U.S. Bancorp Releases 2023 Dodd-Frank Act Stress Test Results
June 30 2023 - 4:51PM
Business Wire
U.S. Bancorp (NYSE: USB) commented on the results of the Federal
Reserve’s Dodd-Frank Act Stress Test (DFAST) conducted in
accordance with the Dodd-Frank Wall Street Reform and Consumer
Protection Act.
Based on its 2023 stress test results, the company expects to be
subject to a preliminary stress capital buffer (SCB) of 2.5
percent, for the period beginning October 1, 2023, and ending on
September 30, 2024. The Federal Reserve has stated that it expects
to finalize the SCB for all firms by August 31, 2023. The SCB, when
added to the Basel III Common Equity Tier 1 (CET1) minimum of 4.5
percent, requires the company to maintain a CET1 ratio above 7
percent through this period. The company’s CET1 ratio was 8.5
percent as of March 31, 2023, under transitional regulatory capital
requirements related to the current expected credit losses (CECL)
methodology, well above the regulatory minimum of 4.5 percent plus
our SCB, reflecting strong capital levels following the acquisition
of Union Bank.
The company’s common stock repurchases currently remain
suspended as it quickly accretes capital following the acquisition
of Union Bank and in anticipation of future changes in capital
requirements. Any additional capital distributions remain subject
to the approval of U.S. Bancorp’s Board of Directors and compliance
with regulatory requirements.
“The results of this year’s stress test demonstrate that we are
well-capitalized and remain prepared to withstand a severe economic
downturn following the acquisition of Union Bank,” said Andy
Cecere, Chairman, President and CEO of U.S. Bancorp. “Our highly
diversified business mix, well-established financial discipline,
and conservative risk profile demonstrates our unwavering
commitment to create and deliver value for our shareholders.”
About U.S. Bank
U.S. Bancorp, with approximately 77,000 employees and $682
billion in assets as of March 31, 2023, is the parent company of
U.S. Bank National Association. The Minneapolis-based company
serves millions of customers locally, nationally and globally
through a diversified mix of businesses: Consumer and Business
Banking; Payment Services; Corporate & Commercial Banking; and
Wealth Management and Investment Services. Union Bank, consisting
primarily of retail banking branches on the West Coast, joined U.S.
Bancorp in 2022. U.S. Bancorp has been recognized for its approach
to digital innovation, social responsibility, and customer service,
including being named one of the 2023 World’s Most Ethical
Companies. Learn more at usbank.com/about.
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version on businesswire.com: https://www.businesswire.com/news/home/20230630573283/en/
Investor contact: George Andersen, U.S. Bancorp Investor
Relations george.andersen@usbank.com 612.303.3620
Media contact: Jeff Shelman, U.S. Bancorp Public Affairs and
Communications jeffrey.shelman@usbank.com 612.422.1423
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