US Bancorp, the parent company of IBOS member US Bank, has reported a net revenue of $5,469 million and a net income of $1,675 million, 13.7% higher than Q1 2018.
Industry lending return on average assets of 1.50% and return on average common equity of 14.9%. Additionally, US Bancorp noted a return on tangible common equity of 19.3%.
Results for Q1 2018 included favourable tax matters partially offset by the impact of a transitional change in stock-based compensation vesting provisions, that combined, increased diluted earnings per common share by $0.01.
The increase in net income year-over-year was primarily due to total net revenue growth of 3.4% (3.9% excluding the impact of tax reform related to taxable-equivalent adjustments for tax exempt assets), including an increase in net interest income of 5.5%, mainly a result of the impact of rising interest rates and loan growth.
Below are highlights from Q1 2018 financial results:
- Net income of $1,675 million and diluted earnings per common share of $0.96 in the Q1 2018
- Industry leading return on average assets of 1.50% and return on average common equity of 14.9%
- Returned 68% of Q1 2018 earnings to shareholders through dividends and share buybacks
- Net interest income grew 5.5% year-over-year
- Total net revenue grew 3.4% year-over year
- Payment services revenue grew 6.5%
- Trust and investment management fees increased 8.2%
- Deposit service charges increased 5.8%
- Net interest margin of 3.13% was seven basis points higher than Q1 2017 and two basis points higher than Q4 2017 (four basis points excluding the impact of tax reform)
- Average total loans grew 2.3% year-over-year
Access the full Q1 2018 report via US Bancorp here.