USB US Bancorp

By Will Feuer

U.S. Bancorp posted higher revenue for the first quarter, boosted by rising interest rates as well as its acquisition of MUFG Union Bank.

The Minneapolis-based parent company of U.S. Bank posted a profit of $1.70 billion, or $1.04 a share, in the first quarter, compared with $1.56 billion, or 99 cents a share, in the same period a year ago.

Stripping out one-time items, adjusted earnings came to $1.16 a share. Analysts polled by FactSet were expecting earnings of $1.09 a share.

Net interest income rose 46%, to $4.67 billion, driven by both higher interest rates and the company's acquisition of MUFG Union Bank.

Total revenue rose more than 28%, to $7.18 billion. Analysts surveyed by FactSet were expecting revenue of $7.14 billion.

Deposits fell to $70.89 billion at the end of the first quarter from $81.99 billion at the end of the fourth quarter. The company said deposit balances were "relatively stable" from March 8 to the end of the quarter.

The company provisioned $427 million for credit losses, up from $112 million a year earlier but down from $1.19 billion in the fourth quarter of 2022.

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

(END) Dow Jones Newswires

April 19, 2023 07:22 ET (11:22 GMT)

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