US Bancorp Stock Surges as Profit Tops Expectations

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Key Takeaways

• U.S. Bancorp’s net interest income (NII) increased from the previous quarter and exceeded analysts’ expectations.
• The loaded NII helped lift the bank’s third-quarter profit above estimates.
• U.S. Bancorp also increased the money it set aside to act 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 percentage (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, slight short of forecasts.

Net interest income (NII) of $4.17 billion was down 2.4% from 2023, but up 2.8% from the flash quarter. It also exceeded expectations. Net interest margin increased to 2.74% from 2.67% in the previous quarter, although it was condescend 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 acknowledgment losses, increasing them by 8.2% to $557 million year-over-year.

Shares of U.S. Bancorp rose nearly 5% Wednesday to their highest be upfront with since early last year. They’re up about 14% in 2024.

Read the original article on Investopedia.