US Bancorp Stock Surges as Profit Tops Expectations
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Key Takeaways
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U.S. Bancorp's net interest income (NII) increased from the previous quarter and exceeded analysts' expectations.
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The higher NII helped lift the bank's third-quarter profit above estimates.
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U.S. Bancorp also increased the money it set aside to cover credit losses by 8.2%.
U.S. Bancorp (USB) shares jumped Wednesday as its profit got a boost from higher-than-anticipated net interest income.
The bank reported third-quarter earnings per share (EPS) of $1.03, $0.04 more than estimates of analysts surveyed by Visible Alpha. Revenue fell 2.4% year-over-year to $6.86 billion, slightly short of forecasts.
Net interest income (NII) of $4.17 billion was down 2.4% from 2023, but up 2.8% from the second quarter. It also exceeded expectations. Net interest margin increased to 2.74% from 2.67% in the previous quarter, although it was lower than last year's 2.81%.
Provision for Credit Losses Rises
As with many of its rivals, U.S. Bancorp added to its reserves for credit losses, increasing them by 8.2% to $557 million year-over-year.
Shares of U.S. Bancorp rose nearly 5% Wednesday to their highest level since early last year. They're up about 14% in 2024.
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