U.S. Bancorp's (USB) first-quarter profit rose 28% as the lender sharply reduced its credit costs and turned in better-than-expected revenue growth.
The large regional bank has been one of the strongest performers in the banking industry, with solid lending demand aiding its momentum and helping to offset some of the continued pressure the sector faces from ultra-low interest rates.
Average total loans at the bank increased 6.4% in the latest period amid a 17% jump in commercial borrowing and 26% surge in commercial and commercial-real-estate commitments.
Meanwhile, credit costs continued to decline. Loan-loss provisions totaled $481 million in the first quarter, down from $755 million a year earlier and $497 million in the fourth quarter.
U.S. Bancorp reported a profit of $1.34 billion, up from a year-earlier profit of $1.05 billion. Per-share earnings rose to 67 cents from 52 cents a share a year ago, topping the 64 cents expected by analysts polled by Thomson Reuters.
Revenue rose 9.1% to $4.93 billion, exceeding analyst expectations for revenue of $4.78 billion.