President Gunjan Kedia, the first woman to hold the position in US Bancorp’s history, will take over as CEO on April 15th, the American bank announced in the last week of January 2025. She will join a select group of female CEOs in the finance industry with Jane Fraser leading Citigroup, one of the biggest banks in the United States. She will take over for Andy Cecere, who has been the company’s chairman since 2018 and its CEO since 2017.
Over his roughly forty years with US Bancorp, Cecere held important positions like chief operating officer and finance chief.
“I think the time is right to welcome Gunjan warmly to the role I’ve held for nearly eight years,” Cecere said in a statement, adding that it has been a great honour and a privilege that she values greatly.
The departing CEO, who oversaw the agreement with Union Bank that increased the company’s footprint in California, will continue to lead the board of directors in his new role as executive chairman.
According to the bank, Gunjan Kedia, a seasoned professional in the field, joined the bank in 2016 and was in charge of the revenue streams.
Before joining US Bancorp, she also held important positions at consulting firms McKinsey and Company and PwC, as well as global executive positions at State Street and BNY.
The announcement also coincided with the venture holding its Q4 earnings call. The earnings call reflected a generally positive sentiment, underscored by strong revenue growth and effective capital management, apart from reporting improvements in operational efficiency, while expressing concerns related to notable expense items and challenges in merchant acquiring, as well as uncertain loan growth prospects.
US Bancorp achieved impressive revenue results, with net revenue reaching USD 7 billion for the quarter and USD 27.5 billion for the year. This was primarily due to increases in net interest income and noninterest income, resulting in 190 basis points of positive operating leverage year-over-year on an adjusted basis. The bank, whose stock has underperformed the overall market in 2024, projects a 3–5% increase in net revenue in 2025.
Who Is Gunjan Kedia?
Gunjan Kedia finished her early schooling in India, attending the Delhi College of Engineering to study electrical and electronics engineering until 1992.
After graduating from Carnegie Mellon University’s esteemed Tepper School of Business with an MBA in Finance, she has resided in the United States ever since.
Gunjan Kedia has more than thirty years of extensive experience in the financial industry. She has been named twice to Barron’s 100 Most Influential Women in US Finance list and has been honoured seven times on the American Banker Most Powerful Women in Banking and Finance lists, according to US Bancorp.
The industry veteran has held executive roles at PWC, McKinsey and Company, and State Street, among other companies. Gunjan Kedia became Vice-Chair of US Bancorp in 2016 and rose through the ranks to become President in May 2024. The company announced her appointment as CEO in January 2025.
“We are inspired by Gunjan’s vision for the company, and we are confident in her ability to guide US Bancorp into a vibrant and engaging future that honours the past while achieving new possibilities,” announcing Gunjan Kedia’s promotion to CEO, US Bancorp Lead Independent Director Roland Hernandez said.
Breaking Down The Q4 Numbers In Detail
As per the Q4 report, the company’s capital position has strengthened further, with the CET1 capital ratio rising 10 basis points to 10.6%. Tangible book value per share saw a significant increase of 10.4% to USD 24.63. US Bancorp also initiated a USD 100 million share repurchase programme, highlighting a commitment to returning value to shareholders.
Fee income accounted for over 40% of total net revenue, with notable double-digit growth in commercial products, trust and investment management, and investment product revenues, showcasing the company’s diversified income streams.
The venture also reported improved credit quality, evidenced by a modest loan loss reserve release. The nonperforming assets to loans ratio remained stable at 0.48%, and the net charge-off ratio was consistent at 0.60%, indicating robust credit management.
US Bancorp also delivered a strong return on tangible common equity of 18.3% and improved its efficiency ratio to 59.9% in the fourth quarter, demonstrating effective cost management and operational efficiencies. The Q4 report also included USD 109 million of notable expenses, driven by USD 60 million related to operational efficiency initiatives and USD 49 million from lease impairments, pointing to areas of financial pressure.
US Bancorp, however, is facing challenges in merchant acquiring, with a contraction of 70 basis points in yield year-over-year. This was attributed to growth in higher volume, and lower margin clients, reflecting a competitive market environment. The company expressed modest expectations for loan growth in 2025, with no immediate signs of a significant pickup in lending demand, highlighting a cautious outlook on loan expansion.
Competitive pressures are expected to impact deposit costs, with deposit betas projected to rise to mid- to high 40s in Q1 2025, indicating a challenging environment for managing deposit expenses.
Looking ahead, the venture anticipates total revenue growth of 3% to 5% in 2025 on an adjusted basis, with positive operating leverage exceeding 200 basis points. The emphasis will remain on prudent expense management, asset repricing benefits, and modest capital distributions, including continued share repurchases.
Image Credit: ir.usbank.com