Credit-loss drop, revenue gain helps U.S. Bancorp’s results
U.S. Bancorp said Tuesday that improved profits, which beat analysts' expectations, were driven by revenue growth and lower credit losses. Revenue also came in ahead of Wall Street expectations.
Net income rose 28 percent to $1.34 billion, or 67 cents a share, in the first quarter of 2012, beating analysts' consensus of 64 cents a share. Revenue jumped 9 percent to $4.93 billion, compared to estimates of $4.78 billion.
"The slow, but steady, economic recovery contributed to the continued improvement in our credit quality this quarter," Richard Davis, CEO of U.S. Bancorp, parent of U.S. Bank, said in a earning statement.
The bank, which is the seventh largest in Southern Nevada with $1.87 billion in local deposits, reported a 6.4 percent increase in average total loans and a 17 percent increase in commercial borrowing.
Credit costs also declined, with loan-loss provisions dropping to $481 million in the first quarter, which is down from $755 million in the same quarter last year and $497 million in the fourth quarter.
U.S. Bancorp shares fell 25 cents, or 0.79 percent, to close at $31.30 Wednesday on the New York Stock Exchange.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
