U.S. Bancorp Profit Rises on Card Revenue
U.S. Bancorp in Minneapolis reported higher quarterly profit boosted by increased fee revenue from credit and debit cards.
The $438 billion-asset company reported that its second-quarter earnings rose 3% from a year earlier to $1.5 billion. Earnings per share of 83 cents were 2 cents higher than the average estimate of analysts polled by Bloomberg.
Fee income rose 12% to $2.6 billion. The increase was driven, in part, by higher card transaction volumes. Equity gains from U.S. Bancorp's investment in Visa Europe, which was sold to Visa in June, also contributed.
U.S. Bank was unusual in making users pay for real time person-to-person payments on Early Warning's clearXchange, a practice it's ending as other banks start to offer free transactions on the same network.July 6
Chief Executive Richard Davis said Tuesday that he expects a neutral outcome in the second quarter, as low interest rates continue to weigh on income from loans.June 14
WIB PHU.S. Bancorp in Minneapolis said Terry Dolan will become its chief financial officer on Aug. 1. Dolan currently serves as vice chairman of wealth management and securities services.June 13
Calling the crazy-idea department a U.S. Bancorp-branded bus is more than halfway through a cross-country, social-media-tracked journey to promote community development and alter its profile. It's an example of the new style of reputation-oriented marketing being pursued by banks.July 7
Net interest income rose 5% to $2.9 billion. Total loans grew 8% to $268 billion on higher commercial and construction lending. The net interest margin compressed by 1 basis point to 3.02%.
Energy troubles continued to weigh on the company's loan book, as the loan-loss provision increased by 16% to $327 million.
Revenue gains helped to offset sharply higher costs. Noninterest expenses climbed 12% to $3 billion on a combination of compensation and marketing costs.
The efficiency ratio edged up to 54.9%, compared to 53.2% a year earlier.