- U.S. Bancorp USB delivered a 28.2% year-over-year increase in total net income to $7.18 billion in the first quarter, beat the consensus of $7.12 billion.
- Net interest income rose 46% to $4.63 billion, while noninterest income rose 4.6% to $2.51 billion.
- Provision for credit losses jumped to $427 million in the quarter compared to $112 million in the year-ago period. This was due to the acquisition of MUB and ongoing economic uncertainty.
- While credit quality factors have performed better than before the pandemic, the changing economic outlook is contributing to higher provision for credit losses.
- The company posted average total loan growth of 23.6% Y/Y and 7.5% sequentially.
- Adjusted earnings per share were $1.16 compared to $0.99 a year ago. Adjusted earnings per share rose 17.2% year over year, beating Street View’s $1.12.
- The net interest margin for the first quarter of 2023 was 3.10% compared to 2.44% for the first quarter of 2022, mainly due to the impact of higher interest rates on earnings assets and the acquisition of MUB.
- “Our Common Equity Tier 1 ratio ended the quarter at our target level of 8.5% and we expect that ratio to increase over the coming quarters as we recognize the upside benefit of recently acquired Union Bank,” said Andy, Chairman, President and CEO Cecere.
- Price promotion: USB shares are trading up 1.05% at $35.56 during the premarket session on last check Wednesday.
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