U.S. Bancorp Profit Rises on Higher Revenue, Lower Expenses -- Update
October 17 2018 - 8:08AM
Dow Jones News
By Allison Prang
Revenue grew at a quicker pace than expenses in U.S. Bancorp's
third quarter as the regional bank reported a 16% increase in
profit from a year earlier.
U.S. Bancorp's total net revenue -- which takes into account net
interest income and income the company gets from areas like fees
and services -- rose 2.4% to $5.7 billion.
Noninterest income -- which includes revenue from services
ranging from mortgage banking to ATM processing -- rose at a
slightly faster pace than net interest income.
Noninterest expenses climbed 1.5% to $3.04 billion. Marketing
and business development costs rose 15% to $106 million.
The company's net interest margin -- a measure of banks' lending
profitability -- expanded by one basis point to 3.15%.
The regional lender reported earnings of $1.82 billion, up 16%
from $1.56 billion for the comparable quarter a year ago. U.S.
Bancorp said earnings per share were $1.06, compared with 88 cents,
which beat analysts' estimates.
Average total loans at U.S. Bancorp rose 1.2% to $281.07
billion. At the same time, average total deposits fell 1.5% to
$330.12 billion.
The company's provision for credit losses -- which are used for
covering bad loans -- fell 4.7% to $343 million.
Shares rose 1.5% on low volume premarket. Since 2018 began, they
have fallen 4.9%.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
October 17, 2018 07:53 ET (11:53 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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