U.S. Bancorp's fourth-quarter earnings jumped 39% as the lender again reduced funds set aside to cover potentially risky loans and benefited from growth in lending.
The bank has logged solid results in recent quarters thanks to credit conditions in the U.S. that continue to improve and strong demand from commercial borrowers. U.S. Bancorp on Wednesday reported average total loans in the fourth quarter rose 5.9% over the year-earlier period.
Loan-loss provisions in the fourth quarter totaled $497 million, down from $912 million a year earlier and $519 million in the third quarter.
U.S. Bancorp reported a profit of $1.35 billion, or 69 cents a share, up from $974 million, or 49 cents a share, a year earlier.
The latest period included a $263 million merchant settlement gain, partially offset by a $130 million accrual related to mortgage servicing matters. Together, the two items increased per-share earnings in the latest period by a net 5 cents. Analysts polled by Thomson Reuters expected earnings of 63 cents a share.
Revenue improved 8.1% to $5.1 billion, exceeding analyst expectations for revenue of $4.76 billion.
