Fitch Ratings affirmed U.S. Bancorp's Long- and Short-Term Issuer Default Ratings (IDRs) at 'A+' and 'F1', respectively, maintaining a Stable Outlook. This affirmation reflects the bank's strong business profile, which is supported by a diversified, high-quality revenue mix and a conservative risk culture.
Fitch highlighted that 41% of U.S. Bancorp's revenue comes from stable noninterest income sources, such as payments and trust businesses. The rating agency also noted a rebound in net interest income during the second quarter of 2024 and anticipated positive operating leverage in the second half of 2024.
The bank's Common Equity Tier 1 (CET1) ratio increased by 40 basis points in the first half of 2024, reaching 10.3% (8.6% including AOCI), exceeding its internal targets. Furthermore, U.S. Bancorp announced a $5 billion share repurchase program slated to begin in early 2025, signaling confidence in its capital position.
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