U.S. Bancorp Posts Higher Profit, Driven by Net Interest Income Increase
April 17 2019 - 07:47AM
Dow Jones News
By Allison Prang
U.S. Bancorp reported a rise in profit in its first quarter as
total revenue ticked higher, driven by an increase in net interest
income.
Profit at the Minneapolis-based company climbed 1.4% in the
first quarter, to $1.7 billion. Earnings were $1 a share, up from
96 cents a share, which met the analyst consensus from
Refinitiv.
Overall net revenue, which combines net interest income and
noninterest income, rose 2% to $5.58 billion, slightly missing the
consensus estimate from analysts of $5.59 billion.
Net interest income on a taxable-equivalent basis rose 2.8%,
while the company's net interest margin -- an important
profitability metric for banks -- rose to 3.16% from 3.13%. It rose
one basis point from the fourth quarter of 2018.
Banks reporting first-quarter earnings have stood to get
somewhat of a bump from the December interest rate increase, as a
higher Fed funds rate increases what they charge customers on
adjustable-rate loans.
Noninterest income, another line of revenue for banks that
largely comes from fees, rose by 0.8%. Revenue from credit and
debit cards, along with deposit service charges and mortgage
banking revenue all fell from the comparable quarter a year
prior.
U.S. Bancorp said its provision for credit losses was $377
million, up 11% from the comparable quarter a year ago.
U.S. Bancorp's footprint primarily spans over the Western and
Midwestern U.S.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
April 17, 2019 07:32 ET (11:32 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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