U.S. Bank continues to prioritize productivity, efficiency
Bank’s noninterest expense clocked in at $4.1B in Q2
U.S. Bank is managing expenses without cutting corners on technology and productivity investments.
“Productivity is not coming out of underinvesting in future growth,” Chief Executive Gunjan Kedia said during the bank’s second-quarter earnings call today. The bank’s net income reached $1.8 billion during the quarter, up 11.9% year over year.
The bank has reported seven consecutive quarters of “stable expenses,” Kedia said, noting that expenses during that period remained around $4.2 billion.
As the $673 billion bank manages expenses, Kedia made assurances during the call that technology investment is not taking a hit.
In fact, during the past five years, the bank has made it a priority to invest in:
- Digital app and self-service;
- Cloud migration;
- Customer-relationship management;
- AI and machine learning efforts; and
- Contact center automation.
Payments efforts
Payments services were one of the banks priorities during the quarter, Kedia said.
The bank’s total noninterest income from its payments services reached $1.1 billion in Q2, up from $1 billion in Q1, according to the earnings supplement.
In June, the bank announced its U.S. Bank Embedded Payment Solutions, an offering that brings all its payments solutions under one umbrella.
U.S. Bank’s Mike Jorgensen will speak during Bank Automation News’ webinar “Seamless integration: The new frontier in embedded payments” on Tuesday, July 22, at 11 a.m. ET.
Jorgensen is the head of emerging solutions and embedded payments at U.S. Bank.
Register here for the free webinar.
Market reaction
Shares of U.S. Bank (NYSE: USB) were down 1.92% from market open to $44.80 as of 1:46 p.m. ET today. U.S. Bank has a market capitalization of $69.8 billion.
