USB US Bancorp

U.S. Bancorp's provision for credit losses in the first quarter was $993 million, including $600 million to increase the company's allowance for credit losses. "U.S. Bancorp Reports Lower 1Q Profit as Loss Provisions Grow" at 7:14 a.m. ET mischaracterized the provision for credit losses in the first and seventh paragraphs. A corrected story follows:

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 booked $993 million in provisions for credit losses.

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 company's provision for credit losses of $993 million compared with $395 million in the prior quarter. Net charge-offs for the quarter totaled $393 million, while the company added $600 million to its allowance for credit losses.

U.S. Bancorp said 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 12:01 ET (16:01 GMT)

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