USB US Bancorp

By Dave Sebastian

U.S. Bancorp said its profit for the recent quarter rose because of lower provision for credit losses.

The company Thursday posted a first-quarter net income attributable to shareholders of $2.18 billion, compared with $1.09 billion a year earlier. Earnings were $1.45 a share, compared with 72 cents a share.

Analysts polled by FactSet had expected earnings of 96 cents a share.

Net interest income fell 5% to $3.06 billion because of the effect of lower rates compared with a year earlier and higher premium amortization in the investment portfolio related to mortgage refinancing activities, the company said.

Provision for credit losses was negative $827 million, compared with positive $993 million in the year-earlier period, the company said.

Net revenue fell 5.2% to $5.47 billion. Analysts were looking for $5.54 billion.

Noninterest income fell 5.7% to $2.38 billion, driven by lower mortgage banking revenue, deposit service charges, securities gains and other items, the company said. Noninterest expense rose 1.9% to $3.38 billion due to increases in personnel expense related to incentive compensation and the seasonal effect of payroll taxes, it said.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

April 15, 2021 07:28 ET (11:28 GMT)

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