- U.S. Bank on Wednesday reported $689 million in net income among its second-quarter earnings. That’s a 62.2% drop from last year’s second-quarter figure — $1.82 billion — and a 41.2% slide from the $1.17 billion the bank reported in this year’s first quarter.
- The bank set aside $1.7 billion as a provision for credit losses, a 75% increase over the previous quarter.
- Revenue for the nation’s largest regional bank stayed relatively flat, as a 5% increase in noninterest income year-over-year balanced out a 3.2% drop in net interest income.
The second quarter presented a dual challenge for U.S. Bank. It marked the first full three-month span to show the impact of the coronavirus, but the bank — more than most — felt reverberations from the May 25 killing of George Floyd in its hometown, Minneapolis, an event U.S. Bank CEO Andy Cecere noted in a statement Wednesday accompanying the earnings report.
"This tragedy has galvanized our entire company and prompted us to double down on our efforts to address social injustice and create opportunities that bridge gaps in our communities and help people achieve their potential," Cecere said.
U.S. Bank pledged last month to boost loans to Black-owned businesses by $100 million as part of the growing movement to narrow the racial wealth gap. Bank of America, PNC, PayPal, Netflix and the Royal Bank of Canada have also promised hundreds of millions of dollars toward similar efforts.
"While there is a long way to go, I am confident in our ability to drive change, make a difference and create value for all our constituents," Cecere said.
The coronavirus pandemic touched off a spike in deposits and loans, with the former jumping 16.8% year-over-year, and the latter climbing 10%.
"Our second quarter earnings results were reflective of a more challenging economic environment than we have seen in some time," Cecere said Wednesday. "However, our diversified business mix generated healthy fee revenue growth, expenses were essentially flat, and capital and liquidity positions ended the quarter in a strong position."