U.S. Bancorp (NYSE:USB) Q4 2023 Earnings Call Transcript

So, those are the initiatives that we have underway. And that continues to be a huge focus, and one that I do think differentiates us a little bit because of the capabilities we have in payments. And that’s true of merchant processing, corporate payments as well as retail issuing.

Saul Martinez: Okay. Got it. That’s helpful. Maybe I’ll just follow-up on deposits. You mentioned the migration, you expect the migration out of noninterest-bearing deposits to sort of run its course. Just when and where do you see that? I think noninterest-bearing was about 17.5% of total deposits. How much more room is there? And just on deposit cost, I think the cumulative beta, if my calculations right, is around 49%. How much more room is there for that to increase? Sort of what’s embedded in your guidance for NII?

John Stern: Sure. So, in terms of the NIB, I think we’ve talked quite a bit about it. I would just — I mean, we’re at a certain percentage that you mentioned, and we’re going to be around that area. Certainly could drift a little lower. But we are at a point where, from a core standpoint, particularly on the commercial and small business side, where you’re starting to get into places, where companies have to run operating accounts. And over time, you’re going to have account growth and things of that variety. So, I think they’ll be conducive to supporting NIB going forward. But there will be some leftover churn, as I alluded to earlier in the call. In terms of beta, as you mentioned, 48.5% or so is our beta right now. I think it can creep up as we’ve kind of talked about, but it’s going to depend on when the Fed cuts is going to be kind of that focus point in terms of how much it will go from here.

And so, how — what level is hard to predict, but there will be pressure until the Fed starts cutting.

Saul Martinez: Okay. Got it. Thanks.

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

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

Operator: This concludes today’s conference call. We thank you for joining. You may now disconnect.