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.