In the third quarter, we reported diluted earnings per share of $1.03, and generated total net revenue of $6.9 billion. The quarter was highlighted by strong growth in net interest income, good momentum across several fee business initiatives, and continued expense discipline, which supported modest, positive operating leverage on an adjusted basis compared with the third-quarter of last year. Our return on tangible common equity was 17.9% this quarter.
— Andy Cecere
03Detailed Report
USB-PS
Company USB-PS
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
US Bancorp Depositary Shares (USB-PS) delivered a resilient Q3 2024 performance characterized by a solid rise in net interest income and margin expansion, supported by disciplined deposit pricing and asset mix post a 50 bp Federal Reserve rate cut. Diluted EPS reached $1.03 with total net revenue of $6.9 billion, reflecting strength in fee-based businesses and ongoing expense discipline. Management highlighted a 7 bp QoQ NIM expansion to 2.74% and a 2.8% QoQ increase in taxable equivalent net interest income to roughly $4.17 billion, underscoring the benefits of asset repricing, card-related momentum, and portfolio actions. The quarter also featured $119 million of after-tax net security losses from securities rebalancing, partially offset by tax benefits, and a continued focus on liquidity, capital accretion, and risk management.
The balance sheet remained robust: common equity tier 1 (CET1) at 10.5% (up 20 bps QoQ), tangible book value per share at $24.71 (up 6.7% QoQ; +18.5% YoY), and a well-capitalized liquidity position. Asset quality held steady, with an NCO ratio of 0.60% and NPA ratio around 0.49% of loans and real estate, while the allowance for credit losses stood at $7.9 billion (2.1% of period-end loans).
Guidance reinforces a constructive 2024 close and an aspirational 2025 path: fourth-quarter net interest income is expected to be relatively stable versus the current quarter, with full-year 2024 NII at the high end of the $16.1–$16.4 billion range. Non-interest income is projected to grow in the mid-single digits for the year, while non-interest expense is guided to about $16.8 billion. Management signaled ongoing capital accretion of roughly 20–25 basis points per quarter and a modest near-term share repurchase program. The bank intends to pursue organic growth opportunities, deepen client relationships, and advance digital/payments initiatives (including Southeast expansion and partnerships) while deemphasizing large-bank M&A given current market conditions. Investors should monitor rate cuts' continuation, deposit pricing dynamics, loan growth, and the pace of operating leverage expansion into 2025.
Key Performance Indicators
Revenue
Increasing
10.78B
QoQ: -0.15% | YoY: 2.53%
Gross Profit
Decreasing
6.28B
58.20% margin
QoQ: 0.10% | YoY: -3.22%
Operating Income
Increasing
2.07B
QoQ: 0.78% | YoY: 5.98%
Net Income
Increasing
1.71B
QoQ: 6.92% | YoY: 12.54%
EPS
Increasing
1.03
QoQ: 6.19% | YoY: 13.19%
Revenue Trend
Margin Analysis
Financial Highlights
Key quarterly metrics (USD, unless stated):
- Diluted earnings per share (EPS): $1.03.
- Net income: $1.714 billion.
- Total net revenue (management commentary): $6.9 billion; Revenue reported in filings shows $10.784 billion (differences reflect instrument classification and consolidation methods).
- Net interest income (TE basis): ~$4.17 billion, up 2.8% QoQ.
- Net interest margin (NIM): 2.74%, up 7 bps QoQ.
- Non-interest income: ~$2.7 billion, including $119 million of net security losses from investment portfolio rebalancing.
- Operating expenses (GAAP/adjusted): ~$4.2 billion; flat QoQ, down 1.0% YoY on an adjusted basis.
- Efficiency ratio: 60.2% (improved QoQ).
- CET1 ratio: 10.5% (up 20 bps QoQ).
- Tangible book value per share: $24.71 (up 6.7% QoQ; +18.5% YoY).
- Average deposits: $509 billion; average loans: $374 billion (QoQ modest declines).
- Credit quality: Allowance for credit losses $7.9 billion (2.1% of period-end loans). NCO: 0.60% (up 2 bps QoQ). NPA to loans/RE: 0.49%; reserve adequacy remains intact.
- Cash flow (CFO): Net cash provided by operating activities ~$972 million; free cash flow ~$972 million; cash and cash equivalents at period end: $73.56 billion.
- Share count: Weighted-average diluted shares ~1.561 billion.
Notes on YoY/QoQ: Core fee components showed strength in Trust & Investment Management, Commercial Products, Mortgage Banking, and Payments; NIM expanded QoQ driven by asset mix and pricing actions; the company delivered positive operating leverage in Q3 (~30 bps) with expectations for further leverage in Q4 and into 2025. Cash flow remained solid, underpinning capital returns and balance sheet resilience.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
10.78B
2.53%
-0.15%
Gross Profit
6.28B
-3.22%
0.10%
Operating Income
2.07B
5.98%
0.78%
Net Income
1.71B
12.54%
6.92%
EPS
1.03
13.19%
6.19%
Key Financial Ratios
Gross Profit Margin
Excellent
75.00%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
19.20%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
15.90%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
0.25%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.91%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
6.91
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
High Risk
1.33
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
4.98x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Undervalued
0.58x
Trading below book value, potential value opportunity or distressed
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