U.S. Bancorp (NYSE:USB) Q2 2024 Earnings Conference Call July 17, 2024 8:00 AM ET

Company Participants

George Andersen - SVP & Director, IR
Andrew Cecere - Chairman & CEO
John Stern - SEVP & CFO

Conference Call Participants

Scott Siefers - Piper Sandler
Ebrahim Poonawala - Bank of America
Betsy Graseck - Morgan Stanley
Erika Najarian - UBS
Ken Usdin - Jefferies
Mike Mayo - Wells Fargo
Gerard Cassidy - RBC Capital Markets
Matt O'Connor - Deutsche Bank
Vivek Juneja - JPMorgan
John Pancari - Evercore ISI
Chris Kotowski - Oppenheimer
Saul Martinez - HSBC

Operator

Welcome to the U.S. Bancorp Second Quarter 2024 Earnings Conference Call. Following a review of the results, there will be a formal question-and-answer session. [Operator Instructions] This call will be recorded and available for replay beginning today at approximately 10 A.M. Central Time.

I will now turn the conference call over to George Andersen, Senior Vice President and Director of Investor Relations for U.S. Bancorp.

George Andersen

Thank you, Krista, and good morning, everyone.

Today, I'm joined by our Chairman and CEO, Andy Cecere; Vice Chair and CAO, Terry Dolan; and Senior Executive Vice President and CFO, John Stern. Together with their prepared remarks, Andy and John will be referencing a slide presentation. A copy of the presentation, our earnings release, and supplemental analyst schedules can be found on our website at usbank.com.

Please note that any forward-looking statements made during today's call are subject to risks and uncertainty. Factors that could materially change our current forward-looking assumptions are described on Page 2 of today's presentation, our press release, and in reports on file with the SEC. Following our prepared remarks, Andy, Terry, and John will take any questions that you have.

I will now turn the call over to Andy.

Andrew Cecere

Thanks, George. Good morning, everyone, and thank you for joining our call.

I'll begin on Slide 3. In the second quarter, we reported diluted earnings per share of $0.97, which included $0.01 per share of notable item related to the FDIC special assessment. Excluding this one-time charge, we delivered earnings per share of $0.98. This quarter was highlighted by an increase in net interest income, continued fee income growth, prudent expense management, credit quality stabilization, and strong capital accretion. Notably, our return on tangible common equity increased to 18.6% on an adjusted basis.

Turning to Slide 4. Revenue growth for the quarter was supported by improved spread income and well -- as well as continued growth across many of our fee-based businesses. On both a linked-quarter and year-over-year basis, non-interest expense as adjusted was down benefiting from cost synergies with Union Bank, prudent expense management, and multiyear investments across the business that have resulted in greater efficiencies and enhanced operating effectiveness.