US Bancorp (NYSE: USB) reported earnings that were in line with market expectations but missed the mark on revenues for the first quarter of 2019.
Total net revenue of $5.58 billion was up 2% compared to the same period last year but fell short of analysts’ estimates of $5.59 billion.
Net income attributable to US Bancorp common shareholders grew 1% to $1.61 billion compared to the year-ago period, helped by higher revenue. Diluted EPS rose 4.2% year-over-year to $1.00.
Net interest income on a taxable-equivalent basis was $3.28 billion, up 2.8% versus last year, mainly due to the impact of rising interest rates, earning assets growth and higher yields on securities. Net interest margin was 3.16% compared to 3.13% last year.
Total non-interest income rose 0.8% to $2.29 billion, helped by growth in corporate payment products and merchant processing services revenue. Non-interest expense rose 1%, mainly due to increased compensation expenses as well as higher technology and communication expenses.
Total net charge-offs increased 7.6% year-over-year to $367 million, mainly due to higher total commercial loan and credit card net charge-offs. Non-performing assets were $1 billion at March 31, 2019 compared to $1.2 billion in the same period last year, with the decrease driven by declines in non-performing residential mortgages, total commercial loans and other real estate owned.
Average total loans increased 2.4% year-over-year to $286.1 billion while average total deposits rose 0.2% to $335.3 billion.
US Bancorp’s shares have climbed over 11% thus far this year.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Amid the COVID-19 pandemic, several retailers were forced to close their stores but in turn witnessed a pickup in their digital business. Levi Strauss & Co. (NYSE: LEVI) is the
The ongoing market turmoil has upset the growth strategy set by Mattel, Inc. (NASDAQ: MAT), with focus on transitioning into an IP-driven company. Currently, the maker of legendary brands like
The usage of artificial intelligence (AI) has accelerated rapidly in the fintech industry. Many insurance companies are using AI to compete with their competitors. These insurance companies use AI in