Gunjan Kedia, the new CEO of US Bank, says he is “not satisfied” with the stock price.
- Gunjan Kedia, newly appointed CEO of US Bankhighlighting urgent urgency, discipline and growth, and with initial revenue calls, it aims to restore investors’ trust amid a challenging financial environment and inactive equity performance. Despite exceeding quarter expectations, Kedia acknowledged the need for rapid action and outlined priorities such as cost management, organic growth and transformation of the company’s payments business to promote long-term value.
Gunjan Kedia takes over US banks during tough times For the financial industryhowever, her leadership pillars were revealed in her first income call this week as CEO: urgency, discipline, growth.
Kedia takes on top job at US banks He served as president Vice-chairman of wealth, corporate, commercial and institutional banks since 2024.
As tensions between key economic forces continue to experience volatility on a global scale, Kedia has sought to restore confidence in US banks with a solid prospect for the future.
US banks beat market expectations with first quarter results, with revenues exceeding $6.969 billion, forecast $6.91 billion and EPS exceeding $1.30 99 cents forecast. But the beat wasn’t enough to impress Wall Street, which fell 2% the day after the revenue call.
Kedia, who has been working for US Bank since 2016, has revealed to shareholders that he is not satisfied with the share price of around $38. year to date.
“I’m not happy with the performance of the stock,” Kedia told investors during this week’s earnings call. “We feel urgency and hear the message.
“The priorities I laid out reflect what I need to do differently from my observations, so the cost discipline that was very core to the American bank narrative needs to come back.
Kedia pointed out the fact that the bank provided the cost sector for six consecutive quarters on an adjusted basis.
The focus on costs comes after an over-leverage question at the US bank that completed the purchase of Tokyo-based MUFG in December 2022.Incoming sales$5 billion plus $44 million Bancop Stocks (average price)$44 over the last five years).
He emphasized that investments will pay off in his 2025 proxy statement Andrew Cecere, which served as CEO title before Kedia. He added that the story is the same as the billions of dollars banks spent improving technology and digital capabilities, as well as new services such as business access advisors and payment providers US Bank.
Urgency and growth
Kedia clearly wants to run to the ground and knows that if the stock price in the business is leaning in the wrong direction, she needs to get some wins quickly.
“We are very fortunate to have a deep management bench and we are sure we will be urgently doing our priorities,” she began her remarks, adding to her final statement that she will push the company’s culture towards faster outcomes.
“We have an exceptional franchise and we are confident that the outcome will be better in the future,” she added.
And the future outlook is clear, with US banks hoping to grow. This includes revenue targets up 3% to 5%, growth in loans and fees, and spending on growth-oriented investments.
“A consistent, deep culture of risk management continues to be a competitive advantage,” Kedia said.
“The macroeconomic background has been shifting since we Investors September day, and I acknowledge that there is still a considerable amount of uncertainty in the outlook,” she added. I have three immediate strategic priorities to tightly manage costs, drive organic growth across my business, and achieve my goals to transform my payments business.
“It is important to emphasize that while we focus on organic growth, we continue to be deeply committed to a high return and a disciplined risk management culture.”
This story was originally introduced Fortune.com