U.S. Bancorp Q1 2024 Net Income – $1,518M

By Tamara Parker • Wednesday, April 17 10:18 • Permanent Link

U.S. Bancorp has reported its first-quarter 2024 financial results, showcasing a net income of $1,518 million and diluted earnings per common share of $0.90, as adjusted for notable items. Notable items for the quarter, on a pretax basis, consisted of $155 million of merger and integration-related charges related to the acquisition of MUFG Union Bank and a $110 million charge for the increase in the Federal Deposit Insurance Corporation special assessment.

Net interest income on a taxable-equivalent basis was $4,015 million, a decrease of $127 million from the fourth quarter of 2023. The net interest margin in the first quarter of 2024 was 2.70%, compared with 3.10% in the first quarter of 2023 and 2.78% in the fourth quarter of 2023.

Average total loans for the first quarter of 2024 were $371,070 million, a decrease of 0.5% from the fourth quarter of 2023. The decrease was primarily due to lower total commercial loans (3.6%) and total other retail loans (18.5%), partially offset by higher credit card loans (9.3%).

Average total deposits for the first quarter of 2024 were $503,061 million, an increase of 0.1% from the fourth quarter of 2023. The decrease was primarily due to lower noninterest-bearing deposits (6.4%) and interest-bearing savings deposits such as money market savings (4.9%).

Noninterest income increased by 7.7% year-over-year and decreased by 1.4% on a linked quarter basis, as adjusted for notable items. Noninterest expense decreased 2.7% year-over-year and 0.2% on a linked quarter basis, as adjusted for notable items.

Return on average assets for the first quarter of 2024 was 0.93%, down from 1.03% in the first quarter of 2023. Return on average common equity was 10.0%, down from 14.1% in the first quarter of 2023. Return on tangible common equity was 15.1%, down from 22.0% in the first quarter of 2023.

As a result of these announcements, the company's shares have moved -4.0% on the market, and are now trading at a price of $39.36. For the full picture, make sure to review U.S. Bancorp's 8-K report.

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