U.S. Bancorp Receives No Objection to Its 2019 Capital Plan; Includes a Dividend Increase of 13.5 Percent
June 27 2019 - 4:34PM
Business Wire
U.S. Bancorp (NYSE: USB) (“the Company”) today announced that
the Federal Reserve Board did not object to its 2019 capital plan
following its annual assessment of the Company’s Comprehensive
Capital Analysis and Review (CCAR).
As a result, U.S. Bancorp will recommend in July that its board
of directors approve a quarterly dividend increase beginning with
the third quarter dividend payable in October 2019. The Company
expects to recommend a third quarter dividend of $0.42 per common
share, which is a 13.5 percent increase over the current dividend.
The result of this expected increase is an annual dividend
equivalent to $1.68 per common share.
The Company’s board of directors has approved a four-quarter
authorization to repurchase up to $3.0 billion of its outstanding
common stock, beginning July 1, to replace the current four-quarter
authorization, which expires on June 30. The stock may be
repurchased through June 2020 in the open market or in privately
negotiated transactions. The acquired shares will be held as
treasury shares and may be reissued for various corporate
purposes.
“Our goal is to create and deliver value to our shareholders,
and we continue to do so every day,” said Andy Cecere, chairman,
president and CEO of U.S. Bancorp. “The outcome of this year’s CCAR
exercise reflects our strong financial profile and our ability to
withstand adverse economic conditions. We continue to invest for
the future while increasing capital returns to shareholders. We are
pleased with the results.”
About U.S. Bank
U.S. Bancorp, with 74,000 employees and $476 billion in assets
as of March 31, 2019, is the parent company of U.S. Bank National
Association, the fifth-largest commercial bank in the United
States. The Minneapolis-based bank blends its relationship teams,
branches 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 2019 World’s Most Ethical
Company. Visit U.S. Bank at www.usbank.com 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. Deterioration in general
business and economic conditions or turbulence in domestic or
global financial markets could adversely affect U.S. Bancorp’s
revenues and the values of its assets and liabilities, reduce the
availability of funding to certain financial institutions, lead to
a tightening of credit, and increase stock price 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 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 the level of tariffs and other
trade policies of the United States and its global trading
partners; changes in customer behavior and preferences; breaches in
data security; failures to safeguard personal information; 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 may 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, 2018, 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. In addition, factors other than
these risks also could adversely affect U.S. Bancorp’s results, and
the reader should not consider these risks 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/20190627005902/en/
Jennifer Thompson, U.S. Bancorp Investor Relations –
612.303.0778; jen.thompson@usbank.com Rebekah Fawcett, U.S. Bancorp
Corporate Communications – 612.303.9986;
rebekah.fawcett@usbank.com
Twitter @usbank_news
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