U.S. Bancorp Profit Rises on Higher Revenue, Lower Expenses -- Update

By Allison Prang 

Revenue grew at a quicker pace than expenses in U.S. Bancorp's third quarter as the regional bank reported a 16% increase in profit from a year earlier.

U.S. Bancorp's total net revenue -- which takes into account net interest income and income the company gets from areas like fees and services -- rose 2.4% to $5.7 billion.

Noninterest income -- which includes revenue from services ranging from mortgage banking to ATM processing -- rose at a slightly faster pace than net interest income.

Noninterest expenses climbed 1.5% to $3.04 billion. Marketing and business development costs rose 15% to $106 million.

The company's net interest margin -- a measure of banks' lending profitability -- expanded by one basis point to 3.15%.

The regional lender reported earnings of $1.82 billion, up 16% from $1.56 billion for the comparable quarter a year ago. U.S. Bancorp said earnings per share were $1.06, compared with 88 cents, which beat analysts' estimates.

Average total loans at U.S. Bancorp rose 1.2% to $281.07 billion. At the same time, average total deposits fell 1.5% to $330.12 billion.

The company's provision for credit losses -- which are used for covering bad loans -- fell 4.7% to $343 million.

Shares rose 1.5% on low volume premarket. Since 2018 began, they have fallen 4.9%.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

October 17, 2018 07:53 ET (11:53 GMT)

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