USB Stock Increased 3.21%: Why It Happened

By Amit Chowdhry ● Jul 15, 2021
  • The stock price of US Bancorp (NYSE: USB) increased by 3.21% today. This is why it happened.

The stock price of US Bancorp (NYSE: USB) increased by 3.21% today. Investors responded positively to the company’s second-quarter 2021 results. These are some of the highlights:

— Net income of $1.982 billion and diluted earnings per common share of $1.28

— Return on average assets of 1.44% and return on average common equity of 16.3%

— Net revenue of $5.783 billion, including $3,164 million of net interest income and $2,619 million of noninterest income

— Returned 79% of 2Q earnings to shareholders through dividends and share buybacks

— Average total earning assets growth of 1.3% year-over-year

— Average total deposits growth of 6.4% year-over-year

— Net charge-off ratio of 0.25% in 2Q21 compared with 0.31% in 1Q21 and 0.55% in 2Q20

— Allowance for credit losses declined $350 million during the quarter given improving economic outlook and credit trends

— Nonperforming assets decreased 11.9% on a linked quarter basis and 9.7% year-over year

— CET1 capital ratio increased to 9.9% at June 30, 2021, compared with 9% at June 30, 202

KEY QUOTE:

“Our second quarter results were indicative of steadily improving economic conditions and continued execution of our strategic growth plan across our business lines and markets. As of late June, total sales volumes for each of our three payments businesses exceeded 2019 levels for the first time since the beginning of the pandemic. For a second consecutive quarter, credit quality was better than expected as our net charge-off ratio set another record low. Our capital and liquidity positions remain strong and following the results of the Federal Reserve’s stress test in late June we announced that we will recommend that our Board of Directors approve a 9.5% increase in our common dividend payable in the third quarter. As we head into the second half of 2021, we are well positioned to benefit from improving economic conditions; however, we are even more excited about the significant secular growth opportunities we see driving industry leading returns over the longer term. I want to thank our employees for their continued dedication to help our clients, communities, and shareholders.”

— Andy Cecere, Chairman, President and CEO, U.S. Bancorp

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.