U.S. Bank Increases Prime Lending Rate to 7.75 Percent

Rhea-AI Summary

U.S. Bancorp (NYSE: USB) has announced an increase in its prime lending rate to 7.75% from 7.50%, effective February 2, 2023. This change will apply to all U.S. Bank and Union Bank locations. U.S. Bancorp, headquartered in Minneapolis, has approximately 77,000 employees and $675 billion in assets as of December 31, 2022. The company offers a diverse range of services, including consumer and business banking, payment services, corporate banking, and wealth management. U.S. Bancorp is recognized for its commitment to digital innovation and customer service, recently being honored as one of the World’s Most Ethical Companies.

Positive

• Increased prime lending rate indicates a potential rise in interest income, benefiting the company's financial performance.
• Recognition as one of the World’s Most Ethical Companies enhances brand reputation and customer trust.

Negative

• Higher lending rates may deter some customers from borrowing, potentially affecting loan demand.
• Increased interest rates could impact overall economic activity, posing risks to banking operations.

MINNEAPOLIS--(BUSINESS WIRE)-- U.S. Bancorp (NYSE: USB) announced it has increased its prime lending rate to 7.75 percent from 7.50 percent, at all U.S. Bank locations. The reference rate at all Union Bank locations will also increase to 7.75 percent from 7.50 percent. These changes are effective tomorrow, February 2, 2023.

About U.S. Bancorp:

U.S. Bancorp, with approximately 77,000 employees and $675 billion in assets as of December 31, 2022, is the parent company of U.S. Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diversified mix of businesses: Consumer and Business Banking; Payment Services; Corporate & Commercial Banking; and Wealth Management and Investment Services. Union Bank, consisting primarily of retail banking branches on the West Coast, joined U.S. Bancorp in 2022. The company has been recognized for its approach to digital innovation, social responsibility, and customer service, including being named one of the 2022 World’s Most Ethical Companies and Fortune’s most admired superregional bank. Learn more at usbank.com/about.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230201006011/en/

Investor contact:

George Andersen, Director of Investor Relations, U.S. Bancorp Investor Relations – 612.303.3620, george.andersen@usbank.com

Media contact:

Jeff Shelman, U.S. Bancorp Public Affairs and Communications – 612.303.9933; jeffrey.shelman@usbank.com

Source: U.S. Bancorp

FAQ

What is U.S. Bancorp's new prime lending rate?

U.S. Bancorp's new prime lending rate is 7.75%, up from 7.50%.

When does the new prime lending rate take effect?

The new prime lending rate takes effect on February 2, 2023.

What are the implications of increasing the prime lending rate for U.S. Bancorp?

Increasing the prime lending rate can enhance interest income but may also reduce demand for loans.

How many employees does U.S. Bancorp have?

U.S. Bancorp employs approximately 77,000 people.

What was U.S. Bancorp's asset value as of December 31, 2022?

U.S. Bancorp's asset value was $675 billion as of December 31, 2022.