Minnesota’s Top Two Banks Post Strong Q3 Results
On Wednesday, Wells Fargo reported a net income of $5.8 billion, while U.S. Bank posted its own net income of $1.49 billion on Thursday — a slight uptick for each and in line with analysts’ expectations.
Compared to last year’s third quarter ending September 30, Wells Fargo’s income grew by $70 million, a one percent change from the $5.73 billion it earned then. Similarly, U.S. Bank’s income grew by $18 million from a year ago, a one percent change as well.
As the nation’s fifth-largest bank, Minneapolis-based U.S. Bank’s earnings per share amounted to 81 cents versus 78 cents in Q3 of 2014. Wells Fargo, which is headquartered in San Francisco, but retains a significant presence in Minneapolis, had earnings per share of $1.05 — a three-cent rise from the same time last year.
Both banks cited growth in loans, deposits and capital, and each of their net payout ratio to shareholders increased as well. The areas of growth and effects from low interest rates from the Federal Reserve were largely in line with predictions made by Zacks Equity Research.
“Overall, our actions to generate growth in our balance sheet and revenues, combined with our deliberate efforts to optimize our expense management initiatives, resulted in a solid quarter and put us on a positive forward-looking trajectory,” said U.S. Bancorp CEO Richard Davis in a statement. He added that U.S. Bank’s participation in mobile payment systems Android Pay and Samsung Pay were positive achievements this quarter.
In a statement, Wells Fargo CEO John Stumpf nodded at the bank’s diversified business model as a benefit to overcoming “an uneven economic environment.”
Since dropping its quarterly results on Wednesday, Wells Fargo’s stock has risen 70 cents to $52.25 as of midday Thursday. U.S. Bank’s stock has taken a 50 cent leap from where it closed on Wednesday. The Minneapolis bank stands at $41.06 per share as of midday Thursday.