U.S. Bancorp Reports Lower 1Q Profit as Loss Provisions Grow
April 15 2020 - 7:43AM
Dow Jones News
By Matt Grossman
U.S. Bancorp reported a first-quarter profit that declined from
last year's result but beat analysts' expectations, as the bank
boosted its provision for credit losses by $600 million.
The Minneapolis-based bank reported a profit of $1.17 billion,
or 72 cents a share, compared with the $1.7 billion, or $1 a share,
that the bank earned in the first quarter of 2019.
The bank's earnings beat analysts' expectations, which had
forecast a 61-cents-a-share profit.
Total net revenue was $5.77 billion for the first quarter, a
3.5% increase over last year's result of $5.58 billion.
Wall Street anticipated revenue of $5.57 billion.
Net interest income was $3.25 billion, while noninterest income
was $2.53 billion.
The $600 million jump in provisions for credit losses amounted
to a 152% increase in the first quarter. Credit-loss provisions now
stand at $993 million.
U.S. Bancorp said that the greater credit-loss provisions were
the primary reason for its year-over-year net-income drop and that
the new loss provisions were prompted by the Covid-19 outbreak.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
April 15, 2020 07:28 ET (11:28 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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