MINNEAPOLIS--(BUSINESS WIRE)--Jun. 28, 2018--
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180628006324/en/
Source: U.S. Bancorp
U.S. Bancorp
Investors:
Jennifer Thompson, 612-303-0778
U.S.
Bank Investor Relations
jen.thompson@usbank.com
or
Media:
Stacey
Wempen, 612.303.7620
U.S. Bank Public Affairs and Communications
stacey.wempen@usbank.com