Higher fee income, loan growth drove U.S. Bancorp's 1Q

U.S. Bancorp in Minneapolis reported higher first-quarter profits as gains from fee-based business lines overcame higher expenses.

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Signage is displayed on the exterior of the U.S. Bank building in Salt Lake City, Utah, U.S., on Monday, July 13, 2009. U.S. Bancorp, parent company of U.S. Bank, will report second quarter results on July 22. Photographer: George Frey/Bloomberg

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.

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Earnings Commercial banking Consumer banking Non-interest income U.S. Bank
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