By Will Feuer

 

U.S. Bancorp said its profit for the fourth quarter rose because of a lower provision for credit losses as the global economy improved, despite lower net interest income and higher noninterest expenses.

The Minneapolis-based company, the parent of U.S. Bank, on Wednesday posted net income of $1.67 billion, compared with $1.52 billion a year earlier. Earnings were $1.07 a share, compared with 95 cents a share in the prior year. Analysts polled by FactSet had been expecting $1.10 a share.

Net interest income was $3.12 billion, down from $3.18 billion, the company said. Analysts had been expecting $3.14 billion. The metric fell because of lower loan spreads and mix of earning assets, partially offset by higher investment portfolio balances and the benefit of deposit and funding mix, the company said.

Net revenue was $5.68 billion, down from $5.75 billion. The decline was driven by lower mortgage banking revenue, partially offset by higher trust and investment management fees, the company said. Analysts had been looking for $5.75 billion.

Provision for credit losses was a benefit of $13 million, compared with $441 million set aside for possible bad loans in the year-earlier period, the company said. In the third quarter, provision for credit losses was a benefit of $163 million.

 

Write to Will Feuer at Will.Feuer@wsj.com

 

(END) Dow Jones Newswires

January 19, 2022 07:19 ET (12:19 GMT)

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