By Matt Grossman 
 

U.S. Bancorp Wednesday reported a higher profit than analysts had expected in its second quarter, despite a higher provision for credit losses that the company said was driven by deteriorating economic conditions from the Covid-19 pandemic.

The bank holding company recorded net income in the quarter of $689 million, or 41 cents a share, compared with income in last year's second quarter of $1.82 billion, or $1.09 a share.

Analysts were expecting earnings of 32 cents a share, according to FactSet.

In the second quarter, the bank's net interest income on a taxable-equivalent basis was $3.22 billion, compared with $3.33 billion a year earlier. Noninterest income increased to $2.61 billion, from $2.49 billion a year earlier.

Analysts were expecting net interest income of $3.22 billion and non-interest income of $2.35 billion.

The bank provisioned $1.74 billion for credit losses in the quarter, compared with a provision of $993 million in the first quarter of the year.

 

Write to Matt Grossman at matt.grossman@wsj.com

 

(END) Dow Jones Newswires

July 15, 2020 07:20 ET (11:20 GMT)

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