U.S. Bancorp earnings disappoint and stock price falls

On April 17^th, U.S. Bancorp reported its Q1 2024 financial results, before US markets opened this morning.

The results exceeded analysts’ expectations, but were still generally lackluster as compared with 2023.

The bank announced a net income of $1.5 billion, compared with a Q1 2023 net income of $1.8 billion and a Q4 2023 net income of $1.6 billion.

Earnings per share

Diluted earnings per common share were at $0.90, as adjusted for notable items, ahead of analysts’ expectations of a $0.84 EPS.

However, this was down from Q4’s EPS of $0.99 and an EPS of $1.16 in Q1 of 2023.

Net revenue for the quarter was at $7.1 billion, including $4,668 million of net interest income and $2,507 million of noninterest income.

This was down compared with Q1 of 2023, which boasted a net revenue of $7,175 million including $4,668 million of net interest income and $2,507 million of noninterest income.

Some good news

However, the company did have good news in the way of noninterest income and expenses.

During Q1, noninterest income increased 7.7% year-over-year and decreased 1.4% quarter-on-quarter, while noninterest expense decreased 2.7% year-over-year and 0.2% quarterly.   

Return on tangible common equity was at 17.4%, down significantly from 22% in Q1 of 2023.

Deposits up marginally

Upon publication of the results, U.S. Bancorp CEO Andy Cecere cited a “challenging interest rate environment and pressure on industry deposit levels”, but highlighted the fact that the bank “again saw growth in consumer deposits during the quarter” as a positive.

Q1 average total deposits increased 0.1% on a linked quarter basis to $503,061 million, up marginally from Q4’s $502,782 but below Q1 2023’s $510,324.

The U.S. Bancorp stock price

U.S. Bancorp shares were flat on Wednesday morning, but had fallen 1.06% to a stock price of $41.00 by close of markets yesterday.

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