U.S. Bank invests in branch modernization in Q3
Bank tech spend up 2.5% YoY to $524M
U.S. Bank increased its technology spend in the third quarter to further digitalize capabilities within its branch network.
“Our strategy focus is to create density in the highest growth areas within our current footprint, rather than use branches to expand out of our footprint,” U.S. Bank President Gunjan Kedia said during today’s Q3 earnings call. “The reason for that is that we have built some very good, strong digital capabilities that allow us to deliver our services nationally.”
Including branch investment, the $686 billion bank’s technology spend increased 2.5% year over year in Q3 to $524 million, according to its earnings supplement. Total noninterest expense fell 7% YoY to $4.2 billion.
BY THE NUMBERS: U.S. Bank in Q3 also reported:
- Net revenue of $6.9 billion, down 2% YoY;
- Net income of $1.7 billion, up 13% YoY; and
- Total branch count of 2,187, down from 2,280 in Q3 2023.
NOTEWORTHY: U.S. Bank in August was tapped by wealth management company Edward Jones to provide its customers with checking accounts, savings accounts and credit solutions.
“U.S. Bank has a longstanding relationship with Edward Jones, including maintaining its credit card program,” Arijit Roy, head of consumer and business banking products at U.S. Bank, previously told Bank Automation News. “Given Edward Jones’ footprint, with more than 15,000 branch offices in the U.S., this partnership will extend our geographic reach beyond our 26-state branch network.”
The alliance allows Edward Jones to deeply integrate customers into its ecosystem while U.S. Bank can increase its deposit base and grow customer acquisition, Roy said.
MARKET REACTION: Shares of U.S. Bank (USB) were up 4.7% to $49.21 per share at market close. U.S. Bank has a market capitalization of $76.79 billion.
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