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U.S. Bancorp’s Q1 Earnings Beat Estimates, Provisions Rise

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U.S. Bancorp‘s (NYSE: USB) first-quarter 2024 adjusted earnings per share (excluding the impact of notable items) of 90 cents beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 22.4% from the prior-year quarter’s level.

Shares of USB have declined 3.90% in the pre-market trading despite better-than-anticipated earnings. A full day’s trading will depict a better picture.

Results have benefited from higher fee income. Moreover, lower expenses during the quarter were commendable. However, a decline in net interest income (NII) and a rise in provision for credit losses were major headwinds.

Net income (GAAP basis) attributable to U.S. Bancorp was $1.32 billion, down 22.3% from the prior-year quarter’s level.

Revenues & Expenses Fall

Total revenues in the reported quarter were $6.69 billion, down 6.4% year over year. The top line also missed the Zacks Consensus Estimate by a whisker.

The tax-equivalent NII totaled $4.02 billion, down 14% from the year-ago quarter’s level. The decrease was primarily due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets.

The net interest margin of 2.70% shrunk 40 basis points year over year.

Non-interest income grew 7.7% year over year to $2.7 billion. The uptick was …

Full story available on Benzinga.com

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