US Bancorp Q2 Profit Down, Misses Market View; Revenues Rise

Bank holding company US Bancorp (USB) reported Friday week profit in its second quarter, below market estimates, mainly reflecting provision for credit losses, despite higher revenues.

Looking ahead, Andy Cecere, Chairman, President and CEO, U.S. Bancorp, said, “Given strong loan growth and increased uncertainty surrounding the macro-economic outlook, we increased our loan loss reserve reflecting our through-the-cycle risk management approach. As we head into the second half of the year we face an uncertain economic environment.”

In the second quarter, net income applicable to shareholders came in at $1.46 billion, or $0.99 per share, down 23.5 percent from $1.91 billion, or $1.28 per share last year.

Analysts on average had expected the company to earn $1.08 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s provision for credit losses for the second quarter was $311 million, compared to a benefit of $170 million in the same quarter prior year.

The company’s revenue for the quarter rose 4 percent to $6.01 billion from $5.78 billion last year. Analysts expected revenues of $5.89 billion for the quarter.

Net interest income on a taxable-equivalent basis was $3.46 billion, an increase of 9.5 percent from last year. The net interest margin was 2.59 percent, compared to 2.53 percent a year ago.

Net interest income after provision for credit losses was $3.12 billion, down from $3.31 billion last year.

Total noninterest income for the quarter declined to $2.55 billion from last year’s $2.62 billion.

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