U.S. Bancorp Reports Record Q2 Earnings
U.S. Bancorp reported Q2/14 record net income of $1,495 million compared to $1,484 million in the second quarter of 2013. The bank noted that total net revenue of $5.2 billion was up 4.9% from $4.9 billion a year earlier. Both net interest income and noninterest income of $2.7 billion and $2.4 billion were up 2.7% and 7.4%, respectively, versus Q2/13.
The bank also noted that its Q2 provision charge of $324 million was down $38 million from the same quarter in 2013.
The bank said Q2/14 included two previously disclosed notable items. The company reached a settlement with the U.S. Department of Justice to resolve an investigation relating to the endorsement of mortgage loans under the FHA’s insurance program for $200 million. In addition, prior to the FHA DOJ settlement, the company sold 3.0 million shares of the Class B common stock of Visa resulting in a net pretax gain of $214 million. Combined, these notable items had no impact to diluted earnings per common share for the current quarter.
U.S. Bancorp chairman, president and chief executive officer Richard K. Davis said, “Today, U.S Bancorp reported record second quarter earnings of $1.5 billion, or $.78 per diluted share, which reflects the overall strength and diversity of our business. Once again, we delivered strong performance across key metrics with returns on average assets and average common equity of 1.60% and 15.1%, respectively, and industry-leading efficiency.”
Davis continued, “Average loan growth continued to be strong at 6.8% year-over-year and 2.0% on a linked quarter basis. Total commercial loans and commercial real estate loans were both strong, up 12.4% and 6.9%, respectively, compared with the prior year quarter. Growth in both of these categories highlights our company’s ability to deepen and grow customer relationships, as well as gain new customers and market share. Line utilization turned slightly positive after an extended period of decline, a potentially encouraging sign for loan growth going forward.”
To read the entire U.S. Bancorp news release, click here.