U.S. Bancorp's second-quarter earnings rose 63%, beating analysts' estimates, as revenue jumped to a record level and loan-loss provisions fell.
Credit quality also "showed marked improvement in the second quarter," said President and Chief Executive Richard K. Davis.
The parent company of U.S. Bank came through the financial crisis better than many of its bigger banking peers, helped by its expanding balance sheet and recent investments in its branch networks. Results have improved of late, like many other banks', as it has slashed its loan-loss provisions amid a healing economy.
The bank reported a profit of $766 million, or 45 cents a share, up from $471 million, or 12 cents a share, a year earlier, with that period's per-share results including dividends to end the U.S. government's investment in the bank. The latest quarter included a 5-cent gain. Analysts polled by Thomson Reuters had most recently forecast earnings of 38 cents.
Net revenue jumped 8.7% to $4.52 billion.
Loan-loss provisions were $1.14 billion, down from $1.4 billion a year earlier and $1.31 billion in the prior quarter. Net charge-offs, or loans lenders don't think are collectible, rose to 2.34% of average loans from 2.03% on year but fell slightly sequentially from 2.39%. Nonperforming loans, those near default, were 3.56%, compared with 2.98% and 3.74%, respectively.
Total loans increased 4%, while deposits rose 12%.
Shares closed at $23.15 Tuesday and were inactive premarket. The stock had risen 27% in the past year.