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Dec 31, 2020
US Bancorp Q4 2020 Earnings Report
Reported fourth quarter and full year results, demonstrating resilience amidst economic challenges.
Key Takeaways
U.S. Bancorp reported a net income of $1,519 million and diluted earnings per share of $0.95 for Q4 2020. The results reflected the strength of the diversified business model, delivering industry-leading results despite economic headwinds. Full year revenue reached a record $23.3 billion, with net income of $4.959 billion.
Net income attributable to U.S. Bancorp was $1,519 million for the fourth quarter of 2020, 2.2 percent higher than the fourth quarter of 2019.
Diluted earnings per common share were $0.95 in the fourth quarter of 2020, compared with $0.90 in the fourth quarter of 2019.
Net revenue was $5,751 million, including $3,201 million of net interest income and $2,550 million of noninterest income in 4Q20.
The company's CET1 capital ratio increased to 9.7% at December 31, 2020, compared with 9.1% at December 31, 2019.
Forward Guidance
U.S. Bancorp anticipates continued investment in digital capabilities, technology, and people to drive revenue growth and efficiency improvement in 2021.
Positive Outlook
- Maintaining its current quarterly dividend of $0.42 per common share.
- Beginning repurchasing common shares in the first quarter of 2021 under a previously announced $3 billion common stock repurchase program.
- The company's results for the December 2020 stress test reflected the strength of its balance sheet, its diverse businesses and strong financial discipline.
- The company remains subject to the minimum stress capital buffer of 2.5 percent.
- U.S. Bank Mobile App was ranked No. 1 in customer service features in Business Insider Intelligence’s fourth annual US Mobile Banking Competitive Edge Study.
Challenges Ahead
- COVID-19 environment resulting in significantly lower interest rates and consumer and business spending activities.
- Changes in credit quality due to COVID-19.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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