U.S. Bancorp (NYSE:USB) Q1 2024 Earnings Call Transcript

John Stern: No. Some of this is temporary. So the surge that happens, it can be a mix of both money market as well as NIB. It may surge the NIB for a brief period of time, but it’s not going to be material to the quarter. So even though — so the surge that we’ve been talking about can be a mix of both.

Ebrahim Poonawala: Mix of both. And so you do expect just from a very dollar balance standpoint, NIB staying north of $80 billion. Is that fair?

John Stern: Yes, I wouldn’t expect. As we said, the rotation is continuing. So I wouldn’t expect growth necessarily in DDA, but deposits overall, we do expect it to basically be stable.

Ebrahim Poonawala: And just a separate question. Given all these questions on NII, I think, would love to hear the degree of conservatism baked into your NII outlook? Because I guess the concern you’re hearing is whether we see another downward guide three months from now. And, yes, so in terms of what would go wrong in order for us to see another guide down on NII and for you to be surprised? Thank you.

John Stern: Yes, Ebrahim, I don’t look as conservative or aggressive, it’s just the range. It’s just the range that we provided, just given the uncertainty that’s just in the market given all the factors that we’ve talked about here today.

Ebrahim Poonawala: Got it. Thank you.

Andrew Cecere: Thank you.

Operator: There are no further questions at this time. Mr. Andersen, I turn the call back over to you.

George Andersen: Thank you for listening to our earnings call. Please contact the Investor Relations department if you have any follow-up questions.

Operator: Thank you. This concludes today’s conference call. You may now disconnect.