Financial services company U.S. Bancorp (NYSE: USB) on Wednesday announced operating results for the second quarter of 2023, reporting a decline in net income despite a 19% increase in revenues.
Total net revenue increased 19% from last year to $7.18 billion, mainly reflecting a double-digit increase in net interest income to $4.42 billion. At $30.14, book value per share was up 7%.
Net income attributable to shareholders was $1.28 billion or $0.84 per share, compared to $1.46 billion or $0.99 per share in the same period of 2022. Average loans and average deposits increased by 20% and 9% respectively during the three-month period.
“Our lower net interest margin this quarter reflects both higher levels of cash given debt ceiling concerns as well as higher deposit costs due to the rate environment. Credit quality remains strong, however, we continued to strengthen our balance sheet by increasing our loan loss reserve reflecting prudent credit risk management,” said the bank’s ECEO Andy Cecere.