U.S. Bancorp reported Q2/16 record net income of $1,522 million compared with $1,483 million in Q2/15. Record revenue of $5.45 billion was up 8.1% compared to $5.0 billion a year earlier.

The following highlights were excerpted from the news release:

• Q2/16 loans of $266.6 billion were up 8.1% from $246.6 billion a year earlier. Average commercial loans increased $8.9 billion or 10.7%.
• Reserves for energy related credit of $265 million was up from $88 million or 201% from a year earlier. The bank noted the energy related reserves to loan ratio of 8.8% was up from 2.7% in Q2/15.
• Provision for loan losses of $327 million was up 16.4% from $281 million a year earlier.
• The YTD 2016 net interest margin of 3.04% compared to 3.05% for the same period in 2015.
• Lease financing average balances YTD 2016 of $5,246 million was down from $5,323 million for the period a year earlier.

U.S. Bancorp Chairman and CEO Richard K. Davis said, “U.S. Bancorp reported strong second quarter results, delivering record revenue and net income in an economy that continues to be challenged by global concerns and low interest rates. Despite these economic headwinds we continued to effectively execute on our strategy to be the most trusted choice and to unify the customer experience. The second quarter was a record quarter for us as we once again delivered industry-leading returns, steady loan growth and strength in our fee-based businesses. Steady loan growth, demonstrated by continued strength in commercial loans and momentum in consumer loans, led to increased net interest income despite a decline in net interest margin. Growth in our fee revenue continued across many of our fee-based businesses, including our payments business lines. We also reported strong results in our capital markets business as we were positioned well to provide products and services to our customers as they navigated through the recent market volatility. And we managed our capital effectively, delivering 77% of our second quarter earnings back to shareholders through dividends and share buybacks.”