Overview

• U.S. Bancorp reported Q2 adjusted earnings per share of $1.11, surpassing the $1.07 analyst estimate and lifting net income 13% to $1.82 billion.
• Total revenue rose 2% year over year to $7.004 billion, falling short of the $7.052 billion Street forecast and prompting a 3.7% drop in premarket shares.
• Expense discipline delivered 250 basis points of positive operating leverage and drove an efficiency ratio of 59.2% for the quarter.
• Noninterest income climbed to $2.92 billion on growth in payments, trust and capital markets services, but mortgage banking revenue declined 17%.
• The bank held a 10.7% common equity tier 1 ratio under a reduced 2.6% stress capital buffer and projected Q3 net interest income of $4.1 billion to $4.2 billion, fee income near $3 billion and operating expenses of $4.2 billion or less.