Why U.S. Bancorp Shares Are Down Today

U.S. Bancorp USB shares are trading lower after it reported a Q3 FY23 total adjusted net revenue of $7.000 billion, marginally missing the consensus of $7.010 billion. 

Adjusted net interest income jumped 10.7% Y/Y to $4.24 billion, while adjusted noninterest income rose 11.9% Y/Y to $2.76 billion.

The net interest margin was 2.81%, compared with 2.83% in Q3 FY22, due to deposit mix and pricing.

Adjusted provision for credit losses in the quarter jumped to $515 million, compared with $362 million in the year-ago period.

The company registered average total loan growth of 11.9% Y/Y and decreased 3.1% on a linked quarter basis. 

Adjusted earnings per share totaled $1.05, beating the consensus of $1.04.

CET1 ratio stood at 9.7%, vs 9.1% in Q2 FY23 on improved earnings and capital accretive initiatives.

"While the challenging interest rate environment continues to impact net interest income growth for us and the industry, average total deposits increased 3.0 percent, to $512 billion, and third quarter profitability benefited from strength across our diversified fee businesses and disciplined expense management. Third quarter credit quality trends were in line with expectations and we continued to add to our reserve level reflecting prudent assessment of the evolving credit environment. I want to thank all of our employees for their dedication to helping our clients, communities, and shareholders," said Andy Cecere, Chairman, President and CEO.

Also Read: S&P Slashes Ratings Of 5 US Regional Banks Facing Growing Challenges

Price Action: USB shares are down 2.88% at $33.88 on the last check Wednesday.