US Bancorp (NYSE: USB) reported second-quarter earnings results that surpassed Wall Street estimates, despite headwinds associated with a low-interest-rate environment.
Total net revenue of $5.82 billion was up 3.2% compared to the same period last year, helped by strong growth in payments services, wealth management, and commercial products. The top line surpassed analysts’ estimates of $5.73 billion.
Net income grew 7% to 1.09 per share, beating the Street consensus by 2 cents. The increase in net income was driven revenue growth during the quarter, but was partially offset by noninterest expense growth of 2.2%.
Strong loan and deposit growth during the quarter, which benefited from heightened consumer confidence, drove Net Interest Income (NII) in Q2. NII improved 3.4% to $3.33 billion, as average total loans grew 3.8% year-over-year.
Total commercial loans grew 5%, residential mortgages jumped 9.9%, credit card loans improved 7.6%, and total other retail loans edged up 2.7% in Q2.
“We delivered strong results this quarter and we feel good about underlying momentum heading into the second half of the year. In the second quarter, we delivered a return on tangible common equity of 19.2% and returned 79% of our earnings through dividends and share buybacks, said CEO Andy Cecere.