U.S. Bancorp in Minneapolis reported higher first-quarter profits as gains from fee-based business lines overcame higher expenses.
The $449.5 billion-asset company earned $1.4 billion during the quarter, or 4% more than a year earlier. Earnings per share were 82 cents, beating by 2 pennies an average estimate compiled by FactSet Research Systems.
Noninterest income was a key driver of the company’s performance, rising 8% to $2.3 billion thanks to increases in credit cards and investment management among other business units, it said in a news release Wednesday.
Net interest income increased 4% to $2.9 billion. The net interest margin dipped 3 basis points to 3.03%, which the company attributed to loan mix and investment yields. Total loans grew 4% to $273 billion.
Noninterest expenses jumped 7% to $2.9 billion, due in part to higher compensation and marketing costs.