U.S. Bancorp Q1 Earnings Top Street View, Net Interest Income Jumps 46%


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  • U.S. Bancorp (NYSE:USB) clocked a first-quarter total net revenue increase of 28.2% year-over-year to $7.18 billion, beating the consensus of $7.12 billion.
  • Net interest income jumped 46% to $4.63 billion, while noninterest income rose 4.6% to $2.51 billion.
  • Provision for credit losses in the quarter under review jumped to $427 million, compared with $112 million in the year-ago period. This was driven by the acquisition of MUB and continued economic uncertainty.
  • While credit quality factors have performed better than pre-pandemic levels, the changing economic outlook contributes to increased provision for credit losses. 
  • The company registered average total loan growth of 23.6% Y/Y and 7.5% sequentially. 
  • Adjusted earnings per share totaled $1.16, compared with $0.99 a year ago. Adjusted EPS soared 17.2% Y/Y and topped the Street view of $1.12.
  • The net interest margin in the first quarter of 2023 was 3.10%, compared with 2.44% in the first quarter of 2022, primarily due to the impact of higher rates on earning assets and the acquisition of MUB.
  • "Our common equity tier 1 capital ratio ended the quarter at our target level of 8.5%, and we expect that ratio to expand over the next several quarters as we realize the accretive benefit of recently acquired Union Bank", Chairman, President and CEO, Andy Cecere said.
  • Price Action: USB shares are trading higher by 1.05% at $35.56 during the premarket session on the last check Wednesday.

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