U.S. Bancorp's second-quarter earnings took a dip as one-time items overshadowed the benefits of higher interest rates.
The $463.8 billion-asset company reported a profit of $1.5 billion, down 2% from a year earlier. Earnings per share were 85 cents, or a penny higher than the consensus of analyst estimates compiled by FactSet Research Systems.
Noninterest income slid 5% to $2.4 billion at the Minneapolis bank. The decline was mostly due to the impact of a $180 million equity gain recorded last year related to the sale of Visa Europe. Lower revenue from commercial products and mortgage banking was also a factor.
Net interest income rose 6% to $3 billion. The net interest margin climbed 2 basis points to 3.04%. The provisions for loan losses increased 7% to $350 million.
Total loans, meanwhile, grew 3% to $275.5 billion thanks to stronger commercial and mortgage lending as well as a 35% jump in auto leasing.
Noninterest expenses edged up 1% to $3 billion as higher compensation outweighed lower marketing and professional serves costs.