Despite margin pressure, US Bank Q3 2019 represents record revenue, net income and earnings per share in the third quarter.
For the quarter to end September, US Bank posts net income of $1.91bn, up by 5.1% year-over-year.
Over the same period, total revenue rises by 3.9% to $5.92bn.
Other notable highlights include a 20 basis points y-o-y fall in the US Bank cost-income ratio to 53.3%.
On the other hand, margin pressure results in a 13 basis points fall in the net interest income to 3.02%.
This is primarily due to impacts of the yield curve, the deposit and funding mix and higher cash balances.
US Bank Q3 2019: loans +4%, deposits +6%
Total loans rise by 4% y-o-y to $292.4bn. Meantime, average total deposits rise by 6% to $349.9bn.
Credit quality remains relatively stable on a linked quarter and year-over-year basis. US Bank’s provision for credit losses for the third quarter rises by 7% y-o-y to $367m. The increase primarily reflects loan growth.
In the third quarter, US Bank returned 80% of its earnings to shareholders through dividends and share buybacks.
Andy Cecere, chairman, president and CEO US Bank says: “Third quarter loan and deposit growth were solid. Momentum in our core fee businesses was supported by strong sales and volume growth.
“Mortgage revenue was particularly robust this quarter. This reflects both market conditions and the benefits of the investments we have made in our retail platform over the past several years. As we head into the final quarter we feel good about our opportunity to gain market share across our franchise.”
US Bank Q3 2019: digital highlights
The bank ends the third quarter with 72% of its customers digitally active up from 70% a year ago.
More than one half of US Bank customers are now active m-banking users (51%) up from 45% a year ago.
In the third quarter, 34% of total loans sales are now sold digitally, up from 28% a year ago.
For the year to date, the US Bank share price is up by 19.6%.