U.S. Bancorp’s Second-Quarter Results Beat Views on Net Interest Income Growth

U.S. Bancorp (USB) on Wednesday reported better-than-expected results for the second quarter, with its chief executive crediting net interest income growth that was driven by solid loan and deposit trends.

The Minneapolis-based bank said its per-share earnings rose to $1.09 in the quarter ended June 30, above $1.02 for the prior-year period and the Capital IQ consensus for $1.07. Net revenue rose to $5.82 billion from $5.64 billion last year. The Street had expected $5.73 billion.

Shares were up nearly 2.6% in early trading.

“Despite a more challenging interest-rate environment, our loan and deposit trends were healthy and drove good growth in net interest income,” said Chief Executive Andy Cecere. “Fee income growth was supported by solid results across our payments services, trust, wealth management and commercial products businesses.”

The bank said total deposits rose to $345.2 billion in the second quarter from $334.8 billion the year before as net interest income rose to $3.33 billion from $3.23 billion. Net interest margin was flat at 3.13% from the year before but down from 3.16% in the first quarter.

Trust and investment management fee revenue rose to $415 million from $401 million last year, and credit and debit card revenue reached $365 million from $351 million. Revenue from commercial products rose to $249 million from $234 million.

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