U.S. Bancorp Receives No Objection to Its 2018 Capital Plan
June 28 2018 - 4:37PM
Business Wire
U.S. Bancorp today announced that the Federal Reserve did not
object to the company’s 2018 Capital Plan following its conclusion
and assessment of the 2018 Comprehensive Capital Analysis and
Review (CCAR).
As a result of the Federal Reserve’s non-objection to U.S.
Bancorp’s plan to increase its dividend, the Company will recommend
in July that its board of directors approve an increase to the
quarterly dividend beginning with the third quarter dividend
payable in October 2018. The Company expects to recommend a third
quarter dividend of $0.37 per common share, a 23 percent increase
over the current dividend. At this quarterly dividend, the annual
dividend will be equivalent to $1.48 per common share.
Additionally, the board of directors of U.S. Bancorp has
approved a four-quarter authorization to repurchase up to $3.0
billion of its outstanding stock, beginning July 1, 2018, to
replace the current four-quarter authorization, which expires on
June 30, 2018. U.S. Bancorp’s common stock may be repurchased
through June 2019 in the open market or in privately negotiated
transactions. The acquired common shares will be held as treasury
shares and may be reissued for various corporate purposes.
“We are pleased to receive the Federal Reserve Board’s
non-objection to our stress test submission, which allows us to
increase our capital return to shareholders,” said Andy Cecere,
chairman, president and chief executive officer of U.S. Bancorp.
“We are committed to creating value for our shareholders and our
long-term objective to return 60 to 80 percent of earnings to
shareholders. This result demonstrates U.S. Bancorp’s strong
financial profile and its ability to withstand even the most
adverse economic conditions.”
About U.S. Bank
U.S. Bancorp, with 74,000 employees and $460
billion in assets as of March 31, 2018, is the parent
company of U.S. Bank, the fifth-largest commercial bank
in the United States. The Minneapolis-based bank blends
its branch and ATM network with mobile and online tools that allow
customers to bank how, when and where they prefer. U.S.
Bank is committed to serving its millions of retail, business,
wealth management, payment, commercial and corporate, and
investment services customers across the country and around the
world as a trusted financial partner, a commitment recognized by
the Ethisphere Institute naming the bank a 2018
World’s Most Ethical Company. Visit U.S. Bank
online or follow on social media to stay up to date
with company news.
Forward-looking Statements
The following information appears in accordance with the Private
Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements about
U.S. Bancorp. Statements that are not historical or current facts,
including statements about beliefs and expectations, are
forward-looking statements and are based on the information
available to, and assumptions and estimates made by, management as
of the date hereof. The forward-looking statements contained in
this press release include, among other things, anticipated U.S.
Bancorp capital distributions by dividends and share repurchases.
There can be no assurance that U.S. Bancorp will return this or any
amount of capital to its shareholders in the form of dividends or
share repurchases in the future.
Forward-looking statements involve inherent risks and
uncertainties, and important factors could cause actual results to
differ materially from those anticipated. A reversal or slowing of
the current economic recovery or another severe contraction could
adversely affect U.S. Bancorp’s revenues and the values of its
assets and liabilities. Global financial markets could experience a
recurrence of significant turbulence, which could reduce the
availability of funding to certain financial institutions and lead
to a tightening of credit, a reduction of business activity, and
increased market volatility. Stress in the commercial real estate
markets, as well as a downturn in the residential real estate
markets could cause credit losses and deterioration in asset
values. In addition, changes to statutes, regulations, or
regulatory policies or practices could affect U.S. Bancorp in
substantial and unpredictable ways. U.S. Bancorp’s results could
also be adversely affected by deterioration in general business and
economic conditions; changes in interest rates; deterioration in
the credit quality of its loan portfolios or in the value of the
collateral securing those loans; deterioration in the value of its
investment securities; legal and regulatory developments;
litigation; increased competition from both banks and non-banks;
changes in customer behavior and preferences; breaches in data
security; effects of mergers and acquisitions and related
integration; effects of critical accounting policies and judgments;
and management’s ability to effectively manage credit risk, market
risk, operational risk, compliance risk, strategic risk, interest
rate risk, liquidity risk and reputational risk.
For discussion of these and other risks that could cause actual
results to differ from expectations, refer to U.S. Bancorp’s
Annual Report on Form 10-K for the year ended December 31,
2017, on file with the Securities and Exchange Commission,
including the sections entitled “Corporate Risk Profile” and “Risk
Factors” contained in Exhibit 13, and all subsequent filings with
the Securities and Exchange Commission under Sections 13(a), 13(c),
14 or 15(d) of the Securities Exchange Act of 1934. However,
factors other than these also could adversely affect U.S. Bancorp’s
results, and the reader should not consider these factors to be a
complete set of all potential risks or uncertainties.
Forward-looking statements speak only as of the date hereof, and
U.S. Bancorp undertakes no obligation to update them in light of
new information or future events.
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version on businesswire.com: https://www.businesswire.com/news/home/20180628006324/en/
U.S. BancorpInvestors:Jennifer Thompson, 612-303-0778U.S.
Bank Investor Relationsjen.thompson@usbank.comorMedia:Stacey
Wempen, 612.303.7620U.S. Bank Public Affairs and
Communicationsstacey.wempen@usbank.com
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