MINNEAPOLIS (dpa-AFX) - U.S. Bancorp (USB) reported third quarter net income attributable to U.S. Bancorp of $2.00 billion, compared to $1.71 billion, a year ago. Earnings per common share was $1.22 compared with $1.03. Analysts on average had expected the company to earn $1.12 per share. Analysts' estimates typically exclude special items.
The company said the increase in net income attributable to U.S. Bancorp year-over-year was primarily due to higher total net revenue. Total net revenue was $7.33 billion compared to $6.86 billion. Net interest income on a taxable-equivalent adjustment basis was $4.25 billion compared to $4.17 billion.
Net interest income increased 2.0 percent on a year-over-year taxable-equivalent basis, primarily due to the favorable impact of the change in loan mix, fixed asset repricing and lower rates paid on interest-bearing deposits. Noninterest income increased 14.1 percent compared with a year ago, driven by higher revenue across most categories. Total fee revenue rose 9.5% from prior year quarter.
'For the quarter, we generated meaningful positive operating leverage, on a year-over-year basis, and made steady progress toward our medium-term financial targets. Asset quality and capital levels remain strong. Our net charge-off ratio improved on both a linked quarter and year-over-year basis, and our CET1 capital ratio improved to 10.9%,' Gunjan Kedia, CEO, U.S. Bancorp, said.
On an adjusted basis, the company projects its fourth quarter net interest income - taxable-equivalent basis - to be relatively stable as compared to the third quarter. Total fee revenue is projected to be approximately $3.0 billion.
Shares of U.S. Bancorp are up 2% in pre-market trade on Thursday.
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