“U.S. Bancorp (USB), the nation’s largest regional lender, said first-quarter profit rose 6.7 percent, matching analysts’ estimates, as the company set aside less for bad loans.
Net income climbed to $1.43 billion, or 73 cents a share, from $1.34 billion, or 67 cents, a year earlier, the Minneapolis-based bank said today in a statement. The average estimate of 32 analysts surveyed by Bloomberg was for 73 cents a share.
Banks have boosted earnings in the first quarter by cutting expenses as revenue growth wanes.JPMorgan Chase & Co. (JPM), the biggest U.S. lender, and Wells Fargo & Co. both relied on smaller loan-loss reserves and cost reductions to increase quarterly profit. Revenue at U.S. Bancorp, led by Chief Executive Officer Richard Davis, 55, declined 1.1 percent to $4.87 billion.
The lender’s first-quarter results “reflected our company’s continuing ability to perform against the backdrop of a slow-growth, uncertain economic environment,” Davis said in the statement.
According to 18 analysts surveyed by Bloomberg, revenue was estimated to climb to $5.03 billion from $4.93 billion a year earlier. The drop in net revenue was driven by a decline in noninterest income, which fell 3.3 percent to $2.17 billion. Mortgage banking revenue decreased 11 percent to $401 million…..”
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