U.S. Bancorp reported record net revenue and net income during the third quarter of this year.
The bank reported net revenue to $5.61 billion, a record high and up 4.1% from last year’s $5.39 billion. This is also up 2.2% from $5.49 billion in the second quarter this year.
“We remain deeply committed to value creation for our shareholders, and in the third quarter, our dividend increased by 7.1%,” said Andy Cecere, U.S. Bancorp President and CEO. “Overall, we returned 79% of our earnings to shareholders through dividends and share buybacks. As we move into the fourth quarter, we plan to build on the momentum we have established.”
U.S. Bancorp also reported a new high in net income with nearly $1.57 billion, up 3.8% from $1.51 billion in the second quarter and up 3.5% from $1.52 billion last year.
This translated to an increase of 3.5% from last quarter’s diluted earnings per common share of $0.85 to $0.88 per share in the third quarter. This is up 4.8% from last year’s $0.84 per share, and also an all-new high.
Despite the record-setting earnings report, noninterest income posted an annual loss of 0.9% driven by losses in mortgage banking revenue. This loss was primarily due to a drop off from last year’s strong refinancing activity.
However, the loss in noninterest income was partially offset by increases in trust and investment management fees, payment services revenue, treasury management fees and higher equity investment income.
“Our company is strong and we are well positioned for growth. We continue to be focused on delivering a great customer experience through our One Bank initiatives, optimization of our businesses, data analytics, process improvements and product delivery,” Cecere said.
“We are investing in innovation and technology to drive growth and improve efficiencies in the future,” Cecere added. “Our strong revenue base and financial discipline positions us for growth heading into the next year.”