US Bancorp (NYSE: USB) released its FY21 fourth-quarter earnings report on Wednesday before the market opened. They reported a net income of $1,673 million and diluted earnings per common share of $1.07 for 4Q21.
Return on average assets of 1.16% and return on average common equity of 13.0% for 4Q21.
Net revenue decline driven by lower mortgage banking revenue, partially offset by higher trust and investment management fees.
Strong deposit growth supported related investment portfolio and cash balance strategies to optimize asset sensitivity going into 2022.
While dilutive to NIM, this was a net benefit to net interest income. This elevated liquidity drove NIM to decline 6 basis points while lower Paycheck Protection Program “PPP” loan fees accounted for 6 basis points decline.
Net charge-off ratio of 0.17% in 4Q21 compared with 0.20% in 3Q21 and 0.58% in 4Q20.
Average total loans grew 2.0% on a linked quarter basis.
“The value of our diversified business model was evident in 2021 results. Credit quality continues to be particularly strong with our net charge-off ratio at a historical low of 17 basis points in the fourth quarter. We experienced solid loan growth from new business originations and increased line utilization. Deposit growth was very strong this quarter increasing $18.4 billion or 4.3% compared with the third quarter, which supported our loan growth and provided the opportunity for investment strategies that were both accretive to fourth quarter net interest income and maintains asset sensitivity for future growth in a rising rate environment. As we start a new year, we are encouraged by the momentum building in each of our lines of business. The investments we have made in our digital transformation and payments ecosystem initiatives will continue to enable customer and revenue growth and we expect continued momentum in customer spend activity and loan growth. In the fourth quarter we closed on the acquisition of TravelBank, providing tech-led expense and travel management solutions for mid-size companies, and the PFM acquisition, which increases assets under management. I want to thank our U.S. Bank employees for all they do, and we are looking forward to welcoming Union Bank employees to our team when we close on the acquisition later this year.”Andy Cecere, Chairman, President and CEO, U.S. Bancorp
EPS – $1.1
Revenue – $5.7 billion
US Bancorp reported earnings per share of $1.30 and total revenue of $5.9 billion in the third quarter, released on October 14, 2021. Their linked-quarter pre-tax pre-provision net revenue growth of 2.7 percent was driven by continued momentum in the fee businesses, growth in average loan balances, and a continued focus on expense management, which resulted in positive operating leverage.
This quarter, the company released $310 million in loan loss reserves, bolstered by a positive economic outlook and better-than-expected credit quality metrics.
Now, turning to capital. On September 30, their book value per share was $32.22, which was 1.5 percent higher than on June 30. On September 30, the firm’s CET1 ratio was 10.2 percent.
USB announced on September 21, 2021, that it has entered into a definitive agreement with Mitsubishi UFJ Financial Group (NYSE: MUFG) to acquire MUFG Union Bank’s core regional banking franchise, in a transaction that will bring together two premier organizations with a focus on being the leader in serving customers and communities in California, Washington, and Oregon.
U.S. Bancorp, the parent company of U.S. Bank, has acquired TravelBank, a San Francisco-based fintech company that provides an all-in-one, tech-driven expense, and travel management solution.
TravelBank is easy to use for employees and helps businesses control and track expenses, automate processes, streamline approvals and reporting and ensure compliance with company
In the United States, US Bancorp, a financial services holding company, offers various financial services.
Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support are its business segments.
Depository services, such as checking accounts, savings accounts, and time certificate contracts; lending services, such as traditional credit products; credit card services, lease financing, and import/export trade, asset-backed lending, agricultural finance, and other products are available.
As of December 31, 2020, the company’s products and services were available through a network of 2,434 banking offices, primarily in the Midwest and West regions of the United States, as well as online services and mobile devices; and it operated a network of 4,232 ATMs. The company was founded in 1863 and is headquartered in Minneapolis, Minnesota.