U.S. Bancorp Lending Income Beat Estimates in Third Quarter
(Bloomberg) -- U.S. Bancorp raked in net interest income that topped analyst estimates as fixed-rate assets in its portfolio benefited from higher borrowing costs.
Most Read from Bloomberg
Dubai’s Allure to Expats Is Weighing on City’s Infrastructure
Mexico Seeks to Halve Permitting Time to Attract More Factories
One City’s Plan to Re-Link a Neighborhood That Robert Moses Divided
The Minneapolis-based bank reported $4.14 billion of NII — what it generates from lending minus what it pays for deposits — in the third quarter, according to a statement Wednesday. That beat analysts’ estimates of almost $4.04 billion.
The results follow earnings from banks including midsize peer PNC Financial Services Group Inc. and larger Wall Street rival JPMorgan Chase & Co., which both pulled in more NII than analysts expected following the Fed’s 50-basis-point cut last month, its first in more than four years.
Citizens Financial Group Inc. also reported earnings on Wednesday, with net interest income of $1.37 billion and $175.2 billion of deposits that both just missed analyst estimates.
Investors are eager for an early look into the impact of the Federal Reserve’s policy pivot. The NII metric is particularly important for regional lenders that lack the robust sales and trading operations of their bigger rivals.
“Net interest income and margin increased on a linked quarter basis benefiting from loan mix, continued repricing of fixed rate earning assets and disciplined liability management,” U.S. Bancorp Chief Executive Officer Andy Cecere said in the statement.
The bank’s shares rose 8.6% this year through Tuesday, compared with a 25% jump for the S&P 500 Financials Index. They were up 1.7% at 7:34 a.m. in early New York trading.
In the third quarter, U.S. Bancorp’s loans totaled $374 billion, missing estimates of $377 billion.
(Updates with shares in seventh paragraph. An earlier version of the story corrected a reference to the bank in the sixth, eighth paragraphs.)
Most Read from Bloomberg Businessweek
?2024 Bloomberg L.P.