By Michael Calia
U.S. Bancorp said its profit edged up 2.2% in the most recent
quarter as its revenue and average total loans grew, though a key
measure of lending profitability narrowed.
Earnings and revenue beat Wall Street estimates.
The bank posted earnings of $1.49 billion, up from $1.46 billion
in the prior-year period. On a per-share basis, earnings rose to 79
cents from 76 cents. One-time items tied to equity investments and
accruals for legal matters boosted earnings by one cent a share in
the latest period.
Revenue at the Minneapolis-based bank rose 5.7% to $5.17
billion.
Analysts had expected 77 cents a share in earnings and $5.01
billion in revenue, according to Thomson Reuters.
Average total loans rose by 5.9%.
Net interest margin, which is an important measure of lending
profitability, fell to 3.14% from 3.4% a year earlier on lower
reinvestment rates on investment securities and lower rates on new
loans.
The bank had posted growth in profit and loans recently,
although it faces a tough environment in which low interest rates
limit interest income.
Shares were inactive premarket and are off slightly over the
past 12 months.
Write to Michael Calia at michael.calia@wsj.com