US Bancorp Depositary (USB-PS) Q2 2024 Earnings Report

US Bancorp Depositary Shares (USB-PS) reported a solid Q2 2024, delivering a diluted EPS of $0.97 (adjusted $0.98 excluding a $0.01 FDIC special assessment) on revenue of $10.8 billion. Management highlighted a meaningful uptick in net interest income (NII) and continued growth in fee-based businesses, supported by prudent expense management, credit-quality stabilization, and ongoing capital accretion. The quarter showcased a diversified revenue mix with fee income representing roughly 40%+ of net revenue, deposit growth of 2.2% QoQ, and a tangible book value per share of $23.15 (+2.8% QoQ). The company ended the quarter with a CET1 ratio of 10.3% (+30 bps QoQ, +120 bps YoY), underscoring robust capitalization even after CCAR stress-test considerations.

Looking ahead, USB-PS maintains guidance aligned with prior expectations: Q3 2024 NII (FTE) expected to be relatively stable to Q2, full-year 2024 NII guidance of $16.1–$16.4 billion, mid-single-digit growth in noninterest income, and full-year noninterest expense of $16.8 billion or lower. Management highlighted a continued focus on balance-sheet optimization, including securities runoff and deposit management, while signaling potential capital-actions updates at the September Investor Day contingent on Basel III endgame clarity and CCAR outcomes. Investors should monitor deposit beta and rate environment as primary drivers of NII volatility, alongside the realized gains from fee-based businesses and progress on integration synergies from Union Bank.