NYSE$USB

US Bancorp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported net income of $2.0 billion and EPS of $1.30.

U.S. Bancorp reported a net income of $2.0 billion, or $1.30 per share, and net revenue of $5.9 billion for the third quarter of 2021. The results were supported by continued momentum across fee businesses, a pick-up in loan growth, and credit quality exceeding expectations.

  • Net income of $2,028 million and diluted earnings per common share of $1.30.
  • Return on average assets of 1.45% and return on average common equity of 15.9%.
  • Net revenue of $5,890 million, including $3,197 million of net interest income and $2,693 million of noninterest income.
  • CET1 capital ratio increased to 10.2% at September 30, 2021, compared with 9.4% at September 30, 2020.

Headline financials

Total Revenue

$5.86B

Previous: $5.94B-1.3%
EPS (adj)

$1.30

Previous: $0.99+31.3%
Net Interest Margin

2.5%

Previous: 2.7%-5.2%
Return on Avg Assets

1.4%

Previous: 1.2%+23.9%
Return on Common Equity

15.9%

Previous: 12.8%+24.2%
Efficiency Ratio

58.4%

Previous: 56.6%+3.2%
Free Cash Flow

$2.03B

Previous: $1.58B+28.4%
Net Income

$2.03B

Previous: $1.58B+28.4%
Operating Income

$2.54B

Previous: $2.24B+13.5%
Gross Profit

$5.7B

Previous: $5.3B+7.5%
Cash & Equivalents

$63.9B

Previous: $44B+45.1%
Total Assets

$567B

Previous: $540B+5.0%

Revenue & EPS history

US Bancorp · Revenue · Quarterly

$5.86B

Q3 2021-1.3%vs Q3 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

US Bancorp · $5.11B total across 4 segments · Q3 2021

  • Consumer & Business
    $2.27B
  • Payment Services
    $1.56B
  • Corporate & Commercial
    $970M
  • Treasury & Corporate
    $309M

Forward guidance

U.S. Bancorp's outlook involves both positive and negative factors influencing its future performance.

Tailwinds

  • Acquisition of MUFG Union Bank’s core regional banking franchise for approximately $8 billion, including $5.5 billion in cash and approximately 44 million shares of U.S. Bancorp common stock.
  • Acquisition would add more than 1 million consumer customers and about 190,000 small business customers on the West Coast in addition to approximately $58 billion in loans and $90 billion in deposits.
  • The acquisition will provide benefits for both customers and the communities served by the combined organization through improved technology, expanded products and customer choice.
  • U.S. Bank Mobile App was ranked first among banking apps by industry benchmarking firm Keynova in its 3Q 2021 scorecard.
  • U.S. Bank and Mastercard have partnered on a new card for fleet-related expenses.

Headwinds

  • The COVID-19 pandemic is adversely affecting U.S. Bancorp, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is uncertain.
  • 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 proposed acquisition of MUFG Union Bank presents risks and uncertainties, including, among others: the risk that the cost savings, any revenue synergies and other anticipated benefits of the proposed acquisition may not be realized or may take longer than anticipated to be realized.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.0%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+2.2%

Avg return

30 days after

54%

39 / 72 earnings

Positive

+7.1%

Q2 2023

Best reaction

-11.2%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+0.8%-5.8%
Q3 2025-1.8%+2.5%+1.4%
Q2 2025+0.5%-0.9%+5.4%
Q1 2025-2.1%-2.1%+16.3%
Q4 2024-5.0%-3.1%-6.2%
Q3 2024+6.3%+2.0%+6.2%
Q2 2024+2.6%+4.0%-0.2%
Q1 2024-3.8%+0.1%+1.0%
Q4 2023-3.0%+1.0%+0.3%
Q3 2023-6.1%-10.4%+7.9%
Q2 2023+7.1%+7.4%+0.8%
Q1 2023-1.2%-6.8%-14.4%
Q4 2022+4.3%+4.6%+2.1%
Q3 2022+3.1%-0.3%+8.6%
Q2 2022+5.5%+6.3%+10.2%
Q1 2022+4.2%+4.5%-4.0%
Q4 2021-8.4%-8.7%-8.2%
Q3 2021-2.0%-0.2%-1.6%
Q2 2021+0.3%-1.6%+2.2%
Q1 2021+0.5%-2.4%+7.5%
Q4 2020-5.0%-4.8%+4.1%
Q3 2020+1.9%+1.4%+12.7%
Q2 2020+3.5%-2.0%+4.1%
Q1 2020-11.2%-4.3%-14.3%
Q4 2019-2.5%-2.2%-2.6%
Q3 2019+1.8%+4.5%+9.9%
Q2 2019+4.1%+4.3%-1.4%
Q1 2019+1.8%+1.8%+2.5%
Q4 2018+3.7%+4.7%+7.0%
Q3 2018+2.3%+0.9%+7.7%
Q2 2018+0.1%+1.1%+3.9%
Q1 2018-0.6%-0.9%-0.9%
Q4 2017-1.8%+0.2%-2.7%
Q3 2017-0.5%+0.5%-3.7%
Q2 2017+1.6%+2.2%+0.1%
Q1 2017+1.8%+3.5%+2.6%
Q4 2016+0.8%+1.3%+9.1%
Q3 2016+2.2%+2.3%+14.5%
Q2 2016+1.5%+1.7%+3.6%
Q1 2016+1.6%
Q4 2015-2.0%
Q3 2015+0.7%
Q2 2015+4.5%
Q1 2015-1.4%
Q4 2014+5.4%
Q3 2014+0.3%
Q2 2014-3.9%
Q1 2014-1.9%
Q4 2013-2.1%
Q3 2013+2.2%
Q2 2013-0.5%
Q1 2013-2.8%
Q4 2012-1.6%
Q3 2012+2.4%
Q2 2012+2.6%
Q1 2012+0.4%
Q4 2011-0.3%
Q3 2011+1.1%
Q2 2011-1.5%
Q1 2011+0.0%
Q4 2009-1.5%
Q4 2008-1.5%
Q4 2010-1.5%
Q2 2010-1.5%
Q3 2010-3.4%
Q1 2009+4.2%
Q1 2010+1.5%
Q4 2007+0.9%
Q3 2009+2.2%
Q3 2008+2.2%
Q2 2008-4.9%
Q2 2009-4.9%

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