U.S. Bancorp earnings disappoint and stock price falls
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On April 17th, 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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