USB Closes Acquisition of Union Bank and Combined Outlook Becomes Clearer

Wide-moat-rated U.S. Bancorp reported fourth-quarter adjusted earnings per share of $1.20, beating the FactSet consensus estimate of $1.12. Our own estimate was also $1.12. Adjusted revenues for USB (excluding Union Bank) were $6.47 billion, just a bit below consensus of $6.62 billion and in line with our own estimate of $6.46 billion. We wouldn't read too much into results versus consensus this quarter, as the bank just closed its acquisition of Union Bank on Dec. 1, and there is always a lot of noise during the middle of an acquisition. Instead, getting a feel for 2023 guidance was going to be more useful.