Diversified financial services provider U.S. Bancorp (USB) Wednesday reported a rise in the third-quarter profit, reflecting higher total net revenue, driven by increase in both net interest income and fee-based revenue. Earnings per share, as well as revenues matched analysts' expectations. Provision for credit losses slightly increased from last year.
For the third quarter, net income applicable to shareholders increased to $1.41 billion or $0.78 per share from $1.40 billion or $0.76 per share in the prior year.
On average, 24 analysts polled by Thomson Reuters expected the company to report profit per share of $0.78 for the quarter. Analysts' estimates typically exclude special items.
Total net revenues for the quarter, on a taxable-equivalent basis, grew 2 percent to $4.99 billion from $4.89 billion a year ago. Analysts expected revenue of $4.99 billion for the quarter.
Net interest income increased to $2.69 billion from $2.66 billion a year ago. Total non-interest income was $2.24 billion, up from $2.18 billion in the preceding year.
Net interest margin decreased to 3.16 percent from 3.43 percent in the same quarter last year.
Total non-interest expense rose to $2.61 billion from $2.57 billion a year earlier. Provision for credit losses advanced to $311 million from $298 million last year.
The firm saw 6.3 percent growth in average total loans in the quarter to $243.87 billion. Average deposits grew 7.4 percent over the prior year to $271 billion.
Tier 1 capital ratio was 11.3 percent, compared to 11.2 percent a year earlier.
Chairman, President and Chief Executive Officer Richard Davis said, "Our consistently solid financial performance is a result of our adhering closely to the core fundamentals of controlling expenses, managing capital prudently, selectively investing in initiatives that generate steady long-term growth, and expanding existing customer relationships."
USB is currently trading at $40.24, down 0.07 percent.
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