U.S. Bancorp Reports Lower Earnings for Q2

U.S. Bancorp, the parent company of U.S. Bank, has announced lower earnings for the second quarter due to increased provisions for potential credit losses.

Financial Performance

• Profit for the second quarter was $1.36 billion, or 84 cents a share, compared to $1.53 billion, or 99 cents a share, in the same period last year.
• Adjusted earnings, which exclude one-time items, were $1.12 a share, meeting analysts’ expectations.
• Net interest income increased by 28.5% to $4.42 billion from the previous year but decreased sequentially.
• Total revenue grew by over 19% to $7.18 billion, slightly exceeding analysts’ expectations of $7.17 billion.

Deposit and Credit Losses

• Average total deposits rose to $497.3 billion in the second quarter, a year-on-year increase of 8.9%. However, there was a decrease of 2.6% compared to the previous quarter.
• The company provisioned $821 million for credit losses, up from $311 million in the same quarter last year and $427 million in the first quarter.

This news has resulted in a 1.5% decline in shares, which are currently trading at $36.00 in premarket trading.