U.S. Bancorp, the Minneapolis-based parent company of U.S. Bank, has announced its third quarter financial results. While the company’s profit decreased compared to the previous year, it saw an increase in revenue due to a rise in net interest income.
Profit and Earnings
U.S. Bancorp reported a profit of $1.52 billion in the third quarter, equivalent to 91 cents per share. This is lower than the $1.81 billion, or $1.16 per share, recorded in the same quarter last year. Analysts surveyed by FactSet had predicted earnings of 96 cents per share.
However, after excluding merger and integration-related charges resulting from the acquisition of MUFG Union Bank, U.S. Bancorp’s earnings were $1.05 per share. This exceeded analyst expectations of $1.01 per share according to FactSet.
Net Interest Income and Revenue
The company’s net interest income in the third quarter reached $4.27 billion, a significant increase from $3.86 billion in the same period last year. Although slightly lower than the previous quarter, this result contributed to U.S. Bancorp’s higher total revenue for the quarter, which amounted to $7.03 billion compared to $6.33 billion last year. These figures align closely with analyst forecasts of $7.02 billion.
Deposits and Credit Losses
U.S. Bancorp experienced a 12% year-over-year increase in average total deposits, reaching $512.29 billion in the third quarter. This marks growth from $497.27 billion in the second quarter.
The company allocated $515 million for credit losses during the quarter, compared to $362 million a year earlier and $821 million in the previous quarter.
For more information on U.S. Bancorp’s third quarter results, please visit the link below.