US Bancorp : U.S. Bancorp reports fourth quarter and full year 2020 results

Highlights

• Record full year revenue of $23.3 billion
• Full year net income of $5.0 billion and diluted earnings per share of $3.06
• Common Equity Tier 1 capital ratio of 9.7% and strong levels of liquidity

Full financial details

Full financial details are available here.

CEO commentary

U.S. Bancorp Chairman, President and CEO Andy Cecere said, 'Our fourth quarter and full year results highlighted the value of our diversified business model, which allowed us to deliver industry-leading results for our shareholders despite the economic headwinds the entire banking industry faced. This was an extraordinary year that brought both challenges and opportunities. I'm proud of how we came together to support our customers and communities as they faced various individual obstacles brought on by COVID-19 and other global issues. As we look ahead to 2021, I'm confident in our ability to create shareholder value as we continue to invest in our digital capabilities, technology and people to drive revenue growth and efficiency improvement. I want to thank all our employees for being flexible, for being resilient, and for bringing our core values to life for the benefit of our customers every day.'

In the spotlight

December 2020 stress test: The Company's results for the December 2020 stress test reflected the strength of its balance sheet, its diverse businesses and strong financial discipline. Based on the results, the Company remains subject to the minimum stress capital buffer of 2.5 percent. The Company also expects to maintain its current quarterly dividend of $0.42 per common share and begin repurchasing common shares in the first quarter of 2021 under a previously announced $3 billion common stock repurchase program.

Improving digital capabilities to serve customers: The U.S. Bank Mobile App was ranked No. 1 in customer service features in Business Insider Intelligence's fourth annual US Mobile Banking Competitive Edge Study. In addition, S&P Global's 2020 US Mobile Banking Market Report found that U.S. Bank had the most features in its app of any national or large regional bank, tied for first with one other bank.

Person of the year: U.S. Bank's Chief Diversity Officer, Greg Cunningham, was recognized by Twin Cities Business Magazine as one of three top business leaders following the themes of three significant happenings in 2020, which included economic challenges, COVID-19 and calls for equity. Greg leads the Company's cultural and economic growth through diversity, equity and inclusion priorities.

Acquisition of debt servicing and securities custody services portfolio: U.S. Bank announced an agreement to acquire the Debt Servicing and Securities Custody Services client portfolio of MUFG Union Bank. Under the terms of this transaction, U.S. Bank will acquire approximately 600 client relationships, representing $320 billion in assets under custody and administration. This transaction builds on U.S. Bank's position as a leading provider of corporate trust, institutional trust and fund custody services, as well as increases its presence on the West Coast.

Contact

Jennifer Thompson, U.S. Bank Investor Relations
612.303.0778; [e-mail]

Jeff Shelman, U.S. Bank Public Affairs & Communications
612.422.1423; [e-mail]