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Mar 31, 2023
US Bancorp Q1 2023 Earnings Report
Reported a strong first quarter performance driven by revenue growth and the acquisition of MUFG Union Bank.
Key Takeaways
U.S. Bancorp reported a net income of $1.698 billion and diluted earnings per common share of $1.04 for Q1 2023. The results reflect the impact of the MUFG Union Bank acquisition and rising interest rates on earning assets.
Net income attributable to U.S. Bancorp was $1,698 million.
Diluted earnings per common share were $1.04.
Net revenue of $7,175 million including $4,668 million of net interest income and $2,507 million of noninterest income.
Net interest margin of 3.10%.
Revenue by Segment
Forward Guidance
U.S. Bancorp expects the CET1 ratio to expand over the next several quarters as they realize the accretive benefit of the recently-acquired Union Bank. The integration is proceeding as planned, and they continue to target conversion over the upcoming Memorial Day weekend.
Positive Outlook
- MUB transition progressing as planned and we remain on track for conversion over Memorial Day weekend
- Tangible common equity accretion of 7.5% in 1Q23
- Robust liquidity profile highlighted by total available liquidity of $315 billion and a year-end 2022 Liquidity Coverage Ratio (LCR) of 122%
- High quality deposit base with insured deposits accounting for 51% of total deposits. Of the uninsured deposits, approximately 80% are retail customers or operational in nature.
- Deposit balances were relatively stable from March 8, 2023, to the end of the quarter
Challenges Ahead
- Deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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