U.S. Bancorp Q3 Earnings: EPS Beat, Revenue Miss, Rising Credit Loss Provisions & More

U.S. Bancorp USB shares are trading higher on Wednesday.

The company reported third-quarter adjusted earnings per share of $1.03, beating the analyst consensus estimate of 99 cents.

Quarterly revenues of $6.864 billion missed the analyst consensus estimate of $6.895 billion.

The third quarter included $119 million of net losses on investment securities sales ($89 million net-of-tax), which was largely offset by lower income tax expenses, which reflected certain tax settlements.

“Our expense levels decreased year-over-year which supported modest positive operating leverage, excluding net securities losses and prior year notable items,” said Andy Cecere, Chairman and CEO, U.S. Bancorp.

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Net interest income fell 2.4% to $4.135 billion in the quarter under review, due to the impact of higher interest rates on deposit mix and pricing. Third quarter noninterest income of $2.698 billion, down 2.4% year over year.

The provision for credit losses increased by $42 million (8.2%) compared with the third quarter of 2023, largely due to higher losses on credit card, commercial, and commercial real estate loans.

“Credit quality results were in line with expectations, and we continue to increase our capital position, ending the quarter with a CET1 capital ratio of 10.5%,” Cecere added. The CET1 capital ratio of 10.5% on September 30 was up from 10.3% on June 30.

The average total deposits for the third quarter were $3.5 billion, which was 0.7% lower year over year.

Price Action: USB shares are trading higher by 1.91% to $47.90 premarket at last check Wednesday.

Photo by JHVEPhoto via Shutterstock

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