Q2 2024 US Bancorp Earnings Call Transcript
Key Points
- U.S. Bancorp (USB) reported diluted earnings per share of $0.97, excluding a one-time FDIC special assessment charge, resulting in $0.98 per share.
- Net interest income increased, supported by improved spread income and growth in fee-based businesses.
- Average total deposits increased by 2.2%, with continued growth in consumer deposits despite industry headwinds.
- The CET1 capital ratio increased by 30 basis points from the prior quarter and 120 basis points from last year, ending the quarter at 10.3%.
- Non-interest expense, as adjusted, decreased both on a linked-quarter and year-over-year basis, benefiting from cost synergies with Union Bank and prudent expense management.
- Non-performing assets increased by approximately 3.7% linked quarter, reflecting a slower pace of change.
- The ratio of non-performing assets to loans and other real estate increased to 49 basis points from 48 basis points in the previous quarter.
- Net charge-off ratio increased by 5 basis points from the first quarter, with expectations to approach 60 basis points in the second half of the year.
- Average non-interest-bearing deposits decreased by 1.6% on a linked-quarter basis, indicating a continued emphasis on relationship-based deposit generation.
- Elevated deposit levels and higher on-balance sheet liquidity drove a 3-basis point decline in net interest margin to 2.67%.
Welcome to the US Bancorp second quarter 2024 earnings conference call (Operator Instructions) Again, this call will be recorded and available for replay beginning today at approximately 10 AM Central Time. I will now turn the conference call over to George Andersen, Senior Vice President and Director of Investor Relations for US Bancorp.
Thank you, Krista, and good morning, everyone. Today, I'm joined by our Chairman and CEO, Andy Cecere; Vice Chair and CAO, Terry Dolan; and Senior Executive Vice President and CFO, John Stern. Together with their prepared remarks, Andy and John will be referencing a slide presentation. A copy of the presentation, our earnings release and supplemental analyst schedules can be found on our website at usbank.com.
Please note that any forward-looking statements made during today's call are subject to risk and uncertainty. Factors that could materially change our current forward-looking assumptions are described on page 2 of today's presentation, our press
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