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Mar 31, 2020
US Bancorp Q1 2020 Earnings Report
Net income decreased due to an increase in the provision for credit losses driven by the impact of COVID-19, despite revenue growth and expense management.
Key Takeaways
U.S. Bancorp reported a net income of $1,171 million for Q1 2020, a 31.1% decrease compared to Q1 2019. The decrease was primarily due to a significant increase in the provision for credit losses, reflecting the deteriorating economic conditions caused by the COVID-19 pandemic. Despite these challenges, the company saw growth in noninterest income and managed its liquidity effectively.
Net income attributable to U.S. Bancorp was $1,171 million, down 31.1% year-over-year.
Diluted earnings per common share were $0.72, compared to $1.00 in the first quarter of 2019.
Net revenue increased 3.5% year-over-year to $5,772 million.
Provision for credit losses increased to $993 million due to the economic impact of COVID-19.
Revenue by Segment
Forward Guidance
This press release contains forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially from those anticipated due to the COVID-19 pandemic and other various factors.
Positive Outlook
- Not available in the provided document.
Challenges Ahead
- The COVID-19 pandemic is adversely affecting U.S. Bancorp, its customers, counterparties, employees, and third-party service providers.
- Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities.
- Changes to statutes, regulations, or regulatory policies or practices could affect U.S. Bancorp in substantial and unpredictable ways.
- U.S. Bancorp’s results could also be adversely affected by changes in interest rates; further increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans.
- U.S. Bancorp’s results could also be adversely affected by breaches in data security; failures to safeguard personal information; changes in customer behavior and preferences.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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