U.S. Bancorp Posts Higher Profit, Driven by Net Interest Income Increase

By Allison Prang 

U.S. Bancorp reported a rise in profit in its first quarter as total revenue ticked higher, driven by an increase in net interest income.

Profit at the Minneapolis-based company climbed 1.4% in the first quarter, to $1.7 billion. Earnings were $1 a share, up from 96 cents a share, which met the analyst consensus from Refinitiv.

Overall net revenue, which combines net interest income and noninterest income, rose 2% to $5.58 billion, slightly missing the consensus estimate from analysts of $5.59 billion.

Net interest income on a taxable-equivalent basis rose 2.8%, while the company's net interest margin -- an important profitability metric for banks -- rose to 3.16% from 3.13%. It rose one basis point from the fourth quarter of 2018.

Banks reporting first-quarter earnings have stood to get somewhat of a bump from the December interest rate increase, as a higher Fed funds rate increases what they charge customers on adjustable-rate loans.

Noninterest income, another line of revenue for banks that largely comes from fees, rose by 0.8%. Revenue from credit and debit cards, along with deposit service charges and mortgage banking revenue all fell from the comparable quarter a year prior.

U.S. Bancorp said its provision for credit losses was $377 million, up 11% from the comparable quarter a year ago.

U.S. Bancorp's footprint primarily spans over the Western and Midwestern U.S.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

April 17, 2019 07:32 ET (11:32 GMT)

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