US Bancorp, the parent company of IBOS member US Bank, today reported a net revenue of $5,640 million and a net income of $1,750 million, 16.7% higher than Q2 2017.
Industry leading return on average assets of 1.54% and return on average common equity of 15.3%. Additionally, US Bancorp noted a return on tangible common equity of 19.8%.
The increase in net income year-over-year was primarily due to total net revenue growth of 3.5% partially offset by non-interest expense growth of 3.4%. Net interest income increased 4.9% (4.1% on a taxable-equivalent basis), mainly a result of the impact of rising interest rates and earning assets growth.
Non-interest income increased 2.8% driven by higher payment services revenue and trust and investment management fees, partially offset by decreases in mortgage banking revenue and commercial products revenue compared with a year ago.
Below are highlights from Q2 2018 financial results:
- Net income of $1,750 million and diluted earnings per common share of $1.02 in the second quarter of 2018
- Industry leading return on average assets of 1.54% and return on average common equity of 15.3%
- Return on tangible common equity of 19.8%
- Returned 69% of Q2 earnings to shareholders through dividends and share buybacks
- Year-over-year positive operating leverage
- Net interest income grew 4.9% year-over-year (4.1% on a taxable-equivalent basis)
- Total noninterest income grew 2.8% year-over year
- Payment services revenue grew 5.3%
- Trust and investment management fees increased 5.5%
- Mortgage banking revenue decreased 9.9%
- Nonperforming assets decreased 19.1% on a year-over-year basis and 9.4% on a linked quarter basis
Read the full financial earnings report via US Bank here.
