US Bank Q2 2019 results beat analyst forecasts with a 4% year-on-year rise in net income to $1.82bn.
For the year ago quarter US Bank posted net income of $1.75bn.
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The US Bank Q2 2019 results are boosted by strong lending and deposits growth.
Total loans rise by 3.8% y-o-y to $289.2bn. At the same time, total deposits are up by 3.1% to $345.2bn.
Total assets rise by 4.4% y-o-y to $481.7bn.
Other highlights include a fall in the bank’s cost-income ratio. It falls by 50 basis points from a year ago to 54.3%.
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By GlobalDataUS Bank Q2 2019: margin pressure
Less positive metrics include the bank’s net interest margin of 3.13% down by 3 basis points from the prior quarter. On a year-on-year basis the net interest margin is flat.
This reflects the impacts of higher short-term interest rates, the reinvestment of securities and loan portfolio mix. This is offset by the adverse impact of the flattening yield curve as well as deposit and funding mix shifts.
“We delivered strong results this quarter and we feel good about underlying momentum heading into the second half. In the second quarter, we delivered a return on tangible common equity of 19.2%. And we returned 79% of our earnings through dividends and share buybacks,” says Andy Cecere, Chairman, President, CEO, US Bancorp.
“Despite a more challenging interest rate environment, loan and deposit trends were healthy.”
US Bank Q2 2019: positive digital metrics
The bank ends the quarter with 72% of total active customers digitally active. This is up from 70% a year ago. At the same time active mobile banking customers increase to 50% from 44% of all active customers a year ago.
Moreover, totally digital loan sales in the second quarter rise to 34% from 25% a year ago.
US Bank is the fifth largest US bank by assets. The bank operates a branch network of 2,973 outlets across 25 states. US Bank’s branch network peaked at 3,238 outlets in 2014.
