US Bancorp, the parent company of IBOS member US Bank, has reported a record net revenue of $5,920 million, net income of $1,908 million and diluted earnings per share of $1.15.
The net income attributable to US Bancorp was $1,908 million for Q3 2019, which was 5.1% higher than Q3 2018, and 4.8% higher than Q2 2019.
The increase in net income year-over-year was driven by total net revenue growth of 3.9% partially offset by noninterest expense growth of 3.3%. Net interest income increased 0.9% (0.8% on a taxable-equivalent basis), mainly a result of loan growth and higher yields on reinvestment of securities, partially offset by the yield curve and deposit and funding mix. Noninterest income increased 8.1% compared with a year ago, driven by growth in payment services revenue, commercial products revenue, mortgage banking revenue and other noninterest income, partially offset by a decline in deposit service charges. Noninterest expense increased 3.3% primarily due to higher personnel expense, in part due to higher fee revenue production in mortgage and capital market activities, and higher technology investment costs in support of business growth.
Below are US Bancorp’s Q3 2019 financial highlights:
• Net income of $1,908 million and diluted earnings per common share of $1.15
• Industry leading return on average assets of 1.57% and return on average common equity of 15.3%
• Return on tangible common equity of 19.4%
• Returned 80% of 3Q earnings to shareholders through dividends and share buybacks
• Noninterest income grew 5.0% on a linked quarter basis and 8.1% year over year
• Total net revenue grew 3.9% year-over-year with positive operating leverage of 0.6% on a year-over-year basis
• Average total loans grew 1.1% on a linked quarter basis and 4.0% year-over-year
Access the full Q3 2019 via US Bank here.